10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

☑  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

☐  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

For the transition period from to

Commission File Number 001-36362

BioLife Solutions, Inc.

(Exact name of registrant as specified in its charter)

DELAWARE	94-3076866
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

3303 MONTE VILLA PARKWAY, SUITE 310, BOTHELL, WASHINGTON, 98021

(Address of registrant’s principal executive offices, Zip Code)

(425) 402-1400

(Telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  ☑   No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (S232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post said files). Yes  ☑   No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ☐   Accelerated filer  ☐   Non-accelerated filer  ☐   Smaller reporting company  ☑

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.   ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes  ☐   No  ☑

As of August 7, 2018, 16,461,711 shares of the registrant’s common stock were outstanding.

1

BIOLIFE SOLUTIONS, INC.

FORM 10-Q

FOR THE QUARTER ENDED JUNE 30, 2018

TABLE OF CONTENTS

PART I.  FINANCIAL INFORMATION
Item 1.	Financial Statements
	Balance Sheets as of June 30, 2018 (unaudited) and December 31, 2017	3
	Statements of Operations (unaudited) for the three and six month periods ended June 30, 2018 and 2017	4
	Statements of Cash Flows (unaudited) for the six month periods ended June 30, 2018 and 2017	5
	Notes to Financial Statements (unaudited)	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	20
Item 4.	Controls and Procedures	20
PART II.	OTHER INFORMATION
Item 6.	Exhibits	20
	Signatures	21
	Index to Exhibits	22

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

BioLife Solutions, Inc.

Balance Sheets

(Unaudited)

	June 30,			December 31,
	2018			2017
Assets
Current assets
Cash and cash equivalents	$	14,166,604		$	6,663,318
Accounts receivable, trade, net of allowance for doubtful accounts of $0 and $5,575 at June 30, 2018 and December 31, 2017, respectively		2,166,415			1,021,315
Inventories		2,121,881			1,846,746
Prepaid expenses and other current assets		352,507			399,502
Total current assets		18,807,407			9,930,881
Property and equipment
Leasehold improvements		1,284,491			1,284,491
Furniture and computer equipment		693,399			682,466
Manufacturing and other equipment		1,229,318			1,148,006
Subtotal		3,207,208			3,114,963
Less: Accumulated depreciation		(2,163,430	)		(2,008,927	)
Net property and equipment		1,043,778			1,106,036
Investment in SAVSU		1,899,669			1,070,120
Long term deposits		36,166			36,166
Total assets	$	21,787,020		$	12,143,203
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable	$	842,941		$	690,702
Accrued expenses and other current liabilities		172,879			200,548
Accrued compensation		517,692			491,432
Deferred rent		130,216			130,216
Total current liabilities		1,663,728			1,512,898
Deferred rent, long-term		422,828			492,207
Other long-term liabilities		45,364			45,512
Total liabilities		2,131,920			2,050,617
Commitments and contingencies (Note 9)
Shareholders’ equity
Preferred stock, $0.001 par value; 1,000,000 shares authorized, Series A, 4,250 shares designated, and 3,187 and 4,250 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively		3			4
Common stock, $0.001 par value; 150,000,000 shares authorized, 16,107,505 and 14,021,422 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively		16,107			14,021
Additional paid-in capital		92,653,721			84,036,444
Accumulated deficit		(73,014,731	)		(73,957,883	)
Total shareholders’ equity		19,655,100			10,092,586
Total liabilities and shareholders’ equity	$	21,787,020		$	12,143,203

The accompanying Notes to Financial Statements are an integral part of these financial statements

3

BIoLife Solutions, Inc.

Statements of Operations

(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Product sales	$	5,177,854		$	2,557,765		$	8,992,736		$	4,923,966
Cost of product sales		1,536,779			956,839			2,900,608			1,885,241
Gross profit		3,641,075			1,600,926			6,092,128			3,038,725
Operating expenses
Research and development		324,612			318,607			671,066			605,358
Sales and marketing		641,168			546,455			1,252,670			1,058,399
General and administrative		1,390,524			1,077,067			2,743,901			2,180,210
Total operating expenses		2,356,304			1,942,129			4,667,637			3,843,967
Operating income (loss)		1,284,771			(341,203	)		1,424,491			(805,242	)
Other income (expenses), net
Interest income		32,537			76			40,955			124
Interest expense		(1,332	)		(104,582	)		(2,232	)		(187,915	)
Amortization of debt discount		––			(62,398	)		––			(155,996	)
Loss from equity-method investment in SAVSU		(176,798	)		(260,105	)		(320,554	)		(489,473	)
Total other income (expenses), net		(145,593	)		(427,009	)		(281,831	)		(833,260	)
Net income (loss) before provision for income taxes		1,139,178			(768,212	)		1,142,660			(1,638,502	)
Income taxes		––			––			––			––
Net income (loss) after provision for income taxes		1,139,178			(768,212	)		1,142,660			(1,638,502	)
Less: Preferred stock dividends		(93,258	)		––			(199,508	)		––
Net income (loss) attributable to common stockholders	$	1,045,920		$	(768,212	)	$	943,152		$	(1,638,502	)
Basic net income (loss) per common share	$	0.07		$	(0.06	)	$	0.06		$	(0.13	)
Diluted net income (loss) per common share	$	0.05		$	(0.06	)	$	0.05		$	(0.13	)
Basic shares used to compute earnings per share		15,180,169			13,100,820			14,642,378			13,033,106
Diluted shares used to compute earnings per share		20,374,358			13,100,820			19,063,595			13,033,106

The accompanying Notes to Financial Statements are an integral part of these financial statements

4

BioLife Solutions, Inc.

Statements of Cash Flows

(unaudited)

	Six Month Period Ended June 30,
	2018			2017
Cash flows from operating activities
Net income (loss)	$	1,142,660		$	(1,638,502	)
Adjustments to reconcile net income (loss) to net cash used in operating activities
Depreciation		161,200			176,251
Stock-based compensation expense		747,805			643,768
Stock issued for services		––			35,625
Amortization of deferred rent related to lease incentives		(63,499	)		(63,499	)
Amortization of debt discount		––			155,996
Loss from equity-method investment in SAVSU		320,554			489,473
Change in operating assets and liabilities
(Increase) Decrease in
Accounts receivable, trade		(1,145,100	)		20,610
Inventories		(275,135	)		(11,286	)
Prepaid expenses and other current assets		(103,108	)		(135,905	)
Increase (Decrease) in
Accounts payable		168,005			(124,239	)
Accrued compensation and other current liabilities		5,813			56,442
Accrued interest		––			185,417
Deferred rent		(5,880	)		(62,419	)
Net cash provided by (used in) operating activities		953,315			(272,268	)
Cash flows from investing activities
Investment in equity investment SAVSU		(1,000,000	)		––
Purchase of property and equipment		(61,479	)		(78,185	)
Net cash used in investing activities		(1,061,479	)		(78,185	)
Cash flows from financing activities
Proceeds from related party debt		––			1,000,000
Payments on equipment loan		(5,441	)		(8,176	)
Payments on capital lease obligations		(6,541	)		(4,360	)
Proceeds from exercise of common stock options and warrants		8,898,932			314,024
Payments of preferred stock dividends		(212,500	)		––
Payments for redemption of preferred stock		(1,063,000	)		––
Deferred costs related to potential stock issuance		––			(42,228	)
Net cash provided by financing activities		7,611,450			1,259,260
Net increase in cash and cash equivalents		7,503,286			908,807
Cash and cash equivalents - beginning of period		6,663,318			1,405,826
Cash and cash equivalents - end of period	$	14,166,604		$	2,314,633
Non-cash investing and financing activities
Series A preferred stock dividends accrued not yet paid	$	93,258		$	––
Stock issued for services provided in prior period included in liabilities at year-end		35,625			35,624
Receivables converted to equity investment in SAVSU		150,103			––
Preferred stock issued on conversion of related party note payable and accrued interest		––			4,250,000
Preferred stock issuance costs not yet paid		––			8,038
Capital lease obligations incurred for purchases of equipment		––			52,327
Purchase of equipment with debt		17,604			39,243
Purchase of property and equipment not yet paid		19,859			––

The accompanying Notes to Financial Statements are an integral part of these financial statements

5

BIOLIFE SOLUTIONS, INC.

Notes to Financial Statements

(unaudited)

1. Organization and Significant Accounting Policies

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 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).

Significant Accounting Policies Update

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.

6

Equity Method Investments

We account for our ownership in our SAVSU Technologies, Inc. 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. On January 22, 2018, as a result of SAVSU signing a global distribution agreement with World Courier, we amended our agreement with SAVSU to fix our equity position at 35%, prior to any dilution created by financing activities post December 31, 2016, and terminated the sales and marketing services agreement. 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. We increased our ownership to 30.5% for the three months ended June 30, 2018 due to additional cash contributions made by the Company. For the three and six months ended June 30, 2018, SAVSU’s net loss totaled $0.6 million and $1.1 million, respectively which our ownership resulted in a $0.2 million and $0.3 million loss, respectively which was recorded as “Loss from equity-method investment in SAVSU.” For the three and six months ended June 30, 2017, SAVSU’s net loss totaled $0.6 million and $1.1 million, respectively, of which our 45% ownership resulted in a $0.3 million and $0.5 million loss, respectively.

Concentrations of credit risk and business risk

In the three months ended June 30, 2018, we derived approximately 38% of our product revenue from three customers and in the six months ended June 30, 2018, we derived approximately 27% of our revenue from two customers. In the three and six months ended June 30, 2017, we did not derive 10% or more of our product revenue from any one customer. No other customer accounted for more than 10% of revenue in the three months ended March 31, 2018 or 2017. At June 30, 2018, three customers accounted for approximately 38% 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 11% and 13% of total revenue during the three and six months ended June 30, 2018, respectively, and 14% and 18% during the three and six months ended June 30, 2017, respectively. All revenue from foreign customers is denominated in United States dollars.

Recent Accounting Pronouncements

In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 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. The new guidance will be effective for fiscal years and interim periods within those years beginning after December 15, 2018. Early adoption will be permitted for all entities. The Company will adopt ASU 2016-02 on January 1, 2019.

The FASB has issued several additional ASUs that provide additional clarification to certain issues existing after the original ASU was released. In July 2018, the FASB issued ASU 2018-11 Leases (Topic 842) Targeted Improvements which provides entities with an additional and optional transition method to adopt the new lease standard and provide lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for those components as a single component if certain criteria are met. Also, in July 2018, the FASB issued ASU 2018-10 Codification Improvements to Topic 842 to make amendments addressing sixteen issues related to various aspects of ASU 2016-02. The effective date and transition requirements for the amendments in ASU 2018-11 and ASU 2018-10 will be the same as the effective date and transition requirements in ASU 2016-02. The Company is evaluating the effect of ASU 2018-11 and ASU 2018-10 on its consolidated financial statements. While the Company is continuing to evaluate the effects of this ASU, the Company expects to record material right of use assets and lease liabilities on its consolidated balance sheet upon adoption. The new standard will also require expanded qualitative and quantitative disclosures regarding the Company’s leases.

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.

7

2. Fair Value Measurement

In accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” (“ASC Topic 820”), the Company measures its cash and cash equivalents and short-term investments at fair value on a recurring basis. ASC Topic 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC Topic 820 establishes a three-tier value fair hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1 – Observable inputs that reflect quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 – Observable inputs other than quoted prices included in Level 1 for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.

