Cryoport, Inc 10-Q for FY2024 Q1

Cryoport, Inc. (CYRX)

10-Q 2024-05-08 For: 2024-03-31

Added on April 06, 2026

About this 10-Q

Cryoport, Inc filed this 10-Q on May 8, 2024, covering the quarter ended March 31, 2024 (FY2024 Q1).

Headline figures

Quarter ended March 31, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $54.59M; down 13.1% from $62.82M a year earlier
Net loss: $18.9M; compared with a net loss of $5.57M a year earlier
Diluted EPS: -$0.43; compared with -$0.16 a year earlier

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Nevada	88-0313393
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Title of each class:		Trading Symbol(s)		Name of each exchange on which registered:
Common Stock, $0.001 par value		CYRX		The Nasdaq Stock Market LLC (The Nasdaq Capital Market)


Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐


	Page

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

Condensed Consolidated Balance Sheets at March 31, 2024 (Unaudited) and December 31, 2023	3

Unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023	4

Unaudited Condensed Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2024 and 2023	5

Unaudited Condensed Consolidated Statements of Stockholders’ Equity for the three months ended March 31, 2024 and 2023	6

Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023	7

Notes to Condensed Consolidated Financial Statements (Unaudited)	8

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	26

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk	39

ITEM 4. Controls and Procedures	33

PART II. OTHER INFORMATION	40

ITEM 1. Legal Proceedings	34

ITEM 1A. Risk Factors	40

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

ITEM 3. Defaults Upon Senior Securities	40

ITEM 4. Mine Safety Disclosures	35

ITEM 5. Other Information	35

ITEM 6. Exhibits	42

SIGNATURES	43


	March 31,		December 31,
	2024		2023
	(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	49,663	$	46,346
Short-term investments		398,881		410,409
Accounts receivable, net		41,253		42,074
Inventories		25,020		26,206
Prepaid expenses and other current assets		10,887		10,077
Total current assets		525,704		535,112
Property and equipment, net		86,008		84,858
Operating lease right-of-use assets		31,029		32,653
Intangible assets, net		190,088		194,382
Goodwill		107,588		108,403
Deposits		1,674		1,680
Deferred tax assets		758		656
Total assets	$	942,849	$	957,744

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable and other accrued expenses	$	27,376	$	26,995
Accrued compensation and related expenses		14,062		11,409
Deferred revenue		1,777		1,308
Current portion of operating lease liabilities		5,356		5,371
Current portion of finance lease liabilities		301		286
Current portion of notes payable		110		149
Current portion of contingent consideration		—		92
Total current liabilities		48,982		45,610
Convertible senior notes, net of discount of $6.4 million and $7.0 million, respectively		379,153		378,553
Notes payable		1,305		1,335
Operating lease liabilities, net of current portion		27,798		29,355
Finance lease liabilities, net of current portion		916		954
Deferred tax liabilities		2,414		2,816
Other long-term liabilities		312		601
Contingent consideration, net of current portion		9,779		9,497
Total liabilities		470,659		468,721

Commitments and contingencies
Stockholders’ Equity:
Preferred stock, $0.001 par value; 2,500,000 shares authorized:
Class A convertible preferred stock - $0.001 par value; 800,000 shares authorized; none issued and outstanding		—		—
Class B convertible preferred stock - $0.001 par value; 585,000 shares authorized; none issued and outstanding		—		—
Class C convertible preferred stock, $0.001 par value; 250,000 shares authorized; 200,000 issued and outstanding		28,275		26,275
Common stock, $0.001 par value; 100,000,000 shares authorized; 49,256,794 and 48,971,026 issued and outstanding at March 31, 2024 and December 31, 2023, respectively		49		49
Additional paid-in capital		1,135,257		1,131,183
Accumulated deficit		(661,314)		(642,419)
Accumulated other comprehensive loss		(30,077)		(26,065)
Total stockholders’ equity		472,190		489,023
Total liabilities and stockholders’ equity	$	942,849	$	957,744


