Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Standards

In

August 2020,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

2020

-

06

“Debt-Debt with Conversion and Other Options (

“

Subtopic

470

-

20

”

) and Derivatives and Hedging—Contracts in Entity's Own Equity (

“

Subtopic

815

-

40

”

): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity,”

which, among other things, provides guidance on how to account for contracts on an entity's own equity. This ASU simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. Specifically, the ASU eliminated the need for the Company to assess whether a contract on the entity's own equity (

1

) permits settlement in unregistered shares, (

2

) whether counterparty rights rank higher than shareholder's rights, and (

3

) whether collateral is required. In addition, the ASU requires incremental disclosure related to contracts on the entity's own equity and clarifies the treatment of certain financial instruments accounted for under this ASU on earnings per share. This ASU

may

be applied on a full retrospective of modified retrospective basis. This ASU is effective

January 1, 2022

and interim periods presented. Early adoption of the ASU is permitted by the Company effective

January 1, 2021.

The Company is in the process of assessing the impact of the adoption of the ASU on the Company's financial statements.

In

December 2019,

FASB issued ASU

2019

-

12

“

Income Taxes (

“

Topic

740

”

): Simplifying the Accounting of Income Taxes

,

” which is intended to simplify various aspects related to accounting for income taxes. ASU

2019

-

12

removes certain exceptions to the general principles in Topic

740

and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years and interim periods within those fiscal years, beginning after

December 15, 2020,

with early adoption permitted. The Company doesn't expect the adoption of the standard to have a material impact.

In

June 2016,

the FASB issued

ASU

2016

-

13,

“

Financial Instruments - Credit Losses (

“

Topic

326

”

).

”

The ASU introduces a new accounting model, the Current Expected Credit Losses model (“CECL”), which requiresearlier recognition of credit losses and additional disclosures related to credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses at the time the financial asset is originated or acquired. ASU

2016

-

13

is effective for annual periods beginning after

December 15, 2022,

including interim reporting periods within those annual reporting periods. We expect that the impact of adoption will

not

have a material impact.

Recently Adopted Accounting Standards

In

August 2018,

the FASB issued ASU

2018

-

13,

“

Fair Value Measurement (“Topic

820”

): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement

.” This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. The standard was adopted and did

not

have a material impact on the Company's financial statements.

Revenue from Contract with Customer [Policy Text Block]

Revenue Recognition

Revenue is recognized based on the

five

-step process outlined in Accounting Standards Codification (“ASC”)

606.

The following tables summarize the revenues by product line:

	Three Months Ended September 30, 2020
	Device Revenue		Service Revenue		Other Revenue		Total Revenue
AXP	$	1,137,000	$	32,000	$	--	$	1,169,000
BioArchive		337,000		282,000		--		619,000
CAR-TXpress		332,000		22,000		71,000		425,000
Manual Disposables		100,000		--		--		100,000
Other		26,000		--		16,000		42,000
Total	$	1,932,000	$	336,000	$	87,000	$	2,355,000

	Nine Months Ended September 30, 2020
	Device Revenue		Service Revenue		Other Revenue		Total Revenue
AXP	$	4,009,000	$	103,000	$	--	$	4,112,000
BioArchive		675,000		900,000		--		1,575,000
CAR-TXpress		1,035,000		47,000		214,000		1,296,000
Manual Disposables		499,000		--		--		499,000
Other		276,000		--		39,000		315,000
Total	$	6,494,000	$	1,050,000	$	253,000	$	7,797,000

	Three Months Ended September 30, 2019
	Device Revenue		Service Revenue		Other Revenue		Total Revenue
AXP	$	2,255,000	$	51,000	$	--	$	2,306,000
BioArchive		243,000		351,000		--		594,000
Manual Disposables		221,000		--		--		221,000
CAR-TXpress		875,000		10,000		33,000		918,000
Other		--		--		19,000		19,000
Total	$	3,594,000	$	412,000	$	52,000	$	4,058,000

	Nine Months Ended September 30, 2019
	Device Revenue		Service Revenue		Other Revenue		Total Revenue
AXP	$	6,550,000	$	160,000	$	--	$	6,710,000
BioArchive		1,274,000		1,117,000		--		2,391,000
Manual Disposables		764,000		--		--		764,000
CAR-TXpress		1,365,000		6,000		33,000		1,404,000
Other		5,000		11,000		40,000		56,000
Total	$	9,958,000	$	1,294,000	$	73,000	$	11,325,000

Contract Balances

Generally, all sales are contract sales (with either an underlying contract or purchase order). The Company does

not

have any material contract assets. When invoicing occurs prior to revenue recognition, a contract liability is recorded (as deferred revenue on the consolidated balance sheet). Revenues recognized during the

three

and

nine

months ended

September 30, 2020

that were included in the beginning balance of deferred revenue were

$115,000

and

$547,000,

respectively. Short-term deferred revenues increased from

$620,000

to

$700,000

and long-term deferred revenues decreased from

$1,901,000

to

$1,669,000

during the

nine

months ended

September 30, 2020,

respectively.