Level 3 – Unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

As of June 30, 2018 and December 31, 2017, the Company does not have liabilities that are measured at fair value.

The following tables set forth the Company’s financial assets measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017, based on the three-tier fair value hierarchy:

As of June 30, 2018	Level 1		Level 2		Total
Bank deposits	$	14,113,337	$	—	$	14,113,337
Money market funds		53,267		—		53,267
Total cash and cash equivalents	$	14,166,604	$	—	$	14,166,604

As of December 31, 2017	Level 1		Level 2		Total
Bank deposits	$	6,610,183	$	—	$	6,610,183
Money market funds		53,135		—		53,135
Total cash and cash equivalents	$	6,663,318	$	—	$	6,663,318

The fair values of bank deposits and money market funds classified as Level 1 were derived from quoted market prices as active markets for these instruments exist. The Company has no level 2 or level 3 financial assets. The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the six months ended June 30, 2018 and the twelve months ended December 31, 2017. 

8

3. Inventory

Inventory consists of the following at June 30, 2018 and December 31, 2017:

	June 30, 2018		December 31, 2017
Raw materials	$	766,709	$	582,816
Work in progress		556,054		453,890
Finished goods		799,118		810,040
Total	$	2,121,881	$	1,846,746

4. Deferred Rent

Deferred rent consists of the following at June 30, 2018 and December 31, 2017:

	June 30, 2018			December 31, 2017
Landlord-funded leasehold improvements	$	1,124,790		$	1,124,790
Less accumulated amortization		(693,024	)		(629,525	)
Total		431,766			495,265
Straight line rent adjustment		121,278			127,158
Total deferred rent	$	553,044		$	622,423

During the three and six month periods ended June 30, 2018, the Company recorded $31,750 and $63,499, respectively, in deferred rent amortization of these landlord funded leasehold improvements. During the three and six month periods ended June 30, 2017, the Company recorded $31,750 and $63,499, respectively, in deferred rent amortization of these landlord funded leasehold improvements.

Straight line rent adjustment represents the difference between cash rent payments and the recognition of rent expense on a straight-line basis over the terms of the lease.

5. Share-based Compensation 

Service Vesting-Based Stock Options

The following is a summary of service vesting-based related stock option activity for the six month period ended June 30, 2018, and the status of service vesting-based options outstanding at June 30, 2018:

	Six Month Period Ended
	June 30, 2018
				Wtd. Avg.
				Exercise
	Options			Price
Outstanding at beginning of year		2,390,012		$	1.85
Granted		—		$	—
Exercised		(142,914	)	$	1.19
Forfeited		(8,022	)	$	4.30
Expired		—		$	—
Outstanding service vesting-based at June 30, 2018		2,239,076		$	1.89
Service vesting-based options exercisable at June 30, 2018		1,652,714		$	1.80

We recognized stock compensation expense related to service vesting-based options of $149,612 and $146,538 during the three months ended June 30, 2018 and 2017, respectively and $302,315 and $316,861 during the six months ended June 30, 2018 and June 30, 2017, respectively. As of June 30, 2018, there was $21,325,800 of aggregate intrinsic value of outstanding service vesting-based stock options, including $15,888,154 of aggregate intrinsic value of exercisable service vesting-based stock options. Intrinsic value is the total pretax intrinsic value for all “in-the-money” options (i.e., the difference between the Company’s closing stock price on the last trading day of the quarter and the exercise price, multiplied by the number of shares) that would have been received by the option holders had all option holders exercised their options on June 30, 2018. This amount will change based on the fair market value of the Company’s stock. Intrinsic value of service vesting-based awards exercised during the three months ended June 30, 2018 and 2017 was $723,532 and $21,104, respectively and during the six months ended June 30, 2018 and 2017 was $993,773 and $91,817, respectively. Weighted average grant date fair value for service based-vesting options granted during the three months ended June 30, 2018 and 2017 was none and for the six months ended June 30, 2018 and 2017 was none and $1.13 per share, respectively. The weighted average remaining contractual life of service vesting-based options outstanding and exercisable at June 30, 2018, is 5.9 years and 5.5 years, respectively. Total unrecognized compensation cost of service vesting-based stock options at June 30, 2018 of $848,055 is expected to be recognized over a weighted average period of 1.8 years.

9

Performance-based Stock Options

The Company’s Board of Directors implemented a Management Performance Bonus Plan for 2017. Based on achieving varying levels of specified revenue for the year ended December 31, 2017, up to 1,000,000 options to purchase shares of the Company’s common stock may be vested. The options have an exercise price of $1.64, and if revenue levels for 2017 were met, would vest 50% on the release of the Company’s audited financial statements for 2017, and 50% one year thereafter. If the minimum performance targets were not achieved, no options would vest. On February 27, 2018, the Company’s Board of Directors determined that, subject to the completion of the 2017 audit, the specified revenue target had been achieved. Accordingly, 999,997 options to purchase shares of the Company’s common stock vest as follows: 50% of the options vested on March 8, 2018 and the remaining 50% will vest on March 8, 2019.

The following is a summary of performance-based stock option activity for the six month period ended June 30, 2018, and the status of performance-based options outstanding at June 30, 2018:

	Six Month Period Ended
	June 30, 2018
				Wtd. Avg.
				Exercise
	Options			Price
Outstanding at beginning of year		999,997		$	1.64
Granted		—		$	—
Exercised		(35,000	)	$	1.64
Outstanding performance-based at June 30, 2018		964,997		$	1.64
Performance-based options exercisable at June 30, 2018		465,001		$	1.64

We recognized stock compensation expense related to performance-based options of $126,901 and $126,903 during the three month periods ending June 30, 2018 and 2017, respectively and $252,408 and $252,411 during the six month periods ending June 30, 2018 and 2017. As of June 30, 2018, there was $9,428,021 of aggregate intrinsic value of outstanding performance-based stock options, including $4,543,060 of aggregate intrinsic value of exercisable performance-based stock options. Intrinsic value is the total pretax intrinsic value for all “in-the-money” options (i.e., the difference between the Company’s closing stock price on the last trading day of the quarter and the exercise price, multiplied by the number of shares) that would have been received by the option holders had all option holders exercised their options on June 30, 2018. This amount will change based on the fair market value of the Company’s stock. Intrinsic value of performance-based awards exercised during the three months and six months ended June 30, 2018 was $285,250 and no performance-based options were exercised in the three and six months ended June 30, 2017. The weighted average remaining contractual life of performance-based options outstanding and exercisable at June 30, 2018, is 3.5 years. Total unrecognized compensation cost of performance-based stock options at June 30, 2018 of $256,592 is expected to be recognized over a weighted average period of 0.5 years.

The fair value of stock options to employees and non-employee directors is estimated on the measurement date using the Black-Scholes model using the following weighted average assumptions (N/A for 2018 as no options were granted in that period).

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The fair value of share-based payments made with stock options to employees and non-employee directors was estimated on the measurement date using the Black-Scholes model using the following weighted average assumptions.

	Three Month Period Ended				Six Month Period Ended
	June 30,				June 30,
	2018		2017		2018		2017
Risk free interest rate		N/A		N/A		N/A		2.07	%
Dividend yield		N/A		N/A		N/A		0.0	%
Expected term (in years)		N/A		N/A		N/A		5.18
Volatility		N/A		N/A		N/A		75	%

Restricted Stock

The following is a summary of restricted stock activity for the six month period ended June 30, 2018, and the status of unvested restricted stock outstanding at June 30, 2018:

	Six Month Period Ended
	June 30, 2018
	Number of Restricted Shares			Grant-Date Fair Value
Outstanding at beginning of year		237,926		$	1.79
Granted		173,768		$	6.47
Vested		(76,538	)	$	1.79
Forfeited		(13,952	)	$	2.47
Outstanding at June 30, 2018		321,204		$	4.29

The aggregate fair value of the awards granted during the three and six months ended June 30, 2018 was $154,440 and $1,125,048, respectively, and during the three and six months ended June 30, 2017 was none and $364,936, respectively, which represents the market value of our common stock on the date that the restricted stock awards were granted. The aggregate fair value of the restricted stock awards that vested for the three months ended June 30, 2018 and 2017 was $173,678 and $20,123, respectively and for the six months ended June 30, 2018 and 2017 was $480,736 and $61,157, respectively.

We recognized stock compensation expense of $97,867 and $40,432 related to restricted stock awards for the three months ended June 30, 2018 and 2017, respectively and $193,082 and $74,496 related to restricted stock awards for the six months ended June 30, 2018 and 2017, respectively. As of June 30, 2018, there was $1,241,718 in unrecognized compensation costs related to restricted stock awards. We expect to recognize those costs over 3.3 years.

We recorded total stock compensation expense for the three and six month periods ended June 30, 2018 and 2017, as follows:

	Three Month Period Ended				Six Month Period Ended
	June 30,				June 30,
	2018		2017		2018		2017
Research and development costs	$	64,752	$	58,815	$	130,346	$	118,080
Sales and marketing costs		69,242		58,051		137,755		117,670
General and administrative costs		191,003		154,983		381,953		323,181
Cost of product sales		49,383		42,024		97,751		84,837
Total	$	374,380	$	313,873	$	747,805	$	643,768

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6. Warrants

At June 30, 2018 and December 31, 2017, we had 4,863,158 and 6,688,849 warrants outstanding, respectively and exercisable with a weighted average exercise price of $4.41 and $4.50, respectively. During the three and six month period ended June 30, 2018, 1,813,691 and 1,825,691 warrants were exercised with a weighted average exercise price of $4.75, yielding proceeds of $8.6 million and $8.7 million, respectively. Subsequent to quarter end through July 30, 2018, an additional 274,798 warrants were exercised with a weighted average exercise price of $4.75, yielding $1.3 million in proceeds to the Company. The outstanding warrants have expiration dates between March 2021 and May 2021. 

7. Income Taxes

We have recorded a full valuation allowance against our deferred tax assets. As we trend towards positive net income, we will continue to assess our valuation allowance. Based on all available evidence, we determined that we have not yet attained a sustained level of profitability. Therefore, we have maintained the full valuation allowance as of quarter ended June 30, 2018. We may release all, or a portion, of the valuation allowance in the near-term, dependent on the verifiable positive evidence observed in future quarters.

8. Earnings Per Share

Basic earnings per share is calculated by dividing the net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated using the weighted average number of common shares outstanding plus dilutive common stock equivalents outstanding as determined by the treasury method during the period. In periods when we have a net loss, common stock equivalents are excluded from our calculation of earnings per share as their inclusion would have an antidilutive effect. For the three and six month periods ended June 30, 2018, we excluded a nominal amount of unvested stock awards from our calculation of diluted weighted average shares because they were antidilutive. For the three and six month periods ended June 30, 2017, we excluded 3 million common stock options, 7 million warrants, and 273,000 unvested stock awards from our calculation of diluted weighted average shares because they were antidilutive.

