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Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Use of Estimates, Policy [Policy Text Block]

Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Earnings Per Share, Policy [Policy Text Block]

Earnings

per share

Basic earnings per share is calculated by dividing the net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated using the weighted average number of common shares outstanding plus dilutive common stock equivalents outstanding as determined by the treasury method during the period. In periods when we have a net loss, common stock equivalents are excluded from our calculation of earnings per share as their inclusion would have an antidilutive effect. For the year ended

December 31, 2018,

we excluded a nominal amount of unvested stock awards from our calculation of diluted weighted average shares because they were antidilutive. For the year ended

December 31, 2017,

we excluded

3.4

million common stock options,

6.7

million warrants, and

238,000

unvested stock awards from our calculation of diluted weighted average shares because they were antidilutive.

The following table shows the calculation of basic and diluted earnings per share:

	Year Ended
	December 31,
(In thousands , except share and earnings per share data )	2018		2017
Numerator:
Net income (loss) attributable to common stockholders	$	2,927	$	(2,728	)

Denominator:
Weighted average basic shares outstanding		16,256,465		13,263,881
Effect of dilutive securities		5,370,813		—
Weighted average diluted shares		21,627,278		13,263,881

Basic earnings per share	$	0.18	$	(0.21	)
Diluted earnings per share	$	0.14	$	(0.21	)

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and cash equivalents

Cash equivalents consist primarily of interest-bearing money market accounts. We consider all highly liquid debt instruments purchased with an initial maturity of

three

months or less to be cash equivalents. We maintain cash balances that

may

exceed federally insured limits. We do

not

believe that this results in any significant credit risk.

We paid

$5,000

and

$38,000

for interest for the years ended

December 31, 2018

and

2017,

respectively.

Equity Method Investments [Policy Text Block]

Equity Method Investments

We account for our ownership in SAVSU Technologies, Inc. (“SAVSU”) using the equity method of accounting. This method states that if the investment provides us the ability to exercise significant influence, but

not

control, over the investee, we account for the investment under the equity method. Significant influence is generally deemed to exist if the Company’s ownership interest in the voting stock of the investee ranges between

20%

and

50%,

although other factors, such as representation on the investee’s board of directors, are considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the investment is recorded at its initial carrying value in the balance sheet and is periodically adjusted for capital contributions, dividends received and our share of the investee’s earnings or losses together with other-than-temporary impairments which are recorded as a component of other income (expense), net in the statements of operations. On

January 22, 2018,

as a result of SAVSU signing a global distribution agreement with World Courier, we amended our agreement with SAVSU to fix our equity position at

35%,

prior to any dilution created by financing activities post

December 31, 2016.

Our ownership in SAVSU was

35%

December 31, 2017.

As a result of an additional

million in cash contributions made by us and additional contributions made by the majority stockholder, our effective ownership was

44.4%

December 31, 2018.

Additionally, we have an

-month purchase option which provides us, at our sole discretion, with the right to acquire the

56%

ownership interest of SAVSU

not

already owned, in exchange for the greater of

1,000,000

shares of our common stock, or approximately

$23

million of our common stock, calculated on the day of exercise.

As of

December 31, 2018,

SAVSU had current assets and total assets of

$5.8

million and

$11.0

million, respectively and liabilities of

$0.5

million. As of

December 31, 2017,

SAVSU had current assets and total assets of

$0.6

million and

$5.5

million, respectively and liabilities of

$0.2

million. For the years ended

December 31 2018

and

2017,

SAVSU’s net loss totaled

$1.9

million and

$2.2

million, respectively. The carrying value of our investment in SAVSU is in excess of the underlying equity in net assets of SAVSU as of

December 31, 2018,

due to the net assets of SAVSU recorded at historical cost.

Inventory, Policy [Policy Text Block]

Inventories

Inventories represent biopreservation solutions, raw materials used to make biopreservation solutions and are stated at the lower of cost or net realizable value. Cost is determined using the

first

-in,

first

-out (“FIFO”) method.

Receivables, Policy [Policy Text Block]

Accounts receivable

Accounts receivable are stated at principal amount, do

not

bear interest, and are generally unsecured. We provide an allowance for doubtful accounts based on an evaluation of customer account balances past due

ninety

days from the date of invoicing. Accounts considered uncollectible are charged against the established allowance.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and equipment

Property and equipment are stated at cost and are depreciated using the straight-line method over estimated useful lives of

three

ten

years.

