Cryoport Earnings 2020-06-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

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 June 30, 2020


☐	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)
Warrants to purchase Common Stock	CYRXW	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, 2020 there were 38,778,015 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, 2020 (Unaudited) and December 31, 2019	3

Unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2020 and 2019	4

Unaudited Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2020 and 2019	5

Unaudited Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2020 and 2019	6

Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2020 and 2019	7

Notes to Condensed Consolidated Financial Statements (Unaudited)	8

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	30

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk	38

ITEM 4. Controls and Procedures	38

PART II. OTHER INFORMATION	39

ITEM 1. Legal Proceedings	39

ITEM 1A. Risk Factors	39

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds	40

ITEM 3. Defaults Upon Senior Securities	40

ITEM 4. Mine Safety Disclosures	40

ITEM 5. Other Information	40

ITEM 6. Exhibits	41

SIGNATURES	42

Table of Contents

Cryoport, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets


	June 30,		December 31,
	2020		2019
	(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	44,326,038	$	47,234,770
Short-term investments		163,891,831		47,060,786
Accounts receivable, net		7,038,733		7,098,191
Inventories		538,376		473,961
Prepaid expenses and other current assets		891,652		1,096,855
Total current assets		216,686,630		102,964,563
Property and equipment, net		13,702,732		11,833,057
Operating lease right-of-use assets		5,868,513		4,460,319
Intangible assets, net		4,984,012		5,177,578
Goodwill		10,999,722		10,999,722
Deposits		534,978		437,299
Total assets	$	252,776,587	$	135,872,538

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable and other accrued expenses	$	6,509,745	$	2,498,375
Accrued compensation and related expenses		1,852,186		1,903,720
Deferred revenue		330,272		367,867
Operating lease liabilities		691,386		665,901
Finance lease liabilities		57,946		24,617
Total current liabilities		9,441,535		5,460,480
Convertible senior notes, net of discount of $4.0 million		110,977,419		—
Operating lease liabilities, net of current portion		5,497,430		4,101,236
Finance lease liabilities, net of current portion		146,570		8,539
Deferred tax liability		56,945		20,935
Total liabilities		126,119,899		9,591,190

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		—		—
Common stock, $0.001 par value; 100,000,000 shares authorized; 38,565,193 and 37,339,787 issued and outstanding at June 30, 2020 and December 31, 2019, respectively		38,565		37,340
Additional paid-in capital		295,423,521		285,609,022
Accumulated deficit		(169,065,602)		(159,319,963)
Accumulated other comprehensive income (loss)		260,204		(45,051)
Total stockholders’ equity		126,656,688		126,281,348
Total liabilities and stockholders’ equity	$	252,776,587	$	135,872,538

See accompanying notes to condensed consolidated financial statements.

Table of Contents

Cryoport, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Revenues	$	9,389,006	$	8,463,588	$	19,163,081	$	15,116,500
Cost of revenues		4,262,010		4,125,199		8,778,121		7,324,210
Gross margin		5,126,996		4,338,389		10,384,960		7,792,290

Operating costs and expenses:
General and administrative		5,733,149		3,258,781		9,763,191		5,955,640
Sales and marketing		3,292,845		2,843,073		6,374,272		5,251,065
Engineering and development		1,946,443		540,933		3,679,169		1,030,529
Total operating costs and expenses		10,972,437		6,642,787		19,816,632		12,237,234

Loss from operations		(5,845,441)		(2,304,398)		(9,431,672)		(4,444,944)
Other income (expense):
Interest expense		(398,256)		(333,910)		(400,707)		(672,638)
Other income, net		490,784		119,441		169,598		210,913
Loss before provision for income taxes		(5,752,913)		(2,518,867)		(9,662,781)		(4,906,669)
Provision for income taxes		(49,833)		(9,624)		(82,858)		(8,724)
Net loss	$	(5,802,746)	$	(2,528,491)	$	(9,745,639)	$	(4,915,393)
Net loss per share – basic and diluted	$	(0.15)	$	(0.08)	$	(0.26)	$	(0.16)
Weighted average shares outstanding – basic and diluted		38,281,087		31,176,166		37,914,818		30,811,109

See accompanying notes to condensed consolidated financial statements.