The following table shows the calculation of basic and diluted earnings per shares:

	Three Month Period Ended					Six Month Period Ended
	June 30,					June 30,
	2018		2017			2018		2017
Numerator:
Net income (loss) attributable to common stockholders	$	1,045,920	$	(768,212	)	$	943,152	$	(1,638,502	)
Denominator:
Weighted average basic shares outstanding		15,180,169		13,100,820			14,642,378		13,033,106
Effect of dilutive securities		5,194,189		—			4,421,217		—
Weighted average diluted shares		20,374,358		13,100,820			19,063,595		13,033,106
Basic earnings per share	$	0.07	$	(0.06	)	$	0.06	$	(0.13	)
Diluted earnings per share	$	0.05	$	(0.06	)	$	0.05	$	(0.13	)

9. Commitments & Contingencies

Leases

We lease approximately 30,000 square feet in our Bothell, Washington headquarters. The term of our lease continues until July 31, 2021 with two options to extend the term of the lease, each of which is for an additional period of five years, with the first extension term commencing, if at all, on August 1, 2021, and the second extension term commencing, if at all, immediately following the expiration of the first extension term. In accordance with the amended lease agreement, our monthly base rent is approximately $58,000 at June 30, 2018, with scheduled annual increases each August and again in October for the most recent amendment. We are also required to pay an amount equal to the Company’s proportionate share of certain taxes and operating expenses. 

Employment Agreements

We have employment agreements with our Chief Executive Officer, Chief Financial Officer, Chief Technology Officer, Vice President of Operations, Vice President of Marketing, and Vice President of Sales. None of these employment agreements is for a definitive period, but rather each will continue indefinitely until terminated in accordance with its terms. The agreements provide for a base annual salary, payable in monthly (or shorter) installments. Under certain conditions and for certain of these officers, we may be required to pay additional amounts upon terminating the officer or upon the officer resigning for good reason. 

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Litigation

From time to time, the Company is subject to various legal proceedings that arise in the ordinary course of business, none of which are currently material to the Company’s business.

10. Preferred Stock

As of June 30, 2018, we accrued a dividend of $93,258 on the series A preferred stock which is included in accrued expenses and other current liabilities in the balance sheet at June 30, 2018. The dividend was paid subsequent to quarter end on July 2, 2018. On May 17, 2018, we redeemed 1,063 series A preferred shares for $1,063,000. There are 3,187 Series A shares outstanding as of June 30, 2018.

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11. Revenue

We currently operate as one operating segment focusing on biopreservation media.

The following table disaggregates revenue by market segment and distributors:

	Three Month Period Ended				Six Month Period Ended
	June 30,				June 30,
	2018		2017		2018		2017
Net product sales:
Regenerative medicine	$	2,985,086	$	1,083,637	$	5,088,638	$	2,134,807
Distributors		1,695,153		694,366		2,734,396		1,454,054
Drug discovery		263,023		488,894		639,998		766,808
BioBanking		234,592		290,868		529,704		568,297
Total	$	5,177,854	$	2,557,765	$	8,992,736	$	4,923,966

12. Subsequent Event

On August 9, 2018, Casdin Capital LLC, (“Casdin”) a New York-based, life science-focused investment firm and current stockholder, agreed to invest $20 million in BioLife to support the Company’s growth strategy of acquiring synergistic cell and gene therapy manufacturing tools and services or technologies. Casdin’s private purchase of an additional 1,428,571 newly issued shares of common stock at a price of $14.00 per share was pursuant to a share purchase agreement, pursuant to which Casdin also agreed to restrict any re-sale of the new se shares for a 12 month period. 

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward Looking Statements

This Quarterly Report on Form 10-Q contains “forward-looking statements”. These forward-looking statements involve a number of risks and uncertainties. We caution readers that any forward-looking statement is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statement. These statements are based on current expectations of future events. Such statements include, but are not limited to, statements about future financial and operating results, plans, objectives, expectations and intentions, costs and expenses, interest rates, outcome of contingencies, financial condition, results of operations, liquidity, business strategies, cost savings, objectives of management and other statements that are not historical facts. You can find many of these statements by looking for words like “believes,” “expects,” “anticipates,” “estimates,” “may,” “should,” “will,” “could,” “plan,” “intend,” or similar expressions in this Quarterly Report on Form 10-Q. We intend that such forward-looking statements be subject to the safe harbors created thereby. Examples of these forward-looking statements include, but are not limited to:

● anticipated product developments, regulatory filings and related requirements;

● timing and amount of future contractual payments, product revenue and operating expenses;

● market acceptance of our products and the estimated potential size of these markets; and

● projections regarding liquidity, capital requirements and the terms of any financing agreements.

These forward-looking statements are based on the current beliefs and expectations of our management and are subject to significant risks and uncertainties. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results may differ materially from current expectations and projections. These risks and uncertainties include those factors described in greater detail in the risk factors disclosed in our Form 10-K for the fiscal year ended December 31, 2017 filed with the SEC. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those anticipated in these forward-looking statements. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this Quarterly Report on Form 10-Q or, in the case of documents referred to or incorporated by reference, the date of those documents.

All subsequent written or oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect the occurrence of unanticipated events, except as may be required under applicable U.S. securities law. If we do update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

Overview

Management’s discussion and analysis provides additional insight into the Company and is provided as a supplement to, and should be read in conjunction with, our Annual Report on Form 10-K for the fiscal year ended December 31, 2017 filed with the SEC.

We were incorporated in Delaware in 1987 under the name Trans Time Medical Products, Inc. In 2002, the Company, then known as Cryomedical Sciences, Inc., and engaged in manufacturing and marketing cryosurgical products, completed a merger with our wholly-owned subsidiary, BioLife Solutions, Inc., which was engaged as a developer and marketer of biopreservation media products for cells and tissues. Following the merger, we changed our name to BioLife Solutions, Inc.

Our proprietary, clinical grade HypoThermosol® FRS and CryoStor® biopreservation media products are marketed to the regenerative medicine, biobanking and drug discovery markets, including hospital-based stem cell transplant centers, pharmaceutical companies, cord blood and adult stem cell banks, hair transplant centers, and suppliers of cells to the drug discovery, toxicology testing and diagnostic markets. All of our biopreservation media products are serum-free and protein-free, fully defined, and are manufactured under current Good Manufacturing Practices (cGMP) using United States Pharmacopia (USP)/Multicompendial or the highest available grade components.

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Our patented biopreservation media products are formulated to reduce preservation-induced, delayed-onset cell damage and death. Our platform enabling technology provides our customers significant shelf life extension of biologic source material and final cell products, and also greatly improved post-preservation cell, tissue, and organ viability and function.

The discoveries made by our scientists and consultants relate to how cells, tissues, and organs respond to the stress of hypothermic storage, cryopreservation, and the thawing process. These discoveries enabled the formulation of innovative biopreservation media products that protect biologic material from preservation-related cellular injury, much of which is not apparent immediately after return to normothermic body temperature. Our product formulations have demonstrated notable reduction in apoptotic (programmed) and necrotic (pathologic) cell death mechanisms and are enabling the clinical and commercial development of dozens of innovative regenerative medicine products.

Additionally, as of June 30, 2018, we owned a 30.5% interest in our joint venture, biologistex CCM, LLC (“SAVSU”), a Delaware limited liability company. Our ownership was effectively increased from 26.7% on March 31, 2018 to 30.5% during the three months ended June 30, 2018 due to an additional million-dollar cash contribution we made on May 16, 2018. SAVSU is a privately held designer and manufacturer of innovative high-performance cloud-connected passive storage and transport containers for temperature sensitive biologics and pharmaceuticals. SAVSU’s mission is to improve global health by greatly reducing the waste and risks associated with the improper freezing and overheating of thermal-sensitive medicines and biologics. SAVSU has developed proprietary state-of-the-art technology to ultimately lower costs and improve delivery of these most essential materials.

Highlights for the Second Quarter of 2018

● Revenue was $5.2 million in the second quarter of 2018, an increase of 102% over the same period in 2017. For the first six months of 2018, revenue increased 83% as compared to the same period last year. Second quarter revenue growth was primarily driven by a 176% increase in direct sales to our regenerative medicine customers and a 144% growth from our distributors compared to the same period in 2017.

● Gross margin in the second quarter of 2018 was 70%, compared to 63% in the second quarter of 2017. For the first six months of 2018 gross margin was 68% compared to 62% in the first six months of 2017. The margin increased due to higher average selling price per liter and increased sales volume.

● Operating income for the three and six months ended June 30, 2018 was $1.3 million and $1.4 million, respectively compared to an operating loss of $0.3 million and $0.8 million for the three and six months ended June 30, 2017, respectively. We were able to generate operating income due to the increase in sales and gross margin from the same period in the prior year.

● In the three and six months ended June 30, 2018, net income attributable to common stockholders was $1.0 million and $0.9 million, respectively. This compared to a net loss attributable to common stockholders of $0.8 million and $1.6 million for the three and six months ended June 30, 2017, respectively. We were able to generate a net profit due to the increase in sales and gross margin from the same period in the prior year.

● Gained 48 new customers in the second quarter of 2018, including first time orders from 37 regenerative medicine companies.

● Entered into an agreement with Casdin Capital LLC, a New York-based, life science-focused investment firm, to purchase 1,000,000 BioLife Solutions common shares in a private transaction from our second largest shareholder.

● Invested $1 million in SAVSU Technologies, Inc. SAVSU's majority shareholder has also agreed to invest an additional $1 million in SAVSU.

● Redeemed 25% of the 4,250 shares of Series A Preferred stock outstanding for $1,063,000. As a result, there are 3,187 Series A shares outstanding.

● Joined the Russell Microcap® Index at the conclusion of the Russell US Indexes annual reconstitution, effective after the US market opened on June 25, 2018.

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Results of Operations

Our revenue, results of operations and cash balances are likely to fluctuate significantly from quarter-to-quarter. These fluctuations are due to a number of factors, specifically the progress of our customers’ clinical trials, where the pace of enrollment affects customer orders for our products. The majority of our net sales come from a relatively small number of customers and a limited number of market sectors. Each of these sectors is subject to macroeconomic conditions as well as trends and conditions that are sector specific. Any weakness in the market sectors in which our customers are concentrated could affect our business and results of operations.

Comparison of Results of Operations for the Three and Six Month Periods Ended June 30, 2018 and 2017

Percentage comparisons have been omitted within the following table where they are not considered meaningful.

Revenue and Gross Margin:

	Three Month Period Ended
	June 30,
	2018			2017			% Change
Revenue:
Total revenue	$	5,177,854		$	2,557,765			102	%
Cost of sales		1,536,779			956,839			61	%
Gross profit	$	3,641,075		$	1,600,926			127	%
Gross margin %		70	%		63	%

	Six Month Period Ended
	June 30,
	2018			2017			% Change
Revenue:
Total revenue	$	8,992,736		$	4,923,966			83	%
Cost of sales		2,900,607			1,885,241			54	%
Gross profit	$	6,092,129		$	3,038,725			100	%
Gross margin %		68	%		62	%

Biopreservation Media Product Sales. Our core products are sold through both direct and indirect channels to customers in the regenerative medicine, biobanking and drug discovery markets. Sales of our core products in the three and six months ended June 30, 2018 increased 102% and 83%, respectively, compared to the same periods in 2017, due primarily to an increase in volume and selling price per liter sold due to increased orders from the regenerative medicine segment and our distributors. Revenue growth for the second quarter was driven by a 176% year over year increase from customers in the regenerative medicine segment and 144% growth from sales to our distributors. We expect to see continued growth in adoption and use of our proprietary biopreservation media products.

