2014 Q2 Form 10-K Financial Statement

#000114420414039508 Filed on June 25, 2014

View on sec.gov

Income Statement

Concept 2014 Q2 2013 Q1 2013
Revenue $937.0K $368.0K $1.101M
YoY Change 92.01% 104.44% 0.05%
Cost Of Revenue $597.2K $520.0K $1.588M
YoY Change 37.83% 57.58% -0.14%
Gross Profit $339.0K -$153.0K -$487.3K
YoY Change 516.36% 2.0% -0.55%
Gross Profit Margin 36.18% -41.58% -44.28%
Selling, General & Admin $1.428M $1.410M $5.412M
YoY Change 16.84% 20.51% 0.03%
% of Gross Profit 421.19%
Research & Development $79.24K $120.0K $425.4K
YoY Change -14.46% -20.0% -1.06%
% of Gross Profit 23.38%
Depreciation & Amortization $55.14K $80.00K $394.0K
YoY Change -38.35% -11.11% 1.02%
% of Gross Profit 16.27%
Operating Expenses $1.507M $1.530M $5.837M
YoY Change 14.63% 15.91% -0.05%
Operating Profit -$1.168M -$1.681M -$6.324M
YoY Change -7.3% 14.35% -0.09%
Interest Expense $1.129M -$40.00K $72.86K
YoY Change 1273.01% -80.0% -221.44%
% of Operating Profit
Other Income/Expense, Net $953.00
YoY Change
Pretax Income -$2.296M -$1.720M -$6.381M
YoY Change 73.45% 2.99% 0.01%
Income Tax $1.600K $0.00 $1.600K
% Of Pretax Income
Net Earnings -$2.297M -$1.717M -$6.382M
YoY Change 73.49% 2.81% 0.04%
Net Earnings / Revenue -245.14% -466.58% -579.94%
Basic Earnings Per Share
Diluted Earnings Per Share -$460.0K -$546.0K -$4.808M
COMMON SHARES
Basic Shares Outstanding 59.99M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2014 Q2 2013 Q1 2013
SHORT-TERM ASSETS
Cash & Short-Term Investments $200.0K $600.0K $400.0K
YoY Change 0.0% -86.96% -33.33%
Cash & Equivalents $170.5K $563.1K $400.0K
Short-Term Investments
Other Short-Term Assets $81.42K $138.9K $200.0K
YoY Change -55.99% -53.7% 100.0%
Inventory $38.60K $39.21K $0.00
Prepaid Expenses
Receivables $492.9K $217.1K $500.0K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $783.4K $958.3K $1.100M
YoY Change -4.82% -81.21% 10.0%
LONG-TERM ASSETS
Property, Plant & Equipment $364.7K $505.5K $400.0K
YoY Change -36.57% -27.79% -20.0%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $0.00 $0.00 $0.00
YoY Change
Total Long-Term Assets $541.5K $797.5K $600.0K
YoY Change -35.48% -27.5% -25.0%
TOTAL ASSETS
Total Short-Term Assets $783.4K $958.3K $1.100M
Total Long-Term Assets $541.5K $797.5K $600.0K
Total Assets $1.325M $1.756M $1.700M
YoY Change -20.3% -71.68% -5.56%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $500.0K $900.0K $600.0K
YoY Change -37.5% 125.0% -33.33%
Accrued Expenses $500.0K $200.0K $500.0K
YoY Change 66.67% 0.0% 150.0%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $1.300M $1.400M $3.000M
YoY Change -43.48% 250.0% 114.29%
Total Short-Term Liabilities $2.400M $2.497M $4.000M
YoY Change -28.95% 127.04% 60.0%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $1.300M $0.00
YoY Change -100.0% -7.14% -100.0%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $0.00 $1.300M $0.00
YoY Change -100.0% -7.14% -100.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.400M $2.497M $4.000M
Total Long-Term Liabilities $0.00 $1.300M $0.00
Total Liabilities $2.400M $3.819M $4.000M
YoY Change -48.77% 52.76% 5.26%
SHAREHOLDERS EQUITY
Retained Earnings -$88.92M -$66.31M
YoY Change 31.46%
Common Stock $87.86M $64.25M
YoY Change 35.98%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$1.058M -$2.063M -$2.300M
YoY Change
Total Liabilities & Shareholders Equity $1.325M $1.756M $1.700M
YoY Change -20.3% -71.68% -5.56%

Cashflow Statement

Concept 2014 Q2 2013 Q1 2013
OPERATING ACTIVITIES
Net Income -$2.297M -$1.717M -$6.382M
YoY Change 73.49% 2.81% 0.04%
Depreciation, Depletion And Amortization $55.14K $80.00K $394.0K
YoY Change -38.35% -11.11% 1.02%
Cash From Operating Activities $917.0K -$1.110M -$4.380M
YoY Change -178.31% -47.39% -8.56%
INVESTING ACTIVITIES
Capital Expenditures $0.00 -$110.0K $156.2K
YoY Change -100.0% 450.0% -186.78%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities $0.00 -$110.0K -$140.0K
YoY Change -100.0% 450.0% -22.22%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 720.0K 1.190M 4.330M
YoY Change -25.52% -69.87% 375.82%
NET CHANGE
Cash From Operating Activities $917.0K -1.110M -4.380M
Cash From Investing Activities 0.000 -110.0K -140.0K
Cash From Financing Activities 720.0K 1.190M 4.330M
Net Change In Cash $917.0K -30.00K -190.0K
YoY Change -373.26% -101.65% -95.32%
FREE CASH FLOW
Cash From Operating Activities $917.0K -$1.110M -$4.380M
Capital Expenditures $0.00 -$110.0K $156.2K
Free Cash Flow $917.0K -$1.000M -$4.536M
YoY Change -170.42% -52.15% -1.6%

Facts In Submission

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CY2013Q3 us-gaap Gross Profit
GrossProfit
72000 USD
CY2013Q4 us-gaap Gross Profit
GrossProfit
167000 USD
CY2014Q1 us-gaap Gross Profit
GrossProfit
143000 USD
CY2014 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
-19563826 USD
CY2013 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
-6380833 USD
CY2014 us-gaap Income Taxes Paid
IncomeTaxesPaid
1600 USD
CY2013 us-gaap Income Taxes Paid
IncomeTaxesPaid