Table of Contents

Cryoport, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Loss


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Net loss	$	(5,802,746)	$	(2,528,491)	$	(9,745,639)	$	(4,915,393)
Other comprehensive income (loss), net of tax:
Net unrealized gain (loss) on available-for-sale debt securities		(144,647)		37,905		335,746		59,612
Reclassification of realized gain on available-for-sale debt securities to earnings		(15,563)		(18,913)		(26,552)		(12,846)
Foreign currency translation adjustments		(2,795)		(1,535)		(3,939)		(11,615)
Other comprehensive income (loss)		(163,005)		17,457		305,255		35,151
Total comprehensive loss	$	(5,965,751)	$	(2,511,034)	$	(9,440,384)	$	(4,880,242)

Table of Contents

Cryoport, Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity


														Accumulated
	Class A			Class B						Additional				Other		Total
	Preferred Stock			Preferred Stock			Common Stock			Paid–In		Accumulated		Comprehensive		Stockholders’
	Shares	Amount		Shares	Amount		Shares	Amount		Capital		Deficit		Income		Equity (Deficit)
Balance at March 31, 2019	—	$	—	—	$	—	30,677,500	$	30,678	$	182,230,799	$	(143,375,386)	$	20,847	$	38,906,938
Net loss	—		—	—		—	—		—		—		(2,528,491)		—		(2,528,491)
Other comprehensive income, net of taxes	—		—	—		—	—		—		—		—		17,457		17,457
Stock-based compensation expense	—		—	—		—	—		—		1,959,588		—		—		1,959,588
Proceeds from public offering, net of costs of $106,300	—		—	—		—	4,312,500		4,313		68,803,133		—		—		68,807,446
Issuance of common stock for board of director compensation	—		—	—		—	1,920		2		32,165		—		—		32,167
Proceeds from exercise of stock options and warrants	—		—	—		—	493,650		493		1,554,577		—		—		1,555,070
Balance at June 30, 2019	—	$	—	—	$	—	35,485,570	$	35,486	$	254,580,262	$	(145,903,877)	$	38,304	$	108,750,175

Balance at March 31, 2020	—	$	—	—	$	—	37,930,255	$	37,930	$	290,106,664	$	(163,262,856)	$	423,209	$	127,304,947
Net loss	—		—	—		—	—		—		—		(5,802,746)		—		(5,802,746)
Other comprehensive loss, net of taxes	—		—	—		—	—		—		—		—		(163,005)		(163,005)
Stock-based compensation expense	—		—	—		—	—		—		2,280,830		—		—		2,280,830
Issuance of common stock for board of director compensation	—		—	—		—	699		1		20,666		—		—		20,667
Proceeds from exercise of stock options and warrants	—		—	—		—	634,239		634		3,015,361		—		—		3,015,995
Balance at June 30, 2020	—	$	—	—	$	—	38,565,193	$	38,565	$	295,423,521	$	(169,065,602)	$	260,204	$	126,656,688

Balance at December 31, 2018	—	$	—	—	$	—	30,319,038	$	30,319	$	179,501,577	$	(140,988,484)	$	3,153	$	38,546,565
Net loss	—		—	—		—	—		—		—		(4,915,393)		—		(4,915,393)
Other comprehensive income, net of taxes	—		—	—		—	—		—		—		—		35,151		35,151
Stock-based compensation expense	—		—	—		—	—		—		3,355,824		—		—		3,355,824
Proceeds from public offering, net of costs of $106,300	—		—	—		—	4,312,500		4,313		68,803,133		—		—		68,807,446
Issuance of common stock for board of director compensation	—		—	—		—	3,239		3		49,663		—		—		49,666
Proceeds from exercise of stock options and warrants	—		—	—		—	850,793		851		2,870,065		—		—		2,870,916
Balance at June 30, 2019	—	$	—	—	$	—	35,485,570	$	35,486	$	254,580,262	$	(145,903,877)	$	38,304	$	108,750,175

