Business Operations - The company operates in the life sciences sector, focusing on bioproduction tools and services for the cell and gene therapy industry, aiming to improve quality and reduce risks in biologic manufacturing [170]. - The current product portfolio includes three revenue lines: cell processing, freezers and thaw systems, and storage services, with seven main offerings [171]. - Proprietary biopreservation media products, HypoThermosol® FRS and CryoStor®, are used in over 550 customer clinical applications, significantly extending shelf-life and improving post-thaw viability [175][179]. - Recent acquisitions include Sexton Biotechnologies, Global Cooling, and SciSafe, enhancing the company's capabilities in bioproduction tools and cold chain logistics [182][183][192]. - The evo® cloud-connected shipping containers allow real-time tracking of biologic products, improving logistics efficiency and customer monitoring capabilities [194]. - The company operates six storage facilities in the USA and one in the Netherlands, providing comprehensive storage solutions for biological and pharmaceutical materials [193]. - The automated thawing products from Astero Bio Corporation help reduce cell structure damage during thawing, enhancing the preservation process [188]. - The company utilizes partnerships with established couriers to scale sales and marketing efforts, reducing the need for specialized facilities globally [195]. Financial Performance - Total revenue for the three months ended June 30, 2022, was $40.5 million, representing a 30% increase compared to $31.2 million in the same period in 2021 [198]. - Product revenue for the three months ended June 30, 2022, was $34.2 million, an increase of $6.7 million or 24% compared to the same period in 2021 [200]. - Service revenue increased to $3.7 million for the three months ended June 30, 2022, reflecting an 88% increase compared to $1.96 million in the same period in 2021 [204]. - Rental revenue for the three months ended June 30, 2022, was $2.7 million, a 50% increase compared to $1.8 million in the same period in 2021 [205]. - Total operating expenses for the three months ended June 30, 2022, were $160.6 million, a 200% increase from $53.6 million in the same period in 2021 [208]. - General and administrative expenses increased by $4.2 million or 59% for the three months ended June 30, 2022, compared to the same period in 2021 [212]. - Sales and marketing expenses rose by $2.3 million or 72% for the three months ended June 30, 2022, compared to the same period in 2021 [215]. - Research and development expenses increased by $383,000 or 13% for the three months ended June 30, 2022, compared to the same period in 2021 [218]. - Intangible asset impairment charges were $69.9 million for the three months ended June 30, 2022, reflecting a significant non-cash write-down [220]. - Total other income, net for the six months ended June 30, 2022 was $(63,000), compared to $(259,000) for the same period in 2021, representing a 76% improvement [224]. Cash Flow and Capital Management - Net cash used by operating activities was $17.8 million for the six months ended June 30, 2022, an increase of $11.9 million compared to $5.9 million for the same period in 2021 [230]. - Net cash used in investing activities totaled $27.3 million for the six months ended June 30, 2022, compared to $8.6 million for the same period in 2021, reflecting significant investments in marketable securities [231]. - The company had $47.0 million in cash and cash equivalents as of June 30, 2022, down from $69.9 million at the end of 2021 [228]. - The net decrease in cash and cash equivalents was $45.7 million for the six months ended June 30, 2022, compared to a decrease of $14.2 million for the same period in 2021 [229]. - The company may seek additional capital through debt or equity financing to pursue acquisition or strategic investment opportunities [228]. Risk Management and Internal Controls - The company emphasizes the importance of critical accounting policies in portraying financial condition and results, requiring subjective judgments and estimates [196]. - The company plans to enhance its internal controls by hiring additional qualified personnel and implementing technology solutions to improve oversight and reduce risks of errors and fraud [241]. - As of June 30, 2022, the company did not have any off-balance sheet arrangements [233]. - There were no material changes to the risk factors described in the Annual Report on Form 10-K for the period ended December 31, 2021 [246]. - Interest expense, net increased due to debt acquired from the acquisition of Global Cooling and equipment financing [226].