Cost of Sales. Cost of sales consists of raw materials, labor and overhead expenses. Cost of sales in the three and six months ended June 30, 2018 increased compared to the same periods in 2017 due to increased sales of our proprietary products partially offset by lower overhead costs per liter sold in the three and six months ended June 30, 2018.

Gross Margin. Gross margin as a percentage of revenue was 70% and 68% in the three and six months ended June 30, 2018, compared to 63% and 62% in the three and six months ended June 30, 2017. Gross margin in the three and six months ended June 30, 2018 increased compared to the same periods in 2017 due to increased average selling price per liter sold and lower overhead costs per liter sold resulting in higher production volume to support increased demand in the three and six months ended June 30, 2018.

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Revenue Concentration. In the three months ended June 30, 2018, we derived approximately 38% of our product revenue from three customers and in the six months ended June 30, 2018, we derived approximately 27% of our revenue from two customers. In the three and six months ended June 30, 2017, we did not derive 10% or more of our product revenue from any one customer.  

Operating Expenses

Our operating expenses for the three and six month periods ended June 30, 2018 and 2017 were:

	Three Month Period Ended
	June 30,
	2018			2017			% Change
Operating Expenses:
Research and development	$	324,612		$	318,607			2	%
Sales and marketing		641,168			546,455			17	%
General and administrative		1,390,524			1,077,067			29	%
Operating Expenses	$	2,356,304		$	1,942,129			21	%
% of revenue		46	%		76	%

	Six Month Period Ended
	June 30,
	2018			2017			% Change
Operating Expenses:
Research and development	$	671,066		$	605,358			11	%
Sales and marketing		1,252,670			1,058,399			18	%
General and administrative		2,743,901			2,180,210			26	%
Operating Expenses	$	4,667,637		$	3,843,967			21	%
% of revenue		52	%		78	%

Research and Development. Research and development expenses consist primarily of salaries and other personnel-related expenses, consulting and other outside services, laboratory supplies, and other costs. We expense all research and development costs as incurred. Research and development expenses for the three and six months ended June 30, 2018 increased compared to the three and six months ended June 30, 2017, due primarily to higher performance-based compensation.

Sales and Marketing. Sales and marketing expenses consist primarily of salaries and other personnel-related expenses, consulting, trade shows and advertising. Sales and marketing expenses for the three and six months ended June 30, 2018 increased compared to the three and six months ended June 30, 2017, due primarily to higher performance-based compensation.

General and Administrative Expenses. General and administrative expenses consist primarily of personnel-related expenses, non-cash stock-based compensation for administrative personnel and members of the board of directors, professional fees, such as accounting and legal, and corporate insurance. General and administrative expenses for the three and six months ended June 30, 2018 increased compared to the three and six months ended June 30, 2017, due primarily to investor relations, travel and consulting fees, quality system consulting fees, higher performance-based compensation and corporate non-income taxes.

Other Income (Expenses)

Interest Expense. The interest expense in the three and six months ended June 30, 2018 is due to equipment financing. Interest expense in the three and six months ended June 30, 2017 is due to the note payable related to the credit facility financing arrangement entered into in May 2016.

Amortization of debt discount. The amortization of short-term debt discount in the three and six months ended June 30, 2017 is due to the amortization of the allocated value of the detachable warrants associated with the credit facility financing on arrangement entered into in May 2017 which was fully amortized May 31, 2017.

Loss on equity method investment. The non-cash loss associated with our proportionate share of the net loss in our investment in SAVSU for the period based on our 26.7% ownership for the three months ended March 31, 2018, and 30.5% ownership for the three months ended June 30, 2018. In 2017, we had a 45% ownership in both the three and six month periods ended June 30, 2017.

Interest income. The increase in interest income in the three and six months ended June 30, 2018 compared to the same periods in 2017 is due to the higher average short-term liquid investments balance in 2018 compared to 2017.

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Liquidity and Capital Resources 

On June 30, 2018, we had $14.2 million in cash and cash equivalents, compared to cash and cash equivalents of $6.7 million at December 31, 2017. During the six month period ended June 30, 2018, 1.8 million warrants were exercised with a weighted average exercise price of $4.75, yielding $8.7 million in proceeds to the Company. Subsequent to quarter end through July 30, 2018, an additional 0.3 million warrants were exercised with a weighted average exercise price of $4.75, yielding $1.3 million in proceeds to the Company. Based on our current expectations with respect to our revenue and operating expenses, we expect that our current level of cash and cash equivalents will be sufficient to meet our liquidity needs for at least the next twelve months. We may also seek equity or debt financing opportunistically if we believe that market conditions are conducive to obtaining such financing. We currently have an S-3 registration statement filed with the SEC which may be utilized to obtain additional financing.

We continue to monitor and evaluate opportunities to strengthen our balance sheet and competitive position over the long term. These actions may include acquisitions or other strategic transactions that we believe would generate significant advantages and substantially strengthen our business. The consideration we pay in such transactions may include, among other things, shares of our common stock, other equity or debt securities of our Company or cash. We may elect to seek debt or equity financing in anticipation of, or in connection with, such transactions or to fund or invest in any operations acquired thereby.

Net Cash Provided by/ Used In Operating Activities

During the six months ended June 30, 2018, net cash provided by operating activities was $1.0 million compared to net cash used in operating activities of $0.3 million for the six months ended June 30, 2017. The increase in cash from operating activities was the result of increased sales and gross margins partially offset by an increase in accounts receivable from the prior period.

Net Cash Used In Investing Activities

Net cash used in investing activities totaled $1.1 million during the six months ended June 30, 2018, compared to $0.1 million for the six months ended June 30, 2017. The increase in cash used by investing activities was primarily the result of the additional investment in SAVSU.

Net Cash Provided by Financing Activities

Net cash provided by financing activities was $7.6 million and $1.3 million in the six months ended June 30, 2018 and 2017, respectively. Net cash provided by financing activities during the six months ended June 30, 2018 was primarily the result of proceeds received from warrant exercises and employee stock option exercises. Net cash provided by financing activities in the six months ended June 30, 2017 was the result of proceeds received from our credit facility, warrant exercises and employee stock option exercises.

Off-Balance Sheet Arrangements

As of June 30, 2018, we did not have any off-balance sheet arrangements.

Critical Accounting Policies and Significant Judgments and Estimates

Management’s discussion and analysis of our financial condition and results of operations is based on our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of financial statements requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as reported revenues and expenses during the reporting periods. On an ongoing basis, we evaluate estimates, including, but not limited to those related to accounts receivable allowances, determination of fair value of share-based compensation, contingencies, income taxes, and expense accruals. We base our estimates on historical experience and on other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates under different assumptions or conditions. 

Our critical accounting policies and estimates have not changed significantly from those policies and estimates disclosed under the heading “Critical Accounting Policies and Significant Judgments and Estimates” in Part II, Item 7, “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, filed with the SEC.

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Contractual Obligations

We previously disclosed certain contractual obligations and contingencies and commitments relevant to us within the financial statements and Management Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC on March 9, 2018. There have been no significant changes to these obligations in the three months ended June 30, 2018. For more information regarding our current contingencies and commitments, see note 8 to the financial statements included above. 

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Not applicable.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures. We maintain disclosure controls and procedures that are designed to ensure that material information required to be disclosed in our periodic reports filed under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms and to ensure that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer as appropriate, to allow timely decisions regarding required disclosure. During the quarter ended June 30, 2018, we carried out an evaluation, under the supervision and with the participation of our management, including the chief executive officer and chief financial officer, as required by the rules and regulations under the Exchange Act, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act. Based on this evaluation, our chief executive officer and chief financial officer concluded that, as of June 30, 2018, our disclosure controls and procedures were effective.

Changes in Internal Control over Financial Reporting. There have been no changes in our internal control over financial reporting that occurred during the quarter ended June 30, 2018 that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

Limitations on Effectiveness of Control. Our management, including our chief executive officer and chief financial officer, does not expect that our disclosure controls and procedures or our internal controls over financial reporting will prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our Company have been detected.

PART II: Other Information

Item 6. Exhibits

See accompanying Index to Exhibits included after the signature page of this report for a list of exhibits filed or furnished with this report.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

	BIOLIFE SOLUTIONS, INC.
Dated: August 9, 2018	/s/ Roderick de Greef
	Roderick de Greef
	Chief Financial Officer
	(Duly authorized officer and principal financial and accounting officer)

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BioLife Solutions, Inc.

INDEX TO EXHIBITS

Exhibit No.	Description
31.1	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

22

EX-31.1

  EXHIBIT 31.1

CERTIFICATION PURSUANT TO

RULE 13a-14(a) or RULE 13d-14(a) OF THE

SECURITIES EXCHANGE ACT OF 1934

I, Michael Rice, certify that:

1. I have reviewed this quarterly report on Form 10-Q of BioLife Solutions, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 9, 2018

/s/ Michael Rice

Michael Rice

Chief Executive Officer

EX-31.2

  EXHIBIT 31.2

CERTIFICATION PURSUANT TO

RULE 13a-14(a) or RULE 13d-14(a) OF THE

SECURITIES EXCHANGE ACT OF 1934

I, Roderick de Greef, certify that:

1. I have reviewed this quarterly report on Form 10-Q of BioLife Solutions, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 9, 2018

/s/ Roderick de Greef

Roderick de Greef

Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of BioLife Solutions, Inc. (the “Company”) on Form 10-Q for the three month period ended June 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael Rice, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 9, 2018

/s/ Michael Rice

Michael Rice

Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of BioLife Solutions, Inc. (the “Company”) on Form 10-Q for the three month period ended June 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Roderick de Greef, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 9, 2018

/s/ Roderick de Greef

Roderick de Greef

Chief Financial Officer

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 07, 2018
Document Information [Line Items]
Entity Registrant Name	BIOLIFE SOLUTIONS INC
Entity Central Index Key	0000834365
Trading Symbol	blfs
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		16,461,711
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Balance Sheets (Current Period Unaudited) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 14,166,604	$ 6,663,318
Accounts receivable, trade, net of allowance for doubtful accounts of $0 and $5,575 at June 30, 2018 and December 31, 2017, respectively	2,166,415	1,021,315
Inventories	2,121,881	1,846,746
Prepaid expenses and other current assets	352,507	399,502
Total current assets	18,807,407	9,930,881
Property and equipment
Leasehold improvements	1,284,491	1,284,491
Furniture and computer equipment	693,399	682,466
Manufacturing and other equipment	1,229,318	1,148,006
Subtotal	3,207,208	3,114,963
Less: Accumulated depreciation	(2,163,430)	(2,008,927)
Net property and equipment	1,043,778	1,106,036
Investment in SAVSU	1,899,669	1,070,120
Long term deposits	36,166	36,166
Total assets	21,787,020	12,143,203
Current liabilities
Accounts payable	842,941	690,702
Accrued expenses and other current liabilities	172,879	200,548
Accrued compensation	517,692	491,432
Deferred rent	130,216	130,216
Total current liabilities	1,663,728	1,512,898
Deferred rent, long-term	422,828	492,207
Other long-term liabilities	45,364	45,512
Total liabilities	2,131,920	2,050,617
Commitments and contingencies (Note 9)
Shareholders’ equity
Preferred stock, $0.001 par value; 1,000,000 shares authorized, Series A, 4,250 shares designated, and 3,187 and 4,250 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively	3	4
Common stock, $0.001 par value; 150,000,000 shares authorized, 16,107,505 and 14,021,422 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively	16,107	14,021
Additional paid-in capital	92,653,721	84,036,444
Accumulated deficit	(73,014,731)	(73,957,883)
Total shareholders’ equity	19,655,100	10,092,586
Total liabilities and shareholders’ equity	$ 21,787,020	$ 12,143,203

