Company Quick10K Filing
Cryoport
Price16.88 EPS-1
Shares36 P/E-31
MCap605 P/FCF-293
Net Debt-94 EBIT-19
TEV512 TEV/EBIT-27
TTM 2019-09-30, in MM, except price, ratios
10-Q 2021-03-31 Filed 2021-05-06
10-K 2020-12-31 Filed 2021-03-01
10-Q 2020-09-30 Filed 2020-11-06
10-Q 2020-06-30 Filed 2020-08-10
10-Q 2020-03-31 Filed 2020-05-08
10-K 2019-12-31 Filed 2020-03-10
10-Q 2019-09-30 Filed 2019-11-12
10-Q 2019-06-30 Filed 2019-08-09
10-Q 2019-03-31 Filed 2019-05-09
10-K 2018-12-31 Filed 2019-03-13
10-Q 2018-09-30 Filed 2018-11-08
10-Q 2018-06-30 Filed 2018-08-09
10-Q 2018-03-31 Filed 2018-05-03
10-K 2017-12-31 Filed 2018-03-08
10-Q 2017-09-30 Filed 2017-11-02
10-Q 2017-06-30 Filed 2017-08-09
10-Q 2017-03-31 Filed 2017-05-04
10-Q 2016-09-30 Filed 2016-11-14
10-Q 2016-06-30 Filed 2016-08-15
10-K 2016-03-31 Filed 2016-06-28
10-Q 2015-12-31 Filed 2016-02-11
10-Q 2015-09-30 Filed 2015-11-16
10-Q 2015-06-30 Filed 2015-08-06
10-K 2015-03-31 Filed 2015-05-19
10-Q 2014-12-31 Filed 2015-02-05
10-Q 2014-09-30 Filed 2014-11-12
10-Q 2014-06-30 Filed 2014-07-31
10-K 2014-03-31 Filed 2014-06-25
10-Q 2013-12-31 Filed 2014-02-13
10-Q 2013-09-30 Filed 2013-11-18
10-Q 2013-06-30 Filed 2013-08-14
10-K 2013-03-31 Filed 2013-06-25
10-Q 2012-12-31 Filed 2013-02-14
10-Q 2012-09-30 Filed 2012-11-09
10-Q 2012-06-30 Filed 2012-08-14
10-K 2012-03-31 Filed 2012-06-27
10-Q 2011-12-31 Filed 2012-02-21
10-Q 2011-09-30 Filed 2011-11-14
10-Q 2011-06-30 Filed 2011-08-15
10-K 2011-03-31 Filed 2011-06-27
10-Q 2010-12-31 Filed 2011-02-22
10-Q 2010-09-30 Filed 2010-11-09
10-Q 2010-06-30 Filed 2010-08-23
10-K 2010-03-31 Filed 2010-06-22
10-Q 2009-12-31 Filed 2010-02-16
8-K 2021-02-05
8-K 2021-01-20
8-K 2021-01-19
8-K 2021-01-19
8-K 2021-01-13
8-K 2020-11-05
8-K 2020-10-01
8-K 2020-08-24
8-K 2020-08-21
8-K 2020-08-06
8-K 2020-05-26
8-K 2020-05-19
8-K 2020-05-07
8-K 2020-05-01
8-K 2020-03-05
8-K 2020-01-09
8-K 2019-12-14
8-K 2019-11-07
8-K 2019-10-28
8-K 2019-10-09
8-K 2019-08-15
8-K 2019-08-08
8-K 2019-07-09
8-K 2019-06-19
8-K 2019-05-14
8-K 2019-05-02
8-K 2019-05-02
8-K 2019-03-07
8-K 2019-01-04
8-K 2018-12-14
8-K 2018-08-24
8-K 2018-05-17
8-K 2018-03-28
8-K 2018-03-06
8-K 2018-02-08
8-K 2018-01-02

