Full Press Release Details
Cryoport Continues to Climb,
Reporting 34% Revenue Growth
for the First Quarter of Fiscal
Company added 28 new biopharma
clients during first three months of FY2017 and is supporting 23 of 28 leading CAR-T projects
IRVINE, CA - August 15, 2016 -
Cryoport, Inc. (NASDAQ: CYRX, CRYXW), the world's leading cryogenic logistics company serving the life sciences industry, today
announced financial results for the three-month period ended June 30, 2016.
"Cryoport continued to achieve strong
financial results for the first quarter of our Fiscal Year 2017, reporting 34% year-over-year revenue growth," stated Mr.
Jerrell Shelton, Chief Executive Officer of Cryoport, Inc. "We leveraged FY 2016's momentum to secure additional revenue
opportunities from our existing client base and partnered with multiple new clients across each of our three markets - biopharma,
reproductive medicine and animal health. We also secured $3.5 million in additional funds to support our growth and development
"Our continued revenue growth was
primarily driven by our expanding base of biopharma clients, of which Cryoport secured 28 new clients in the First Quarter of FY2017.
Biopharma continues to account for the largest portion of our total revenues and is our fastest growing market. It is important
to note that we have continued our progress in signing new clients with ground-breaking life sciences companies. Working with the
world's foremost biopharmaceutical corporations, of course, positions us for further growth and serves to validate our reputation
as a best-in-class provider of reliable cold chain logistics solutions. We are pleased with our sales team's demonstrated
ability to further strengthen our market position and secure sales.
"Cryoport's reputation for
dependability is growing rapidly and we are becoming recognized for our innovative cold chain solutions in the life sciences industry.
Many companies within our biopharma client base are conducting clinical trials in the fast-growing regenerative medicine space.
These companies rely on Cryoport to optimize their entire logistics supply chain in support of their clinical trials and ensuing
commercialization activities. The early adoption of our services in this exponential growth area of the biopharma marketplace and
the potential for us to scale with our clients as their therapies are approved is extremely encouraging. Our cold chain logistics
solutions are currently supporting 23 out of the 28 leading clinical-stage CAR T-Cell programs that are underway and are now supporting
more than 90 clinical trials, including 14 phase III projects. In addition, at the end of the First Quarter of FY2017, we signed
our first agreement to support the manufacture of a multi-billion dollar commercially launched biopharma product," continued
"During the First Quarter, we also
continued to expand our presence in reproductive medicine and laid the groundwork for recapturing our growth in the animal health
market. The resiliency of U.S. demand for human reproductive services drove solid revenue growth of 10% year over year for the
First Quarter in reproductive medicine, despite changes in international regulations in some Asian countries. This growth was driven
by focused marketing activities. Our animal health revenue increased 8% sequentially, after experiencing challenges in the second
half of FY 2016 due to a manufacturing slowdown by one of our larger clients.
response to market demand we also rolled out several strategic initiatives during the quarter to accelerate future growth. They
included the launch of Cryoport Biostorage, enabling us to provide comprehensive storage and fulfillment services to our clients
and our Cryoport Temperature Controlled Logistics Consulting Services to address our clients' cold chain advisory needs.
In addition, we introduced the SmartPak II Condition Monitoring
System, which provides advanced, real-time condition and location data for monitoring critical biological commodities and enhancing
our "Chain of Condition and Chain of Custody" information. These new offerings serve to ensure that we continue to
have the most comprehensive, end-to-end services and tools for tailoring client specific cold chain logistics solutions. For Cryoport,
"Science. Logistics. Certainty." is not just a tag line; it is a mandate as we work to strengthen Cryoport's
position as the "go-to" provider of choice for all cold chain logistics needs in the biopharma, reproductive medicine
and animal health markets," concluded Mr. Shelton.
Reproductive Medicine
Further information on Cryoport's
results are included on the attached unaudited condensed consolidated balance sheets and statements of operations, and a further
explanation of Cryoport's financial performance will be provided in Cryoport's quarterly report on Form 10-Q for the
three months ended June 30, 2016, which will be filed with the SEC today, August 15, 2016. The full report will be available on
the SEC Filings section of the Investor Relations section of the Company's website at. www.cryoport.com.
Cryoport will host a conference call at
4:30 p.m. ET today, Monday, August 15th, to review its financial results and business outlook. Cryoport will provide
an update on revenue from its three main lines of business - Biopharma, Animal Health and Reproductive Medicine. Management
will also report on new client activities and provide a general business outlook.
Participants should dial 1-888-539-3696
(United States) or 1-719-325-2420 (International) and request the "Cryoport call" or provide confirmation code: 5435810.
