BioLife Solutions(BLFS) - 2022 Q2 - Quarterly Report

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].