XML

Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Accounts receivable, allowance for doubtful accounts	$ 0	$ 5,575
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	1,000,000	1,000,000
Preferred stock, issued (in shares)	3,187	4,250
Preferred stock, outstanding (in shares)	3,187	4,250
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	150,000,000	150,000,000
Common stock, issued (in shares)	16,107,505	14,021,422
Common stock, outstanding (in shares)	16,107,505	14,021,422
Series A Preferred Stock [Member]
Preferred stock, designated (in shares)	4,250	4,250
Preferred stock, outstanding (in shares)	3,187

XML

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Product sales	$ 5,177,854	$ 2,557,765	$ 8,992,736	$ 4,923,966
Cost of product sales	1,536,779	956,839	2,900,608	1,885,241
Gross profit	3,641,075	1,600,926	6,092,128	3,038,725
Operating expenses
Research and development	324,612	318,607	671,066	605,358
Sales and marketing	641,168	546,455	1,252,670	1,058,399
General and administrative	1,390,524	1,077,067	2,743,901	2,180,210
Total operating expenses	2,356,304	1,942,129	4,667,637	3,843,967
Operating income (loss)	1,284,771	(341,203)	1,424,491	(805,242)
Other income (expenses), net
Interest income	32,537	76	40,955	124
Interest expense	(1,332)	(104,582)	(2,232)	(187,915)
Amortization of debt discount		(62,398)		(155,996)
Loss from equity-method investment in SAVSU	(176,798)	(260,105)	(320,554)	(489,473)
Total other income (expenses), net	(145,593)	(427,009)	(281,831)	(833,260)
Net income (loss) before provision for income taxes	1,139,178	(768,212)	1,142,660	(1,638,502)
Income taxes
Net income (loss) after provision for income taxes	1,139,178	(768,212)	1,142,660	(1,638,502)
Less: Preferred stock dividends	(93,258)		(199,508)
Net income (loss) attributable to common stockholders	$ 1,045,920	$ (768,212)	$ 943,152	$ (1,638,502)
Basic net income (loss) per common share (in dollars per share)	$ 0.07	$ (0.06)	$ 0.06	$ (0.13)
Diluted net income (loss) per common share (in dollars per share)	$ 0.05	$ (0.06)	$ 0.05	$ (0.13)
Basic shares used to compute earnings per share (in shares)	15,180,169	13,100,820	14,642,378	13,033,106
Diluted shares used to compute earnings per share (in shares)	20,374,358	13,100,820	19,063,595	13,033,106

XML

Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities
Net income (loss)	$ 1,142,660	$ (1,638,502)
Adjustments to reconcile net income (loss) to net cash used in operating activities
Depreciation	161,200	176,251
Stock-based compensation expense	747,805	643,768
Stock issued for services		35,625
Amortization of deferred rent related to lease incentives	(63,499)	(63,499)
Amortization of debt discount		155,996
Loss from equity-method investment in SAVSU	320,554	489,473
Change in operating assets and liabilities
Accounts receivable, trade	(1,145,100)	20,610
Inventories	(275,135)	(11,286)
Prepaid expenses and other current assets	(103,108)	(135,905)
Accounts payable	168,005	(124,239)
Accrued compensation and other current liabilities	5,813	56,442
Accrued interest		185,417
Deferred rent	(5,880)	(62,419)
Net cash provided by (used in) operating activities	953,315	(272,268)
Cash flows from investing activities
Investment in equity investment SAVSU	(1,000,000)
Purchase of property and equipment	(61,479)	(78,185)
Net cash used in investing activities	(1,061,479)	(78,185)
Cash flows from financing activities
Proceeds from related party debt		1,000,000
Payments on equipment loan	(5,441)	(8,176)
Payments on capital lease obligations	(6,541)	(4,360)
Proceeds from exercise of common stock options and warrants	8,898,932	314,024
Payments of preferred stock dividends	(212,500)
Payments for redemption of preferred stock	(1,063,000)
Deferred costs related to potential stock issuance		(42,228)
Net cash provided by financing activities	7,611,450	1,259,260
Net increase in cash and cash equivalents	7,503,286	908,807
Cash and cash equivalents - beginning of period	6,663,318	1,405,826
Cash and cash equivalents - end of period	14,166,604	2,314,633
Non-cash investing and financing activities
Series A preferred stock dividends accrued not yet paid	93,258
Stock issued for services provided in prior period included in liabilities at year-end	35,625	35,624
Receivables converted to equity investment in SAVSU	150,103
Preferred stock issued on conversion of related party note payable and accrued interest		4,250,000
Preferred stock issuance costs not yet paid		8,038
Capital lease obligations incurred for purchases of equipment		52,327
Purchase of equipment with debt	17,604	39,243
Purchase of property and equipment not yet paid	$ 19,859

XML

Note 1 - Organization and Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Basis of Presentation and Significant Accounting Policies [Text Block]

1. Organization and Significant Accounting Policies

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 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

).

Significant Accounting Policies Update

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

We account for our ownership in our SAVSU Technologies, Inc. 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. On

January 22, 2018,

as a result of SAVSU signing a global distribution agreement with World Courier, we amended our agreement with SAVSU to fix our equity position at

35%,

prior to any dilution created by financing activities post

December 31, 2016,

and terminated the sales and marketing services agreement. 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. We increased our ownership to

30.5%

for the

three

months ended

June 30, 2018

due to additional cash contributions made by the Company. For the

three

and

six

months ended

June 30, 2018,

SAVSU’s net loss totaled

$0.6

million and

$1.1

million, respectively which our ownership resulted in a

$0.2

million and

$0.3

million loss, respectively which was recorded as “Loss from equity-method investment in SAVSU.” For the

three

and

six

months ended

June 30, 2017,

SAVSU’s net loss totaled

$0.6

million and

$1.1

million, respectively, of which our

45%

ownership resulted in a

$0.3

million and

$0.5

million loss, respectively.

Concentrations of credit risk and business risk

In the

three

months ended

June 30, 2018,

we derived approximately

38%

of our product revenue from

three

customers and in the

six

months ended

June 30, 2018,

we derived approximately

27%

of our revenue from

two

customers. In the

three

and

six

months ended

June 30, 2017,

we did

not

derive

10%

or more of our product revenue from any

one

customer.

No

other customer accounted for more than

10%

of revenue in the

three

months ended

March 31, 2018

or

2017.

At

June 30, 2018,

three

customers accounted for approximately

38%

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

11%

and

13%

of total revenue during the

three

and

six

months ended

June 30, 2018,

respectively, and

14%

and

18%

during the

three

and

six

months ended

June 30, 2017,

respectively. All revenue from foreign customers is denominated in United States dollars.

Recent Accounting Pronouncements

In

August 2016,

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

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.

The new guidance will be effective for fiscal years and interim periods within those years beginning after

December 15, 2018.

Early adoption will be permitted for all entities. The Company will adopt ASU

2016

-

02

on

January 1, 2019.

The FASB has issued several additional ASUs that provide additional clarification to certain issues existing after the original ASU was released. In

July 2018,

the FASB issued ASU

2018

-

11

Leases (Topic

842

) Targeted Improvements which provides entities with an additional and optional transition method to adopt the new lease standard and provide lessors with a practical expedient, by class of underlying asset, to

not

separate non-lease components from the associated lease component and, instead, to account for those components as a single component if certain criteria are met. Also, in

July 2018,

the FASB issued ASU

2018

-

10

Codification Improvements to Topic

842

to make amendments addressing

sixteen

issues related to various aspects of ASU

2016

-

02.

The effective date and transition requirements for the amendments in ASU

2018

-

11

and ASU

2018

-

10

will be the same as the effective date and transition requirements in ASU

2016

-

02.

The Company is evaluating the effect of ASU

2018

-

11

and ASU

2018

-

10

on its consolidated financial statements. While the Company is continuing to evaluate the effects of this ASU, the Company expects to record material right of use assets and lease liabilities on its consolidated balance sheet upon adoption. The new standard will also require expanded qualitative and quantitative disclosures regarding the Company’s leases.

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.

XML

Note 2 - Fair Value Measurement

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Fair Value Disclosures [Text Block]

2. Fair Value Measurement

In accordance with FASB ASC Topic

820,

“Fair Value Measurements and Disclosures,” (“ASC Topic

820”

), the Company measures its cash and cash equivalents and short-term investments at fair value on a recurring basis. ASC Topic

820

clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC Topic

820

establishes a

three

-tier value fair hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level

1

– Observable inputs that reflect quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level

2

– Observable inputs other than quoted prices included in Level

1

for similar assets or liabilities, quoted prices in markets that are

not

active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities.

Level

3

– Unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

As of

June 30, 2018

and

December 31, 2017,

the Company does

not

have liabilities that are measured at fair value.

The following tables set forth the Company’s financial assets measured at fair value on a recurring basis as of 

June 30, 2018

and 

December 

31,

2017,

based on the

three

-tier fair value hierarchy:

As of June 30, 2018	Level 1		Level 2		Total
Bank deposits	$	14,113,337	$	—	$	14,113,337
Money market funds		53,267		—		53,267
Total cash and cash equivalents	$	14,166,604	$	—	$	14,166,604

As of December 31, 2017	Level 1		Level 2		Total
Bank deposits	$	6,610,183	$	—	$	6,610,183
Money market funds		53,135		—		53,135
Total cash and cash equivalents	$	6,663,318	$	—	$	6,663,318

The fair values of bank deposits and money market funds classified as Level

1

were derived from quoted market prices as active markets for these instruments exist. The Company has

no

level

2

or level

3

financial assets. The Company did

not

have any transfers between Level

1

and Level

2

of the fair value hierarchy during the

six

months ended

June 30, 2018

and the

twelve

months ended

December 31, 2017. 

XML

Note 3 - Inventory

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Inventory Disclosure [Text Block]

3. Inventory

Inventory consists of the following at

June 30, 2018

and

December 

31,

2017:

	June 30, 2018		December 31, 2017
Raw materials	$	766,709	$	582,816
Work in progress		556,054		453,890
Finished goods		799,118		810,040
Total	$	2,121,881	$	1,846,746

XML

Note 4 - Deferred Rent

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Deferred Rent [Text Block]

4. Deferred Rent

Deferred rent consists of the following at

June 30, 2018

and

December 31, 2017:

	June 30, 2018			December 31, 2017
Landlord-funded leasehold improvements	$	1,124,790		$	1,124,790
Less accumulated amortization		(693,024	)		(629,525	)
Total		431,766			495,265
Straight line rent adjustment		121,278			127,158
Total deferred rent	$	553,044		$	622,423

During the

three

and

six

month periods ended

June 30, 2018,

the Company recorded

$31,750

and

$63,499,

respectively, in deferred rent amortization of these landlord funded leasehold improvements. During the

three

and

six

month periods ended

June 30, 2017,

the Company recorded

$31,750

and

$63,499,

respectively, in deferred rent amortization of these landlord funded leasehold improvements.