CYRX 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements
Note 1. Management's Representation and Basis of Presentation
Note 2. Nature of The Business
Note 3. Summary of Significant Accounting Policies
Note 4. Acquisitions
Note 5. Cash, Cash Equivalents and Short - Term Investments
Note 6. Fair Value Measurements
Note 7. Inventory
Note 8. Goodwill and Intangible Assets
Note 9. Convertible Senior Notes
Note 10. Note Payable
Note 11. Leases
Note 12. Commitments and Contingencies
Note 13. Stockholders' Equity
Note 14. Stock - Based Compensation
Note 15. Subsequent Event
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A.Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 cyrx-20210331xex31d1.htm
EX-31.2 cyrx-20210331xex31d2.htm
EX-32.1 cyrx-20210331xex32d1.htm

Cryoport Earnings 2021-03-31

Balance SheetIncome StatementCash Flow
140111825425-32012201420172020
Assets, Equity
10.05.00.0-5.0-10.0-15.02012201420172020
Rev, G Profit, Net Income
7552296-17-402012201420172020
Ops, Inv, Fin

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Table of Contents

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 March 31, 2021

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

Graphic

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)

(949470-2300

(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 April 23, 2021 there were 45,681,456 shares of the registrant’s common stock outstanding.

Table of Contents

TABLE OF CONTENTS

 

Page

PART I. FINANCIAL INFORMATION

3

ITEM 1. Financial Statements

3

Condensed Consolidated Balance Sheets at March 31, 2021 (Unaudited) and December 31, 2020

3

Unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2021 and 2020

4

Unaudited Condensed Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2021 and 2020

5

Unaudited Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2021 and 2020

6

Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020

7

Notes to Condensed Consolidated Financial Statements (Unaudited)

8

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

33

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk

41

ITEM 4. Controls and Procedures

42

PART II. OTHER INFORMATION

43

ITEM 1. Legal Proceedings

43

ITEM 1A. Risk Factors

43

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

43

ITEM 3. Defaults Upon Senior Securities

43

ITEM 4. Mine Safety Disclosures

43

ITEM 5. Other Information

43

ITEM 6. Exhibits

44

SIGNATURES

45

2

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

Cryoport, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except share data)

March 31, 

December 31, 

2021

    

2020

(unaudited)

ASSETS

Current Assets:

  

  

Cash and cash equivalents

$

85,494

$

36,873

Short-term investments

 

267,721

 

56,444

Accounts receivable, net

 

36,504

 

31,377

Inventories

 

11,544

 

10,535

Prepaid expenses and other current assets

 

18,485

 

11,928

Total current assets

 

419,748

 

147,157

Property and equipment, net

 

31,694

30,036

Operating lease right-of-use assets

15,996

14,044

Intangible assets, net

 

209,267

213,908

Goodwill

141,305

145,282

Deposits

 

946

1,184

Other long-term assets

752

794

Total assets

$

819,708

$

552,405

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

  

 

  

Current Liabilities:

 

  

 

  

Accounts payable and other accrued expenses

$

27,083

$

24,844

Accrued compensation and related expenses

 

8,233

7,441

Deferred revenue

 

495

445

Operating lease liabilities

2,002

2,231

Finance lease liabilities

 

60

59

Total current liabilities

 

37,873

 

35,020

Convertible senior notes, net of discount of $3.5 million and $3.7 million, respectively

 

111,536

 

111,344

Note payable, net of discount of $1.2 million and $0, respectively

3,497

4,912

Operating lease liabilities, net of current portion

14,502

12,261

Finance lease liabilities, net of current portion

92

112

Deferred tax liability

4,626

5,882

Other long-term liabilities

307

176

Total liabilities

 

172,433

 

169,707

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

4,275

2,844

Common stock, $0.001 par value; 100,000,000 shares authorized; 45,693,692 and 39,837,058 issued and outstanding at March 31, 2021 and December 31, 2020, respectively

45

40

Additional paid-in capital

 

837,615

 

566,451

Accumulated deficit

 

(195,540)

 

(192,013)

Accumulated other comprehensive income

 

880

 

5,376

Total stockholders’ equity

 

647,275

 

382,698

Total liabilities and stockholders’ equity

$

819,708

$

552,405

See accompanying notes to condensed consolidated financial statements.