Business Overview - The company develops bioproduction tools and services for the cell and gene therapy industry, focusing on improving quality and reducing risks in biologic manufacturing [158]. - The proprietary biopreservation media products, HypoThermosol® FRS and CryoStor®, have been incorporated in over 530 customer clinical applications, significantly extending shelf-life and improving post-thaw viability [163][167]. - Annual revenue from each customer application using the company's products could range from $500,000 to $2.0 million if approved for large-scale commercial manufacturing [169]. - The company acquired Sexton Biotechnologies in September 2021, enhancing its portfolio with human platelet lysate media and automated cell-processing machines [170]. - In May 2021, the company acquired Global Cooling, which manufactures ultra-low temperature freezers that are energy efficient, using as little as 2.8 kWh/day at -80°C [171]. - The company operates six storage facilities in the USA and one in the Netherlands, providing biological and pharmaceutical storage services [179]. - The evo® cloud-connected shipping containers allow real-time tracking of biologic products, enhancing cold chain management for cell and gene therapies [180]. - The company utilizes partnerships with established couriers to scale sales and marketing efforts, reducing the need for specialized facilities globally [181]. - The company continues to capitalize on opportunities for organic growth and acquisitions to maximize the value of its product platform [161]. Financial Performance - Total revenue for the three months ended March 31, 2022, was $36.2 million, an increase of $19.4 million, or 115%, compared to $16.8 million in the same period in 2021 [184]. - Product revenue was $30.4 million for the three months ended March 31, 2022, representing an increase of $16.6 million, or 121%, compared to the same period in 2021 [185]. - Revenue from freezer and thaw products increased by $10.5 million, or 216%, while organic revenue decreased by 3% due to supply chain disruptions [186]. - Revenue from cell processing products increased by $6.0 million, or 67%, with organic growth of 53% driven by customer adoption in the CGT market [187]. - Service revenue was $3.1 million, an increase of $886,000, or 40%, compared to the same period in 2021, primarily due to the Netherlands biorepository storage expansion [189]. - Rental revenue reached $2.7 million, an increase of $1.9 million, or 216%, attributed to increased rental volumes and leasing of dedicated storage spaces [190]. - Cost of revenue increased by $16.9 million, or 224%, primarily due to acquisitions and higher warranty expenses [191]. - Research and development expenses increased by $1.8 million, or 90%, reflecting the impact of acquisitions and ongoing product development efforts [196]. - General and administrative expenses rose by $6.4 million, or 132%, due to increased headcount and costs associated with acquisitions [200]. - Net cash used by operating activities was $7.9 million for the three months ended March 31, 2022, compared to net cash provided of $1.8 million in the same period in 2021 [213]. Internal Controls and Management - Management has fully remediated the material weakness related to information system logical access as of March 31, 2022 [223]. - The company plans to hire additional individuals with appropriate skills in technical accounting and internal control over financial reporting [224]. - Enhancements to reconciliations and management review controls will be implemented, including technology solutions for better visibility and enforcement [224]. - The company aims to develop processes to enhance the precision of management review of financial statement information [224]. - There are no material changes to the risk factors described in the Annual Report on Form 10-K for the period ended December 31, 2021 [229]. - Management continues to evaluate and test the remediation plan and may identify additional measures to address material weaknesses [225]. - The company does not currently anticipate any legal proceedings that would materially affect its business or financial condition [227]. - The internal control system provides reasonable assurance but cannot prevent all errors and fraud [222]. - The company has removed administrator access rights from accounting personnel as part of its remediation efforts [223]. - Management will continue to take necessary steps to reinforce the overall design and capability of the control environment [225]. Product Development and Quality - The company emphasizes the importance of maintaining appropriate low temperature ionic balances in its biopreservation media to minimize cell damage [165].

