BioLife Solutions(US:BLFS)2021-03-31 20:54Acquisitions - BioLife completed the acquisition of Astero Bio Corporation for a total of $12.5 million, including an initial cash payment of $8.0 million and potential earnout payments of up to $3.5 million based on revenue targets[180]. - The fair value of the net tangible assets acquired from Astero is approximately $324,000, with identifiable intangibles valued at $4.1 million and residual goodwill of $9.5 million[182]. - BioLife acquired SAVSU Technologies, Inc. for $19.9 million, paying 1,100,000 shares of common stock based on a share price of $18.12 at the time of acquisition[185]. - The fair value of the net tangible assets acquired from SAVSU is $4.2 million, with identifiable intangibles at $12.2 million and residual goodwill of $19.5 million[186]. - The CBS Acquisition involved a base payment of $15.0 million, including a cash payment of $11.0 million and shares valued at $4.0 million[188]. - The fair value of the net tangible assets acquired from CBS is $6.0 million, with identifiable intangibles at $6.8 million and residual goodwill of $3.1 million[189]. - BioLife acquired SciSafe Holdings, Inc. for a total consideration of $15 million in cash and 611,683 shares of common stock valued at $29.29 per share[191]. - The fair value of the net tangible assets acquired from SciSafe is $2.8 million, with intangible assets valued at $12.1 million and residual goodwill of $24.9 million[192]. - The company acquired 100% of SciSafe, Inc. for approximately $36.5 million, including $3.7 million in contingent consideration, resulting in $12.1 million of identifiable intangible assets and $24.9 million of goodwill[279]. Financial Performance - Total revenue for 2020 was $48.1 million, a 76% increase from $27.4 million in 2019[213]. - Biopreservation media product revenue increased by $7.6 million, or 32%, in 2020 compared to 2019[213]. - Total operating expenses for 2020 were $53.7 million, up 94% from $27.6 million in 2019[215]. - Research and development expenses rose by $3.6 million, or 112%, in 2020 compared to 2019[218]. - General and administrative expenses increased by $5.7 million, or 64%, in 2020 compared to 2019[223]. - Operating loss for 2020 was $(5.6) million, compared to a loss of $(0.2) million in 2019[291]. - The company reported a net income of $2.7 million for 2020, a significant improvement from a net loss of $(1.7) million in 2019[291]. - Basic earnings per share for 2020 was $0.09, compared to a loss of $(0.09) per share in 2019[291]. - Total revenue, including product, rental, and service revenue, reached $48.1 million in 2020, up from $27.4 million in 2019, marking a 75% increase[291]. - Product revenue for 2020 was $44.5 million, a 66% increase from $26.8 million in 2019[291]. - The company generated $6.6 million from operating activities in 2020, compared to $1.2 million in 2019[242]. - Cash and cash equivalents at the end of 2020 were $90.4 million, compared to $6.4 million at the end of 2019[237]. - Total cash provided by operating activities for the year ended December 31, 2020, was $6,645,000, compared to a cash outflow of $142,000 for the year ended December 31, 2019[299]. - Total assets increased to $234.8 million as of December 31, 2020, compared to $92.8 million in 2019, representing a growth of 153%[287]. - Total liabilities decreased to $29.6 million in 2020 from $49.4 million in 2019, a reduction of 40%[287]. - Shareholders' equity rose to $205.2 million in 2020, compared to $43.5 million in 2019, indicating strong financial health[287]. Revenue Recognition and Accounting Policies - Revenue is recognized when control of products or services is transferred to customers, with no significant financing components in contracts for the year ended December 31, 2020[194]. - The company generates revenue from leasing evo cold chain systems, accounting for rental transactions as operating leases and recording rental revenue on a straight-line basis[194]. - The company recognizes product revenue upon transfer of control to the customer, which occurs at a point in time[195]. - Cost of product, rental, and service revenue as a percentage of revenue was 43% in 2020, up from 32% in 2019[217]. - The company values biopreservation media inventory at cost or net realizable value, using the specific identification method[196]. - The fair value of contingent consideration is remeasured each reporting period, with changes recorded in the consolidated statements of operations[203]. - The company tests goodwill for impairment annually, concluding that goodwill was not impaired as of December 31, 2020[202]. - Intangible assets are recorded at fair value and amortized over their estimated useful lives, with no adverse conditions indicating impairment as of December 31, 2020[365]. - The company established an allowance for doubtful accounts based on the collectability of specific customer accounts, with no specific figures provided in the documents[332]. Future Outlook and Strategic Plans - The company focuses on expanding its market presence through strategic acquisitions and innovations in bioproduction tools and services for the cell and gene therapy industry[178]. - The company expects R&D and sales and marketing expenses to increase as it expands its product lines[219][221]. - The company expects operating expenses to increase in the year ending December 31, 2021, as it continues to expand its cell and gene therapy tools business[253]. - The company plans to actively evaluate strategic transactions, including acquiring complementary products and technologies, which may require additional financing[255]. - The company anticipates increased demand for biological material storage as COVID-19 restrictions are reduced[249]. - The company has successfully mitigated supply chain problems despite the challenges posed by the COVID-19 pandemic[249]. - Future capital requirements will depend on the expansion of the cell and gene therapy tools and services business and the success of research and development activities[252]. - The company expects no material impact from the adoption of ASU 2019-12 on its consolidated financial statements due to a full valuation allowance on net deferred tax assets[370]. Cash Flow and Financing Activities - In 2020, the company used $24.7 million in cash for investing activities, including $15.0 million for the SciSafe acquisition and $7.8 million for capital expenditures[244]. - Cash provided by financing activities in 2020 was $102.1 million, primarily from the sale of common shares totaling $100.3 million[247]. - The company experienced a net cash used in investing activities of $24,715,000 in 2020, compared to $27,018,000 in 2019, indicating a reduction in cash outflows[299]. - The company received $2,175,320 from the Paycheck Protection Program (PPP) but repaid the loan on April 29, 2020, following changes in guidelines[324]. - As of December 31, 2020, the company had deferred social security tax payments amounting to $432,000, with plans to repay 50% in 2021 and the remaining 50% in 2022[324]. Research and Development - Research and development expenses increased to $6.7 million in 2020, up from $3.2 million in 2019, reflecting a focus on innovation[291]. - Research and development costs were expensed as incurred, with no specific figures provided in the documents[355]. - The company has revised revenue projections for the ThawSTAR and freezer product lines due to the impact of COVID-19, but no impairment of long-lived assets was determined as of December 31, 2020[318].