1600 USD
CY2014 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
1600 USD
CY2013 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
1600 USD
CY2014 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
2318000 USD
CY2013 us-gaap Income Tax Reconciliation Change In Deferred Tax Assets Valuation Allowance
IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
2319000 USD
CY2014 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
-6650000 USD
CY2013 us-gaap Income Tax Reconciliation Income Tax Expense Benefit At Federal Statutory Income Tax Rate
IncomeTaxReconciliationIncomeTaxExpenseBenefitAtFederalStatutoryIncomeTaxRate
-2169000 USD
CY2014 us-gaap Income Tax Reconciliation Other Reconciling Items
IncomeTaxReconciliationOtherReconcilingItems
4600 USD
CY2013 us-gaap Income Tax Reconciliation Other Reconciling Items
IncomeTaxReconciliationOtherReconcilingItems
215600 USD
CY2014 us-gaap Income Tax Reconciliation State And Local Income Taxes
IncomeTaxReconciliationStateAndLocalIncomeTaxes
-327000 USD
CY2013 us-gaap Income Tax Reconciliation State And Local Income Taxes
IncomeTaxReconciliationStateAndLocalIncomeTaxes
-359000 USD
CY2014 us-gaap Income Tax Reconciliation Tax Exempt Income
IncomeTaxReconciliationTaxExemptIncome
USD
CY2013 us-gaap Income Tax Reconciliation Tax Exempt Income
IncomeTaxReconciliationTaxExemptIncome
-1000 USD
CY2014 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
-221929 USD
CY2013 us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
443568 USD
CY2014 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
323604 USD
CY2013 us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
70973 USD
CY2014 us-gaap Increase Decrease In Employee Related Liabilities
IncreaseDecreaseInEmployeeRelatedLiabilities
236856 USD
CY2013 us-gaap Increase Decrease In Employee Related Liabilities
IncreaseDecreaseInEmployeeRelatedLiabilities
-18564 USD
CY2014 us-gaap Increase Decrease In Interest Payable Net
IncreaseDecreaseInInterestPayableNet
108038 USD
CY2013 us-gaap Increase Decrease In Interest Payable Net
IncreaseDecreaseInInterestPayableNet
39558 USD
CY2014 us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
-9509 USD
CY2013 us-gaap Increase Decrease In Inventories
IncreaseDecreaseInInventories
-12542 USD
CY2014 us-gaap Increase Decrease In Other Operating Assets
IncreaseDecreaseInOtherOperatingAssets
26588 USD
CY2013 us-gaap Increase Decrease In Other Operating Assets
IncreaseDecreaseInOtherOperatingAssets
-34912 USD
CY2014 us-gaap Induced Conversion Of Convertible Debt Expense
InducedConversionOfConvertibleDebtExpense
13713767 USD
CY2013 us-gaap Induced Conversion Of Convertible Debt Expense
InducedConversionOfConvertibleDebtExpense
USD
CY2014Q1 us-gaap Inventory Net
InventoryNet
29703 USD
CY2013Q1 us-gaap Inventory Net
InventoryNet
39212 USD
CY2014 us-gaap Interest Expense
InterestExpense
784454 USD
CY2013 us-gaap Interest Expense
InterestExpense
72861 USD
CY2014 us-gaap Interest Expense Related Party
InterestExpenseRelatedParty
36500 USD
CY2013 us-gaap Interest Expense Related Party
InterestExpenseRelatedParty
42200 USD
CY2014 us-gaap Interest Paid
InterestPaid
USD
CY2013 us-gaap Interest Paid
InterestPaid
15676 USD
CY2014Q1 us-gaap Inventory Finished Goods
InventoryFinishedGoods
11420 USD
CY2013Q1 us-gaap Inventory Finished Goods
InventoryFinishedGoods
10679 USD
CY2014Q1 us-gaap Inventory Raw Materials
InventoryRawMaterials
18283 USD
CY2013Q1 us-gaap Inventory Raw Materials
InventoryRawMaterials
28533 USD
CY2014Q1 us-gaap Leasehold Improvements Gross
LeaseholdImprovementsGross
30913 USD
CY2013Q1 us-gaap Leasehold Improvements Gross
LeaseholdImprovementsGross
30913 USD
CY2014Q1 us-gaap Liabilities
Liabilities
4014445 USD
CY2013Q1 us-gaap Liabilities
Liabilities
3819072 USD
CY2014Q1 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
1709950 USD
CY2013Q1 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
1755797 USD
CY2014Q1 us-gaap Liabilities Current
LiabilitiesCurrent
4014445 USD
CY2013Q1 us-gaap Liabilities Current
LiabilitiesCurrent
2497408 USD
CY2014Q1 us-gaap Machinery And Equipment Gross
MachineryAndEquipmentGross
386731 USD
CY2013Q1 us-gaap Machinery And Equipment Gross
MachineryAndEquipmentGross
380526 USD
CY2014 us-gaap Nature Of Operations
NatureOfOperations
