2014 Q4 Form 10-Q Financial Statement

#000114420414067082 Filed on November 12, 2014

View on sec.gov

Income Statement

Concept 2014 Q4 2014 Q3 2013 Q3
Revenue $975.0K $825.0K $580.0K
YoY Change 28.8% 42.24% 147.86%
Cost Of Revenue $740.7K $600.0K $507.7K
YoY Change 25.48% 18.18% 47.41%
Gross Profit $235.0K $225.0K $72.00K
YoY Change 40.72% 212.5% -164.86%
Gross Profit Margin 24.1% 27.27% 12.41%
Selling, General & Admin $1.493M $1.511M $1.240M
YoY Change 14.34% 21.79% -7.52%
% of Gross Profit 635.21% 671.43% 1722.8%
Research & Development $99.05K $89.28K $118.4K
YoY Change -16.4% -24.62% 16.51%
% of Gross Profit 42.15% 39.68% 164.49%
Depreciation & Amortization $50.00K $50.00K $61.82K
YoY Change -2.87% -19.13% -33.31%
% of Gross Profit 21.28% 22.22% 85.87%
Operating Expenses $1.592M $1.600M $1.359M
YoY Change 11.78% 17.75% -5.83%
Operating Profit -$1.357M -$1.375M -$1.287M
YoY Change 7.96% 6.84% -17.18%
Interest Expense $48.61K $7.854K $512.8K
YoY Change 52.91% -98.47% 4260.71%
% of Operating Profit
Other Income/Expense, Net -$1.906K -$1.876K $0.00
YoY Change -100.0%
Pretax Income -$1.408M -$1.385M -$14.96M
YoY Change -23.51% -90.74% 864.45%
Income Tax $0.00 $0.00 $0.00
% Of Pretax Income
Net Earnings -$1.408M -$1.385M -$14.96M
YoY Change -23.48% -90.74% 864.54%
Net Earnings / Revenue -144.41% -167.88% -2579.31%
Basic Earnings Per Share
Diluted Earnings Per Share -$282.0K -$276.0K -$4.589M
COMMON SHARES
Basic Shares Outstanding 60.06M shares 60.04M shares 38.26M shares
Diluted Shares Outstanding 40.52M shares

Balance Sheet

Concept 2014 Q4 2014 Q3 2013 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $800.0K $100.0K $500.0K
YoY Change 300.0% -80.0% -70.59%
Cash & Equivalents $773.9K $103.3K $532.5K
Short-Term Investments
Other Short-Term Assets $100.0K $85.31K $40.69K
YoY Change -2.65% 109.69%
Inventory $100.0K $58.80K $43.31K
Prepaid Expenses
Receivables $400.0K $408.1K $387.7K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.400M $655.5K $1.004M
YoY Change 41.65% -34.72% -47.15%
LONG-TERM ASSETS
Property, Plant & Equipment $300.0K $393.4K $516.6K
YoY Change -35.36% -23.86% -13.9%
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 $500.0K $549.8K $753.2K
YoY Change -24.54% -27.01% -16.31%
TOTAL ASSETS
Total Short-Term Assets $1.400M $655.5K $1.004M
Total Long-Term Assets $500.0K $549.8K $753.2K
Total Assets $1.900M $1.205M $1.757M
YoY Change 15.08% -31.41% -37.24%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $700.0K $700.0K $600.0K
YoY Change -22.22% 16.67% 20.0%
Accrued Expenses $600.0K $500.0K $300.0K
YoY Change 50.0% 66.67% 200.0%
Deferred Revenue
YoY Change
Short-Term Debt $300.0K $0.00 $0.00
YoY Change
Long-Term Debt Due $1.300M $1.300M $100.0K
YoY Change 160.0% 1200.0% 0.0%
Total Short-Term Liabilities $3.000M $2.579M $1.043M
YoY Change 69.13% 147.36% 48.94%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $1.300M
YoY Change -100.0% -100.0% 0.0%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $0.00 $0.00 $1.300M
YoY Change -100.0% -100.0% 0.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.000M $2.579M $1.043M
Total Long-Term Liabilities $0.00 $0.00 $1.300M
Total Liabilities $3.000M $2.600M $2.335M
YoY Change -1.68% 11.34% 11.2%
SHAREHOLDERS EQUITY
Retained Earnings -$92.03M -$82.59M
YoY Change 11.42%
Common Stock $90.65M $82.02M
YoY Change 10.53%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$1.100M -$1.374M -$577.9K
YoY Change
Total Liabilities & Shareholders Equity $1.900M $1.205M $1.757M
YoY Change 15.08% -31.41% -37.24%