Balance at December 31, 2019	—	$	—	—	$	—	37,339,787	$	37,340	$	285,609,022	$	(159,319,963)	$	(45,051)	$	126,281,348
Net loss	—		—	—		—	—		—		—		(9,745,639)		—		(9,745,639)
Other comprehensive income, net of taxes	—		—	—		—	—		—		—		—		305,255		305,255
Stock-based compensation expense	—		—	—		—	—		—		3,880,542		—		—		3,880,542
Issuance of common stock for board of director compensation	—		—	—		—	1,968		2		41,331		—		—		41,333
Proceeds from exercise of stock options and warrants	—		—	—		—	1,223,438		1,223		5,892,626		—		—		5,893,849
Balance at June 30, 2020	—	$	—	—	$	—	38,565,193	$	38,565	$	295,423,521	$	(169,065,602)	$	260,204	$	126,656,688

See accompanying notes to condensed consolidated financial statements.

Table of Contents

Cryoport, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(unaudited)


	For the Six Months Ended
	June 30,
	2020		2019
Cash Flows From Operating Activities:
Net loss	$	(9,745,639)	$	(4,915,393)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		1,668,710		797,255
Amortization of debt discount		60,105		30,793
Unrealized gain on investments in equity securities		(336,578)		(75,348)
Realized loss on investments in equity securities		804,772		—
Realized gain on available-for-sale investments		(16,892)		(29,911)
Stock-based compensation expense		3,921,875		3,405,490
Loss on disposal of property and equipment		121,336		100,254
Provision for bad debt		33,976		42,042
Changes in operating assets and liabilities:
Accounts receivable		25,482		(2,594,234)
Inventories		(64,415)		(85,924)
Prepaid expenses and other current assets		205,203		225,402
Deposits		(97,679)		(14,977)
Change in operating lease right-of-use assets and lease liabilities		13,485		(56,532)
Accounts payable and other accrued expenses		3,149,770		1,712,648
Accrued compensation and related expenses		(51,534)		271,779
Deferred revenue		(37,595)		(64,830)
Deferred tax liability		36,010		—
Net cash used in operating activities		(309,608)		(1,251,486)

Cash Flows From Investing Activities:
Purchases of property and equipment		(2,542,151)		(2,578,145)
Purchases of short-term investments		(136,252,019)		(6,020,660)
Sales/maturities of short-term investments		19,278,866		2,000,000
Cash paid for acquisition		—		(20,429,651)
Patent and trademark costs		(74,934)		(43,029)
Net cash used in investing activities		(119,590,238)		(27,071,485)

Cash Flows From Financing Activities:
Proceeds from exercise of stock options and warrants		5,893,849		2,870,916
Proceeds from issuance of convertible senior notes

Price	16.88	EPS	-1
Shares	36	P/E	-31
MCap	605	P/FCF	-293
Net Debt	-94	EBIT	-19
TEV	512	TEV/EBIT	-27
TTM 2019-09-30, in MM, except price, ratios

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	2020-08-24	Enter Agreement, Sale of Shares, Shareholder Rights, Regulation FD, Exhibits
8-K	2020-08-21	Enter Agreement, Regulation FD, Exhibits
8-K	2020-08-06	Earnings, Exhibits
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

EX-31.1	cyrx-20200630xex31d1.htm
EX-31.2	cyrx-20200630xex31d2.htm
EX-32.1	cyrx-20200630xex32d1.htm

CYRX 10Q Quarterly Report

Cryoport Earnings 2020-06-30