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, 2020

☐  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)

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

Title of each class	Trading symbol	Name of exchange on which registered
BioLife Solutions, Inc. Common Shares	BLFS	NASDAQ Capital Market

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 every Interactive Data File required to be submitted 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 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 5, 2020, 32,001,581 shares of the registrant’s common stock were outstanding.

1

BIOLIFE SOLUTIONS, INC.

FORM 10-Q

FOR THE QUARTER ENDED JUNE 30, 2020

TABLE OF CONTENTS

PART I.  FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements (unaudited)
	Condensed Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019	3
	Condensed Consolidated Statements of Operations for the three and six month periods ended June 30, 2020 and 2019	4
	Condensed Consolidated Statements of Shareholders’ Equity for the three and six month periods ended June 30, 2020 and 2019	5
	Condensed Consolidated Statements of Cash Flows for the six month periods ended June 30, 2020 and 2019	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	35
Item 4.	Controls and Procedures	35
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36
Item 3.	Defaults Upon Senior Securities	36
Item 4.	Mine Safety Disclosures	36
Item5.	Other Information	36
Item 6.	Exhibits	37
	Signatures	38

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

BioLife Solutions, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

	June 30,			December 31,
(In thousands, except per share and share data)	2020			2019
Assets
Current assets
Cash and cash equivalents	$	29,879		$	6,448
Accounts receivable, trade, net		4,351			5,345
Inventories		10,890			10,972
Prepaid expenses and other current assets		1,134			1,348
Total current assets		46,254			24,113
Assets held for rent, net		4,958			3,922
Property and equipment, net		5,347			5,572
Operating lease right-of-use assets, net		740			1,040
Long-term deposits and other assets		36			50
Investments		2,500			2,500
Accrued interest receivable		41		––
Intangible assets, net		20,588			21,982
Goodwill		33,506			33,637
Total assets	$	113,970		$	92,816
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable	$	3,077		$	3,119
Accrued expenses and other current liabilities		2,606			3,369
Lease liabilities, operating, current portion		844			804
Contingent consideration, current portion	––				377
Warrant liability, current portion		963		––
Total current liabilities		7,490			7,669
Warrant liability, long-term	––				39,602
Contingent consideration, long-term		388			1,537
Lease liabilities, operating, long-term		116			550
Other long-term liabilities		133			4
Total liabilities		8,127			49,362
Commitments and Contingencies (Note 11)
Shareholders’ equity
Preferred stock, $0.001 par value; 1,000,000 shares authorized, Series A, 4,250 shares designated, and 0 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively	––				—
Common stock, $0.001 par value; 150,000,000 shares authorized, 25,982,367 and 20,825,452 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively		26			21
Additional paid-in capital		199,941			143,485
Accumulated deficit		(94,124	)		(100,052	)
Total shareholders’ equity		105,843			43,454
Total liabilities and shareholders’ equity	$	113,970		$	92,816

The accompanying notes are an integral part of these condensed consolidated financial statements.  

3

BioLife Solutions, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands, except per share and share data)	2020			2019			2020			2019
Product revenue	$	9,489		$	6,701		$	21,216		$	12,471
Rental revenue		431		––				866		––
Total product and rental revenue		9,920			6,701			22,082			12,471
Operating expenses
Cost of product and rental revenue (exclusive of intangible assets amortization)		4,499			1,968			9,067			3,616
Research and development		1,477			691			3,140			1,050
Sales and marketing		1,366			945			2,942			1,782
General and administrative		3,278			2,207			6,413			4,359
Intangible assets amortization		706			104			1,394			104
Acquisition costs		13			39			238			247
Change in fair value of contingent consideration		(1,463	)	––				(1,526	)	––
Total operating expenses		9,876			5,954			21,668			11,158
Operating income		44			747			414			1,313
Other income (expense)
Change in fair value of warrant liability		(16,442	)		3,586			5,472			(16,077	)
Interest income		18			137			47			307
Interest expense	––				(1	)		(1	)		(4	)
Other expense	––			––				(4	)	––
Loss from equity method investment in SAVSU	––				(217	)	––				(448	)
Total other income (expenses)		(16,424	)		3,505			5,514			(16,222	)
Net income (loss) before provision for income taxes		(16,380	)		4,252			5,928			(14,909	)
Income tax (benefit)	––			––			––			––
Net income (loss)		(16,380	)		4,252			5,928			(14,909	)
Net income attributable to common stockholders:
Basic	$	(16,380	)	$	3,425		$	5,093		$	(14,909	)
Diluted	$	(16,380	)	$	545		$	350		$	(14,909	)
Earnings per share attributable to common stockholders
Basic	$	(0.70	)	$	0.18		$	0.23		$	(0.80	)
Diluted	$	(0.70	)	$	0.02		$	0.01		$	(0.80	)
Weighted average shares used to compute earnings per share attributable to common stockholders:
Basic		23,292,635			18,819,459			22,151,726			18,734,401
Diluted		23,292,635			24,539,299			27,013,580			18,734,401

The accompanying notes are an integral part of these condensed consolidated financial statements.   

4

BioLife Solutions, Inc.

Condensed Consolidated Statements of Shareholders’ Equity

(unaudited)

	Six Months Ended June 30, 2020
(In thousands, except share data)	Preferred Stock Shares – Series A		Preferred Stock Amount – Series A		Common Stock Shares		Common Stock Amount		Additional Paid-in Capital		Accumulated Deficit			Total Shareholders’ Equity
Balance, December 31, 2019		—	$	—		20,825,452	$	21	$	143,485	$	(100,052	)	$	43,454
Stock issued as 2019 bonus payout		—		—		—		—		314		—			314
Sale of common stock, net of fees		—		—		1,904,762		2		19,912		—			19,914
Stock-based compensation		—		—		—		—		2,258		—			2,258
Stock option exercises		—		—		410,793		—		783		—			783
Cashless exercises of 3,871,405 warrants		—		—		2,747,970		3		33,108		—			33,111
Warrant exercises		—		—		5,000		—		81		—			81
Stock issued – on vested RSUs		—		—		88,390		—		—		—			—
Net income		—		—		—		—		—		5,928			5,928
Balance, June 30, 2020		—	$	—		25,982,367	$	26	$	199,941	$	(94,124	)	$	105,843

	Three Months Ended June 30, 2020
(In thousands, except share data)	Preferred Stock Shares – Series A		Preferred Stock Amount – Series A		Common Stock Shares		Common Stock Amount		Additional Paid-in Capital		Accumulated Deficit			Total Shareholders’ Equity
Balance, March 31, 2020		—	$	—		21,148,771	$	21	$	145,432	$	(77,744	)	$	67,709
Sale of common stock, net of fees		—		—		1,904,762		2		19,912		—			19,914
Stock-based compensation		—		—		—		—		1,145		—			1,145
Stock option exercises		—		—		142,500		—		293		—			293
Cashless exercises of 3,871,405 warrants		—		—		2,747,970		3		33,108		—			33,111
Warrant exercises		—		—		3,000		—		51		—			51
Stock issued – on vested RSUs		—		—		35,364		—		—		—			—
Net loss		—		—		—		—		—		(16,380	)		(16,380	)
Balance, June 30, 2020		—	$	—		25,982,367	$	26	$	199,941	$	(94,124	)	$	105,843

	Six Months Ended June 30, 2019
(In thousands, except share data)	Preferred Stock Shares – Series A		Preferred Stock Amount – Series A		Common Stock Shares		Common Stock Amount		Additional Paid-in Capital		Accumulated Deficit			Total Shareholders’ Equity
Balance, December 31, 2018		—	$	—		18,547,406	$	19	$	113,008	$	(98,395	)	$	14,632
Stock-based compensation		—		—		—		—		1,349		—			1,349
Stock option exercises		—		—		236,061		—		462		—			462
Warrant exercises		—		—		29,000		—		538		—			538
Stock issued – on vested RSUs		—		—		86,142		—		—		—			—
Net loss		—		—		—		—		—		(14,909	)		(14,909	)
Balance, June 30, 2019		—	$	—		18,898,609	$	19	$	115,357	$	(113,304	)	$	2,072

	Three Months Ended June 30, 2019
(In thousands, except share data)	Preferred Stock Shares – Series A		Preferred Stock Amount – Series A		Common Stock Shares		Common Stock Amount		Additional Paid-in Capital		Accumulated Deficit			Total Shareholders’ Equity
Balance, March 31, 2019		—	$	—		18,717,095	$	19	$	113,797	$	(117,556	)	$	(3,740	)
Stock-based compensation		—		—		—		—		818		—			818
Stock option exercises		—		—		136,364		—		301		—			301
Warrant exercises		—		—		24,000		—		441		—			441
Stock issued – on vested RSUs		—		—		21,150		—		—		—			—
Net income		—		—		—		—		—		4,252			4,252
Balance, June 30, 2019		—	$	—		18,898,609	$	19	$	115,357	$	(113,304	)	$	2,072

 The accompanying notes are an integral part of these condensed consolidated financial statements.   

5

BioLife Solutions, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

	Six Months Ended June 30,
(In thousands)	2020			2019
Cash flows from operating activities
Net income (loss)	$	5,928		$	(14,909	)
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation		973			209
Amortization of intangible assets		1,394			104
Non cash lease expense		300			241
Stock-based compensation		2,258			1,349
Loss from equity method investment in SAVSU		—			448
Change in fair value of contingent consideration		(1,526	)		—
Change in fair value of warrant liability		(5,472	)		16,077
Other		—			2
Change in operating assets and liabilities
Accounts receivable, trade, net		924			(632	)
Inventories		82			(1,341	)
Prepaid expenses and other current assets		256			(32	)
Accounts payable		63			(36	)
Accrued compensation and other current liabilities		177			(348	)
Other		(467	)		(53	)
Net cash provided by operating activities		4,890			1,079
Cash flows from investing activities
Payments related to the Astero Bio Acquisition, net of cash acquired		—			(12,439	)
Purchase of property and equipment		(251	)		(266	)
Purchase of assets held for rent, net		(1,432	)		—
Net cash used in investing activities		(1,683	)		(12,705	)
Cash flows from financing activities
Proceeds from PPP Loan		2,175			—
Payoff of PPP Loan		(2,175	)		—
Payments of contingent consideration		(483	)		—
Proceeds from sale of common stock, net of fees		19,914			—
Proceeds from exercise of common stock options		783			462
Proceeds from exercise of warrants		24			138
Other		(14	)		(14	)
Net cash provided by financing activities		20,224			586
Net increase (decrease) in cash and cash equivalents		23,431			(11,040	)
Cash and cash equivalents - beginning of period		6,448			30,657
Cash and cash equivalents - end of period	$	29,879		$	19,617
Non-cash investing and financing activities
Cashless exercise of warrants reclassed from warrant liability to common stock	$	33,111		$	—
Reclassification of warrant liability to equity upon exercise	$	57		$	400
Purchase of property & equipment not yet paid	$	29		$	4
Purchase of equipment with debt	$	133		$	—
Deferred financing costs not yet paid	$	55		$	—
Stock issued as bonus consideration	$	314		$	—

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

BIOLIFE SOLUTIONS, INC.

Notes to Condensed Consolidated Financial Statements

(unaudited)

1. Organization and Significant Accounting Policies

Business

BioLife Solutions, Inc. (“BioLife,” “us,” “we,” “our,” or the “Company”) is a leading developer, manufacturer and supplier of a portfolio of bioproduction tools including proprietary biopreservation media, automated thawing devices, cloud-connected shipping containers, and freezer technology for cell and gene therapies. Our CryoStor® freeze media and HypoThermosol® hypothermic storage are optimized to preserve cells in the regenerative medicine market. These novel biopreservation media products are serum-free and protein-free, fully defined, and are formulated to reduce preservation-induced cell damage and death; offering commercial companies and clinical researchers significant improvement in shelf life and post-preservation viability and function. Our ThawSTAR® product line is comprised of a family of automated thawing devices for frozen cell and gene therapies packaged in cryovials and cryobags. These products improve the quality of administration of high-value, temperature-sensitive biologic therapies to patients by standardizing the thawing process and reducing the risks of contamination and overheating which are inherent with the use of traditional water baths. Our evo shipping containers are innovative high-performance cloud-connected passive storage and transport containers for temperature-sensitive biologics and pharmaceuticals. Our cryogenic freezer technology provides for controlled rate freezing and storage of biologic materials.

Basis of Presentation

The condensed consolidated financial statements included herein have been prepared by BioLife Solutions, Inc. in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for Quarterly Reports on Form 10-Q and Article 10 of Regulation S-X and do not include all of the information and footnote disclosures required by GAAP. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Astero Bio Corporation (“Astero,” and the Astero product line, “ThawStar” acquired on April 1, 2019), SAVSU Technologies, Inc. (“SAVSU” and the product line “evo” acquired on August 8, 2019), and Arctic Solutions, Inc. dba Custom Biogenic Systems (“CBS” and the freezer and accessory product lines acquired on November 12, 2019). All significant intercompany accounts and transactions have been eliminated in consolidation.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal, recurring adjustments necessary for a fair presentation of the financial position, results of operations, and cash flows. The results of operations for the interim periods presented are not necessarily indicative of results to be expected for the entire year.

Financial Statement Reclassification

Certain classifications on the Condensed Consolidated Statements of Cash Flows related to non cash lease expense and accrued expenses and other current liabilities for the three and six months ended June 30, 2019 were reclassified to conform to current period presentation. These reclassifications have no impact on previously reported total revenue, net income (loss), net assets, or total operating cash flows.

Significant Accounting Policies

There have been no significant changes to the accounting policies during the six months ended June 30, 2020, as compared to the significant accounting policies described in our Annual Report on Form 10-K.

7

 

Liquidity and Capital Resources

On June 30, 2020 and December 31, 2019, we had $29.9 million and $6.4 million in cash and cash equivalents, respectively. We acquired Astero on April 1, 2019 for $12.5 million in cash and contingent consideration of up to $8.5 million. We paid $483,000 of contingent consideration related to 2019 revenues of Astero in the second quarter of 2020. On November 12, 2019, we acquired CBS for $11.0 million in cash, $4.0 million in shares of our common stock, and up to $15.0 million in contingent consideration payable in cash or stock (which payment requirement has not been triggered or otherwise paid to date). 

On May 22, 2020, the Company closed on a share purchase agreement with Casdin Capital LLC, a current stockholder of the Company (“Casdin”), pursuant to which Casdin invested $20 million in the Company at $10.50 per share. On July 7, 2020, the Company closed its public offering of 5,951,250 shares of common stock at the public offering price of $14.50 per share, which includes the shares purchased pursuant to the exercise in full of the underwriters' option to purchase up to an additional 776,250 shares of its common stock. The net proceeds from the offering to BioLife, after deducting underwriting discounts and commissions and estimated offering expenses, were approximately $81 million.

Based on our current expectations with respect to our future revenue and expenses, we believe that our current level of cash and cash equivalents including proceeds from the public offering, will be sufficient to meet our liquidity needs for at least the next 12 months. However, if our revenues do not grow as expected, including as a result of the COVID-19 pandemic, and if we are not able to manage expenses sufficiently, we may be required to obtain additional equity or debt financing. Further, the Company may choose to raise additional capital through a debt or equity financing in an attempt to mitigate the heightened level of business uncertainty caused by the COVID-19 pandemic, or in order to pursue additional acquisition or strategic investment opportunities. Additional capital, if required, may not be available on reasonable terms, if at all. 

Risks and Uncertainties

COVID-19 Pandemic

On March 10, 2020, the World Health Organization declared the outbreak of the novel strain of coronavirus, SARS-CoV-2, which causes coronavirus disease 2019 (“COVID-19”) a pandemic. The COVID-19 pandemic, and the resulting restrictions intended to slow the spread of COVID-19, including stay-at-home orders, business shutdowns and other restrictions, has affected the Company’s business in several ways. In the last two weeks of March 2020, the Company received higher than average orders for its cryopreservation media products. The Company estimates that a total of between $1.5 to $2.0 million of orders for cryopreservation were shipped to customers wanting to have product on hand in the event of any potential supply disruptions. At this time, the Company is unable to determine whether the incremental cryopreservation “safety stock” orders represent a permanent inventory layer for our customers, or whether it was simply demand pull forward, which could result in lower cryopreservation orders in subsequent periods. Further, while the sales of our automated thaw and freezer product lines were not materially affected in the three months ended March 31, 2020, we believe the sales of these capital equipment products were negatively impacted in the second quarter ended June 30, 2020, due to customer facility closures resulting in delayed deliveries. We also believe that new capital equipment decisions may be delayed due to the pandemic, which would impact our automated thaw and freezer product lines, although at this time, the Company cannot estimate the financial impact.

The Company reviews capital and amortizing intangible assets (long-lived assets) for impairment on an annual basis or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company determined that the economic uncertainty caused by the COVID-19 pandemic was a trigger for an impairment review of certain long-lived assets based on the expected near term weakness in ThawStar and freezer revenue resulting from the impact of COVID-19. The Company revised the revenue projections for these two product lines to determine the impact on the fair value of the contingent consideration related to the existing earnout provisions. Based on results of the fair value analysis of the contingent consideration, the Company reduced the fair value of the combined contingent consideration liability from $1.9 million at March 31, 2020, to $388,000 at June 30, 2020.

As a result of the Company’s changed outlook for near term revenue from the ThawStar and freezer product lines, estimated undiscounted cash flow projections were developed to determine if any impairment of the related intangible assets was warranted. After conducting such review, the Company determined that there was no impairment of the remaining long-lived assets as of June 30, 2020. Given the inherent uncertainties of the COVID-19 pandemic and the estimates used in these cash flow projections, changes based on facts and circumstances in future quarters could give rise to impairment.

The Company may also experience other negative impacts of the COVID-19 outbreak such as the lack of availability of the Company’s key personnel, additional temporary closures of the Company’s office or the facilities of the Company’s business partners, customers, third party service providers or other vendors, the inability to travel to market and sell our products, and the interruption of the Company’s supply chain, distribution channels, liquidity and capital or financial markets.

Any disruption and volatility in the global capital markets as a result of the pandemic may increase the Company’s cost of capital and adversely affect the Company’s ability to access financing when and on terms that the Company desires. In addition, a recession resulting from the spread of COVID-19 could materially affect the Company’s business, especially if a recession results in higher unemployment causing potential patients to not have access to health insurance.

The ultimate extent to which the COVID-19 pandemic and its repercussions impact the Company’s business will depend on future developments, which are highly uncertain. However, the foregoing and other continued disruptions to the Company’s business as a result of COVID-19 could result in a material adverse effect on the Company’s business, results of operations, financial condition and cash flows.

On March 27, 2020, the President signed into law the “Coronavirus Aid, Relief, and Economic Security (CARES) Act.” The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations, increased limitations on qualified charitable contributions, and technical corrections to tax depreciation methods for qualified improvement property. The Company will continue to monitor the impact that the CARES Act may have on the Company’s business, financial condition, results of operations, or liquidity.

We determined that we met the original eligibility requirements per the guidelines original established by the U.S. federal government as part of the CARES Act for the Pursuant to the Paycheck Protection Program (the “PPP”). As such, on April 20, 2020, the Company received $2,175,320 in support from the PPP. Because the U.S. government subsequently changed its position and guidelines related to the PPP and publicly traded companies, the Company repaid the loan on April 29, 2020. As of March 30, 2020, the company started deferring the employer side of social security payments. We will pay back 50% of our total deferred payments in 2021 and the remaining 50% in 2022.

8

 

Concentrations of credit risk and business risk

In the three months ended June 30, 2020, we derived approximately 25% of our product revenue from two customers and in the six months ended June 30, 2020, we derived approximately 13% of our revenue from one customer. In the three months ended June 30, 2019, we derived approximately 17% of our product revenue from one customer and in the six months ended June 30, 2019, we derived approximately 20% of our revenue from one customer. No other customer accounted for more than 10% of revenue in the six months ended June 30, 2020 or 2019. In the three months ended June 30, 2020 and 2019, we derived approximately 62% and 82%, of our revenue from CryoStor products, respectively. Due to our acquisitions in 2019, we expect both our revenue concentration related to CryoStor and our customer concentrations to be reduced for the year ended December 31, 2020. At June 30, 2020, two customers accounted for approximately 22% of total gross accounts receivable. At December 31, 2019, two customers accounted for approximately 25% of total gross accounts receivable. 

The following table represents the Company’s total revenue by geographic area (based on the location of the customer):

	Three Months Ended June 30,						Six Months Ended June 30,
Revenue by customers’ geographic locations	2020			2019			2020			2019
United States		70	%		71	%		73	%		66	%
Canada		18	%		17	%		14	%		20	%
Europe, Middle East, Africa (EMEA)		10	%		11	%		11	%		12	%
Other		2	%		1	%		2	%		2	%
Total revenue		100	%		100	%		100	%		100	%

Recent accounting pronouncements 

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 includes amendments that aim to improve the effectiveness of fair value measurement disclosures. The amendments in this guidance modify the disclosure requirements on fair value measurements based on the concepts in FASB Concepts Statement, “Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements,” including the consideration of costs and benefits. The amendments become effective for the Company in the year ending December 31, 2020 and early adoption is permitted. The Company adopted this guidance January 1, 2020 and there was no material impact on its consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes.” ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, including, but not limited to, the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items, the exceptions related to the recognition of a deferred tax liability related to an equity method investment and the exception to methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. ASU 2019-12 becomes effective for the Company in the year ended December 31, 2021, including interim periods. Due to the full valuation allowance on the Company’s net deferred tax assets, the Company is currently expecting no material impact from the adoption of ASU 2019-12 on its consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For Smaller Reporting Companies as defined by the SEC, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is evaluating the impact of the guidance on its financial statements. 

In August 2018, the FASB issued ASU No. 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”, which clarifies the accounting for implementation costs in cloud computing arrangements. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted this guidance January 1, 2020 and there was no material impact on its consolidated financial statements.

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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 investments at fair value on a recurring basis. The Company also measures certain assets and liabilities at fair value on a non-recurring basis when applying acquisition accounting. 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.

The availability of observable inputs can vary among the various types of financial assets and liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for financial statement disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is categorized is based on the lowest level input that is significant to the overall fair value measurement.

As of June 30, 2020 and December 31, 2019, the Company valued the Astero and CBS contingent consideration, investment in convertible debt, and warrant liability at fair value, which require Level 3 inputs

For the Astero and CBS contingent consideration, the significant Level 3 inputs are the future projected revenue and revenue volatility from the acquired businesses. The company used best estimates in developing revenue forecasts.

For the investment in convertible debt, the significant Level 3 inputs are the expected term of the instrument, the underlying credit worthiness of the issuer and the valuation of various embedded features in the note, which are based on future financings of the issuer. The expected term the range of our estimate is 3 to 5 years, with equal weighting over this term. There is currently no quantitative information concerning the creditworthiness of the issuer.

For the warrant liability, the significant Level 3 inputs include the estimated term of the warrants and the volatility of the Company’s common stock. For the estimated term of the warrants, we used the actual terms of the warrants, which are all currently less than one year.  For the volatility off the Company’s stock we used historical volatility for the remaining term of each warrant.  These amounts ranged from 73.9% to 77.7%. We did not make any adjustments to the historical volatility.

There were no remeasurements to fair value during the six months ended June 30, 2020 of financial assets and liabilities that are not measured at fair value on a recurring basis.

The following tables set forth the Company’s financial assets measured at fair value on a recurring basis as of  June 30, 2020 and  December 31, 2019, based on the three-tier fair value hierarchy:

(In thousands)

As of June 30, 2020	Level 1		Level 2		Level 3		Total
Assets:
Money market accounts	$	29,879	$	—	$	—	$	29,879
Convertible debt held at fair value		—		—		1,000		1,000
Total		29,879		—		1,000		30,879
Liabilities:
Contingent consideration - business combinations		—		—		387		387
Warrant liability		—		—		963		963
Total	$	—	$	—	$	1,350	$	1,350

As of December 31, 2019	Level 1		Level 2		Level 3		Total
Assets:
Money market accounts	$	6,448	$	—	$	—	$	6,448
Convertible debt held at fair value		—		—		1,000		1,000
Total		6,448		—		1,000		7,448
Liabilities:
Contingent consideration - business combinations		—		—		1,914		1,914
Warrant liability		—		—		39,602		39,602
Total	$	—	$	—	$	41,516	$	41,516

The fair values of money market funds classified as Level 1 were derived from quoted market prices as active markets for these instruments exist. The fair values of investments, warrant liability and contingent consideration classified as Level 3 were derived from management assumptions. There have been no transfers of assets or liabilities between the fair value measurement levels. The following table presents the changes in investments held at fair value which are measured using Level 3 inputs:

	June 30,		December 31,
(In thousands)	2020		2019
Beginning balance	$	1,000	$	1,000
Purchases		—		—
Change in fair value recognized in net income		—		—
Total	$	1,000	$	1,000

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The following table presents the changes in fair value of contingent consideration liabilities which are measured using Level 3 inputs:

	June 30,			December 31,
(In thousands)	2020			2019
Beginning balance	$	1,914		$	—
Additions		—			2,347
Change in fair value recognized in net income		(1,526	)		50
Payments earned, reclassified to accrued liabilities		—			(483	)
Total	$	388		$	1,914

The following table presents the changes in fair value of warrant liabilities which are measured using Level 3 inputs:

	June 30,			December 31,
(In thousands)	2020			2019
Beginning balance	$	39,602		$	28,516
Exercised warrants		(33,167	)		(1,749	)
Change in fair value recognized in net income		(5,472	)		12,835
Ending balance	$	963		$	39,602

3. Acquisitions 

Astero Acquisition 

On April 1, 2019, BioLife completed the acquisition of all the outstanding shares of Astero. Astero’s ThawSTAR product line is comprised of a family of automated thawing devices for frozen cell and gene therapies packaged in cryovials and cryobags. The products improve the quality of administration of high-value, temperature-sensitive biologic therapies to patients by standardizing the thawing process and reducing the risks of contamination and overheating, which are inherent with the use of traditional water baths.

In connection with the acquisition, the Company paid (i) a base payment in the amount of $12.5 million consisting of (x) an initial cash payment of $8.0 million at the closing of the transactions, subject to adjustment for working capital, net debt and transaction expenses, and (y) a deferred cash payment that was paid into escrow and subsequently paid to Astero of $4.5 million which was payable upon the earlier of Astero meeting certain product development milestones or one year after the date of the Closing and (ii) earnout payments in calendar years 2019, 2020 and 2021 of up to an aggregate of $3.5 million, which shall be payable upon Astero achieving certain specified revenue targets in each year (in the second quarter of 2020 we paid $483,000 for the earnout related to 2019 revenues) and a separate earnout payment of $5.0 million for calendar year 2021, which shall be payable upon Astero achieving a cumulative revenue target over the three-year period from 2019 to 2021.

