Cryo-Cell International, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Description of Business, Basis of Presentation and Significant Accounting Policies (Tables)

Description of Business, Basis of Presentation and Significant Accounting Policies (Tables)

9 Months Ended

Aug. 31, 2021

Schedule of Assets and Liabilities From Contracts With Customers

The following table provides information about assets and liabilities from contracts with customers:

	August 31, 2021		November 30, 2020
Contract assets (sales commissions)	$	519,541	$	466,141
Accounts receivables	$	5,449,313	$	6,322,960
Short-term contract liabilities (deferred revenue)	$	9,326,124	$	9,183,450
Long-term contract liabilities (deferred revenue)	$	30,395,653	$	27,200,910

The Company, in general, requires the customer to pay for processing and storage services at the time of processing. Contract assets include deferred contract acquisition costs, which will be amortized along with the associated revenue. Contract liabilities include payments received in advance of performance under the contract and are realized with the associated revenue recognized under the contract. Accounts receivable consists of amounts due from clients that have enrolled and processed in the umbilical cord blood stem cell processing and storage programs related to renewals of annual plans and amounts due from license affiliates, and sublicensee territories. The Company did not have asset impairment charges related to contract assets in the three and nine months ended August 31, 2021 and August 31, 2020.

The following table presents changes in the Company’s contract assets and liabilities during the nine months ended August 31, 2021:

	Balance at December 1, 2020		Additions		Deductions			Balance at August 31, 2021
Contract assets (sales commissions)	$	466,141	$	72,421	$	(19,021	)	$	519,541
Accounts receivables	$	6,322,960	$	28,066,214	$	(28,939,861	)	$	5,449,313
Contract liabilities (deferred revenue)	$	36,384,360	$	13,482,055	$	(10,144,638	)	$	39,721,777

The following table presents changes in the Company’s contract assets and liabilities during the nine months ended August 31, 2020:

	Balance at December 1, 2019		Additions		Deductions			Balance at August 31, 2020
Contract assets (sales commissions)	$	398,535	$	68,152	$	(16,049	)	$	450,638
Accounts receivables	$	6,097,331	$	28,361,238	$	(27,955,019	)	$	6,503,550
Contract liabilities (deferred revenue)	$	32,508,511	$	13,045,728	$	(10,245,771	)	$	35,308,468

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes the financial assets and liabilities measured at fair value on a recurring basis as of August 31, 2021 and November 30, 2020, respectively, segregated among the appropriate levels within the fair value hierarchy:

	Fair Value at			Fair Value Measurements
	August 31,			at August 31, 2021 Using
Description	2021			Level 1		Level 2		Level 3
Assets:
Marketable securities	$	74,124		$	74,124		—		—
Total	$	74,124		$	74,124		—		—

Liabilities:
Contingent consideration	$	905,743		$	—		—	$	905,743
Total	$	905,743		$	—		—	$	905,743

Contingent Consideration:
Beginning Balance as of November 30, 2020	$	1,509,852
Subtractions – Cord:Use earnout		—
Fair value adjustment as of August 31, 2021		(604,109	)
Ending balance as of August 31, 2021	$	905,743

	Fair Value at		Fair Value Measurements
	November 30,		at November 30, 2020 Using
Description	2020		Level 1		Level 2		Level 3
Assets:
Marketable securities	$	88,476	$	88,476		—		—
Total	$	88,476	$	88,476		—		—

Liabilities
Contingent consideration	$	1,509,852	$	—		—	$	1,509,852
Total	$	1,509,852	$	—		—	$	1,509,852