2015 Q3 Form 10-Q Financial Statement

#000114420415046982 Filed on August 06, 2015

View on sec.gov

Income Statement

Concept 2015 Q3 2015 Q2 2015 Q1
Revenue $1.437M $1.431M $1.198M
YoY Change 74.19% 52.73% 43.47%
Cost Of Revenue $1.001M $943.2K $830.0K
YoY Change 66.77% 57.92% 20.29%
Gross Profit $436.0K $487.9K $370.0K
YoY Change 93.78% 43.93% 158.74%
Gross Profit Margin 30.34% 34.09% 30.88%
Selling, General & Admin $2.160M $2.026M $1.980M
YoY Change 42.98% 41.92% 47.76%
% of Gross Profit 495.41% 415.31% 535.14%
Research & Development $100.3K $77.72K $90.00K
YoY Change 12.34% -1.92% 12.5%
% of Gross Profit 23.0% 15.93% 24.32%
Depreciation & Amortization $40.00K $45.67K $40.00K
YoY Change -20.0% -17.17% -20.0%
% of Gross Profit 9.17% 9.36% 10.81%
Operating Expenses $2.258M $2.104M $2.060M
YoY Change 41.13% 39.61% 45.07%
Operating Profit -$1.822M -$1.616M -$1.693M
YoY Change 32.49% 38.37% 32.89%
Interest Expense $601.0K $303.8K -$240.0K
YoY Change 7552.18% -73.09% 50.0%
% of Operating Profit
Other Income/Expense, Net -$2.707K -$975.00 $0.00
YoY Change 44.3% -202.31% -100.0%
Pretax Income -$2.425M -$1.921M -$1.940M
YoY Change 75.15% -16.32% 34.72%
Income Tax $0.00 $3.320K $1.600K
% Of Pretax Income
Net Earnings -$2.425M -$1.924M -$1.937M
YoY Change 75.12% -16.23% 34.42%
Net Earnings / Revenue -168.78% -134.46% -161.69%
Basic Earnings Per Share
Diluted Earnings Per Share -$373.3K -$379.4K -$386.5K
COMMON SHARES
Basic Shares Outstanding 7.157M shares 5.026M shares 60.06M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2015 Q3 2015 Q2 2015 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $7.100M $2.400M $1.400M
YoY Change 7000.0% 1100.0% 250.0%
Cash & Equivalents $7.060M $2.386M $1.405M
Short-Term Investments
Other Short-Term Assets $200.0K $263.2K $97.34K
YoY Change 134.43% 223.29% -50.47%
Inventory $100.0K $104.8K $69.68K
Prepaid Expenses
Receivables $700.0K $757.4K $589.7K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $8.000M $3.511M $2.162M
YoY Change 1120.37% 348.23% 94.48%
LONG-TERM ASSETS
Property, Plant & Equipment $800.0K $381.4K $307.9K
YoY Change 103.37% 4.56% -24.69%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $0.00
YoY Change
Total Long-Term Assets $900.0K $508.7K $444.7K
YoY Change 63.7% -6.06% -25.67%
TOTAL ASSETS
Total Short-Term Assets $8.000M $3.511M $2.162M
Total Long-Term Assets $900.0K $508.7K $444.7K
Total Assets $8.900M $4.020M $2.607M
YoY Change 638.39% 203.42% 52.44%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $900.0K $600.0K $800.0K
YoY Change 28.57% 20.0% 33.33%
Accrued Expenses $400.0K $400.0K $700.0K
YoY Change -20.0% -20.0% 40.0%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $1.500M
YoY Change
Long-Term Debt Due $1.000M $1.000M $0.00
YoY Change -23.08% -23.08% -100.0%
Total Short-Term Liabilities $2.200M $1.973M $2.996M
YoY Change -14.69% -17.8% -25.36%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $0.00 $0.00 $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $2.200M $1.973M $2.996M
Total Long-Term Liabilities $0.00 $0.00 $0.00
Total Liabilities $2.200M $1.973M $3.023M
YoY Change -15.38% -17.8% -24.7%
SHAREHOLDERS EQUITY
Retained Earnings -$104.2M -$97.77M
YoY Change 17.15% 13.85%
Common Stock $106.2M $97.35M
YoY Change 20.89% 16.49%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $6.700M $2.047M -$416.3K
YoY Change
Total Liabilities & Shareholders Equity $8.900M $4.020M $2.607M
YoY Change 638.39% 203.42% 52.44%

Cashflow Statement

Concept 2015 Q3 2015 Q2 2015 Q1
OPERATING ACTIVITIES
Net Income -$2.425M -$1.924M -$1.937M
YoY Change 75.12% -16.23% 34.42%
Depreciation, Depletion And Amortization $40.00K $45.67K $40.00K
YoY Change -20.0% -17.17% -20.0%
Cash From Operating Activities -$1.070M -$1.870M -$1.290M
YoY Change 25.88% -303.93% 5.74%
INVESTING ACTIVITIES
Capital Expenditures -$230.0K $109.6K $0.00
YoY Change 228.57%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$230.0K -$110.0K $0.00
YoY Change 228.57%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $3.897M $5.000M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 5.970M 2.960M 1.920M
YoY Change 594.19% 311.11% 40.15%
NET CHANGE
Cash From Operating Activities -1.070M -1.870M -1.290M
Cash From Investing Activities -230.0K -110.0K 0.000
Cash From Financing Activities 5.970M 2.960M 1.920M
Net Change In Cash 4.670M 980.0K 630.0K
YoY Change -7883.33% 6.87% 320.0%
FREE CASH FLOW
Cash From Operating Activities -$1.070M -$1.870M -$1.290M
Capital Expenditures -$230.0K $109.6K $0.00
Free Cash Flow -$840.0K -$1.980M -$1.290M
YoY Change 7.69% -315.88% 5.74%