Consideration transferred

The Astero acquisition was accounted for as a purchase of a business under FASB ASC Topic 805, “Business Combinations”. The Astero acquisition was funded through payment of approximately $12.5 million in cash and under the terms of the share purchase agreement, Astero shareholders are eligible to receive up to an additional $8.5 million of contingent consideration in cash over the next three years based on attainment of specific revenue targets. Under the acquisition method of accounting, the assets acquired and liabilities assumed from Astero were recorded as of the acquisition date, at their respective fair values, and consolidated with those of BioLife. The fair value of the contingent consideration of $1.5 million was determined using an option pricing model. The fair value of the net tangible assets acquired is estimated to be approximately $324,000, the fair value of the intangible assets acquired is estimated to be approximately $4.1 million, and the residual goodwill is estimated to be approximately $9.5 million. The fair value estimates required critical estimates, including, but not limited to, future expected cash flows, revenue and expense projections, discount rates, revenue volatility, and royalty rates. BioLife believes these estimates to be reasonable. Actual results may differ from these estimates.

Total consideration recorded for the acquisition of Astero is as follows (amounts in thousands):

Cash consideration	$	12,521
Contingent consideration		1,491
Working capital adjustment		(71	)
Total consideration transferred	$	13,941

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Fair Value of Net Assets Acquired

The table below represents the purchase price allocation to the net assets acquired based on their estimated fair values (amounts in thousands). Such amounts were estimated using the most recent financial statements from Astero as of March 31, 2019.

Cash and cash equivalents	$	11
Accounts receivable, net		154
Inventory		456
Customer relationships		160
Tradenames		470
Developed technology		2,840
In-process research and development		650
Goodwill		9,515
Other assets		99
Accounts payable		(250	)
Other liabilities		(164	)
Fair value of net assets acquired	$	13,941

The fair value of Astero’s identifiable intangible assets and estimated useful lives have been estimated as follows (amounts in thousands except years):

	Estimated Fair Value		Estimated Useful Life (Years)
Customer relationships	$	160		4
Tradenames		470		9
Developed technology		2,840	5	–	9
In-process research and development		650		9
Total identifiable intangible assets	$	4,120

Fair value measurement methodologies used to calculate the value of any asset can be broadly classified into one of three approaches, referred to as the cost, market and income approaches. In any fair value measurement analysis, all three approaches must be considered, and the approach or approaches deemed most relevant will then be selected for use in the fair value measurement of that asset. The fair value of identifiable intangible assets was determined by third-party appraisal primarily using variations of the income approach, which is based on the present value of the future after-tax cash flows attributable to each identifiable intangible asset. The fair value of inventories was determined using both the cost approach and the market approach. 

Some of the more significant assumptions inherent in the development of intangible asset fair values, from the perspective of a market participant, include, but are not limited to (i) the amount and timing of projected future cash flows (including revenue and expenses), (ii) the discount rate selected to measure the risks inherent in the future cash flows, (iii) the assessment of the asset’s life cycle, and (iv) the competitive trends impacting the asset. Some of the more significant assumptions inherent in valuing the contingent consideration, include, but are not limited to (i) the amount and timing of projected future revenue, (ii) the volatility rate selected to measure the risks inherent in the revenue, and (iii) risk free interest rate.

Acquired Goodwill

The goodwill of $9.5 million represents future economic benefits expected to arise from synergies from combining operations and commercial organizations to increase market presence and the extension of existing customer relationships. All but $1.1 million of the goodwill recorded is not expected to be deductible for income tax purposes.

SAVSU Acquisition 

On August 8, 2019, we closed the acquisition of SAVSU pursuant to a Share Exchange Agreement. Pursuant to the Share Exchange Agreement, SAVSU Origin, LLC agreed to transfer to us and we agreed to acquire from the seller 8,616 shares of common stock of SAVSU, representing the remaining 56% of the outstanding shares of SAVSU that we did not previously own, in exchange for 1,100,000 shares of BioLife common stock. As a result of the acquisition, SAVSU became a wholly-owned subsidiary on August 8, 2019, the acquisition date.

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Consideration transferred

The SAVSU acquisition was accounted for as a purchase of a business under FASB ASC Topic 805, “Business Combinations”. The acquisition of 56% of SAVSU was funded through a transfer of 1,100,000 shares of BioLife common stock, which had a fair value of $18.12 per share or $19.9 million at time of closing. The total value of 100% of SAVSU consisting of the fair value of the stock issued and the fair value of our existing investment in SAVSU was $35.8 million at time of closing. Prior to the acquisition, we accounted for our investment of SAVSU using the equity method of accounting which resulted in a recorded book value of $5.8 million at the acquisition date. We remeasured to fair value the equity interest in SAVSU held immediately before the business combination. The fair value of our equity interest was determined to be $15.9 million on our existing 44% ownership based on the fair value of shares transferred at the time of acquisition for the 56% we did not previously own. As a result, we recorded a non-operating gain of $10.1 million.

Under the acquisition method of accounting, the assets acquired and liabilities assumed from SAVSU were recorded as of the acquisition date, at their respective fair values, and consolidated with those of BioLife. The fair value of the net tangible assets acquired is estimated to be approximately $4.2 million, the fair value of the intangible assets acquired is estimated to be approximately $12.2 million, and the residual goodwill is estimated to be approximately $19.5 million. The fair value estimates required critical estimates, including, but not limited to, future expected cash flows, revenue and expense projections, discount rates, revenue volatility, and royalty rates. BioLife believes these estimates to be reasonable. Actual results may differ from these estimates.

Total consideration paid for the acquisition of SAVSU is as follows (amounts in thousands):

Stock consideration for 55.6% equity interest purchased $ 19,932

This stock consideration plus the fair value of our existing equity investment in SAVSU of $15.9 million results in the total purchase price for accounting purposes of $35.8 million.

Fair Value of Net Assets Acquired

The table below represents the purchase price allocation to the net assets acquired based on their estimated fair values (amounts in thousands). Such amounts were estimated using the most recent financial statements from SAVSU as of August 7, 2019.

Cash and cash equivalents	$	1,251
Accounts receivable, net		753
Prepaid expenses and other current assets		19
Property, plant and equipment, net		546
Operating right-of-use asset		233
Assets held for rent, net		2,441
Customer relationships		80
Tradenames		1,320
Developed technology		10,750
Goodwill		21,037
Accounts payable and accrued expenses		(807	)
Deferred tax liabilities		(1,541	)
Other liabilities		(232	)
Fair value of net assets acquired	$	35,850

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The fair value of SAVSU’s identifiable intangible assets and estimated useful lives have been estimated as follows (amounts in thousands except years):

	Estimated Fair Value		Estimated Useful Life (Years)
Customer relationships	$	80		6
Tradenames		1,320		9
Developed technology		10,750	7	–	8
Total identifiable intangible assets	$	12,150

Fair value measurement methodologies used to calculate the value of any asset can be broadly classified into one of three approaches, referred to as the cost, market and income approaches. In any fair value measurement analysis, all three approaches must be considered, and the approach or approaches deemed most relevant will then be selected for use in the fair value measurement of that asset. The fair value of identifiable intangible assets was determined primarily using variations of the income approach, which is based on the present value of the future after-tax cash flows attributable to each identifiable intangible asset. The fair value of assets held for rent and property, plant and equipment was determined using both the cost approach and the market approach.

Some of the more significant assumptions inherent in the development of intangible asset fair values, from the perspective of a market participant, include, but are not limited to (i) the amount and timing of projected future cash flows (including revenue and expenses), (ii) the discount rate selected to measure the risks inherent in the future cash flows, (iii) the assessment of the asset’s life cycle, and (iv) the competitive trends impacting the asset. Some of the more significant assumptions inherent in the in valuing the contingent consideration, include, but are not limited to (i) the amount and timing of projected future revenue, (ii) the volatility rate selected to measure the risks inherent in the revenue, and (iii) risk free interest rate.

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Acquired Goodwill

The goodwill of $21.0 million represents future economic benefits expected to arise from synergies from combining operations and commercial organizations to increase market presence and the extension of existing customer relationships. None of the goodwill recorded is expected to be deductible for income tax purposes.

Custom Biogenic Systems Acquisition 

On November 10, 2019, we entered into an Asset Purchase Agreement, by and among the Company, Arctic Solutions, Inc., a Delaware corporation and wholly-owned subsidiary of the Company, and CBS, a Michigan corporation, pursuant to which we agreed to purchase from CBS substantially all of CBS’s assets, properties and rights (the “CBS Acquisition”). CBS, a privately held company with operations located near Detroit, Michigan, designs and manufactures liquid nitrogen laboratory freezers and cryogenic equipment and also offers a related cloud-based monitoring system that continuously assesses biologic sample storage conditions and alerts equipment owners if a fault condition occurs. The CBS Acquisition closed on November 12, 2019.

In connection with the CBS Acquisition, we paid to CBS (i) a base payment in the amount of $15.0 million, consisting of a cash payment of $11.0 million paid at the closing of the CBS Acquisition, less a cash holdback escrow of $550,000 to satisfy certain indemnification claims, and an aggregate number of shares of our common stock, with an aggregate fair value equal to $4.0 million, less a holdback escrow of shares of Common Stock with an aggregate value equal to $3.0 million to satisfy potential payments related to any product liability claims outstanding as of March 13, 2019, and (ii) potential earnout payments in calendar years 2020, 2021, 2022, 2023 and 2024 of up to an aggregate of, but not exceeding, $15.0 million payable to CBS upon achieving certain specified revenue targets in each year for certain product lines.

The CBS Acquisition was accounted for as a purchase of a business under FASB ASC Topic 805, “Business Combinations”. Under the acquisition method of accounting, the acquired assets and liabilities assumed from CBS were recorded as of the acquisition date, at their fair values, and consolidated with BioLife. The fair value of the net tangible assets acquired is $6.0 million, the fair value of the identifiable intangibles is $6.8 million, and the residual goodwill is $3.1 million. The fair value estimates required critical estimates, including, but not limited to, future expected cash flows, revenue and expense projections, discount rates, revenue volatility, and royalty rates. BioLife believes these estimates to be reasonable. Actual results may differ from these estimates.

Total consideration transferred (in thousands):

Cash consideration	$	11,000
Stock consideration		4,000
Contingent consideration		856
Total consideration transferred	$	15,856

Fair Value of Net Assets Acquired

The table below represents the purchase price allocation to the net assets acquired based on their fair values (amounts in thousands). Such amounts were estimated using the most recent financial statements from CBS as of November 11, 2019.

Accounts receivable, net	$	1,044
Inventory		3,232
Prepaid expenses and other current assets		29
Property, plant and equipment, net		3,615
Customer relationships		560
Tradenames		800
Developed technology		5,430
Goodwill		2,954
Accounts payable		(1,197	)
Other liabilities		(611	)
Fair value of net assets acquired	$	15,856

The fair value of CBS’s identifiable intangible assets and weighted average useful lives have been estimated as follows (amounts in thousands except years):

	Estimated Fair Value		Estimated Useful Life (Years)
Customer relationships	$	560	6
Tradenames		800	6
Developed technology		5,430	9
Total identifiable intangible assets	$	6,790

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Fair value measurement methodologies used to calculate the value of any asset can be broadly classified into one of three approaches, referred to as the cost, market and income approaches. In any fair value measurement analysis, all three approaches must be considered, and the approach or approaches deemed most relevant will then be selected for use in the fair value measurement of that asset. The fair value of identifiable intangible assets was determined primarily using variations of the income approach, which is based on the present value of the future after-tax cash flows attributable to each identifiable intangible asset. The fair value of inventories was determined using both the cost approach and the market approach and the fair value of property, plant and equipment was determined using the cost and market approach. 

Some of the more significant assumptions inherent in the development of intangible asset fair values, from the perspective of a market participant, include, but are not limited to (i) the amount and timing of projected future cash flows (including revenue and expenses), (ii) the discount rate selected to measure the risks inherent in the future cash flows, (iii) the assessment of the asset’s life cycle, and (iv) the competitive trends impacting the asset. Some of the more significant assumptions inherent in valuing the contingent consideration, include, but are not limited to (i) the amount and timing of projected future revenue, (ii) the volatility rate selected to measure the risks inherent in the revenue, and (iii) risk free interest rate.

Acquired Goodwill

The goodwill of $3.0 million represents future economic benefits expected to arise from synergies from combining operations and commercial organizations to increase market presence and the extension of existing customer relationships. All of the goodwill recorded is expected to be deductible for income tax purposes.

4. Inventory

Inventory consists of the following at June 30, 2020 and December 31, 2019:

(In thousands)	June 30, 2020		December 31, 2019
Raw materials	$	2,679	$	2,979
Work in progress		1,678		1,896
Finished goods		6,533		6,097
Total	$	10,890	$	10,972

5. Assets held for rent

Assets held for rent consist of the following at June 30, 2020 and December 31, 2019:

(In thousands)	June 30, 2020			December 31, 2019
Shippers placed in service	$	4,199		$	3,073
Accumulated deprecation		(569	)		(174	)
Net		3,630			2,899
Shippers and related components in production		1,328			1,023
Total	$	4,958		$	3,922

Shippers and related components in production include shippers complete and ready to be deployed and placed in service upon a customer order, shippers in the process of being assembled, and components available to build shippers. We recognized $267,000 and $395,000 in depreciation expense related to assets held for rent during the three and six months ended June 30, 2020. We did not have any depreciation expense related to assets held for rent during the three months and six months ended June 30, 2019.

6. Goodwill and Intangible Assets

 Goodwill

Goodwill represents the difference between the purchase price and the estimated fair value of identifiable assets acquired and liabilities assumed. Goodwill acquired in a business combination and determined to have an indefinite useful life is not amortized, but instead is tested for impairment at least annually in accordance with ASC 350. The following table represents the change in the carrying value of goodwill for the three months ended June 30, 2020:

(In thousands)
Balance as of December 31, 2019	$	33,637
Correction of an error related to CBS goodwill		(131	)
Balance as of June 30, 2020	$	33,506

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We adjusted goodwill from the CBS Acquisition related to an immaterial error of $131,000 in payables that were paid during closing and incorrectly recorded as liabilities in our purchase price accounting as of December 31, 2019. We reduced our goodwill and accounts payable by $131,000.

Intangible Assets

Intangible assets, net consisted of the following at June 30, 2020:

(In thousands, except weighted average useful life)	June 30, 2020
Finite-lived intangible assets:	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (in years)
Customer Relationships	$	800	$	(124	)	$	676		4.8
Tradenames		2,590		(289	)		2,301		7.2
Technology – acquired (1)		19,670		(2,059	)		17,611		7.6
Total intangible assets	$	23,060	$	(2,472	)	$	20,588		7.4

(1)   We transferred $650,000 out of “in-process R&D” into “Technology – acquired” on April 1, 2020, which was the date on which the product line became technologically feasible.

Intangible assets, net consisted of the following at December 31, 2019:

(In thousands, except weighted average useful life)	December 31, 2019
Finite-lived intangible assets:	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (in years)
Customer Relationships	$	800	$	(51	)	$	749		5.6
Tradenames		2,590		(123	)		2,467		8.1
Technology – acquired		19,020		(904	)		18,116		8.4
In-process R&D (2)		650		—			650		9.0
Total intangible assets	$	23,060	$	(1,078	)	$	21,982		8.3

(2)   In-process R&D represents the fair value of incomplete research and development that has not yet reached technological feasibility. On April 1, 2020, we began amortizing the asset since it reached technological feasibility (see footnote 1 above).

Amortization expense for finite-lived intangible assets was $706,000 and $1.4 million for the three and six months ended June 30, 2020, respectively and $104,000 for the three and six months ended June 30, 2019. In-process research and development was put into service in the second quarter of 2020, as such we have included the amortization in the schedule below based on an estimated life of 9 years. As of June 30, 2020, the Company expects to record the following amortization expense:

(In thousands) For the Years Ended December 31,	Estimated Amortization Expense
2020 (6 months remaining)	$	1,412
2021		2,825
2022		2,825
2023		2,795
2024		2,770
Thereafter		7,961
Total	$	20,588

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7. Share-based Compensation 

Service Vesting-Based Stock Options

The following is a summary of service vesting-based stock option activity for the six month period ended June 30, 2020 and the status of service vesting-based options outstanding at June 30, 2020:

	Six Month Period Ended
	June 30, 2020
				Wtd. Avg.
				Exercise
	Options			Price
Outstanding at beginning of year		1,570,455		$	1.96
Granted		—		$	—
Exercised		(393,680	)	$	1.92
Forfeited		—		$	—
Expired		—		$	—
Outstanding service vesting-based at June 30, 2020		1,176,775		$	1.98
Service vesting-based options exercisable at June 30, 2020		1,148,338		$	1.94

We recognized stock compensation expense related to service vesting-based options of $28,000 and $95,000 during the three months ended June 30, 2020 and 2019, respectively, and $89,000 and $240,000 during the six months ended June 30, 2020 and June 30, 2019, respectively. As of June 30, 2020, there was $16.9 million of aggregate intrinsic value of outstanding service vesting-based stock options, including $16.5 million 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, 2020. 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, 2020 and 2019 was $1.6 million and $2.0 million, respectively, and during the six months ended June 30, 2020 and 2019 was $4.7 million and $3.5 million, respectively. There were no service based-vesting options granted during the six months ended June 30, 2020 and 2019. The weighted average remaining contractual life of service vesting-based options outstanding and exercisable at June 30, 2020 is 4.1 years. Total unrecognized compensation cost of service vesting-based stock options at June 30, 2020 of $58,000 is expected to be recognized over a weighted average period of 1.2 years.

18

 

Performance-based Stock Options

The following is a summary of performance-based stock option activity for the six month period ended June 30, 2020, and the status of performance-based options outstanding at June 30, 2020:

	Six Month Period Ended
	June 30, 2020
				Wtd. Avg.
				Exercise
	Options			Price
Outstanding at beginning of year		737,497		$	1.64
Granted		—		$	—
Exercised		(17,113	)	$	1.64
Outstanding performance-based at June 30, 2020		720,384		$	1.64
Performance-based options exercisable at June 30, 2020		720,384		$	1.64

All compensation cost of performance-based stock options outstanding was recognized as of December 31, 2018. As of June 30, 2020, there was $10.6 million of aggregate intrinsic value of outstanding and 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, 2020. 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, 2020 was none and $239,000, respectively, and in the three and six months ended June 30, 2019 was none. The weighted average remaining contractual life of performance-based options outstanding and exercisable at June 30, 2020 is 1.5 years.

There were no stock options granted to employees and non-employee directors in the three and six month periods ended June 30, 2020 and 2019.

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Restricted Stock

Service vesting-based restricted stock

The following is a summary of service vesting-based restricted stock activity for the six month period ended June 30, 2020, and the status of unvested service vesting-based restricted stock outstanding at June 30, 2020:

	Six Month Period Ended
	June 30, 2020
Service vesting-based restricted stock	Number of Restricted Shares			Grant-Date Fair Value
Outstanding at beginning of year		429,399		$	13.25
Granted		235,215		$	12.03
Granted in lieu of cash		34,154		$	9.18
Vested		(88,390	)	$	11.89
Forfeited		(20,661	)	$	14.62
Outstanding at June 30, 2020		589,717		$	12.68

The aggregate fair value of the service vesting-based awards granted during the three months ended June 30, 2020 and 2019 was $1.5 million and $548,000, respectively, and during the six months ended June 30, 2020 and 2019 was $3.1 million and $3.2 million, 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 service vesting-based awards that vested during the three months ended June 30, 2020 and 2019 was $406,000 and $369,000, respectively and during the six months ended June 30, 2020 and 2019 was $1.2 million.

On March 25, 2020 our board of directors granted 34,154 restricted stock awards, based on a fair value on the grant date of $9.18 per share, in lieu of the 2019 cash performance bonus for our executive compensation plan. The award vests in full on September 25, 2020 regardless of employment status on that date. All expenses related to these awards were incurred in the year ended December 31, 2019.

We recognized stock compensation expense of $466,000 and $268,000 related to service vesting-based awards for the three months ended June 30, 2020 and 2019, respectively, and $860,000 and $522,000 related to service vesting-based awards for the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, there was $6.6 million in unrecognized compensation costs related to service vesting-based awards. We expect to recognize those costs over 3.2 years.

Performance-based restricted stock

On March 25, 2020 the Company granted 82,805 shares of performance-based stock to its executives in the form of restricted stock. The shares granted contain a performance condition based on several Company metrics related to 2020 performance. The performance-based restricted stock awards will vest as to between 0% and 125% of the number of restricted shares granted to each recipient. The grant date fair value of this award was $9.18 per share. The fair value of this award will be expensed on a straight-line basis over the requisite service period ending on December 31, 2020.

The following is a summary of performance-based restricted stock activity for the six month period ended June 30, 2020, and the status of unvested service vesting-based restricted stock outstanding at June 30, 2020:

	Six Month Period Ended
	June 30, 2020
Performance-based restricted stock	Number of Restricted Shares		Grant-Date Fair Value
Outstanding at beginning of year		—	$	—
Expected to vest		82,805	$	9.18
Vested		—	$	—
Forfeited		—	$	—
Outstanding at June 30, 2020		82,805	$	9.18

We recognized stock compensation expense of $189,000 and $378,000 related to performance-based restricted stock awards for the three and six months ended June 30, 2020, respectively. As of June 30, 2020, there was $382,000 in unrecognized non-cash compensation costs related to performance-based restricted stock awards expected to vest. We expect to recognize those costs over .5 years.

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Market-based restricted stock

On February 25, 2019 the Company granted 94,247 shares and on April 1, 2019 granted 29,604 shares of market-based stock to its executives in the form of restricted stock. The shares granted contain a market condition based on Total Shareholder Return (“TSR”). The TSR market condition measures the Company’s performance against a peer group. The market-based restricted stock awards will vest as to between 0% and 200% of the number of restricted shares granted to each recipient based on our total shareholder return during the period beginning on January 1, 2019 through December 31, 2020 as compared to the total shareholder return of 20 of our peers. The fair value of this award was determined using a Monte Carlo simulation with the following assumptions: a historical volatility of 69%, 0% dividend yield and a risk-free interest rate of 2.5%. The historical volatility was based on the most recent 2-year period for the Company and correlated with the components of the peer group. The stock price projection for the Company and the components of the peer group assumes a 0% dividend yield. This is mathematically equivalent to reinvesting dividends in the issuing entity over the performance period. The risk-free interest is based on the yield on the U.S. Treasury Strips as of the Measurement Date with a maturity consistent with the 2-year term associated with the market condition of the award. The fair value of this award will be expensed on a straight-line basis over the grant date to the vesting date of December 31, 2020.

On March 25, 2020 the Company granted 109,140 shares of market-based stock to its executives in the form of restricted stock. The shares granted contain a market condition based on TSR. The TSR market condition measures the Company’s performance against a peer group. The market-based restricted stock awards will vest as to between 0% and 200% of the number of restricted shares granted to each recipient based on our total shareholder return during the period beginning on January 1, 2020 through December 31, 2021 as compared to the total shareholder return of 20 of our peers. The fair value of this award was determined using a Monte Carlo simulation with the following assumptions: a historical volatility of 78%, 0% dividend yield and a risk-free interest rate of 0.3%. The historical volatility was based on the most recent 2-year period for the Company and correlated with the components of the peer group. The stock price projection for the Company and the components of the peer group assumes a 0% dividend yield. This is mathematically equivalent to reinvesting dividends in the issuing entity over the performance period. The risk-free interest is based on the yield on the U.S. Treasury Strips as of the Measurement Date with a maturity consistent with the 2-year term associated with the market condition of the award. The fair value of this award will be expensed on a straight-line basis over the grant date to the vesting date of December 31, 2021.

We recognized stock compensation expense of $462,000 and $455,000 related to market-based restricted stock awards for the three months ended June 30, 2020 and 2019, respectively, and $931,000 and $587,000 related to market-based restricted stock awards for the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, there was $1.9 million in unrecognized non-cash compensation costs related to market-based restricted stock awards expected to vest. We expect to recognize those costs over 1 year.

Total Stock Compensation Expense

We recorded total stock compensation expense for the three and six month periods ended June 30, 2020 and 2019, as follows:

	Three Month Period Ended				Six Month Period Ended
	June 30,				June 30,
(In thousands)	2020		2019		2020		2019
Research and development costs	$	222	$	168	$	397	$	235
Sales and marketing costs		96		171		325		326
General and administrative costs		699		439		1,275		716
Cost of product sales		128		40		261		72
Total	$	1,145	$	818	$	2,258	$	1,349

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8. Warrants

In March 2014, in a registered public offering and in accordance with a separate note conversion agreement with certain note holders, the Company issued warrants to purchase 6,910,283 shares of common stock at $4.75 per share. The warrants expire in March 2021.

In May 2016, in connection with a credit facility with WAVI Holding AG, a significant stockholder of the Company, the Company issued a warrant to purchase 550,000 shares of common stock at $1.75 per share. The warrant was immediately exercisable and expires in May 2021.

On May 14, 2020, the Company entered into separate warrant exercise agreements with WAVI Holding AG and Taurus4757 GmbH pursuant to which the warrant holders immediately exercised their respective warrants via a “cashless” exercise as agreed to by the Company. As a result of the cashless exercise, the Company issued an aggregate of 2,747,970 shares of Company common stock upon cashless exercise of an aggregate of 3,871,405 warrants.

Additionally, during the three and six months ended June 30, 2020, 3,000 and 5,000 warrants were exercised with a weighted average exercise price of $4.75, yielding proceeds of $14,000 and $24,000, respectively. The outstanding warrants expire in March 2021.

The following table summarizes warrant activity for the six months ended June 30, 2020:

	Shares			Wtd. Avg. Exercise Price
Outstanding at December 31, 2019		3,959,005		$	4.33
Exercised		(3,876,405	)		4.33
Outstanding at June 30, 2020		82,600		$	4.75

9. Income Taxes

The Company accounts for income taxes under ASC Topic 740 – Income Taxes. Under this standard, deferred tax assets and liabilities are recognized for future tax benefits or consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled

We have recorded a full valuation allowance against our deferred tax assets. As we continue to have multiple quarters of positive net income, we will 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 June 30, 2020. 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.