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three Months Ended
	March 31,
	2024		2023
Life Sciences Services revenue	$	36,786	$	35,836
Life Sciences Products revenue		17,806		26,981
Total revenue		54,592		62,817

Cost of services revenue		21,602		19,076
Cost of products revenue		11,215		16,669
Total cost of revenue		32,817		35,745
Gross margin		21,775		27,072

Operating costs and expenses:
Selling, general and administrative		38,304		33,241
Engineering and development		4,752		3,876
Total operating costs and expenses		43,056		37,117

Loss from operations		(21,281)		(10,045)
Other income (expense):
Investment income		2,600		2,467
Interest expense		(1,338)		(1,509)
Other income, net		1,339		4,005
Total other income, net		2,601		4,963
Loss before provision for income taxes		(18,680)		(5,082)
Provision for income taxes		(215)		(492)
Net loss	$	(18,895)	$	(5,574)
Paid-in-kind dividend on Series C convertible preferred stock		(2,000)		(2,000)
Net loss attributable to common stockholders	$	(20,895)	$	(7,574)
Net loss per share - basic and diluted	$	(0.43)	$	(0.16)
Weighted average shares outstanding – basic and diluted		49,019,964		48,362,501


	Class A			Class B			Class C										Other		Total
	Preferred Stock			Preferred Stock			Preferred Stock			Common Stock			Additional		Accumulated		Comprehensive		Stockholders’
	Shares	Amount		Shares	Amount		Shares	Amount		Shares	Amount		Paid–In Capital		Deficit		Loss		Equity (Deficit)

Balance at December 31, 2022	—	$	—	—	$	—	200,000	$	18,275	48,334,280	$	48	$	1,114,896	$	(542,832)	$	(34,549)	$	555,838
Net loss	—		—	—		—	—		—	—		—		—		(5,574)		—		(5,574)
Other comprehensive loss, net of taxes	—		—	—		—	—		—	—		—		—		—		4,978		4,978
Stock-based compensation expense	—		—	—		—	—		—	—		—		5,184		—		—		5,184
Paid-in-kind preferred stock dividend	—		—	—		—	—		2,000	—		—		(2,000)		—		—		—
Vesting of restricted stock units	—		—	—		—	—		—	156,588		—		—		—		—		—
Proceeds from exercise of stock options	—		—	—		—	—		—	10,538		—		92		—		—		92
Balance at March 31, 2023	—	$	—	—	$	—	200,000	$	20,275	48,501,406	$	48	$	1,118,172	$	(548,406)	$	(29,571)	$	560,518

Balance at December 31, 2023	—	$	—	—	$	—	200,000	$	26,275	48,971,026	$	49	$	1,131,183	$	(642,419)	$	(26,065)	$	489,023
Net loss	—		—	—		—	—		—	—		—		—		(18,895)		—		(18,895)
Other comprehensive income, net of taxes	—		—	—		—	—		—	—		—		—		—		(4,012)		(4,012)
Stock-based compensation expense	—		—	—		—	—		—	—		—		5,456		—		—		5,456
Paid-in-kind preferred stock dividend	—		—	—		—	—		2,000	—		—		(2,000)		—		—		—
Vesting of restricted stock units	—		—	—		—	—		—	169,904		—		—		—		—		—
Proceeds from exercise of stock options	—		—	—		—	—		—	115,864		—		618		—		—		618
Balance at March 31, 2024	—	$	—	—	$	—	200,000	$	28,275	49,256,794	$	49	$	1,135,257	$	(661,314)	$	(30,077)	$	472,190



