Form 8-K - Current report

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): May 7, 2024

CRYOPORT, INC.

(Exact name of registrant as specified in its charter)

Nevada	001-34632	88-0313393
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

112 Westwood Place, Suite 350, Brentwood, TN 37027
(Address of principal executive offices, including zip code)

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):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol		Name of each exchange on which registered
Common Stock, $0.001 par value		CYRX		The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02

Results of Operations and Financial Condition.

On May 7, 2024, Cryoport, Inc. (the “Company”) issued a press release announcing its financial results for the first quarter ended March 31, 2024. A copy of the press release issued by the Company is attached hereto 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 May 7, 2024 issued by the Company.

104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

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.

Date: May 7, 2024	Cryoport, Inc.

	/s/ Robert Stefanovich
	Robert Stefanovich
	Chief Financial Officer

Exhibit 99.1

Cryoport Reports First Quarter 2024 Financial Results

Q1 2024 revenue of $54.6 million

9% year-over-year increase in Commercial Cell & Gene Therapy revenue

9% year-over-year increase in BioStorage/BioServices revenue

A total of 675 global clinical trials supported as of March 31, 2024

$242 - $252 million full year 2024 revenue guidance reiterated

NASHVILLE, Tennessee, May 7, 2024, - Cryoport, Inc. (NASDAQ: CYRX) (Cryoport), a global leader in supply chain solutions for the life sciences, today announced financial results for the three months ended March 31 (Q1), 2024. Jerrell Shelton, CEO of Cryoport, commented, “For the first quarter, we continued to experience a difficult environment globally. Our quarterly results were disappointing, particularly for our Life Sciences Products. However, as stated when we initially provided our annual guidance, we anticipate our revenue will progressively improve throughout the year and we maintain our full year revenue guidance of $242 to $252 million.

“Our Life Sciences Services revenue growth for the first quarter was softer than anticipated, increasing 3% year-over-year. We believe there is a bright spot however, as the Cell & Gene Therapy market seems to be gaining some momentum again: three (3) new therapies have been approved this year to date; three (3) existing commercial therapies were approved to move to an earlier line of treatment; and two (2) therapies were approved to expand their label or geographic territory. With the expected revenue ramps of existing and new commercial therapies, we should see revenue acceleration from our Cell & Gene Therapy clients over the remainder of the year. Our outlook regarding regulatory approvals for the rest of the year is positive as we believe there are potentially five (5) new therapy approvals and three (3) additional label or geographic expansions for other currently approved therapies.

“First quarter Life Sciences Products revenue was lower than in prior years, largely due to decreased demand for MVE Biological Solutions’ (MVE) cryogenic systems. This was attributable to a continued slowdown in capital equipment investment that began last year. Although global in nature, the most severe pullback in demand continues to be in China. While we expect MVE’s cryogenic system sales to be challenged throughout the remainder of the year as biotech funding, government budgets, and academic budgets are constrained, we want to remind investors that even in this difficult climate, MVE continues to produce positive cash flow for our company. MVE is the leading manufacturer of cryogenic systems worldwide and we are confident in the long-term prospects of our Life Sciences Products business. When demand normalizes, as we anticipate it will, we believe that we will benefit from our position as the global leader in this space.

“Based on our clients’ forecasts and fueled by the aforementioned industry indicators for Cell & Gene Therapies, we continue to invest to expand our support of these life-saving treatments at scale. However, in light of the current macroeconomic challenges and the impact on our financial results, we are implementing a number of initiatives to drive toward positive adjusted EBITDA and cash flow in the near term. These include improved alignment of our global organization, reduction in our work force, leveraging lower cost shared services centers, refining and reprioritizing planned initiatives, and delays in capital spending as a result of reprioritization, all of which we expect should positively impact our results of operations for the second half of 2024,” concluded Mr. Shelton.

