Quarterly report pursuant to Section 13 or 15(d)

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

v3.24.1.u1
Description of Business, Basis of Presentation and Significant Accounting Policies (Tables)
 3 Months Ended
Feb. 29, 2024
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:

 

 

 

February 29, 2024

 

 

November 30, 2023

 

Contract assets (sales commissions)

 

$

716,621

 

 

$

695,695

 

Accounts receivable

 

$

6,726,893

 

 

$

6,576,240

 

Short-term contract liabilities (deferred revenue)

 

$

9,394,821

 

 

$

9,704,553

 

Long-term contract liabilities (deferred revenue)

 

$

42,603,661

 

 

$

41,186,800

 

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 months ended February 29, 2024 and February 28, 2023.

The following table presents changes in the Company’s contract assets and liabilities during the three months ended February 29, 2024:

 

 

 

Balance at
December 1,
2023

 

 

Additions

 

 

Deductions

 

 

Balance at
February 29,
2024

 

Contract assets (sales commissions)

 

$

695,695

 

 

$

30,179

 

 

$

(9,253

)

 

$

716,621

 

Accounts receivable

 

$

6,576,240

 

 

$

10,250,022

 

 

$

(10,099,369

)

 

$

6,726,893

 

Contract liabilities (deferred revenue)

 

$

50,891,353

 

 

$

5,297,596

 

 

$

(4,190,467

)

 

$

51,998,482

 

 

 

The following table presents changes in the Company’s contract assets and liabilities during the three months ended February 28, 2023:

 

 

 

Balance at
December 1,
2022

 

 

Additions

 

 

Deductions

 

 

Balance at
February 28,
2023

 

Contract assets (sales commissions)

 

$

615,628

 

 

$

26,436

 

 

$

(8,098

)

 

$

633,966

 

Accounts receivable

 

$

6,043,941

 

 

$

10,373,235

 

 

$

(9,894,720

)

 

$

6,522,456

 

Contract liabilities (deferred revenue)

 

$

45,586,386

 

 

$

6,404,429

 

 

$

(5,490,795

)

 

$

46,500,020

 

 
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 February 29, 2024 and November 30, 2023, respectively, segregated among the appropriate levels within the fair value hierarchy:

 

 

 

Fair Value at

 

 

Fair Value Measurements at February 29, 2024 Using

 

Description

 

February 29,
2024

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities

 

$

732,481

 

 

$

732,481

 

 

$

—

 

 

$

—

 

Interest rate swap

 

$

76,825

 

 

$

—

 

 

$

76,825

 

 

$

—

 

Total

 

$

809,306

 

 

$

732,481

 

 

$

76,825

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

39,050

 

 

$

—

 

 

$

—

 

 

$

39,050

 

Total

 

$

39,050

 

 

$

—

 

 

$

—

 

 

$

39,050

 

 

Contingent Consideration:

 

 

 

Beginning Balance as of November 30, 2023

 

$

44,226

 

Subtractions – Cord:Use earnout payment

 

 

—

 

Fair value adjustment as of February 29, 2024

 

 

(5,176

)

Ending balance as of February 29, 2024

 

$

39,050

 

 

 

 

 

Fair Value at

 

 

Fair Value Measurements at November 30, 2023 Using

 

Description

 

November 30,
2023

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities

 

$

574,183

 

 

$

574,183

 

 

$

—

 

 

$

—

 

Interest rate swap

 

$

122,113

 

 

$

—

 

 

$

122,113

 

 

$

—

 

Total

 

$

696,296

 

 

$

574,183

 

 

$

122,113

 

 

$

—

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

44,226

 

 

$

—

 

 

$

—

 

 

$

44,226

 

Total

 

$

44,226

 

 

$

—

 

 

$

—

 

 

$

44,226