Cashflow Statement

Concept 2014 Q4 2014 Q3 2013 Q3
OPERATING ACTIVITIES
Net Income -$1.408M -$1.385M -$14.96M
YoY Change -23.48% -90.74% 864.54%
Depreciation, Depletion And Amortization $50.00K $50.00K $61.82K
YoY Change -2.87% -19.13% -33.31%
Cash From Operating Activities -$1.070M -$850.0K -$1.150M
YoY Change 27.38% -26.09% -7.26%
INVESTING ACTIVITIES
Capital Expenditures $0.00 -$70.00K -$10.00K
YoY Change 600.0% 0.0%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities $0.00 -$70.00K -$10.00K
YoY Change 600.0% 0.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 1.730M 860.0K 1.450M
YoY Change 220.37% -40.69% -2171.43%
NET CHANGE
Cash From Operating Activities -1.070M -850.0K -1.150M
Cash From Investing Activities 0.000 -70.00K -10.00K
Cash From Financing Activities 1.730M 860.0K 1.450M
Net Change In Cash 660.0K -60.00K 290.0K
YoY Change -320.0% -120.69% -121.97%
FREE CASH FLOW
Cash From Operating Activities -$1.070M -$850.0K -$1.150M
Capital Expenditures $0.00 -$70.00K -$10.00K
Free Cash Flow -$1.070M -$780.0K -$1.140M
YoY Change 27.38% -31.58% -7.32%

