BioLife Solutions(BLFS) - 2023 Q4 - Annual Report

Financial Performance - Total revenue for the year ended December 31, 2023, was $143.3 million, a decrease of $18.5 million or 11% compared to $161.8 million in 2022[245]. - Product revenue from Freezer and thaw decreased by $16.1 million or 24% to $50.6 million in 2023, while Cell processing revenue decreased by $2.7 million or 4% to $65.8 million[245]. - The company reported a net loss of $66.4 million for the year ended December 31, 2023, with cash used in operating activities amounting to $12.5 million[259]. - Revenue concentration with one customer decreased to 16% in 2023 from 18% in 2022, indicating a more diversified customer base[278]. Expenses - General and administrative expenses increased by $8.1 million or 17% in 2023, primarily due to increased consulting fees related to strategic transactions[248]. - Sales and marketing expenses increased by $3.0 million, or 14%, in 2023, primarily due to increased stock compensation and advertising[280]. - Research and development expenses rose by $4.0 million, or 27%, in 2023, mainly due to increased stock-based compensation and scrapped materials for a future product[281]. Cash Flow and Liquidity - Cash and cash equivalents increased by $15.9 million or 82% to $35.4 million as of December 31, 2023, compared to $19.4 million in 2022[256]. - The company reported a net increase in cash and cash equivalents of $15.9 million in 2023, a significant improvement compared to a decrease of $50.3 million in 2022[290]. - Cash provided by financing activities was $10.6 million in 2023, primarily due to a private placement of $10.4 million[292]. - The company believes its liquidity requirements will be satisfied for at least the next twelve months through cash, cash equivalents, and credit lines[288]. Asset Impairment - The company recorded asset impairment charges of $15.5 million in the third quarter of 2023, compared to $69.9 million and $40.5 million in 2022[250]. - The Company recognized non-cash impairment charges totaling $15.5 million for definite-lived intangible assets as of September 30, 2023, including $9.7 million for property and equipment, $3.1 million for acquired technology, $0.2 million for customer relationships, and $2.5 million for tradename[319]. - The company experienced a non-cash impairment charge of $9.7 million on property and equipment and $5.8 million on definite-lived intangible assets due to market price decreases[318]. - The Company experienced a significant decline in market capitalization in 2022, leading to an interim quantitative impairment test for goodwill and intangible assets[321]. Strategic Plans and Transactions - The company plans to expand its cell and gene therapy tools and services business, focusing on sustaining product revenue and profits[265]. - The company is actively evaluating strategic transactions, including acquisitions of complementary products and technologies, which may require additional financing[266]. - The Sexton Merger had a fair value of net tangible assets acquired at approximately $4.1 million, with residual goodwill of approximately $28.5 million[267]. - The fair value of the net tangible assets acquired in the GCI Merger was $740,000, with residual goodwill of $137.8 million[300]. Fair Value and Currency Translation - The fair value of identifiable intangible assets is determined using an income approach, estimating after-tax cash flows and discounting them to present value[236]. - Fair value determinations are sensitive to changes in assumptions, with potential impairment risks for the Company's reporting unit and intangible assets if future growth rates and cash flows do not meet expectations[320]. - The month-end exchange rates indicated a decrease in translation of 2023 earnings into U.S. dollars by $150 million and a decrease in translation of net assets of foreign subsidiaries by $187 million[323]. - The company had U.S. federal net operating loss carryforwards of approximately $151.9 million as of December 31, 2023, with $39.2 million expiring from 2024 through 2037[243].