Financial Data and Key Metrics Changes - Total revenue for Q1 2022 was $36.2 million, up 115% from Q1 2021, with organic growth of 45% and biopreservation media revenue growth of 53% [10][34] - Adjusted gross margin for Q1 2022 was 33%, compared to 55% in Q1 2021 and 18% in Q4 2021, with expectations for sequential improvements throughout the year [38] - Adjusted operating loss for Q1 2022 was $8 million, compared to adjusted operating income of $494,000 in Q1 2021 [40] - Cash balance at March 31, 2022, was $59.5 million, down from $69.9 million at December 31, 2021 [41] Business Line Data and Key Metrics Changes - Cell processing platform revenue was $14.9 million, up 67% over Q1 2021, with organic growth of 53% [35] - Freezers and thaw systems platform revenue was $15.3 million, up 216% over Q1 2021, with COVID-19-related revenue accounting for approximately 4% [35] - Storage and storage services platform revenue was $6 million, up 95% over Q1 2021, with COVID-19-related revenue accounting for approximately 52% [37] Market Data and Key Metrics Changes - The company gained at least 189 new customers across its three product and service platforms in Q1 [15] - Biopreservation media products have been incorporated in over 540 customer clinical applications, up from 450 at the end of 2020 [20] - The evo cold chain management platform saw a 60% increase in shipments year-over-year [29] Company Strategy and Development Direction - The company is focused on optimizing and scaling operations to meet anticipated demand for its tools and services, particularly in the cell and gene therapy space [11] - Management affirms full year 2022 revenue guidance in the range of $159.5 million to $171 million, reflecting year-over-year growth of 34% to 44% [42] - A new co-marketing agreement with the Coriell Institute for Medical Research aims to enhance service offerings and customer reach [27] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong execution from operations and engineering teams, with expectations for continued sequential improvements in gross margin and adjusted EBITDA throughout the year [14][58] - The company anticipates that the cell and gene therapy market will experience explosive growth over the next few years, positioning its portfolio as critical in reducing risk [11][60] Other Important Information - The company is implementing dual sourcing for components to mitigate supply chain risks [53] - A pilot program for a revenue-generating service offering has been initiated, generating approximately $79,000 in revenue in Q1 [55] - The company plans to hold a Global Innovation Summit to explore innovations in CGT manufacturing, storage, and distribution workflows [31] Q&A Session Summary Question: Confidence in stock for cash compensation - Management expressed confidence in the business and the decision to accept stock instead of cash compensation, indicating a belief in the company's growth potential despite current market conditions [65][91] Question: Details on the co-promotion agreement with Coriell - The agreement allows for cross-marketing and revenue sharing, with a focus on customers needing storage and cell analytics services [66][68] Question: Impact of operational issues on Stirling freezers sales - Management indicated that while there are operational challenges, they have not seen significant order cancellations and are confident in retaining most orders [74][75] Question: Growth in evo shipments - Most evo shipments are related to approved CAR T-cell therapies and early-stage clinical trials, indicating strong traction in the market [76][78] Question: Market share growth in biopreservation media - Management believes they are taking market share from home brew solutions, with increased awareness and adoption of their products in clinical settings [81][84] Question: Utilization of new facilities - New facilities are being utilized by both existing and new customers, indicating a positive trend in business growth [86]

Acquisitions - The company completed the acquisition of Sexton Biotechnologies, Inc. on September 1, 2021, issuing 530,502 shares of common stock as consideration, with a non-cash gain of $6.5 million recognized from the acquisition[190][191]. - The GCI Merger, completed on May 3, 2021, involved the issuance of 6,646,870 shares of common stock, with a fair value of net tangible assets acquired at $740,000 and intangible assets valued at $120.5 million[192][198]. - The SciSafe Acquisition closed on October 1, 2020, with the company issuing 611,683 shares valued at $29.29 per share and a cash payment of $15 million, including $1.5 million held in escrow[199][200]. - The CBS Acquisition, finalized on November 12, 2019, involved a total payment of $15 million, including $11 million in cash and shares valued at $4 million, with revenue targets for 2020 and 2021 not met[202][203]. - The acquisition of SAVSU involved 1,100,000 shares of unregistered common stock