Cryoport, Inc. [CYRX] Filings

10-Q 1 cyrx-20240630x10q.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, 2024


☐	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 31, 2024 there were 49,412,294 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, 2024 (Unaudited) and December 31, 2023	3

Unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2024 and 2023	4

Unaudited Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2024 and 2023	5

Unaudited Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2024 and 2023	6

Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023	7

Notes to Condensed Consolidated Financial Statements (Unaudited)	8

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	26

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk	37

ITEM 4. Controls and Procedures	37

PART II. OTHER INFORMATION	38

ITEM 1. Legal Proceedings	38

ITEM 1A. Risk Factors	38

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds	38

ITEM 3. Defaults Upon Senior Securities	38

ITEM 4. Mine Safety Disclosures	38

ITEM 5. Other Information	38

ITEM 6. Exhibits	39

SIGNATURES	40

Table of Contents

Cryoport, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except share data)


	June 30,		December 31,
	2024		2023
	(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	46,458	$	46,346
Short-term investments		380,684		410,409
Accounts receivable, net		40,160		42,074
Inventories		23,609		26,206
Prepaid expenses and other current assets		11,075		10,077
Total current assets		501,986		535,112
Property and equipment, net		86,653		84,858
Operating lease right-of-use assets		29,684		32,653
Intangible assets, net		178,388		194,382
Goodwill		52,384		108,403
Deposits		1,668		1,680
Deferred tax assets		1,578		656
Total assets	$	852,341	$	957,744

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable and other accrued expenses	$	24,805	$	26,995
Accrued compensation and related expenses		10,690		11,409
Deferred revenue		1,317		1,308
Current portion of operating lease liabilities		5,299		5,371
Current portion of finance lease liabilities		365		286
Current portion of convertible senior notes, net of discount of $0.1 million		14,244		—
Current portion of notes payable		110		149
Current portion of contingent consideration		3,055		92
Total current liabilities		59,885		45,610
Convertible senior notes, net of discount of $5.5 million and $7.0 million, respectively		355,665		378,553
Notes payable		1,258		1,335
Operating lease liabilities, net of current portion		26,523		29,355
Finance lease liabilities, net of current portion		1,137		954
Deferred tax liabilities		2,651		2,816
Other long-term liabilities		427		601
Contingent consideration, net of current portion		4,700		9,497
Total liabilities		452,246		468,721

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		30,275		26,275
Common stock, $0.001 par value; 100,000,000 shares authorized; 49,412,294 and 48,971,026 issued and outstanding at June 30, 2024 and December 31, 2023, respectively		49		49
Additional paid-in capital		1,138,263		1,131,183
Accumulated deficit		(739,303)		(642,419)
Accumulated other comprehensive loss		(29,189)		(26,065)
Total stockholders’ equity		400,095		489,023
Total liabilities and stockholders’ equity	$	852,341	$	957,744

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				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Life Sciences Services revenue	$	38,040	$	35,204	$	74,826	$	71,040
Life Sciences Products revenue		19,557		21,817		37,363		48,798
Total revenue		57,597		57,021		112,189		119,838

Cost of services revenue		21,105		20,008		42,707		39,084
Cost of products revenue		11,302		12,280		22,517		28,949
Total cost of revenue		32,407		32,288		65,224		68,033
Gross margin		25,190		24,733		46,965		51,805

Operating costs and expenses:
Selling, general and administrative		35,963		38,802		74,267		72,043
Engineering and development		4,646		4,263		9,398		8,139
Impairment loss		63,809		—		63,809		—
Total operating costs and expenses		104,418		43,065		147,474		80,182

Loss from operations		(79,228)		(18,332)		(100,509)		(28,377)
Other income (expense):
Investment income		2,809		2,647		5,409		5,114
Interest expense		(1,245)		(1,331)		(2,583)		(2,840)
Gain on extinguishment of debt, net		1,179		—		1,179		—
Other income (expense), net		(1,121)		(704)		218		3,301
Total other income, net		1,622		612		4,223		5,575
Loss before provision for income taxes		(77,606)		(17,720)		(96,286)		(22,802)
Provision for income taxes		(383)		(635)		(598)		(1,127)
Net loss	$	(77,989)	$	(18,355)	$	(96,884)	$	(23,929)
Paid-in-kind dividend on Series C convertible preferred stock		(2,000)		(2,000)		(4,000)		(4,000)
Net loss attributable to common stockholders	$	(79,989)	$	(20,355)	$	(100,884)	$	(27,929)
Net loss per share - basic and diluted	$	(1.62)	$	(0.42)	$	(2.05)	$	(0.58)
Weighted average shares outstanding – basic and diluted		49,345,644		48,709,384		49,182,830		48,536,901

See accompanying notes to condensed consolidated financial statements.