Exclusivity Fee

On

August 30, 2019,

the Company entered into a Supply Agreement with Corning Incorporated (the “Supply Agreement”). The Supply Agreement has an initial term of

five

years with automatic

two

-year renewal terms, unless terminated by either party in accordance with the terms of the Supply Agreement (collectively, the “Term”). Pursuant to the Supply Agreement, the Company has granted to Corning exclusive worldwide distribution rights for substantially all

X

-Series

®

products under the CAR-TXpress™ platform (the “Products”) manufactured by its subsidiary, ThermoGenesis Corp., for the duration of the Term, subject to certain geographical and other exceptions. As consideration for the exclusive worldwide distribution rights for the Products, Corning paid a

$2,000,000

exclusivity fee, in addition to any amounts payable throughout the Term for the Products.

The Company performed an evaluation of the revenue recognition of the

$2,000,000

fee under ASC

606.

It determined that the

$2,000,000

will be recognized over time, based on the term of the contract. It was determined that the most likely outcome is the agreement is extended for

one

additional

two

-year term after the initial

five

-year contract is complete. Consequently, the term to recognize the exclusivity fee is over

seven

years. The Company will allocate the upfront fee evenly to each daily performance obligation of providing exclusivity and recognize the revenue ratably over the

seven

-year period. As each day passes, the Company will recognize the portion of the exclusivity fee allocated to that day. For the

three

and

nine

months ended

September 30, 2020,

the Company recorded revenue of

$71,000

and

$214,000,

respectively, related to the exclusivity fee. The remaining balance of the

$2,000,000

payment of

$1,690,000

was recorded to deferred revenue, with

$286,000

in short-term deferred revenue and

$1,404,000

recorded in long-term deferred revenue.

Backlog of Remaining Customer Performance Obligations

The following table includes revenue expected to be recognized and recorded as sales in the future from the backlog of performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period.

	Remainder of 2020		2021		2022		2023		2024 and beyond		Total
Service revenue	$	310,000	$	958,000	$	561,000	$	298,000	$	38,000	$	2,165,000
Clinical revenue		3,000		13,000		13,000		13,000		175,000		217,000
Exclusivity fee		71,000		286,000		286,000		286,000		761,000		1,690,000
Total	$	384,000	$	1,257,000	$	860,000	$	597,000	$	974,000	$	4,072,000

Revenues are net of normal discounts. Shipping and handling fees billed to customers are included in net revenues, while the related costs are included in cost of revenues.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value Measurements

In accordance with ASC

820,

“

Fair Value Measurements and Disclosures

,” fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date.

The guidance also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the factors that market participants would use in valuing the asset or liability. The guidance establishes

three

levels of inputs that

may

be used to measure fair value:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs which are supported by little or no market activity.

The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to their short duration. The fair value of the Company's derivative obligation liability is classified as Level

3

within the fair value hierarchy since the valuation model of the derivative obligation is based on unobservable inputs. The derivative obligation is

not

material to the financial statements of the Company. The impairment of goodwill and intangible assets is a non-recurring Level

3

fair value measurement.

Earnings Per Share, Policy [Policy Text Block]

Net Loss per Share

Net loss per share is computed by dividing the net loss by the weighted average number of common shares outstanding plus pre-funded warrants. For the purpose of calculating basic net loss per share, the additional shares of common stock that are issuable upon exercise of the pre-funded warrants have been included since the shares are issuable for a negligible consideration and have

no

vesting or other contingencies associated with them. As of

September 30, 2020,

all pre-funded warrants previously issued have been exercised and

none

are currently outstanding. The calculation of the basic and diluted earnings per share is the same for all periods presented, as the effect of the potential common stock equivalents noted below is anti-dilutive due to the Company's net loss position for all periods presented. Anti-dilutive securities consisted of the following at

September 30:

	2020		2019
Common stock equivalents of convertible promissory note and accrued interest		6,988,334		6,013,667
Vested Series A warrants		40,441		40,441
Unvested Series A warrants (1)		69,853		69,853
Warrants – other		1,006,190		1,300,091
Stock options		892,149		296,029
Total		8,996,967		7,720,081

___________

( 1 ) The unvested Series A warrants were subject to vesting based upon the amount of funds actually received by the Company in the second close of the August 2015 financing which never occurred. The warrants will remain outstanding but unvested until they expire in February 2021.

Reclassification, Comparability Adjustment [Policy Text Block]

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation. The reclassifications did

not

have an impact on net loss as previously reported.