On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") into law. The Company has reviewed the aspects of this law as it relates to income taxes and have concluded that at this time, the CARES Act will have no material impact to the Company’s 2020 provision for income taxes. The Company will continue to evaluate the impact of the CARES Act on its financial position, results of operations and cash flows.

As of March 30, 2020, the company started deferring the employer side of social security payments as allowed under the CARES Act. We will pay back 50% of our total deferred payments in 2021 and the remaining 50% in 2022.

10. Net Income (Loss) per Common Share                  

The Company considers its unexercised warrants and unvested restricted shares, which contain non-forfeitable rights to dividends, participating securities, and includes such participating securities in its computation of earnings per share pursuant to the two-class method. 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 shares of common stock plus the potentially dilutive effect of common equivalent shares outstanding determined under both the two class method and the treasury stock method, whichever is more dilutive. 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, 2020 and 2019, we excluded a nominal amount of unvested stock awards from our calculation of diluted weighted average shares because they were antidilutive.

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The following table presents computations of basic and diluted earnings per share under the two class method:

	Three Month Period Ended					Six Month Period Ended
	June 30,					June 30,
(In thousands, except per share and share data)	2020			2019		2020		2019
Numerator:
Net income attributable to common stockholders
Basic	$	(16,380	)	$	3,425	$	5,093	$	(14,909	)
Diluted	$	(16,380	)	$	545	$	350	$	(14,909	)
Denominator:
Basic weighted average shares outstanding		23,292,635			18,819,459		22,151,726		18,734,401
Diluted weighted average shares outstanding		23,292,635			24,539,299		27,013,580		18,734,401
Basic earnings per share	$	(0.70	)	$	0.18	$	0.23	$	(0.80	)
Diluted earnings per share	$	(0.70	)	$	0.02	$	0.01	$	(0.80	)

11. Commitments & Contingencies

Employment agreements

We have employment agreements with our Chief Executive Officer, Chief Financial and Operating Officer, Chief Science Officer, Chief Quality Officer, Chief Marketing Officer, Vice President, Freezer Technologies, Vice President of Sales, Thaw Technologies, Vice President of Product Development, Thaw Technologies, and Vice President, Cold Chain Technologies 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. In addition, the agreement with the Chief Executive Officer provides for incentive bonuses at the discretion of the Board of Directors. 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. The Company’s industry is characterized by frequent claims and litigation, including claims regarding intellectual property. As a result, the Company may be subject to various legal proceedings from time to time. The results of any future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. Management is not aware of any pending or threatened litigation.

Indemnification

As permitted under Delaware law and in accordance with the Company’s bylaws, the Company is required to indemnify its officers and directors for certain errors and occurrences while the officer or director is or was serving in such capacity. The Company is also party to indemnification agreements with its directors. The Company believes the fair value of the indemnification rights and agreements is minimal. Accordingly, the Company has not recorded any liabilities for these indemnification rights and agreements as of June 30, 2020.

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12. Revenue

We currently operate as one operating segment focusing on bioproduction tools.

We generate revenue from the sale of bioproduction products, equipment devices, and related consumables used with these equipment devices to customers in the life science and biopharmaceutical industries. Under ASC 606, “Revenue from Contracts with Customers,” revenue is recognized when, or as, obligations under the terms of a contract are satisfied, which occurs when control of the promised products or services is transferred to customers.

The Company also generates revenue from the leasing of our evo cold chain systems, which are typically cloud-connected shippers with enabling cold chain cloud applications, to customers pursuant to rental arrangements entered into with the customer. Revenue from the rental of cold chain systems is not within the scope of FASB ASC Topic 606 as it is within the scope of FASB ASC Topic 842, “Leases”. All customers leasing shippers currently do so under month-to-month rental arrangements. We account for these rental transactions as operating leases and record rental revenue on a straight-line basis over the rental term.

The following table represents revenues by product line:  

	Three Month Period Ended				Six Month Period Ended
	June 30,				June 30,
(In thousands)	2020		2019		2020		2019
Biopreservation media	$	6,667	$	6,327	$	15,339	$	12,097
Automated thawing		376		374		770		374
evo shippers		439		—		877		—
Freezers and accessories		2,438		—		5,096		—
Total	$	9,920	$	6,701	$	22,082	$	12,471

13. Leases

We lease approximately 32,106 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 $63,000 at June 30, 2020, 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.

We lease approximately 1,250 square feet in our Menlo Park, California location. The term of our lease continues until July 1, 2020. In accordance with the lease agreement, the monthly base rent is approximately $5,000 at June 30, 2020. We are also required to pay an amount equal to the Company’s proportionate electrical expenses.

We lease approximately 9,932 square feet in our Albuquerque, New Mexico location. The term of our lease continues until December 31, 2021 with two options to extend the terms of the lease, each of which is for an additional period of three years, with the first extension term commencing, if at all, on December 1, 2021, and the second extension term commencing, if at all, December 1, 2024. In accordance with the lease agreement, the monthly base rent is approximately $9,000 at June 30, 2020, with a monthly increase if the term is extended.

We lease approximately 106,998 square feet in our Detroit, Michigan location. The term of our lease continues until November 30, 2020 with one option to extend the term of the lease, for an additional sixty months, with the extension term commencing, if at all, on November 12, 2020. These extension options are not accounted for under ASC Topic 842, “Leases” because we are not reasonably certain we will enter into the renewal options in their current terms and the current term is less than 12 months. With adequate notice prior to expiration of the option notice period, we have the right to purchase the premises for a purchase price that is mutually acceptable to landlord and tenant as agreed to by the parties on or before the expiration of the option notice period. In the event that the parties are unable to mutually agree on the option purchase price then each party shall obtain, at its sole cost and expense, an appraisal of the premises and the option purchase price will be the average of the two appraisals. For the avoidance of doubt, our right to elect to purchase the premises for the option purchase price will terminate upon the expiration of the option notice period, but we will not be obligated to close on the purchase of the premises prior to the expiration of the initial term. In accordance with the lease agreement, the monthly base rent is approximately $15,000 at June 30, 2020, with scheduled annual increases if the term is extended.

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Operating leases recorded on our condensed consolidated balance sheet are primarily related to our Bothell, Washington headquarters space lease and our Albuquerque, New Mexico, SAVSU, space lease. We have not included extension options in our right of use assets or lease liabilities as we are not reasonably certain we will enter into the renewal options in their current terms. Our Detroit, Michigan and Menlo Park, California lease are not recorded on our condensed consolidated balance sheet as the term expires in one year or less.

Our financing lease is related to research equipment.

We used a weighted average discount rate of 6.5%, our market collateralized borrowing rate, and 8.1%, the weighted average implied interest on our leases, to determine our operating and financing lease liabilities, respectively. The weighted average remaining term of our operating and financing leases are 1.3 years and 0.7 years, respectively. We initially recognized $1.3 million in operating lease right of use assets and initially recognized $1.8 million in operating lease liabilities. Through the SAVSU acquisition we acquired $233,000 in operating lease right of use assets and acquired $232,000 in operating lease liabilities. The operating lease costs recognized in the three months ended June 30, 2020 were $229,000, which consist of $170,000 in operating lease costs and $59,000 in short-term lease costs, and we did not have any variable lease costs. The operating lease costs recognized in the six months ended June 30, 2020 were $456,000, which consist of $339,000 in operating lease costs and $117,000 in short-term lease costs, and we did not have any variable lease costs. The operating lease cash paid in the three and six months ended June 30, 2020 was $217,000 and $434,000, respectively. Rent expense for the three and six months ended June 30, 2019, was $142,000 and $186,000, respectively.

Maturities of our operating lease liabilities as of June 30, 2020 is as follows:

(In thousands)	Operating Leases			Financing Leases
2020		440			8
2021		559			2
Total lease payments		999			10
Less: interest		(39	)		(1	)
Total present value of lease liabilities	$	960		$	9

14. Condensed Consolidated Balance Sheet Detail

Property and Equipment

(In thousands)	June 30, 2020			December 31, 2019
Property and equipment
Leasehold improvements	$	2,141		$	2,112
Furniture and computer equipment		824			794
Manufacturing and other equipment		5,474			5,187
Subtotal		8,439			8,093
Less: Accumulated depreciation		(3,092	)		(2,521	)
Net property and equipment	$	5,347		$	5,572

Depreciation expense for property and equipment was $292,000 and $110,000 for the three months ended June 30, 2020 and 2019, respectively, and $578,000 and $209,000 for the six months ended June 30, 2020 and 2019, respectively.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:

(In thousands)	June 30, 2020		December 31, 2019
Accrued expenses and other current liabilities	$	284	$	302
Other payables		206		1,018
Accrued compensation		1,813		1,554
Deferred revenue		286		324
Other		17		171
Total accrued expenses and other current liabilities	$	2,606	$	3,369

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15. Employee Benefit Plan

The Company sponsors a 401(k) defined contribution plan for its employees. This plan provides for pre-tax and post-tax contributions for all employees. Employee contributions are voluntary. Employees may contribute up to 100% of their annual compensation to this plan, as limited by an annual maximum amount as determined by the Internal Revenue Service. The Company matches employee contributions in amounts to be determined at the Company’s sole discretion. The Company made $95,000 and $38,000 contributions to the plan for the three months ended June 30, 2020 and 2019, respectively, and $179,000 and $88,000 contributions to the plan for the six months ended June 30, 2020 and 2019, respectively.

16. Subsequent Event

Public Offering

On July 7, we closed our public offering of 5,951,250 shares of common stock at the public offering price of $14.50 per share, which includes the shares purchased pursuant to the exercise in full of the underwriters' option to purchase up to an additional 776,250 shares of its common stock. The gross proceeds from the offering to BioLife, before deducting underwriting discounts and commissions and estimated offering expenses, were approximately $86 million.

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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” which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). 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 our products, including our newly acquired products, customers, regulatory approvals, the potential utility of and market for our products and services, our ability to implement our business strategy and anticipated business and operations, in particular following our 2019 acquisitions, future financial and operational performance, our anticipated future growth strategy, including the acquisition of synergistic cell and gene therapy manufacturing tools and services or technologies or other companies or technologies, capital requirements, intellectual property, suppliers, joint venture partners, future financial and operating results, the impact of the COVID-19 pandemic, plans, objectives, expectations and intentions, revenues, costs and expenses, interest rates, outcome of contingencies, financial condition, results of operations, liquidity, business strategies, regulatory filings and requirements, the estimated potential size of markets, capital requirements, the terms of any capital financing agreements, 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.

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, 2019 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.

Further information on potential risk factors that could affect our financial results are included in the filings made by us from time to time with the Securities and Exchange Commission including under the sections entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2019 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020.

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, 2019, as amended, 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.

We develop, manufacture and market bioproduction tools to the cell and gene therapy (“C&GT”) industry, which are designed to improve quality and de-risk biologic manufacturing and delivery. Our products are used in basic and applied research, and commercial manufacturing of biologic-based therapies. Customers use our products to maintain the health and function of biologic material during sourcing, manufacturing, storage, and distribution of cells and tissues.

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We currently operate as one bioproduction tools business with product lines that support several steps in the biologic material manufacturing and delivery process. We have a diversified portfolio of tools that focus on biopreservation, frozen storage, and thawing of biologic materials. We have in-house expertise in cryobiology and continue to capitalize on opportunities to maximize the value of our product platform for our extensive customer base through both organic growth innovations and acquisitions.

Our Products

Our bioproduction tools are comprised of four main product lines

● Biopreservation media

● Automated thawing devices

● Cloud connected “smart” shipping containers

● Freezer and storage technology and related components

Biopreservation media

Our proprietary biopreservation media products, HypoThermosol® FRS and CryoStor®, are formulated to mitigate preservation-induced, delayed-onset cell damage and death, which result when cells and tissues are subjected to reduced temperatures. Our technology can provide our C&GT customers with significant shelf life extension of biologic source material and final cell products, and can also greatly improve post-preservation cell and tissue viability and function. Our biopreservation media is serum-free, protein-free, fully defined, and manufactured under current Good Manufacturing Practices (cGMP). We strive to source wherever possible, the highest available grade, multi-compendium raw materials. We estimate our media products have been incorporated in over 400 customer clinical applications, including numerous chimeric antigen receptor (CAR) T cell and other cell types. 

Stability (i.e. shelf-life) and functional recovery are crucial aspects of academic research and clinical practice in the biopreservation of biologic-based source material, intermediate derivatives, and isolated/derived/expanded cellular products and therapies. Limited stability is especially critical in the C&GT field, where harvested cells and tissues will lose viability over time, if not maintained appropriately at normothermic body temperature (37ºC) or stored in a hypothermic state in an effective preservation medium. Chilling (hypothermia) is used to reduce metabolism and delay degradation of harvested cells and tissues. However, subjecting biologic material to hypothermic environments induces damaging molecular stress and structural changes. Although cooling successfully reduces metabolism (i.e., lowers demand for energy), various levels of cellular damage and death occur when using suboptimal methods. Traditional biopreservation media range from simple “balanced salt” (electrolyte) formulations to complex mixtures of electrolytes, energy substrates such as sugars, osmotic buffering agents and antibiotics. The limited stability which results from the use of these traditional biopreservation media formulations is a significant shortcoming that our optimized proprietary products address with great success.

Our scientific research activities over the last 20+ years enabled a detailed understanding of the molecular basis for the hypothermic and cryogenic (low-temperature induced) damage/destruction of cells through apoptosis and necrosis. This research led directly to the development of our HypoThermosol® FRS and CryoStor® technologies. Our proprietary biopreservation media products are specifically formulated to:

● Minimize cell and tissue swelling

● Reduce free radical levels upon formation

● Maintain appropriate low temperature ionic balances

● Provide regenerative, high energy substrates to stimulate recovery upon warming

● Avoid the creation of an acidic state (acidosis)

● Inhibit the onset of apoptosis and necrosis

A key feature of our biopreservation media products is their “fully-defined” profile. All of our cGMP products are serum-free, protein-free and are formulated and filled using aseptic processing. We strive to use USP/Multicompendial grade or the highest quality available synthetic components. We believe that all of these features benefit prospective customers by facilitating the qualification process required to incorporate our products into their regulatory filings.

The results of independent testing demonstrate that our biopreservation media products significantly extend shelf-life and improve cell and tissue post-thaw viability and function. Our products have demonstrated improved biopreservation outcomes, including greatly extended shelf-life and post-thaw viability, across a broad array of cell and tissue types.

Competing biopreservation media products are often formulated with simple isotonic media cocktails, animal serum, potentially a single sugar or human protein. A key differentiator of our proprietary HypoThermosol FRS formulation is the engineered optimization of the key ionic component concentrations for low temperature environments, as opposed to normothermic body temperature around 37°C, as found in culture media or saline-based isotonic formulas. Competing cryopreservation freeze media is often comprised of a single permeating cryoprotectant such as dimethyl sulfoxide (“DMSO”). Our CryoStor formulations incorporate multiple permeating and non-permeating cryoprotectant agents which allow for multiple mechanisms of protection and reduces the dependence on a single cryoprotectant. We believe that our products offer significant advantages over in-house formulations, or commercial “generic” preservation media, including, time saving, improved quality of components, more rigorous quality control release testing, more cost effective and improved preservation efficacy.

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We estimate that annual revenue from each customer commercial application in which our products are used could range from $0.5 million to $2.0 million, if such application is approved and our customer commences large scale commercial manufacturing of the biologic based therapy.

Automated, Water-Free Thawing Products

In April 2019, we acquired Astero Bio Corporation (“Astero”), to expand our bioprocessing tools portfolio and diversify our revenue streams. The Astero ThawSTAR® line includes automated vial and cryobag thawing products that control the heat and timing of the thawing process of biologic material. Our customizable, automated, water-free thawing products uses algorithmic programmed, heating plates to consistently bring biologic material from a frozen state to a liquid state in a controlled and consistent manner. This helps reduce damage during the temperature transition. The ThawSTAR products can reduce risks of contamination versus using a traditional water bath.

evo® Cloud Connected Shipping Containers

In August 2019, we acquired the remaining shares of SAVSU Technologies, Inc. (“SAVSU”) we did not previously own. SAVSU is a leading developer and supplier of next generation cold chain management tools for cell and gene therapies. The evo.is cloud app allows biologic products to be traced and tracked in real time. Our evo platform consists of rentable cloud-connected shippers and include technologies that enable tracking software provides real-time information on geolocation, payload temperature, ambient temperature, tilt of shipper, humidity, altitude, and real-time alerts when a shipper has been opened. Our internally developed evo.is software allows customers to customize alert notifications both in data measurements and user requirements. The evo Dry Vapor Shipper (“DVS”) is specifically marketed to cell and gene therapies. The evo DVS has improved form factor and ergonomics over the traditional dewar, including extended thermal performance, reduced liquid nitrogen recharge time, improved payload extractors and ability to maintain temperature for longer periods on its side.

We utilize couriers who already have established logistic channels and distribution centers. Our strategy greatly reduces the cash need to build out specialized facilities around the world. Our partnerships with several white glove couriers allow us to scale our sales and marketing effort by utilizing their salesforce. Our courier partnerships market our evo platform to their existing cell and gene therapy customers as a cost effective and innovative solution. We also market directly to our existing and prospective customers who can utilize the evo platform through our courier partnerships.     

Liquid Nitrogen Freezer and Storage Devices

In November 2019, we acquired Custom Biogenic Systems, Inc. (“CBS”) a global leader in the design and manufacture of state-of-the-art liquid nitrogen laboratory freezers, cryogenic equipment and accessories. The addition of CBS allows for product line growth, diversification of revenue and reduction of supply chain costs for our evo dry vapor shippers.

Included in CBS’s product line of liquid nitrogen freezers are the Isothermal LN2 freezers, constructed with a patented system which stores liquid nitrogen in a jacketed space in the walls of the freezer. This dry storage method eliminates liquid nitrogen contact with stored specimens, reduces the risk of cross-contamination and provides increased user safety in a laboratory setting. To accommodate customer requirements, we offer customizable features including wide bodied and extended height.

Our freezer offerings also include high capacity rate freezers which are fully customizable to customer needs with temperature range of -180°C to +50°C and freezing rates of 0.01 to 99.9 per minute. Password protected software aids in compliance with 21 CFR Part 11 and unlimited programming capability, these high capacity rate freezers provide a searchable database for freeze run history and allow freeze data to be saved.

To accompany the offerings of cryogenic freezer equipment, we supply equipment for storing critically important biological materials. This storage equipment includes upright freezer racks, chest freezer racks, liquid nitrogen freezer racks, canisters/cassettes and frames as well as laboratory boxes and dividers. Due to our onsite design and manufacturing capability, racks and canisters can be customized to address customers’ varying requirements,

In order to provide customers with a proactive approach to safety and monitoring of equipment containing liquefied gas, CBS offers Versalert, a patented wireless remote asset monitoring system that can monitor and record temperatures from -200°C to +50°C, and monitor and record two additional variables using 0-5v or 4-20mA inputs. With an intelligent mesh network with three times the range of competing products, the system enables customers to view current equipment conditions and receive alarm notification on smartphones, tablets or personal computers and maintain permanent electronic records for regulatory compliance and legal verification.

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Critical Accounting Policies and Estimates

A “critical accounting policy” is one which is both important to the portrayal of our financial condition and results and requires management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. For a description of our critical accounting policies that affect our more significant judgments and estimates used in the preparation of our consolidated financial statements, refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations and our significant accounting policies in Note 1 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC.

Results of Operations

The recent COVID-19 outbreak, and the resulting restrictions intended to slow the spread of COVID-19, including stay-at-home orders, business shutdowns and other restrictions, has affected the Company’s business in several ways. In the last two weeks of March 2020, the Company received higher than average orders for its cryopreservation media products. The Company estimates that a total of between $1.5 to $2.0 million of orders for cryopreservation were shipped to customers wanting to have product on hand in the event of any potential supply disruptions. At this time, the Company is unable to determine whether the incremental cryopreservation “safety stock” orders represent a permanent inventory layer for our customers, or whether it was simply a “pull forward” of demand, which could result in lower cryopreservation orders in subsequent periods. Further, while the sales of our automated thaw and freezer product lines were not materially effected in the three months ended March 31, 2020, we believe the sales of these capital equipment products were negatively impacted in the three months ended June 30, 2020, due to customer facility closures which resulted in delaying deliveries and recognizing revenue. We also believe that new capital equipment decisions may be further delayed due to the pandemic, which would impact our automated thaw and freezer product lines, although at this time, the Company cannot estimate the financial impact.

The following discussion of the financial condition and results of operations should be read in conjunction with the accompanying condensed consolidated financial statements and the related footnotes thereto.

Revenues

In 2019, we acquired three companies which resulted in increased revenue diversification compared to prior years, in which nearly all revenue was derived from our biopreservation media product line. In the three and six months ended June 30, 2020, we saw a more diversified revenue, both in terms of product and customer concentration, a trend we expect to see continue through 2020.

The following table represents revenues by product line for the three and six months ended June 30, 2020 and 2019:  

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands, except percentages)	2020		2019		2020		2019
Biopreservation media	$	6,667	$	6,327	$	15,339	$	12,097
Automated thawing		376		374		770		374
evo shippers		439		—		877		—
Freezers and accessories		2,438		—		5,096		—
Total revenue	$	9,920	$	6,701	$	22,082	$	12,471

Revenue increased by $3.2 million, or 48%, in the three months ended June 30, 2020 compared with 2019, and by $9.6 million, or 77% in the six months ended June 30, 2020, compared to 2019. The increase is due to the acquisitions throughout 2019 and an increase in product revenue of our biopreservation media products. Product revenue of our biopreservation media products increased by $340,000, or 5% in the three months ended June 30, 2020 compared with the same period in 2019, and increased by $3.2 million, or 27% in the six months ended June 30, 2020 compared to the same period in 2019. We estimate that we received approximately $1.5 to $2.0 million in incremental media revenue resulting from what we believe were safety stock purchases of media as a result of COVID-19. Our biopreservation media products continued to be adopted by customers in the C> market and we realized a higher selling price per liter and more volume in 2020 compared to 2019. Revenue is impacted by the relatively high degree of customer concentration, the timing of orders, the development efforts of our customers or end-users and regulatory approvals for biologics that incorporate our products, which may result in significant quarterly fluctuations. Such quarterly fluctuations are expected, but they may not be predictive of future revenue or otherwise indicative of a trend. We also expect to see quarterly fluctuations based on large customer ordering patterns throughout 2020. Due to the COVID-19 pandemic, while the sales of our automated thaw and freezer product lines were not materially effected in the three months ended March 31, 2020, we believe the sales of these capital equipment products were negatively impacted in the second quarter ended June 30, 2020, due to customer facility closures resulting in delayed deliveries. We also believe that new capital equipment decisions may be delayed due to the pandemic, which would impact our automated thaw and freezer product lines, although at this time, the Company cannot estimate the financial impact.

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Costs and Operating Expenses

Total costs and operating expenses for three and six months ended June 30, 2020 and 2019 were comprised of the following:

	Three Months Ended June 30,
(In thousands)	2020			2019			% Change
Operating expenses:
Cost of product and rental revenue	$	4,499		$	1,968			129	%
Research and development		1,477			691			114	%
Sales and marketing		1,366			945			45	%
General and administrative		3,278			2,207			49	%
Intangible assets amortization		706			104			579	%
Acquisition costs		13			39			(67	%)
Change in fair value of contingent consideration		(1,463	)		—			—	%
Total costs and operating expenses	$	9,876		$	5,954			66	%
% of revenue		99	%		89	%

	Six Months Ended June 30,
(In thousands)	2020			2019			% Change
Operating expenses:
Cost of product and rental revenue	$	9,067		$	3,616			151	%
Research and development		3,140			1,050			199	%
Sales and marketing		2,942			1,782			65	%
General and administrative		6,413			4,359			47	%
Intangible assets amortization		1,394			104			1,240	%
Acquisition costs		238			247			(4	%)
Change in fair value of contingent consideration		(1,526	)		—			—	%
Total costs and operating expenses	$	21,668		$	11,158			94	%
% of revenue		98	%		89	%

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Cost of product and rental revenue

In the three and six months ended June 30, 2020 cost of revenue increased $2.5 million and $5.5 million, or 129% and 151%, respectively, when compared to the same period in 2019, due primarily to the increase in revenue mentioned above. We expect that cost of product revenue may fluctuate in future quarters based on production volumes and product mix. The product lines acquired in 2019 have a higher cost of product revenue than our biopreservation media products.

Cost of product revenue as a percentage of revenue was 45%, and 29% for the three months ended June 30, 2020 and 2019, respectively. Cost of product revenue as a percentage of revenue was 41%, and 29% for the six months ended June 30, 2020 and 2019, respectively. Cost of product revenue in the three and six months ended June 30, 2020 includes $190,000 and $386,000 in inventory step-up related amortization recorded in the purchase accounting of our Astero and CBS acquisitions. The increase in cost of product revenue as a percentage of revenue is a result of the inventory step-up, and higher costs of product revenue as a percentage of revenue for the product lines acquired in 2019 through the Astero, Savsu and CBS acquisitions.

Research and Development Expenses

Research and development (“R&D”) expense consist primarily of salaries and other personnel-related costs, consulting and external product development services.

R&D expense for the three and six months ended June 30, 2020 increased $786,000 and $2.1 million, or 114% and 199%, respectively, compared with the same periods in 2019. The increase is primarily due to our three acquisitions in 2019 and stock compensation expense.

We expect our R&D expense to increase as we continue to expand, develop and refine the product lines we acquired in 2019.

Sales and Marketing Expenses

Sales and marketing expense (“S&M”) consists primarily of salaries and other personnel-related costs, stock compensation expense, trade shows, travel, sales commissions and advertising.

S&M expense for the three and six months ended June 30, 2020 increased $421,000 and $1.2 million, or 45% and 65%, respectively, compared with the same periods in 2019. The increase reflects the S&M costs we absorbed related to our acquisitions, stock compensation expense and an increase in our direct selling costs.

We expect S&M expense to increase, as we expand our direct selling efforts to support the broader product line offerings resulting from our 2019 acquisitions.  

General and Administrative Expenses

General and administrative (“G&A”) expense consists 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.

G&A expenses for the three and six months ended June 30, 2020 increased by $1.1 million and $2.1 million, or 49% and 47%, respectively, compared with the same periods in 2019. The increase reflects the assumption of G&A expenses related to our 2019 acquisitions, and the continued buildout of our administrative infrastructure, primarily through increased headcount and information technology expenditures, to support expected future growth and stock compensation expense.