Straight line rent adjustment represents the difference between cash rent payments and the recognition of rent expense on a straight-line basis over the terms of the lease.

XML

Note 5 - Share-based Compensation

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

5. Share-based Compensation 

Service Vesting

-

Based Stock Options

The following is a summary of service vesting-based related stock option activity for the

six

month period ended

June 30, 2018,

and the status of service vesting-based options outstanding at

June 30, 2018:

	Six Month Period Ended
	June 30, 2018
				Wtd. Avg.
				Exercise
	Options			Price
Outstanding at beginning of year		2,390,012		$	1.85
Granted		—		$	—
Exercised		(142,914	)	$	1.19
Forfeited		(8,022	)	$	4.30
Expired		—		$	—
Outstanding service vesting-based at June 30, 2018		2,239,076		$	1.89
Service vesting-based options exercisable at June 30, 2018		1,652,714		$	1.80

We recognized stock compensation expense related to service vesting-based options of

$149,612

and

$146,538

during the

three

months ended

June 30, 2018

and

2017,

respectively and

$302,315

and

$316,861

during the

six

months ended

June 30, 2018

and

June 30, 2017,

respectively. As of

June 30, 2018,

there was

$21,325,800

of aggregate intrinsic value of outstanding service vesting-based stock options, including

$15,888,154

of aggregate intrinsic value of exercisable service vesting-based stock options. Intrinsic value is the total pretax intrinsic value for all “in-the-money” options (i.e., the difference between the Company’s closing stock price on the last trading day of the quarter and the exercise price, multiplied by the number of shares) that would have been received by the option holders had all option holders exercised their options on

June 30, 2018.

This amount will change based on the fair market value of the Company’s stock. Intrinsic value of service vesting-based awards exercised during the

three

months ended

June 30, 2018

and

2017

was

$723,532

and

$21,104,

respectively and during the

six

months ended

June 30, 2018

and

2017

was

$993,773

and

$91,817,

respectively. Weighted average grant date fair value for service based-vesting options granted during the

three

months ended

June 30, 2018

and

2017

was

none

and for the

six

months ended

June 30, 2018

and

2017

was

none

and

$1.13

per share, respectively. The weighted average remaining contractual life of service vesting-based options outstanding and exercisable at

June 30, 2018,

is

5.9

years and

5.5

years, respectively. Total unrecognized compensation cost of service vesting-based stock options at

June 30, 2018

of

$848,055

is expected to be recognized over a weighted average period of

1.8

years.

Performance-based Stock Options

The Company’s Board of Directors implemented a Management Performance Bonus Plan for

2017.

Based on achieving varying levels of specified revenue for the year ended

December 31, 2017,

up to

1,000,000

options to purchase shares of the Company’s common stock

may

be vested. The options have an exercise price of

$1.64,

and if revenue levels for

2017

were met, would vest

50%

on the release of the Company’s audited financial statements for

2017,

and

50%

one

year thereafter. If the minimum performance targets were

not

achieved,

no

options would vest. On

February 27, 2018,

the Company’s Board of Directors determined that, subject to the completion of the

2017

audit, the specified revenue target had been achieved. Accordingly,

999,997

options to purchase shares of the Company’s common stock vest as follows:

50%

of the options vested on

March 8, 2018

and the remaining

50%

will vest on

March 8, 2019.

The following is a summary of performance-based stock option activity for the

six

month period ended

June 30, 2018,

and the status of performance-based options outstanding at

June 30, 2018:

	Six Month Period Ended
	June 30, 2018
				Wtd. Avg.
				Exercise
	Options			Price
Outstanding at beginning of year		999,997		$	1.64
Granted		—		$	—
Exercised		(35,000	)	$	1.64
Outstanding performance-based at June 30, 2018		964,997		$	1.64
Performance-based options exercisable at June 30, 2018		465,001		$	1.64

We recognized stock compensation expense related to performance-based options of

$126,901

and

$126,903

during the

three

month periods ending

June 30, 2018

and

2017,

respectively and

$252,408

and

$252,411

during the

six

month periods ending

June 30, 2018

and

2017.

As of

June 30, 2018,

there was

$9,428,021

of aggregate intrinsic value of outstanding performance-based stock options, including

$4,543,060

of aggregate intrinsic value of exercisable performance-based stock options. Intrinsic value is the total pretax intrinsic value for all “in-the-money” options (i.e., the difference between the Company’s closing stock price on the last trading day of the quarter and the exercise price, multiplied by the number of shares) that would have been received by the option holders had all option holders exercised their options on

June 30, 2018.

This amount will change based on the fair market value of the Company’s stock. Intrinsic value of performance-based awards exercised during the

three

months and

six

months ended

June 30, 2018

was

$285,250

and

no

performance-based options were exercised in the

three

and

six

months ended

June 30, 2017.

The weighted average remaining contractual life of performance-based options outstanding and exercisable at

June 30, 2018,

is

3.5

years. Total unrecognized compensation cost of performance-based stock options at

June 30, 2018

of

$256,592

is expected to be recognized over a weighted average period of

0.5

years.

The fair value of stock options to employees and non-employee directors is estimated on the measurement date using the Black-Scholes model using the following weighted average assumptions (N/A for

2018

as

no

options were granted in that period).

The fair value of share-based payments made with stock options to employees and non-employee directors was estimated on the measurement date using the Black-Scholes model using the following weighted average assumptions.

	Three Month Period Ended				Six Month Period Ended
	June 30,				June 30,
	2018		2017		2018		2017
Risk free interest rate		N/A		N/A		N/A		2.07	%
Dividend yield		N/A		N/A		N/A		0.0	%
Expected term (in years)		N/A		N/A		N/A		5.18
Volatility		N/A		N/A		N/A		75	%

Restricted Stock

The following is a summary of restricted stock activity for the

six

month period ended

June 30, 2018,

and the status of unvested restricted stock outstanding at

June 30, 2018:

	Six Month Period Ended
	June 30, 2018
	Number of Restricted Shares			Grant-Date Fair Value
Outstanding at beginning of year		237,926		$	1.79
Granted		173,768		$	6.47
Vested		(76,538	)	$	1.79
Forfeited		(13,952	)	$	2.47
Outstanding at June 30, 2018		321,204		$	4.29

The aggregate fair value of the awards granted during the

three

and

six

months ended

June 30, 2018

was

$154,440

and

$1,125,048,

respectively, and during the

three

and

six

months ended

June 30, 2017

was

none

and

$364,936,

respectively, which represents the market value of our common stock on the date that the restricted stock awards were granted. The aggregate fair value of the restricted stock awards that vested for the

three

months ended

June 30, 2018

and

2017

was

$173,678

and

$20,123,

respectively and for the

six

months ended

June 30, 2018

and

2017

was

$480,736

and

$61,157,

respectively.

We recognized stock compensation expense of

$97,867

and

$40,432

related to restricted stock awards for the

three

months ended

June 30, 2018

and

2017,

respectively and

$193,082

and

$74,496

related to restricted stock awards for the

six

months ended

June 30, 2018

and

2017,

respectively. As of

June 30, 2018,

there was

$1,241,718

in unrecognized compensation costs related to restricted stock awards. We expect to recognize those costs over

3.3

years.

We recorded total stock compensation expense for the

three

and

six

month periods ended

June 30, 2018

and

2017,

as follows:

	Three Month Period Ended				Six Month Period Ended
	June 30,				June 30,
	2018		2017		2018		2017
Research and development costs	$	64,752	$	58,815	$	130,346	$	118,080
Sales and marketing costs		69,242		58,051		137,755		117,670
General and administrative costs		191,003		154,983		381,953		323,181
Cost of product sales		49,383		42,024		97,751		84,837
Total	$	374,380	$	313,873	$	747,805	$	643,768

XML

Note 6 - Warrants

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Warrants [Text Block]

6. Warrants

At

June 30, 2018

and

December 31, 2017,

we had

4,863,158

and

6,688,849

warrants outstanding, respectively and exercisable with a weighted average exercise price of

$4.41

and

$4.50,

respectively. During the

three

and

six

month period ended

June 30, 2018,

1,813,691

and

1,825,691

warrants were exercised with a weighted average exercise price of

$4.75,

yielding proceeds of

$8.6

million and

$8.7

million, respectively. Subsequent to quarter end through

July 30, 2018,

an additional

274,798

warrants were exercised with a weighted average exercise price of

$4.75,

yielding

$1.3

million in proceeds to the Company. The outstanding warrants have expiration dates between

March 2021

and

May 2021. 

XML

Note 7 - Income Taxes

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Income Tax Disclosure [Text Block]

7. Income Taxes

We have recorded a full valuation allowance against our deferred tax assets. As we trend towards positive net income, we will continue to assess our valuation allowance. Based on all available evidence, we determined that we have

not

yet attained a sustained level of profitability. Therefore, we have maintained the full valuation allowance as of quarter ended

June 30, 2018.

We

may

release all, or a portion, of the valuation allowance in the near-term, dependent on the verifiable positive evidence observed in future quarters.

XML

Note 8 - Earnings Per Share

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Earnings Per Share [Text Block]

8. Earnings Per Share

Basic earnings per share is calculated by dividing the net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated using the weighted average number of common shares outstanding plus dilutive common stock equivalents outstanding as determined by the treasury method during the period. In periods when we have a net loss, common stock equivalents are excluded from our calculation of earnings per share as their inclusion would have an antidilutive effect. For the

three

and

six

month periods ended

June 30, 2018,

we excluded a nominal amount of unvested stock awards from our calculation of diluted weighted average shares because they were antidilutive. For the

three

and

six

month periods ended

June 30, 2017,

we excluded

3

million common stock options,

7

million warrants, and

273,000

unvested stock awards from our calculation of diluted weighted average shares because they were antidilutive.

The following table shows the calculation of basic and diluted earnings per shares:

	Three Month Period Ended					Six Month Period Ended
	June 30,					June 30,
	201 8		201 7			201 8		201 7
Numerator:
Net income (loss) attributable to common stockholders	$	1,045,920	$	(768,212	)	$	943,152	$	(1,638,502	)
Denominator:
Weighted average basic shares outstanding		15,180,169		13,100,820			14,642,378		13,033,106
Effect of dilutive securities		5,194,189		—			4,421,217		—
Weighted average diluted shares		20,374,358		13,100,820			19,063,595		13,033,106
Basic earnings per share	$	0.07	$	(0.06	)	$	0.06	$	(0.13	)
Diluted earnings per share	$	0.05	$	(0.06	)	$	0.05	$	(0.13	)

XML

Note 9 - Commitments & Contingencies

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

9 . Commitments & Contingencies

Leases

We lease approximately

30,000

square feet in our Bothell, Washington headquarters. The term of our lease continues until

July 31, 2021

with

two

options to extend the term of the lease, each of which is for an additional period of

five

years, with the

first

extension term commencing, if at all, on

August 1, 2021,

and the

second

extension term commencing, if at all, immediately following the expiration of the

first

extension term. In accordance with the amended lease agreement, our monthly base rent is approximately

$58,000

at

June 30, 2018,

with scheduled annual increases each

August

and again in

October

for the most recent amendment. We are also required to pay an amount equal to the Company’s proportionate share of certain taxes and operating expenses. 

