Cryo-Cell International Reports $7.97 Million Revenue with 2% Year-Over-Year Growth

Cryo-Cell International, Inc. reported a total revenue of $7.97 million for the three months ended February 28, 2025, reflecting a 2% increase from $7.85 million in the same period last year. The growth was primarily driven by a 4% rise in recurring annual storage fee revenue, although this was partially offset by a 12% decline in the number of new domestic cord blood specimens processed. The company’s processing and storage fees accounted for the majority of revenue at $7.87 million, while public banking revenue rose significantly to $82,079 from $43,713, and product revenue increased to $20,913 from $3,000.

In terms of expenses, Cryo-Cell reported a decrease in cost of sales to $1.98 million from $2.07 million, a 4% reduction attributed to process enhancements and operational efficiencies. Selling, general, and administrative expenses increased by 5% to $4.64 million, driven by higher marketing and personnel costs. Notably, research and development expenses dropped sharply to $98,143 from $502,889, as the company reduced spending related to its clinical study agreement with Duke University. The net income for the quarter was $282,855, down from $556,241 in the prior year, resulting in earnings per share of $0.03 compared to $0.07.

Operationally, Cryo-Cell's total assets decreased to $64.38 million from $64.68 million, with cash and cash equivalents falling to $223,122 from $560,960. The company’s accounts receivable remained relatively stable at $7.21 million, while total liabilities increased to $79.04 million from $77.89 million, largely due to an increase in accounts payable and accrued expenses. The company’s stockholders' deficit also widened to $14.66 million from $13.22 million, primarily due to an accumulated deficit that increased to $34.52 million.

Strategically, Cryo-Cell is currently embroiled in a legal dispute with Duke University regarding a Patent and Technology License Agreement, which has led to the company filing for arbitration. This dispute has caused delays in the company’s plans to expand its services and may impact future investments. The company has also paused its plans to open the Cryo-Cell Institute for Cellular Therapies and the proposed spinoff of its subsidiary, Celle Corp., pending the resolution of the arbitration.

Looking ahead, Cryo-Cell anticipates that its cash reserves, marketable securities, and operational cash flows will be sufficient to meet its financial obligations for at least the next 12 months. However, the company acknowledges that its future performance will depend on increasing revenues from its core services and managing expenses effectively, particularly in light of the ongoing legal challenges and market conditions.