We expect G&A expense to increase reflecting the infrastructure and costs related to supporting the larger expected enterprise created as a result of our 2019 acquisitions.

Intangible asset amortization expense

Amortization expense consists of charges related to the amortization of intangible assets associated with acquisitions, Astero, SAVSU and CBS in which we acquired definite-lived intangible assets.

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Acquisition costs

Acquisition costs consist of legal, accounting, third-party valuations, and other due diligence costs incurred related to our Astero, SAVSU and CBS acquisitions.

Change in fair value of contingent consideration

Change in fair value of contingent consideration consists of changes in estimated fair value of our potential earnouts related to our Astero and CBS acquisitions. Due to COVID-19 and the near-term reduction in capital expenditures by our customers, we reduced our expected revenue in the earnout period related to Astero and CBS in the second quarter of 2020. We recorded a gain in the change of fair value of contingent consideration of $1.5 million.

Other Income and Expense

Total other income and expenses for the three and six months ended June 30, 2020 and 2019 were comprised of the following:

	Three Months Ended June 30,
(In thousands, except percentages)	2020			2019			$ Change			% Change
Change in fair value of warrant liability	$	(16,442	)	$	3,586		$	(20,028	)		(559	%)
Interest income (expense), net		18			137			(119	)		(87	%)
Other		—			(1	)		1			100	%
Loss on equity method investment – SAVSU		—			(217	)		217			100	%
Total other income (expenses)	$	(16,424	)	$	3,505		$	(19,929	)		(569	%)

	Six Months Ended June 30,
(In thousands, except percentages)	2020			2019			$ Change			% Change
Change in fair value of warrant liability	$	5,472		$	(16,077	)	$	21,549			134	%
Interest income (expense), net		47			307			(260	)		(85	%)
Other		(5	)		(4	)		(1	)		(25	%)
Loss on equity method investment – SAVSU		—			(448	)		448			100	%
Total other income (expenses)	$	5,514		$	(16,222	)	$	21,736			134	%

Change in fair value of warrant liability. Reflects the changes in fair value associated with the periodic “mark to market” valuation of certain warrants that were issued in 2014. On May 14, 2020, we issued an aggregate of 2,747,970 shares of Company common stock upon cashless exercise of an aggregate of 3,871,405 warrants, reducing our warrant liability by $33.1 million, which represents the fair value of the warrants at the time or exercise. Due to the increase in our stock price during the three months ended June 30, 2020 from March 31, 2020, the fair value of the warrant liability had increased at the time of the cashless warrant exercise compared to our fair value warrant liability at March 31, 2020. A non-cash loss of $16.4 million was recorded in Other income (expenses) due to the change in fair value of our warrant liability. During the six months ended June 30, 2020 from December 31, 2019, we had a lower warrant liability and a corresponding, non-cash gain of $5.5 million due to the cashless exercises and change in fair value of our warrant liability.

Interest income (expense), net. We earn interest on cash held in our money market account. We had a lower weighted average cash balance in our money market account for the three and six months ended June 30, 2020 compared to 2019. Interest expense is related to equipment financing.

Loss on equity method investment. The non-cash loss associated with our proportionate share of the net loss in our investment in SAVSU prior to our acquisition of the remaining shares of SAVSU and subsequent consolidation of SAVSU in our financial statements.

Liquidity and Capital Resources

On June 30, 2020 and December 31, 2019, we had $29.9 million and $6.4 million in cash and cash equivalents, respectfully. We acquired Astero on April 1, 2019 for $12.5 million in cash and contingent consideration of up to $8.5 million. We paid $483,000 for the earnout related to 2019 revenues of Astero in the second quarter of 2020. On August 8, 2019, we acquired the remaining shares of SAVSU which we did not own for 1,100,000 shares of common stock. On November 12, 2019, we acquired CBS for $11.0 million in cash, $4.0 million in shares of our common stock, and up to $15.0 million in contingent consideration payable in cash or stock (which payment requirement has not been triggered or otherwise paid to date).

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On May 22, 2020, the Company closed on a share purchase agreement with Casdin Capital LLC, a current stockholder of the Company, pursuant to which Casdin invested $20 million in the Company. On July 7, we closed our public offering of 5,951,250 shares of common stock at the public offering price of $14.50 per share, which includes the shares purchased pursuant to the exercise in full of the underwriters' option to purchase up to an additional 776,250 shares of its common stock. The net proceeds from the offering to BioLife, after deducting underwriting discounts and commissions and estimated offering expenses, were approximately $81 million. Based on our current expectations with respect to our future revenue and expenses, we believe that our current level of cash and cash equivalents including proceeds from the Casdin investment, will be sufficient to meet our liquidity needs for at least the next 12 months. However, if our revenues do not grow as expected, including as a result of the COVID-19 pandemic, and if we are not able to manage expenses sufficiently, we may be required to obtain additional equity or debt financing. Further, the Company may choose to raise additional capital through a debt or equity financing in an attempt to mitigate the heightened level of business uncertainty caused by the COVID-19 pandemic, or in order to pursue additional acquisition or strategic investment opportunities. Additional capital, if required, may not be available on reasonable terms, if at all. 

Cash Flows

	Six Months Ended June 30,
(In thousands)	2020			2019			$ Change
Operating activities	$	4,890		$	1,079		$	3,328
Investing activities		(1,683	)		(12,705	)		11,022
Financing activities		20,224			586			20,121
Net increase (decrease) in cash and cash equivalents	$	23,431		$	(11,040	)	$	34,471

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Net Cash Provided by Operating Activities

During the six months ended June 30, 2020, net cash provided by operating activities was $4.9 million compared to $1.1 million for the six months ended June 30, 2019. The increase in cash provided by operating activities was the result of timing of collections from our increased revenue, partially offset by increased expenses from our 2019 acquisitions.

Net Cash Used In Investing Activities

Net cash used by investing activities totaled $1.7 million during the six months ended June 30, 2020 compared to $12.7 million for the six months ended June 30, 2019. Cash used in investing activities in the six months ended June 30, 2020 was primarily from the purchasing of assets held for rent for SAVSU. In the six months ended June 30, 2019, we used $12.4 million to purchase Astero. Both period investing activities included similar amounts of purchases of property and equipment.

Net Cash Provided by Financing Activities

Net cash provided by financing activities totaled $20.2 million during the six months ended June 30, 2020, compared to $586,000 during the six months ended June 30, 2019. Net cash provided by financing activities in the six months ended June 30, 2020 was primarily the result of our $20 million sale of common stock to Casdin Capital, partially offset by $483,000 of contingent consideration paid for the Astero acquisition. Both the 2020 and 2019 periods included proceeds received from stock option exercises and warrant exercises.

Off-Balance Sheet Arrangements

As of June 30, 2020, we did not have any off-balance sheet arrangements. 

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, 2019, as filed with the SEC. There have been no significant changes to these obligations in the three and six months ended June 30, 2020.

Item 3. Quantitative and Qualitative Disclosures about Market Risk    

Not applicable.

Item 4. Controls and Procedures    

Evaluation of Disclosure Controls and Procedures. Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Form 10-Q. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures as of the end of the period covered by this Form 10-Q were not effective due to the existence of a material weakness in our internal controls over complex equity transactions because we have insufficient technical resources to appropriately analyze and account for complex financial instruments, specifically with regard to our prior interpretation of ASC 480, “Distinguishing Liabilities from Equity”, as it related to the initial classification and subsequent accounting of certain of our outstanding warrants as equity instruments dating back to March 2014, and ASC 718, “Stock Compensation” as it related to the accounting for stock awards with market-based vesting conditions. Errors in the accounting for these transactions resulted in the restatement of previously issued financial statements.

Changes in Internal Control Over Financial Reporting. There was no change in our internal control over financial reporting that occurred during the quarter ended June 30, 2020 that has materially affected, or is 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 will prevent all error 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 BioLife Solutions have been detected.

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PART II: Other Information

Item 1. LEGAL PROCEEDINGS

From time to time, we are or may become subject to legal proceedings and claims in the ordinary course of business. We are not currently aware of any such proceedings or claims that we believe will have, individually or in the aggregate, a material adverse effect on our business, financial condition or results of operations.

Item 1A. RISK FACTORS

The matters discussed in this Quarterly Report on Form 10-Q include forward-looking statements that involve risks or uncertainties. These statements are neither promises nor guarantees, but are based on various assumptions by management regarding future circumstances, over many of which BioLife has little or no control. A number of important risks and uncertainties, including those identified under the caption “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the period ended December 31, 2019 and in subsequent filings, could cause our actual results to differ materially from those in the forward-looking statements. Other than the risk factor below, there are no material changes to the risk factors described in our Annual Report on Form 10-K for the period ended December 31, 2019.

A pandemic, epidemic or outbreak of an infectious disease in the United States or worldwide, including the outbreak of the novel strain of coronavirus disease, COVID-19, could adversely affect our business.

If a pandemic, epidemic or outbreak of an infectious disease occurs in the United States or worldwide, our business may be adversely affected. In December 2019, a novel strain of coronavirus, SARS-CoV-2, was identified in Wuhan, China. Since then, SARS-CoV-2, and the resulting disease, COVID-19, has spread to most countries and all 50 states within the United States. The COVID-19 pandemic has safety concerns.

Numerous state and local jurisdictions have imposed, and others in the future may impose, “shelter-in-place” orders, quarantines, executive orders and similar government orders and restrictions for their residents to control the spread of COVID-19. Such orders or restrictions have resulted in reduced operations at our facilities, modified operations at our manufacturing facility, work slowdowns and delays, travel restrictions and cancellation of events, among other effects, thereby significantly and negatively impacting our operations. Other disruptions or potential disruptions include restrictions on the ability of our sales representatives and other personnel to travel and access customers; inability of our suppliers to manufacture components and parts and to deliver these to us on a timely basis, or at all; disruptions in our production schedule and ability to manufacture and assemble products; inventory shortages or obsolescence; delays in actions of regulatory bodies; delays in clinical trials; diversion of or limitations on employee resources that would otherwise be focused on the operations of our business, including because of sickness of employees or their families or the desire of employees to avoid contact with groups of people; delays in growing or reductions in our sales organization, including through delays in hiring, lay-offs, furloughs or other losses of sales representatives or salary and compensation reductions; restrictions in our ability to ship our products to customers; business adjustments or disruptions of certain third parties, including suppliers, medical institutions and clinical investigators with whom we conduct business; increase in bad debts due to an adverse impact of the pandemic on our clients’ cash flows and resulting decrease in collectability of our account receivables; and additional government requirements or other incremental mitigation efforts that may further impact our or our suppliers’ capacity to manufacture and sell our products. The extent to which the COVID-19 pandemic impacts our business will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity and spread of COVID-19 and the actions to contain COVID-19 or treat its impact, among others.

While the potential economic impact brought by and the duration of any pandemic, epidemic or outbreak of an infectious disease, including COVID-19, may be difficult to assess or predict, the widespread COVID-19 pandemic has resulted in, and may continue to result in, significant disruption of global financial markets, reducing our ability to access capital, which could in the future negatively affect our liquidity. In addition, a recession or market correction resulting from the spread of an infectious disease, including COVID-19, could materially affect our business. To the extent the COVID-19 pandemic adversely affects our business and financial results, it may also have the effect of heightening many of the other risks described in the “Risk Factors” section of our Annual Report filed with the SEC on Form 10-K for the fiscal year ended December 31, 2019.

We are and may become the subject of various claims, litigation or investigations which could have a material adverse effect on our business, financial condition, results of operations or price of our common stock.

We are and may become subject to various claims (including “whistleblower” complaints), litigation or investigations, including commercial disputes and employee claims, and from time to time may be involved in governmental or regulatory investigations or similar matters. Any claims asserted against us or our management, regardless of merit or eventual outcome, could harm our reputation and have an adverse impact on our relationship with our clients, distribution partners and other third parties and could lead to additional related claims. Furthermore, there is no guarantee that we will be successful in defending ourselves in pending or future litigation or similar matters under various laws. Any judgments or settlements in any pending litigation or future claims, litigation or investigation could have a material adverse effect on our business, financial condition, results of operations and price of our common stock.

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

Item 3. DEFAULTS UPON SENIOR SECURITIES

None.

Item 4. MINE SAFETY DISCLOSURES

None.

Item 5. OTHER INFORMATION

None.

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Item 6. 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	Inline XBRL Instance Document (the Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

37

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 10, 2020	/s/ Roderick de Greef
	Roderick de Greef
	Chief Financial Officer and Chief Operating Officer
	(Duly authorized officer and principal financial and accounting officer)

38

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 10, 2020

/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 10, 2020

/s/ Roderick de Greef

Roderick de Greef

Chief Financial Officer and Chief Operating 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 period ending June 30, 2020, 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 10, 2020

/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 period ending June 30, 2020, 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 10, 2020

/s/ Roderick de Greef

Roderick de Greef

Chief Financial and Chief Operating Officer

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Aug. 05, 2020
Document Information [Line Items]
Entity Central Index Key	0000834365
Entity Registrant Name	BIOLIFE SOLUTIONS INC
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	001-36362
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	94-3076866
Entity Address, Address Line One	3303 Monte Villa Parkway, Suite 310
Entity Address, City or Town	Bothell
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98021
City Area Code	425
Local Phone Number	402-1400
Title of 12(b) Security	BioLife Solutions, Inc. Common Shares
Trading Symbol	BLFS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		32,001,581

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	$ 29,879	$ 6,448
Accounts receivable, trade, net	4,351	5,345
Inventories	10,890	10,972
Prepaid expenses and other current assets	1,134	1,348
Total current assets	46,254	24,113
Assets held for rent, net	4,958	3,922
Property and equipment, net	5,347	5,572
Operating lease right-of-use assets, net	740	1,040
Long-term deposits and other assets	36	50
Investments	2,500	2,500
Accrued interest receivable	41
Intangible assets, net	20,588	21,982
Goodwill	33,506	33,637
Total assets	113,970	92,816
Current liabilities
Accounts payable	3,077	3,119
Accrued expenses and other current liabilities	2,606	3,369
Lease liabilities, operating, current portion	844	804
Contingent consideration, current portion		377
Warrant liability, current portion	963
Total current liabilities	7,490	7,669
Warrant liability, long-term		39,602
Contingent consideration, long-term	388	1,537
Lease liabilities, operating, long-term	116	550
Other long-term liabilities	133	4
Total liabilities	8,127	49,362
Commitments and Contingencies (Note 11)
Shareholders’ equity
Preferred stock, $0.001 par value; 1,000,000 shares authorized, Series A, 4,250 shares designated, and 0 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively		0
Common stock, $0.001 par value; 150,000,000 shares authorized, 25,982,367 and 20,825,452 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively	26	21
Additional paid-in capital	199,941	143,485
Accumulated deficit	(94,124)	(100,052)
Total shareholders’ equity	105,843	43,454
Total liabilities and shareholders’ equity	$ 113,970	$ 92,816

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
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)	25,982,367	20,825,452
Common stock, outstanding (in shares)	25,982,367	20,825,452
Series A Preferred Stock [Member]
Preferred stock, shares designated (in shares)	4,250	4,250
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue	$ 9,920,000	$ 6,701,000	$ 22,082,000	$ 12,471,000
Operating expenses
Cost of product and rental revenue (exclusive of intangible assets amortization)	4,499,000	1,968,000	9,067,000	3,616,000
Research and development	1,477,000	691,000	3,140,000	1,050,000
Sales and marketing	1,366,000	945,000	2,942,000	1,782,000
General and administrative	3,278,000	2,207,000	6,413,000	4,359,000
Intangible assets amortization	706,000	104,000	1,394,000	104,000
Acquisition costs	13,000	39,000	238,000	247,000
Change in fair value of contingent consideration	(1,463,000)		(1,526,000)	0
Total operating expenses	9,876,000	5,954,000	21,668,000	11,158,000
Operating income	44,000	747,000	414,000	1,313,000
Other income (expense)
Change in fair value of warrant liability	(16,442,000)	3,586,000	5,472,000	(16,077,000)
Interest income	18,000	137,000	47,000	307,000
Interest expense		(1,000)	(1,000)	(4,000)
Other expense			(4,000)
Loss from equity method investment in SAVSU		(217,000)	(0)	(448,000)
Total other income (expenses)	(16,424,000)	3,505,000	5,514,000	(16,222,000)
Net income (loss) before provision for income taxes	(16,380,000)	4,252,000	5,928,000	(14,909,000)
Income tax (benefit)
Net income (loss)	(16,380,000)	4,252,000	5,928,000	(14,909,000)
Net income attributable to common stockholders:
Basic	(16,380,000)	3,425,000	5,093,000	(14,909,000)
Diluted	$ (16,380,000)	$ 545,000	$ 350,000	$ (14,909,000)
Earnings per share attributable to common stockholders
Basic (in dollars per share)	$ (0.70)	$ 0.18	$ 0.23	$ (0.80)
Diluted (in dollars per share)	$ (0.70)	$ 0.02	$ 0.01	$ (0.80)
Weighted average shares used to compute earnings per share attributable to common stockholders:
Basic (in shares)	23,292,635	18,819,459	22,151,726	18,734,401
Diluted (in shares)	23,292,635	24,539,299	27,013,580	18,734,401
Product [Member]
Revenue	$ 9,489,000	$ 6,701,000	$ 21,216,000	$ 12,471,000
Rental Revenue [Member]
Revenue	$ 431,000		$ 866,000

XML

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Preferred Stock [Member] Series A Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Dec. 31, 2018	0	18,547,406
Balance at Dec. 31, 2018	$ 0	$ 19	$ 113,008	$ (98,395)	$ 14,632
Stock-based compensation	$ 0	$ 0	1,349	0	1,349
Stock option exercises (in shares)	0	236,061
Stock option exercises	$ 0	$ 0	462	0	462
Warrant exercises (in shares)		29,000
Warrant exercises		$ 0	538	0	538
Stock issued – on vested RSUs (in shares)	0	86,142
Stock issued – on vested RSUs	$ 0	$ 0	0	0	0
Net income	$ 0	$ 0	0	(14,909)	(14,909)
Balance (in shares) at Jun. 30, 2019	0	18,898,609
Balance at Jun. 30, 2019	$ 0	$ 19	115,357	(113,304)	2,072
Balance (in shares) at Mar. 31, 2019	0	18,717,095
Balance at Mar. 31, 2019	$ 0	$ 19	113,797	(117,556)	(3,740)
Stock-based compensation	$ 0	$ 0	818	0	818
Stock option exercises (in shares)	0	136,364
Stock option exercises	$ 0	$ 0	301	0	301
Warrant exercises (in shares)		24,000
Warrant exercises		$ 0	441	0	441
Stock issued – on vested RSUs (in shares)	0	21,150
Stock issued – on vested RSUs	$ 0	$ 0	0	0	0
Net income	$ 0	$ 0	0	4,252	4,252
Balance (in shares) at Jun. 30, 2019	0	18,898,609
Balance at Jun. 30, 2019	$ 0	$ 19	115,357	(113,304)	2,072
Balance (in shares) at Dec. 31, 2019	0	20,825,452
Balance at Dec. 31, 2019	$ 0	$ 21	143,485	(100,052)	43,454
Stock issued as 2019 bonus payout	$ 0	$ 0	314	0	314
Sale of common stock, net of fees (in shares)	0	1,904,762
Sale of common stock, net of fees	$ 0	$ 2	19,912	0	19,914
Stock-based compensation	$ 0	$ 0	2,258	0	2,258
Stock option exercises (in shares)	0	410,793
Stock option exercises	$ 0	$ 0	783	0	783
Cashless exercises of 3,871,405 warrants (in shares)	0	2,747,970
Cashless exercises of warrants	$ 0	$ 3	33,108	0	33,111
Warrant exercises (in shares)		5,000
Warrant exercises		$ 0	81	0	81
Stock issued – on vested RSUs (in shares)	0	88,390
Stock issued – on vested RSUs	$ 0	$ 0	0	0	0
Net income	$ 0	$ 0	0	5,928	5,928
Balance (in shares) at Jun. 30, 2020	0	25,982,367
Balance at Jun. 30, 2020	$ 0	$ 26	199,941	(94,124)	105,843
Balance (in shares) at Mar. 31, 2020	0	21,148,771
Balance at Mar. 31, 2020	$ 0	$ 21	145,432	(77,744)	67,709
Sale of common stock, net of fees (in shares)	0	1,904,762
Sale of common stock, net of fees	$ 0	$ 2	19,912	0	19,914
Stock-based compensation	$ 0	$ 0	1,145	0	1,145
Stock option exercises (in shares)	0	142,500
Stock option exercises	$ 0	$ 0	293	0	293
Cashless exercises of 3,871,405 warrants (in shares)	0	2,747,970
Cashless exercises of warrants	$ 0	$ 3	33,108	0	33,111
Warrant exercises (in shares)		3,000
Warrant exercises		$ 0	51	0	51
Stock issued – on vested RSUs (in shares)	0	35,364
Stock issued – on vested RSUs	$ 0	$ 0	0	0	0
Net income	$ 0	$ 0	0	(16,380)	(16,380)
Balance (in shares) at Jun. 30, 2020	0	25,982,367
Balance at Jun. 30, 2020	$ 0	$ 26	$ 199,941	$ (94,124)	$ 105,843

XML

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parentheticals) - shares		3 Months Ended	6 Months Ended
	May 14, 2020	Jun. 30, 2020	Jun. 30, 2020
WAVI Holding AG and Taurus4757 GmbH Warrants [Member]
Cashless warrant exercises (in shares)	3,871,405	3,871,405	3,871,405
Cashless warrant exercises (in shares)			3,876,405

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities
Net income (loss)	$ 5,928,000	$ (14,909,000)
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation	973,000	209,000
Amortization of intangible assets	1,394,000	104,000
Non cash lease expense	300,000	241,000
Stock-based compensation	2,258,000	1,349,000
Loss from equity method investment in SAVSU	0	448,000
Change in fair value of contingent consideration	(1,526,000)	0
Change in fair value of warrant liability	(5,472,000)	16,077,000
Other	0	2,000
Change in operating assets and liabilities
Accounts receivable, trade, net	924,000	(632,000)
Inventories	82,000	(1,341,000)
Prepaid expenses and other current assets	256,000	(32,000)
Accounts payable	63,000	(36,000)
Accrued compensation and other current liabilities	177,000	(348,000)
Other	(467,000)	(53,000)
Net cash provided by operating activities	4,890,000	1,079,000
Cash flows from investing activities
Payments related to the Astero Bio Acquisition, net of cash acquired	0	(12,439,000)
Purchase of property and equipment	(251,000)	(266,000)
Purchase of assets held for rent, net	(1,432,000)	0
Net cash used in investing activities	(1,683,000)	(12,705,000)
Cash flows from financing activities
Proceeds from PPP Loan	2,175,000	0
Payoff of PPP Loan	(2,175,000)	0
Payments of contingent consideration	(483,000)	0
Proceeds from sale of common stock, net of fees	19,914,000	0
Proceeds from exercise of common stock options	783,000	462,000
Proceeds from exercise of warrants	24,000	138,000
Other	(14,000)	(14,000)
Net cash provided by financing activities	20,224,000	586,000
Net increase (decrease) in cash and cash equivalents	23,431,000	(11,040,000)
Cash and cash equivalents - beginning of period	6,448,000	30,657,000
Cash and cash equivalents - end of period	29,879,000	19,617,000
Non-cash investing and financing activities
Cashless exercise of warrants reclassed from warrant liability to common stock	33,111,000	0
Reclassification of warrant liability to equity upon exercise	57,000	400,000
Purchase of property & equipment not yet paid	29,000	4,000
Purchase of equipment with debt	133,000	0
Deferred financing costs not yet paid	55,000	0
Stock issued as bonus consideration	$ 314,000	$ 0

XML

Note 1 - Organization and Significant Accounting Policies

6 Months Ended

Jun. 30, 2020

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 leading developer, manufacturer and supplier of a portfolio of bioproduction tools including proprietary biopreservation media, automated thawing devices, cloud-connected shipping containers, and freezer technology for cell and gene therapies. Our CryoStor® freeze media and HypoThermosol® hypothermic storage are optimized to preserve cells in the regenerative medicine market. These novel biopreservation media products are serum-free and protein-free, fully defined, and are formulated to reduce preservation-induced cell damage and death; offering commercial companies and clinical researchers significant improvement in shelf life and post-preservation viability and function. Our ThawSTAR® product line is comprised of a family of automated thawing devices for frozen cell and gene therapies packaged in cryovials and cryobags. These products improve the quality of administration of high-value, temperature-sensitive biologic therapies to patients by standardizing the thawing process and reducing the risks of contamination and overheating which are inherent with the use of traditional water baths. Our evo shipping containers are innovative high-performance cloud-connected passive storage and transport containers for temperature-sensitive biologics and pharmaceuticals. Our cryogenic freezer technology provides for controlled rate freezing and storage of biologic materials.

Basis of Presentation

The condensed consolidated financial statements included herein have been prepared by BioLife Solutions, Inc. in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for Quarterly Reports on Form 10-Q and Article 10 of Regulation S-X and do not include all of the information and footnote disclosures required by GAAP. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Astero Bio Corporation (“Astero,” and the Astero product line, “ThawStar” acquired on April 1, 2019), SAVSU Technologies, Inc. (“SAVSU” and the product line “evo” acquired on August 8, 2019), and Arctic Solutions, Inc. dba Custom Biogenic Systems (“CBS” and the freezer and accessory product lines acquired on November 12, 2019). All significant intercompany accounts and transactions have been eliminated in consolidation.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal, recurring adjustments necessary for a fair presentation of the financial position, results of operations, and cash flows. The results of operations for the interim periods presented are not necessarily indicative of results to be expected for the entire year.

Financial Statement Reclassification

Certain classifications on the Condensed Consolidated Statements of Cash Flows related to non cash lease expense and accrued expenses and other current liabilities for the three and six months ended June 30, 2019 were reclassified to conform to current period presentation. These reclassifications have no impact on previously reported total revenue, net income (loss), net assets, or total operating cash flows.

Significant Accounting Policies

There have been no significant changes to the accounting policies during the six months ended June 30, 2020, as compared to the significant accounting policies described in our Annual Report on Form 10-K.

