UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
July 31, 2014
CRYOPORT,
INC.
(Exact name of registrant as specified in
its charter)
| Nevada |
001-34632 |
88-0313393 |
(State of other jurisdiction
of incorporation) |
(Commission File Number) |
(IRS Employer
Identification No.) |
20382 Barents Sea Circle, Lake Forest, California 92630
(Address
of Principal Executive Offices)
Registrant’s
telephone number, including area code: (949) 470-2300
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2 below):
| o | Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425) |
| o | Soliciting material pursuant to Rule 14A-12 under the
Exchange Act (17 CFR 240.14a-12) |
| o | Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR.14d-2(b)) |
| o | Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02. | Results of Operations and Financial Condition. |
On July 31, 2014, Cryoport, Inc. (the “Registrant”)
issued a press release announcing its financial results for the quarter ended June 30, 2014. A copy of the press release issued
by the Registrant on July 31, 2014 is attached as Exhibit 99.1.
The
information, including the exhibit attached hereto, in this Current Report on Form 8-K shall not be deemed “filed”
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject
to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of
1933 or the Exchange Act, except as otherwise expressly stated in such filing.
| Item 9.01 | Financial Statements and Exhibits |
| (d) | Exhibits. The following material is filed
as an exhibit to this Current Report on Form 8-K: |
| Exhibit |
|
| Number |
|
| |
|
| 99.1 |
Press Release, dated July 31, 2014, issued by the Registrant. |
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
| |
CRYOPORT, INC. |
| |
|
|
| Date: July 31, 2014 |
By: |
/s/ Robert Stefanovich |
| |
|
Robert Stefanovich |
| |
|
Chief Financial Officer |
EXHIBIT INDEX
| Exhibit |
|
| Number |
Description |
|
| |
|
| 99.1 |
Press Release, dated July 31, 2014, issued by the Registrant. |
Exhibit 99.1
Cryoport Reports 92% Revenue Growth for First Quarter of Fiscal 2015
- - -
Expanded customer base and increased
customer productivity is driving revenue growth and significantly higher margins
- - -
Finalized international agreements
with DHL and several global life science companies
LAKE FOREST, CA – July 31, 2014 — Cryoport,
Inc. (OTCBB: CYRX) today announced financial results for the three month period ended June 30, 2014.
Recent Operating Highlights
| · | Achieved 92% revenue growth to $0.94 million for the three month period
ended June 30, 2014 compared to the prior year quarter |
| · | Partnered with DHL to further expand Cryoport’s global reach
using the ‘powered by CryoportSM’’ strategy |
| · | Advanced support of Immudex, an immunotherapy and vaccine development
services company, to support its global distribution of biological materials using Cryoport solutions |
| · | Continued advancement with Cenetron Diagnostics, an industry leading
central laboratory services provider, to support its growth with Cryoport’s customized cryogenic logistics solution |
| · | Commenced engagement with Glaukos Corporation, a leading ophthalmic
medical device company, to support international shipments of sensitive biologic material from iStent® clinical
trial with Cryport’s turn-key frozen logistics solution |
“We
continue to make significant strides in our business development efforts as demonstrated over the last several quarters. This includes
closing a number of strategic customer deals and partnership agreements that will contribute significantly to future revenue growth,”
stated Jerrell Shelton, Chief Executive Officer of Cryoport. “Our
focus on scaling operations in order to drive profitable growth for the business is quickly being recognized. For the first quarter
of fiscal 2015, revenue increased 92% to $0.94 million, with a gross margin of 36%, compared to $0.49 million in revenue and a
gross margin of 11% for the same period last year.”
Mr. Shelton further stated, “We continue to move forward
with our ‘powered by CryoportSM’ partnering strategy designed to expand our sales and marketing reach as
well as increase the awareness of our solutions in the life sciences community. We are excited to report that our distinct strategic
agreements with FedEx and DHL, two of the largest integrators in the world, have allowed us to extend our reach and positioning
to address a larger portion of the market. Our unique approach with each partnership remains proactive, as we look to help educate
and provide ongoing support to each company’s respective sales team for our cryogenic solutions.”
 |
1 |
“We are empowered by the growing demand within the life
science industry to utilize our superior cryogenic logistics solutions to deliver shipments of biologic materials. Our advanced
technology ensures the reliable and efficient delivery of biologic materials, on a global scale. Our clients include companies
working with biologic materials, including stem cells, cell therapies and cell line manufacturing and research, vaccines and other
biologic drug development, IVF, animal health, and many other cell based sciences. In particular, our penetration into the reproductive
medicine/in vitro fertilization market has shown exceptional success with a revenue growth rate of 129% year-over-year.”