valued at $19.9 million, representing a 56% ownership stake[208]. - BioLife completed the acquisition of Astero Bio Corporation for a total base payment of $12.5 million, including an initial cash payment of $8.0 million and a deferred payment of $4.5 million[211]. - The company acquired Global Cooling, Inc. for approximately $234.9 million and Sexton Biotechnologies for approximately $39.9 million in 2021[320]. - The company recorded a contingent consideration liability of $9.9 million related to the acquisition of SciSafe, with a change in fair value of $3.0 million for the year ended December 31, 2021[314]. Financial Performance - Total revenue for the year ended December 31, 2021, was $119.2 million, representing an increase of $71.1 million, or 148%, from the previous year, with $40.9 million attributed to acquisitions[241]. - Freezer and thaw revenues increased by 318% to $56.6 million in 2021, driven by the acquisition of Global Cooling and growth in LN2 freezer sales[238]. - Total revenue, including product, service, and rental, was $119,156,000 in 2021, compared to $48,087,000 in 2020, marking an increase of 147.8%[332]. - Product revenue for 2021 reached $101,913,000, a significant increase from $44,540,000 in 2020, representing a growth of 128.7%[332]. - Service revenue from storage and cold chain services increased to $9.817 million in 2021, compared to $1.752 million in 2020, reflecting a growth of approximately 460%[364]. - The company reported a comprehensive loss of $(7,917,000) for 2021, compared to $2,667,000 in 2020[334]. - Net loss for the year 2021 was $7,635,000 compared to a net income of $2,667,000 in 2020, representing a significant decline[341]. Expenses - Total operating expenses for 2021 were $153.1 million, a 185% increase from $53.7 million in 2020[250]. - Research and development (R&D) expenses increased by $5.1 million, or 76%, in 2021 compared to 2020, primarily due to in-process R&D costs from the acquisition of Global Cooling[253]. - Sales and marketing (S&M) expenses rose by $7.6 million, or 118%, in 2021 compared to 2020, with $4.4 million attributed to Global Cooling[257]. - General and administrative (G&A) expenses increased by $17.8 million, or 122%, in 2021 compared to 2020, with significant costs related to stock-based compensation and increased headcount[261]. - The company expects R&D expenses to continue to rise as it expands and refines its product lines[255]. - The company anticipates an increase in S&M expenses as it expands its product offerings and market presence[259]. Assets and Liabilities - Total assets increased to $554.1 million as of December 31, 2021, compared to $234.8 million as of December 31, 2020, representing a growth of 135%[329]. - Total liabilities increased to $73.9 million in 2021 from $29.6 million in 2020, an increase of 149%[329]. - The Company reported an accumulated deficit of $105.0 million as of December 31, 2021, compared to $97.4 million in 2020[329]. - The Company’s total shareholders' equity increased to $480.1 million in 2021 from $205.2 million in 2020, a growth of 133%[329]. Cash Flow - Cash and cash equivalents decreased to $69.9 million as of December 31, 2021, from $90.4 million in 2020, mainly due to debt payoff and operational funding[278]. - Net cash used in operating activities was $(4,593,000) in 2021, a decrease from $6,645,000 provided in 2020[341]. - Cash flows from investing activities totaled $(13,192,000) in 2021, compared to $(24,715,000) in 2020, showing an improvement of 47%[341]. - The company reported a net decrease in cash and cash equivalents of $(20,563,000) for the year, down from an increase of $84,008,000 in 2020[342]. Tax and Regulatory - The effective tax rate for 2021 was 72%, significantly higher than the U.S. statutory rate of 21%, primarily due to windfall benefits on stock compensation[273]. - The company will continue to assess the realizability of its deferred tax assets and adjust the valuation allowance as needed[231]. - As of December 31, 2021, the amount of deferred social security tax payments was $297,000, with $135,000 paid in the year ended December 31, 2021[377]. Market and Operations - The company operates in the cell and gene therapy industry, providing tools and services designed to improve quality and reduce risks in biologic manufacturing[186][187]. - The company has a diversified portfolio of bioproduction tools and services, focusing on biopreservation, cell processing, and cold-chain transportation[186][188]. - The company continues to capitalize on opportunities for organic growth innovations and acquisitions in the bioproduction tools and services market[188]. - The company expects customer concentrations to diminish as revenues increase and its global market presence expands[239]. - The company experienced supply chain disruptions in 2021 due to COVID-19, which negatively impacted profitability due to increased supplier pricing and production stoppages[367].