In tabular form, Q1 2024 revenue compared to Q1 2023 was as follows:

Cryoport, Inc. and Subsidiaries
Revenue
(unaudited)
	Three Months Ended March 31,
(in thousands)	2024		2023		% Change
Life Sciences Services	$	36,786	$	35,836		3%
BioLogistics Solutions		33,258		32,604		2%
BioStorage/BioServices		3,528		3,232		9%
Life Sciences Products	$	17,806	$	26,981		-34%
Total Revenue	$	54,592	$	62,817		-13%

Revenue from the support of commercial Cell & Gene Therapies increased 9% year-over-year with two new therapies receiving approval during Q1 2024, bringing our current total commercial count to fourteen (14) as of March 31, 2024. Subsequent to quarter-end, in April the United States Food and Drug Administration (FDA) approved ImmunityBio's Anktiva for BCG-unresponsive non-muscle invasive bladder cancer, which is a Cryoport-supported therapy. This brings our number of commercial therapies supported to fifteen (15) as of May 7, 2024.

As of March 31, 2024, Cryoport supported a total of 675 global clinical trials, a net increase of 23 clinical trials over March 31, 2023 with 77 of these clinical trials in Phase 3 . The number of trials by phase and region are as follows:

During the remainder of 2024, we anticipate up to an additional sixteen (16) application filings, and as stated earlier, five (5) new therapy approvals and an additional three (3) label/geographic expansions.

Financial Highlights

Revenue

Total revenue for Q1 2024 was $54.6 million compared to $62.8 million for Q1 2023, a year-over-year decrease of 13% or $8.2 million. Life Sciences Services revenue for Q1 2024 was $36.8 million, up 3% year-over-year, including BioStorage/BioServices revenue of $3.5 million, up 9% year-over-year. Life Sciences Products revenue for Q1 2024 was $17.8 million, down 34% year-over-year.

Gross Margin

Total gross margin was 39.9% for Q1 2024 compared to 43.1% for Q1 2023. Gross margin for Life Sciences Services was 41.3% for Q1 2024 compared to 46.8% for Q1 2023. Gross margin for Life Sciences Products was 37.0% for Q1 2024 compared to 38.2% for Q1 2023.

Operating Costs and Expenses

Operating costs and expenses were $43.1 million for Q1 2024 compared to operating costs and expenses of $37.1 million for Q1 2023. The increase is primarily attributable to personnel and other expenses related to our recent acquisitions and investment in growth initiatives, including our Integricell^TM cryo-processing platform and BioServices offerings.

Net Loss

Net loss for Q1 2024 was $18.9 million compared to a net loss of $5.6 million for Q1 2023.

Net loss attributable to common stockholders was $20.9 million, or $0.43 per share for Q1 2024. This compares to a net loss attributable to common stockholders of $7.6 million, or $0.16 per share for Q1 2023.

Adjusted EBITDA

Adjusted EBITDA was a negative $7.7 million for Q1 2024, compared to $2.9 million for Q1 2023.

Cash, Cash equivalents, and Short-Term Investments

Cryoport held $448.5 million in cash, cash equivalents, and short-term investments as of March 31, 2024.

Note: All reconciliations of GAAP to adjusted (non-GAAP) figures above are detailed in the reconciliation tables included later in the press release.

Outlook

The Company is reiterating its full year 2024 revenue guidance of $242 - $252 million and continues to expect revenue to improve progressively throughout the year. The Company's 2024 guidance is dependent on its current business and expectations, which may be further impacted by, among other things, factors that are outside of our control, such as the global macroeconomic and geopolitical environment, supply chain constraints, inflationary pressures, and the effects of foreign currency fluctuations, as well as the other factors described in the Company's filings with the Securities and Exchange Commission ("SEC"), including in the "Risk Factors" section of its most recently filed periodic reports on Form 10-K and Form 10-Q, as well as in its subsequent filings with the SEC.

Additional Information

Further information on Cryoport’s financial results is included in the attached condensed consolidated balance sheets and statements of operations, and additional explanations of Cryoport’s financial performance are provided in the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2024, which is expected to be filed with the SEC on May 7, 2024. Additionally, the full report will be available in the SEC Filings section of the Investor Relations section of Cryoport’s website at www.cryoportinc.com.

