BioLife Solutions(BLFS) - 2020 Q3 - Quarterly Report

Acquisitions and Expansions - The company acquired SciSafe Holdings, Inc. on October 1, 2020, enhancing its biologic materials storage capabilities[176] - The company acquired Astero Bio Corporation in April 2019, expanding its bioprocessing tools portfolio with automated thawing products that reduce contamination risks[185] - The company acquired Custom Biogenic Systems, Inc. in November 2019, diversifying its product line and reducing supply chain costs for its dry vapor shippers[189] - The company acquired SciSafe for $15.0 million in cash and additional shares as contingent consideration on October 1, 2020[221] - The company recorded a non-cash gain of $10.1 million associated with the acquisition of SAVSU on August 7, 2019[219] - The fair value of the company's equity interest in SAVSU was determined to be $15.9 million prior to the acquisition[219] Product and Revenue Growth - The proprietary biopreservation media products, HypoThermosol® FRS and CryoStor®, have been incorporated in over 450 customer clinical applications, significantly extending shelf life and improving post-thaw viability[178] - Annual revenue from each customer commercial application using the company's products could range from $0.5 million to $2.0 million if approved for large-scale manufacturing[184] - Biopreservation media product revenue increased by $1.3 million, or 22% in the three months ended September 30, 2020 compared to the same period in 2019, and increased by $4.6 million, or 25% in the nine months ended September 30, 2020 compared to the same period in 2019[199] - Revenue increased by $4.7 million, or 71%, in the three months ended September 30, 2020 compared to 2019, and by $14.3 million, or 75% in the nine months ended September 30, 2020, compared to 2019[199] Financial Performance and Expenses - Cost of product revenue increased by $2.7 million and $8.2 million, or 130% and 143%, respectively, for the three and nine months ended September 30, 2020 compared to the same periods in 2019[202] - Research and development expenses increased by $693,000 and $2.8 million, or 67% and 134%, respectively, for the three and nine months ended September 30, 2020 compared to the same periods in 2019[204] - Sales and marketing expenses increased by $338,000 and $1.5 million, or 27% and 49%, respectively, for the three and nine months ended September 30, 2020 compared to the same periods in 2019[207] - General and administrative expenses increased by $1.2 million and $3.2 million, or 49% and 48%, respectively, for the three and nine months ended September 30, 2020 compared to the same periods in 2019[210] - Total costs and operating expenses increased by $5.1 million, or 70%, in the three months ended September 30, 2020 compared to 2019, and by $15.7 million, or 84%, in the nine months ended September 30, 2020 compared to 2019[201] Cash Flow and Financing - As of September 30, 2020, the company had $109 million in cash, cash equivalents, and restricted cash, compared to $6.4 million on December 31, 2019[221] - Net cash provided by operating activities was $4.4 million for the nine months ended September 30, 2020, an increase from $2.2 million in the same period of 2019[227] - Net cash used in investing activities totaled $2.7 million during the nine months ended September 30, 2020, significantly lower than $13.0 million in the same period of 2019[228] - Net cash provided by financing activities was $100.8 million for the nine months ended September 30, 2020, compared to $1.3 million in the same period of 2019[229] - The company raised approximately $80.2 million from a public offering of 5,951,250 shares at a price of $14.50 per share[222] - The company may consider raising additional capital through debt or equity financing due to heightened business uncertainty caused by the COVID-19 pandemic[224] Impact of COVID-19 - The impact of the COVID-19 pandemic has affected the company's business operations, leading to various restrictions and challenges[195] - The company expects fluctuations in revenue based on large customer ordering patterns throughout 2020 due to the COVID-19 pandemic[199] - The company anticipates an increase in R&D expenses as it continues to expand and refine the product lines acquired in 2019[205] Product Features and Capabilities - The evo platform, developed through the acquisition of SAVSU Technologies, provides real-time tracking of biologic products, enhancing cold chain management[187] - The company’s liquid nitrogen freezers offer customizable features and a temperature range of -196°C, with high capacity rates for various customer needs[191] - SciSafe's biorepositories can maintain and store samples at temperatures of -150 degrees Celsius and below, supporting the CGT and pharmaceutical industries[193] Pricing and Market Trends - The average selling price of biopreservation media products increased by $11, or less than 1% in the three months ended September 30, 2020 compared to the same period in 2019, and increased by $219, or 10% in the nine months ended September 30, 2020 compared to the same period in 2019[199]