3

Table of Contents

Cryoport, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(in thousands, except share and per share data)

(unaudited)

Three Months Ended

March 31, 

    

2021

    

2020

    

Service revenues

$

26,765

$

9,774

Product revenues

26,519

Total revenues

53,284

9,774

Cost of service revenues

15,552

4,516

Cost of product revenues

 

13,182

 

Total cost of revenues

28,734

4,516

Gross margin

 

24,550

 

5,258

 

  

 

  

Operating costs and expenses:

 

  

 

  

Selling, general and administrative

 

21,388

 

7,111

Engineering and development

 

4,304

 

1,733

Total operating costs and expenses

 

25,692

 

8,844

 

 

Loss from operations

 

(1,142)

 

(3,586)

Other income (expense):

 

  

 

  

Investment income

398

307

Interest expense

 

(1,210)

 

(2)

Other expense, net

 

(535)

 

(628)

Total other expense, net

(1,347)

 

(323)

Loss before provision for income taxes

 

(2,489)

 

(3,909)

Provision for income taxes

 

(1,038)

 

(33)

Net loss

$

(3,527)

$

(3,942)

Paid-in-kind dividend on Series C convertible preferred stock

(2,196)

Net loss attributable to common stockholders

$

(5,723)

$

(3,942)

Net loss per share attributable to common stockholders – basic and diluted

$

(0.13)

$

(0.11)

Weighted average common shares outstanding – basic and diluted

 

43,804,483

 

37,548,549

See accompanying notes to condensed consolidated financial statements.

4

Table of Contents

Cryoport, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Loss

(in thousands)

For the Three Months Ended

March 31, 

    

2021

    

2020

Net loss

$

(3,527)

$

(3,942)

Other comprehensive income (loss), net of tax:

 

  

 

  

Net unrealized gain (loss) on available-for-sale debt securities

 

(768)

 

471

Reclassification of realized (gain) loss on available-for-sale debt securities to earnings

30

(1)

Foreign currency translation adjustments

 

(3,758)

 

(2)

Other comprehensive income (loss)

 

(4,496)

 

468

Total comprehensive loss

$

(8,023)

$

(3,474)

5

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 December 31, 2019

 

$

 

$

$

 

37,339,787

$

37

$

285,609

$

(159,320)

$

(45)

$

126,281

Net loss

 

 

 

 

 

 

 

 

 

(3,942)

 

 

(3,942)

Other comprehensive income, net of taxes

 

 

 

 

 

 

 

 

 

 

468

 

468

Stock-based compensation expense

 

 

 

 

 

 

 

 

1,600

 

 

 

1,600

Issuance of common stock for board of director compensation

 

 

 

 

 

 

1,269

 

 

21

 

 

 

21

Proceeds from exercise of common stock options and warrants

 

 

 

 

 

 

589,199

 

1

 

2,877

 

 

 

2,878

Balance at March 31, 2020

$

$

$

37,930,255

$

38

$

290,107

$

(163,262)

$

423

$

127,306

Balance at December 31, 2020

 

 

250,000

2,844

 

39,837,058

40

566,451

(192,013)

5,376

382,698

Net loss

 

 

 

 

 

 

 

 

 

(3,527)

 

 

(3,527)

Other comprehensive loss, net of taxes

(4,496)

(4,496)

Stock-based compensation expense

 

 

 

 

 

 

 

 

2,979

 

 

 

2,979

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

2,196

(2,196)

Proceeds from exercise of stock options and warrants

 

 

 

 

 

 

187,486

 

 

1,585

 

 

 

1,585

Balance at March 31, 2021

 

$

 

$

200,000

$

4,275

 

45,693,692

$

45

$

837,615

$

(195,540)

$

880

$

647,275

See accompanying notes to condensed consolidated financial statements.