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: 0in 0in 0pt; size: 8.5in 11.0in" align="justify"><b><font style="FONT-SIZE: 10pt">Note 2.&#160;Nature of the Business</font></b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt; size: 8.5in 11.0in" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; size: 8.5in 11.0in" align="justify">The Company 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, in exchange for <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 200,901</font> shares of our common stock (which represented approximately <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 81</font>% 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 an operating company under Cryoport, Inc. We became &#8220;publicly held&#8221; by the reverse merger with GT5 described above. Over time the Company transitioned from being a development company to a fully operational public company in early 2011, providing global cryogenic logistics solutions to the biotechnology and life sciences industries.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; size: 8.5in 11.0in"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; size: 8.5in 11.0in" align="justify">Since fiscal year 2011, the Company has taken significant steps towards commercialization of the Cryoport Express<sup style="font-style:normal">&#174;</sup> logistics solutions in validating, perfecting and expanding its features. The Company has now managed shipments of its Cryoport Express<sup style="font-style:normal">&#174;</sup> Shippers through its Cryoportal&#153; into and out of more than 80 countries, handling a vast array of different biological products and specimens.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 27pt; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; size: 8.5in 11.0in" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; size: 8.5in 11.0in" align="justify">We provide cryogenic logistics solutions to the life sciences industry through a combination of purpose-built proprietary packaging, information technology and specialized cold chain logistics knowhow. We view our solutions as disruptive to the &#8220;older technologies&#8221; of dry ice and liquid nitrogen, in that our solutions are comprehensive and combine our competencies in configurations that are customized to our client&#8217;s requirements. We provide comprehensive, reliable, economic alternatives to all existing logistics solutions and services utilized for frozen shipping in the life sciences industry (e.g., personalized medicine, stem cells, cell lines, vaccines, diagnostic materials, semen, eggs, embryos, cord blood, bio-pharmaceuticals, infectious substances, and other commodities that require continuous exposure to cryogenic or frozen temperatures). We provide the ability to monitor, record and archive crucial information for each shipment that can be used for scientific and regulatory purposes.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; size: 8.5in 11.0in" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif; size: 8.5in 11.0in" align="justify">Our Cryoport Express<sup style="font-style:normal">&#174;</sup> Solutions include a sophisticated cloud-based logistics operating platform, which is branded as the Cryoportal&#153;. The Cryoportal&#153; supports the management of the entire shipment and logistics process through a single interface, including initial order input, document preparation, customs clearance, courier management, shipment tracking, issue resolution, and delivery. In addition, 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 proof of regulatory compliance during the logistics phase.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;CLEAR: both"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">The branded packaging for our Cryoport Express<sup style="font-style:normal">&#174;</sup> Solutions includes our liquid nitrogen dry vapor shippers, the Cryoport Express<sup style="font-style:normal">&#174;</sup> Shippers. The Cryoport Express<sup style="font-style:normal">&#174;</sup> Shippers are cost-effective and reusable cryogenic transport shippers (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<sup style="font-style:normal">&#174;</sup> 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-day dynamic shipment period. The Company currently features three Cryoport Express<sup style="font-style:normal">&#174;</sup> Shippers: 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<sup style="font-style:normal">&#174;</sup> CXVC1 Shipper (holding up to 1,500 2.0 ml vials). In addition, we assist clients with internal secondary packaging as well (e.g., vials, canes, straws, plates, etc.)</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">Our most used solution is the &#8220;turnkey&#8221; solution, which can be accessed directly through our cloud-based Cryoportal&#153; or by contacting Cryoport Client Care for order entry. Once an order is placed and cleared, we ship a fully charged Cryoport Express<sup style="font-style:normal">&#174;</sup> Shipper to the client <font style="COLOR: #1a1a1a">who conveniently loads its frozen commodity into the inner chamber of the</font> Cryoport Express<sup style="font-style:normal">&#174;</sup> Shipper<font style="COLOR: #1a1a1a">. 