Company Overview - BioLife Solutions aims to facilitate basic and applied research and the commercialization of new therapies by supplying solutions that maintain the health and function of biologic source material and finished products during manufacturing, storage and distribution[5] - The company's mission is to be a leading provider of bioproduction tools and services to the cell and gene therapy and broader biopharma markets[5] - BioLife Solutions gained over 700 new direct customers in 2021[14, 24] - In 2021, marquee global distributors sold the company's biopreservation media products to over 4,200 unique end customers[14, 24] Financial Performance and Guidance - BioLife Solutions experienced year-over-year revenue growth of 148%[14] - The company's 2022 revenue guidance projects total revenue between $1595 million and $171 million, representing growth of 34% to 44%[20] - The company is aiming for total revenue exceeding $250 million, adjusted gross margin greater than 50%, and adjusted EBITDA margin greater than 30% by 2024[22] Market and Strategy - Regenerative medicine funding reached $231 billion in 2021, up 16% from 2020[29] - The company's biopreservation media is embedded in over 530 customer clinical applications[14, 40] - BioLife Solutions is pursuing an acquisitive growth strategy, targeting synergistic products and technologies in the cell and gene therapy space[58, 60]

Financial Data and Key Metrics Changes - Total revenue for Q4 2021 was $37 million, representing a 153% increase year-over-year and a 10% sequential increase [9][26] - Organic revenue growth in Q4 was 64% year-over-year, driven by biopreservation media revenue growth of 64% [9][26] - Adjusted gross margin for Q4 2021 was 18%, down from 54% in Q4 2020, primarily due to unusual costs related to the Stirling product line [31][32] - For the full year 2021, total revenue was $119.2 million, a 148% increase over 2020, with organic revenue growth of 37% [28][29] Business Line Data and Key Metrics Changes - Cell processing platform revenue in Q4 was $14.8 million, up 81% year-over-year, with organic growth of 64% [27] - Freezers and Thaw systems platform revenue was $16.6 million, up 285% year-over-year, with organic growth of 13% [27] - Storage and storage services platform revenue was $5.9 million, up 164% year-over-year, with organic growth of 164% [28] Market Data and Key Metrics Changes - COVID-19 related revenue accounted for approximately 15% of total revenue in Q4 2021 and 15% for the full year 2021 [27][29] - The company gained at least 235 new customers in Q4 2021, compared to 213 in all of 2020, and 700 new direct customers for the full year [12][28] Company Strategy and Development Direction - The company is focused on cross-selling to capture revenue synergies, with 46 customers purchasing additional portfolio solutions in 2021 [14] - The company aims to improve gross margins through operational overhead leverage and increased average selling prices [33][48] - The company is committed to defining class-leading products through innovation and has a robust product development roadmap for the evo platform [25][91] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong demand for bioproduction tools and services, particularly in cell and gene therapy [50] - The company anticipates a positive impact on margins throughout 2022 due to various improvement initiatives [33][39] - Management noted that operational issues related to the Stirling product line have been identified and are being addressed [48][104] Other Important Information - The company expects total revenue for 2022 to be in the range of $159.5 million to $171 million, reflecting year-over-year growth of 34% to 44% [39] - The adjusted operating loss for Q4 2021 was $13.2 million, compared to an operating loss of $255,000 in Q4 2020 [36] Q&A Session Summary Question: Can you frame expectations for the margins in Q1 or the first half versus the second half? - Management does not provide specific margin guidance but expects overall gross margin to improve throughout 2022 [54][55] Question: Is there a backlog building in the Stirling segment? - There is a backlog building, but it is not quantified [57] Question: What are the significant factors impacting operating income? - The significant factor impacting operating income is the Stirling product line [60] Question: What contributed to the increase in customer count? - The increase in customer count is attributed to the integrated freezer sales team and heightened brand awareness [61] Question: Can you comment on the durability of COVID-related revenues? - The durability of COVID-related revenues depends on specific contracts and customer renewals [74] Question: What are the competitive advantages of the evo system? - The evo platform is differentiated by its thermal hold time and patented features that reduce risk for customers [86][89]

Investor Presentation Acquisition of: November 2021 NASDAQ : BLFS 1 BioLife Solutions Investor Presentation : November 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...