Liquidity and Capital Resources

On June 30, 2020 and December 31, 2019, we had $29.9 million and $6.4 million in cash and cash equivalents, respectively. We acquired Astero on April 1, 2019 for $12.5 million in cash and contingent consideration of up to $8.5 million. We paid $483,000 of contingent consideration related to 2019 revenues of Astero in the second quarter of 2020. On November 12, 2019, we acquired CBS for $11.0 million in cash, $4.0 million in shares of our common stock, and up to $15.0 million in contingent consideration payable in cash or stock (which payment requirement has not been triggered or otherwise paid to date). 

On May 22, 2020, the Company closed on a share purchase agreement with Casdin Capital LLC, a current stockholder of the Company (“Casdin”), pursuant to which Casdin invested $20 million in the Company at $10.50 per share. On July 7, 2020, the Company closed its public offering of 5,951,250 shares of common stock at the public offering price of $14.50 per share, which includes the shares purchased pursuant to the exercise in full of the underwriters' option to purchase up to an additional 776,250 shares of its common stock. The net proceeds from the offering to BioLife, after deducting underwriting discounts and commissions and estimated offering expenses, were approximately $81 million.

Based on our current expectations with respect to our future revenue and expenses, we believe that our current level of cash and cash equivalents including proceeds from the public offering, will be sufficient to meet our liquidity needs for at least the next 12 months. However, if our revenues do not grow as expected, including as a result of the COVID-19 pandemic, and if we are not able to manage expenses sufficiently, we may be required to obtain additional equity or debt financing. Further, the Company may choose to raise additional capital through a debt or equity financing in an attempt to mitigate the heightened level of business uncertainty caused by the COVID-19 pandemic, or in order to pursue additional acquisition or strategic investment opportunities. Additional capital, if required, may not be available on reasonable terms, if at all. 

Risks and Uncertainties

COVID-19 Pandemic

On March 10, 2020, the World Health Organization declared the outbreak of the novel strain of coronavirus, SARS-CoV-2, which causes coronavirus disease 2019 (“COVID-19”) a pandemic. The COVID-19 pandemic, and the resulting restrictions intended to slow the spread of COVID-19, including stay-at-home orders, business shutdowns and other restrictions, has affected the Company’s business in several ways. In the last two weeks of March 2020, the Company received higher than average orders for its cryopreservation media products. The Company estimates that a total of between $1.5 to $2.0 million of orders for cryopreservation were shipped to customers wanting to have product on hand in the event of any potential supply disruptions. At this time, the Company is unable to determine whether the incremental cryopreservation “safety stock” orders represent a permanent inventory layer for our customers, or whether it was simply demand pull forward, which could result in lower cryopreservation orders in subsequent periods. Further, while the sales of our automated thaw and freezer product lines were not materially affected in the three months ended March 31, 2020, we believe the sales of these capital equipment products were negatively impacted in the second quarter ended June 30, 2020, due to customer facility closures resulting in delayed deliveries. We also believe that new capital equipment decisions may be delayed due to the pandemic, which would impact our automated thaw and freezer product lines, although at this time, the Company cannot estimate the financial impact.

The Company reviews capital and amortizing intangible assets (long-lived assets) for impairment on an annual basis or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company determined that the economic uncertainty caused by the COVID-19 pandemic was a trigger for an impairment review of certain long-lived assets based on the expected near term weakness in ThawStar and freezer revenue resulting from the impact of COVID-19. The Company revised the revenue projections for these two product lines to determine the impact on the fair value of the contingent consideration related to the existing earnout provisions. Based on results of the fair value analysis of the contingent consideration, the Company reduced the fair value of the combined contingent consideration liability from $1.9 million at March 31, 2020, to $388,000 at June 30, 2020.

As a result of the Company’s changed outlook for near term revenue from the ThawStar and freezer product lines, estimated undiscounted cash flow projections were developed to determine if any impairment of the related intangible assets was warranted. After conducting such review, the Company determined that there was no impairment of the remaining long-lived assets as of June 30, 2020. Given the inherent uncertainties of the COVID-19 pandemic and the estimates used in these cash flow projections, changes based on facts and circumstances in future quarters could give rise to impairment.

The Company may also experience other negative impacts of the COVID-19 outbreak such as the lack of availability of the Company’s key personnel, additional temporary closures of the Company’s office or the facilities of the Company’s business partners, customers, third party service providers or other vendors, the inability to travel to market and sell our products, and the interruption of the Company’s supply chain, distribution channels, liquidity and capital or financial markets.

Any disruption and volatility in the global capital markets as a result of the pandemic may increase the Company’s cost of capital and adversely affect the Company’s ability to access financing when and on terms that the Company desires. In addition, a recession resulting from the spread of COVID-19 could materially affect the Company’s business, especially if a recession results in higher unemployment causing potential patients to not have access to health insurance.

The ultimate extent to which the COVID-19 pandemic and its repercussions impact the Company’s business will depend on future developments, which are highly uncertain. However, the foregoing and other continued disruptions to the Company’s business as a result of COVID-19 could result in a material adverse effect on the Company’s business, results of operations, financial condition and cash flows.

On March 27, 2020, the President signed into law the “Coronavirus Aid, Relief, and Economic Security (CARES) Act.” The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations, increased limitations on qualified charitable contributions, and technical corrections to tax depreciation methods for qualified improvement property. The Company will continue to monitor the impact that the CARES Act may have on the Company’s business, financial condition, results of operations, or liquidity.

We determined that we met the original eligibility requirements per the guidelines original established by the U.S. federal government as part of the CARES Act for the Pursuant to the Paycheck Protection Program (the “PPP”). As such, on April 20, 2020, the Company received $2,175,320 in support from the PPP. Because the U.S. government subsequently changed its position and guidelines related to the PPP and publicly traded companies, the Company repaid the loan on April 29, 2020. As of March 30, 2020, the company started deferring the employer side of social security payments. We will pay back 50% of our total deferred payments in 2021 and the remaining 50% in 2022.

Concentrations of credit risk and business risk

In the three months ended June 30, 2020, we derived approximately 25% of our product revenue from two customers and in the six months ended June 30, 2020, we derived approximately 13% of our revenue from one customer. In the three months ended June 30, 2019, we derived approximately 17% of our product revenue from one customer and in the six months ended June 30, 2019, we derived approximately 20% of our revenue from one customer. No other customer accounted for more than 10% of revenue in the six months ended June 30, 2020 or 2019. In the three months ended June 30, 2020 and 2019, we derived approximately 62% and 82%, of our revenue from CryoStor products, respectively. Due to our acquisitions in 2019, we expect both our revenue concentration related to CryoStor and our customer concentrations to be reduced for the year ended December 31, 2020. At June 30, 2020, two customers accounted for approximately 22% of total gross accounts receivable. At December 31, 2019, two customers accounted for approximately 25% of total gross accounts receivable. 

The following table represents the Company’s total revenue by geographic area (based on the location of the customer):

	Three Months Ended June 30,						Six Months Ended June 30,
Revenue by customers’ geographic locations	2020			2019			2020			2019
United States		70	%		71	%		73	%		66	%
Canada		18	%		17	%		14	%		20	%
Europe, Middle East, Africa (EMEA)		10	%		11	%		11	%		12	%
Other		2	%		1	%		2	%		2	%
Total revenue		100	%		100	%		100	%		100	%

Recent accounting pronouncements 

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 includes amendments that aim to improve the effectiveness of fair value measurement disclosures. The amendments in this guidance modify the disclosure requirements on fair value measurements based on the concepts in FASB Concepts Statement, “Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements,” including the consideration of costs and benefits. The amendments become effective for the Company in the year ending December 31, 2020 and early adoption is permitted. The Company adopted this guidance January 1, 2020 and there was no material impact on its consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes.” ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, including, but not limited to, the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items, the exceptions related to the recognition of a deferred tax liability related to an equity method investment and the exception to methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. ASU 2019-12 becomes effective for the Company in the year ended December 31, 2021, including interim periods. Due to the full valuation allowance on the Company’s net deferred tax assets, the Company is currently expecting no material impact from the adoption of ASU 2019-12 on its consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For Smaller Reporting Companies as defined by the SEC, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is evaluating the impact of the guidance on its financial statements. 

In August 2018, the FASB issued ASU No. 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”, which clarifies the accounting for implementation costs in cloud computing arrangements. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted this guidance January 1, 2020 and there was no material impact on its consolidated financial statements.

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Note 2 - Fair Value Measurement

6 Months Ended

Jun. 30, 2020

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 investments at fair value on a recurring basis. The Company also measures certain assets and liabilities at fair value on a non-recurring basis when applying acquisition accounting. 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.

The availability of observable inputs can vary among the various types of financial assets and liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for financial statement disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is categorized is based on the lowest level input that is significant to the overall fair value measurement.

As of June 30, 2020 and December 31, 2019, the Company valued the Astero and CBS contingent consideration, investment in convertible debt, and warrant liability at fair value, which require Level 3 inputs

For the Astero and CBS contingent consideration, the significant Level 3 inputs are the future projected revenue and revenue volatility from the acquired businesses. The company used best estimates in developing revenue forecasts.

For the investment in convertible debt, the significant Level 3 inputs are the expected term of the instrument, the underlying credit worthiness of the issuer and the valuation of various embedded features in the note, which are based on future financings of the issuer. The expected term the range of our estimate is 3 to 5 years, with equal weighting over this term. There is currently no quantitative information concerning the creditworthiness of the issuer.

For the warrant liability, the significant Level 3 inputs include the estimated term of the warrants and the volatility of the Company’s common stock. For the estimated term of the warrants, we used the actual terms of the warrants, which are all currently less than one year.  For the volatility off the Company’s stock we used historical volatility for the remaining term of each warrant.  These amounts ranged from 73.9% to 77.7%. We did not make any adjustments to the historical volatility.

There were no remeasurements to fair value during the six months ended June 30, 2020 of financial assets and liabilities that are not measured at fair value on a recurring basis.

The following tables set forth the Company’s financial assets measured at fair value on a recurring basis as of  June 30, 2020 and  December 31, 2019, based on the three-tier fair value hierarchy:

(In thousands)

As of June 30, 2020	Level 1		Level 2		Level 3		Total
Assets:
Money market accounts	$	29,879	$	—	$	—	$	29,879
Convertible debt held at fair value		—		—		1,000		1,000
Total		29,879		—		1,000		30,879
Liabilities:
Contingent consideration - business combinations		—		—		387		387
Warrant liability		—		—		963		963
Total	$	—	$	—	$	1,350	$	1,350

As of December 31, 2019	Level 1		Level 2		Level 3		Total
Assets:
Money market accounts	$	6,448	$	—	$	—	$	6,448
Convertible debt held at fair value		—		—		1,000		1,000
Total		6,448		—		1,000		7,448
Liabilities:
Contingent consideration - business combinations		—		—		1,914		1,914
Warrant liability		—		—		39,602		39,602
Total	$	—	$	—	$	41,516	$	41,516

The fair values of money market funds classified as Level 1 were derived from quoted market prices as active markets for these instruments exist. The fair values of investments, warrant liability and contingent consideration classified as Level 3 were derived from management assumptions. There have been no transfers of assets or liabilities between the fair value measurement levels. The following table presents the changes in investments held at fair value which are measured using Level 3 inputs:

	June 30,		December 31,
(In thousands)	2020		2019
Beginning balance	$	1,000	$	1,000
Purchases		—		—
Change in fair value recognized in net income		—		—
Total	$	1,000	$	1,000

The following table presents the changes in fair value of contingent consideration liabilities which are measured using Level 3 inputs:

	June 30,			December 31,
(In thousands)	2020			2019
Beginning balance	$	1,914		$	—
Additions		—			2,347
Change in fair value recognized in net income		(1,526	)		50
Payments earned, reclassified to accrued liabilities		—			(483	)
Total	$	388		$	1,914

The following table presents the changes in fair value of warrant liabilities which are measured using Level 3 inputs:

	June 30,			December 31,
(In thousands)	2020			2019
Beginning balance	$	39,602		$	28,516
Exercised warrants		(33,167	)		(1,749	)
Change in fair value recognized in net income		(5,472	)		12,835
Ending balance	$	963		$	39,602

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Note 3 - Acquisitions

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Business Combination Disclosure [Text Block]

3. Acquisitions 

Astero Acquisition 

On April 1, 2019, BioLife completed the acquisition of all the outstanding shares of Astero. Astero’s ThawSTAR product line is comprised of a family of automated thawing devices for frozen cell and gene therapies packaged in cryovials and cryobags. The products improve the quality of administration of high-value, temperature-sensitive biologic therapies to patients by standardizing the thawing process and reducing the risks of contamination and overheating, which are inherent with the use of traditional water baths.

In connection with the acquisition, the Company paid (i) a base payment in the amount of $12.5 million consisting of (x) an initial cash payment of $8.0 million at the closing of the transactions, subject to adjustment for working capital, net debt and transaction expenses, and (y) a deferred cash payment that was paid into escrow and subsequently paid to Astero of $4.5 million which was payable upon the earlier of Astero meeting certain product development milestones or one year after the date of the Closing and (ii) earnout payments in calendar years 2019, 2020 and 2021 of up to an aggregate of $3.5 million, which shall be payable upon Astero achieving certain specified revenue targets in each year (in the second quarter of 2020 we paid $483,000 for the earnout related to 2019 revenues) and a separate earnout payment of $5.0 million for calendar year 2021, which shall be payable upon Astero achieving a cumulative revenue target over the three-year period from 2019 to 2021.

Consideration transferred

The Astero acquisition was accounted for as a purchase of a business under FASB ASC Topic 805, “Business Combinations”. The Astero acquisition was funded through payment of approximately $12.5 million in cash and under the terms of the share purchase agreement, Astero shareholders are eligible to receive up to an additional $8.5 million of contingent consideration in cash over the next three years based on attainment of specific revenue targets. Under the acquisition method of accounting, the assets acquired and liabilities assumed from Astero were recorded as of the acquisition date, at their respective fair values, and consolidated with those of BioLife. The fair value of the contingent consideration of $1.5 million was determined using an option pricing model. The fair value of the net tangible assets acquired is estimated to be approximately $324,000, the fair value of the intangible assets acquired is estimated to be approximately $4.1 million, and the residual goodwill is estimated to be approximately $9.5 million. The fair value estimates required critical estimates, including, but not limited to, future expected cash flows, revenue and expense projections, discount rates, revenue volatility, and royalty rates. BioLife believes these estimates to be reasonable. Actual results may differ from these estimates.

Total consideration recorded for the acquisition of Astero is as follows (amounts in thousands):

Cash consideration	$	12,521
Contingent consideration		1,491
Working capital adjustment		(71	)
Total consideration transferred	$	13,941

Fair Value of Net Assets Acquired

The table below represents the purchase price allocation to the net assets acquired based on their estimated fair values (amounts in thousands). Such amounts were estimated using the most recent financial statements from Astero as of March 31, 2019.

Cash and cash equivalents	$	11
Accounts receivable, net		154
Inventory		456
Customer relationships		160
Tradenames		470
Developed technology		2,840
In-process research and development		650
Goodwill		9,515
Other assets		99
Accounts payable		(250	)
Other liabilities		(164	)
Fair value of net assets acquired	$	13,941

The fair value of Astero’s identifiable intangible assets and estimated useful lives have been estimated as follows (amounts in thousands except years):

	Estimated Fair Value		Estimated Useful Life (Years)
Customer relationships	$	160		4
Tradenames		470		9
Developed technology		2,840	5	–	9
In-process research and development		650		9
Total identifiable intangible assets	$	4,120

Fair value measurement methodologies used to calculate the value of any asset can be broadly classified into one of three approaches, referred to as the cost, market and income approaches. In any fair value measurement analysis, all three approaches must be considered, and the approach or approaches deemed most relevant will then be selected for use in the fair value measurement of that asset. The fair value of identifiable intangible assets was determined by third-party appraisal primarily using variations of the income approach, which is based on the present value of the future after-tax cash flows attributable to each identifiable intangible asset. The fair value of inventories was determined using both the cost approach and the market approach. 

Some of the more significant assumptions inherent in the development of intangible asset fair values, from the perspective of a market participant, include, but are not limited to (i) the amount and timing of projected future cash flows (including revenue and expenses), (ii) the discount rate selected to measure the risks inherent in the future cash flows, (iii) the assessment of the asset’s life cycle, and (iv) the competitive trends impacting the asset. Some of the more significant assumptions inherent in valuing the contingent consideration, include, but are not limited to (i) the amount and timing of projected future revenue, (ii) the volatility rate selected to measure the risks inherent in the revenue, and (iii) risk free interest rate.

Acquired Goodwill

The goodwill of $9.5 million represents future economic benefits expected to arise from synergies from combining operations and commercial organizations to increase market presence and the extension of existing customer relationships. All but $1.1 million of the goodwill recorded is not expected to be deductible for income tax purposes.

SAVSU Acquisition 

On August 8, 2019, we closed the acquisition of SAVSU pursuant to a Share Exchange Agreement. Pursuant to the Share Exchange Agreement, SAVSU Origin, LLC agreed to transfer to us and we agreed to acquire from the seller 8,616 shares of common stock of SAVSU, representing the remaining 56% of the outstanding shares of SAVSU that we did not previously own, in exchange for 1,100,000 shares of BioLife common stock. As a result of the acquisition, SAVSU became a wholly-owned subsidiary on August 8, 2019, the acquisition date.

Consideration transferred

The SAVSU acquisition was accounted for as a purchase of a business under FASB ASC Topic 805, “Business Combinations”. The acquisition of 56% of SAVSU was funded through a transfer of 1,100,000 shares of BioLife common stock, which had a fair value of $18.12 per share or $19.9 million at time of closing. The total value of 100% of SAVSU consisting of the fair value of the stock issued and the fair value of our existing investment in SAVSU was $35.8 million at time of closing. Prior to the acquisition, we accounted for our investment of SAVSU using the equity method of accounting which resulted in a recorded book value of $5.8 million at the acquisition date. We remeasured to fair value the equity interest in SAVSU held immediately before the business combination. The fair value of our equity interest was determined to be $15.9 million on our existing 44% ownership based on the fair value of shares transferred at the time of acquisition for the 56% we did not previously own. As a result, we recorded a non-operating gain of $10.1 million.

Under the acquisition method of accounting, the assets acquired and liabilities assumed from SAVSU were recorded as of the acquisition date, at their respective fair values, and consolidated with those of BioLife. The fair value of the net tangible assets acquired is estimated to be approximately $4.2 million, the fair value of the intangible assets acquired is estimated to be approximately $12.2 million, and the residual goodwill is estimated to be approximately $19.5 million. The fair value estimates required critical estimates, including, but not limited to, future expected cash flows, revenue and expense projections, discount rates, revenue volatility, and royalty rates. BioLife believes these estimates to be reasonable. Actual results may differ from these estimates.

Total consideration paid for the acquisition of SAVSU is as follows (amounts in thousands):

Stock consideration for 55.6% equity interest purchased $ 19,932

This stock consideration plus the fair value of our existing equity investment in SAVSU of $15.9 million results in the total purchase price for accounting purposes of $35.8 million.

Fair Value of Net Assets Acquired

The table below represents the purchase price allocation to the net assets acquired based on their estimated fair values (amounts in thousands). Such amounts were estimated using the most recent financial statements from SAVSU as of August 7, 2019.

Cash and cash equivalents	$	1,251
Accounts receivable, net		753
Prepaid expenses and other current assets		19
Property, plant and equipment, net		546
Operating right-of-use asset		233
Assets held for rent, net		2,441
Customer relationships		80
Tradenames		1,320
Developed technology		10,750
Goodwill		21,037
Accounts payable and accrued expenses		(807	)
Deferred tax liabilities		(1,541	)
Other liabilities		(232	)
Fair value of net assets acquired	$	35,850

The fair value of SAVSU’s identifiable intangible assets and estimated useful lives have been estimated as follows (amounts in thousands except years):

	Estimated Fair Value		Estimated Useful Life (Years)
Customer relationships	$	80		6
Tradenames		1,320		9
Developed technology		10,750	7	–	8
Total identifiable intangible assets	$	12,150

Fair value measurement methodologies used to calculate the value of any asset can be broadly classified into one of three approaches, referred to as the cost, market and income approaches. In any fair value measurement analysis, all three approaches must be considered, and the approach or approaches deemed most relevant will then be selected for use in the fair value measurement of that asset. The fair value of identifiable intangible assets was determined primarily using variations of the income approach, which is based on the present value of the future after-tax cash flows attributable to each identifiable intangible asset. The fair value of assets held for rent and property, plant and equipment was determined using both the cost approach and the market approach.

Some of the more significant assumptions inherent in the development of intangible asset fair values, from the perspective of a market participant, include, but are not limited to (i) the amount and timing of projected future cash flows (including revenue and expenses), (ii) the discount rate selected to measure the risks inherent in the future cash flows, (iii) the assessment of the asset’s life cycle, and (iv) the competitive trends impacting the asset. Some of the more significant assumptions inherent in the in valuing the contingent consideration, include, but are not limited to (i) the amount and timing of projected future revenue, (ii) the volatility rate selected to measure the risks inherent in the revenue, and (iii) risk free interest rate.

Acquired Goodwill

The goodwill of $21.0 million represents future economic benefits expected to arise from synergies from combining operations and commercial organizations to increase market presence and the extension of existing customer relationships. None of the goodwill recorded is expected to be deductible for income tax purposes.

Custom Biogenic Systems Acquisition 

On November 10, 2019, we entered into an Asset Purchase Agreement, by and among the Company, Arctic Solutions, Inc., a Delaware corporation and wholly-owned subsidiary of the Company, and CBS, a Michigan corporation, pursuant to which we agreed to purchase from CBS substantially all of CBS’s assets, properties and rights (the “CBS Acquisition”). CBS, a privately held company with operations located near Detroit, Michigan, designs and manufactures liquid nitrogen laboratory freezers and cryogenic equipment and also offers a related cloud-based monitoring system that continuously assesses biologic sample storage conditions and alerts equipment owners if a fault condition occurs. The CBS Acquisition closed on November 12, 2019.

In connection with the CBS Acquisition, we paid to CBS (i) a base payment in the amount of $15.0 million, consisting of a cash payment of $11.0 million paid at the closing of the CBS Acquisition, less a cash holdback escrow of $550,000 to satisfy certain indemnification claims, and an aggregate number of shares of our common stock, with an aggregate fair value equal to $4.0 million, less a holdback escrow of shares of Common Stock with an aggregate value equal to $3.0 million to satisfy potential payments related to any product liability claims outstanding as of March 13, 2019, and (ii) potential earnout payments in calendar years 2020, 2021, 2022, 2023 and 2024 of up to an aggregate of, but not exceeding, $15.0 million payable to CBS upon achieving certain specified revenue targets in each year for certain product lines.

The CBS Acquisition was accounted for as a purchase of a business under FASB ASC Topic 805, “Business Combinations”. Under the acquisition method of accounting, the acquired assets and liabilities assumed from CBS were recorded as of the acquisition date, at their fair values, and consolidated with BioLife. The fair value of the net tangible assets acquired is $6.0 million, the fair value of the identifiable intangibles is $6.8 million, and the residual goodwill is $3.1 million. The fair value estimates required critical estimates, including, but not limited to, future expected cash flows, revenue and expense projections, discount rates, revenue volatility, and royalty rates. BioLife believes these estimates to be reasonable. Actual results may differ from these estimates.

Total consideration transferred (in thousands):

Cash consideration	$	11,000
Stock consideration		4,000
Contingent consideration		856
Total consideration transferred	$	15,856

Fair Value of Net Assets Acquired

The table below represents the purchase price allocation to the net assets acquired based on their fair values (amounts in thousands). Such amounts were estimated using the most recent financial statements from CBS as of November 11, 2019.

Accounts receivable, net	$	1,044
Inventory		3,232
Prepaid expenses and other current assets		29
Property, plant and equipment, net		3,615
Customer relationships		560
Tradenames		800
Developed technology		5,430
Goodwill		2,954
Accounts payable		(1,197	)
Other liabilities		(611	)
Fair value of net assets acquired	$	15,856

The fair value of CBS’s identifiable intangible assets and weighted average useful lives have been estimated as follows (amounts in thousands except years):

	Estimated Fair Value		Estimated Useful Life (Years)
Customer relationships	$	560	6
Tradenames		800	6
Developed technology		5,430	9
Total identifiable intangible assets	$	6,790

Fair value measurement methodologies used to calculate the value of any asset can be broadly classified into one of three approaches, referred to as the cost, market and income approaches. In any fair value measurement analysis, all three approaches must be considered, and the approach or approaches deemed most relevant will then be selected for use in the fair value measurement of that asset. The fair value of identifiable intangible assets was determined primarily using variations of the income approach, which is based on the present value of the future after-tax cash flows attributable to each identifiable intangible asset. The fair value of inventories was determined using both the cost approach and the market approach and the fair value of property, plant and equipment was determined using the cost and market approach. 

Some of the more significant assumptions inherent in the development of intangible asset fair values, from the perspective of a market participant, include, but are not limited to (i) the amount and timing of projected future cash flows (including revenue and expenses), (ii) the discount rate selected to measure the risks inherent in the future cash flows, (iii) the assessment of the asset’s life cycle, and (iv) the competitive trends impacting the asset. Some of the more significant assumptions inherent in valuing the contingent consideration, include, but are not limited to (i) the amount and timing of projected future revenue, (ii) the volatility rate selected to measure the risks inherent in the revenue, and (iii) risk free interest rate.

Acquired Goodwill

The goodwill of $3.0 million represents future economic benefits expected to arise from synergies from combining operations and commercial organizations to increase market presence and the extension of existing customer relationships. All of the goodwill recorded is expected to be deductible for income tax purposes.

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Note 4 - Inventory

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Inventory Disclosure [Text Block]

4. Inventory

Inventory consists of the following at June 30, 2020 and December 31, 2019:

(In thousands)	June 30, 2020		December 31, 2019
Raw materials	$	2,679	$	2,979
Work in progress		1,678		1,896
Finished goods		6,533		6,097
Total	$	10,890	$	10,972

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Note 5 - Assets Held for Rent

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Assets Held For Rent [Text Block]

5. Assets held for rent

Assets held for rent consist of the following at June 30, 2020 and December 31, 2019:

(In thousands)	June 30, 2020			December 31, 2019
Shippers placed in service	$	4,199		$	3,073
Accumulated deprecation		(569	)		(174	)
Net		3,630			2,899
Shippers and related components in production		1,328			1,023
Total	$	4,958		$	3,922

Shippers and related components in production include shippers complete and ready to be deployed and placed in service upon a customer order, shippers in the process of being assembled, and components available to build shippers. We recognized $267,000 and $395,000 in depreciation expense related to assets held for rent during the three and six months ended June 30, 2020. We did not have any depreciation expense related to assets held for rent during the three months and six months ended June 30, 2019.