Net revenues were $0.94 million, a 92% increase for the three
months ended June 30, 2014, as compared with $0.49 million for the three months ended June 30, 2013. Contributors to this increase
were the ramp up and expansion of logistics services provided to animal health, an increase in revenues from the reproductive medicine/in
vitro fertilization market, the increasing number of customers utilizing Cryoport’s solutions and an increase in the frequency
of shipments compared to the prior year.
Mr. Shelton concluded, “Our team is working hard to continue
our drive to profitability. We are encouraged by the life science market’s growing acceptance of our solutions. As mentioned
in our last earnings release, our SG&A and R&D costs will increase as we continue to scale the business.”
Gross margins for the three months ended June 30, 2014 was 36%
as compared with 11% for the three months ended June 30, 2013. The increase in gross margin was primarily due to the increase in
revenue combined with a reduction in freight as a percentage of revenue and a decrease of fixed manufacturing costs.
Selling, general and administrative expenses increased $0.2
million to $1.4 million for the three months ended June 30, 2014, as compared with $1.2 million for the three months ended June
30, 2013. The increase was primarily due to recruiting fees, the engagement of our investor relations firm and related activities,
legal fees and banking charges.
Loss from operations was $1.2 million for the three months ended
June 30, 2014, as compared to $1.3 million for the three months ended June 30, 2013.
Net loss was $2.3 million, an increase of 74% for the three
months ended June 30, 2014, as compared with a net loss of $1.3 million for the three months ended June 30, 2013. This increase
was primarily driven by a non-cash charge for the beneficial conversion feature of convertible notes issued by Cryoport from December
2013 through March 2014.
As of June 30, 2014, Cryoport had cash and cash equivalents
of $0.2 million compared with $0.4 million as of March 31, 2014.
Further information on Cryoport’s results are included
on the attached unaudited consolidated balance sheets and statements of operations and further explanation of Cryoport’s
financial performance is provided in Cryoport’s quarterly report for the three months ended June 30, 2014 on Form 10-Q,
which will be filed with the Securities and Exchange Commission (SEC) on July 31, 2014. The full report is available on the SEC
Filings section of the Investor Relations section of our website at www.cryoport.com.
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About Cryoport, Inc.
Cryoport provides leading edge cryogenic logistics solutions
to the life sciences industry through the combination of purpose-built proprietary packaging, advanced information technology
and highly skilled logistics expertise which manages the entire cold chain logistics process. Cryoport Express®
liquid nitrogen dry vapor shippers are validated to maintain a constant -150°C temperature for a 10-plus day dynamic shipment
duration, and its Cryoportal™ Logistics Management Platform assists in managing the entire logistics process, including
initial order input, document preparation, customs clearance, courier management, shipment tracking, issue resolution, and delivery.
Cryoport’s total turnkey logistics solutions offer reliability, cost effectiveness, and convenience, while the use of recyclable
and reusable components provides a “green” and environmentally friendly solution. Cryoport service options include
recording the “chain of condition” and “chain of custody” for all shipments thereby meeting the exacting
requirements for scientific work and for regulatory purposes. For more information on Cryoport visit www.cryoport.com.
To download Cryoport's
investor relations app, which offers access to SEC documents, press releases, videos, audiocasts and more, please click to
download on your iPhone and iPad or your Android mobile device.
Forward Looking Statements
Statements in this press release which are not purely historical,
including statements regarding Cryoport, Inc.’s intentions, hopes, beliefs, expectations, representations, projections, plans
or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act
of 1995. It is important to note that the company's actual results could differ materially from those in any such forward-looking
statements. Factors that could cause actual results to differ materially include, but are not limited to, risks and uncertainties
associated with the effect of changing economic conditions, trends in the products markets, variations in the company's cash flow,
market acceptance risks, and technical development risks. The company’s business could be affected by a number of other factors,
including the risk factors listed from time to time in the company's SEC reports including, but not limited to, the annual report
on Form 10-K for the year ended March 31, 2014. The company cautions investors not to place undue reliance on the forward-looking
statements contained in this press release. Cryoport, Inc. disclaims any obligation, and does not undertake to update or revise,
any forward-looking statements in this press release.