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Table of Contents

Cryoport, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(unaudited, in thousands)

For the Three Months Ended

March 31, 

    

2021

    

2020

Cash Flows From Operating Activities:

 

  

 

  

Net loss

$

(3,527)

$

(3,942)

Adjustments to reconcile net loss to net cash used in operating activities:

 

  

 

Depreciation and amortization

 

4,837

 

824

Amortization of debt discount

 

264

 

Unrealized loss (gain) on investments in equity securities

 

263

 

(144)

Realized loss on investments in equity securities

793

Realized loss (gain) on available-for-sale investments

40

(11)

Stock-based compensation expense

 

2,990

 

1,620

Loss on disposal of property and equipment

 

71

 

80

Provision for bad debt

 

63

 

4

Changes in operating assets and liabilities:

Accounts receivable

 

(5,213)

 

955

Inventories

 

(988)

 

9

Prepaid expenses and other current assets

 

(6,545)

 

95

Deposits

 

229

 

(46)

Change in operating lease right-of-use assets and lease liabilities

60

7

Accounts payable and other accrued expenses

 

532

 

65

Accrued compensation and related expenses

 

804

 

768

Deferred revenue

 

49

 

(27)

Deferred tax liability

80

9

Net cash provided by (used in) operating activities

 

(5,991)

 

1,059

 

  

 

Cash Flows From Investing Activities:

 

  

 

Purchases of property and equipment

 

(2,811)

 

(596)

Software development costs

 

(193)

 

Purchases of short-term investments

(215,318)

(16,195)

Sales/maturities of short-term investments

 

3,000

 

16,279

Patent and trademark costs

(48)

(30)

Net cash used in investing activities

 

(215,370)

 

(542)

 

  

 

Cash Flows From Financing Activities:

 

  

 

Proceeds from exercise of stock options and warrants

 

1,586

 

2,878

Proceeds from public offering, net of $17.7 million in offering costs

269,825

Repayment of finance lease liabilities

(18)

(14)

Net cash provided by financing activities

 

271,393

 

2,864

 

 

Effect of exchange rates on cash and cash equivalents

 

(1,411)

 

7

Net change in cash and cash equivalents

48,621

 

3,388

Cash and cash equivalents — beginning of period

 

36,873

 

47,234

Cash and cash equivalents — end of period

$

85,494

$

50,622

Supplemental Disclosure of Non-Cash Financing Activities:

Conversion of Series C Preferred Stock to common stock

$

765

$

Cost of Series C Preferred stock conversion included in additional paid-in-capital and accounts payable and accrued liabilities

$

1,800

$

CRYOPDP goodwill adjustment included in deferred tax liability

$

1,394

$

CRYOPDP goodwill adjustment included in fixed assets

$

71

$

Note valuation adjustment included in note payable and goodwill

$

1,266

$

Net unrealized gain on available-for-sale securities

$

768

$

471

Reclassification of realized gain on available-for-sale debt securities to earnings

$

30

$

Purchase of equipment through capital lease obligations

$

$

203

Fixed assets included in accounts payable and accrued liabilities

$

198

$

608

See accompanying notes to condensed consolidated financial statements.

7

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Cryoport, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

For the Three Months Ended March 31, 2021 and 2020

(Unaudited)

Note 1. Management’s Representation and Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared by Cryoport, Inc. (the “Company”, “Cryoport”, “our” or “we”) in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statement presentation. However, the Company believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (consisting primarily of normal recurring accruals) considered necessary for a fair presentation have been included.

Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

The Company has evaluated subsequent events through the date of this filing and determined that no subsequent events have occurred that would require recognition in the unaudited condensed consolidated financial statements or disclosure in the notes thereto other than as disclosed in the accompanying notes.

Note 2. Nature of the Business

Cryoport is a life sciences services company that is an integral part of the temperature-controlled supply chain supporting the biopharma/pharma, animal health, and reproductive medicine markets. We are redefining logistics for the life sciences industry by providing a unique platform of critical solutions including highly differentiated temperature-controlled supply chain solutions, which include advanced packaging, informatics, specialty logistics services, biostorage services and cryogenic life sciences equipment. Through our products, services and expertise, we enable our clients to ship, store and deliver cellular-based materials and drug products as well as other life sciences commodities in a precise, defined temperature-controlled state.