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Note 6 - Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

6. Goodwill and Intangible Assets

 Goodwill

Goodwill represents the difference between the purchase price and the estimated fair value of identifiable assets acquired and liabilities assumed. Goodwill acquired in a business combination and determined to have an indefinite useful life is not amortized, but instead is tested for impairment at least annually in accordance with ASC 350. The following table represents the change in the carrying value of goodwill for the three months ended June 30, 2020:

(In thousands)
Balance as of December 31, 2019	$	33,637
Correction of an error related to CBS goodwill		(131	)
Balance as of June 30, 2020	$	33,506

We adjusted goodwill from the CBS Acquisition related to an immaterial error of $131,000 in payables that were paid during closing and incorrectly recorded as liabilities in our purchase price accounting as of December 31, 2019. We reduced our goodwill and accounts payable by $131,000.

Intangible Assets

Intangible assets, net consisted of the following at June 30, 2020:

(In thousands, except weighted average useful life)	June 30, 2020
Finite-lived intangible assets:	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (in years)
Customer Relationships	$	800	$	(124	)	$	676		4.8
Tradenames		2,590		(289	)		2,301		7.2
Technology – acquired (1)		19,670		(2,059	)		17,611		7.6
Total intangible assets	$	23,060	$	(2,472	)	$	20,588		7.4

(1)   We transferred $650,000 out of “in-process R&D” into “Technology – acquired” on April 1, 2020, which was the date on which the product line became technologically feasible.

Intangible assets, net consisted of the following at December 31, 2019:

(In thousands, except weighted average useful life)	December 31, 2019
Finite-lived intangible assets:	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (in years)
Customer Relationships	$	800	$	(51	)	$	749		5.6
Tradenames		2,590		(123	)		2,467		8.1
Technology – acquired		19,020		(904	)		18,116		8.4
In-process R&D (2)		650		—			650		9.0
Total intangible assets	$	23,060	$	(1,078	)	$	21,982		8.3

(2)   In-process R&D represents the fair value of incomplete research and development that has not yet reached technological feasibility. On April 1, 2020, we began amortizing the asset since it reached technological feasibility (see footnote 1 above).

Amortization expense for finite-lived intangible assets was $706,000 and $1.4 million for the three and six months ended June 30, 2020, respectively and $104,000 for the three and six months ended June 30, 2019. In-process research and development was put into service in the second quarter of 2020, as such we have included the amortization in the schedule below based on an estimated life of 9 years. As of June 30, 2020, the Company expects to record the following amortization expense:

(In thousands) For the Years Ended December 31,	Estimated Amortization Expense
2020 (6 months remaining)	$	1,412
2021		2,825
2022		2,825
2023		2,795
2024		2,770
Thereafter		7,961
Total	$	20,588

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Note 7 - Share-based Compensation

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

7. Share-based Compensation 

Service Vesting-Based Stock Options

The following is a summary of service vesting-based stock option activity for the six month period ended June 30, 2020 and the status of service vesting-based options outstanding at June 30, 2020:

	Six Month Period Ended
	June 30, 2020
				Wtd. Avg.
				Exercise
	Options			Price
Outstanding at beginning of year		1,570,455		$	1.96
Granted		—		$	—
Exercised		(393,680	)	$	1.92
Forfeited		—		$	—
Expired		—		$	—
Outstanding service vesting-based at June 30, 2020		1,176,775		$	1.98
Service vesting-based options exercisable at June 30, 2020		1,148,338		$	1.94

We recognized stock compensation expense related to service vesting-based options of $28,000 and $95,000 during the three months ended June 30, 2020 and 2019, respectively, and $89,000 and $240,000 during the six months ended June 30, 2020 and June 30, 2019, respectively. As of June 30, 2020, there was $16.9 million of aggregate intrinsic value of outstanding service vesting-based stock options, including $16.5 million 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, 2020. 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, 2020 and 2019 was $1.6 million and $2.0 million, respectively, and during the six months ended June 30, 2020 and 2019 was $4.7 million and $3.5 million, respectively. There were no service based-vesting options granted during the six months ended June 30, 2020 and 2019. The weighted average remaining contractual life of service vesting-based options outstanding and exercisable at June 30, 2020 is 4.1 years. Total unrecognized compensation cost of service vesting-based stock options at June 30, 2020 of $58,000 is expected to be recognized over a weighted average period of 1.2 years.

Performance-based Stock Options

The following is a summary of performance-based stock option activity for the six month period ended June 30, 2020, and the status of performance-based options outstanding at June 30, 2020:

	Six Month Period Ended
	June 30, 2020
				Wtd. Avg.
				Exercise
	Options			Price
Outstanding at beginning of year		737,497		$	1.64
Granted		—		$	—
Exercised		(17,113	)	$	1.64
Outstanding performance-based at June 30, 2020		720,384		$	1.64
Performance-based options exercisable at June 30, 2020		720,384		$	1.64

All compensation cost of performance-based stock options outstanding was recognized as of December 31, 2018. As of June 30, 2020, there was $10.6 million of aggregate intrinsic value of outstanding and 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, 2020. 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, 2020 was none and $239,000, respectively, and in the three and six months ended June 30, 2019 was none. The weighted average remaining contractual life of performance-based options outstanding and exercisable at June 30, 2020 is 1.5 years.

There were no stock options granted to employees and non-employee directors in the three and six month periods ended June 30, 2020 and 2019.

Restricted Stock

Service vesting-based restricted stock

The following is a summary of service vesting-based restricted stock activity for the six month period ended June 30, 2020, and the status of unvested service vesting-based restricted stock outstanding at June 30, 2020:

	Six Month Period Ended
	June 30, 2020
Service vesting-based restricted stock	Number of Restricted Shares			Grant-Date Fair Value
Outstanding at beginning of year		429,399		$	13.25
Granted		235,215		$	12.03
Granted in lieu of cash		34,154		$	9.18
Vested		(88,390	)	$	11.89
Forfeited		(20,661	)	$	14.62
Outstanding at June 30, 2020		589,717		$	12.68

The aggregate fair value of the service vesting-based awards granted during the three months ended June 30, 2020 and 2019 was $1.5 million and $548,000, respectively, and during the six months ended June 30, 2020 and 2019 was $3.1 million and $3.2 million, 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 service vesting-based awards that vested during the three months ended June 30, 2020 and 2019 was $406,000 and $369,000, respectively and during the six months ended June 30, 2020 and 2019 was $1.2 million.

On March 25, 2020 our board of directors granted 34,154 restricted stock awards, based on a fair value on the grant date of $9.18 per share, in lieu of the 2019 cash performance bonus for our executive compensation plan. The award vests in full on September 25, 2020 regardless of employment status on that date. All expenses related to these awards were incurred in the year ended December 31, 2019.

We recognized stock compensation expense of $466,000 and $268,000 related to service vesting-based awards for the three months ended June 30, 2020 and 2019, respectively, and $860,000 and $522,000 related to service vesting-based awards for the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, there was $6.6 million in unrecognized compensation costs related to service vesting-based awards. We expect to recognize those costs over 3.2 years.

Performance-based restricted stock

On March 25, 2020 the Company granted 82,805 shares of performance-based stock to its executives in the form of restricted stock. The shares granted contain a performance condition based on several Company metrics related to 2020 performance. The performance-based restricted stock awards will vest as to between 0% and 125% of the number of restricted shares granted to each recipient. The grant date fair value of this award was $9.18 per share. The fair value of this award will be expensed on a straight-line basis over the requisite service period ending on December 31, 2020.

The following is a summary of performance-based restricted stock activity for the six month period ended June 30, 2020, and the status of unvested service vesting-based restricted stock outstanding at June 30, 2020:

	Six Month Period Ended
	June 30, 2020
Performance-based restricted stock	Number of Restricted Shares		Grant-Date Fair Value
Outstanding at beginning of year		—	$	—
Expected to vest		82,805	$	9.18
Vested		—	$	—
Forfeited		—	$	—
Outstanding at June 30, 2020		82,805	$	9.18

We recognized stock compensation expense of $189,000 and $378,000 related to performance-based restricted stock awards for the three and six months ended June 30, 2020, respectively. As of June 30, 2020, there was $382,000 in unrecognized non-cash compensation costs related to performance-based restricted stock awards expected to vest. We expect to recognize those costs over .5 years.

Market-based restricted stock

On February 25, 2019 the Company granted 94,247 shares and on April 1, 2019 granted 29,604 shares of market-based stock to its executives in the form of restricted stock. The shares granted contain a market condition based on Total Shareholder Return (“TSR”). The TSR market condition measures the Company’s performance against a peer group. The market-based restricted stock awards will vest as to between 0% and 200% of the number of restricted shares granted to each recipient based on our total shareholder return during the period beginning on January 1, 2019 through December 31, 2020 as compared to the total shareholder return of 20 of our peers. The fair value of this award was determined using a Monte Carlo simulation with the following assumptions: a historical volatility of 69%, 0% dividend yield and a risk-free interest rate of 2.5%. The historical volatility was based on the most recent 2-year period for the Company and correlated with the components of the peer group. The stock price projection for the Company and the components of the peer group assumes a 0% dividend yield. This is mathematically equivalent to reinvesting dividends in the issuing entity over the performance period. The risk-free interest is based on the yield on the U.S. Treasury Strips as of the Measurement Date with a maturity consistent with the 2-year term associated with the market condition of the award. The fair value of this award will be expensed on a straight-line basis over the grant date to the vesting date of December 31, 2020.

On March 25, 2020 the Company granted 109,140 shares of market-based stock to its executives in the form of restricted stock. The shares granted contain a market condition based on TSR. The TSR market condition measures the Company’s performance against a peer group. The market-based restricted stock awards will vest as to between 0% and 200% of the number of restricted shares granted to each recipient based on our total shareholder return during the period beginning on January 1, 2020 through December 31, 2021 as compared to the total shareholder return of 20 of our peers. The fair value of this award was determined using a Monte Carlo simulation with the following assumptions: a historical volatility of 78%, 0% dividend yield and a risk-free interest rate of 0.3%. The historical volatility was based on the most recent 2-year period for the Company and correlated with the components of the peer group. The stock price projection for the Company and the components of the peer group assumes a 0% dividend yield. This is mathematically equivalent to reinvesting dividends in the issuing entity over the performance period. The risk-free interest is based on the yield on the U.S. Treasury Strips as of the Measurement Date with a maturity consistent with the 2-year term associated with the market condition of the award. The fair value of this award will be expensed on a straight-line basis over the grant date to the vesting date of December 31, 2021.

We recognized stock compensation expense of $462,000 and $455,000 related to market-based restricted stock awards for the three months ended June 30, 2020 and 2019, respectively, and $931,000 and $587,000 related to market-based restricted stock awards for the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, there was $1.9 million in unrecognized non-cash compensation costs related to market-based restricted stock awards expected to vest. We expect to recognize those costs over 1 year.

Total Stock Compensation Expense

We recorded total stock compensation expense for the three and six month periods ended June 30, 2020 and 2019, as follows:

	Three Month Period Ended				Six Month Period Ended
	June 30,				June 30,
(In thousands)	2020		2019		2020		2019
Research and development costs	$	222	$	168	$	397	$	235
Sales and marketing costs		96		171		325		326
General and administrative costs		699		439		1,275		716
Cost of product sales		128		40		261		72
Total	$	1,145	$	818	$	2,258	$	1,349

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Note 8 - Warrants

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Warrants [Text Block]

8. Warrants

In March 2014, in a registered public offering and in accordance with a separate note conversion agreement with certain note holders, the Company issued warrants to purchase 6,910,283 shares of common stock at $4.75 per share. The warrants expire in March 2021.

In May 2016, in connection with a credit facility with WAVI Holding AG, a significant stockholder of the Company, the Company issued a warrant to purchase 550,000 shares of common stock at $1.75 per share. The warrant was immediately exercisable and expires in May 2021.

On May 14, 2020, the Company entered into separate warrant exercise agreements with WAVI Holding AG and Taurus4757 GmbH pursuant to which the warrant holders immediately exercised their respective warrants via a “cashless” exercise as agreed to by the Company. As a result of the cashless exercise, the Company issued an aggregate of 2,747,970 shares of Company common stock upon cashless exercise of an aggregate of 3,871,405 warrants.

Additionally, during the three and six months ended June 30, 2020, 3,000 and 5,000 warrants were exercised with a weighted average exercise price of $4.75, yielding proceeds of $14,000 and $24,000, respectively. The outstanding warrants expire in March 2021.

The following table summarizes warrant activity for the six months ended June 30, 2020:

	Shares			Wtd. Avg. Exercise Price
Outstanding at December 31, 2019		3,959,005		$	4.33
Exercised		(3,876,405	)		4.33
Outstanding at June 30, 2020		82,600		$	4.75

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Note 9 - Income Taxes

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Income Tax Disclosure [Text Block]

9. Income Taxes

The Company accounts for income taxes under ASC Topic 740 – Income Taxes. Under this standard, deferred tax assets and liabilities are recognized for future tax benefits or consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled

We have recorded a full valuation allowance against our deferred tax assets. As we continue to have multiple quarters of positive net income, we will 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 June 30, 2020. 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.

On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") into law. The Company has reviewed the aspects of this law as it relates to income taxes and have concluded that at this time, the CARES Act will have no material impact to the Company’s 2020 provision for income taxes. The Company will continue to evaluate the impact of the CARES Act on its financial position, results of operations and cash flows.

As of March 30, 2020, the company started deferring the employer side of social security payments as allowed under the CARES Act. We will pay back 50% of our total deferred payments in 2021 and the remaining 50% in 2022.

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Note 10 - Net Income (Loss) Per Common Share

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Earnings Per Share [Text Block]

10. Net Income (Loss) per Common Share                  

The Company considers its unexercised warrants and unvested restricted shares, which contain non-forfeitable rights to dividends, participating securities, and includes such participating securities in its computation of earnings per share pursuant to the two-class method. 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 shares of common stock plus the potentially dilutive effect of common equivalent shares outstanding determined under both the two class method and the treasury stock method, whichever is more dilutive. 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, 2020 and 2019, we excluded a nominal amount of unvested stock awards from our calculation of diluted weighted average shares because they were antidilutive.

The following table presents computations of basic and diluted earnings per share under the two class method:

	Three Month Period Ended					Six Month Period Ended
	June 30,					June 30,
(In thousands, except per share and share data)	2020			2019		2020		2019
Numerator:
Net income attributable to common stockholders
Basic	$	(16,380	)	$	3,425	$	5,093	$	(14,909	)
Diluted	$	(16,380	)	$	545	$	350	$	(14,909	)
Denominator:
Basic weighted average shares outstanding		23,292,635			18,819,459		22,151,726		18,734,401
Diluted weighted average shares outstanding		23,292,635			24,539,299		27,013,580		18,734,401
Basic earnings per share	$	(0.70	)	$	0.18	$	0.23	$	(0.80	)
Diluted earnings per share	$	(0.70	)	$	0.02	$	0.01	$	(0.80	)

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Note 11 - Commitments and Contingencies

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

11. Commitments & Contingencies

Employment agreements

We have employment agreements with our Chief Executive Officer, Chief Financial and Operating Officer, Chief Science Officer, Chief Quality Officer, Chief Marketing Officer, Vice President, Freezer Technologies, Vice President of Sales, Thaw Technologies, Vice President of Product Development, Thaw Technologies, and Vice President, Cold Chain Technologies 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. In addition, the agreement with the Chief Executive Officer provides for incentive bonuses at the discretion of the Board of Directors. 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. The Company’s industry is characterized by frequent claims and litigation, including claims regarding intellectual property. As a result, the Company may be subject to various legal proceedings from time to time. The results of any future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. Management is not aware of any pending or threatened litigation.

Indemnification

As permitted under Delaware law and in accordance with the Company’s bylaws, the Company is required to indemnify its officers and directors for certain errors and occurrences while the officer or director is or was serving in such capacity. The Company is also party to indemnification agreements with its directors. The Company believes the fair value of the indemnification rights and agreements is minimal. Accordingly, the Company has not recorded any liabilities for these indemnification rights and agreements as of June 30, 2020.

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Note 12 - Revenue

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

12. Revenue

We currently operate as one operating segment focusing on bioproduction tools.

We generate revenue from the sale of bioproduction products, equipment devices, and related consumables used with these equipment devices to customers in the life science and biopharmaceutical industries. Under ASC 606, “Revenue from Contracts with Customers,” revenue is recognized when, or as, obligations under the terms of a contract are satisfied, which occurs when control of the promised products or services is transferred to customers.

The Company also generates revenue from the leasing of our evo cold chain systems, which are typically cloud-connected shippers with enabling cold chain cloud applications, to customers pursuant to rental arrangements entered into with the customer. Revenue from the rental of cold chain systems is not within the scope of FASB ASC Topic 606 as it is within the scope of FASB ASC Topic 842, “Leases”. All customers leasing shippers currently do so under month-to-month rental arrangements. We account for these rental transactions as operating leases and record rental revenue on a straight-line basis over the rental term.

The following table represents revenues by product line:  

	Three Month Period Ended				Six Month Period Ended
	June 30,				June 30,
(In thousands)	2020		2019		2020		2019
Biopreservation media	$	6,667	$	6,327	$	15,339	$	12,097
Automated thawing		376		374		770		374
evo shippers		439		—		877		—
Freezers and accessories		2,438		—		5,096		—
Total	$	9,920	$	6,701	$	22,082	$	12,471

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Note 13 - Leases

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Lessee, Leases [Text Block]

13. Leases

We lease approximately 32,106 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 $63,000 at June 30, 2020, 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.

We lease approximately 1,250 square feet in our Menlo Park, California location. The term of our lease continues until July 1, 2020. In accordance with the lease agreement, the monthly base rent is approximately $5,000 at June 30, 2020. We are also required to pay an amount equal to the Company’s proportionate electrical expenses.

We lease approximately 9,932 square feet in our Albuquerque, New Mexico location. The term of our lease continues until December 31, 2021 with two options to extend the terms of the lease, each of which is for an additional period of three years, with the first extension term commencing, if at all, on December 1, 2021, and the second extension term commencing, if at all, December 1, 2024. In accordance with the lease agreement, the monthly base rent is approximately $9,000 at June 30, 2020, with a monthly increase if the term is extended.

We lease approximately 106,998 square feet in our Detroit, Michigan location. The term of our lease continues until November 30, 2020 with one option to extend the term of the lease, for an additional sixty months, with the extension term commencing, if at all, on November 12, 2020. These extension options are not accounted for under ASC Topic 842, “Leases” because we are not reasonably certain we will enter into the renewal options in their current terms and the current term is less than 12 months. With adequate notice prior to expiration of the option notice period, we have the right to purchase the premises for a purchase price that is mutually acceptable to landlord and tenant as agreed to by the parties on or before the expiration of the option notice period. In the event that the parties are unable to mutually agree on the option purchase price then each party shall obtain, at its sole cost and expense, an appraisal of the premises and the option purchase price will be the average of the two appraisals. For the avoidance of doubt, our right to elect to purchase the premises for the option purchase price will terminate upon the expiration of the option notice period, but we will not be obligated to close on the purchase of the premises prior to the expiration of the initial term. In accordance with the lease agreement, the monthly base rent is approximately $15,000 at June 30, 2020, with scheduled annual increases if the term is extended.

Operating leases recorded on our condensed consolidated balance sheet are primarily related to our Bothell, Washington headquarters space lease and our Albuquerque, New Mexico, SAVSU, space lease. We have not included extension options in our right of use assets or lease liabilities as we are not reasonably certain we will enter into the renewal options in their current terms. Our Detroit, Michigan and Menlo Park, California lease are not recorded on our condensed consolidated balance sheet as the term expires in one year or less.

Our financing lease is related to research equipment.

We used a weighted average discount rate of 6.5%, our market collateralized borrowing rate, and 8.1%, the weighted average implied interest on our leases, to determine our operating and financing lease liabilities, respectively. The weighted average remaining term of our operating and financing leases are 1.3 years and 0.7 years, respectively. We initially recognized $1.3 million in operating lease right of use assets and initially recognized $1.8 million in operating lease liabilities. Through the SAVSU acquisition we acquired $233,000 in operating lease right of use assets and acquired $232,000 in operating lease liabilities. The operating lease costs recognized in the three months ended June 30, 2020 were $229,000, which consist of $170,000 in operating lease costs and $59,000 in short-term lease costs, and we did not have any variable lease costs. The operating lease costs recognized in the six months ended June 30, 2020 were $456,000, which consist of $339,000 in operating lease costs and $117,000 in short-term lease costs, and we did not have any variable lease costs. The operating lease cash paid in the three and six months ended June 30, 2020 was $217,000 and $434,000, respectively. Rent expense for the three and six months ended June 30, 2019, was $142,000 and $186,000, respectively.

Maturities of our operating lease liabilities as of June 30, 2020 is as follows:

(In thousands)	Operating Leases			Financing Leases
2020		440			8
2021		559			2
Total lease payments		999			10
Less: interest		(39	)		(1	)
Total present value of lease liabilities	$	960		$	9

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Note 14 - Condensed Consolidated Balance Sheet Detail

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Supplemental Balance Sheet Disclosures [Text Block]

14. Condensed Consolidated Balance Sheet Detail

Property and Equipment

(In thousands)	June 30, 2020			December 31, 2019
Property and equipment
Leasehold improvements	$	2,141		$	2,112
Furniture and computer equipment		824			794
Manufacturing and other equipment		5,474			5,187
Subtotal		8,439			8,093
Less: Accumulated depreciation		(3,092	)		(2,521	)
Net property and equipment	$	5,347		$	5,572

Depreciation expense for property and equipment was $292,000 and $110,000 for the three months ended June 30, 2020 and 2019, respectively, and $578,000 and $209,000 for the six months ended June 30, 2020 and 2019, respectively.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following:

(In thousands)	June 30, 2020		December 31, 2019
Accrued expenses and other current liabilities	$	284	$	302
Other payables		206		1,018
Accrued compensation		1,813		1,554
Deferred revenue		286		324
Other		17		171
Total accrued expenses and other current liabilities	$	2,606	$	3,369

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Note 15 - Employee Benefit Plan

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Defined Contribution Plan [Text Block]

15. Employee Benefit Plan

The Company sponsors a 401(k) defined contribution plan for its employees. This plan provides for pre-tax and post-tax contributions for all employees. Employee contributions are voluntary. Employees may contribute up to 100% of their annual compensation to this plan, as limited by an annual maximum amount as determined by the Internal Revenue Service. The Company matches employee contributions in amounts to be determined at the Company’s sole discretion. The Company made $95,000 and $38,000 contributions to the plan for the three months ended June 30, 2020 and 2019, respectively, and $179,000 and $88,000 contributions to the plan for the six months ended June 30, 2020 and 2019, respectively.

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Note 16 - Subsequent Event

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Subsequent Events [Text Block]

16. Subsequent Event

Public Offering

On July 7, we closed our public offering of 5,951,250 shares of common stock at the public offering price of $14.50 per share, which includes the shares purchased pursuant to the exercise in full of the underwriters' option to purchase up to an additional 776,250 shares of its common stock. The gross proceeds from the offering to BioLife, before deducting underwriting discounts and commissions and estimated offering expenses, were approximately $86 million.

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Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2020

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The condensed consolidated financial statements included herein have been prepared by BioLife Solutions, Inc. in accordance with generally accepted accounting principles in the United States (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for Quarterly Reports on Form 10-Q and Article 10 of Regulation S-X and do not include all of the information and footnote disclosures required by GAAP. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Astero Bio Corporation (“Astero,” and the Astero product line, “ThawStar” acquired on April 1, 2019), SAVSU Technologies, Inc. (“SAVSU” and the product line “evo” acquired on August 8, 2019), and Arctic Solutions, Inc. dba Custom Biogenic Systems (“CBS” and the freezer and accessory product lines acquired on November 12, 2019). All significant intercompany accounts and transactions have been eliminated in consolidation.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal, recurring adjustments necessary for a fair presentation of the financial position, results of operations, and cash flows. The results of operations for the interim periods presented are not necessarily indicative of results to be expected for the entire year.

Financial Statement Reclassification

Certain classifications on the Condensed Consolidated Statements of Cash Flows related to non cash lease expense and accrued expenses and other current liabilities for the three and six months ended June 30, 2019 were reclassified to conform to current period presentation. These reclassifications have no impact on previously reported total revenue, net income (loss), net assets, or total operating cash flows.

Significant Accounting Policies

There have been no significant changes to the accounting policies during the six months ended June 30, 2020, as compared to the significant accounting policies described in our Annual Report on Form 10-K.

Liquidity and Capital Resources, Policy [Policy Text Block]

Liquidity and Capital Resources

On June 30, 2020 and December 31, 2019, we had $29.9 million and $6.4 million in cash and cash equivalents, respectively. We acquired Astero on April 1, 2019 for $12.5 million in cash and contingent consideration of up to $8.5 million. We paid $483,000 of contingent consideration related to 2019 revenues of Astero in the second quarter of 2020. On November 12, 2019, we acquired CBS for $11.0 million in cash, $4.0 million in shares of our common stock, and up to $15.0 million in contingent consideration payable in cash or stock (which payment requirement has not been triggered or otherwise paid to date). 

On May 22, 2020, the Company closed on a share purchase agreement with Casdin Capital LLC, a current stockholder of the Company (“Casdin”), pursuant to which Casdin invested $20 million in the Company at $10.50 per share. On July 7, 2020, the Company closed its public offering of 5,951,250 shares of common stock at the public offering price of $14.50 per share, which includes the shares purchased pursuant to the exercise in full of the underwriters' option to purchase up to an additional 776,250 shares of its common stock. The net proceeds from the offering to BioLife, after deducting underwriting discounts and commissions and estimated offering expenses, were approximately $81 million.

Based on our current expectations with respect to our future revenue and expenses, we believe that our current level of cash and cash equivalents including proceeds from the public offering, will be sufficient to meet our liquidity needs for at least the next 12 months. However, if our revenues do not grow as expected, including as a result of the COVID-19 pandemic, and if we are not able to manage expenses sufficiently, we may be required to obtain additional equity or debt financing. Further, the Company may choose to raise additional capital through a debt or equity financing in an attempt to mitigate the heightened level of business uncertainty caused by the COVID-19 pandemic, or in order to pursue additional acquisition or strategic investment opportunities. Additional capital, if required, may not be available on reasonable terms, if at all. 