	For the Three Months Ended
	March 31,
	2024		2023
Cash Flows From Operating Activities:
Net loss	$	(18,895)	$	(5,574)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		7,469		6,404
Amortization of debt discount		601		641
Non-cash operating lease expense		1,360		1,099
Unrealized (gain) loss on investments in equity securities		678		(1,510)
Realized (gain) loss on available-for-sale investments		(2,416)		86
Stock-based compensation expense		5,456		5,184
Loss on disposal of property and equipment		131		77
Gain on insurance settlement		—		(2,642)
Change in credit losses		99		(103)
Insurance proceeds for operations		—		1,212
Change in contingent consideration		293		46
Changes in operating assets and liabilities:
Accounts receivable		437		(1,414)
Inventories		1,113		1,239
Prepaid expenses and other current assets		(1,174)		(271)
Deposits		(9)		(198)
Operating lease liabilities		(1,302)		(1,004)
Accounts payable and other accrued expenses		264		(3,276)
Accrued compensation and related expenses		2,719		1,962
Deferred revenue		462		570
Net deferred tax liability		(551)		246
Net cash provided by (used in) operating activities		(3,265)		2,774

Cash Flows From Investing Activities:
Purchases of property and equipment		(4,006)		(9,569)
Insurance proceeds for loss of fixed assets		—		976
Software development costs		(443)		(463)
Purchases of short-term investments		(14,038)		—
Sales/maturities of short-term investments		25,250		7,850
Patent and trademark costs		(318)		(177)
Net cash provided by (used in) investing activities		6,445		(1,383)

Cash Flows From Financing Activities:
Proceeds from exercise of stock options		618		92
Repayment of notes payable		(36)		10
Repayment of finance lease liabilities		(70)		(31)
Net cash provided by financing activities		512		71
Effect of exchange rates on cash and cash equivalents		(375)		481
Net change in cash and cash equivalents		3,317		1,943
Cash and cash equivalents — beginning of period		46,346		36,595
Cash and cash equivalents — end of period	$	49,663	$	38,538

Supplemental Disclosure of Cash Flow Information:

Cash paid for interest	$	38	$	—

Cash paid for income taxes	$	417	$	433

Supplemental Disclosure of Non-Cash Financing Activities:
Operating lease right-of-use assets and operating lease liabilities	$	—	$	4,436

Net unrealized gain (loss) on available-for-sale debt securities	$	261	$	(3,675)

Reclassification of realized gain (loss) on available-for-sale debt securities to earnings	$	(2,314)	$	99

Paid-in-kind preferred stock dividend, including beneficial conversion feature	$	2,000	$	2,000

Fixed assets included in accounts payable and accrued liabilities	$	542	$	707


Total purchase consideration paid	$	10,229

Purchase price allocation:
Cash and cash equivalents		868
Accounts receivable		2,299
Prepaid and other current assets		38
Property and equipment		89
Operating lease right-of-use assets		709
Intangible assets		3,650
Accounts payable and other accrued expenses		(1,160)
Operating lease liabilities		(709)
Total identifiable net assets		5,784
Goodwill		4,445
	$	10,229


					Annual
	Estimated		Estimated	Amortization	Amortization
	Fair Value		Useful Life	Method	Expense
Customer relationships	$	220	8.3	Straight-line	$	27
Non-competition agreement		420	5	Straight-line		84
Agent network		2,890	4	Straight-line		723
Trade names/trademarks - finite-lived		120	1.5	Straight-line		80
Total	$	3,650			$	914


	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
U.S. Treasury notes	$	126,776	$	321	$	(359)	$	126,738
Corporate debt securities		171,437		572		(273)		171,736
Total available-for-sale investments	$	298,213	$	893	$	(632)	$	298,474


	Amortized Cost		Fair Value
Due within one year	$	102,367	$	102,975
Due after one year through five years		195,846		195,499
Due after five years through ten years		—		—
Total	$	298,213	$	298,474


	Less than 12 Months				12 Months or More				Total
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
U.S. Treasury notes	$	54,463	$	(298)	$	72,275	$	(61)	$	126,738	$	(359)
Corporate debt securities		24,244		(20)		147,492		(254)		171,736		(274)
Total	$	78,707	$	(318)	$	219,767	$	(315)	$	298,474	$	(633)


