Cryo-Cell International(CCEL) - 2022 Q4 - Annual Report

Financial Performance - For the fiscal year ended November 30, 2022, processing and storage fees were $29,771,123, a 4.8% increase from $28,397,401 in 2021, driven by a 6% increase in recurring annual storage fee revenue despite a 6% decrease in new domestic cord blood specimens processed [101]. - Revenue from public cord blood banking sales for the twelve months ended November 30, 2022, was $461,626, up 22.7% from $376,101 in 2021 [102]. - For the fiscal year ended November 30, 2022, the Company reported revenue of $30,336,749, representing a 5% increase from $28,884,902 in the previous fiscal year [114]. Expenses and Costs - Research, development, and related engineering expenses increased significantly to $384,789 in 2022 from $49,870 in 2021, primarily due to costs associated with developing a manufacturing laboratory [103]. - Selling, general and administrative expenses increased by 7% to $15,580,274 for the fiscal year ended November 30, 2022, compared to $14,610,200 in the prior year [116]. - Interest expense for the fiscal year ended November 30, 2022, was $1,521,767, up from $1,378,926 in fiscal 2021 [118]. Cash Flow and Financing - Cash and cash equivalents decreased to $1,703,958 as of November 30, 2022, from $8,263,088 a year earlier, primarily due to significant cash used in investing activities [122]. - The Company plans to fund future operations and capital expenditures through cash-on-hand, cash flows, and potential additional debt financing [109]. - The Company entered into a Credit Agreement with Susser Bank for a revolving credit facility of up to $10,000,000 and a term loan facility of $8,960,000 [107]. Business Operations and Growth - The company currently stores nearly 225,000 cord blood and cord tissue specimens for newborns and their families, having been the first private cord blood bank to separate and store stem cells in 1992 [97]. - The company anticipates that the new facility, ExtraVault, will expand its cryopreservation and cold storage business, leveraging over 30 years of experience in handling biological specimens [88]. - The company introduced its advanced cord tissue service in August 2011, which stores a section of umbilical cord tissue, a rich source of mesenchymal stem cells (MSCs) with potential applications in regenerative medicine [86]. - The company is projecting to open the Cryo-Cell Institute for Cellular Therapies and begin infusing patients during fiscal 2024, despite equipment delivery delays [99]. - The Company has exclusive commercial rights to proprietary processes and regulatory data related to cord blood and cord tissue from Duke University, aiming to expand its core business units [111]. - The Company expects cash flows from operations to depend on increasing revenues from umbilical cord blood and tissue storage services and managing discretionary expenses [123]. - The Company has entered into licensing agreements in various international markets, which may impact future revenue if payment issues arise [136]. Fair Value Changes - The change in the fair value of contingent consideration for the fiscal year ended November 30, 2022, was an increase of $435,333 compared to a decrease of $782,481 in 2021 [104]. - The gain on the change in the fair value of a derivative for the fiscal year ended November 30, 2022, was $446,200, based on prevailing market data [105]. - The Company recorded a gain of $446,200 on the termination of an interest rate swap agreement for the fiscal year ended November 30, 2022 [108].