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <strong>Note 1.&nbsp;Nature of the Business</strong></p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 0.5in"> &nbsp;</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> Cryoport Inc. (the "Company", "Cryoport" or "we") is a Nevada corporation originally incorporated under the name G.T.5-Limited ("GT5") on May 25, 1990. In connection with a Share Exchange Agreement, on March 15, 2005 we changed our name to Cryoport, Inc. and acquired all of the issued and outstanding shares of common stock of Cryoport Systems, Inc., a California corporation, in exchange for 2,410,811 shares of our common stock (which represented approximately 81% of the total issued and outstanding shares of common stock following the close of the transaction). Cryoport Systems, Inc., which was originally formed in 1999 as a California limited liability company, and subsequently reorganized into a California corporation on December 11, 2000, remains the operating company under Cryoport, Inc. We became "publicly held" by the reverse merger with GT5 described above. Over time we have transitioned from being a development company to a fully operational public company, providing cold chain logistics solutions to the biotechnology and life sciences industries, globally.</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> &nbsp;</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> Through a combination of purpose-built proprietary packaging, information technologies and specialized logistics knowhow, we provide frozen shipping logistics solutions to the life sciences industry. We view our solutions as disruptive to "older technologies" in that our solutions provide reliable, economic alternatives to existing solutions and services utilized for frozen shipping in life sciences including stem cells, cell lines, vaccines, diagnostic materials, semen, eggs, embryos, cord blood, bio-pharmaceuticals, infectious substances and other items that require continuous exposure to frozen or cryogenic temperatures.</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> Our Cryoport Express<sup>&reg;</sup> Solutions includes sophisticated cloud-based logistics management software we have branded as the Cryoportal&trade; which supports the management of the entire shipment process through a single interface, including initial order input, document preparation, customs clearance, courier management, shipment tracking, issue resolution, and delivery. The Cryoportal&trade; provides unique and incisive information dashboards and validation documentation for every shipment. The Cryoportal&trade; records and retains a fully documented "chain-of-custody" and, at the client&#39;s option, "chain-of-condition" for every shipment, helping ensure that quality, safety, efficacy, and stability of shipped commodities are maintained throughout the process. This recorded and archived information allows our customers to meet exacting requirements necessary for scientific work and for regulatory purposes.</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> Our Cryoport Express<sup>&reg;</sup> Solutions also includes our liquid nitrogen dry vapor shippers we have branded as our Cryoport Express<sup>&reg;</sup> Shippers, which are cost-effective and reusable cryogenic transport containers (patented vacuum flasks) utilizing innovative liquid nitrogen ("LN2") "dry vapor" technology. Cryoport Express<sup>&reg;</sup> Shippers are International Air Transport Association ("IATA") certified, and validated to maintain stable temperatures of minus 150&deg; C and below for a 10-plus day dynamic shipment period. The Company currently features two Cryoport Express<sup>&reg;</sup> Shipper models, the Standard Dry Shipper (holding up to 75-2.0 ml vials) and the High Volume Dry Shipper (holding up to 500-2.0 ml vials).</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> &nbsp;</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> Amongst our solutions, we offer a "turnkey" solution, which can be accessed through our cloud-based Cryoportal&trade; or by contacting Cryoport Client Care for order entry. Once the order is placed, we ship a fully charged Cryoport Express&reg; Shipper to the customer <font style="COLOR: #1a1a1a">who conveniently loads their frozen commodity into the inner chamber of the shipper.&nbsp; The customer then closes the shipper and reseals the shipping box displaying the recipient&#39;s address ("Flap A") for pre-arranged carrier pick up.&nbsp;</font> Cryoport arranges for the pick-up of the parcel by a shipping service provider for delivery to the customer&#39;s intended recipient.&nbsp; The recipient simply opens the box and shipper and removes the frozen commodity.&nbsp; The recipient only needs to reseal the box, displaying the nearest Cryoport Operations Center address ("Flap B") and set it out for pre-arranged carrier pick up. The Cryoport Express<sup>&reg;</sup> Shipper is returned to us for cleaning, quality assurance testing, recharging and reuse.