Lessee, Leases [Policy Text Block]

Deferred rent

For our operating leases, we recognize rent expense on a straight-line basis over the terms of the leases and, accordingly, we record the difference between cash rent payments and the recognition of rent expense as a deferred rent liability. Landlord-funded leasehold improvements, to the extent the improvements are

not

landlord property upon lease termination, are also recorded as deferred rent liabilities and are amortized as a reduction of rent expense over the non-cancelable term of the related operating lease.

Revenue Recognition, Policy [Policy Text Block]

Revenue recognition

January 1, 2018,

we adopted Accounting Standards Update (ASU)

No.

2014

09,

Revenue from Contracts with Customers and other related ASUs (Topic

606

) using the modified retrospective approach applied to those contracts in effect as of

January 1, 2018.

Under this transition method, results for reporting periods beginning after

January 1, 2018

are presented under the new standard, while prior period amounts are

not

adjusted and continue to be reported in accordance with our historical accounting under Topic

605,

Revenue Recognition. Adoption of the new standard did

not

have an impact on the amounts reported in our financial statements and there were

other significant changes impacting the timing or measurement of our revenue or our business processes and controls.

To determine revenue recognition for contractual arrangements that we determine are within the scope of Topic

606,

we perform the following

five

steps: (i) identify each contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to our performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy the relevant performance obligation. We only apply the

five

-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services we transfer to the customer. Our revenues are primarily generated from the sale of our biopreservation media products. We generally recognize product revenue, including shipping and handling charges billed to customers, when we transfer control of our products to our customers as our contracts have a single performance obligation (transfer of control generally occurs upon shipment of our product). Shipping and handling costs are classified as part of cost of product sales in the statement of operations. We are

not

required to disclose the value of unsatisfied performance obligations as our contracts have a duration of

one

year or less.

We invoice and receive payment from our customers after we recognize revenue, resulting in receivables from our customers that are presented as accounts receivable on our balance sheet. Accounts receivable consist of short-term amounts due from our customers (generally

days) and are stated at the amount we expect to collect. We establish an allowance for doubtful accounts based on our assessment of the collectability of specific customer accounts. Changes in accounts receivable are primarily due to the timing and magnitude of orders of our products, the timing of when control of our products is transferred to our customers and the timing of cash collections.

Income Tax, Policy [Policy Text Block]

Income taxes

We account for income taxes using an asset and liability method which generally requires recognition of deferred tax assets and liabilities for the expected future tax effects of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are recognized for the future tax effects of differences between tax bases of assets and liabilities, and financial reporting amounts, based upon enacted tax laws and statutory rates applicable to the periods in which the differences are expected to affect taxable income. We evaluate the likelihood of realization of deferred tax assets and provide an allowance where, in management’s opinion, it is more likely than

not

that the asset will

not

be realized. We have

not

recorded any liabilities for uncertain tax positions or any related interest and penalties. Our tax returns are open to audit for years ending

December

31,

2015

2018.

Advertising Costs, Policy [Policy Text Block]

Advertising

Advertising costs are expensed as incurred and totaled

$30,000

and

$39,000

for the years ended

December

31,

2018

and

2017,

respectively.

Segment Reporting, Policy [Policy Text Block]

Operating segments

As described above, our activities are directed in the life sciences field of biopreservation products and services. As of

December

31,

2018,

and

2017

this is the Company’s only operating unit and segment.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentrations of credit risk and business risk

In the years

2018

and

2017,

we derived approximately

29%

of our revenue from

two

customers and

12%

of our revenue from

one

customer, respectively. Revenue from customers located in Canada represented

13%

and in all other foreign countries represented

10%

of total revenue during the year ended

December 31, 2018.

Revenue from customers located in Canada represented

11%

and in all other foreign countries represented

16%

of total revenue during the year ended

December 31, 2017.

All revenue from foreign customers are denominated in United States dollars. At

December

31,

2018,

three

customers accounted for

71%

of gross accounts receivable. At

December

31,

2017,

two

customers accounted for

41%

of gross accounts receivable. In the years

2018

and

2017,

we derived approximately

88%

and

77%,

respectively, of our revenue from CryoStor products.