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.</font> Cryoport arranges for the pick-up of the parcel by a shipping service provider, which is designated by the client or chosen by Cryoport, for delivery to the client&#8217;s intended recipient. The recipient simply opens the shipper package and removes the frozen commodity that has been shipped. The recipient then reseals the package, displaying the nearest Cryoport Operations Center address (&#8220;Flap B&#8221;), making it ready for pre-arranged carrier pick-up. The When the Cryoport Operations Center receives the Cryoport Express<sup style="font-style:normal">&#174;</sup> Shipper, it is cleaned, put through quality assurance testing, and returned to inventory for reuse.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">In late 2012, we shifted our focus to become a comprehensive cryogenic logistics solutions provider. Recognizing that clients in the life sciences industry have varying requirements, we unbundled 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; described above, we also provide the following customer facing, value-added solutions to address our various clients&#8217; needs:</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;CLEAR: both"> &#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;size: 8.5in 11.0in"> <table style="LINE-HEIGHT: 115%; FONT-FAMILY: Calibri,sans-serif; FONT-SIZE: 11pt" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; WIDTH: 0.3pt; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top"></td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; WIDTH: 0.25in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top" width="24"> <div style="CLEAR:both;MARGIN: 0in 0in 0pt; FONT-FAMILY: Times New Roman,serif; FONT-SIZE: 12pt"> <font style="FONT-FAMILY: Symbol; FONT-SIZE: 10pt"> &#183;</font></div> </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top"> <div style="CLEAR:both;MARGIN: 0in 0in 0pt; FONT-FAMILY: Times New Roman,serif; FONT-SIZE: 12pt" align="justify"><font style="FONT-SIZE: 10pt"> &#8220;<b><i>Customer Staged Solution</i></b>,&#8221; designed for clients making 50 or more shipments per month. Under this solution, we supply an inventory of our Cryoport Express<sup style="font-style:normal">&#174;</sup> Shippers 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 to us for cleaning, quality assurance testing and reuse.</font></div> </td> </tr> </table> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -0.25in; MARGIN: 0in 0in 0pt 0.5in; size: 8.5in 11.0in" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;size: 8.5in 11.0in"> <table style="LINE-HEIGHT: 115%; FONT-FAMILY: Calibri,sans-serif; FONT-SIZE: 11pt" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; WIDTH: 0.3pt; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top"></td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; WIDTH: 0.25in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top" width="24"> <div style="CLEAR:both;MARGIN: 0in 0in 0pt; FONT-FAMILY: Times New Roman,serif; FONT-SIZE: 12pt"> <font style="FONT-FAMILY: Symbol; FONT-SIZE: 10pt"> &#183;</font></div> </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top"> <div style="CLEAR:both;MARGIN: 0in 0in 0pt; FONT-FAMILY: Times New Roman,serif; FONT-SIZE: 12pt" align="justify"><font style="FONT-SIZE: 10pt"> &#8220;<b><i>Customer Managed Solution</i></b>,&#8221; a limited customer implemented solution whereby we supply our Cryoport Express<sup style="font-style:normal">&#174;</sup> 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. .</font></div> </td> </tr> </table> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -0.25in; MARGIN: 0in 0in 0pt 0.5in; size: 8.5in 11.0in" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;size: 8.5in 11.0in"> <table style="LINE-HEIGHT: 115%; FONT-FAMILY: Calibri,sans-serif; FONT-SIZE: 11pt" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; WIDTH: 0.3pt; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top"></td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; WIDTH: 0.25in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top" width="24"> <div style="CLEAR:both;MARGIN: 0in 0in 0pt; FONT-FAMILY: Times New Roman,serif; FONT-SIZE: 12pt"> <font style="FONT-FAMILY: Symbol; FONT-SIZE: 10pt"> &#183;</font></div> </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top"> <div style="CLEAR:both;MARGIN: 0in 0in 0pt; FONT-FAMILY: Times New Roman,serif; FONT-SIZE: 12pt" align="justify"><font style="FONT-SIZE: 10pt">&#8220;<b><i>powered by Cryoport</i></b><sup style="font-style:normal">SM</sup>,&#8221; available to providers of shipping and delivery services who seek to offer a &#8220;branded&#8221; cryogenic logistics solution as part of their service offerings, with &#8220;<i>powered by Cryoport<sup style="font-style:normal">SM</sup></i>&#8221; appearing prominently on the offering software interface and packaging. This solution can also be private labeled upon meeting certain requirements, such as minimum required shipping volumes.