Table of Contents

Cryoport, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Loss

(unaudited, in thousands)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Net loss	$	(77,989)	$	(18,355)	$	(96,884)	$	(23,929)
Other comprehensive income (loss), net of tax:
Net unrealized gain on available-for-sale debt securities		994		(1,223)		1,255		2,452
Reclassification of realized (gain) loss on available-for-sale debt securities to earnings		695		532		(1,619)		631
Foreign currency translation adjustments		(801)		(4,226)		(2,760)		(3,022)
Other comprehensive income (loss)		888		(4,917)		(3,124)		61
Total comprehensive loss	$	(77,101)	$	(23,272)	$	(100,008)	$	(23,868)

See accompanying notes to condensed consolidated financial statements.

Table of Contents

Cryoport, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands, except share data)

(unaudited)


	Class A			Class B			Class C										Other		Total
	Preferred Stock			Preferred Stock			Preferred Stock			Common Stock			Additional		Accumulated		Comprehensive		Stockholders’
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Paid–In Capital		Deficit		Loss		Equity (Deficit)

Balance at March 31, 2023	—	$	—	—	$	—	200,000	$	20,275	48,501,406	$	48	$	1,118,172	$	(548,406)	$	(29,571)	$	560,518
Net loss	—		—	—		—	—		—	—		—		—		(18,355)		—		(18,355)
Other comprehensive loss, net of taxes	—		—	—		—	—		—	—		—		—		—		(4,917)		(4,917)
Stock-based compensation expense	—		—	—		—	—		—	—		—		5,800		—		—		5,800
Paid-in-kind preferred stock dividend	—		—	—		—	—		2,000	—		—		(2,000)		—		—		—
Vesting of restricted stock units	—		—	—		—	—		—	52,536		—		—		—		—		—
Proceeds from exercise of stock options	—		—	—		—	—		—	325,076		1		1,208		—		—		1,209
Balance at June 30, 2023	—	$	—	—	$	—	200,000	$	22,275	48,879,018	$	49	$	1,123,180	$	(566,761)	$	(34,488)	$	544,255

Balance at March 31, 2024	—	$	—	—	$	—	200,000	$	28,275	49,256,794	$	49	$	1,135,257	$	(661,314)	$	(30,077)	$	472,190
Net loss	—		—	—		—	—		—	—		—		—		(77,989)		—		(77,989)
Other comprehensive loss, net of taxes	—		—	—		—	—		—	—		—		—		—		888		888
Stock-based compensation expense	—		—	—		—	—		—	—		—		4,997		—		—		4,997
Paid-in-kind preferred stock dividend	—		—	—		—	—		2,000	—		—		(2,000)		—		—		—
Vesting of restricted stock units	—		—	—		—	—		—	154,850		—		—		—		—		—
Proceeds from exercise of stock options	—		—	—		—	—		—	650		—		9		—		—		9
Balance at June 30, 2024	—	$	—	—	$	—	200,000	$	30,275	49,412,294	$	49	$	1,138,263	$	(739,303)	$	(29,189)	$	400,095

Balance at December 31, 2022	—	$	—	—	$	—	200,000	$	18,275	48,334,280	$	48	$	1,114,896	$	(542,832)	$	(34,549)	$	555,838
Net loss	—		—	—		—	—		—	—		—		—		(23,929)		—		(23,929)
Other comprehensive loss, net of taxes	—		—	—		—	—		—	—		—		—		—		61		61
Stock-based compensation expense	—		—	—		—	—		—	—		—		10,984		—		—		10,984
Paid-in-kind preferred stock dividend	—		—	—		—	—		4,000	—		—		(4,000)		—		—		—
Vesting of restricted stock units	—		—	—		—	—		—	209,124		—		—		—		—		—
Proceeds from exercise of stock options	—		—	—		—	—		—	335,614		1		1,300		—		—		1,301
Balance at June 30, 2023	—	$	—	—	$	—	200,000	$	22,275	48,879,018	$	49	$	1,123,180	$	(566,761)	$	(34,488)	$	544,255