A live audio webcast of the call and slide deck will also be available on the Investor Relations section of the Company's
website at www.cryoport.com or at this link. Please allow 10 minutes
prior to the call to visit this site to download and install any necessary audio software.
An archive of the webcast will be available
approximately three hours after completion of the live event and will be accessible on the Investor Relations section of the Company's
website at www.cryoport.com for a limited time. A dial-in replay of the call will also be available to those interested
until August 22, 2016. To access the replay, dial 1-877-870-5176 (United States) or 1-858-384-5517 (International) and enter replay
pin number: 5435810.
About Cryoport, Inc.
Cryoport is the premier provider of cryogenic
logistics solutions to the life sciences industry through its purpose-built proprietary packaging, information technology and
specialized cold chain logistics expertise. The Company provides leading edge logistics solutions for biologic materials, such
as immunotherapies, stem cells, CAR-T cells and reproductive cells for clients worldwide. Cryoport actively supports points-of-care,
CRO's, central laboratories, pharmaceutical companies, contract manufacturers and university researchers. For more information,
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 from your iPhone
and iPad or Android mobile device.
Forward Looking Statements
Statements in this news 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, 2016. 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.
Todd Fromer / Elizabeth Barker
Cryoport Inc. and Subsidiary
Consolidated Statements of Operations
| Three Months Ended June 30, | ||||||||
| 2016 | 2015 | |||||||
| Revenues | $ | 1,917,566 | $ | 1,431,063 | ||||
| Cost of revenues | 1,135,616 | 943,151 | ||||||
| Gross margin | 781,950 | 487,912 | ||||||
| Operating costs and expenses: | ||||||||
| General and administrative | 1,429,768 | 1,141,748 | ||||||
| Sales and marketing | 1,195,638 | 884,609 | ||||||
| Research and development | 135,799 | 77,724 | ||||||
| Total operating costs and expenses | 2,761,205 | 2,104,081 | ||||||
| Loss from operations | (1,979,255 | ) | (1,616,169 | ) | ||||
| Other expense: | ||||||||
| Interest expense | (21,242 | ) | (303,800 | ) | ||||
| Warrant repricing expense | (1,929,818 | ) | - | |||||
| Other expense, net | (1,915 | ) | (975 | ) | ||||
| Loss before provision for income taxes | (3,932,230 | ) | (1,920,944 | ) | ||||
| Provision for income taxes | (2,484 | ) | (3,320 | ) | ||||
| Net loss | (3,934,714 | ) | (1,924,264 | ) | ||||
| Preferred stock beneficial conversion charge | - | (4,474,348 | ) | |||||
| Undeclared cumulative preferred dividends | - | (208,490 | ) | |||||
| Net loss attributable to common stockholders | $ | (3,934,714 | ) | $ | (6,607,102 | ) | ||
| Net loss per share attributable to common stockholders - basic and diluted | $ | (0.28 | ) | $ | (1.31 | ) | ||
| Weighted average shares outstanding - basic and diluted | 14,199,742 | 5,055,649 |
Cryoport Inc. and Subsidiary
Condensed Consolidated Balance Sheets
| June 30, | March 31, | |||||||
| 2016 | 2016 | |||||||
| (unaudited) | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 4,525,720 | $ | 2,792,526 | ||||
| Accounts receivable, net | 1,015,265 | 1,020,999 | ||||||
| Inventories | 83,544 | 69,801 | ||||||
| Prepaid expenses and other current assets | 288,955 | 248,729 | ||||||
| Total current assets | 5,913,484 | 4,132,055 | ||||||
| Property and equipment, net | 1,410,349 | 1,319,741 | ||||||
| Intangible assets, net | 4,860 | 8,581 | ||||||
| Deposits | 363,403 | 363,403 | ||||||
| Total assets | $ | 7,692,096 | $ | 5,823,780 | ||||
| Current liabilities: | ||||||||
| Accounts payable and other accrued expenses | $ | 1,366,543 | $ | 1,271,926 | ||||
| Accrued compensation and related expenses | 376,844 | 508,754 | ||||||
| Related party notes payable and accrued interest, net of discount | 863,557 | 392,898 | ||||||
| Total current liabilities | 2,606,944 | 2,173,578 | ||||||
| Related party notes payable, net of current portion | - | 554,275 | ||||||
| Total liabilities | 2,606,944 | 2,727,853 | ||||||
| Total stockholders' equity | 5,085,152 | 3,095,927 | ||||||
| Total liabilities and stockholders' equity | $ | 7,692,096 | $ | 5,823,780 |