</font></div> </td> </tr> </table> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -0.25in; MARGIN: 0in 0in 0pt 0.5in; size: 8.5in 11.0in" align="justify"><font style="FONT-SIZE: 10pt"> &#160;&#160;&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;size: 8.5in 11.0in"> <table style="LINE-HEIGHT: 115%; FONT-FAMILY: Calibri,sans-serif; FONT-SIZE: 11pt" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; WIDTH: 0.3pt; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top"></td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; WIDTH: 0.25in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top" width="24"> <div style="CLEAR:both;MARGIN: 0in 0in 0pt; FONT-FAMILY: Times New Roman,serif; FONT-SIZE: 12pt"> <font style="FONT-FAMILY: Symbol; FONT-SIZE: 10pt"> &#183;</font></div> </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top"> <div style="CLEAR:both;MARGIN: 0in 0in 0pt; FONT-FAMILY: Times New Roman,serif; FONT-SIZE: 12pt" align="justify"><font style="FONT-SIZE: 10pt"> &#8220;<b><i>Integrated Solution,</i></b>&#8221; which is our outsource solution. It is our most comprehensive solution and involves our management of the entire cryogenic logistics process for our client, including Cryoport employees at the client&#8217;s site to manage the client&#8217;s cryogenic logistics function in total.</font></div> </td> </tr> </table> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -0.25in; MARGIN: 0in 0in 0pt 0.5in; size: 8.5in 11.0in" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;size: 8.5in 11.0in"> <table style="LINE-HEIGHT: 115%; FONT-FAMILY: Calibri,sans-serif; FONT-SIZE: 11pt" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; WIDTH: 0.3pt; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top"></td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; WIDTH: 0.25in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top" width="24"> <div style="CLEAR:both;MARGIN: 0in 0in 0pt; FONT-FAMILY: Times New Roman,serif; FONT-SIZE: 12pt"> <font style="FONT-FAMILY: Symbol; FONT-SIZE: 10pt"> &#183;</font></div> </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top"> <div style="CLEAR:both;MARGIN: 0in 0in 0pt; FONT-FAMILY: Times New Roman,serif; FONT-SIZE: 12pt" align="justify"><font style="FONT-SIZE: 10pt"> &#8220;<b><i>Regenerative Medicine Point-of-Care Repository Solution,</i></b>&#8221; designed for allogeneic therapies. In this model we supply our Cryoport Express<sup style="font-style:normal">&#174;</sup> Shipper 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 throughout the predetermined process including the return of the shipper to us. When the Cryoport Operations Center receives the Cryoport Express<sup style="font-style:normal">&#174;</sup> Shipper package it is cleaned, put through quality assurance testing, and returned to inventory for reuse.</font></div> </td> </tr> </table> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: -0.25in; MARGIN: 0in 0in 0pt 0.5in; size: 8.5in 11.0in" align="justify"><font style="FONT-SIZE: 10pt"> &#160;&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;size: 8.5in 11.0in"> <table style="LINE-HEIGHT: 115%; FONT-FAMILY: Calibri,sans-serif; FONT-SIZE: 11pt" border="0" cellspacing="0" cellpadding="0"> <tr> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; WIDTH: 0.3pt; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top"></td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; WIDTH: 0.25in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top" width="24"> <div style="CLEAR:both;MARGIN: 0in 0in 0pt; FONT-FAMILY: Times New Roman,serif; FONT-SIZE: 12pt"> <font style="FONT-FAMILY: Symbol; FONT-SIZE: 10pt"> &#183;</font></div> </td> <td style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0in; PADDING-RIGHT: 0in; PADDING-TOP: 0in" valign="top"> <div style="CLEAR:both;MARGIN: 0in 0in 0pt; FONT-FAMILY: Times New Roman,serif; FONT-SIZE: 12pt" align="justify"><font style="FONT-SIZE: 10pt"> &#8220;<b><i>Personalized Medicine and Cell-based Immunotherapy Solution,</i></b>&#8221; designed for autologous therapies. In this model our Cryoport Express<sup style="font-style:normal">&#174;</sup> Shipper 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 throughout the predetermined process, including the return of the shipper to us. When the Cryoport Operations Center receives the Cryoport Express<sup style="font-style:normal">&#174;</sup> Shipper package it is cleaned, put through quality assurance testing, and returned to inventory for reuse.