BioLife Solutions(BLFS) - 2021 Q2 - Quarterly Report

Business Overview - The company develops and markets bioproduction tools and services for the cell and gene therapy industry, focusing on improving quality and reducing risks in biologic manufacturing and delivery [180]. - Proprietary biopreservation media products, HypoThermosol® FRS and CryoStor®, have been incorporated in over 500 customer clinical applications, significantly extending shelf-life and improving post-thaw viability [185][188]. - The proprietary biopreservation media products are fully defined, serum-free, and protein-free, manufactured under current Good Manufacturing Practices (cGMP) [187]. - The company continues to capitalize on opportunities for growth through both organic innovations and strategic acquisitions in the bioproduction sector [181]. Financial Performance - Total revenue for the three months ended June 30, 2021, was $31.2 million, a 215% increase compared to $9.9 million in 2020 [206]. - Product revenue for the three months ended June 30, 2021, was $27.5 million, representing an increase of $18.0 million, or 189%, compared to 2020 [207]. - Revenue from cell processing products increased by $3.0 million, or 45%, for the three months ended June 30, 2021, compared to the same period in 2020 [208]. - Revenue from freezer and thaw products increased by $15.0 million, or 530%, for the three months ended June 30, 2021, compared to the same period in 2020 [209]. Operating Expenses - Total operating expenses for the three months ended June 30, 2021, were $35.8 million, a 262% increase compared to $9.9 million in 2020 [215]. - Research and development expenses increased by $1.6 million, or 106%, for the three months ended June 30, 2021, compared to the same period in 2020 [218]. - Sales and marketing expenses increased by $1.8 million, or 130%, for the three months ended June 30, 2021, compared to the same period in 2020 [221]. - General and administrative expenses increased by $3.9 million, or 118%, for the three months ended June 30, 2021, compared to the same period in 2020 [224]. - Cost of revenue as a percentage of revenue was 59% for the three months ended June 30, 2021, compared to 45% for the same period in 2020 [216]. Cash Flow and Capital - As of June 30, 2021, the company had $76.2 million in cash and cash equivalents, down from $90.4 million on December 31, 2020 [232]. - Net cash used by operating activities was $5.9 million for the six months ended June 30, 2021, compared to a net cash provided of $4.9 million for the same period in 2020, reflecting a change of $10.8 million [235]. - Net cash used in investing activities increased to $8.6 million during the six months ended June 30, 2021, from $1.7 million in the same period of 2020, indicating a rise of $6.9 million [236]. - Net cash provided by financing activities totaled $385,000 for the six months ended June 30, 2021, a significant decrease from $20.2 million in the same period of 2020, reflecting a change of $19.8 million [237]. - The company may consider raising additional capital through debt or equity financing to pursue acquisition or strategic investment opportunities [232]. Acquisitions and Infrastructure - In May 2021, the company acquired Global Cooling, Inc., enhancing its portfolio with ultra-low temperature freezers that are energy efficient, using as little as 2.8 kWh/day at -80°C [193]. - The acquisition of SciSafe Holdings, Inc. in October 2020 expanded the company's capabilities in biological and pharmaceutical storage and cold chain logistics [199]. - The company operates five storage facilities in the USA and one in the Netherlands, providing biological and pharmaceutical storage services [200]. - The evo platform, developed through the acquisition of SAVSU Technologies, allows real-time tracking of biologic products, enhancing cold chain management for cell and gene therapies [201]. Partnerships and Market Strategy - The company utilizes partnerships with established couriers to scale sales and marketing efforts, reducing the need for specialized facilities globally [203]. - The company expects R&D expenses to increase as it continues to expand and refine product lines acquired in recent years [219]. Contractual Obligations - There were no off-balance sheet arrangements as of June 30, 2021 [238]. - The company did not report any significant changes to its contractual obligations in the three and six months ended June 30, 2021 [239].