Cryo-Cell International(US:CCEL)2022-07-11 21:01Storage and Specimen Management - The company currently stores nearly 225,000 cord blood and cord tissue specimens for newborns and their families [154]. - The company has maintained a 100% viability rate of its specimens upon thaw for therapeutic use since inception [169]. - As of May 31, 2022, the Company had approximately 6,000 cord blood units in inventory, with ongoing operations in Florida, Arizona, California, and Washington [171]. Research and Development - The company has expanded its R&D activities to develop technologies related to stem cells harvested from sources beyond umbilical cord blood [155]. - The company has entered into a Patent and Technology License Agreement with Duke University to explore treatments for conditions with limited FDA-approved therapies [156]. - Research, development, and related engineering expenses surged to $228,116 for the six months ended May 31, 2022, from $9,427 in the prior year, due to laboratory development costs [198]. - Research, development, and related engineering expenses rose significantly to $80,896 for the three months ended May 31, 2022, from $3,237 in 2021 [210]. Financial Performance - Revenue for the six months ended May 31, 2022, was $14,891,748, a 5.9% increase from $14,065,812 in the same period in 2021 [192]. - Revenue for the three months ended May 31, 2022, was $7,633,217, a 6% increase from $7,205,195 in the same period in 2021 [204]. - Processing and storage fee revenue increased by 6% in recurring annual storage fees, despite a slight decrease in new domestic cord blood specimens processed [194]. - Public cord blood banking revenue rose to $199,580 for the six months ended May 31, 2022, compared to $130,295 in the same period in 2021, driven by customer demand volatility [195]. Expenses and Costs - Selling, general and administrative expenses increased by 11% to $7,288,540 for the six months ended May 31, 2022, compared to $6,581,708 in 2021 [197]. - Selling, general and administrative expenses increased by 24% to $3,912,586 for the three months ended May 31, 2022, compared to $3,148,396 in 2021 [209]. - Cost of sales for the three months ended May 31, 2022, was $2,201,540, a 1% decrease from $2,222,671 in the same period in 2021 [208]. Facility and Capacity Expansion - The company is seeking a new facility to accommodate its storage needs and to offer services to third-party pharmaceutical companies and medical institutions [168]. - The Company entered into a $11.2 million purchase contract for a new facility in Durham, North Carolina, to expand storage capacity and introduce new services [180]. - The new facility is expected to enhance the Company's cryopreservation and cold storage business through the ExtraVault service, targeting biopharmaceutical companies and healthcare institutions [183]. Future Outlook and Investments - The company plans to open the Cryo-Cell Institute for Cellular Therapies and begin infusing patients with autologous cord blood units during the first half of fiscal 2023 [158]. - The company anticipates discretionary capital expenditures of approximately $14,000,000 over the next twelve months for software enhancements and equipment purchases [223]. - The company expects cash flows from operations to depend primarily on increasing revenues from sales of its umbilical cord blood and cord tissue cellular storage services [224]. Quality and Service Assurance - The company believes it offers the highest quality, highest value service targeted to a broad base of the market, aiming to maximize growth potential [163]. - The company utilizes a processing method that yields maximum recovery of healthy stem cells and provides superior red blood depletion [169]. - The company has a payment warranty that increased to $100,000 for new clients choosing its premium processing method if the product fails to engraft [169].