</font></div> </td> </tr> </table> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt; size: 8.5in 11.0in"> <font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><b>Strategic Logistics Alliances</b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 24.5pt; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">We have sought to establish strategic alliances as a method of marketing our solutions providing minus 150&#176; C shipping conditions to the life sciences industry. We have focused our efforts on leading companies in the logistics services industry as well as participants in the life sciences industry. In connection with our alliances with providers of shipping services, we refer to their offerings as &#8220;<i>powered by Cryoport</i><sup style="font-style:normal">SM</sup>&#8221; to reflect our solutions being integrated into our alliance partner&#8217;s services.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 24.5pt; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">Cryoport now serves and supports the three largest integrators in the world, responsible for over <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 85</font>% of worldwide airfreight, with its advanced cryogenic logistics solutions for life sciences. We operate with each independently and confidentially in support of their respective market and sales strategies. We maintain our independent partnerships with strict confidentiality guidelines within the Company. These agreements represent a significant validation of our solutions and the way we conduct our business.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 24.5pt; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><b>FedEx.</b> In January 2013, we entered into a master agreement with Federal Express Corporation (&#8220;FedEx&#8221;) (the &#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.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 24.5pt; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">Under our FedEx Agreement, we provide frozen shipping logistics services through the combination of our purpose-built proprietary technologies and turnkey management processes. FedEx markets and sells Cryoport&#8217;s services for frozen temperature-controlled cold chain transportation as its FedEx<sup style="font-style:normal">&#174;</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&#8217;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 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.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 24.5pt; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><b>&#160;</b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><b>DHL.</b> 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 &#8220;<i>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</sup></i>&#8221;. 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 with 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.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 24.5pt; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><b>UPS.</b> 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 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 &#8220;<i>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.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">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 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 with 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.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 24.5pt; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">These agreements with the three largest integrators in the world represent a significant validation of our solutions and the way we conduct our business.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt; size: 8.5in 11.0in" align="justify"><b><font style="FONT-SIZE: 10pt"> </font></b>&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><b>Life Sciences Agreements</b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 24.5pt; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><b>&#160;</b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><b>Zoetis.</b> 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. Under this arrangement, Cryoport provides on-site logistics personnel and its logistics management operating platform, the Cryoportal<sup style="font-style:normal">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 logistics data and processes to further introduce economies and reliability throughout the network, ensuring products arrive at their destinations in specified conditions, on-time and with the optimum utilization of resources. The Company manages Zoetis&#8217; total fleet of dewar flask shippers used for this purpose, including liquid nitrogen shippers. In July 2013, the agreement was amended to expand Cryoport&#8217;s scope to manage all logistics of Zoetis&#8217; key frozen poultry vaccine to all of Zoetis&#8217; international distribution centers as well as all domestic shipments. 