Facts In Submission

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<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><b>Note 2.&#160;Nature of the Business</b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> &#160; <font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt">Cryoport Inc. is a Nevada corporation originally incorporated under the name G.T.5-Limited (&#8220;GT5&#8221;) 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. 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 an operating company under Cryoport, Inc. We became &#8220;publicly held&#8221; by the reverse merger with GT5 described above. Over time the Company has transitioned from being a development company to a fully operational public company, providing global cryogenic logistics solutions to the biotechnology and life sciences industries.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt">Through a combination of purpose-built proprietary packaging, information technology and specialized cold chain logistics knowhow, we provide cryogenic logistics solutions to the life sciences industry. We view our solutions as disruptive to the &#8220;older technologies&#8221; of liquid nitrogen and dry ice, in that our solutions are comprehensive and combine our competencies in configurations that are customized to our clients requirements. We provide comprehensive, reliable, economic alternatives to all existing solutions and services utilized for frozen shipping in the life sciences industry (e.g., 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). We have the ability to monitor, record and archive crucial information for each shipment that can be used for scientific and/or regulatory purposes.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt">Our Cryoport Express&#174; Solutions include a sophisticated cloud-based logistics management software platform that we have branded as the Cryoportal&#153;. The Cryoportal&#153; supports the management of an entire shipment process through a single interface, including initial order input, document preparation, customs clearance, courier management, shipment tracking, issue resolution, and delivery. It provides unique and incisive information dashboards and validation documentation for every shipment. The Cryoportal&#153; records and retains a fully documented &#8220;chain-of-custody&#8221; and, at the client&#8217;s option, &#8220;chain-of-condition&#8221; 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 clients to meet exacting requirements necessary for scientific work and for regulatory purposes.</font></div> &#160; <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">Our Cryoport Express&#174; Solutions also include our liquid nitrogen dry vapor shippers. We have branded our packaging as our Cryoport Express&#174; Shippers. Cryoport Express&#174; Shippers are cost-effective and reusable cryogenic transport containers (our standard shipper is a patented vacuum flask) utilizing an innovative application of &#8220;dry vapor&#8221; liquid nitrogen (&#8220;LN2&#8221;) technology. Cryoport Express&#174; Shippers are International Air Transport Association (&#8220;IATA&#8221;) certified and validated to maintain stable temperatures of minus 150&#176; C and below for a 10-plus day dynamic shipment period. The Company currently features three Cryoport Express&#174; Shipper packages, the Standard Dry Shipper (holding up to 75-2.0 ml vials), the High Volume Dry Shipper (holding up to 500-2.0 ml vials) and the recently introduced Cryoport Express&#174; CXVC1 Shipper (holding up to 1,500-2.0ml vials). We assist clients with internal secondary packaging as well (e.g., vials, canes, straws, plates, etc.)</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">Our most used solution is the &#8220;turnkey&#8221; solution, which can be accessed through our cloud-based Cryoportal&#153; or by contacting Cryoport Client Care for order entry. Once an order is placed, we ship a fully charged Cryoport Express&#174; Shipper package to the client who conveniently loads their frozen commodity into the inner chamber of the shipper package.&#160; The customer then closes the shipper package and reseals the shipping box displaying the next recipient&#8217;s address (&#8220;Flap A&#8221;) for pre-arranged carrier pick up.&#160; Cryoport arranges for the pick-up of the parcel by a shipping service provider for delivery to the client&#8217;s intended recipient.&#160; The recipient simply opens the shipper package and removes the frozen commodity that has been shipped.&#160; The recipient then reseals the package, displaying the nearest Cryoport Operations Center address (&#8220;Flap B&#8221;) and sets it out for pre-arranged carrier pick-up. The Cryoport Express&#174; Shipper is returned to the Cryoport Operations Center for cleaning, quality assurance testing, recharging and reuse.