Cryoport, Inc. [CYRX] Filings

10-Q 1 cyrx-20220630x10q.htm 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______.

Commission File Number: 001-34632

CRYOPORT, INC.

(Exact Name of Registrant as Specified in its Charter)


Nevada	88-0313393
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

112 Westwood Place, Suite 350

Brentwood, TN 37027

(Address of principal executive offices, including zip code)

(949) 470-2300

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:		Trading Symbol(s)		Name of each exchange on which registered:
Common Stock, $0.001 par value		CYRX		The Nasdaq Stock Market LLC (The Nasdaq Capital Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of July 29, 2022 there were 48,489,803 shares of the registrant’s common stock outstanding.

Table of Contents

TABLE OF CONTENTS


	Page

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

Condensed Consolidated Balance Sheets at June 30, 2022 (Unaudited) and December 31, 2021	3

Unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021	4

Unaudited Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2022 and 2021	5

Unaudited Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2022 and 2021	6

Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021	7

Notes to Condensed Consolidated Financial Statements (Unaudited)	8

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	37

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk	51

ITEM 4. Controls and Procedures	51

PART II. OTHER INFORMATION	52

ITEM 1. Legal Proceedings	52

ITEM 1A. Risk Factors	52

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds	54

ITEM 3. Defaults Upon Senior Securities	55

ITEM 4. Mine Safety Disclosures	55

ITEM 5. Other Information	55

ITEM 6. Exhibits	55

SIGNATURES	56

Table of Contents

Cryoport, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except share data)


	June 30,		December 31,
	2022		2021
	(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	37,034	$	139,101
Short-term investments		513,584		489,698
Accounts receivable, net		43,903		39,412
Inventories		23,070		16,501
Prepaid expenses and other current assets		8,250		8,804
Total current assets		625,841		693,516
Property and equipment, net		54,011		49,029
Operating lease right-of-use assets		22,740		20,675
Intangible assets, net		196,013		201,427
Goodwill		145,201		146,954
Deposits		926		950
Deferred tax asset		1,597		419
Total assets	$	1,046,329	$	1,112,970

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable and other accrued expenses	$	31,086	$	28,583
Accrued compensation and related expenses		8,354		9,912
Deferred revenue		818		547
Operating lease liabilities		2,656		3,542
Current portion of notes payable		1,079		—
Other liabilities		53		61
Total current liabilities		44,046		42,645
Convertible senior notes, net		405,436		404,171
Notes payable, net		374		1,086
Operating lease liabilities, net of current portion		21,106		18,144
Deferred tax liability		3,745		4,018
Other long-term liabilities		378		349
Contingent consideration		2,820		729
Total liabilities		477,905		471,142

Commitments and contingencies
Stockholders’ Equity:
Preferred stock, $0.001 par value; 2,500,000 shares authorized:
Class A convertible preferred stock — $0.001 par value; 800,000 shares authorized; none issued and outstanding		—		—
Class B convertible preferred stock — $0.001 par value; 585,000 shares authorized; none issued and outstanding		—		—
Class C convertible preferred stock, $0.001 par value; 250,000 shares authorized; 200,000 issued and outstanding		14,275		10,275
Common stock, $0.001 par value; 100,000,000 shares authorized; 48,482,502 and 49,616,154 issued and outstanding at June 30, 2022 and December 31, 2021, respectively		49		50
Additional paid-in capital		1,081,747		1,100,287
Accumulated deficit		(498,471)		(467,541)
Accumulated other comprehensive loss		(29,176)		(1,243)
Total stockholders’ equity		568,424		641,828
Total liabilities and stockholders’ equity	$	1,046,329	$	1,112,970

See accompanying notes to condensed consolidated financial statements.

Table of Contents

Cryoport, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(in thousands, except share and per share data)

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Service revenues	$	34,585	$	29,679	$	67,495	$	56,443
Product revenues		29,568		26,512		48,960		53,032
Total revenues		64,153		56,191		116,455		109,475

Cost of service revenues		19,111		16,742		37,829		32,294
Cost of product revenues		16,204		14,047		27,447		27,229
Total cost of revenues		35,315		30,789		65,276		59,523
Gross margin		28,838		25,402		51,179		49,952

Operating costs and expenses:
Selling, general and administrative		30,563		24,688		57,185		46,076
Engineering and development		3,522		4,462		7,060		8,766
Total operating costs and expenses		34,085		29,150		64,245		54,842

Loss from operations		(5,247)		(3,748)		(13,066)		(4,890)
Other income (expense):
Investment income		2,048		368		3,312		766
Interest expense		(1,586)		(1,164)		(3,077)		(2,373)
Other expense, net		(4,028)		(346)		(9,045)		(881)
Total other expense, net		(3,566)		(1,142)		(8,810)		(2,488)
Loss before provision for income taxes		(8,813)		(4,890)		(21,876)		(7,378)
Provision for income taxes		(364)		(499)		(705)		(1,538)
Net loss	$	(9,177)	$	(5,389)	$	(22,581)	$	(8,916)
Paid-in-kind dividend on Series C convertible preferred stock		(2,000)		(2,000)		(4,000)		(4,196)
Net loss attributable to common stockholders	$	(11,177)	$	(7,389)	$	(26,581)	$	(13,112)
Net loss per share - basic and diluted	$	(0.23)	$	(0.16)	$	(0.54)	$	(0.29)
Weighted average shares outstanding – basic and diluted		48,792,559		45,757,532		49,467,691		44,786,403

Table of Contents

Cryoport, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Loss

(in thousands)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net loss	$	(9,177)	$	(5,389)	$	(22,581)	$	(8,916)
Other comprehensive loss, net of tax:
Net unrealized loss on available-for-sale debt securities		(5,310)		(432)		(19,374)		(1,178)
Reclassification of realized loss on available-for-sale debt securities to earnings		14		8		46		38
Foreign currency translation adjustments		(7,558)		644		(8,605)		(3,136)
Other comprehensive income (loss)		(12,854)		220		(27,933)		(4,276)
Total comprehensive loss	$	(22,031)	$	(5,169)	$	(50,514)	$	(13,192)

Table of Contents

Cryoport, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands, except share data)


																	Other
	Class A			Class B			Class C										Comprehensive		Total
	Preferred Stock			Preferred Stock			Preferred Stock			Common Stock			Additional		Accumulated		Income		Stockholders’
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Paid–In Capital		Deficit		(Loss)		Equity (Deficit)
Balance at March 31, 2021	—		—	—		—	200,000		4,275	45,693,692		45		837,615		(195,540)		880		647,275
Net loss	—		—	—		—	—		—	—		—		—		(5,389)		—		(5,389)
Other comprehensive loss, net of taxes	—		—	—		—	—		—	—		—		—		—		220		220
Stock-based compensation expense	—		—	—		—	—		—	—		—		4,025		—		—		4,025
Paid-in-kind preferred stock dividend, including beneficial conversion feature	—		—	—		—	—		2,000	—		—		(2,000)		—		—		—
Proceeds from exercise of stock options	—		—	—		—	—		—	198,756		1		1,897		—		—		1,898
Balance at June 30, 2021	—	$	—	—	$	—	200,000	$	6,275	45,892,448	$	46	$	841,537	$	(200,929)	$	1,100	$	648,029

Balance at March 31, 2022	—		—	—		—	200,000		12,275	49,453,307		50		1,102,725		(489,294)		(16,322)		609,434
Net loss	—		—	—		—	—		—	—		—		—		(9,177)		—		(9,177)
Other comprehensive loss, net of taxes	—		—	—		—	—		—	—		—		—		—		(12,854)		(12,854)
Stock-based compensation expense	—		—	—		—	—		—	—		—		5,258		—		—		5,258
Issuance of common stock for Cell&Co acquisition	—		—	—		—	—		—	15,152		—		479		—		—		479
Paid-in-kind preferred stock dividend	—		—	—		—	—		2,000	—		—		(2,000)		—		—		—
Repurchase of common stock	—		—	—		—	—		—	(1,035,271)		(1)		(24,999)		—		—		(25,000)
Vesting of restricted stock units	—		—	—		—	—		—	22,517		—		—		—		—		—
Proceeds from exercise of stock options	—		—	—		—	—		—	26,797		—		284		—		—		284
Balance at June 30, 2022	—	$	—	—	$	—	200,000	$	14,275	48,482,502	$	49	$	1,081,747	$	(498,471)	$	(29,176)	$	568,424

