cry-20200930x10q
P3Yfalse--12-31Q320200000784199YesYes0000784199us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2020-09-302020-09-300000784199us-gaap:MoneyMarketFundsMember2020-01-012020-09-300000784199us-gaap:MoneyMarketFundsMember2019-01-012019-12-310000784199srt:ScenarioForecastMember2020-01-012020-12-310000784199us-gaap:EmployeeStockMember2019-07-012019-09-300000784199us-gaap:EmployeeStockMember2019-01-012019-09-300000784199us-gaap:RetainedEarningsMember2020-09-300000784199us-gaap:AdditionalPaidInCapitalMember2020-09-300000784199us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300000784199us-gaap:RetainedEarningsMember2020-06-300000784199us-gaap:AdditionalPaidInCapitalMember2020-06-300000784199us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-3000007841992020-06-300000784199us-gaap:RetainedEarningsMember2019-12-310000784199us-gaap:AdditionalPaidInCapitalMember2019-12-310000784199us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310000784199us-gaap:RetainedEarningsMember2019-09-300000784199us-gaap:AdditionalPaidInCapitalMember2019-09-300000784199us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-300000784199us-gaap:RetainedEarningsMember2019-06-300000784199us-gaap:AdditionalPaidInCapitalMember2019-06-300000784199us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-3000007841992019-06-300000784199us-gaap:RetainedEarningsMember2018-12-310000784199us-gaap:AdditionalPaidInCapitalMember2018-12-310000784199us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310000784199srt:OfficerMemberus-gaap:EmployeeStockOptionMember2020-01-012020-09-300000784199srt:OfficerMemberus-gaap:EmployeeStockOptionMember2019-01-012019-09-300000784199us-gaap:EmployeeStockMember2020-07-012020-09-300000784199us-gaap:EmployeeStockMember2020-01-012020-09-300000784199cry:StockOptionAndEmployeeStockPurchasePlanOptionExpenseMember2020-07-012020-09-300000784199cry:RestrictedStockAwardsRestrictedStockUnitsPerformanceStockAwardsPerformanceStockUnitsMember2020-07-012020-09-300000784199cry:StockOptionAndEmployeeStockPurchasePlanOptionExpenseMember2020-01-012020-09-300000784199cry:RestrictedStockAwardsRestrictedStockUnitsPerformanceStockAwardsPerformanceStockUnitsMember2020-01-012020-09-300000784199cry:StockOptionAndEmployeeStockPurchasePlanOptionExpenseMember2019-07-012019-09-300000784199cry:RestrictedStockAwardsRestrictedStockUnitsPerformanceStockAwardsPerformanceStockUnitsMember2019-07-012019-09-300000784199cry:StockOptionAndEmployeeStockPurchasePlanOptionExpenseMember2019-01-012019-09-300000784199cry:RestrictedStockAwardsRestrictedStockUnitsPerformanceStockAwardsPerformanceStockUnitsMember2019-01-012019-09-300000784199cry:ShortTermPsusMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2020-01-012020-09-300000784199cry:LongTermPsusMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2020-01-012020-09-300000784199us-gaap:OperatingSegmentsMembercry:TotalProductsMember2020-07-012020-09-300000784199us-gaap:OperatingSegmentsMembercry:TotalPreservationServicesMember2020-07-012020-09-300000784199cry:VascularTissueMember2020-07-012020-09-300000784199cry:PhotofixMember2020-07-012020-09-300000784199cry:PerClotMember2020-07-012020-09-300000784199cry:OnXMember2020-07-012020-09-300000784199cry:NeopatchMember2020-07-012020-09-300000784199cry:JotecAgMember2020-07-012020-09-300000784199cry:CardiogenesisCardiacLaserTherapyMember2020-07-012020-09-300000784199cry:CardiacTissueMember2020-07-012020-09-300000784199cry:BioglueMember2020-07-012020-09-300000784199us-gaap:OperatingSegmentsMembercry:TotalProductsMember2020-01-012020-09-300000784199us-gaap:OperatingSegmentsMembercry:TotalPreservationServicesMember2020-01-012020-09-300000784199us-gaap:IntersegmentEliminationMember2020-01-012020-09-300000784199cry:VascularTissueMember2020-01-012020-09-300000784199cry:PhotofixMember2020-01-012020-09-300000784199cry:PerClotMember2020-01-012020-09-300000784199cry:OnXMember2020-01-012020-09-300000784199cry:NeopatchMember2020-01-012020-09-300000784199cry:JotecAgMember2020-01-012020-09-300000784199cry:CardiogenesisCardiacLaserTherapyMember2020-01-012020-09-300000784199cry:CardiacTissueMember2020-01-012020-09-300000784199cry:BioglueMember2020-01-012020-09-300000784199us-gaap:OperatingSegmentsMembercry:TotalProductsMember2019-07-012019-09-300000784199us-gaap:OperatingSegmentsMembercry:TotalPreservationServicesMember2019-07-012019-09-300000784199cry:VascularTissueMember2019-07-012019-09-300000784199cry:PhotofixMember2019-07-012019-09-300000784199cry:PerClotMember2019-07-012019-09-300000784199cry:OnXMember2019-07-012019-09-300000784199cry:JotecAgMember2019-07-012019-09-300000784199cry:CardiogenesisCardiacLaserTherapyMember2019-07-012019-09-300000784199cry:CardiacTissueMember2019-07-012019-09-300000784199cry:BioglueMember2019-07-012019-09-300000784199us-gaap:OperatingSegmentsMembercry:TotalProductsMember2019-01-012019-09-300000784199us-gaap:OperatingSegmentsMembercry:TotalPreservationServicesMember2019-01-012019-09-300000784199cry:VascularTissueMember2019-01-012019-09-300000784199cry:PhotofixMember2019-01-012019-09-300000784199cry:PerClotMember2019-01-012019-09-300000784199cry:OnXMember2019-01-012019-09-300000784199cry:JotecAgMember2019-01-012019-09-300000784199cry:CardiogenesisCardiacLaserTherapyMember2019-01-012019-09-300000784199cry:CardiacTissueMember2019-01-012019-09-300000784199cry:BioglueMember2019-01-012019-09-300000784199cry:InternationalHospitalsMember2020-07-012020-09-300000784199cry:InternationalDistributorMember2020-07-012020-09-300000784199cry:DomesticHospitalsMember2020-07-012020-09-300000784199cry:CardiogenesisMember2020-07-012020-09-300000784199cry:InternationalHospitalsMember2020-01-012020-09-300000784199cry:InternationalDistributorMember2020-01-012020-09-300000784199cry:DomesticHospitalsMember2020-01-012020-09-300000784199cry:CardiogenesisMember2020-01-012020-09-300000784199cry:InternationalHospitalsMember2019-07-012019-09-300000784199cry:InternationalDistributorMember2019-07-012019-09-300000784199cry:DomesticHospitalsMember2019-07-012019-09-300000784199cry:CardiogenesisMember2019-07-012019-09-300000784199cry:InternationalHospitalsMember2019-01-012019-09-300000784199cry:InternationalDistributorMember2019-01-012019-09-300000784199cry:DomesticHospitalsMember2019-01-012019-09-300000784199cry:CardiogenesisMember2019-01-012019-09-300000784199cry:MaturityDateWithinThreeMonthsMemberus-gaap:MoneyMarketFundsMember2020-09-300000784199us-gaap:MoneyMarketFundsMember2020-09-300000784199cry:MaturityDateWithinThreeMonthsMemberus-gaap:MoneyMarketFundsMember2019-12-310000784199us-gaap:MoneyMarketFundsMember2019-12-310000784199srt:MinimumMembercry:AscyrusMedicalLlcMembercry:AdditionalPotentialCashPaymentIfJapanOrChinaObtainsApprovalMember2020-09-022020-09-020000784199srt:MaximumMembercry:AscyrusMedicalLlcMembercry:AdditionalPotentialCashPaymentIfJapanOrChinaObtainsApprovalMember2020-09-022020-09-020000784199cry:AscyrusMedicalLlcMembercry:IfJapanOrChinaObtainsApprovalMember2020-09-022020-09-020000784199cry:AscyrusMedicalLlcMembercry:AmdsObtainedInJapanMember2020-09-022020-09-020000784199cry:AscyrusMedicalLlcMembercry:AmdsObtainedInChinaMember2020-09-022020-09-020000784199cry:AscyrusMedicalLlcMembercry:AdditionalPotentialCashPaymentIfJapanOrChinaObtainsApprovalMember2020-09-022020-09-020000784199us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:SecuredDebtMember2019-09-110000784199srt:MaximumMember2020-09-300000784199us-gaap:LoansReceivableMemberus-gaap:FairValueInputsLevel3Member2020-09-300000784199us-gaap:LoansReceivableMemberus-gaap:FairValueInputsLevel2Member2020-09-300000784199us-gaap:LoansReceivableMember2020-09-300000784199us-gaap:LoansReceivableMemberus-gaap:FairValueInputsLevel3Member2019-12-310000784199us-gaap:LoansReceivableMemberus-gaap:FairValueInputsLevel2Member2019-12-310000784199us-gaap:LoansReceivableMember2019-12-310000784199us-gaap:RevolvingCreditFacilityMember2017-12-010000784199us-gaap:LoansPayableMember2020-01-012020-09-300000784199us-gaap:RevolvingCreditFacilityMember2020-03-310000784199us-gaap:SecuredDebtMember2017-12-010000784199cry:PerClotMember2020-09-300000784199us-gaap:TrademarksMember2020-09-300000784199us-gaap:InProcessResearchAndDevelopmentMember2020-09-300000784199us-gaap:ContractualRightsMember2020-09-300000784199us-gaap:TrademarksMember2019-12-310000784199us-gaap:InProcessResearchAndDevelopmentMember2019-12-310000784199us-gaap:ContractualRightsMember2019-12-310000784199us-gaap:TechnologyBasedIntangibleAssetsMember2020-01-012020-09-300000784199cry:AscyrusMedicalLlcMember2020-09-300000784199srt:MinimumMemberus-gaap:TechnologyBasedIntangibleAssetsMember2020-01-012020-09-300000784199srt:MinimumMemberus-gaap:OtherIntangibleAssetsMember2020-01-012020-09-300000784199srt:MinimumMemberus-gaap:DistributionRightsMember2020-01-012020-09-300000784199srt:MinimumMemberus-gaap:CustomerListsMember2020-01-012020-09-300000784199srt:MaximumMemberus-gaap:TechnologyBasedIntangibleAssetsMember2020-01-012020-09-300000784199srt:MaximumMemberus-gaap:PatentsMember2020-01-012020-09-300000784199srt:MaximumMemberus-gaap:OtherIntangibleAssetsMember2020-01-012020-09-300000784199srt:MaximumMemberus-gaap:DistributionRightsMember2020-01-012020-09-300000784199srt:MaximumMemberus-gaap:CustomerListsMember2020-01-012020-09-300000784199srt:MinimumMemberus-gaap:TechnologyBasedIntangibleAssetsMember2019-01-012019-12-310000784199srt:MinimumMemberus-gaap:OtherIntangibleAssetsMember2019-01-012019-12-310000784199srt:MinimumMemberus-gaap:DistributionRightsMember2019-01-012019-12-310000784199srt:MinimumMemberus-gaap:CustomerListsMember2019-01-012019-12-310000784199srt:MaximumMemberus-gaap:TechnologyBasedIntangibleAssetsMember2019-01-012019-12-310000784199srt:MaximumMemberus-gaap:PatentsMember2019-01-012019-12-310000784199srt:MaximumMemberus-gaap:OtherIntangibleAssetsMember2019-01-012019-12-310000784199srt:MaximumMemberus-gaap:DistributionRightsMember2019-01-012019-12-310000784199srt:MaximumMemberus-gaap:CustomerListsMember2019-01-012019-12-310000784199us-gaap:TechnologyBasedIntangibleAssetsMember2020-09-300000784199us-gaap:PatentsMember2020-09-300000784199us-gaap:OtherIntangibleAssetsMember2020-09-300000784199us-gaap:DistributionRightsMember2020-09-300000784199us-gaap:CustomerListsMember2020-09-300000784199us-gaap:TechnologyBasedIntangibleAssetsMember2019-12-310000784199us-gaap:PatentsMember2019-12-310000784199us-gaap:OtherIntangibleAssetsMember2019-12-310000784199us-gaap:DistributionRightsMember2019-12-310000784199us-gaap:CustomerListsMember2019-12-310000784199us-gaap:EmployeeStockOptionMember2020-09-300000784199cry:RestrictedStockAwardsRestrictedStockUnitsPreferredStockUnitsMember2020-09-300000784199us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-300000784199us-gaap:RestrictedStockMember2020-01-012020-09-300000784199us-gaap:PerformanceSharesMember2020-01-012020-09-300000784199us-gaap:EmployeeStockOptionMember2020-01-012020-09-300000784199cry:GovernmentSponsoredDebtMember2015-06-012015-06-300000784199us-gaap:ConvertibleDebtMember2020-01-012020-09-300000784199cry:GovernmentSponsoredDebtKfwLoan2Member2015-06-300000784199cry:GovernmentSponsoredDebtKfwLoan1Member2015-06-300000784199cry:CircumstanceIMemberus-gaap:ConvertibleDebtMember2020-01-012020-09-300000784199cry:CircumstanceIiMemberus-gaap:ConvertibleDebtMember2020-01-012020-09-300000784199us-gaap:ConvertibleDebtMember2020-06-182020-06-180000784199us-gaap:ConvertibleDebtMember2020-06-180000784199us-gaap:ConvertibleDebtMember2020-07-012020-09-300000784199us-gaap:RevolvingCreditFacilityMember2020-09-300000784199us-gaap:LoansPayableMember2020-09-300000784199cry:GovernmentSponsoredDebtKfwLoan2Member2020-09-300000784199cry:GovernmentSponsoredDebtKfwLoan1Member2020-09-300000784199us-gaap:LoansPayableMember2019-12-310000784199cry:GovernmentSponsoredDebtKfwLoan2Member2019-12-310000784199cry:GovernmentSponsoredDebtKfwLoan1Member2019-12-310000784199us-gaap:LoansPayableMember2017-12-010000784199srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-01-012020-09-300000784199srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:BaseRateMember2020-01-012020-09-300000784199srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-01-012020-09-300000784199srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:BaseRateMember2020-01-012020-09-300000784199us-gaap:LoansPayableMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-01-012020-09-300000784199us-gaap:LoansPayableMemberus-gaap:BaseRateMember2020-01-012020-09-300000784199us-gaap:LoansPayableMemberus-gaap:LondonInterbankOfferedRateLIBORMember2018-01-012018-09-300000784199us-gaap:LoansPayableMemberus-gaap:BaseRateMember2018-01-012018-09-300000784199us-gaap:OperatingSegmentsMembercry:PreservationServicesMember2020-07-012020-09-300000784199us-gaap:OperatingSegmentsMembercry:MedicalDevicesMember2020-07-012020-09-300000784199cry:ProductsMember2020-07-012020-09-300000784199cry:PreservationServicesMember2020-07-012020-09-300000784199us-gaap:OperatingSegmentsMembercry:PreservationServicesMember2020-01-012020-09-300000784199us-gaap:OperatingSegmentsMembercry:MedicalDevicesMember2020-01-012020-09-300000784199cry:ProductsMember2020-01-012020-09-300000784199cry:PreservationServicesMember2020-01-012020-09-300000784199us-gaap:OperatingSegmentsMembercry:PreservationServicesMember2019-07-012019-09-300000784199us-gaap:OperatingSegmentsMembercry:MedicalDevicesMember2019-07-012019-09-300000784199cry:ProductsMember2019-07-012019-09-300000784