Cryo-Cell International(US:CCEL)2024-07-15 21:00Financial Performance - Revenue from public cord blood banking sales for the six months ended May 31, 2024, was $85,190, a decrease from $394,513 for the same period in 2023, attributed to customer demand volatility [213]. - For the six months ended May 31, 2024, product revenue was $38,834, a decrease from $59,377 for the same period in 2023 [237]. - Revenue for the three months ended May 31, 2024, was $8,042,811, representing a 3% increase compared to $7,772,690 for the same period in 2023, driven by a 5% increase in processing and storage fees [242]. - Cost of sales for the six months ended May 31, 2024, was $4,185,218, a slight decrease of 1% from $4,210,550 in the same period in 2023 [238]. - Cost of sales for the three months ended May 31, 2024, was $2,024,750, reflecting a 6% decrease from $2,143,186 for the same period in 2023 [243]. - U.S. income tax expense for the six months ended May 31, 2024, was $1,054,659, compared to $573,154 for the same period in 2023 [241]. Expenses - Research, development, and related engineering expenses for the six months ended May 31, 2024, were $743,974, up from $383,516 in the 2023 period, with $270,368 related to the Clinical Study and Research Agreement with Duke University [214]. - Selling, general, and administrative expenses for the three months ended May 31, 2024, were $4,021,357, slightly down from $4,038,968 in the 2023 period [219]. - Interest expense for the six months ended May 31, 2024, was $585,732, down from $936,183 in the comparable period in 2023 [216]. Capital Expenditures and Cash Position - The company anticipates discretionary capital expenditures of approximately $5,000,000 over the next twelve months for property build-out and equipment purchases [250]. - The company had cash and cash equivalents of $469,195 as of May 31, 2024, an increase from $406,067 at November 30, 2023 [249]. Business Development and Strategy - The Company completed the purchase of a 56,000 square foot facility in Durham, North Carolina, on July 18, 2022, to expand its cryopreservation and cold storage business [204]. - The company is constructing a new facility to expand its cryopreservation and cold storage business, introducing the ExtraVault service for biopharmaceutical companies [232]. - The Company has definitive license agreements to market its umbilical cord blood stem cell programs in several Central American countries [210]. - The Company plans to explore treatments for osteoarthritis using proprietary processes and regulatory data developed at Duke University [194]. - The company plans to open the Cryo-Cell Institute for Cellular Therapies and begin infusing patients during the 4th quarter of fiscal 2024 due to delays in FDA approval for its Phase 3 CP Trial [224]. - The Company aims to continue offering cord blood and cord tissue banking services, relying on online advertising and a national team of field educators for client enrollment [208]. Impairment and Viability - The Company recorded an impairment charge of $13,108,064 during the fourth quarter of fiscal 2023 due to uncertain future cash flows from the Duke license agreement [195]. - The company has a 100% viability rate of its specimens upon thaw for therapeutic use since inception [230].