Risk and Uncertainties, Policy [Policy Text Block]

Risks and Uncertainties

COVID-19 Pandemic

On March 10, 2020, the World Health Organization declared the outbreak of the novel strain of coronavirus, SARS-CoV-2, which causes coronavirus disease 2019 (“COVID-19”) a pandemic. The COVID-19 pandemic, and the resulting restrictions intended to slow the spread of COVID-19, including stay-at-home orders, business shutdowns and other restrictions, has affected the Company’s business in several ways. In the last two weeks of March 2020, the Company received higher than average orders for its cryopreservation media products. The Company estimates that a total of between $1.5 to $2.0 million of orders for cryopreservation were shipped to customers wanting to have product on hand in the event of any potential supply disruptions. At this time, the Company is unable to determine whether the incremental cryopreservation “safety stock” orders represent a permanent inventory layer for our customers, or whether it was simply demand pull forward, which could result in lower cryopreservation orders in subsequent periods. Further, while the sales of our automated thaw and freezer product lines were not materially affected in the three months ended March 31, 2020, we believe the sales of these capital equipment products were negatively impacted in the second quarter ended June 30, 2020, due to customer facility closures resulting in delayed deliveries. We also believe that new capital equipment decisions may be delayed due to the pandemic, which would impact our automated thaw and freezer product lines, although at this time, the Company cannot estimate the financial impact.

The Company reviews capital and amortizing intangible assets (long-lived assets) for impairment on an annual basis or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company determined that the economic uncertainty caused by the COVID-19 pandemic was a trigger for an impairment review of certain long-lived assets based on the expected near term weakness in ThawStar and freezer revenue resulting from the impact of COVID-19. The Company revised the revenue projections for these two product lines to determine the impact on the fair value of the contingent consideration related to the existing earnout provisions. Based on results of the fair value analysis of the contingent consideration, the Company reduced the fair value of the combined contingent consideration liability from $1.9 million at March 31, 2020, to $388,000 at June 30, 2020.

As a result of the Company’s changed outlook for near term revenue from the ThawStar and freezer product lines, estimated undiscounted cash flow projections were developed to determine if any impairment of the related intangible assets was warranted. After conducting such review, the Company determined that there was no impairment of the remaining long-lived assets as of June 30, 2020. Given the inherent uncertainties of the COVID-19 pandemic and the estimates used in these cash flow projections, changes based on facts and circumstances in future quarters could give rise to impairment.

The Company may also experience other negative impacts of the COVID-19 outbreak such as the lack of availability of the Company’s key personnel, additional temporary closures of the Company’s office or the facilities of the Company’s business partners, customers, third party service providers or other vendors, the inability to travel to market and sell our products, and the interruption of the Company’s supply chain, distribution channels, liquidity and capital or financial markets.

Any disruption and volatility in the global capital markets as a result of the pandemic may increase the Company’s cost of capital and adversely affect the Company’s ability to access financing when and on terms that the Company desires. In addition, a recession resulting from the spread of COVID-19 could materially affect the Company’s business, especially if a recession results in higher unemployment causing potential patients to not have access to health insurance.

The ultimate extent to which the COVID-19 pandemic and its repercussions impact the Company’s business will depend on future developments, which are highly uncertain. However, the foregoing and other continued disruptions to the Company’s business as a result of COVID-19 could result in a material adverse effect on the Company’s business, results of operations, financial condition and cash flows.

On March 27, 2020, the President signed into law the “Coronavirus Aid, Relief, and Economic Security (CARES) Act.” The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations, increased limitations on qualified charitable contributions, and technical corrections to tax depreciation methods for qualified improvement property. The Company will continue to monitor the impact that the CARES Act may have on the Company’s business, financial condition, results of operations, or liquidity.

We determined that we met the original eligibility requirements per the guidelines original established by the U.S. federal government as part of the CARES Act for the Pursuant to the Paycheck Protection Program (the “PPP”). As such, on April 20, 2020, the Company received $2,175,320 in support from the PPP. Because the U.S. government subsequently changed its position and guidelines related to the PPP and publicly traded companies, the Company repaid the loan on April 29, 2020. As of March 30, 2020, the company started deferring the employer side of social security payments. We will pay back 50% of our total deferred payments in 2021 and the remaining 50% in 2022.

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

Concentrations of credit risk and business risk

In the three months ended June 30, 2020, we derived approximately 25% of our product revenue from two customers and in the six months ended June 30, 2020, we derived approximately 13% of our revenue from one customer. In the three months ended June 30, 2019, we derived approximately 17% of our product revenue from one customer and in the six months ended June 30, 2019, we derived approximately 20% of our revenue from one customer. No other customer accounted for more than 10% of revenue in the six months ended June 30, 2020 or 2019. In the three months ended June 30, 2020 and 2019, we derived approximately 62% and 82%, of our revenue from CryoStor products, respectively. Due to our acquisitions in 2019, we expect both our revenue concentration related to CryoStor and our customer concentrations to be reduced for the year ended December 31, 2020. At June 30, 2020, two customers accounted for approximately 22% of total gross accounts receivable. At December 31, 2019, two customers accounted for approximately 25% of total gross accounts receivable. 

The following table represents the Company’s total revenue by geographic area (based on the location of the customer):

	Three Months Ended June 30,						Six Months Ended June 30,
Revenue by customers’ geographic locations	2020			2019			2020			2019
United States		70	%		71	%		73	%		66	%
Canada		18	%		17	%		14	%		20	%
Europe, Middle East, Africa (EMEA)		10	%		11	%		11	%		12	%
Other		2	%		1	%		2	%		2	%
Total revenue		100	%		100	%		100	%		100	%

New Accounting Pronouncements, Policy [Policy Text Block]

Recent accounting pronouncements 

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 includes amendments that aim to improve the effectiveness of fair value measurement disclosures. The amendments in this guidance modify the disclosure requirements on fair value measurements based on the concepts in FASB Concepts Statement, “Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements,” including the consideration of costs and benefits. The amendments become effective for the Company in the year ending December 31, 2020 and early adoption is permitted. The Company adopted this guidance January 1, 2020 and there was no material impact on its consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes.” ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, including, but not limited to, the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items, the exceptions related to the recognition of a deferred tax liability related to an equity method investment and the exception to methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. ASU 2019-12 becomes effective for the Company in the year ended December 31, 2021, including interim periods. Due to the full valuation allowance on the Company’s net deferred tax assets, the Company is currently expecting no material impact from the adoption of ASU 2019-12 on its consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires companies to measure credit losses utilizing a methodology that reflects expected credit losses and requires a consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For Smaller Reporting Companies as defined by the SEC, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is evaluating the impact of the guidance on its financial statements. 

In August 2018, the FASB issued ASU No. 2018-15, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”, which clarifies the accounting for implementation costs in cloud computing arrangements. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company adopted this guidance January 1, 2020 and there was no material impact on its consolidated financial statements.

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Note 1 - Organization and Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2020

Notes Tables

Revenue from External Customers by Products and Services [Table Text Block]

	Three Months Ended June 30,						Six Months Ended June 30,
Revenue by customers’ geographic locations	2020			2019			2020			2019
United States		70	%		71	%		73	%		66	%
Canada		18	%		17	%		14	%		20	%
Europe, Middle East, Africa (EMEA)		10	%		11	%		11	%		12	%
Other		2	%		1	%		2	%		2	%
Total revenue		100	%		100	%		100	%		100	%

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Note 2 - Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2020

Notes Tables

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

As of June 30, 2020	Level 1		Level 2		Level 3		Total
Assets:
Money market accounts	$	29,879	$	—	$	—	$	29,879
Convertible debt held at fair value		—		—		1,000		1,000
Total		29,879		—		1,000		30,879
Liabilities:
Contingent consideration - business combinations		—		—		387		387
Warrant liability		—		—		963		963
Total	$	—	$	—	$	1,350	$	1,350

As of December 31, 2019	Level 1		Level 2		Level 3		Total
Assets:
Money market accounts	$	6,448	$	—	$	—	$	6,448
Convertible debt held at fair value		—		—		1,000		1,000
Total		6,448		—		1,000		7,448
Liabilities:
Contingent consideration - business combinations		—		—		1,914		1,914
Warrant liability		—		—		39,602		39,602
Total	$	—	$	—	$	41,516	$	41,516

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

	June 30,		December 31,
(In thousands)	2020		2019
Beginning balance	$	1,000	$	1,000
Purchases		—		—
Change in fair value recognized in net income		—		—
Total	$	1,000	$	1,000

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

	June 30,			December 31,
(In thousands)	2020			2019
Beginning balance	$	1,914		$	—
Additions		—			2,347
Change in fair value recognized in net income		(1,526	)		50
Payments earned, reclassified to accrued liabilities		—			(483	)
Total	$	388		$	1,914

Warrant Liabilities [Member]

Notes Tables

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

	June 30,			December 31,
(In thousands)	2020			2019
Beginning balance	$	39,602		$	28,516
Exercised warrants		(33,167	)		(1,749	)
Change in fair value recognized in net income		(5,472	)		12,835
Ending balance	$	963		$	39,602

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Note 3 - Acquisitions (Tables)

6 Months Ended

Jun. 30, 2020

Notes Tables

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

Cash consideration	$	12,521
Contingent consideration		1,491
Working capital adjustment		(71	)
Total consideration transferred	$	13,941

Stock consideration for 55.6% equity interest purchased $ 19,932

Cash consideration	$	11,000
Stock consideration		4,000
Contingent consideration		856
Total consideration transferred	$	15,856

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

Cash and cash equivalents	$	11
Accounts receivable, net		154
Inventory		456
Customer relationships		160
Tradenames		470
Developed technology		2,840
In-process research and development		650
Goodwill		9,515
Other assets		99
Accounts payable		(250	)
Other liabilities		(164	)
Fair value of net assets acquired	$	13,941

Cash and cash equivalents	$	1,251
Accounts receivable, net		753
Prepaid expenses and other current assets		19
Property, plant and equipment, net		546
Operating right-of-use asset		233
Assets held for rent, net		2,441
Customer relationships		80
Tradenames		1,320
Developed technology		10,750
Goodwill		21,037
Accounts payable and accrued expenses		(807	)
Deferred tax liabilities		(1,541	)
Other liabilities		(232	)
Fair value of net assets acquired	$	35,850

Accounts receivable, net	$	1,044
Inventory		3,232
Prepaid expenses and other current assets		29
Property, plant and equipment, net		3,615
Customer relationships		560
Tradenames		800
Developed technology		5,430
Goodwill		2,954
Accounts payable		(1,197	)
Other liabilities		(611	)
Fair value of net assets acquired	$	15,856

Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]

	Estimated Fair Value		Estimated Useful Life (Years)
Customer relationships	$	160		4
Tradenames		470		9
Developed technology		2,840	5	–	9
In-process research and development		650		9
Total identifiable intangible assets	$	4,120

	Estimated Fair Value		Estimated Useful Life (Years)
Customer relationships	$	80		6
Tradenames		1,320		9
Developed technology		10,750	7	–	8
Total identifiable intangible assets	$	12,150

	Estimated Fair Value		Estimated Useful Life (Years)
Customer relationships	$	560	6
Tradenames		800	6
Developed technology		5,430	9
Total identifiable intangible assets	$	6,790

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Note 4 - Inventory (Tables)

6 Months Ended

Jun. 30, 2020

Notes Tables

Schedule of Inventory, Current [Table Text Block]

(In thousands)	June 30, 2020		December 31, 2019
Raw materials	$	2,679	$	2,979
Work in progress		1,678		1,896
Finished goods		6,533		6,097
Total	$	10,890	$	10,972

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Note 5 - Assets Held for Rent (Tables)

6 Months Ended

Jun. 30, 2020

Notes Tables

Scheduleof Assets Held for Rent [Table Text Block]

(In thousands)	June 30, 2020			December 31, 2019
Shippers placed in service	$	4,199		$	3,073
Accumulated deprecation		(569	)		(174	)
Net		3,630			2,899
Shippers and related components in production		1,328			1,023
Total	$	4,958		$	3,922

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Note 6 - Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2020

Notes Tables

Schedule of Goodwill [Table Text Block]

(In thousands)
Balance as of December 31, 2019	$	33,637
Correction of an error related to CBS goodwill		(131	)
Balance as of June 30, 2020	$	33,506

Schedule of Finite-Lived Intangible Assets [Table Text Block]

(In thousands, except weighted average useful life)	June 30, 2020
Finite-lived intangible assets:	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (in years)
Customer Relationships	$	800	$	(124	)	$	676		4.8
Tradenames		2,590		(289	)		2,301		7.2
Technology – acquired (1)		19,670		(2,059	)		17,611		7.6
Total intangible assets	$	23,060	$	(2,472	)	$	20,588		7.4

(In thousands, except weighted average useful life)	December 31, 2019
Finite-lived intangible assets:	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (in years)
Customer Relationships	$	800	$	(51	)	$	749		5.6
Tradenames		2,590		(123	)		2,467		8.1
Technology – acquired		19,020		(904	)		18,116		8.4
In-process R&D (2)		650		—			650		9.0
Total intangible assets	$	23,060	$	(1,078	)	$	21,982		8.3

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

(In thousands) For the Years Ended December 31,	Estimated Amortization Expense
2020 (6 months remaining)	$	1,412
2021		2,825
2022		2,825
2023		2,795
2024		2,770
Thereafter		7,961
Total	$	20,588

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Note 7 - Share-based Compensation (Tables)

6 Months Ended

Jun. 30, 2020

Notes Tables

Share-based Payment Arrangement, Option, Activity [Table Text Block]

	Six Month Period Ended
	June 30, 2020
				Wtd. Avg.
				Exercise
	Options			Price
Outstanding at beginning of year		1,570,455		$	1.96
Granted		—		$	—
Exercised		(393,680	)	$	1.92
Forfeited		—		$	—
Expired		—		$	—
Outstanding service vesting-based at June 30, 2020		1,176,775		$	1.98
Service vesting-based options exercisable at June 30, 2020		1,148,338		$	1.94

	Six Month Period Ended
	June 30, 2020
				Wtd. Avg.
				Exercise
	Options			Price
Outstanding at beginning of year		737,497		$	1.64
Granted		—		$	—
Exercised		(17,113	)	$	1.64
Outstanding performance-based at June 30, 2020		720,384		$	1.64
Performance-based options exercisable at June 30, 2020		720,384		$	1.64

Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block]

	Six Month Period Ended
	June 30, 2020
Service vesting-based restricted stock	Number of Restricted Shares			Grant-Date Fair Value
Outstanding at beginning of year		429,399		$	13.25
Granted		235,215		$	12.03
Granted in lieu of cash		34,154		$	9.18
Vested		(88,390	)	$	11.89
Forfeited		(20,661	)	$	14.62
Outstanding at June 30, 2020		589,717		$	12.68

	Six Month Period Ended
	June 30, 2020
Performance-based restricted stock	Number of Restricted Shares		Grant-Date Fair Value
Outstanding at beginning of year		—	$	—
Expected to vest		82,805	$	9.18
Vested		—	$	—
Forfeited		—	$	—
Outstanding at June 30, 2020		82,805	$	9.18

Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block]

	Three Month Period Ended				Six Month Period Ended
	June 30,				June 30,
(In thousands)	2020		2019		2020		2019
Research and development costs	$	222	$	168	$	397	$	235
Sales and marketing costs		96		171		325		326
General and administrative costs		699		439		1,275		716
Cost of product sales		128		40		261		72
Total	$	1,145	$	818	$	2,258	$	1,349

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Note 8 - Warrants (Tables)

6 Months Ended

Jun. 30, 2020

Notes Tables

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

	Shares			Wtd. Avg. Exercise Price
Outstanding at December 31, 2019		3,959,005		$	4.33
Exercised		(3,876,405	)		4.33
Outstanding at June 30, 2020		82,600		$	4.75

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Note 10 - Net Income (Loss) Per Common Share (Tables)

6 Months Ended

Jun. 30, 2020

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,
(In thousands, except per share and share data)	2020			2019		2020		2019
Numerator:
Net income attributable to common stockholders
Basic	$	(16,380	)	$	3,425	$	5,093	$	(14,909	)
Diluted	$	(16,380	)	$	545	$	350	$	(14,909	)
Denominator:
Basic weighted average shares outstanding		23,292,635			18,819,459		22,151,726		18,734,401
Diluted weighted average shares outstanding		23,292,635			24,539,299		27,013,580		18,734,401
Basic earnings per share	$	(0.70	)	$	0.18	$	0.23	$	(0.80	)
Diluted earnings per share	$	(0.70	)	$	0.02	$	0.01	$	(0.80	)

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Note 12 - Revenue (Tables)

6 Months Ended

Jun. 30, 2020

Notes Tables

Revenues By Product Line [Table Text Block]

	Three Month Period Ended				Six Month Period Ended
	June 30,				June 30,
(In thousands)	2020		2019		2020		2019
Biopreservation media	$	6,667	$	6,327	$	15,339	$	12,097
Automated thawing		376		374		770		374
evo shippers		439		—		877		—
Freezers and accessories		2,438		—		5,096		—
Total	$	9,920	$	6,701	$	22,082	$	12,471

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Note 13 - Leases (Tables)

6 Months Ended

Jun. 30, 2020

Notes Tables

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

(In thousands)	Operating Leases			Financing Leases
2020		440			8
2021		559			2
Total lease payments		999			10
Less: interest		(39	)		(1	)
Total present value of lease liabilities	$	960		$	9

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Note 14 - Condensed Consolidated Balance Sheet Detail (Tables)

6 Months Ended

Jun. 30, 2020

Notes Tables

Property, Plant and Equipment [Table Text Block]

(In thousands)	June 30, 2020			December 31, 2019
Property and equipment
Leasehold improvements	$	2,141		$	2,112
Furniture and computer equipment		824			794
Manufacturing and other equipment		5,474			5,187
Subtotal		8,439			8,093
Less: Accumulated depreciation		(3,092	)		(2,521	)
Net property and equipment	$	5,347		$	5,572

Schedule of Accrued Liabilities [Table Text Block]

(In thousands)	June 30, 2020		December 31, 2019
Accrued expenses and other current liabilities	$	284	$	302
Other payables		206		1,018
Accrued compensation		1,813		1,554
Deferred revenue		286		324
Other		17		171
Total accrued expenses and other current liabilities	$	2,606	$	3,369

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Note 1 - Organization and Significant Accounting Policies (Details Textual)						1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 07, 2020 USD ($) $ / shares shares	Apr. 29, 2020 USD ($)	Apr. 20, 2020 USD ($)	Nov. 12, 2019 USD ($)	Apr. 01, 2019 USD ($)	Mar. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)	May 22, 2020 USD ($) $ / shares	Mar. 31, 2020 USD ($)
Cash and Cash Equivalents, at Carrying Value, Ending Balance							$ 29,879,000		$ 29,879,000		$ 6,448,000
Payment for Contingent Consideration Liability, Financing Activities									483,000	$ (0)
Revenue from Contract with Customer, Including Assessed Tax							9,920,000	$ 6,701,000	22,082,000	12,471,000
Business Combination, Contingent Consideration, Liability, Total							$ 388,000		388,000				$ 1,900,000
Impairment of Intangible Assets (Excluding Goodwill), Total									0
Proceeds from Issuance of Debt									2,175,000	0
Repayments of Debt									$ 2,175,000	$ (0)
Customer Concentration Risk [Member] | Revenue Benchmark [Member]
Concentration Risk, Percentage							25.00%	17.00%	13.00%	20.00%
Number of Major Customers							2	1	1	1
Customer Concentration Risk [Member] | Accounts Receivable [Member]
Concentration Risk, Percentage									22.00%		25.00%
Number of Major Customers									2		2
Paycheck Protection Program CARES Act [Member]
Proceeds from Issuance of Debt			$ 2,175,320
Repayments of Debt		$ 2,175,320
Cryopreservation Media [Member] | Minimum [Member] | COVID 19 [Member]
Revenue from Contract with Customer, Including Assessed Tax						$ 1,500,000
Cryopreservation Media [Member] | Maximum [Member] | COVID 19 [Member]
Revenue from Contract with Customer, Including Assessed Tax						$ 2,000,000.0
CryoStor Products [Member] | Product Concentration Risk [Member] | Revenue Benchmark [Member]
Concentration Risk, Percentage							62.00%	82.00%
Subsequent Event [Member]
Stock Issued During Period, Shares, New Issues (in shares) | shares	5,951,250
Shares Issued, Price Per Share (in dollars per share) | $ / shares	$ 14.50
Proceeds from Issuance of Common Stock, Net	$ 81,000,000
Subsequent Event [Member] | Over-Allotment Option [Member]
Stock Issued During Period, Shares, New Issues (in shares) | shares	776,250
Casdin Capital LLC [Member]
Share Repurchase Agreement, Value of Shares to be Issued												$ 20,000,000
Share Price (in dollars per share) | $ / shares												$ 10.50
Astero [Member]
Payments to Acquire Businesses, Gross					$ 12,521,000
Business Combination, Contingent Consideration Arrangements, Change in Range of Outcomes, Contingent Consideration, Liability, Value, High					8,500,000
Payment for Contingent Consideration Liability, Financing Activities							$ 483,000
Payments to Acquire Businesses, Initial Cash Payment					8,000,000.0
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High					8,500,000
Business Combination, Contingent Consideration, Liability, Total					$ 1,500,000
CBS Acquisition [Member]
Payments to Acquire Businesses, Gross				$ 11,000,000
Payments to Acquire Businesses, Initial Cash Payment				11,000,000.0
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable				4,000,000.0
CBS Acquisition [Member] | Earning Payments Payable in Each Calendar Year 2020, 2021, 2022, 2023, and 2024 [Member]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High				$ 15,000,000.0

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Note 1 - Organization and Significant Accounting Policies - Concentrations Risk by Geographic Locations (Details) - Revenue Benchmark [Member] - Geographic Concentration Risk [Member]	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue by customers’ geographic locations, percentage	100.00%	100.00%	100.00%	100.00%
UNITED STATES
Revenue by customers’ geographic locations, percentage	70.00%	71.00%	73.00%	66.00%
CANADA
Revenue by customers’ geographic locations, percentage	18.00%	17.00%	14.00%	20.00%
EMEA [Member]
Revenue by customers’ geographic locations, percentage	10.00%	11.00%	11.00%	12.00%
Geographic, Other [Member]
Revenue by customers’ geographic locations, percentage	2.00%	1.00%	2.00%	2.00%

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Note 2 - Fair Value Measurement (Details Textual)	6 Months Ended
	Jun. 30, 2020
Minimum [Member] | Measurement Input, Price Volatility [Member]
Warrants and Rights Outstanding, Measurement Input	0.739
Maximum [Member]
Warrants and Rights Outstanding, Term (Year)	1 year
Maximum [Member] | Measurement Input, Price Volatility [Member]
Warrants and Rights Outstanding, Measurement Input	0.777
Convertible Debt Securities [Member] | Minimum [Member]
Debt Securities, Term (Year)	3 years
Convertible Debt Securities [Member] | Maximum [Member]
Debt Securities, Term (Year)	5 years

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Note 2 - Fair Value Measurement - Financial Assets and Liabilities on Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Assets	$ 30,879	$ 7,448
Liabilities	1,350	41,516
Contingent Consideration Liabilities [Member]
Liabilities	387
Warrant Liabilities [Member]
Liabilities	963	39,602
Money Market Funds [Member]
Assets	29,879	6,448
Convertible Debt Securities [Member]
Assets	1,000	1,000
Contingent Consideration Liabilities [Member]
Liabilities		1,914
Fair Value, Inputs, Level 1 [Member]
Assets	29,879	6,448
Liabilities	0	0
Fair Value, Inputs, Level 1 [Member] | Contingent Consideration Liabilities [Member]
Liabilities	0
Fair Value, Inputs, Level 1 [Member] | Warrant Liabilities [Member]
Liabilities	0	0
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Assets	29,879	6,448
Fair Value, Inputs, Level 1 [Member] | Convertible Debt Securities [Member]
Assets	0	0
Fair Value, Inputs, Level 1 [Member] | Contingent Consideration Liabilities [Member]
Liabilities		0
Fair Value, Inputs, Level 2 [Member]
Assets	0	0
Liabilities	0	0
Fair Value, Inputs, Level 2 [Member] | Contingent Consideration Liabilities [Member]
Liabilities	0
Fair Value, Inputs, Level 2 [Member] | Warrant Liabilities [Member]
Liabilities	0	0
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member]
Assets	0	0
Fair Value, Inputs, Level 2 [Member] | Convertible Debt Securities [Member]
Assets	0	0
Fair Value, Inputs, Level 2 [Member] | Contingent Consideration Liabilities [Member]
Liabilities		0
Fair Value, Inputs, Level 3 [Member]
Assets	1,000	1,000
Liabilities	1,350	41,516
Fair Value, Inputs, Level 3 [Member] | Contingent Consideration Liabilities [Member]
Liabilities	387
Fair Value, Inputs, Level 3 [Member] | Warrant Liabilities [Member]
Liabilities	963	39,602
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member]
Assets	0	0
Fair Value, Inputs, Level 3 [Member] | Convertible Debt Securities [Member]
Assets	$ 1,000	1,000
Fair Value, Inputs, Level 3 [Member] | Contingent Consideration Liabilities [Member]
Liabilities		$ 1,914

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Note 2 - Fair Value Measurement - Fair Value of Assets Using Level 3 Input (Details) - Investments [Member] - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Beginning balance	$ 1,000	$ 1,000
Purchases	0	0
Change in fair value recognized in net income	0	0
Total	$ 1,000	$ 1,000

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Note 2 - Fair Value Measurement - Fair Value of Liabilities Using Level 3 Input (Details) - Contingent Consideration Liabilities [Member] - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Beginning balance	$ 1,914	$ 0
Additions	0	2,347
Change in fair value recognized in net income	(1,526)	50
Payments earned, reclassified to accrued liabilities	0	(483)
Total	$ 388	$ 1,914

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Note 2 - Fair Value Measurement - Fair Value of Warrant Liabilities Using Level 3 Inputs (Details) - Warrant Liabilities [Member] - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Beginning balance	$ 39,602	$ 39,602	$ 28,516
Exercised warrants	(33,167)		(1,749)
Change in fair value recognized in net income	(5,472)		12,835
Total	$ 963	$ 39,602	$ 39,602