Employment Agreements

We have employment agreements with our Chief Executive Officer, Chief Financial Officer, Chief Technology Officer, Vice President of Operations, Vice President of Marketing, and Vice President of Sales.

None

of these employment agreements is for a definitive period, but rather each will continue indefinitely until terminated in accordance with its terms. The agreements provide for a base annual salary, payable in monthly (or shorter) installments. Under certain conditions and for certain of these officers, we

may

be required to pay additional amounts upon terminating the officer or upon the officer resigning for good reason. 

Litigation

From time to time, the Company is subject to various legal proceedings that arise in the ordinary course of business,

none

of which are currently material to the Company’s business.

XML

Note 10 - Preferred Stock

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

10 . Preferred Stock

As of

June 30, 2018,

we accrued a dividend of

$93,258

on the series A preferred stock which is included in accrued expenses and other current liabilities in the balance sheet at

June 30, 2018.

The dividend was paid subsequent to quarter end on

July 2, 2018.

On

May 17, 2018,

we redeemed

1,063

series A preferred shares for

$1,063,000.

There are

3,187

Series A shares outstanding as of

June 30, 2018.

XML

Note 11 - Revenue

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

1 1 . Revenue

We currently operate as

one

operating segment focusing on biopreservation media.

The following table disaggregates revenue by market segment and distributors:

	Three Month Period Ended				Six Month Period Ended
	June 30,				June 30,
	2018		2017		2018		2017
Net product sales:
Regenerative medicine	$	2,985,086	$	1,083,637	$	5,088,638	$	2,134,807
Distributors		1,695,153		694,366		2,734,396		1,454,054
Drug discovery		263,023		488,894		639,998		766,808
BioBanking		234,592		290,868		529,704		568,297
Total	$	5,177,854	$	2,557,765	$	8,992,736	$	4,923,966

XML

Note 12 - Subsequent Event

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Subsequent Events [Text Block]

12. Subsequent Event

On

August 9, 2018,

Casdin Capital LLC, (“Casdin”) a New York-based, life science-focused investment firm and current stockholder, agreed to invest

$20

million in BioLife to support the Company’s growth strategy of acquiring synergistic cell and gene therapy manufacturing tools and services or technologies. Casdin’s private purchase of an additional

1,428,571

newly issued shares of common stock at a price of

$14.00

per share was pursuant to a share purchase agreement, pursuant to which Casdin also agreed to restrict any re-sale of the new se shares for a

12

month period. 

XML

Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

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 SAVSU Technologies, Inc. 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. On

January 22, 2018,

as a result of SAVSU signing a global distribution agreement with World Courier, we amended our agreement with SAVSU to fix our equity position at

35%,

prior to any dilution created by financing activities post

December 31, 2016,

and terminated the sales and marketing services agreement. 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. We increased our ownership to

30.5%

for the

three

months ended

June 30, 2018

due to additional cash contributions made by the Company. For the

three

and

six

months ended

June 30, 2018,

SAVSU’s net loss totaled

$0.6

million and

$1.1

million, respectively which our ownership resulted in a

$0.2

million and

$0.3

million loss, respectively which was recorded as “Loss from equity-method investment in SAVSU.” For the

three

and

six

months ended

June 30, 2017,

SAVSU’s net loss totaled

$0.6

million and

$1.1

million, respectively, of which our

45%

ownership resulted in a

$0.3

million and

$0.5

million loss, respectively.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentrations of credit risk and business risk

In the

three

months ended

June 30, 2018,

we derived approximately

38%

of our product revenue from

three

customers and in the

six

months ended

June 30, 2018,

we derived approximately

27%

of our revenue from

two

customers. In the

three

and

six

months ended

June 30, 2017,

we did

not

derive

10%

or more of our product revenue from any

one

customer.

No

other customer accounted for more than

10%

of revenue in the

three

months ended

March 31, 2018

or

2017.

At

June 30, 2018,

three

customers accounted for approximately

38%

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

11%

and

13%

of total revenue during the

three

and

six

months ended

June 30, 2018,

respectively, and

14%

and

18%

during the

three

and

six

months ended

June 30, 2017,

respectively. All revenue from foreign customers is 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 (“ASU”)

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.

The new guidance will be effective for fiscal years and interim periods within those years beginning after

December 15, 2018.

Early adoption will be permitted for all entities. The Company will adopt ASU

2016

-

02

on

January 1, 2019.

The FASB has issued several additional ASUs that provide additional clarification to certain issues existing after the original ASU was released. In

July 2018,

the FASB issued ASU

2018

-

11

Leases (Topic

842

) Targeted Improvements which provides entities with an additional and optional transition method to adopt the new lease standard and provide lessors with a practical expedient, by class of underlying asset, to

not

separate non-lease components from the associated lease component and, instead, to account for those components as a single component if certain criteria are met. Also, in

July 2018,

the FASB issued ASU

2018

-

10

Codification Improvements to Topic

842

to make amendments addressing

sixteen

issues related to various aspects of ASU

2016

-

02.

The effective date and transition requirements for the amendments in ASU

2018

-

11

and ASU

2018

-

10

will be the same as the effective date and transition requirements in ASU

2016

-

02.

The Company is evaluating the effect of ASU

2018

-

11

and ASU

2018

-

10

on its consolidated financial statements. While the Company is continuing to evaluate the effects of this ASU, the Company expects to record material right of use assets and lease liabilities on its consolidated balance sheet upon adoption. The new standard will also require expanded qualitative and quantitative disclosures regarding the Company’s leases.

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.

XML

Note 2 - Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

As of June 30, 2018	Level 1		Level 2		Total
Bank deposits	$	14,113,337	$	—	$	14,113,337
Money market funds		53,267		—		53,267
Total cash and cash equivalents	$	14,166,604	$	—	$	14,166,604

As of December 31, 2017	Level 1		Level 2		Total
Bank deposits	$	6,610,183	$	—	$	6,610,183
Money market funds		53,135		—		53,135
Total cash and cash equivalents	$	6,663,318	$	—	$	6,663,318

XML

Note 3 - Inventory (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	June 30, 2018		December 31, 2017
Raw materials	$	766,709	$	582,816
Work in progress		556,054		453,890
Finished goods		799,118		810,040
Total	$	2,121,881	$	1,846,746

XML

Note 4 - Deferred Rent (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Schedule of Deferred Rent [Table Text Block]

	June 30, 2018			December 31, 2017
Landlord-funded leasehold improvements	$	1,124,790		$	1,124,790
Less accumulated amortization		(693,024	)		(629,525	)
Total		431,766			495,265
Straight line rent adjustment		121,278			127,158
Total deferred rent	$	553,044		$	622,423

XML

Note 5 - Share-based Compensation (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Share-based Compensation, Stock Options, Activity [Table Text Block]

	Six Month Period Ended
	June 30, 2018
				Wtd. Avg.
				Exercise
	Options			Price
Outstanding at beginning of year		2,390,012		$	1.85
Granted		—		$	—
Exercised		(142,914	)	$	1.19
Forfeited		(8,022	)	$	4.30
Expired		—		$	—
Outstanding service vesting-based at June 30, 2018		2,239,076		$	1.89
Service vesting-based options exercisable at June 30, 2018		1,652,714		$	1.80

	Six Month Period Ended
	June 30, 2018
				Wtd. Avg.
				Exercise
	Options			Price
Outstanding at beginning of year		999,997		$	1.64
Granted		—		$	—
Exercised		(35,000	)	$	1.64
Outstanding performance-based at June 30, 2018		964,997		$	1.64
Performance-based options exercisable at June 30, 2018		465,001		$	1.64

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	Three Month Period Ended				Six Month Period Ended
	June 30,				June 30,
	2018		2017		2018		2017
Risk free interest rate		N/A		N/A		N/A		2.07	%
Dividend yield		N/A		N/A		N/A		0.0	%
Expected term (in years)		N/A		N/A		N/A		5.18
Volatility		N/A		N/A		N/A		75	%

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]

	Six Month Period Ended
	June 30, 2018
	Number of Restricted Shares			Grant-Date Fair Value
Outstanding at beginning of year		237,926		$	1.79
Granted		173,768		$	6.47
Vested		(76,538	)	$	1.79
Forfeited		(13,952	)	$	2.47
Outstanding at June 30, 2018		321,204		$	4.29

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

	Three Month Period Ended				Six Month Period Ended
	June 30,				June 30,
	2018		2017		2018		2017
Research and development costs	$	64,752	$	58,815	$	130,346	$	118,080
Sales and marketing costs		69,242		58,051		137,755		117,670
General and administrative costs		191,003		154,983		381,953		323,181
Cost of product sales		49,383		42,024		97,751		84,837
Total	$	374,380	$	313,873	$	747,805	$	643,768

XML

Note 8 - Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Month Period Ended					Six Month Period Ended
	June 30,					June 30,
	201 8		201 7			201 8		201 7
Numerator:
Net income (loss) attributable to common stockholders	$	1,045,920	$	(768,212	)	$	943,152	$	(1,638,502	)
Denominator:
Weighted average basic shares outstanding		15,180,169		13,100,820			14,642,378		13,033,106
Effect of dilutive securities		5,194,189		—			4,421,217		—
Weighted average diluted shares		20,374,358		13,100,820			19,063,595		13,033,106
Basic earnings per share	$	0.07	$	(0.06	)	$	0.06	$	(0.13	)
Diluted earnings per share	$	0.05	$	(0.06	)	$	0.05	$	(0.13	)

XML

Note 11 - Revenue (Tables)

6 Months Ended

Jun. 30, 2018

Notes Tables

Disaggregation of Revenue [Table Text Block]

	Three Month Period Ended				Six Month Period Ended
	June 30,				June 30,
	2018		2017		2018		2017
Net product sales:
Regenerative medicine	$	2,985,086	$	1,083,637	$	5,088,638	$	2,134,807
Distributors		1,695,153		694,366		2,734,396		1,454,054
Drug discovery		263,023		488,894		639,998		766,808
BioBanking		234,592		290,868		529,704		568,297
Total	$	5,177,854	$	2,557,765	$	8,992,736	$	4,923,966

XML

Note 1 - Organization and Significant Accounting Policies (Details Textual)	3 Months Ended				6 Months Ended		12 Months Ended
	Jun. 30, 2018 USD ($)	Mar. 31, 2018	Jun. 30, 2017 USD ($)	Mar. 31, 2017	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Dec. 31, 2017	Jan. 22, 2018
Net Income (Loss) Attributable to Parent, Total	$ 1,139,178		$ (768,212)		$ 1,142,660	$ (1,638,502)
Income (Loss) from Equity Method Investments, Total	$ (176,798)		$ (260,105)		$ (320,554)	$ (489,473)
Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
Concentration Risk, Percentage	38.00%	0.00%	0.00%	0.00%	27.00%	0.00%
Number of Major Customers	3				2
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Foreign Countries [Member]
Concentration Risk, Percentage	11.00%		14.00%		13.00%	18.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member]
Concentration Risk, Percentage					38.00%		41.00%
Number of Major Customers					3		2
SAVSU [Member]
Net Income (Loss) Attributable to Parent, Total	$ (600,000)		$ (600,000)		$ (1,100,000)	$ (1,100,000)
SAVSU [Member]
Equity Method Investment, Ownership Percentage	30.50%	26.70%	45.00%		30.50%	45.00%		35.00%
Income (Loss) from Equity Method Investments, Total	$ (200,000)		$ (300,000)		$ (300,000)	$ (500,000)