</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> &nbsp;</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> In late 2012, we shifted our focus from being a developer of cryogenic shippers and software to being a comprehensive frozen logistics solutions provider to the life sciences industry, which was accomplished by broadening our service offerings. Now, in addition to our "Turn-key Solution", we also provide the following value-added solutions that were developed to address our various clients&#39; needs:</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> &nbsp;</p> <table style="MARGIN-BOTTOM: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-TOP: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in">&nbsp;</td> <td style="FONT-FAMILY: Symbol; WIDTH: 0.25in">&middot;</td> <td>"<strong><em>Customer Staged Solution</em></strong>," under which we supply an inventory of our Cryoport Express&reg; Shippers to our customer, in an uncharged state, enabling our customer (after training/certification) to charge them with liquid nitrogen and use our Cryoportal&trade; to enter orders with shipping and delivery service providers for the transportation of the package. Once the order is released, our customer services professionals monitor the shipment and the return of the shipper to us for cleaning, quality assurance testing and reuse.</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">&nbsp;</p> <table style="MARGIN-BOTTOM: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-TOP: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in">&nbsp;</td> <td style="FONT-FAMILY: Symbol; WIDTH: 0.25in">&middot;</td> <td>"<strong><em>Customer Managed Solution</em></strong>," a limited customer implemented, solution, whereby we supply our Cryoport Express&reg; Shippers to clients in a fully charged state, but leaving it to the client to manage the shipping, including the selection of the shipping and delivery service provider and the return of the shipper to us. Under this solution, the customer accepts a significant level of the risk for a successful shipment.</td> </tr> </table> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 0.5in"> &nbsp;</p> <table style="MARGIN-BOTTOM: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-TOP: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in">&nbsp;</td> <td style="FONT-FAMILY: Symbol; WIDTH: 0.25in">&middot;</td> <td>"<strong><em>Powered by Cryoport</em></strong><sup>SM</sup>" is made available to providers of shipping and delivery services who seek to offer a "branded" cryogenic shipping solution as part of their service offerings. By negotiation, this solution can be private labeled as long as "<em>powered by Cryoport<sup>SM</sup></em>" appears prominently on the offering software interface and prominently on the packaging, which is provided by the client after minimum volume requirements are met.</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">&nbsp;</p> <table style="MARGIN-BOTTOM: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-TOP: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in">&nbsp;</td> <td style="FONT-FAMILY: Symbol; WIDTH: 0.25in">&middot;</td> <td style="FONT-FAMILY: Times New Roman, Times, Serif"> "<strong><em>Integrated Solution</em></strong>" is our most comprehensive and complex outsourcing solution. It usually involves our management of the entire cryogenic logistics process for our client, including the location of our employees at the client&#39;s site to manage the client&#39;s cryogenic logistics, in total.</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">&nbsp;</p> <table style="MARGIN-BOTTOM: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-TOP: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in">&nbsp;</td> <td style="FONT-FAMILY: Symbol; WIDTH: 0.25in">&middot;</td> <td style="TEXT-ALIGN: justify">"<strong><em>Life Science Point-of-Care Repository Solution</em></strong>" whereby we supply our Cryoport Express<sup>&reg;</sup> Shippers to ship and store cryogenically preserved life science products for up to 6 days (or longer periods with substitute Shippers) at a point-of-care site, with the Cryoport Express<sup>&reg;</sup> Shippers serving as a temporary freezer/repository enabling the efficient distribution of temperature sensitive allogeneic cell-based therapies without the expense, inconvenience, and potential costly failure of an on-sight, cryopreservation apparatus. Our customer services professionals monitor each shipment throughout the predetermined process including the shipment&#39;s return to Cryoport where the Cryoport Express<sup>&reg;</sup> Shipper is cleaned, tested for quality assurance and then returned to inventory for reuse.</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">&nbsp;</p> <table style="MARGIN-BOTTOM: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-TOP: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in">&nbsp;</td> <td style="FONT-FAMILY: Symbol; WIDTH: 0.25in">&middot;</td> <td>"<strong><em>Personalized Medicine and Cell-based Immunotherapy Solution</em></strong>" whereby our Cryoport Express<sup>&reg;</sup> Solutions serves as an enabling technology for the safe manufacture of the rapidly expanding autologous cellular-based immunotherapy market by providing a comprehensive logistics solution for the verified chain of custody and condition transport from, (a) the collection of the patient&#39;s cells in a hospital setting, to (b) a central processing facility where they are manufactured into a personalized medicine, to (c) the safe, cryogenically preserved return of these irreplaceable cells to a point-of-care treatment facility.