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Note 3 - Acquisitions (Details Textual) - USD ($)				3 Months Ended	6 Months Ended
	Nov. 12, 2019	Aug. 08, 2019	Apr. 01, 2019	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2020	Dec. 31, 2019	Nov. 11, 2019	Aug. 07, 2019	Mar. 31, 2019
Payment for Contingent Consideration Liability, Financing Activities					$ 483,000	$ (0)
Business Combination, Contingent Consideration, Liability, Total				$ 388,000	388,000		$ 1,900,000
Goodwill, Ending Balance				33,506,000	33,506,000			$ 33,637,000
Equity Method Investments				41,000	$ 41,000
SAVSU [Member]
Equity Method Investments		$ 5,800,000
Astero [Member]
Payments to Acquire Businesses, Gross			$ 12,521,000
Payments to Acquire Businesses, Initial Cash Payment			8,000,000.0
Payments to Acquire Businesses, Deferred Cash Payment			4,500,000
Business Combination, Consideration Transferred, Liabilities Incurred			1,491,000
Payment for Contingent Consideration Liability, Financing Activities				$ 483,000
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High			8,500,000
Business Combination, Contingent Consideration, Liability, Total			1,500,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net Tangible Assets			324,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets			4,100,000
Goodwill, Ending Balance			9,500,000								$ 9,515,000
Business Acquisition, Goodwill, Expected Tax Deductible Amount			1,100,000
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net, Total											$ 13,941,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles			4,120,000
Astero [Member] | Earnout Payments Payable in Each Calendar Years of 2019, 2020 and 2021 [Member]
Business Combination, Consideration Transferred, Liabilities Incurred			3,500,000
Astero [Member] | Earnout Payment for Calendar Year 2021 [Member]
Business Combination, Consideration Transferred, Liabilities Incurred			$ 5,000,000.0
SAVSU [Member]
Goodwill, Ending Balance		$ 19,500,000								$ 21,037,000
Business Combinations, Number of Shares Acquired (in shares)		8,616
Business Acquisition, Percentage of Voting Interests Acquired		55.60%
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares)		1,100,000
Share Price (in dollars per share)		$ 18.12
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable		$ 19,932,000
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net, Total		35,800,000								$ 35,850,000
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value		$ 15,900,000
Business Combination, Step Acquisition, Equity Interest in Acquiree, Percentage		44.00%
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain (Loss), Net, Total		$ 10,100,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Tangible Assets, Net		4,200,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		12,150,000
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination, Total		$ 35,800,000
CBS Acquisition [Member]
Payments to Acquire Businesses, Gross	$ 11,000,000
Payments to Acquire Businesses, Initial Cash Payment	11,000,000.0
Business Combination, Consideration Transferred, Liabilities Incurred	856,000
Goodwill, Ending Balance	3,100,000								$ 2,954,000
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable	4,000,000.0
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net, Total									15,856,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Tangible Assets, Net	6,000,000.0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	6,800,000								$ 6,790,000
Business Combination, Consideration Transferred, Excluding Contingent Consideration	15,000,000.0
Business Combination, Cash Holdback Escrow to Satisfy Indemnification Claims	550,000
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable, Escrow Holdback	3,000,000.0
CBS Acquisition [Member] | Earning Payments Payable in Each Calendar Year 2020, 2021, 2022, 2023, and 2024 [Member]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	$ 15,000,000.0

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Note 3 - Acquisitions - Consideration (Details) - USD ($) $ in Thousands	Nov. 12, 2019	Aug. 08, 2019	Apr. 01, 2019
Astero [Member]
Cash consideration			$ 12,521
Contingent consideration			1,491
Working capital adjustment			(71)
Total consideration transferred			$ 13,941
SAVSU [Member]
Stock consideration		$ 19,932
CBS Acquisition [Member]
Cash consideration	$ 11,000
Contingent consideration	856
Total consideration transferred	15,856
Stock consideration	$ 4,000

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Note 3 - Acquisitions - Consideration (Details) (Parentheticals)	Aug. 08, 2019
SAVSU [Member]
Percentage equity interest purchased	55.60%

XML

Note 3 - Acquisitions - Fair Value of Net Assets Acquired (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019	Nov. 12, 2019	Nov. 11, 2019	Aug. 08, 2019	Aug. 07, 2019	Apr. 01, 2019	Mar. 31, 2019
Goodwill	$ 33,506,000	$ 33,637,000
Astero [Member]
Cash and cash equivalents								$ 11,000
Accounts receivable, net								154,000
Inventory								456,000
Intangible assets							$ 4,120,000
Goodwill							9,500,000	9,515,000
Other assets								99,000
Accounts payable								(250,000)
Other liabilities								164,000
Fair value of net assets acquired								13,941,000
Other liabilities								(164,000)
Fair value of net assets acquired								13,941,000
Inventory								456,000
Astero [Member] | Customer Relationships [Member]
Intangible assets							160,000	160,000
Astero [Member] | Trade Names [Member]
Intangible assets							470,000	470,000
Astero [Member] | Developed Technology Rights [Member]
Intangible assets							2,840,000	2,840,000
Astero [Member] | In Process Research and Development [Member]
Intangible assets							$ 650,000	$ 650,000
SAVSU [Member]
Cash and cash equivalents						$ 1,251,000
Accounts receivable, net						753,000
Intangible assets					$ 12,150,000
Goodwill					19,500,000	21,037,000
Accounts payable						(807,000)
Other liabilities						232,000
Fair value of net assets acquired					35,800,000	35,850,000
Prepaid expenses and other current assets						19,000
Property, plant and equipment, net						546,000
Operating right-of-use asset					233,000	233,000
Assets held for rent, net						2,441,000
Deferred tax liabilities						(1,541,000)
Other liabilities						(232,000)
Fair value of net assets acquired					35,800,000	35,850,000
SAVSU [Member] | Customer Relationships [Member]
Intangible assets					80,000	80,000
SAVSU [Member] | Trade Names [Member]
Intangible assets					$ 1,320,000	1,320,000
SAVSU [Member] | Developed Technology Rights [Member]
Intangible assets						$ 10,750,000
CBS Acquisition [Member]
Accounts receivable, net				$ 1,044,000
Inventory				3,232,000
Intangible assets			$ 6,800,000	6,790,000
Goodwill			$ 3,100,000	2,954,000
Accounts payable				(1,197,000)
Other liabilities				611,000
Fair value of net assets acquired				15,856,000
Prepaid expenses and other current assets				29,000
Property, plant and equipment, net				3,615,000
Other liabilities				(611,000)
Fair value of net assets acquired				15,856,000
Inventory				3,232,000
CBS Acquisition [Member] | Customer Relationships [Member]
Intangible assets				560,000
CBS Acquisition [Member] | Trade Names [Member]
Intangible assets				800,000
CBS Acquisition [Member] | Developed Technology Rights [Member]
Intangible assets				$ 5,430,000

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Note 3 - Acquisitions - Acquired Intangible Assets (Details) - USD ($) $ in Thousands	Nov. 11, 2019	Aug. 08, 2019	Apr. 01, 2019	Nov. 12, 2019	Aug. 07, 2019	Mar. 31, 2019
Astero [Member]
Intangible assets			$ 4,120
Astero [Member] | Customer Relationships [Member]
Intangible assets			$ 160			$ 160
Intangible assets, estimated useful life (Year)			4 years
Astero [Member] | Trade Names [Member]
Intangible assets			$ 470			470
Intangible assets, estimated useful life (Year)			9 years
Astero [Member] | Developed Technology Rights [Member]
Intangible assets			$ 2,840			2,840
Astero [Member] | Developed Technology Rights [Member] | Minimum [Member]
Intangible assets, estimated useful life (Year)			5 years
Astero [Member] | Developed Technology Rights [Member] | Maximum [Member]
Intangible assets, estimated useful life (Year)			9 years
Astero [Member] | In Process Research and Development [Member]
Intangible assets			$ 650			$ 650
Intangible assets, estimated useful life (Year)			9 years
SAVSU [Member]
Intangible assets		$ 12,150
SAVSU [Member] | Customer Relationships [Member]
Intangible assets		$ 80			$ 80
Intangible assets, estimated useful life (Year)		6 years
SAVSU [Member] | Trade Names [Member]
Intangible assets		$ 1,320			1,320
Intangible assets, estimated useful life (Year)		9 years
SAVSU [Member] | Developed Technology Rights [Member]
Intangible assets					$ 10,750
SAVSU [Member] | Technology-Based Intangible Assets [Member]
Intangible assets		$ 10,750
SAVSU [Member] | Technology-Based Intangible Assets [Member] | Minimum [Member]
Intangible assets, estimated useful life (Year)		7 years
SAVSU [Member] | Technology-Based Intangible Assets [Member] | Maximum [Member]
Intangible assets, estimated useful life (Year)		8 years
CBS Acquisition [Member]
Intangible assets	$ 6,790			$ 6,800
CBS Acquisition [Member] | Customer Relationships [Member]
Intangible assets	$ 560
Intangible assets, estimated useful life (Year)	6 years
CBS Acquisition [Member] | Trade Names [Member]
Intangible assets	$ 800
Intangible assets, estimated useful life (Year)	6 years
CBS Acquisition [Member] | Developed Technology Rights [Member]
Intangible assets	$ 5,430
Intangible assets, estimated useful life (Year)	9 years

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Note 4 - Inventory - Summary of Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Raw materials	$ 2,679	$ 2,979
Work in progress	1,678	1,896
Finished goods	6,533	6,097
Total	$ 10,890	$ 10,972

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Note 5 - Assets Held for Rent (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Assets Held for Rent, Depreciation	$ 267,000	$ 0	$ 395,000	$ 0

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Note 5 - Assets Held for Rent - Assets Held for Rent (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Shippers placed in service	$ 4,199	$ 3,073
Accumulated deprecation	(569)	(174)
Net	3,630	2,899
Shippers and related components in production	1,328	1,023
Total	$ 4,958	$ 3,922

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Note 6 - Goodwill and Intangible Assets (Details Textual) - USD ($)		3 Months Ended		6 Months Ended
	Apr. 01, 2020	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Goodwill, Purchase Accounting Adjustments				$ (131,000)
Increase (Decrease) in Accounts Payable, Total				63,000	$ (36,000)
Amortization of Intangible Assets, Total		$ 706,000	$ 104,000	1,394,000	$ 104,000
In Process Research and Development [Member]
Finite-Lived Intangible Assets, Period Increase (Decrease), Total	$ (650,000)
Technology-Based Intangible Assets [Member]
Finite-Lived Intangible Assets, Period Increase (Decrease), Total	$ 650,000
CBS Acquisition [Member] | Immaterial Error [Member]
Goodwill, Purchase Accounting Adjustments				(131,000)
Increase (Decrease) in Accounts Payable, Total				$ (131,000)

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Note 6 - Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020 USD ($)
Balance	$ 33,637
Correction of an error related to CBS goodwill	(131)
Balance	$ 33,506

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Note 6 - Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands		6 Months Ended		12 Months Ended
		Jun. 30, 2020		Dec. 31, 2019
Gross Carrying Value		$ 23,060		$ 23,060
Accumulated Amortization		(2,472)		(1,078)
Net Carrying Value		$ 20,588		$ 21,982
Weighted Average [Member]
Weighted Average Useful Life (Year)		7 years 4 months 24 days		8 years 3 months 18 days
Customer Relationships [Member]
Gross Carrying Value		$ 800		$ 800
Accumulated Amortization		(124)		(51)
Net Carrying Value		$ 676		$ 749
Customer Relationships [Member] | Weighted Average [Member]
Weighted Average Useful Life (Year)		4 years 9 months 18 days		5 years 7 months 6 days
Trade Names [Member]
Gross Carrying Value		$ 2,590		$ 2,590
Accumulated Amortization		(289)		(123)
Net Carrying Value		$ 2,301		$ 2,467
Trade Names [Member] | Weighted Average [Member]
Weighted Average Useful Life (Year)		7 years 2 months 12 days		8 years 1 month 6 days
Technology-Based Intangible Assets [Member]
Gross Carrying Value		$ 19,670	[1]	$ 19,020
Accumulated Amortization		(2,059)		(904)
Net Carrying Value		$ 17,611	[1]	$ 18,116
Technology-Based Intangible Assets [Member] | Weighted Average [Member]
Weighted Average Useful Life (Year)		7 years 7 months 6 days		8 years 4 months 24 days
In Process Research and Development [Member]
Gross Carrying Value	[2]			$ 650
Accumulated Amortization				0
Net Carrying Value	[2]			$ 650
In Process Research and Development [Member] | Weighted Average [Member]
Weighted Average Useful Life (Year)				9 years

[1] We transferred $650,000 out of “in-process R&D” into “Technology - acquired” on April 1, 2020, which was the date on which the product line became technologically feasible.

[2] In-process R&D represents the fair value of incomplete research and development that has not yet reached technological feasibility. On April 1, 2020, we began amortizing the asset since it reached technological feasibility (see footnote 1 above).

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Note 6 - Goodwill and Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
2020 (6 months remaining)	$ 1,412
2021	2,825
2022	2,825
2023	2,795
2024	2,770
Thereafter	7,961
Total	$ 20,588	$ 21,982

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Note 7 - Share-based Compensation (Details Textual) - USD ($)				3 Months Ended		6 Months Ended
	Mar. 25, 2020	Apr. 01, 2019	Feb. 25, 2019	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share-based Payment Arrangement, Expense				$ 1,145,000	$ 818,000	$ 2,258,000	$ 1,349,000
Share-based Payment Arrangement, Option [Member]
Share-based Payment Arrangement, Expense				28,000	95,000	89,000	240,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value				16,900,000		16,900,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value				16,500,000		16,500,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value				1,600,000	2,000,000.0	$ 4,700,000	$ 3,500,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)						0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year)						4 years 1 month 6 days
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total				58,000		$ 58,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)						1 year 2 months 12 days
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)						0
Performance Shares [Member] | Management Performance Bonus Plan 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value				10,600,000		$ 10,600,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value				$ 0	$ 0	$ 239,000	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares)				0	0	0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term (Year)						1 year 6 months
Restricted Stock [Member]
Share-based Payment Arrangement, Expense				$ 466,000	$ 268,000	$ 860,000	$ 522,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total				6,600,000		$ 6,600,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)						3 years 2 months 12 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Fair Value				1,500,000	3,100,000	$ 548,000	3,200,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value				406,000	369,000	$ 1,200,000	1,200,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)						235,215
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)						$ 12.03
Restricted Stock [Member] | Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)	34,154					34,154
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)	$ 9.18					$ 9.18
Performance-based Restricted Stock [Member]
Share-based Payment Arrangement, Expense				189,000		$ 378,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total				382,000		$ 382,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)						6 months
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)	82,805					82,805
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)	$ 9.18					$ 9.18
Performance-based Restricted Stock [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Awards	0.00%
Performance-based Restricted Stock [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Awards	125.00%
Market-based Restricted Stock [Member]
Share-based Payment Arrangement, Expense				462,000	$ 455,000	$ 931,000	$ 587,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total				$ 1,900,000		$ 1,900,000
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)						1 year
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)	109,140	29,604	94,247
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance	78.00%	69.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.00%	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	0.30%	2.50%
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year)	2 years	2 years
Market-based Restricted Stock [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Awards	0.00%	0.00%
Market-based Restricted Stock [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Awards	200.00%	200.00%

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Note 7 - Share-based Compensation - Stock Option Activity (Details)	6 Months Ended
	Jun. 30, 2020 $ / shares shares	Jun. 30, 2019 shares
Share-based Payment Arrangement, Option [Member]
Outstanding (in shares) | shares	1,570,455
Outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 1.96
Granted (in shares) | shares	0	0
Granted, weighted average exercise price (in dollars per share) | $ / shares	$ 0
Exercised (in shares) | shares	(393,680)
Exercised, weighted average exercise price (in dollars per share) | $ / shares	$ 1.92
Forfeited (in shares) | shares	0
Forfeited, weighted average exercise price (in dollars per share) | $ / shares	$ 0
Expired (in shares) | shares	0
Expired, weighted average exercise price (in dollars per share) | $ / shares	$ 0
Outstanding (in shares) | shares	1,176,775
Outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 1.98
Options exercisable (in shares) | shares	1,148,338
Options exercisable, weighted average exercise price (in dollars per share) | $ / shares	$ 1.94
Performance Shares [Member]
Outstanding (in shares) | shares	737,497
Outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 1.64
Granted (in shares) | shares	0
Granted, weighted average exercise price (in dollars per share) | $ / shares	$ 0
Exercised (in shares) | shares	(17,113)
Exercised, weighted average exercise price (in dollars per share) | $ / shares	$ 1.64
Outstanding (in shares) | shares	720,384
Outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 1.64
Options exercisable (in shares) | shares	720,384
Options exercisable, weighted average exercise price (in dollars per share) | $ / shares	$ 1.64

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Note 7 - Share-based Compensation - Restricted Stock Activity (Details) - $ / shares		6 Months Ended
	Mar. 25, 2020	Jun. 30, 2020
Restricted Stock [Member]
Outstanding (in shares)		429,399
Outstanding (in dollars per share)		$ 13.25
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)		235,215
Granted, grant date fair value (in dollars per share)		$ 12.03
Vested (in shares)		(88,390)
Vested, grant date fair value (in dollars per share)		$ 11.89
Forfeited (in shares)		(20,661)
Forfeited, grant date fair value (in dollars per share)		$ 14.62
Outstanding (in shares)		589,717
Outstanding (in dollars per share)		$ 12.68
Expected to vest (in shares)		235,215
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)		$ 12.03
Restricted Stock [Member] | Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)	34,154	34,154
Granted, grant date fair value (in dollars per share)	$ 9.18	$ 9.18
Expected to vest (in shares)	34,154	34,154
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)	$ 9.18	$ 9.18
Performance-based Restricted Stock [Member]
Outstanding (in shares)		0
Outstanding (in dollars per share)		$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares)	82,805	82,805
Granted, grant date fair value (in dollars per share)	$ 9.18	$ 9.18
Vested (in shares)		0
Vested, grant date fair value (in dollars per share)		$ 0
Forfeited (in shares)		0
Forfeited, grant date fair value (in dollars per share)		$ 0
Outstanding (in shares)		82,805
Outstanding (in dollars per share)		$ 9.18
Expected to vest (in shares)	82,805	82,805
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)	$ 9.18	$ 9.18

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Note 7 - Share-based Compensation - Stock Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Stock compensation expense	$ 1,145	$ 818	$ 2,258	$ 1,349
Research and Development Expense [Member]
Stock compensation expense	222	168	397	235
Selling and Marketing Expense [Member]
Stock compensation expense	96	171	325	326
General and Administrative Expense [Member]
Stock compensation expense	699	439	1,275	716
Cost of Sales [Member]
Stock compensation expense	$ 128	$ 40	$ 261	$ 72

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Note 8 - Warrants (Details Textual) - USD ($)		3 Months Ended	6 Months Ended
	May 14, 2020	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	May 31, 2016	Mar. 31, 2014
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)		$ 4.75	$ 4.75		$ 4.33
Class of Warrant or Right, Exercised During Period (in shares)			3,876,405
Class of Warrant or Right, Exercised During Period, Exercise Price (in dollars per share)			$ 4.33
Proceeds from Warrant Exercises			$ 24,000	$ 138,000
Warrants to Purchase Common Stock [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)							6,910,283
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)							$ 4.75
Warrants in Connection with WAVI Credit Facility [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)						550,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)						$ 1.75
WAVI Holding AG and Taurus4757 GmbH Warrants [Member]
Stock Issued During Period, Shares, Cashless Warrant Exercises (in shares)	2,747,970
Class of Warrant or Right, Exercised During Period (in shares)	3,871,405	3,871,405	3,871,405
Warrants Expiring March 2021 [Member]
Class of Warrant or Right, Exercised During Period (in shares)		3,000	5,000
Class of Warrant or Right, Exercised During Period, Exercise Price (in dollars per share)		$ 4.75	$ 4.75
Proceeds from Warrant Exercises		$ 14,000	$ 24,000

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Note 8 - Warrants - Summary of Warrant Activity (Details)	6 Months Ended
	Jun. 30, 2020 $ / shares shares
Outstanding, number of shares (in shares) | shares	3,959,005
Outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 4.33
Exercised, number of shares (in shares) | shares	(3,876,405)
Exercised, weighted average exercise price (in dollars per share) | $ / shares	$ 4.33
Outstanding, number of shares (in shares) | shares	82,600
Outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 4.75

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Note 10 - Net Income (Loss) Per Common Share - Calculation of Diluted Shares (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Basic	$ (16,380)	$ 3,425	$ 5,093	$ (14,909)
Diluted	$ (16,380)	$ 545	$ 350	$ (14,909)
Basic weighted average shares outstanding (in shares)	23,292,635	18,819,459	22,151,726	18,734,401
Diluted weighted average shares outstanding (in shares)	23,292,635	24,539,299	27,013,580	18,734,401
Basic earnings per share (in dollars per share)	$ (0.70)	$ 0.18	$ 0.23	$ (0.80)
Diluted earnings per share (in dollars per share)	$ (0.70)	$ 0.02	$ 0.01	$ (0.80)

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Note 12 - Revenue (Details Textual)	6 Months Ended
	Jun. 30, 2020
Number of Operating Segments	1

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Note 12 - Revenue - Revenues by Product Line (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue from Contract with Customer, Including Assessed Tax	$ 9,920	$ 6,701	$ 22,082	$ 12,471
Biopreservation Media [Member]
Revenue from Contract with Customer, Including Assessed Tax	6,667	6,327	15,339	12,097
Automated Thawing Products [Member]
Revenue from Contract with Customer, Including Assessed Tax	376	374	770	374
Evo Shippers [Member]
Revenue from Contract with Customer, Including Assessed Tax	439	0	877	0
Freezers and Accessories [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 2,438	$ 0	$ 5,096	$ 0

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Note 13 - Leases (Details Textual)	3 Months Ended		6 Months Ended
	Jun. 30, 2020 USD ($) ft² a	Jun. 30, 2019 USD ($)	Jun. 30, 2020 USD ($) ft² a	Jun. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)	Aug. 08, 2019 USD ($)	Aug. 07, 2019 USD ($)	Jan. 01, 2019 USD ($)
Operating Lease, Weighted Average Discount Rate, Percent	6.50%		6.50%
Finance Lease, Weighted Average Discount Rate, Percent	8.10%		8.10%
Operating Lease, Weighted Average Remaining Lease Term (Year)	1 year 3 months 18 days		1 year 3 months 18 days
Finance Lease, Weighted Average Remaining Lease Term (Year)	8 months 12 days		8 months 12 days
Operating Lease, Right-of-Use Asset	$ 740,000		$ 740,000		$ 1,040,000			$ 1,300,000
Operating Lease, Liability, Total	960,000		960,000					$ 1,800,000
Lease Cost, Operating Leases	229,000		456,000
Operating Lease, Cost	170,000		339,000
Short-term Lease, Cost	59,000		117,000
Variable Lease, Cost	0		0
Operating Lease, Payments	$ 217,000		$ 434,000
Operating Leases, Rent Expense, Net, Total		$ 142,000		$ 186,000
SAVSU [Member]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Operating Lease Right-of-use Asset						$ 233,000	$ 233,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Operating Lease Liability						$ 232,000
Bothell, Washington Headquarters [Member]
Area of Real Estate Property (Square Foot) | ft²	32,106		32,106
Lessee, Operating Lease, Renewal Term (Year)	5 years		5 years
Monthly Base Rent Expense			$ 63,000
Menlo Park, California Location [Member]
Area of Real Estate Property (Square Foot) | ft²	1,250		1,250
Monthly Base Rent Expense			$ 5,000
Albuquerque, New Mexico Location [Member]
Area of Real Estate Property (Square Foot) | ft²	9,932		9,932
Lessee, Operating Lease, Renewal Term (Year)	3 years		3 years
Monthly Base Rent Expense			$ 9,000
Detroit, Michigan Location [Member]
Area of Real Estate Property (Square Foot) | a	106,998		106,998
Lessee, Operating Lease, Renewal Term (Year)	60 months		60 months
Monthly Base Rent Expense			$ 15,000

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Note 13 - Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jan. 01, 2019
2020, operating leases	$ 440
2020, finance leases	8
2021, operating leases	559
2021, finance leases	2
Total operating lease payments	999
Total financing lease payments	10
Less: operating lease interest	(39)
Less: financing lease interest	(1)
Total present value of operating lease liabilities	960	$ 1,800
Total present value of financing lease liabilities	$ 9

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Note 14 - Condensed Consolidated Balance Sheet Detail (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Depreciation, Total	$ 292,000	$ 110,000	$ 578,000	$ 209,000

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Note 14 - Condensed Consolidated Balance Sheet Detail - Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Property and equipment	$ 8,439	$ 8,093
Less: Accumulated depreciation	(3,092)	(2,521)
Net property and equipment	5,347	5,572
Leasehold Improvements [Member]
Property and equipment	2,141	2,112
Furniture and Computer Equipment [Member]
Property and equipment	824	794
Manufacturing Facility [Member]
Property and equipment	$ 5,474	$ 5,187

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Note 14 - Condensed Consolidated Balance Sheet Detail - Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Accrued expenses and other current liabilities	$ 284	$ 302
Other payables	206	1,018
Accrued compensation	1,813	1,554
Deferred revenue	286	324
Other	17	171
Total accrued expenses and other current liabilities	$ 2,606	$ 3,369

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Note 15 - Employee Benefit Plan (Details Textual) - Defined Contribution Plan, 401 K [Member] - Pension Plan [Member] - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay			100.00%
Defined Contribution Plan, Employer Discretionary Contribution Amount	$ 95,000	$ 38,000	$ 179,000	$ 88,000

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Note 16 - Subsequent Event (Details Textual) - USD ($) $ / shares in Units, $ in Thousands		6 Months Ended
	Jul. 07, 2020	Jun. 30, 2020	Jun. 30, 2019
Proceeds from Issuance of Common Stock		$ 19,914	$ 0
Subsequent Event [Member]
Stock Issued During Period, Shares, New Issues (in shares)	5,951,250
Shares Issued, Price Per Share (in dollars per share)	$ 14.50
Proceeds from Issuance of Common Stock	$ 86,000
Subsequent Event [Member] | Over-Allotment Option [Member]
Stock Issued During Period, Shares, New Issues (in shares)	776,250