Business Operations - The company develops, manufactures, and markets bioproduction tools and services for the cell and gene therapy industry, focusing on improving quality and reducing risks in biologic manufacturing and delivery [205]. - The proprietary biopreservation media products, HypoThermosol® FRS and CryoStor®, have been incorporated in over 525 customer clinical applications, significantly extending shelf-life and improving post-thaw viability [209][212]. - The company acquired Sexton Biotechnologies in September 2021, enhancing its portfolio with human platelet lysates and automated cell-processing machines [217]. - In May 2021, the company acquired Global Cooling, which manufactures ultra-low temperature freezers that are energy efficient, using as little as 2.8 kWh/day at -80°C [218]. - The company operates five storage facilities in the USA and one in the Netherlands, providing biological and pharmaceutical storage services [225]. - The evo platform, acquired from SAVSU Technologies, allows real-time tracking of biologic products, enhancing cold chain management for cell and gene therapies [227]. - The company utilizes partnerships with established couriers to market its evo platform, reducing the need for cash to build specialized facilities globally [228]. - The company continues to capitalize on opportunities for organic growth innovations and acquisitions to maximize the value of its product platform [206]. Financial Performance - Total bioproduction tools and services revenue for Q3 2021 was $33.8 million, a 200% increase from $11.3 million in Q3 2020 [231]. - Freezer and thaw product revenue increased by $14.2 million (422%) in Q3 2021 compared to Q3 2020, driven by the acquisition of Global Cooling [236]. - Cell processing product revenue rose by $4.1 million (55%) in Q3 2021 compared to Q3 2020, supported by higher selling prices and customer adoption in the CGT market [235]. - Service revenue for Q3 2021 was $2.3 million, with no service revenue reported in Q3 2020, attributed to the acquisition of SciSafe [237]. - Total revenue for the nine months ended September 30, 2021, was $81.85 million, a 145% increase from $33.36 million in the same period of 2020 [234]. Expenses and Cash Flow - Total operating expenses for Q3 2021 were $44.96 million, a 259% increase from $12.53 million in Q3 2020, primarily due to acquisitions [239]. - Research and development expenses increased by $1.5 million (87%) in Q3 2021 compared to Q3 2020, driven by acquisitions and increased headcount [243]. - Cost of revenue as a percentage of total revenue was 74% for Q3 2021, up from 43% in Q3 2020, reflecting lower margin product lines from acquisitions [241]. - Net cash used by operating activities was $3.82 million for the nine months ended September 30, 2021, compared to net cash provided of $4.39 million in the same period of 2020, reflecting an increase in cash used of $8.2 million [259]. - Net cash used by investing activities totaled $10.65 million during the nine months ended September 30, 2021, compared to $2.66 million in the same period of 2020, indicating a $7.99 million increase due to equipment purchases [260]. - Net cash used by financing activities was $673,000 for the nine months ended September 30, 2021, a decrease of $101.48 million compared to net cash provided of $100.8 million in the same period of 2020 [261]. - As of September 30, 2021, the company had $75.1 million in cash and cash equivalents, down from $90.4 million at the end of 2020 [257]. - The company may consider raising additional capital through debt or equity financing to pursue strategic investment opportunities [257]. Other Income and Gains - Total other income for the three months ended September 30, 2021 was $6.25 million, a significant increase of 5,431% compared to $113,000 in the same period of 2020 [255]. - The gain on acquisition of Sexton Biotechnologies, Inc. contributed $6.45 million to other income in the three months ended September 30, 2021 [256]. - The change in fair value of warrant liability resulted in a non-cash gain of $4.5 million during the nine months ended September 30, 2020 [255]. - The company experienced a 1,592% increase in interest expense, net, for the three months ended September 30, 2021, totaling $(194,000) compared to $13,000 in the same period of 2020 [255]. Contractual Obligations - There were no significant changes to contractual obligations as of September 30, 2021 compared to previous disclosures [263].