199cry:PreservationServicesMember2019-07-012019-09-300000784199us-gaap:OperatingSegmentsMembercry:PreservationServicesMember2019-01-012019-09-300000784199us-gaap:OperatingSegmentsMembercry:MedicalDevicesMember2019-01-012019-09-300000784199cry:ProductsMember2019-01-012019-09-300000784199cry:PreservationServicesMember2019-01-012019-09-300000784199us-gaap:TreasuryStockMember2020-07-012020-09-300000784199us-gaap:RetainedEarningsMember2020-07-012020-09-300000784199us-gaap:CommonStockMember2020-07-012020-09-300000784199us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300000784199us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300000784199us-gaap:TreasuryStockMember2019-07-012019-09-300000784199us-gaap:RetainedEarningsMember2019-07-012019-09-300000784199us-gaap:CommonStockMember2019-07-012019-09-300000784199us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-300000784199us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300000784199us-gaap:TreasuryStockMember2019-01-012019-09-300000784199us-gaap:RetainedEarningsMember2019-01-012019-09-300000784199us-gaap:CommonStockMember2019-01-012019-09-300000784199us-gaap:AdditionalPaidInCapitalMember2019-01-012019-09-300000784199us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-09-300000784199us-gaap:TreasuryStockMember2020-09-300000784199us-gaap:CommonStockMember2020-09-300000784199us-gaap:TreasuryStockMember2020-06-300000784199us-gaap:CommonStockMember2020-06-300000784199us-gaap:TreasuryStockMember2019-12-310000784199us-gaap:CommonStockMember2019-12-310000784199us-gaap:TreasuryStockMember2019-09-300000784199us-gaap:CommonStockMember2019-09-300000784199us-gaap:TreasuryStockMember2019-06-300000784199us-gaap:CommonStockMember2019-06-300000784199us-gaap:TreasuryStockMember2018-12-310000784199us-gaap:CommonStockMember2018-12-3100007841992019-09-3000007841992018-12-310000784199us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Member2020-09-300000784199us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Member2020-09-300000784199us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2020-09-300000784199us-gaap:MoneyMarketFundsMember2020-09-300000784199us-gaap:MoneyMarketFundsMember2020-09-300000784199us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Member2019-12-310000784199us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Member2019-12-310000784199us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2019-12-310000784199us-gaap:MoneyMarketFundsMember2019-12-310000784199us-gaap:MoneyMarketFundsMember2019-12-310000784199cry:AscyrusMedicalLlcMember2020-07-012020-09-300000784199cry:AscyrusMedicalLlcMembercry:FdaApprovesPremarketApprovalMember2020-09-022020-09-020000784199cry:AscyrusMedicalLlcMembercry:FdaApprovalIdeForAmdsMember2020-09-022020-09-020000784199srt:MaximumMembercry:AscyrusMedicalLlcMembercry:FdaApprovalIdeForAmdsMember2020-09-022020-09-020000784199cry:FollowingFdaApprovalForAmdsMember2020-01-012020-09-300000784199cry:AscyrusMedicalLlcMember2020-09-022020-09-020000784199us-gaap:FairValueInputsLevel3Member2020-09-300000784199us-gaap:FairValueInputsLevel2Member2020-09-300000784199us-gaap:FairValueInputsLevel1Member2020-09-300000784199us-gaap:FairValueInputsLevel3Member2019-12-310000784199us-gaap:FairValueInputsLevel2Member2019-12-310000784199us-gaap:FairValueInputsLevel1Member2019-12-310000784199us-gaap:TreasuryStockMember2020-01-012020-09-300000784199us-gaap:RetainedEarningsMember2020-01-012020-09-300000784199us-gaap:CommonStockMember2020-01-012020-09-300000784199us-gaap:AdditionalPaidInCapitalMember2020-01-012020-09-300000784199us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-09-3000007841992020-10-300000784199cry:RestrictedStockAwardsRestrictedStockUnitsPreferredStockUnitsMember2020-01-012020-09-300000784199cry:RestrictedStockAwardsRestrictedStockUnitsPreferredStockUnitsMember2019-01-012019-09-300000784199us-gaap:VariableInterestEntityPrimaryBeneficiaryMembersrt:MinimumMember2019-09-012019-09-300000784199us-gaap:VariableInterestEntityPrimaryBeneficiaryMembersrt:MaximumMember2019-09-012019-09-300000784199us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2019-09-112019-09-110000784199us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2019-09-012019-09-300000784199us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2020-01-012020-09-300000784199cry:AscyrusMedicalLlcMember2020-01-012020-09-300000784199srt:MinimumMemberus-gaap:PerformanceSharesMember2020-01-012020-09-300000784199srt:MaximumMemberus-gaap:PerformanceSharesMember2020-01-012020-09-300000784199srt:MaximumMembersrt:ExecutiveOfficerMembercry:LongTermPsusMember2019-01-012019-12-310000784199srt:MaximumMembercry:ShortTermPsusMember2019-01-012019-12-310000784199srt:MaximumMembercry:LongTermPsusMember2019-01-012019-12-3100007841992019-01-012019-12-310000784199us-gaap:PerformanceSharesMember2019-01-012019-12-310000784199cry:StarchTechnologyPurchaseMember2020-01-012020-09-300000784199us-gaap:RevolvingCreditFacilityMember2020-01-012020-09-300000784199us-gaap:RevolvingCreditFacilityMembercry:AmendedCreditAgreementMember2020-04-290000784199us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2020-09-012020-09-3000007841992020-07-012020-09-3000007841992019-07-012019-09-3000007841992019-01-012019-09-300000784199cry:StarchTechnologyPurchaseMember2020-09-300000784199cry:JotecGmbhMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2019-09-112019-09-110000784199us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2020-09-300000784199us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2019-12-310000784199cry:VascularTissueMember2020-09-300000784199cry:NeopatchMember2020-09-300000784199cry:CardiacTissueMember2020-09-300000784199cry:VascularTissueMember2019-12-310000784199cry:CardiacTissueMember2019-12-310000784199us-gaap:RevolvingCreditFacilityMembercry:AmendedCreditAgreementMember2020-04-292020-04-290000784199cry:CircumstanceAfterJuly52023Memberus-gaap:ConvertibleDebtMember2020-01-012020-09-300000784199us-gaap:NonUsMember2020-09-300000784199country:US2020-09-300000784199us-gaap:NonUsMember2019-12-310000784199country:US2019-12-3100007841992020-01-012020-09-3000007841992020-03-270000784199cry:AscyrusMedicalLlcMember2020-09-020000784199cry:AscyrusMedicalLlcMembercry:FollowingFdaApprovalForAmdsMember2020-09-022020-09-020000784199srt:MaximumMembercry:MaturityDateWithinThreeMonthsMemberus-gaap:MeasurementInputExpectedTermMemberus-gaap:MoneyMarketFundsMember2020-01-012020-09-300000784199srt:MaximumMembercry:MaturityDateWithinThreeMonthsMemberus-gaap:MeasurementInputExpectedTermMemberus-gaap:MoneyMarketFundsMember2019-01-012019-12-3100007841992020-09-3000007841992019-12-31cry:segmentiso4217:USDxbrli:sharesxbrli:sharescry:itemxbrli:pureiso4217:USD

