Cryo-Cell International(US:CCEL)2025-10-15 21:00Company Overview - The company currently stores over 240,000 cord blood and cord tissue specimens, making it the world's first private cord blood bank established in 1989[137]. - The company introduced its cord tissue service in 2011, which stores a section of the umbilical cord tissue, enhancing its service offerings[153]. - The company has a 100% viability rate of its specimens upon thaw for therapeutic use since inception[152]. Financial Performance - Revenue for the nine months ended August 31, 2025 was $23,723,155, a decrease of 1% compared to $23,961,761 for the same period in 2024[165]. - Revenue for the three months ended August 31, 2025 was $7,825,432, a 3% decrease from $8,066,715 for the same period in 2024[180]. - Public cord blood banking revenue for the nine months ended August 31, 2025 was $128,886, down from $205,799 in the same period in 2024, attributed to customer demand volatility[167]. - Public cord blood banking revenue for the three months ended August 31, 2025 was $4,119, down from $120,609 in the same period in 2024, again due to customer demand volatility[182]. - Processing and storage fee revenue increased by 3%, but there was a 14% decrease in the number of new domestic cord blood specimens processed in the first nine months of fiscal 2025 compared to the same period in 2024[166]. Expenses and Costs - Cost of sales decreased by 11% to $5,642,546 for the nine months ended August 31, 2025, compared to $6,311,064 for the same period in 2024[168]. - Selling, general and administrative expenses increased by 2% to $12,772,301 for the nine months ended August 31, 2025, primarily due to a $604,000 increase in legal fees[169]. - Research and development expenses significantly decreased to $291,479 for the nine months ended August 31, 2025, compared to $937,907 for the same period in 2024[170]. - Cost of sales for the three months ended August 31, 2025 was $1,801,419, representing a 15% decrease compared to $2,125,846 for the same period in 2024[183]. Cash Flow and Financing - As of August 31, 2025, the Company had cash and cash equivalents of $265,207, down from $560,960 at November 30, 2024, primarily due to net cash used in investing activities of $685,683[192]. - Net cash from operating activities for the nine months ended August 31, 2025 was $4,197,793, compared to $3,853,917 for the same period in 2024, indicating an increase in operational cash flow[192]. - Net cash used in financing activities for the nine months ended August 31, 2025 was $3,807,863, primarily due to payments to partially repay the Susser Bank note payable and common stock repurchases[192]. - The Company has a revolving line of credit with a balance of $3,200,000 as of August 31, 2025[193]. Legal and Regulatory Matters - The company has received a notice of termination for the Duke License Agreement effective May 17, 2025, impacting future business expansion plans[140]. - The Company filed a demand for arbitration against Duke University, alleging damages exceeding $100 million related to the Duke License Agreement[196]. - The Company previously anticipated needing over $50 million over the next 5 years to fund activities related to the Duke License Agreement, but current funding needs are uncertain due to the ongoing dispute[199]. - The opening of the Cryo-Cell Institute for Cellular Therapies is on hold pending the resolution of the Duke dispute[198]. Future Plans and Developments - The company anticipates opening the Cryo-Cell Institute for Cellular Therapies, initially hoped for Q4 fiscal 2021, now expected in Q4 fiscal 2024[140]. - The Company anticipates making discretionary capital expenditures of approximately $1,000,000 over the next twelve months for equipment and software enhancements[194]. - The effective interest rate on the Term Loan is 6.96%, while the Company pays SOFR plus 3.25% under the interest rate swap agreement[191]. - The Company recorded proceeds of $228,000 from the termination of an interest rate swap agreement on April 15, 2024[191]. Impairment and Losses - In fiscal 2023, the company recorded an impairment charge of $13,108,064 related to the Duke License Agreement[142]. - Losses on marketable securities for the three months ended August 31, 2025 were $193,886, compared to gains of $522,458 for the same period in 2024[188]. - The company believes that the market for cord blood stem cell preservation is enhanced by global discussions on stem cell research and reducing healthcare costs[149]. - The company offers a payment warranty of up to $100,000 for clients using its premium processing method if the product fails to engraft[152].