Financial Data and Key Metrics Changes - The company reported Q3 2021 revenue of nearly $34 million, representing a 200% increase compared to Q3 2020 and an 8% increase over Q2 2021 [7][18] - Organic revenue growth was 37% year-over-year, driven by a nearly 50% increase in bio-preservation media revenue [8][18] - Adjusted gross margin for Q3 2021 was 28%, down from 57% in the previous year, primarily due to unusual cost of sales charges [19][20] - Adjusted operating loss for Q3 2021 was $8.1 million compared to a loss of $359,000 in Q3 2020 [21] Business Line Data and Key Metrics Changes - Revenue from the Cell Processing platform for Q3 2021 was $11.5 million, including bio-preservation media revenue [18] - Revenue from the Freezers and Thaw Systems platform was $17.6 million [18] - Storage and Cold Chain Services revenue for Q3 2021 was $4.7 million [18] - The company gained 213 new customers across its three product and service platforms in Q3 2021 [8] Market Data and Key Metrics Changes - The company gained nearly 500 new customers in the first nine months of 2021, with expectations for higher counts post-year-end [9] - The company is experiencing strong demand across all platforms, particularly in the cell and gene therapy market [24] Company Strategy and Development Direction - The company aims to capture revenue synergies through cross-selling its portfolio solutions [9][10] - Plans for expanding storage services include opening additional facilities in strategic locations [13] - The company is focused on integrating its acquisitions and improving gross margins [15][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong demand for bioproduction tools and services, anticipating significant growth in the cell and gene therapy industry [24] - Operational challenges faced in Q3 are viewed as typical for a growing company and are being addressed [24] Other Important Information - The company expects total revenue for 2021 to be in the range of $115 million to $119 million, reflecting year-over-year growth of 139% to 147% [22] - The company has a cash balance of $75.1 million as of September 30, 2021 [22] Q&A Session Summary Question: Supply chain disruption details - Management indicated that the supply chain issues were related to a vendor transition, which has caused unexpected surcharges and inconsistent delivery [27][28] Question: Q4 revenue outlook - Management noted strong demand across platforms and success in both acquiring new customers and expanding existing accounts [30][31] Question: Customer base expansion and cross-selling - Management confirmed that all new customers were de novo and emphasized the importance of cross-selling opportunities [64][35] Question: Impact of operational issues on customer relationships - Management acknowledged that operational issues could affect customer experiences but emphasized their focus on improving service quality [38] Question: Demand for freezers - Management reported strong demand across various segments, including cell and gene therapy and broader biopharma markets [40] Question: SciSafe facility expansion - Management confirmed the opening of five facilities and plans for future expansion based on biotech clusters [42] Question: Gross margin normalization - Management indicated that normalized gross margins are expected to be in the range of 40% to 42%, with a goal of exceeding 50% in the next few years [69][70]