Balance at December 31, 2020	—		—	—		—	250,000		2,844	39,837,058		40		566,451		(192,013)		5,376		382,698
Net loss	—		—	—		—	—		—	—		—		—		(8,916)		—		(8,916)
Other comprehensive loss, net of taxes	—		—	—		—	—		—	—		—		—		—		(4,276)		(4,276)
Stock-based compensation expense	—		—	—		—	—		—	—		—		7,003		—		—		7,003
Issuance of common stock for board of director compensation	—		—	—		—	—		—	229		—		11		—		—		11
Cost of Series C preferred stock conversion	—		—	—		—	—		—	—		—		(1,800)		—		—		(1,800)
Issuance of common stock in public offering, net of costs of $17.7 million	—		—	—		—	—		—	4,356,059		4		269,821		—		—		269,825
Conversion of Series C preferred shares to common stock	—		—	—		—	(50,000)		(765)	1,312,860		1		764		—		—		—
Paid-in-kind preferred stock dividend, including beneficial conversion feature	—		—	—		—	—		4,196	—		—		(4,196)		—		—		—
Proceeds from exercise of stock options and warrants	—		—	—		—	—		—	386,242		1		3,483		—		—		3,484
Balance at June 30, 2021	—	$	—	—	$	—	200,000	$	6,275	45,892,448	$	46	$	841,537	$	(200,929)	$	1,100	$	648,029

Balance at December 31, 2021	—		—	—		—	200,000		10,275	49,616,154		50		1,100,287		(467,541)		(1,243)		641,828
Net loss	—		—	—		—	—		—	—		—		—		(22,581)		—		(22,581)
Other comprehensive loss, net of taxes	—		—	—		—	—		—	—		—		—		—		(27,933)		(27,933)
Stock-based compensation expense	—		—	—		—	—		—	—		—		9,383		—		—		9,383
Paid-in-kind preferred stock dividend	—		—	—		—	—		4,000	—		—		(4,000)		—		—		—
Issuance of common stock for Cell&Co acquisition	—		—	—		—	—		—	15,152		—		479		—		—		479
Repurchase of common stock	—		—	—		—	—		—	(1,341,571)		(1)		(24,999)		(8,349)		—		(33,349)
Vesting of restricted stock units	—		—	—		—	—		—	80,912		—		—		—		—		—
Proceeds from exercise of stock options	—		—	—		—	—		—	111,855		—		597		—		—		597
Balance at June 30, 2022	—	$	—	—	$	—	200,000	$	14,275	48,482,502	$	49	$	1,081,747	$	(498,471)	$	(29,176)	$	568,424

See accompanying notes to condensed consolidated financial statements.

Table of Contents

Cryoport, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(unaudited, in thousands)


	For the Six Months Ended
	June 30,
	2022		2021
Cash Flows From Operating Activities:
Net loss	$	(22,581)	$	(8,916)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		10,845		9,787
Amortization of debt discount		1,286		496
Unrealized loss on investments in equity securities		8,556		156
Realized loss on available-for-sale investments		80		85
Stock-based compensation expense		9,383		7,015
Loss on disposal of property and equipment		304		113
Provision for bad debt		35		215
Excess and obsolete inventory		546		—
Insurance proceeds for operations		6,311		—
Changes in operating assets and liabilities:
Accounts receivable		(4,291)		(5,590)
Inventories		(9,476)		(1,138)
Prepaid expenses and other current assets		(1,043)		(512)
Deposits		27		230
Change in operating lease right-of-use assets and lease liabilities		27

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10-K	[2021-03-01]
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10-Q	[2020-08-10]
10-Q	[2020-05-08]
10-K	[2020-03-10]
10-Q	[2019-11-12]
10-Q	[2019-08-09]
10-Q	[2019-05-09]
10-K	[2019-03-13]
10-Q	[2018-11-08]
10-Q	[2018-08-09]
10-Q	[2018-05-03]
10-K	[2018-03-08]
10-Q	[2017-11-02]
10-Q	[2017-08-09]
10-Q	[2017-05-04]
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S-1	[2016-06-30]
10-K	[2016-06-28]
S-1	[2016-04-28]
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10-Q	[2015-08-06]
10-K	[2015-05-19]
S-1	[2015-03-25]
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10-Q	[2014-11-12]
10-Q	[2014-07-31]
10-K	[2014-06-25]
10-Q	[2014-02-13]
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