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.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 24.5pt; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><b>&#160;</b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><b>Liventa Bioscience.</b> 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 MedicinePoint-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. The implementation of Cryoport&#8217;s Regenerative MedicinePoint-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. 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 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 the orthopedic arena in the United States.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 24.5pt; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">In summary, we serve the life sciences industry with cryogenic logistics solutions that are advanced, comprehensive, reliable, validated, and efficient. Our clients include those companies and institutions that have logistics requirements for personalized medicine, immunotherapies, stem cells, cell lines, tissue, vaccines, in-vitro fertilization, cord blood, and other temperature sensitive commodities of life sciences.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 24.5pt; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><b>Liquidity</b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 24.5pt; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">The unaudited condensed consolidated financial statements have been prepared using the accrual method of accounting in accordance with U.S. GAAP. During the three months ended June 30, 2015, we used cash in operations of $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">1.9</font> million and had a net loss of $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">1.9</font> million.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><font style="FONT-SIZE: 10pt">We believe that our cash resources at June 30, 2015, additional funds raised subsequent to June 30, 2015 through our public equity offering (see Note 9), together with the revenues generated from our solutions will be sufficient to sustain our planned operations for the next 12 months. 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. Revenues increased $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">494,500</font> or <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 52.8</font>% to $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">1.4</font> million for the three months ended June 30, 2015, as compared to $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">0.9</font> million for the three months ended June 30, 2014. 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CY2005Q2 us-gaap Stock Issued During Period Shares Acquisitions
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200901 shares
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0.81 pure
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CY2014Q1 us-gaap Stock Issued During Period Shares Issued For Services
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CY2015Q2 us-gaap Use Of Estimates
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CY2015Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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4346226 shares
CY2014Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
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CY2015Q2 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
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CY2015Q2 us-gaap Allowance For Doubtful Accounts Receivable
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CY2015Q1 us-gaap Allowance For Doubtful Accounts Receivable
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CY2011Q3 us-gaap Preferred Stock Par Or Stated Value Per Share
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CY2015Q2 us-gaap Due To Related Parties Current And Noncurrent
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CY2015Q2 us-gaap Debt Instrument Convertible Beneficial Conversion Feature
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CY2015Q2 us-gaap Debt Instrument Unamortized Discount
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CY2015Q2 us-gaap Amortization Of Debt Discount Premium
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CY2014Q2 us-gaap Amortization Of Debt Discount Premium
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CY2015Q1 cyrx Accrued Interest Payable
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CY2015Q2 cyrx Increase In Revenues
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CY2015Q2 cyrx Estimated Base Rent Under Lease
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CY2015Q3 cyrx Percentage Of Price Of Units Sold In Offering
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