Business Overview - The company develops and markets bioproduction tools and services for the cell and gene therapy industry, focusing on improving quality and reducing risks in biologic manufacturing and delivery [180]. - Proprietary biopreservation media products, HypoThermosol® FRS and CryoStor®, have been incorporated in over 500 customer clinical applications, significantly extending shelf-life and improving post-thaw viability [185][188]. - The proprietary biopreservation media products are fully defined, serum-free, and protein-free, manufactured under current Good Manufacturing Practices (cGMP) [187]. - The company continues to capitalize on opportunities for growth through both organic innovations and strategic acquisitions in the bioproduction sector [181]. Financial Performance - Total revenue for the three months ended June 30, 2021, was $31.2 million, a 215% increase compared to $9.9 million in 2020 [206]. - Product revenue for the three months ended June 30, 2021, was $27.5 million, representing an increase of $18.0 million, or 189%, compared to 2020 [207]. - Revenue from cell processing products increased by $3.0 million, or 45%, for the three months ended June 30, 2021, compared to the same period in 2020 [208]. - Revenue from freezer and thaw products increased by $15.0 million, or 530%, for the three months ended June 30, 2021, compared to the same period in 2020 [209]. Operating Expenses - Total operating expenses for the three months ended June 30, 2021, were $35.8 million, a 262% increase compared to $9.9 million in 2020 [215]. - Research and development expenses increased by $1.6 million, or 106%, for the three months ended June 30, 2021, compared to the same period in 2020 [218]. - Sales and marketing expenses increased by $1.8 million, or 130%, for the three months ended June 30, 2021, compared to the same period in 2020 [221]. - General and administrative expenses increased by $3.9 million, or 118%, for the three months ended June 30, 2021, compared to the same period in 2020 [224]. - Cost of revenue as a percentage of revenue was 59% for the three months ended June 30, 2021, compared to 45% for the same period in 2020 [216]. Cash Flow and Capital - As of June 30, 2021, the company had $76.2 million in cash and cash equivalents, down from $90.4 million on December 31, 2020 [232]. - Net cash used by operating activities was $5.9 million for the six months ended June 30, 2021, compared to a net cash provided of $4.9 million for the same period in 2020, reflecting a change of $10.8 million [235]. - Net cash used in investing activities increased to $8.6 million during the six months ended June 30, 2021, from $1.7 million in the same period of 2020, indicating a rise of $6.9 million [236]. - Net cash provided by financing activities totaled $385,000 for the six months ended June 30, 2021, a significant decrease from $20.2 million in the same period of 2020, reflecting a change of $19.8 million [237]. - The company may consider raising additional capital through debt or equity financing to pursue acquisition or strategic investment opportunities [232]. Acquisitions and Infrastructure - In May 2021, the company acquired Global Cooling, Inc., enhancing its portfolio with ultra-low temperature freezers that are energy efficient, using as little as 2.8 kWh/day at -80°C [193]. - The acquisition of SciSafe Holdings, Inc. in October 2020 expanded the company's capabilities in biological and pharmaceutical storage and cold chain logistics [199]. - The company operates five storage facilities in the USA and one in the Netherlands, providing biological and pharmaceutical storage services [200]. - The evo platform, developed through the acquisition of SAVSU Technologies, allows real-time tracking of biologic products, enhancing cold chain management for cell and gene therapies [201]. Partnerships and Market Strategy - The company utilizes partnerships with established couriers to scale sales and marketing efforts, reducing the need for specialized facilities globally [203]. - The company expects R&D expenses to increase as it continues to expand and refine product lines acquired in recent years [219]. Contractual Obligations - There were no off-balance sheet arrangements as of June 30, 2021 [238]. - The company did not report any significant changes to its contractual obligations in the three and six months ended June 30, 2021 [239].