Quarterly report pursuant to Section 13 or 15(d)

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

v3.23.2
Description of Business, Basis of Presentation and Significant Accounting Policies (Tables)
6 Months Ended
May 31, 2023
Accounting Policies [Abstract]  
Schedule of Assets and Liabilities From Contracts With Customers

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

 

 

 

May 31, 2023

 

 

November 30, 2022

 

Contract assets (sales commissions)

 

$

654,116

 

 

$

615,628

 

Accounts receivable

 

$

6,682,479

 

 

$

6,043,941

 

Short-term contract liabilities (deferred revenue)

 

$

9,455,539

 

 

$

9,586,327

 

Long-term contract liabilities (deferred revenue)

 

$

38,652,511

 

 

$

36,000,059

 

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 six months ended May 31, 2023.

The following table presents changes in the Company’s contract assets and liabilities during the six months ended May 31, 2023:

 

 

 

Balance at
December 1,
2022

 

 

Additions

 

 

Deductions

 

 

Balance at
May 31,
2023

 

Contract assets (sales commissions)

 

$

615,628

 

 

$

54,948

 

 

$

(16,460

)

 

$

654,116

 

Accounts receivable

 

$

6,043,941

 

 

$

21,299,426

 

 

$

(20,660,888

)

 

$

6,682,479

 

Contract liabilities (deferred revenue)

 

$

45,586,386

 

 

$

13,557,161

 

 

$

(11,035,497

)

 

$

48,108,050

 

 

 

The following table presents changes in the Company’s contract assets and liabilities during the six months ended May 31, 2022:

 

 

 

Balance at
December 1,
2021

 

 

Additions

 

 

Deductions

 

 

Balance at
May 31,
2022

 

Contract assets (sales commissions)

 

$

535,522

 

 

$

51,759

 

 

$

(14,238

)

 

$

573,043

 

Accounts receivable

 

$

5,253,173

 

 

$

18,402,414

 

 

$

(18,505,433

)

 

$

5,150,154

 

Contract liabilities (deferred revenue)

 

$

40,632,910

 

 

$

11,840,456

 

 

$

(9,809,177

)

 

$

42,664,189

 

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 May 31, 2023 and November 30, 2022, respectively, segregated among the appropriate levels within the fair value hierarchy:

 

 

 

Fair Value at

 

 

Fair Value Measurements at May 31, 2023 Using

 

Description

 

May 31,
2023

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities

 

$

568,181

 

 

$

568,181

 

 

$

 

 

$

 

Total

 

$

568,181

 

 

$

568,181

 

 

$

 

 

$

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

907,379

 

 

$

 

 

$

 

 

$

907,379

 

Interest rate swap

 

 

223,974

 

 

 

 

 

 

223,974

 

 

 

 

Total

 

$

1,131,353

 

 

$

 

 

$

223,974

 

 

$

907,379

 

 

Contingent Consideration:

 

 

 

Beginning Balance as of November 30, 2022

 

$

1,162,704

 

Subtractions – Cord:Use earnout payment

 

 

(67,500

)

Fair value adjustment as of May 31, 2023

 

 

(187,825

)

Ending balance as of May 31, 2023

 

$

907,379

 

 

 

 

 

Fair Value at

 

 

Fair Value Measurements at November 30, 2022 Using

 

Description

 

November 30,
2022

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities

 

$

17,620

 

 

$

17,620

 

 

$

 

 

$

 

Total

 

$

17,620

 

 

$

17,620

 

 

$

 

 

$

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

1,162,704

 

 

$

 

 

$

 

 

$

1,162,704

 

Interest rate swap

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

1,162,704

 

 

$

 

 

$

 

 

$

1,162,704