&nbsp; The Cryoport Express<sup>&reg;</sup> Shippers can then serve as a temporary freezer/repository to allow the efficient distribution of this personalized medicine to patients when and where they need it most without the expense, inconvenience, and potential costly failure of an on-sight, cryopreservation apparatus. Our customer services professionals monitor each shipment throughout the predetermined process including the shipment&#39;s return to Cryoport where the Cryoport Express<sup>&reg;</sup> Shipper is cleaned, tested for quality assurance and then returned to inventory for reuse.</td> </tr> </table> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> &nbsp;</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> One of our distribution partners is Federal Express Corporation ("FedEx"). We have an agreement with FedEx to provide frozen shipping logistics services through the combination of our purpose-built proprietary technologies and turnkey management processes. FedEx markets and sells Cryoport&#39;s services for frozen temperature-controlled cold chain transportation as its FedEx<sup>&reg;</sup> Deep Frozen Shipping Solution on a non-exclusive basis and at its sole expense. During fiscal year 2013, the Company worked closely with FedEx to further align its sales efforts and accelerate penetration within FedEx&#39;s life sciences customer base through improved processes, sales incentives, joint customer calls and more frequent communication at the sales and executive level. In addition, FedEx has developed a FedEx branded version of the Cryoportal<sup>TM</sup> software platform, which is "<em>powered by Cryoport</em>" for use by FedEx and its customers giving them access to the full capabilities of our logistics management platform.</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> &nbsp;</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> In January 2013, we entered into a master agreement ("FedEx Agreement") with FedEx renewing these services and providing FedEx with a non-exclusive license and right to use a customized version of our Cryoportal<sup>TM</sup> for the management of shipments made by FedEx customers. The FedEx Agreement became effective on January 1, 2013 and, unless sooner terminated as provided in the FedEx Agreement, expires on December 31, 2015.</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> &nbsp;</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> Pursuant to an agreement with DHL Express (USA), Inc. ("DHL"), DHL biotechnology and life science customers have direct access to our cloud-based order entry and tracking portal to order Cryoport Express<sup>&reg;</sup> Shippers and receive preferred DHL shipping rates. The agreement covers DHL shipping discounts that may be used to support our customers using our Cryoport Express<sup>&reg;</sup> Solutions. In connection with the agreement, we have integrated our proprietary Cryoportal<sup>TM</sup> to DHL&#39;s tracking and billing systems to provide DHL biotechnology and life science customers with a seamless way ("<em>powered by Cryoport</em>") of shipping their critical biological material worldwide.</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> &nbsp;&nbsp;</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> In December&nbsp;2012, we signed an agreement with Pfizer Inc. relating to Zoetis Inc. (formerly the animal health business unit of Pfizer Inc.) pursuant to which we were engaged to manage frozen shipments of a key poultry vaccine. Under this arrangement, the Company is providing on-site logistics personnel and its logistics management platform, the Cryoportal<sup>TM</sup>, to manage shipments from the Zoetis manufacturing site in the United States to domestic customers as well as various international distribution centers. As part of our logistics management services, Cryoport is constantly analyzing shipping data and processes to further streamline Zoetis&#39; logistics, ensuring products arrive at their destinations in specified conditions, on-time and with the optimum uses of resources. The Company manages Zoetis&#39; total fleet of dewar flask shippers used for this purpose, including liquid nitrogen shippers. In July 2013 the agreement was amended to expand Cryoport&#39;s scope to manage all logistics of Zoetis&#39; key frozen poultry vaccine to all Zoetis&#39; international distribution centers as well as all domestic shipments of this vaccine. In October 2013, the agreement was further amended to further expand Cryoport&#39;s services to include the logistics management for a second poultry vaccine.