Research and Development Expense, Policy [Policy Text Block]

Research and development

Research and development costs are expensed as incurred.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock Based Compensation

We use the Black-Scholes option pricing model as our method of valuation for stock option awards. Restricted stock unit grants are valued at the fair value of our common stock on the date of grant. Share-based compensation expense is based on the value of the portion of the stock-based award that will vest during the period, adjusted for forfeitures. Our determination of the fair value of stock option awards on the date of grant using an option pricing model is affected by our stock price as well as assumptions regarding a number of highly complex and subjective variables. These variables include, but are

not

limited to, the expected life of the award, expected stock price volatility over the term of the award and historical and projected exercise behaviors. The estimation of share-based awards that will ultimately vest requires judgment, and to the extent actual or updated results differ from our current estimates, such amounts will be recorded in the period estimates are revised. Although the fair value of stock option awards is determined in accordance with authoritative guidance, the Black-Scholes option pricing model requires the input of highly subjective assumptions and other reasonable assumptions could provide differing results. Share-based compensation expense is recognized ratably over the applicable requisite service period based on the fair value of such share-based awards on the grant date.

The fair value of options at the date of grant is determined under the Black-Scholes option pricing model. We did

not

have any stock option grants for the year ended

December 31, 2018.

During the year ended

December 31, 2017,

the following weighted-average assumptions were used:

Assumptions	2017
Risk-free rate		2.12	%
Annual rate of dividends		––
Historical volatility		74	%
Expected life (in years)		5.7

The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the time of grant. We do

not

anticipate declaring dividends in the foreseeable future. Volatility was based on historical data. We utilize the simplified method in determining expected life. The simplified method is used due to the fact that we have had significant structural changes in our business such that our historical exercise data

may

not

provide a reasonable basis to estimate option lives. Our stock price volatility and expected life involve management’s best estimates at the time of such determination, all of which impact the fair value of the option calculated under the Black-Scholes model and, ultimately, the expense that will be recognized over the life of the option.

Management adopted Financial Accounting Standards Board (“FASB”) Accounting Standard Update

No.

2016

January 1, 2017.

Due to the adoption of ASU

2016

an accounting policy change was made to account for forfeitures as they occur and

not

estimated. As a result, we had a cumulative-effect adjustment to accumulated deficit and additional paid in capital of

$28,000

resulting from adoption.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent accounting pronouncements

August 2016,

the FASB issued Accounting Standards Update (“ASU”)

No.

2016

15,

Statement of Cash Flows (Topic

230

): Classification of Certain Cash Receipts and Cash Payments (ASU

2016

). The updated guidance clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. We adopted the new standard on

January 1, 2018,

with

material impact on our financial statements.

February 2016,

the FASB issued Accounting Standards Update

No.

2016

02,

Leases: Topic

842

(ASU

2016

) that replaces existing lease guidance. The new standard is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. Under the new guidance, leases will continue to be classified as either finance or operating, with classification affecting the pattern of expense recognition in the Statements of Operations. Lessor accounting is largely unchanged under ASU

2016

02.

The new guidance will be effective for fiscal years and interim periods within those years beginning after

December 15, 2018.

We will adopt Topic

842

effective

January 1, 2019

using the additional transition option for the modified retrospective method and will

not

restate comparative periods. Based on our portfolio of leases as of

December 31, 2018,

approximately

$1.8

million of right-of-use assets,

$1.9

million lease liabilities and a nominal reduction in retained earnings will be recognized on our balance sheet upon adoption, primarily relating to real estate leases.

January 2016,

the FASB issued Accounting Standards Update

No.

2016

01,

Recognition and Measurement of Financial Assets and Financial Liabilities: Topic

825

(ASU

2016

). The updated guidance enhances the reporting model for financial instruments, which includes amendments to address aspects of recognition, measurement, presentation and disclosure. We adopted the new standard on

January 1, 2018,

with

material impact on our financial statements.

With the exception of the new standards discussed above, there have been

new accounting pronouncements

not

yet effective that have significance, or potential significance, to our Financial Statements.