	Three Months Ended
	March 31,
	2024		2023
Americas	$	29,904	$	33,617
Europe, the Middle East, and Africa (EMEA)		15,610		18,159
Asia Pacific (APAC)		9,078		11,041
Total revenue	$	54,592	$	62,817


	Fair Value		Losses				Foreign		Fair Value
	December 31,		recognized in				Currency		March 31,
	2023		earnings		Payments		Adjustment		2024
2021 Acquisitions	$	1,006	$	51	$	—	$	(43)	$	1,014
2022 Acquisitions		2,596		37		—		(59)		2,574
2023 Acquisitions		5,987		204		—		—		6,191
	$	9,589	$	292	$	—	$	(102)	$	9,779


	March 31,		December 31,
	2024		2023
Raw materials	$	14,666	$	15,335
Work-in-process		887		1,375
Finished goods		9,467		9,496
Total	$	25,020	$	26,206


							Weighted
					Net		Average
	Gross		Accumulated		Carrying		Amortization
	Amount		Amortization		Amount		Period (years)
Non-compete agreement	$	810	$	409	$	401	5
Technology		50,997		12,567		38,430	9
Customer relationships		131,785		32,667		99,118	11
Trade name/trademark		947		260		687	10
Agent network		14,020		9,330		4,690	3
Order backlog		2,600		2,600		—	—
Land use rights		2,198		244		1,954	34
Patents and trademarks		45,029		221		44,808	—
Total	$	248,386	$	58,298	$	190,088


	Three Months Ended March 31,
	2024		2023
Net losses recognized during the three months on equity securities	$	(678)	$	—
Less: net gains (losses) recognized during the year on equity securities sold during the period		—		1,510
Unrealized gains (losses) recognized during the three months on equity securities still held at March 31, 2024 and 2023	$	(678)	$	1,510


	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
March 31, 2024
Assets:
Money market mutual fund	$	7,081	$	—	$	—	$	7,081
Mutual funds		100,407		—		—		100,407
U.S. Treasury notes		126,738		—		—		126,738
Corporate debt securities		171,736		—		—		171,736
	$	405,962	$	—	$	—	$	405,962
Liabilities:
Convertible Senior Notes	$	—	$	379,153	$	—	$	379,153
Contingent consideration		—		—		9,779		9,779
	$	—	$	379,153	$	9,779	$	388,932


	March 31, 2024				December 31, 2023
	Carrying Value		Fair Value		Carrying Value		Fair Value
2026 Senior Notes	$	364,388	$	311,655	$	364,362	$	306,355
2025 Senior Notes	$	14,765	$	13,709	$	14,191	$	13,495


Years Ending December 31,	Amount
Remainder of 2024 (excluding the three months ended March 31, 2024)	$	16,806
2025		14,788
2026		14,500
2027		14,155
2028		13,109
Thereafter		70,747
	$	144,105


Years Ending December 31,	Amount
2024 (excluding the three months ended March 31, 2024)	$	110
2025		149
2026		151
2027		148
2028		135
Thereafter		722
Total note maturities	$	1,415


Supplemental Cash Flows Information	Three Months Ended March 31,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,988	$	1,639
Operating cash flows from finance leases	$	96	$	37
Financing cash flows from finance leases	$	70	$	31

Right-of-use assets obtained in exchange for lease liabilities (in thousands):
Operating leases	$	—	$	4,436
Finance leases	$	63	$	—


	Operating		Finance
Years Ending December 31	Leases		Leases
2024 (excluding the three months ended March 31, 2024)	$	6,015	$	291
2025		6,851		385
2026		5,683		357
2027		4,909		244
2028		3,673		121
Thereafter		26,992		24
Total future minimum lease payments		54,123		1,422
Less: imputed interest		(20,969)		(205)
Total	$	33,154	$	1,217