</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px 0pt 27pt; TEXT-INDENT: -27pt"> &nbsp;</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 27pt"> In February 2014, we entered into a services agreement with Liventa Bioscience, Inc. ("Liventa"), a privately-held, commercial stage biotechnology company focused on cell-based, advanced biologics in the orthopedic industry. Under this agreement, Liventa will be using Cryoport Express<sup>&reg;</sup> Solutions for the logistics of its cell-based therapies requiring cryogenic temperatures and also provide Cryoport Express<sup>&reg;</sup> Solutions to other biologics suppliers within the orthopedic arena. The agreement combines Cryoport&#39;s proprietary, purpose-built cold chain logistics solutions for cell-based and advanced biologic tissue forms with Liventa&#39;s distribution capability to orthopedic care providers. The implementation of Cryoport&#39;s solution will eliminate dry ice shipping and related risks of degradation and also eliminate the need for expensive onsite cryogenic freezers for storage of cell-based orthopedic therapies. This will enable Liventa to better serve small or mobile clinics, pharmacies, family practice, and orthopedic specialty care providers. Surgical centers and hospitals will also benefit from better logistics and the elimination of issues surrounding dry ice transport and storage. The agreement has an initial three-year term and may be renewed for consecutive three-year terms. Liventa also agreed to certain performance criteria and the issuance of 150,000 shares of its common stock to Cryoport in exchange for the exclusive right to offer, market and promote Cryoport Express<sup>&reg;</sup> Solutions for cellular-based therapies requiring cryogenic temperatures for use</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> in orthopedic indications in the United States.</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> &nbsp;</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> <font style="FONT-SIZE: 10pt">We offer our solutions to companies in the&nbsp;life sciences industry and specific verticals including manufacturers of stem cells and cell lines, diagnostic laboratories, bio-pharmaceuticals, contract research organizations, in-vitro fertilization, cord blood, vaccines, tissue, animal husbandry, and other producers of commodities requiring reliable frozen solutions for logistics problems. These companies operate within heavily regulated environments and as such, changing vendors and distribution practices typically require a number of steps which may include the audit of our facilities, review of our procedures, qualifying us as a vendor, and performing test shipments. This process can take up to nine months or longer to complete prior to a potential customer adopting one or more of the Cryoport Express<sup>&reg;</sup></font> <font style="FONT-SIZE: 10pt">Solutions.</font></p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> &nbsp;</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <strong><em>Going Concern</em></strong></p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> &nbsp;</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> The consolidated financial statements have been prepared using the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business. We have sustained operating losses since our inception and have used substantial amounts of working capital in our operations. Further, at March 31, 2014, we had an accumulated deficit of $85.9 million. During the year ended March 31, 2014, we used cash in operations of $4.4 million and had a net loss of $19.6 million, which included a one-time, non-cash debt conversion expense of $13.7 million.</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> &nbsp;</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> <font style="FONT-SIZE: 10pt">We expect to continue to incur substantial additional operating losses from costs related to the commercialization of our Cryoport Express<sup>&reg;</sup></font> <font style="FONT-SIZE: 10pt">Solutions and do not expect that revenues from operations will be sufficient to satisfy our funding requirements in the near term. We believe that our cash resources at March 31, 2014, additional funds raised subsequent to March 31, 2014 through the current preferred stock offering (see Note 15), together with the revenues generated from our services will be sufficient to sustain our planned operations into the second quarter of fiscal year 2015; however, we must obtain additional capital to fund operations thereafter and for the achievement of sustained profitable operations. These factors raise substantial doubt about our ability to continue as a going concern. We are currently working on funding alternatives in order to secure sufficient operating capital to allow us to continue to operate as a going concern.