Cryoport Contacts:
Todd Fromer / Garth Russell
tfromer@kcsa.com / grussell@kcsa.com
P: 01-212-682-6300
or
Robert Stefanovich
P: 01-619-481-6802
rstefanovich@cryoport.com
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CRYOPORT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(unaudited)
| | |
For the Three Months Ended
June 30, | |
| | |
2014 | | |
2013 | |
| Revenues | |
$ | 936,588 | | |
$ | 487,963 | |
| Cost of revenues | |
| 597,233 | | |
| 433,321 | |
| Gross margin | |
| 339,355 | | |
| 54,642 | |
| Operating costs and expenses: | |
| | | |
| | |
| Selling, general and administrative | |
| 1,427,850 | | |
| 1,222,074 | |
| Research and development | |
| 79,244 | | |
| 92,643 | |
| Total operating costs and expenses | |
| 1,507,094 | | |
| 1,314,717 | |
| Loss from operations | |
| (1,167,739 | ) | |
| (1,260,075 | ) |
| Other (expense) income: | |
| | | |
| | |
| Interest expense | |
| (1,128,878 | ) | |
| (82,219 | ) |
| Other income, net | |
| 953 | | |
| — | |
| Change in fair value of derivatives | |
| — | | |
| 18,757 | |
| Loss before provision for income taxes | |
| (2,295,664 | ) | |
| (1,323,537 | ) |
| Provision for income taxes | |
| (1,600 | ) | |
| — | |
| Net loss | |
| (2,297,264 | ) | |
| (1,323,537 | ) |
| Preferred stock beneficial conversion charge | |
| (741,786 | ) | |
| — | |
| Undeclared preferred dividends | |
| (27,723 | ) | |
| — | |
| Net loss attributable to common stockholders | |
$ | (3,066,773 | ) | |
$ | (1,323,537 | ) |
| Net loss attributable to common stockholders – basic and diluted | |
$ | (0.05 | ) | |
$ | (0.03 | ) |
| Weighted average shares outstanding – basic and diluted | |
| 59,989,321 | | |
| 38,062,826 | |
| |
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CRYOPORT, INC.
SUMMARY CONDENSED CONSOLIDATED BALANCE
SHEETS
| | |
June 30, | | |
March 31, | |
| | |
2014 | | |
2014 | |
| | |
(unaudited) | | |
| |
| ASSETS | |
| Current Assets: | |
| | | |
| | |
| Cash and cash equivalents | |
$ | 170,505 | | |
$ | 369,581 | |
| Accounts receivable, net | |
| 492,865 | | |
| 515,825 | |
| Inventories | |
| 38,601 | | |
| 29,703 | |
| Other current assets | |
| 81,421 | | |
| 196,505 | |
| Total current assets | |
| 783,392 | | |
| 1,111,614 | |
| Property and equipment, net | |
| 364,728 | | |
| 408,892 | |
| Intangible assets, net | |
| 167,425 | | |
| 180,086 | |
| Deposits and other assets | |
| 9,358 | | |
| 9,358 | |
| Total assets | |
$ | 1,324,903 | | |
$ | 1,709,950 | |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | |
| Current Liabilities: | |
| | | |
| | |
| Accounts payable and other accrued expenses | |
$ | 538,988 | | |
$ | 579,678 | |
| Accrued compensation and related expenses | |
| 502,015 | | |
| 454,288 | |
| Convertible debentures payable and accrued interest, net of discount | |
| — | | |
| 1,622,359 | |
| Current portion of related party notes payable | |
| 1,342,334 | | |
| 1,358,120 | |
| Total current liabilities | |
| 2,383,337 | | |
| 4,014,445 | |
| Total stockholders’ deficit | |
| (1,058,434 | ) | |
| (2,304,495 | ) |
| Total liabilities and stockholders’ deficit | |
$ | 1,324,903 | | |
$ | 1,709,950 | |
| |
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