Balance at December 31, 2023	—	$	—	—	$	—	200,000	$	26,275	48,971,026	$	49	$	1,131,183	$	(642,419)	$	(26,065)	$	489,023
Net loss	—		—	—		—	—		—	—		—		—		(96,884)		—		(96,884)
Other comprehensive income, net of taxes	—		—	—		—	—		—	—		—		—		—		(3,124)		(3,124)
Stock-based compensation expense	—		—	—		—	—		—	—		—		10,453		—		—		10,453
Paid-in-kind preferred stock dividend	—		—	—		—	—		4,000	—		—		(4,000)		—		—		—
Vesting of restricted stock units	—		—	—		—	—		—	324,754		—		—		—		—		—
Proceeds from exercise of stock options	—		—	—		—	—		—	116,514		0		627		—		—		627
Balance at June 30, 2024	—	$	—	—	$	—	200,000	$	30,275	49,412,294	$	49	$	1,138,263	$	(739,303)	$	(29,189)	$	400,095

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,
	2024		2023
Cash Flows From Operating Activities:
Net loss	$	(96,884)	$	(23,929)
Adjustments to reconcile net loss to net cash used in operating activities:
Impairment loss		63,809		—
Depreciation and amortization		15,027		13,127
Amortization of debt discount		1,198		1,283
Non-cash operating lease expense		2,826		2,281
Unrealized (gain) loss on investments in equity securities		1,026		(105)
Realized (gain) loss on available-for-sale investments		(1,968)		69
Gain on extinguishment of debt		(1,179)		—
Stock-based compensation expense		10,453		10,984
Loss on disposal of property and equipment		238		190
Gain on insurance settlement		—		(2,642)
Change in credit losses		(18)		(133)
Insurance proceeds for operations		—		1,212
Change in contingent consideration		(1,741)		(68)
Changes in operating assets and liabilities:
Accounts receivable		1,558		1,104
Inventories		2,432		(1,247)
Prepaid expenses and other current assets		(1,381)		1,251
Deposits		(9)		(197)
Operating lease liabilities		(2,754)		(2,102)
Accounts payable and other accrued expenses		(2,294)		(2,874)
Accrued compensation and related expenses		(630)		248
Deferred revenue		23		488
Net deferred tax asset		(1,022)		(220)
Net cash used in operating activities		(11,290)		(1,280)

Cash Flows From Investing Activities:
Purchases of property and equipment		(7,796)		(18,243)
Insurance proceeds for loss of fixed assets		—		976
Software development costs		(2,074)		(2,534)
Purchases of short-term investments		(49,922)		—
Sales/maturities of short-term investments		80,225		52,487
Patent and trademark costs		(667)		(391)
Net cash provided by investing activities		19,766		32,295

Cash Flows From Financing Activities:
Proceeds from exercise of stock options		627		1,300
Cash paid to repurchase of 2026 Senior Notes		(8,663)		—
Repayment of notes payable

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10-K	[2023-02-28]
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10-Q	[2022-08-04]
10-Q	[2022-05-05]
10-K	[2022-02-28]
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10-Q	[2021-05-06]
10-K	[2021-03-01]
10-Q	[2020-11-06]
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]
10-Q	[2016-11-14]
10-Q	[2016-08-15]
S-1	[2016-06-30]
10-K	[2016-06-28]
S-1	[2016-04-28]
10-Q	[2016-02-11]
10-Q	[2015-11-16]
10-Q	[2015-08-06]
10-K	[2015-05-19]
S-1	[2015-03-25]
10-Q	[2015-02-05]
10-Q	[2014-11-12]
10-Q	[2014-07-31]
10-K	[2014-06-25]
10-Q	[2014-02-13]
10-Q	[2013-11-18]
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10-K	[2013-06-25]
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S-1	[2012-03-23]
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