XML

Note 2 - Fair Value Measurement (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financial and Nonfinancial Liabilities, Fair Value Disclosure	$ 0	$ 0
Fair Value, Inputs, Level 2 [Member]
Assets, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3 [Member]
Assets, Fair Value Disclosure	$ 0	$ 0

XML

Note 2 - Fair Value Measurement - Financial Assets on Recurring Basis (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Inputs, Level 2 [Member]
Total cash and cash equivalents	$ 0	$ 0
Fair Value, Measurements, Recurring [Member]
Total cash and cash equivalents	14,166,604	6,663,318
Fair Value, Measurements, Recurring [Member] | Bank Time Deposits [Member]
Cash and cash equivalents	14,113,337	6,610,183
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member]
Cash and cash equivalents	53,267	53,135
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Total cash and cash equivalents	14,166,604	6,663,318
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Bank Time Deposits [Member]
Cash and cash equivalents	14,113,337	6,610,183
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Cash and cash equivalents	53,267	53,135
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Total cash and cash equivalents
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Bank Time Deposits [Member]
Cash and cash equivalents
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member]
Cash and cash equivalents

XML

Note 3 - Inventory - Summary of Inventory (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Raw materials	$ 766,709	$ 582,816
Work in progress	556,054	453,890
Finished goods	799,118	810,040
Total	$ 2,121,881	$ 1,846,746

XML

Note 4 - Deferred Rent (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Amortization of Deferred Rent	$ 31,750	$ 31,750	$ 63,499	$ 63,499

XML

Note 4 - Deferred Rent - Summary of Deferred Rent (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Landlord-funded leasehold improvements	$ 1,124,790	$ 1,124,790
Less accumulated amortization	(693,024)	(629,525)
Total	431,766	495,265
Straight line rent adjustment	121,278	127,158
Total deferred rent	$ 553,044	$ 622,423

XML

Note 5 - Share-based Compensation (Details Textual) - USD ($)		3 Months Ended		6 Months Ended		12 Months Ended
	Feb. 27, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Allocated Share-based Compensation Expense, Total		$ 374,380	$ 313,873	$ 747,805	$ 643,768
Employee Stock Option [Member]
Allocated Share-based Compensation Expense, Total		149,612	146,538	302,315	316,861
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value		21,325,800		21,325,800
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value		15,888,154		15,888,154
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value		$ 723,532	$ 21,104	$ 993,773	$ 91,817
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value		$ 0	$ 0	$ 0	$ 1.13
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term				5 years 328 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term				5 years 182 days
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total		$ 848,055		$ 848,055
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition				1 year 292 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period				142,914
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period				35,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross
Performance Shares [Member] | Management Performance Bonus Plan 2017 [Member]
Allocated Share-based Compensation Expense, Total		126,901	$ 126,903	$ 252,408	$ 252,411
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value		9,428,021		9,428,021
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value		4,543,060		4,543,060
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value		285,250		285,250
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total		256,592		$ 256,592
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition				182 days
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized						1,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price						$ 1.64
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number	999,997
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			0		0
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period				3 years 182 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross				0
Performance Shares [Member] | Management Performance Bonus Plan 2017 [Member] | Vesting on Release of Audited Financial Statements for 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage						50.00%
Performance Shares [Member] | Management Performance Bonus Plan 2017 [Member] | Vesting One Year After Release of Audited Financial Statements for 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage						50.00%
Performance Shares [Member] | Management Performance Bonus Plan 2017 [Member] | Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	50.00%
Performance Shares [Member] | Management Performance Bonus Plan 2017 [Member] | Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	50.00%
Restricted Stock [Member]
Allocated Share-based Compensation Expense, Total		97,867	$ 40,432	$ 193,082	$ 74,496
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total		1,241,718		$ 1,241,718
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition				3 years 109 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Fair Value		154,440	0	$ 1,125,048	364,936
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value		$ 173,678	$ 20,123	$ 480,736	$ 61,157

XML

Note 5 - Share-based Compensation - Stock Option Activity (Details)	6 Months Ended
	Jun. 30, 2018 $ / shares shares
Employee Stock Option [Member]
Outstanding at beginning of year (in shares) | shares	2,390,012
Outstanding at beginning of year, weighted average exercise price (in dollars per share) | $ / shares	$ 1.85
Granted (in shares) | shares
Granted, weighted average exercise price (in dollars per share) | $ / shares
Exercised (in shares) | shares	(142,914)
Exercised, weighted average exercise price (in dollars per share) | $ / shares	$ 1.19
Forfeited (in shares) | shares	(8,022)
Forfeited, weighted average exercise price (in dollars per share) | $ / shares	$ 4.30
Expired (in shares) | shares
Expired, weighted average exercise price (in dollars per share) | $ / shares
Outstanding service vesting-based at June 30, 2018 (in shares) | shares	2,239,076
Outstanding service vesting-based at June 30, 2018 (in dollars per share) | $ / shares	$ 1.89
Options exercisable at June 30, 2018 (in shares) | shares	1,652,714
Options exercisable at June 30, 2018 (in dollars per share) | $ / shares	$ 1.80
Performance Shares [Member]
Outstanding at beginning of year (in shares) | shares	999,997
Outstanding at beginning of year, weighted average exercise price (in dollars per share) | $ / shares	$ 1.64
Granted (in shares) | shares
Granted, weighted average exercise price (in dollars per share) | $ / shares
Exercised (in shares) | shares	(35,000)
Exercised, weighted average exercise price (in dollars per share) | $ / shares	$ 1.64
Outstanding service vesting-based at June 30, 2018 (in shares) | shares	964,997
Outstanding service vesting-based at June 30, 2018 (in dollars per share) | $ / shares	$ 1.64
Options exercisable at June 30, 2018 (in shares) | shares	465,001
Options exercisable at June 30, 2018 (in dollars per share) | $ / shares	$ 1.64

XML

Note 5 - Share-based Compensation - Fair Value Assumptions (Details) - Employee Stock Option [Member]	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Risk free interest rate				2.07%
Dividend yield				0.00%
Expected term (Year)				5 years 65 days
Volatility				75.00%

XML

Note 5 - Share-based Compensation - Restricted Stock Activity (Details)	6 Months Ended
	Jun. 30, 2018 $ / shares shares
Outstanding at beginning of year (in shares) | shares	237,926
Outstanding at beginning of year (in dollars per share) | $ / shares	$ 1.79
Unvested granted (in shares) | shares	173,768
Granted, grant date fair value (in dollars per share) | $ / shares	$ 6.47
Vested (in shares) | shares	(76,538)
Vested, grant date fair value (in dollars per share) | $ / shares	$ 1.79
Unvested forfeited (in shares) | shares	(13,952)
Forfeited, grant date fair value (in dollars per share) | $ / shares	$ 2.47
Outstanding at June 30, 2018 (in shares) | shares	321,204
Outstanding at June 30, 2018 (in dollars per share) | $ / shares	$ 4.29

XML

Note 5 - Share-based Compensation - Stock Compensation Expense (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Stock compensation expense	$ 374,380	$ 313,873	$ 747,805	$ 643,768
Research and Development Expense [Member]
Stock compensation expense	64,752	58,815	130,346	118,080
Selling and Marketing Expense [Member]
Stock compensation expense	69,242	58,051	137,755	117,670
General and Administrative Expense [Member]
Stock compensation expense	191,003	154,983	381,953	323,181
Cost of Sales [Member]
Stock compensation expense	$ 49,383	$ 42,024	$ 97,751	$ 84,837

XML

Note 6 - Warrants (Details Textual) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended	6 Months Ended
	Aug. 09, 2018	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Class of Warrant or Right, Outstanding		4,863,158	4,863,158	6,688,849
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 4.41	$ 4.41	$ 4.50
Class of Warrant or Right, Exercised During Period		1,813,691	1,825,691
Class of Warrant or Right, Exercised During Period, Exercise Price		$ 4.75	$ 4.75
Proceeds from Warrant Exercises		$ 8.6	$ 8.7
Subsequent Event [Member]
Class of Warrant or Right, Exercised During Period	274,798
Class of Warrant or Right, Exercised During Period, Exercise Price	$ 4.75
Proceeds from Warrant Exercises	$ 1.3

XML

Note 8 - Earnings Per Share (Details Textual) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	3,000,000	3,000,000
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	7,000,000	7,000,000
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	273,000	273,000

XML

Note 8 - Earnings Per Share - Calculation of Diluted Shares (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net income (loss) attributable to common stockholders	$ 1,045,920	$ (768,212)	$ 943,152	$ (1,638,502)
Basic shares used to compute earnings per share (in shares)	15,180,169	13,100,820	14,642,378	13,033,106
Effect of dilutive securities (in shares)	5,194,189		4,421,217
Weighted average diluted shares (in shares)	20,374,358	13,100,820	19,063,595	13,033,106
Basic net income (loss) per common share (in dollars per share)	$ 0.07	$ (0.06)	$ 0.06	$ (0.13)
Diluted net income (loss) per common share (in dollars per share)	$ 0.05	$ (0.06)	$ 0.05	$ (0.13)

XML

Note 9 - Commitments & Contingencies (Details Textual) - Bothell, Washington Headquarters [Member]	6 Months Ended
	Jun. 30, 2018 USD ($)
Lessee, Operating Lease, Renewal Term	5 years
Monthly Base Rent Expense	$ 58,000

XML

Note 10 - Preferred Stock (Details Textual) - USD ($)	May 17, 2018	Jun. 30, 2018	Dec. 31, 2017
Preferred Stock, Shares Outstanding, Ending Balance		3,187	4,250
Series A Preferred Stock [Member]
Stock Redeemed or Called During Period, Shares	1,063
Stock Redeemed or Called During Period, Value	$ 1,063,000
Preferred Stock, Shares Outstanding, Ending Balance		3,187
Accrued Liabilities Current [Member] | Series A Preferred Stock [Member]
Dividends Payable, Current		$ 93,258

XML

Note 11 - Revenue (Details Textual)	6 Months Ended
	Jun. 30, 2018
Number of Operating Segments	1

XML

Note 11 - Revenue - Disaggregated Revenue (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net product sales	$ 5,177,854	$ 2,557,765	$ 8,992,736	$ 4,923,966
Regenerative Medicine [Member]
Net product sales	2,985,086	1,083,637	5,088,638	2,134,807
Distribution Service [Member]
Net product sales	1,695,153	694,366	2,734,396	1,454,054
Drug Discovery [Member]
Net product sales	263,023	488,894	639,998	766,808
BioBanking [Member]
Net product sales	$ 234,592	$ 290,868	$ 529,704	$ 568,297

XML

Note 12 - Subsequent Event (Details Textual) - Private Placement [Member] - Casdin Capital LLC [Member] - Subsequent Event [Member] $ / shares in Units, $ in Millions	Aug. 09, 2018 USD ($) $ / shares shares
Proceeds from Issuance of Common Stock | $	$ 20
Stock Issued During Period, Shares, New Issues | shares	1,428,571
Shares Issued, Price Per Share | $ / shares	$ 14