Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Adopted Accounting Standards

In

December 2019,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

2019

-

12

“

Income Taxes (Topic

740

): Simplifying the Accounting of Income Taxes

”, which is intended to simplify various aspects related to accounting for income taxes. ASU

2019

-

12

removes certain exceptions to the general principles in Topic

740

and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years and interim periods within those fiscal years, beginning after

December 15, 2020.

The Company was

not

profitable for the

three

months ended

March 31, 2021

and has a full valuation allowance on all net operating loss (“NOL”) tax carryforwards. As such, the adoption of this standard did

not

have a material impact on the Company's financial statements.

In

January 2020,

the FASB issued ASU

2020

-

01,

“

Investments

–

Equity Securities (Topic

321

), Investments

—

Equity Method and Joint Ventures (Topic

323

), and Derivatives and Hedging (Topic

815

): Clarifying the Interactions between Topic

321,

Topic

323,

and Topic

815

”. The new guidance clarifies the interaction of accounting for the transition into and out of the equity method and the accounting for measuring certain purchased options and forward contracts to acquire investments. It is effective for fiscal years beginning after

December 15, 2020,

including interim periods within those fiscal years. The adoption of this standard did

not

have a material impact on the Company's financial statements.

Revenue from Contract with Customer [Policy Text Block]

Revenue Recognition

Revenue is recognized based on the

five

-step process outlined in Accounting Standards Codification (“ASC”)

606:

(i) identification of the contract with the customer; (ii) identification of the performance obligations in the contract; (iii) determination of the transaction price; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when the performance obligation is satisfied.

Disaggregation of Revenue

The Company's primary revenue streams include device sales and service revenue from device maintenance contracts, as summarized in the following table:

	Three Months Ended March 31, 2021
	Device Revenue		Service Revenue		Other Revenue		Total Revenue
AXP	$	225,000	$	39,000	$	--	$	264,000
BioArchive		208,000		542,000		--		750,000
CAR-TXpress		255,000		28,000		71,000		354,000
Manual Disposables		129,000		--		--		129,000
Other		7,000		--		13,000		20,000
Total	$	824,000	$	609,000	$	84,000	$	1,517,000

	Three Months Ended March 31, 2020
	Device Revenue		Service Revenue		Other Revenue		Total Revenue
AXP	$	2,208,000	$	24,000	$	--	$	2,232,000
BioArchive		164,000		332,000		--		496,000
CAR-TXpress		152,000		12,000		71,000		235,000
Manual Disposables		203,000		--		--		203,000
Other		14,000		--		20,000		34,000
Total	$	2,741,000	$	368,000	$	91,000	$	3,200,000

Performance Obligations

In most cases, there is

no

right of return provided for distributors or customers. For distributors, the Company has

no

control over the movement of goods to the end customer. The Company's distributors control the timing, terms and conditions of the transfer of goods to the end customer. If a right of return does exist, the Company records an allowance for expected returns and records revenue net of the allowance.

Payments from domestic customers are normally due in

two

months or less after the title transfers, the service contract is executed or the services have been rendered. For international customers payment terms

may

extend up to

120

days. All sales have fixed pricing and there are currently

no

variable components included in the Company's revenue.

Contract Balances

Generally, all sales are contract sales (with either an underlying contract or purchase order). The Company does

not

have any material contract assets. When invoicing occurs prior to revenue recognition, a contract liability is recorded (as deferred revenue on the consolidated balance sheet). Revenues recognized during the

three

months ended

March 31, 2021

that were included in the beginning balance of deferred revenue were

$273,000.

Short-term deferred revenues were

$696,000

and

$608,000

at

March 31, 2021

and

December 31, 2020,

respectively. Long-term deferred revenue was

$1,520,000

and

$1,596,000

at

March 31, 2021

and

December 31, 2020,

respectively.

Exclusivity Fee

On

August 30, 2019,

the Company entered into a Supply Agreement with Corning Incorporated (the “Supply Agreement”). The Supply Agreement has an initial term of

five

years with automatic

two

-year renewal terms, unless terminated by either party in accordance with the terms of the Supply Agreement (collectively, the “Term”). Pursuant to the Supply Agreement, the Company has granted to Corning exclusive worldwide distribution rights for substantially all

X

-Series® products under the CAR-TXpress™ platform (the “Products”) manufactured by its subsidiary, ThermoGenesis Corp., for the duration of the Term, subject to certain geographical and other exceptions. In addition to any amounts payable throughout the Term for the Products, as consideration for the exclusive worldwide distribution rights for the Products, Corning paid a

$2,000,000

exclusivity fee. For the

three

months ended

March 31, 2021

and

2020,

the Company recorded revenue of

$71,000

related to the exclusivity fee. The remaining balance of the

$2,000,000

payment of

$1,548,000

was recorded to deferred revenue, with

$286,000

in short term deferred revenue and

$1,262,000

recorded in long-term deferred revenue.

Backlog of Remaining Customer Performance Obligations

The following table includes revenue expected to be recognized and recorded as sales in the future from the backlog of performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period.

	Remainder of 2021		2022		2023		2024		2025 and beyond		Total
Service revenue	$	1,013,000	$	804,000	$	412,000	$	152,000	$	85,000	$	2,466,000
Clinical revenue		10,000		13,000		13,000		13,000		162,000		211,000
Exclusivity fee		214,000		286,000		286,000		286,000		476,000		1,548,000
Total	$	1,237,000	$	1,103,000	$	711,000	$	451,000	$	723,000	$	4,225,000

Revenues are net of normal discounts. Shipping and handling fees billed to customers are included in net revenues, while the related costs are included in cost of revenues.

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurements

In accordance with ASC

820,

“

Fair Value Measurements and Disclosures

,” fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date.

The guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the factors that market participants would use in valuing the asset or liability. The guidance establishes

three

levels of inputs that

may

be used to measure fair value:

Level

1:

   Quoted market prices in active markets for identical assets or liabilities.

Level

2:

  Observable market-based inputs or unobservable inputs that are corroborated by market data.

Level

3:

  Unobservable inputs which are supported by little or

no

market activity.

The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to their short duration. The fair value of the Company's derivative obligation liability is classified as Level

3

within the fair value hierarchy since the valuation model of the derivative obligation is based on unobservable inputs.

Reclassification, Comparability Adjustment [Policy Text Block]

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation.  The reclassifications did

not

have an impact on net loss as previously reported.  For the

three

month period ended

March 31, 2021,

sales and marketing and general and administrative expenses were combined into

one

line item identified as sales, general and administrative expenses on the Statement of Operations.