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">Recognizing that clients in the life sciences industry have varying requirements, in late 2012, we shifted our focus from being a simple service providing cryogenic shippers and software to being a comprehensive cryogenic logistics solutions provider to the life sciences industry. This was accomplished by unbundling our technologies, establishing customer facing solutions, and taking a consultative approach to the market. Today, in addition to our standard &#8220;Turn-key Solution,&#8221; we also provide the following customer facing, value-added solutions to address our various clients&#8217; needs:</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -0.25in; MARGIN: 0pt 0px 0pt 0.5in; FONT: 10pt Times New Roman, Times, Serif"> &#160;</div> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"></div> </td> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"><font style="FONT-FAMILY:Symbol">&#183;</font></div> </td> <td> <div style="CLEAR:both;CLEAR: both"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> &#8220;<strong><i>Customer Staged Solution</i></strong>,&#8221; under which we supply an inventory of our Cryoport Express<sup style="font-style:normal">&#174;</sup> Shipper packages to our customer, in an uncharged state, enabling our customer (after training/certification) to charge them with liquid nitrogen and use our Cryoportal&#153; 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 for cleaning, quality assurance testing and reuse.</font></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -0.25in; MARGIN: 0pt 0px 0pt 0.5in; FONT: 10pt Times New Roman, Times, Serif"> &#160;</div> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"></div> </td> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"><font style="FONT-FAMILY:Symbol">&#183;</font></div> </td> <td> <div style="CLEAR:both;CLEAR: both"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> &#8220;<strong><i>Customer Managed Solution</i></strong>,&#8221; a limited customer implemented solution whereby we supply our Cryoport Express<sup style="font-style:normal">&#174;</sup> Shippers packages 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. 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This solution can be private labeled as long as the client meets the minimum required shipping volume and &#8220;<i>powered by Cryoport<sup style="font-style:normal">SM</sup></i>&#8221; appears prominently on the offering software interface and packaging.</font></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -0.25in; MARGIN: 0pt 0px 0pt 0.5in; FONT: 10pt Times New Roman, Times, Serif"> &#160;</div> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"></div> </td> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"><font style="FONT-FAMILY:Symbol">&#183;</font></div> </td> <td> <div style="CLEAR:both;CLEAR: both"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> &#8220;<strong><i>Integrated Solution</i></strong>&#8221;&#160;is our most comprehensive and complex solution. 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In this model we supply our Cryoport Express<sup style="font-style:normal">&#174;</sup> Shipper package to ship and store cryogenically preserved life science products for up to 6 days (or longer periods with supplementary shippers) at a point-of-care site, with the Cryoport Express<sup style="font-style:normal">&#174;</sup> Shipper serving as a temporary freezer/repository enabling the efficient and effective distribution of temperature sensitive allogeneic cell-based therapies without the expense, inconvenience, and potential costly failure of an on-sight, cryopreservation device. Our customer service professionals monitor each shipment and the return of the shipper for cleaning, quality assurance testing and reuse.</font></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -0.25in; MARGIN: 0pt 0px 0pt 0.5in; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <table style="MARGIN-TOP: 0pt; FONT: 10pt Times New Roman, Times, Serif; MARGIN-BOTTOM: 0pt" cellspacing="0" cellpadding="0" width="100%"> <tr style="VERTICAL-ALIGN: top"> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"></div> </td> <td style="WIDTH: 0.25in"> <div style="CLEAR:both;CLEAR: both"><font style="FONT-FAMILY:Symbol">&#183;</font></div> </td> <td> <div style="CLEAR:both;CLEAR: both"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> &#8220;<strong><i>Personalized Medicine and Cell-based Immunotherapy Solution</i></strong>&#8221; is designed for autologous therapies.&#160;&#160;&#160;In this model our Cryoport Express<sup style="font-style:normal">&#174;</sup> Shipper package serves as an enabling technology for the safe transportation of manufactured 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&#8217;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.&#160; If required, the Cryoport Express<sup style="font-style:normal">&#174;</sup> Shipper can then serve as a temporary freezer/repository to allow the efficient distribution of this personalized medicine to the patient when and where the medical provider needs it most without the expense, inconvenience, and potential costly failure of an on-sight, cryopreservation device. Our customer services professionals monitor each shipment and the return of the shipper for cleaning, quality assurance testing and reuse.</font></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;In December&#160;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. 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In October 2013, the agreement was further amended to further expand Cryoport&#8217;s role to include the logistics management for a second poultry vaccine.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">In January 2013, we entered into a master agreement with Federal Express Corporation (&#8220;FedEx&#8221;) (&#8220;FedEx Agreement&#8221;) renewing these services and providing FedEx with a non-exclusive license and right to use a customized version of our Cryoportal<sup style="font-style:normal">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. FedEx has the right to terminate this agreement at any time for convenience upon 180 days&#8217; notice.