</font></p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> &nbsp;</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> <font style="FONT-SIZE: 10pt">Future capital requirements will depend upon many factors, including the success of our commercialization efforts and the level of customer adoption of our Cryoport Express<sup>&reg;</sup></font> <font style="FONT-SIZE: 10pt">Solutions as well as our ability to establish additional collaborative arrangements. We cannot make any assurances that the sales ramp will lead to achievement of sustained profitable operations or that any additional financing will be completed on a timely basis and on acceptable terms or at all. Management&#39;s inability to successfully achieve significant revenue increases or implement cost reduction strategies or to complete any other financing will adversely impact our ability to continue as a going concern. To address this issue, the Company is seeking additional capitalization to properly fund our efforts to become a self-sustaining financially viable entity.</font></p> <p style="TEXT-ALIGN: justify; FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> <strong>&nbsp;</strong></p> <!--EndFragment--></div> </div>
CY2014 us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
4326022 USD
CY2013 us-gaap Net Cash Provided By Used In Financing Activities Continuing Operations
NetCashProvidedByUsedInFinancingActivitiesContinuingOperations
909395 USD
CY2014 us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
-138886 USD
CY2013 us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
NetCashProvidedByUsedInInvestingActivitiesContinuingOperations
-178682 USD
CY2014 us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
-4380659 USD
CY2013 us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
NetCashProvidedByUsedInOperatingActivitiesContinuingOperations
-4785144 USD
CY2014 us-gaap Net Income Loss
NetIncomeLoss
-19565426 USD
CY2013 us-gaap Net Income Loss
NetIncomeLoss
-6382433 USD
CY2013Q2 us-gaap Net Income Loss
NetIncomeLoss
-1324000 USD
CY2013Q3 us-gaap Net Income Loss
NetIncomeLoss
-14960000 USD
CY2013Q4 us-gaap Net Income Loss
NetIncomeLoss
-1840000 USD
CY2014Q1 us-gaap Net Income Loss
NetIncomeLoss
-1441000 USD
CY2012Q2 us-gaap Net Income Loss
NetIncomeLoss
-1546000 USD
CY2012Q3 us-gaap Net Income Loss
NetIncomeLoss
-1551000 USD
CY2012Q4 us-gaap Net Income Loss
NetIncomeLoss
-1567000 USD
CY2013Q1 us-gaap Net Income Loss
NetIncomeLoss
-1717000 USD
CY2014 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-19565426 USD
CY2013 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-6382433 USD
CY2014Q1 us-gaap Notes Payable Related Parties Classified Current
NotesPayableRelatedPartiesClassifiedCurrent
1358120 USD
CY2013Q1 us-gaap Notes Payable Related Parties Classified Current
NotesPayableRelatedPartiesClassifiedCurrent
96000 USD
CY2014Q1 us-gaap Notes Payable Related Parties Noncurrent
NotesPayableRelatedPartiesNoncurrent
USD
CY2013Q1 us-gaap Notes Payable Related Parties Noncurrent
NotesPayableRelatedPartiesNoncurrent
1321664 USD
CY2013 us-gaap Operating Income Loss
OperatingIncomeLoss
-6324458 USD
CY2013Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
-1260000 USD
CY2013Q1 us-gaap Other Employee Related Liabilities Current
OtherEmployeeRelatedLiabilitiesCurrent
1502 USD
CY2013Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-1287000 USD
CY2013Q4 us-gaap Operating Income Loss
OperatingIncomeLoss
-1257000 USD
CY2014 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-8078 USD
CY2013 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
USD
CY2014 us-gaap Payments Of Financing Costs
PaymentsOfFinancingCosts
463169 USD
CY2013 us-gaap Payments Of Financing Costs
PaymentsOfFinancingCosts
206305 USD
CY2014 us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
USD
CY2014 us-gaap Operating Expenses
OperatingExpenses
5515330 USD
CY2013 us-gaap Operating Expenses
OperatingExpenses
5837174 USD
CY2014 us-gaap Operating Income Loss
OperatingIncomeLoss
-5078375 USD
CY2014Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
-1274000 USD
CY2012Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
-1541000 USD
CY2012Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-1554000 USD
CY2012Q4 us-gaap Operating Income Loss
OperatingIncomeLoss
-1549000 USD
CY2013Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
-1681000 USD
CY2014Q1 us-gaap Operating Leases Future Minimum Payments Due
OperatingLeasesFutureMinimumPaymentsDue
219500 USD
CY2014Q1 us-gaap Operating Leases Future Minimum Payments Due Current
OperatingLeasesFutureMinimumPaymentsDueCurrent
192800 USD
CY2014Q1 us-gaap Operating Leases Future Minimum Payments Due In Two Years
OperatingLeasesFutureMinimumPaymentsDueInTwoYears
26700 USD
CY2014 us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
178000 USD
CY2013 us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
204000 USD
CY2014 us-gaap Operating Loss Carryforwards Expiration Date
OperatingLossCarryforwardsExpirationDate
2020-12-31
CY2014Q1 us-gaap Other Assets Current
OtherAssetsCurrent
196505 USD
CY2013Q1 us-gaap Other Assets Current
OtherAssetsCurrent
138892 USD
CY2014Q1 us-gaap Other Employee Related Liabilities Current
OtherEmployeeRelatedLiabilitiesCurrent
4241 USD
CY2013 us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
22482 USD
CY2014 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
138886 USD
CY2013 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