Earnings Conference Call Information

IMPORTANT INFORMATION: In addition to the earnings release, a document titled “Cryoport First Quarter 2024 in Review”, providing a review of Cryoport’s financial and operational performance and a general business update, will be issued at 4:05 p.m. ET on Tuesday, May 7, 2024. The document is designed to be read in advance of the questions and answers conference call and will be accessible at https://ir.cryoportinc.com/news-events/ir-calendar.

Cryoport management will host a conference call at 5:00 p.m. ET on May 7, 2024. The conference call will be in the format of a questions and answers session and will address any queries investors have regarding the Company’s reported results. A slide deck will accompany the call.

Conference Call Information

Date:	Tuesday, May 7, 2024
Time:	5:00 p.m. ET
Dial-in numbers:	1-888-886-7786 (U.S.), 1-416-764-8658 (International)
Confirmation code:	Request the “Cryoport Call” or Conference ID: 15315763
Live webcast:	‘Investor Relations’ section at www.cryoportinc.com or click here. Please allow 10 minutes prior to the call to visit this site to download and install any necessary audio software.

The questions and answers call will be recorded and available approximately three hours after completion of the live event in the Investor Relations section of the Company's website at www.cryoportinc.com for a limited time. To access the replay of the questions and answers click here. A dial-in replay of the call will also be available to those interested, until May 14, 2024. To access the replay, dial 1-844-512-2921 (United States) or 1-412-317-6671 (International) and enter replay entry code: 15315763#.

About Cryoport, Inc.

Cryoport, Inc. (Nasdaq: CYRX), is a global leader in supply chain solutions for cell & gene therapies that enable manufacturers, contract manufacturers (CDMO’s), contract research organizations (CRO’s), developers, and researchers to carry out their respective business with certainty. We provide a broad array of supply chain solutions for the life sciences industry. Through our platform of critical products and solutions including advanced temperature-controlled packaging, informatics, specialized bio-logistics services, bio-storage, bio-services, and cryogenic systems, we are “Enabling the Future of Medicine^TM” worldwide, through our innovative systems, compliant procedures, and agile approach to superior supply chain management.

Our corporate headquarters, located in Nashville, Tennessee, is complimented by over 50 global locations in 17 countries, with key sites in the United States, United Kingdom, France, the Netherlands, Portugal, Germany, Japan, Australia, India, and China.

For more information, visit www.cryoportinc.com or follow via LinkedIn at https://www.linkedin.com/company/cryoportinc or @cryoport on X, formerly known as Twitter at www.twitter.com/cryoport for live updates.

Forward-Looking Statements

Statements in this press release which are not purely historical, including statements regarding the Company'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. These forward-looking statements include, but are not limited to, those related to the Company's industry, business, long-term growth prospects, plans, strategies, acquisitions, future financial results and financial condition, such as the Company's outlook and guidance for full year 2024 revenue and the related assumptions and factors expected to drive revenue, projected growth trends in the markets in which the Company operates, the Company's plans and expectations regarding the launch of new products and services, such as the expected timing and benefits of such products and services launches, the Company’s expectations about future benefits of its acquisitions, and anticipated regulatory filings, approvals, label/geographic expansions or moves to earlier lines of treatment approved with respect to the products of the Company's clients. Forward-looking statements also include those related to the Company’s anticipation that its revenue will progressively improve throughout the year, including anticipated acceleration of revenue from the Company’s Cell & Gene Therapy clients, the Company’s expectations that MVE’s cryogenic system sales will be challenged throughout the remainder of the year, the Company’s expectations of the long-term prospects of its Life Sciences Products business, including the anticipation of demand normalizing, which would allow the Company to benefit from its position as the global leader in this space, and the Company’s planned initiatives to drive toward positive adjusted EBITDA and cash flow in the near term, which it expects should positively impact its results of operations for the second half of 2024. 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 and geopolitical conditions, supply chain constraints, inflationary pressures, the effects of foreign currency fluctuations, 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 other factors discussed in the Company's SEC reports, including in the "Risk Factors" section of its most recently filed periodic reports on Form 10-K and Form 10-Q, as well as in its subsequent filings with the SEC. The forward-looking statements contained in this press release speak only as of the date hereof and the Company cautions investors not to place undue reliance on these forward-looking statements. Except as required by law, the Company disclaims any obligation, and does not undertake to update or revise any forward-looking statements in this press release.

