Cryo-Cell International, Inc. (CCEL) - 10-K Summary
Business Context and Reporting Period
Company: Cryo-Cell International, Inc.
Filing Type: Form 10-K (Annual Report)
Period Ended: November 30, 2025
Business Overview: Cryo-Cell operates three primary segments: (1) private cellular processing and cryogenic storage of umbilical cord blood and tissue stem cells; (2) manufacturing of the PrepaCyte CB Processing System; and (3) public cord blood banking. The company stores over 250,000 specimens globally. A significant portion of the company's strategic outlook is currently impacted by a dispute with Duke University regarding a technology license agreement.
Key Financial Metrics
| Metric | Fiscal 2025 | Fiscal 2024 |
|---|---|---|
| Total Revenue | $31,566,321 | $31,986,106 |
| Net Income (Loss) | $(2,429,385) | $402,095 |
| Operating Income | $482,394 | $3,480,284 |
| Net Cash from Operating Activities | $5,478,606 | $6,010,910 |
| Cash and Cash Equivalents (End of Period) | $319,031 | $560,960 |
| Total Debt (Note Payable + Line of Credit) | $10,653,780 | $11,830,533 |
| Stockholders' Deficit | $(18,605,929) | $(13,216,017) |
Note: The company reported a net loss in 2025 compared to a net profit in 2024, primarily driven by a significant inventory impairment charge.
Material Changes vs. Prior Period
- Revenue Decline: Total revenue decreased by approximately 1% ($419,785) year-over-year. This was driven by a 12% decrease in new domestic cord blood specimens processed, partially offset by a 3% increase in recurring annual storage fees.
- Public Banking Segment Loss: The public cord blood banking segment reported an operating loss of $4,943,503 in 2025, compared to a loss of $646,536 in 2024. This deterioration was caused by a $4,358,834 impairment charge on public inventory due to changes in sales trends and recoverability estimates.
- Profitability Shift: The company transitioned from a net income of $402,095 in 2024 to a net loss of $2,429,385 in 2025. The primary driver was the inventory impairment charge, alongside a loss on marketable securities of $806,267.
- Dividends: The company paid cash dividends totaling $3,231,227 in 2025 ($0.40 per share), compared to $2,020,539 in 2024 ($0.25 per share).
Guidance, Outlook, and Risks
Duke University Dispute (Critical Risk): The company is engaged in arbitration with Duke University regarding a Patent and Technology License Agreement. Cryo-Cell alleges fraudulent inducement and breach of contract, seeking damages exceeding $100 million. Duke has terminated the agreement as of May 17, 2025.
- Impact on Strategy: The company has paused the opening of the Cryo-Cell Institute for Cellular Therapies and placed the proposed spinoff of its subsidiary, Celle Corp., on hold pending the resolution of the dispute.
- Future Investment: Cryo-Cell does not anticipate making further investments in activities related to the Duke License Agreement until the dispute is resolved.
Liquidity and Capital Resources: The company anticipates that cash, marketable securities, and operating cash flows will be sufficient to fund known needs for the next 12 months. However, future capital needs related to the Duke dispute or potential expansion remain uncertain. The company maintains a revolving line of credit with Susser Bank, with a balance of $2,300,000 as of November 30, 2025.
Other Risks:
- Delisting Risk: The company faces potential delisting from NYSE American if it fails to comply with continued listing standards.
- Market Acceptance: Future success depends on the continued market acceptance of stem cell preservation, which faces competition and regulatory scrutiny.
Key Facts for Investor Verification
- Inventory Impairment: Verify the assumptions used for the $4.36 million impairment charge on public cord blood inventory and the resulting impact on future revenue projections for the public banking segment.
- Duke Arbitration Timeline: Monitor the April 2026 final hearing date for the arbitration against Duke University and any updates regarding the potential $100 million+ damages claim or counterclaims.
- Liquidity Position: Assess the company's ability to maintain operations and pay dividends given the low cash balance ($319,031) relative to the stockholders' deficit and ongoing debt obligations.
- Strategic Pivot: Confirm whether the pause on the Celle Corp. spinoff and the Cryo-Cell Institute will be permanent or if the company will pivot to alternative growth strategies independent of the Duke license.