	Operating		Finance
Reported as of March 31, 2024	Leases		Leases
Current lease liabilities	$	5,356	$	301
Noncurrent lease liabilities		27,798		916
Total	$	33,154	$	1,217


Exercise of stock options		7,239,928
Vesting of restricted stock units		1,207,323
Conversion of Series C Preferred Stock		5,953,481
Conversion of convertible 2026 Senior Notes		3,156,483
Conversion of convertible 2025 Senior Notes		599,954
Total shares of common stock reserved for future issuances		18,157,169


				Weighted-
		Weighted-		Average
		Average		Remaining	Aggregate
	Number of	Exercise		Contractual	Intrinsic
	Shares	Price/Share		Term (Years)	Value (1)
Outstanding — December 31, 2023	7,224,820	$	15.88	—		—
Granted (weighted-average fair value of $8.72 per share)	168,611		15.88	—		—
Exercised	(115,864)		5.34	—		—
Forfeited	(37,639)		36.91	—		—
Outstanding — March 31, 2024	7,239,928	$	15.94	4.1	$	43,542
Vested (exercisable) — March 31, 2024	6,422,781	$	14.34	3.9	$	43,122
Expected to vest after March 31, 2024 (unexercisable)	817,147	$	28.49	4.1	$	419


		Weighted Average
	Number of Restricted	Fair Value per
	Stock Units	Share
Outstanding – December 31, 2023	1,076,629	$	27.73
Granted	334,820		15.18
Share issuance	(169,904)		17.03
Forfeited	(34,222)		26.38
Outstanding – March 31, 2024	1,207,323	$	22.74


	Three Months Ended March 31, 2024
	Life Sciences			Life Sciences
	Services			Products			Total
As Reported	$	36,786		$	17,806		$	54,592
Non-GAAP Constant Currency		36,781			17,809			54,590
FX Impact [$]	$	5		$	(3)		$	2
FX Impact [%]		0.0	%		(0.0)	%		0.0	%


	For the Three Months Ended March 31,
	2024		2023		$ Change
	(in thousands)
Operating activities	$	(3,265)	$	2,774	$	(6,039)
Investing activities		6,445		(1,383)		7,828
Financing activities		512		71		441
Effect of exchange rate changes on cash and cash equivalents		(375)		481		(856)
Net increase in cash and cash equivalents	$	3,317	$	1,943	$	1,374


Exhibit
Index

10.1		Amended and Restated Employment Agreement dated February 15, 2024 between the Company and Jerrell W. Shelton. Incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K dated February 15, 2024.

10.2		Amended and Restated Employment Agreement dated February 15, 2024 between the Company and Robert S. Stefanovich. Incorporated by reference to Exhibit 10.2 of the Company’s Current report on Form 8-K dated February 15, 2024.

10.3		Amended and Restated Employment Agreement dated February 15, 2024 between the Company and Mark Sawicki. Incorporated by reference to Exhibit 10.3 of the Company’s Current Report on Form 8-K dated February 15, 2024.

10.4		Employment Agreement dated February 19, 2024 between the Company and Edward Zecchini. Incorporated by reference to Exhibit 10.11 of the Company’s Annual Report on Form 10-K filed with the SEC on March 13, 2024.

31.1+		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2+		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1+		Certification pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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104+		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).


	Cryoport, Inc.

Dated: May 7, 2024

	By:	/s/ Jerrell W. Shelton
		Jerrell W. Shelton
		President and Chief Executive Officer

Dated: May 7, 2024

	By:	/s/ Robert S. Stefanovich
		Robert S. Stefanovich
		Chief Financial Officer


/s/ Jerrell W. Shelton
JERRELL W. SHELTON
President and Chief Executive Officer
(Principal Executive Officer)

/s/ Robert S. Stefanovich
ROBERT S. STEFANOVICH
Chief Financial Officer
(Principal Financial Officer)