Cryoport Investor Contacts:

Todd Fromer / Scott Eckstein

KCSA Strategic Communications

cryoport@kcsa.com

Cryoport, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
	Three Months Ended March 31, (unaudited)
(in thousands, except share and per share data)	2024			2023
Revenue:
Life Sciences Services revenue	$	36,786		$	35,836
Life Sciences Products revenue		17,806			26,981
Total revenue		54,592			62,817
Cost of revenue:
Cost of services revenue		21,602			19,076
Cost of products revenue		11,215			16,669
Total cost of revenue		32,817			35,745
Gross margin		21,775			27,072
Operating costs and expenses:
Selling, general and administrative		38,304			33,241
Engineering and development		4,752			3,876
Total operating costs and expenses:		43,056			37,117
Loss from operations		(21,281	)		(10,045	)
Other income (expense):
Investment income		2,600			2,467
Interest expense		(1,338	)		(1,509	)
Other income, net		1,339			4,005
Loss before provision for income taxes		(18,680	)		(5,082	)
Provision for income taxes		(215	)		(492	)
Net loss	$	(18,895	)	$	(5,574	)
Paid-in-kind dividend on Series C convertible preferred stock		(2,000	)		(2,000	)
Net loss attributable to common stockholders	$	(20,895	)	$	(7,574	)
Net loss per share attributable to common stockholders - basic and diluted	$	(0.43	)	$	(0.16	)
Weighted average common shares outstanding - basic and diluted		49,019,964			48,362,501

Cryoport, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
	March 31,		December 31,
	2024		2023
(in thousands)	(unaudited)
Current assets:
Cash and cash equivalents	$	49,663	$	46,346
Short-term investments		398,881		410,409
Accounts receivable, net		41,253		42,074
Inventories		25,020		26,206
Prepaid expenses and other current assets		10,887		10,077
Total current assets		525,704		535,112
Property and equipment, net		86,008		84,858
Operating lease right-of-use assets		31,029		32,653
Intangible assets, net		190,088		194,382
Goodwill		107,588		108,403
Deposits		1,674		1,680
Deferred tax assets		758		656
Total assets	$	942,849	$	957,744

Current liabilities:
Accounts payable and other accrued expenses	$	27,376	$	26,995
Accrued compensation and related expenses		14,062		11,409
Deferred revenue		1,777		1,308
Current portion of operating lease liabilities		5,356		5,371
Current portion of finance lease liabilities		301		286
Current portion of notes payable		110		149
Current portion of contingent consideration		-		92
Total current liabilities		48,982		45,610
Convertible senior notes, net		379,153		378,553
Notes payable, net		1,305		1,335
Operating lease liabilities, net		27,798		29,355
Finance lease liabilities, net		916		954
Deferred tax liabilities		2,414		2,816
Other long-term liabilities		312		601
Contingent consideration, net		9,779		9,497
Total liabilities		470,659		468,721
Total stockholders' equity		472,190		489,023
Total liabilities and stockholders' equity	$	942,849	$	957,744

Note Regarding Use of Non-GAAP Financial Measures

To supplement our financial statements, which are presented on the basis of U.S. generally accepted accounting principles (GAAP), the following non-GAAP measures of financial performance as defined in Regulation G of the Securities Exchange Act of 1934 are included in this release: revenue at constant currency, revenue growth rate at constant currency and adjusted EBITDA. Non-GAAP financial measures are not calculated in accordance with GAAP, are not based on any comprehensive set of accounting rules or principles and may be different from non-GAAP financial measures presented by other companies. Non-GAAP financial measures, including revenue at constant currency, revenue growth rate at constant currency and adjusted EBITDA, should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

We believe that revenue growth is a key indicator of how Cryoport is progressing from period to period and we believe that the non-GAAP financial measures, revenue at constant currency and revenue growth rate at constant currency, are useful to investors in analyzing the underlying trends in revenue. Under GAAP, revenue received in local (non-U.S. dollar) currency is translated into U.S. dollars at the average exchange rate for the period presented. As a result, fluctuations in foreign currency exchange rates affect the results of our operations and the value of our foreign assets and liabilities, which in turn may adversely affect results of operations and cash flows and the comparability of period-to-period results of operations. When we use the term “constant currency,” it means that we have translated local currency revenue for the current reporting period into U.S. dollars using the same average foreign currency exchange rates for the conversion of revenue into U.S. dollars that we used to translate local currency revenue for the comparable reporting period of the prior year. Revenue growth rate at constant currency refers to the measure of comparing the current reporting period revenue at constant currency with the reported GAAP revenue for the comparable reporting period of the prior year.