Cryoport’s advanced platform, comprised of comprehensive and technology-centric systems and solutions are designed to support the global high-volume distribution of commercial biologic and cell-based products and therapies regulated by the United States Food and Drug Administration (FDA) and other international regulatory bodies for distribution in the Americas, EMEA (Europe, the Middle East, and Africa) and APAC (Asia-Pacific) regions. Cryoport’s solutions are also designed to support pre-clinical, clinical trials, Biologics License Applications (BLA), Investigational New Drug Applications (IND), New Drug Applications (NDA) and Commercialized Products with the FDA, as well as global clinical trials and commercialized products initiated in other countries, where strict regulatory compliance and quality assurance is mandated. Our industry standard setting Chain of ComplianceTM solutions, which include vital analytics, such as ‘chain-of-condition’ and ‘chain-of-custody’ information in a single data stream, empower our clients’ continuous vigilance over their respective commodities. In addition, our Chain of ComplianceTM standard ensures full traceability of all equipment used and the processes employed, further supporting each client’s goal of minimizing risk and maximizing success of their respective biologics or other products and therapies as they are introduced into the global markets.

On August 21, 2020, the Company entered into a Securities Purchase Agreement to acquire CRYOPDP, a leading global provider of innovative temperature-controlled logistics solutions to the clinical research, pharmaceutical and cell and gene therapy markets, headquartered in Paris, France. Under the terms of the Securities Purchase Agreement, the Company acquired 100% of the equity interests in Advanced Therapy Logistics and Solutions, a company organized under the laws of France, which is the holding company that owns CRYOPDP (the “CRYOPDP Acquisition”). The purchase price under the Securities Purchase Agreement was €49 million (approximately $58.0 million).

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On August 24, 2020, the Company entered into a Purchase Agreement with Chart Industries, Inc. (“Chart”) pursuant to which the Company acquired Chart’s MVE Biological Solutions’ cryobiological storage business (the “MVE Acquisition”) for a cash purchase price at closing of $320 million, subject to customary closing working capital and other adjustments. The MVE Acquisition was structured as the acquisition of certain equity interests and assets and the transfer of certain liabilities in connection therewith.

On October 1, 2020, the Company completed both the MVE Acquisition and the CRYOPDP Acquisition.

The Company is a Nevada corporation and its common stock is traded on the NASDAQ Capital Market exchange under the ticker symbol “CYRX.”

Note 3. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Cryoport, Inc. and its wholly-owned subsidiaries, Cryoport Systems, LLC, Cryogene, Inc., MVE Biological Solutions US LLC, and Cryoport Netherlands B.V. and subsidiaries (collectively, the “Company”). All intercompany accounts and transactions have been eliminated.

Cash and Cash Equivalents

Our cash and cash equivalents represent demand deposits, and money market funds which are readily convertible into cash, have maturities of 90 days or less when purchased and are considered highly liquid and easily tradeable.

Short-Term Investments

Our investments in equity securities consist of mutual funds with readily determinable fair values which are carried at fair value with changes in fair value recognized in earnings.

Investments in debt securities are classified as available-for-sale and are carried at fair value, with unrealized gains and losses, net of tax, reported as accumulated other comprehensive income (loss) and included as a separate component of stockholders’ equity.

Gains and losses are recognized when realized. When we have determined that an other than temporary decline in fair value has occurred, the amount related to a credit loss is recognized in earnings. Gains and losses are determined using the specific identification method.

Short-term investments are classified as current assets even though maturities may extend beyond one year because they represent investments of cash available for operations.

Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from estimated amounts. The Company’s significant estimates include the allowance for doubtful accounts, fair value of short-term investments, valuations and purchase price allocations related to business combinations, expected future cash flows including growth rates, discount rates, terminal values and other assumptions and estimates used to evaluate the recoverability of long-lived assets, estimated fair values of intangible assets and goodwill, intangible asset useful lives and amortization methods, allowance for inventory obsolescence, equity-based instruments, tax reserves and recoverability of the Company’s net deferred tax assets and related valuation allowance.

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Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances.

Future events, including the extent and the duration of the COVID-19 related economic impacts, and their effects cannot be predicted with certainty, and, accordingly the Company’s accounting estimates require the exercise of judgment.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, short-term investments, accounts receivable, accounts payable and accrued expenses, finance lease liabilities, note payable, and the Company’s 3.00% convertible senior notes due in 2025 (the “Senior Notes”). The carrying value for all such instruments, except finance lease liabilities, note payable and the Senior Notes, approximates fair value at March 31, 2021 and December 31, 2020 due to their short-term nature. The carrying value of finance lease liabilities approximates fair value because the interest rate approximates market rates available to us for similar obligations with the same maturities. For additional information related to fair value measurements, including the note payable and the Senior Notes, see Notes 9 and 10.

