BioLife Solutions(US:BLFS)2021-11-15 21:00Business Operations - The company develops, manufactures, 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 [205]. - The proprietary biopreservation media products, HypoThermosol® FRS and CryoStor®, have been incorporated in over 525 customer clinical applications, significantly extending shelf-life and improving post-thaw viability [209][212]. - The company acquired Sexton Biotechnologies in September 2021, enhancing its portfolio with human platelet lysates and automated cell-processing machines [217]. - In May 2021, the company acquired Global Cooling, which manufactures ultra-low temperature freezers that are energy efficient, using as little as 2.8 kWh/day at -80°C [218]. - The company operates five storage facilities in the USA and one in the Netherlands, providing biological and pharmaceutical storage services [225]. - The evo platform, acquired from SAVSU Technologies, allows real-time tracking of biologic products, enhancing cold chain management for cell and gene therapies [227]. - The company utilizes partnerships with established couriers to market its evo platform, reducing the need for cash to build specialized facilities globally [228]. - The company continues to capitalize on opportunities for organic growth innovations and acquisitions to maximize the value of its product platform [206]. Financial Performance - Total bioproduction tools and services revenue for Q3 2021 was $33.8 million, a 200% increase from $11.3 million in Q3 2020 [231]. - Freezer and thaw product revenue increased by $14.2 million (422%) in Q3 2021 compared to Q3 2020, driven by the acquisition of Global Cooling [236]. - Cell processing product revenue rose by $4.1 million (55%) in Q3 2021 compared to Q3 2020, supported by higher selling prices and customer adoption in the CGT market [235]. - Service revenue for Q3 2021 was $2.3 million, with no service revenue reported in Q3 2020, attributed to the acquisition of SciSafe [237]. - Total revenue for the nine months ended September 30, 2021, was $81.85 million, a 145% increase from $33.36 million in the same period of 2020 [234]. Expenses and Cash Flow - Total operating expenses for Q3 2021 were $44.96 million, a 259% increase from $12.53 million in Q3 2020, primarily due to acquisitions [239]. - Research and development expenses increased by $1.5 million (87%) in Q3 2021 compared to Q3 2020, driven by acquisitions and increased headcount [243]. - Cost of revenue as a percentage of total revenue was 74% for Q3 2021, up from 43% in Q3 2020, reflecting lower margin product lines from acquisitions [241]. - Net cash used by operating activities was $3.82 million for the nine months ended September 30, 2021, compared to net cash provided of $4.39 million in the same period of 2020, reflecting an increase in cash used of $8.2 million [259]. - Net cash used by investing activities totaled $10.65 million during the nine months ended September 30, 2021, compared to $2.66 million in the same period of 2020, indicating a $7.99 million increase due to equipment purchases [260]. - Net cash used by financing activities was $673,000 for the nine months ended September 30, 2021, a decrease of $101.48 million compared to net cash provided of $100.8 million in the same period of 2020 [261]. - As of September 30, 2021, the company had $75.1 million in cash and cash equivalents, down from $90.4 million at the end of 2020 [257]. - The company may consider raising additional capital through debt or equity financing to pursue strategic investment opportunities [257]. Other Income and Gains - Total other income for the three months ended September 30, 2021 was $6.25 million, a significant increase of 5,431% compared to $113,000 in the same period of 2020 [255]. - The gain on acquisition of Sexton Biotechnologies, Inc. contributed $6.45 million to other income in the three months ended September 30, 2021 [256]. - The change in fair value of warrant liability resulted in a non-cash gain of $4.5 million during the nine months ended September 30, 2020 [255]. - The company experienced a 1,592% increase in interest expense, net, for the three months ended September 30, 2021, totaling $(194,000) compared to $13,000 in the same period of 2020 [255]. Contractual Obligations - There were no significant changes to contractual obligations as of September 30, 2021 compared to previous disclosures [263].