However, we also believe that data on constant currency period-over-period changes have limitations, particularly as the currency effects that are eliminated could constitute a significant element of our revenue and could significantly impact our performance. We therefore limit our use of constant currency period-over-period changes to a measure for the impact of currency fluctuations on the translation of local currency revenue into U.S. dollars. We do not evaluate our results and performance without considering both period-over-period changes in non-GAAP constant currency revenue on the one hand and changes in revenue prepared in accordance with GAAP on the other. We caution the readers of this press release to follow a similar approach by considering revenue on constant currency period-over-period changes only in addition to, and not as a substitute for, or superior to, changes in revenue prepared in accordance with GAAP.

Adjusted EBITDA is defined as net loss adjusted for interest expense, income taxes, depreciation and amortization expense, stock-based compensation expense, acquisition and integration costs, investment income, unrealized (gain)/loss on investments, foreign currency (gain)/loss, gain on insurance claim, changes in fair value of contingent consideration and charges or gains resulting from non-recurring events.

Management believes that adjusted EBITDA provides a useful measure of Cryoport's operating results, a meaningful comparison with historical results and with the results of other companies, and insight into Cryoport's ongoing operating performance. Further, management and the Company’s board of directors utilize adjusted EBITDA to gain a better understanding of Cryoport's comparative operating performance from period to period and as a basis for planning and forecasting future periods. Adjusted EBITDA is also a significant performance measure used by Cryoport in connection with its incentive compensation programs. Management believes adjusted EBITDA, when read in conjunction with Cryoport's GAAP financials, is useful to investors because it provides a basis for meaningful period-to-period comparisons of Cryoport's ongoing operating results, including results of operations, against investor and analyst financial models, helps identify trends in Cryoport's underlying business and in performing related trend analyses, and it provides a better understanding of how management plans and measures Cryoport's underlying business.

Cryoport, Inc. and Subsidiaries
Reconciliation of GAAP net loss to adjusted EBITDA
(unaudited)
	Three Months Ended March 31,
	2024			2023
(in thousands)
GAAP net loss	$	(18,895	)	$	(5,574	)
Non-GAAP adjustments to net loss:
Depreciation and amortization expense		7,469			6,404
Acquisition and integration costs		114			1,257
Investment income		(2,600	)		(2,467	)
Unrealized loss on investments		(1,737	)		(1,424	)
Gain on insurance claim		-			(2,642	)
Foreign currency (gain)/loss		661			157
Interest expense, net		1,338			1,509
Stock-based compensation expense		5,456			5,184
Change in fair value of contingent consideration		293			46
Income taxes		215			492
Adjusted EBITDA	$	(7,686	)	$	2,942

Cryoport, Inc. and Subsidiaries
Total revenue by type for the three months ended March 31, 2024
(unaudited)
	Life Sciences Services			Life Sciences Products			Total
(in thousands)
Non US-GAAP Constant Currency	$	36,781		$	17,809		$	54,590
As Reported		36,786			17,806			54,592
FX Impact [$]		5			(3	)		2
FX Impact [%]		0.0	%		(0.0	%)		0.0	%

Cover	May 07, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	May 07, 2024
Entity File Number	001-34632
Entity Registrant Name	CRYOPORT, INC.
Entity Central Index Key	0001124524
Entity Tax Identification Number	88-0313393
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	112 Westwood Place
Entity Address, Address Line Two	Suite 350
Entity Address, City or Town	Brentwood
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	37027
City Area Code	949
Local Phone Number	470-2300
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	CYRX
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false