Cryo-Cell International, Inc. (NYSE American LLC: CCEL) (the “Company”), the world’s first private cord blood bank to separate and store stem cells in 1992, announced results for the fiscal second quarter ended May 31, 2023.
Financial Results
Revenue
Consolidated revenues for the second quarter of fiscal 2023 were $7.77 million compared to $7.63 million for the second quarter of fiscal 2022, a 2% increase. The revenues for the second quarter of fiscal 2023 consisted of $7.58 million in processing and storage fee revenue, $164,000 in public banking revenue and $27,000 in product revenue compared to $7.48 million in processing and storage fee revenue, $117,000 in public banking revenue and $36,000 in product revenue for the second quarter of fiscal 2022.
Net Income
The Company reported net income for the three months ended May 31, 2023 of $220,976, or $0.03 per basic and diluted shares, compared to net income of $634,719, or $0.08 per basic share and $0.07 per diluted share for the three months ended May 31, 2022. During the three months ended May 31, 2023, revenue increased by 2% and cost of sales decreased by 3%, which was offset by a 3% increase in selling, general and administrative expenses. For the three months ended May 31, 2023, the Company recorded $304,682 in research, development and relating engineering (“R&D”) expenses versus $80,896 for the three months ended May 31, 2022. The increase in R&D expenses as of the three months ended May 31, 2023 versus the same period in 2022 is due to the Clinical Study and Research Agreement the Company entered into with Duke to provide funding to complete the Duke IMPACT Study (as previously disclosed) and the expenses related to the development of a manufacturing laboratory related to the Duke License Agreement. During the second quarter of fiscal 2023, the Company entered into an interest rate SWAP agreement to manage exposure to interest rate risk related to its variable debt obligation under its Term Note (as previously disclosed). For the three months ended May 31, 2023 the Company recorded a loss on the change in the fair value of the derivative of $223,974. The fair value is based on prevailing market data and derived from proprietary models based on well recognized financial principles and reasonable estimates about relevant future market conditions.
About Cryo-Cell International, Inc.
Founded in 1989, Cryo-Cell International, Inc. is the world’s first private cord blood bank. More than 500,000 parents from 87 countries have entrusted Cryo-Cell International with their baby’s cord blood and cord tissue stem cells. In addition to its private bank, Cryo-Cell International has a public banking program in partnership with Duke University. Cryo-Cell’s public bank has provided cord blood for more than 600 transplantations and operates cord blood donation sites across the U.S in prominent hospitals such as Cedars–Sinai Hospital in Los Angeles and Baptist Hospital in Miami. Cryo-Cell’s facility is FDA registered, cGMP-/cGTP-compliant and licensed in all states requiring licensure. Besides being AABB accredited as a cord blood facility, Cryo-Cell was also the first U.S. (for private use only) cord blood bank to receive FACT accreditation for adhering to the most stringent cord blood quality standards set by any internationally recognized, independent accrediting organization. Cryo-Cell has the exclusive rights to PrepaCyte-CB, the industry’s most advanced cord blood processing technology.
Cryo-Cell’s mission is to provide the premier cord blood and cord tissue cryopreservation services, to develop, manufacture and administer cellular therapies to significantly improve the lives of patients worldwide and to offer the highest quality and most cost effective biostorage solutions available. In February 2021, Cryo-Cell entered into a license agreement with Duke University that the Company believes has allowed Cryo-Cell to begin its transformation into an autonomous, vertically integrated cellular therapy company. In March 2022, Cryo-Cell launched ExtraVault to offer its expertise in biostorage and distribution to biopharmaceutical companies and healthcare institutions.
Source: https://www.businesswire.com/