Concentrations of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash, cash equivalents and short-term investments. From time to time, we maintain cash, cash equivalent and short-term investment balances in excess of amounts insured by the Federal Deposit Insurance Corporation (“FDIC”) and the Securities Investor Protection Corporation (“SIPC”).  Primarily all of our cash, cash equivalents and short-term investments at March 31, 2021 were in excess of amounts insured by the FDIC and SIPC.  The Company performs ongoing evaluations of these institutions to limit its concentration risk exposure.  We manage such risks in our portfolio by investing in highly liquid, highly-rated instruments, and limit investing in long-term maturity instruments.

Our investment policy requires that purchased instruments in marketable securities may only be in highly-rated instruments, which are primarily U.S. Treasury bills or treasury-backed securities, and also limits our investment in securities of any single issuer.

Customers

The Company grants credit to customers within the U.S. and international customers and does not require collateral. Revenues from international customers are generally secured by advance payments except for established foreign customers. The Company generally requires advance or credit card payments for initial revenues from new customers. The Company’s ability to collect receivables can be affected by economic fluctuations in the geographic areas and industries served by the Company. Reserves for uncollectible amounts are provided based on past experience and a specific analysis of the accounts, which management believes to be sufficient. Accounts receivable at March 31, 2021 and December 31, 2020 are net of reserves for doubtful accounts of $1.2 million and $1.1 million, respectively. Although the Company expects to collect amounts due, actual collections may differ from the estimated amounts. The Company maintains reserves for bad debt and such losses, in the aggregate, historically have not exceeded its estimates.

The Company’s customers are in the biopharma, pharmaceutical, animal health, reproductive medicine and other life science industries. Consequently, there is a concentration of accounts receivable within these industries, which is subject to normal credit risk. At March 31, 2021, there was one customer that accounted for 10.5% of net accounts receivable. At December 31, 2020, there were no customers that accounted for more than 10% of net accounts receivable. There were no other single customers that owed us more than 10% of net accounts receivable at March 31, 2021 and December 31, 2020.

The Company has revenue from foreign customers primarily in United Kingdom, Switzerland, France, Netherlands, Singapore, China and India. During the three months ended March 31, 2021 and 2020, the Company had revenues from foreign customers of approximately $25.5 million and $2.1 million, respectively, which constituted approximately 48.0% and 21.4%, respectively, of total revenues. There was one customer that accounted for 12.5% of revenues during the three months ended March 31, 2021. There were three customers that accounted for 17.9%, 16.7% and 10.8% of revenues during the three months ended March 31, 2020, respectively. No other single customer generated over 10% of revenues during the three months ended March 31, 2021 and 2020.

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Inventories

Inventories are stated at the lower of cost and net realizable value. Cost is determined using the first-in, first-out (“FIFO”) method. Inventories are reviewed periodically for slow-moving or obsolete status. The Company writes down the carrying value of its inventories to reflect situations in which the cost of inventories is not expected to be recovered. Once established, write-downs of inventories are considered permanent adjustments to the cost basis of the obsolete or excess inventories. Raw materials and finished goods include material costs less reserves for obsolete or excess inventories. The Company evaluates the current level of inventories considering historical trends and other factors, such as selling prices and costs of completion, disposal and transportation, and based on the evaluation, records adjustments to reflect inventories at net realizable value. These adjustments are estimates, which could vary significantly from actual results if future economic conditions, customer demand, competition or other relevant factors differ from expectations. These estimates require us to make assessments about future demand for the Company’s products in order to categorize the status of such inventories items as slow-moving, obsolete or in excess-of-need. These estimates are subject to the ongoing accuracy of the Company’s forecasts of market conditions, industry trends, competition and other factors.

Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation.  We compute depreciation using the straight-line method over the estimated useful lives of the assets which is generally three to twelve years for computer hardware and software, seven to ten years for freezers,