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">Under our FedEx Agreement, we provide frozen shipping logistics services through the combination of our purpose-built proprietary technologies and turnkey management processes. 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In addition, FedEx has developed a FedEx branded version of the Cryoportal<sup style="font-style:normal">TM</sup> software platform, which is &#8220;<i>powered by Cryoport<sup style="font-style:normal">SM</sup></i>&#8221; for use by FedEx and its customers giving them access to the full capabilities of our cloud-based logistics management software platform.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 24.5pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">In February 2014, we entered into a services agreement with Liventa Bioscience, Inc. (&#8220;Liventa&#8221;), a privately-held, commercial stage biotechnology company focused on cell-based, advanced biologics in the orthopedic industry. Under this agreement, Liventa will use Cryoport&#8217;s Regenerative Medicine<strong>&#160;</strong> Point-of-Care Repository Solution for the logistics of its cell-based therapies requiring cryogenic temperatures and also provide Cryoport Express<sup style="font-style:normal">&#174;</sup> Solutions to other biologics suppliers within the orthopedic arena. The agreement combines Cryoport&#8217;s proprietary, purpose-built cold chain logistics solutions for cell-based and advanced biologic tissue forms with Liventa&#8217;s distribution capability to orthopedic care providers.</font> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">The implementation of Cryoport&#8217;s Regenerative Medicine<strong>&#160;</strong> Point-of-Care Repository Solution will eliminate the 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 confidently serve orthopedic practices, surgical centers, pain clinics, hospitals and, eventually, pharmacies and specialty care providers.</font> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">The agreement has an initial three-year term and may be renewed for consecutive three-year terms, unless earlier terminated by either party. Liventa also agreed to certain performance criteria and the issuance</font> of <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 150,000</font> shares of its common stock to Cryoport in exchange for the exclusive right to offer, market and promote Cryoport Express<sup style="font-style:normal">&#174;</sup> Solutions for cellular-based therapies requiring cryogenic temperatures for use in orthopedic in the United States.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">In June 2014, we entered into a master agreement with LifeConEx, a part of DHL Global Forwarding (&#8220;DHL&#8221;). This relationship with DHL is a further implementation of the Company&#8217;s expansion of distribution partnerships under the <i>&#8220;powered by Cryoport<sup style="font-style:normal">SM</sup></i>&#8221; model described above, allowing us to expand our sales and marketing reach through our partners and build awareness of the benefits of our validated cryogenic solution offerings. DHL can now enhance and supplement its cold chain logistics offerings to its life sciences and healthcare customers with Cryoport&#8217;s validated cryogenic solutions. DHL added 15 additional certified Life Sciences stations in the second quarter of 2014 bringing the Thermonet network to 60 stations in operation. Over the course of rolling out our new relationship, this expanded network will offer Cryoport&#8217;s cryogenic solutions under the DHL brands as &#8220;<i>powered by Cryoport<sup style="font-style:normal">SM&#8221;</sup></i>. &#160;In addition, DHL&#8217;s customers will be able to have direct access to our cloud-based order entry and tracking portal to order Cryoport Express<sup style="font-style:normal">&#174;</sup> Solutions and receive preferred DHL shipping rates and discounts. Our proprietary logistics management operating platform, the Cryoportal<sup style="font-style:normal">TM</sup>, is integrated to DHL&#8217;s tracking and billing systems to provide DHL life sciences and healthcare customers with a seamless way of accessing critical information regarding shipments of biological material worldwide.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">In October 2014, we added United Parcel Services, Inc. (&#8220;UPS&#8221;) as our third major distributor by entering into an agreement with UPS Oasis Supply Corporation, a part of&#160;UPS, whereby UPS will offer our validated and comprehensive cryogenic solutions to its life sciences and healthcare customers on a global basis. This relationship with UPS is a further implementation of the Company&#8217;s expansion of distributors under the <i> &#8220;powered by Cryoport<sup style="font-style:normal">SM</sup></i>&#8221; model described above, allowing us to further expand our sales and marketing reach through our partners and build awareness of the benefits of our validated cryogenic solution offerings through UPS.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">Over the course of rolling out our new relationship with UPS, UPS customers will have direct access to our cloud-based order entry and tracking portal to order Cryoport Express<sup style="font-style:normal">&#174;</sup> Solutions and&#160;gain access to UPS&#8217;s broad array of domestic and international shipping and logistics solutions at competitive prices. Our proprietary logistics management operating platform, the Cryoportal<sup style="font-style:normal">TM</sup>, is integrated to UPS&#8217;s tracking and billing systems to provide UPS life sciences and healthcare customers with a seamless way of accessing critical information regarding shipments of biological material worldwide.