XML 28 R16.htm IDEA: XBRL DOCUMENT v3.8.0.1
Significant Accounting Policies (Policies)
3 Months Ended
Mar. 31, 2018
Accounting Policies [Abstract]  
Business, Policy [Policy Text Block]
Business
 
BioLife Solutions, Inc. (“BioLife,” “us,” “we,” “our,” or the “Company”) is a developer, manufacturer and marketer of proprietary clinical grade cell and tissue hypothermic storage and cryopreservation freeze media. Our proprietary HypoThermosol® and CryoStor® platform of solutions are highly valued in the biobanking, drug discovery, and regenerative medicine markets. Our biopreservation media products are serum-free and protein-free, fully defined, and are formulated to reduce preservation-induced cell damage and death. Our enabling technology provides commercial companies and clinical researchers significant improvement in shelf life and post-preservation viability and function of cells, tissues, and organs. Additionally, for our direct, distributor, and contract customers, we perform custom formulation, fill, and finish services. 
Basis of Accounting, Policy [Policy Text Block]
Basis of Presentation
 
We have prepared the accompanying unaudited financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Pursuant to these rules and regulations, we have condensed or omitted certain information and footnote disclosures we normally include in our annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In management’s opinion, we have made all adjustments (consisting only of normal, recurring adjustments) necessary to fairly present our financial position, results of operations and cash flows. Our interim period operating results do
not
necessarily indicate the results that
may
be expected for any other interim period or for the full year. These financial statements and accompanying notes should be read in conjunction with the financial statements and notes thereto in our Annual Report on Form
10
-K for the year ended
December 31, 2017
on file with the SEC.
 
There have been
no
material changes to our significant accounting policies as compared to the significant accounting policies described in the financial statements in our Annual Report on Form
10
-K for the year ended
December 31, 2017,
except the adoption of Accounting Standards Update (ASU)
No.
2014
-
09,
Revenue from Contracts with Customers (Topic
606
).
Revenue from Contract with Customer [Policy Text Block]
Revenue Recognition
 
On
January 1, 2018,
we adopted Accounting Standards Update (ASU)
No.
2014
-
09,
Revenue from Contracts with Customers (Topic
606
) using the modified retrospective approach applied to those contracts in effect as of
January 1, 2018.
Under this transition method, results for reporting periods beginning after
January 1, 2018
are presented under the new standard, while prior period amounts are
not
adjusted and continue to be reported in accordance with our historical accounting under Topic
605,
Revenue Recognition. Adoption of the new standard did
not
have an impact on the amounts reported in our financial statements and there were
no
other significant changes impacting the timing or measurement of our revenue or our business processes and controls.
 
To determine revenue recognition for contractual arrangements that we determine are within the scope of Topic
606,
we perform the following
five
steps: (i) identify each contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to our performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy the relevant performance obligation. We only apply the
five
-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services we transfer to the customer. Our revenues are primarily generated from the sale of our biopreservation media products. We generally recognize product revenue, including shipping and handling charges billed to customers, when we transfer control of our products to our customers as our contracts have a single performance obligation (transfer of control generally occurs upon shipment of our product). We are
not
required to disclose the value of unsatisfied performance obligations as our contracts have a duration of
one
year or less.
 
We invoice and receive payment from our customers after we recognize revenue, resulting in receivables from our customers that are presented as accounts receivable on our balance sheet. Accounts receivable consist of short-term amounts due from our customers (generally
30
to
90
days) and are stated at the amount we expect to collect. We establish an allowance for doubtful accounts based on our assessment of the collectability of specific customer accounts. Changes in accounts receivable are primarily due to the timing and magnitude of orders of our products, the timing of when control of our products is transferred to our customers and the timing of cash collections.
Equity Method Investments [Policy Text Block]
Equity Method Investments
 
We account for our ownership in our biologistex CCM, LLC joint venture (“SAVSU”) using the equity method of accounting. This method states that if the investment provides us the ability to exercise significant influence, but
not
control, over the investee, we account for the investment under the equity method. Significant influence is generally deemed to exist if the Company’s ownership interest in the voting stock of the investee ranges between
20%
and
50%,
although other factors, such as representation on the investee’s board of directors, are considered in determining whether the equity method of accounting is appropriate. Under the equity method of accounting, the investment is recorded at its initial carrying value in the balance sheet and is periodically adjusted for capital contributions, dividends received and our share of the investee’s earnings or losses together with other-than-temporary impairments which are recorded as a component of other income (expense), net in the statements of operations. Our ownership was effectively reduced from
35%
to
26.7%
during the
three
months ended
March 31, 2018
due to additional cash contributions made by the majority owner, SAVSU Technologies LLC. For the
three
months ended
March 31, 2018
and
2017,
SAVSU’s net loss totaled
$538,413
and
$509,706,
of which our ownership resulted in a
$143,756
and
$229,368
loss, respectively which was recorded as “Loss from equity-method investment in SAVSU.”
Concentration Risk, Credit Risk, Policy [Policy Text Block]
Concentrations of credit risk and business risk
 
In the
three
months ended
March 31, 2018,
we derived approximately
30%
of our product revenue from
two
customers. In the
three
months ended
March 31, 2017,
we derived approximately
21%
of our product revenue from
two
customers.
No
other customer accounted for more than
10%
of revenue in the
three
months ended
March 31, 2018
or
2017.
At
March 31, 2018,
two
customers accounted for approximately
34%
of total gross accounts receivable. At
December 31, 2017,
two
customers accounted for approximately
41%
of total gross accounts receivable. 
 
Revenue from customers located in foreign countries represented
13%
and
22%
of total revenue during the
three
months ended
March 31, 2018
and
2017,
respectively. All revenue from foreign customers are denominated in United States dollars. 
New Accounting Pronouncements, Policy [Policy Text Block]
Recent Accounting Pronouncements
 
In
August 2016,
the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update
No.
2016
-
15,
Statement of Cash Flows (Topic
230
): Classification of Certain Cash Receipts and Cash Payments (ASU
2016
-
15
). The updated guidance clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. We adopted the new standard on
January 1, 2018,
with
no
material impact on our financial statements.
 
In
February 2016,
the FASB issued Accounting Standards Update
No.
2016
-
02,
Leases: Topic
842
(ASU
2016
-
02
) that replaces existing lease guidance. The new standard is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet. Under the new guidance, leases will continue to be classified as either finance or operating, with classification affecting the pattern of expense recognition in the Statements of Operations. Lessor accounting is largely unchanged under ASU
2016
-
02.
Adoption of ASU
2016
-
02
is required for fiscal reporting periods beginning after
December 15, 2018,
including interim reporting periods within those fiscal years with early adoption being permitted. The new standard is required to be applied with a modified retrospective approach to each prior reporting period presented with various optional practical expedients. While the Company expects adoption of ASU
2016
-
02
to lead to a material increase in the assets and liabilities recorded on its Balance Sheet, the Company is still evaluating the overall impact on its financial statements.
 
In
January 2016,
the FASB issued Accounting Standards Update
No.
2016
-
01,
Recognition and Measurement of Financial Assets and Financial Liabilities: Topic
825
(ASU
2016
-
01
). The updated guidance enhances the reporting model for financial instruments, which includes amendments to address aspects of recognition, measurement, presentation and disclosure. We adopted the new standard on
January 1, 2018,
with
no
material impact on our financial statements.
 
With the exception of the new standards discussed above, there have been
no
new accounting pronouncements
not
yet effective that have significance, or potential significance, to our Financial Statements.