156200 USD
CY2014Q1 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.001
CY2013Q1 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.001
CY2014Q1 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
2500000 shares
CY2013Q1 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
2500000 shares
CY2014Q1 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2013Q1 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2014Q1 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2013Q1 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2014Q1 us-gaap Preferred Stock Value
PreferredStockValue
USD
CY2013Q1 us-gaap Preferred Stock Value
PreferredStockValue
USD
CY2014 us-gaap Proceeds From Convertible Debt
ProceedsFromConvertibleDebt
4558301 USD
CY2013 us-gaap Proceeds From Convertible Debt
ProceedsFromConvertibleDebt
1294500 USD
CY2014 us-gaap Proceeds From Issuance Of Warrants
ProceedsFromIssuanceOfWarrants
326890 USD
CY2013 us-gaap Proceeds From Issuance Of Warrants
ProceedsFromIssuanceOfWarrants
USD
CY2014Q1 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
1485676 USD
CY2013Q1 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
1404750 USD
CY2014Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
408892 USD
CY2013Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
505485 USD
CY2014 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
24876 USD
CY2013 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
USD
CY2014 us-gaap Related Party Transaction Rate
RelatedPartyTransactionRate
0.06 pure
CY2014 us-gaap Repayments Of Convertible Debt
RepaymentsOfConvertibleDebt
USD
CY2013 us-gaap Repayments Of Convertible Debt
RepaymentsOfConvertibleDebt
82800 USD
CY2014 us-gaap Repayments Of Related Party Debt
RepaymentsOfRelatedPartyDebt
96000 USD
CY2013 us-gaap Repayments Of Related Party Debt
RepaymentsOfRelatedPartyDebt
96000 USD
CY2014 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
409111 USD
CY2013 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
425446 USD
CY2014Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-85876874 USD
CY2013Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-66311448 USD
CY2014 us-gaap Sales Revenue Net
SalesRevenueNet
2659943 USD
CY2013 us-gaap Sales Revenue Net
SalesRevenueNet
1100539 USD
CY2013Q2 us-gaap Sales Revenue Net
SalesRevenueNet
488000 USD
CY2013Q3 us-gaap Sales Revenue Net
SalesRevenueNet
580000 USD
CY2013Q4 us-gaap Sales Revenue Net
SalesRevenueNet
757000 USD
CY2014Q1 us-gaap Sales Revenue Net
SalesRevenueNet
835000 USD
CY2012Q2 us-gaap Sales Revenue Net
SalesRevenueNet
191000 USD
CY2012Q3 us-gaap Sales Revenue Net
SalesRevenueNet
234000 USD
CY2012Q4 us-gaap Sales Revenue Net
SalesRevenueNet
307000 USD
CY2013Q1 us-gaap Sales Revenue Net
SalesRevenueNet
368000 USD
CY2014Q1 us-gaap Stockholders Equity
StockholdersEquity
-2304495 USD
CY2014 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
5106219 USD
CY2013 us-gaap Selling General And Administrative Expense
SellingGeneralAndAdministrativeExpense
5411728 USD
CY2014 us-gaap Share Based Compensation
ShareBasedCompensation
678119 USD
CY2013 us-gaap Share Based Compensation
ShareBasedCompensation
693180 USD
CY2013Q1 us-gaap Stockholders Equity
StockholdersEquity
-2063275 USD
CY2012Q1 us-gaap Stockholders Equity
StockholdersEquity
3729520 USD
CY2005Q1 us-gaap Stock Issued During Period Shares Acquisitions
StockIssuedDuringPeriodSharesAcquisitions
2410811 shares
CY2014 us-gaap Stock Issued During Period Value Conversion Of Convertible Securities
StockIssuedDuringPeriodValueConversionOfConvertibleSecurities
4127201 USD
CY2014 us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
326890 USD
CY2014 us-gaap Unrealized Gain Loss On Derivatives
UnrealizedGainLossOnDerivatives
20848 USD
CY2013 us-gaap Unrealized Gain Loss On Derivatives
UnrealizedGainLossOnDerivatives
16486 USD
CY2014 us-gaap Use Of Estimates
UseOfEstimates
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px"> <strong><em>Use of Estimates</em></strong></p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> &nbsp;</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 24.5pt"> The preparation of 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 financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from estimated amounts. The Company&#39;s significant estimates include allowances for doubtful accounts, recoverability of long-lived assets, allowance for inventory obsolescence, deferred taxes and their accompanying valuations, valuation of derivative liabilities and valuation of common stock, warrants and stock options issued for products or services.</p> <p style="FONT: 10pt Times New Roman, Times, Serif; MARGIN: 0pt 0px; TEXT-INDENT: 0.5in"> <strong><em>&nbsp;</em></strong></p> <!--EndFragment--></div> </div>
CY2014 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
48850513 shares
CY2013 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
37760628 shares

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