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">This relationship with UPS represents the third and final agreement with the &#8220;big three&#8221; global integrators. Cryoport now serves and supports the three largest integrators in the world with its advanced cryogenic logistics solutions for life sciences. We operate with each independently and confidentially support their respective strategies. These agreements represent a significant validation of our solutions and the way we conduct our business.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">In summary, we serve the life sciences industry with cryogenic logistics solutions that are advanced, comprehensive, reliable, validated, and economical. Our clients include those companies and institutions that have logistics requirements for stem cells, cell lines, tissue, vaccines, in-vitro fertilization, cord blood, and other temperature sensitive commodities of life sciences.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt"></font><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">Companies or institutions such as therapy developers for personalized medicine, research, bio-pharmaceuticals, contract research organizations, diagnostic laboratories, in-vitro fertilization, cord blood, vaccine manufacturers, animal husbandry, and other producers of commodities requiring reliable logistics solutions for logistics are amongst our clients. These companies usually 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 three to nine months or longer to complete prior to a potential customer adopting one or more of our Cryoport Express<sup style="font-style:normal">&#174;</sup> Solutions.</font>&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> <strong><i>Going Concern</i></strong></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 24.5pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 24.5pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The unaudited condensed consolidated financial statements have been prepared using the accrual method of accounting in accordance with 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. At September 30, 2014, we had an accumulated deficit of $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">92.0</font> million. During the six months ended September 30, 2014, we used cash in operations of $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">1.8</font> million and had a net loss of $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">3.7</font> million.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 24.5pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 24.5pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> <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 style="font-style:normal">&#174;</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 September 30, 2014, additional funds raised subsequent to September 30, 2014 through the current convertible preferred stock offering (see Note 9), together with the revenues generated from our services will be sufficient to sustain our planned operations into the third 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></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 24.5pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 24.5pt; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> <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 style="font-style:normal">&#174;</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&#8217;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></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
dei Document Type
DocumentType
10-Q
dei Amendment Flag
AmendmentFlag
false
dei Document Period End Date
DocumentPeriodEndDate
2014-09-30
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2015
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q2
dei Entity Registrant Name
EntityRegistrantName
Cryoport, Inc.
dei Entity Central Index Key
EntityCentralIndexKey
0001124524
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--03-31
dei Entity Filer Category
EntityFilerCategory
Smaller Reporting Company
dei Trading Symbol
TradingSymbol
CYRX
CY2014Q4 dei Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
60057846 shares
cyrx Maturity Period Of Highly Liquid Investments
MaturityPeriodOfHighlyLiquidInvestments
P90D
us-gaap Induced Conversion Of Convertible Debt Expense
InducedConversionOfConvertibleDebtExpense
13161017 USD
us-gaap Induced Conversion Of Convertible Debt Expense
InducedConversionOfConvertibleDebtExpense
0 USD
CY2013Q3 us-gaap Induced Conversion Of Convertible Debt Expense
InducedConversionOfConvertibleDebtExpense
13161017 USD
CY2014Q3 us-gaap Induced Conversion Of Convertible Debt Expense
InducedConversionOfConvertibleDebtExpense
0 USD
us-gaap Debt Conversion Original Debt Amount1
DebtConversionOriginalDebtAmount1
0 USD
us-gaap Debt Conversion Original Debt Amount1
DebtConversionOriginalDebtAmount1
1766997 USD
CY2014Q3 us-gaap Debt Instrument Interest Rate Stated Percentage
DebtInstrumentInterestRateStatedPercentage
0.05 pure
CY2014Q1 cyrx Accrued Interest Related Party
AccruedInterestRelatedParty
802600 USD
CY2014Q3 cyrx Accrued Interest Related Party
AccruedInterestRelatedParty
818700 USD
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
9000 USD
CY2014Q3 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
9000 USD
CY2014Q3 us-gaap Preferred Stock Liquidation Preference
PreferredStockLiquidationPreference
12.00

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