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

OR

o 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: 1-13165   

CRYOLIFE INC.

(Exact name of registrant as specified in its charter)

Florida

59-2417093

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

1655 Roberts Boulevard, NW, Kennesaw, Georgia

30144

(Address of principal executive offices)

(Zip Code)

(770) 419-3355  

(Registrant’s telephone number, including area code)  

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

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value

CRY

New York Stock Exchange

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 x     No o 

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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).      Yes x     No o 

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

x     

Accelerated Filer     

o     

     

Non-accelerated Filer     

o     

Smaller Reporting Company     

o     

Emerging Growth Company     

o     

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 Exchange Act). Yes o    No x

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class

Outstanding at October 30, 2020

Common Stock, $0.01 par value

38,857,435


TABLE OF CONTENTS

Part I – FINANCIAL INFORMATION

 

Item 1. Financial Statements.

3

Summary Consolidated Statements of Operations and Comprehensive Income (Loss)

3

Summary Consolidated Balance Sheets

4

Summary Consolidated Statements of Cash Flows

5

Summary Consolidated Statements of Shareholders’ Equity

6

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

27

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

42

Item 4. Controls and Procedures.

42

Part II - OTHER INFORMATION

43

Item 1. Legal Proceedings.

43

Item 1A. Risk Factors.

44

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

63

Item 3. Defaults Upon Senior Securities.

63

Item 4. Mine Safety Disclosures.

63

Item 5. Other Information.

63

Item 6. Exhibits.

64

Signatures

65

 

2


Part I – FINANCIAL INFORMATION  

Item 1. Financial Statements.  

CryoLife, Inc. and Subsidiaries 

Summary Consolidated Statements of Operations and Comprehensive Income (Loss)

In Thousands, Except Per Share Data

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2020

2019

2020

2019

(Unaudited)

(Unaudited)

Revenues:

Products

$

45,109

$

47,484

$

128,797

$

147,053

Preservation services

20,022

20,397

56,534

59,472

Total revenues

65,131

67,881

185,331

206,525

Cost of products and preservation services:

Products

12,998

12,706

36,078

41,021

Preservation services

9,001

9,953

26,060

29,043

Total cost of products and preservation services

21,999

22,659

62,138

70,064

Gross margin

43,132

45,222

123,193

136,461

Operating expenses:

General, administrative, and marketing

33,743

34,259

105,033

105,402

Research and development

5,755

6,259

17,633

17,648

Total operating expenses

39,498

40,518

122,666

123,050

Operating income

3,634

4,704

527

13,411

Interest expense

4,940

3,555

11,980

11,260

Interest income

(13)

(259)

(181)

(608)

Other expense, net

2,888

2,400

5,810

2,662

(Loss) income before income taxes

(4,181)

(992)

(17,082)

97

Income tax benefit

(1,311)

(858)

(3,858)

(2,304)

Net (loss) income

$

(2,870)

$

(134)

$

(13,224)

$

2,401

(Loss) income per common share:

Basic

$

(0.08)

$

(0.00)

$

(0.35)

$

0.06

Diluted

$

(0.08)

$

(0.00)

$

(0.35)

$

0.06

Weighted-average common shares outstanding:

Basic

37,912

37,255

37,608

37,065

Diluted

37,912

37,255

37,608

37,850

Net (loss) income

$

(2,870)

$

(134)

$

(13,224)

$

2,401

Other comprehensive income (loss):

Foreign currency translation adjustments

8,698

(8,017)

8,669

(8,803)

Comprehensive income (loss)

$

5,828

$

(8,151)

$

(4,555)

$

(6,402)

See accompanying Notes to Summary Consolidated Financial Statements

 

3


CryoLife, Inc. and Subsidiaries

Summary Consolidated Balance Sheets

In Thousands

September 30,

December 31,

2020

2019

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

64,122

$

33,766

Restricted securities

513

528

Trade receivables, net

46,911

52,940

Other receivables

2,520

2,921

Inventories

69,402

53,071

Deferred preservation costs

35,952

32,551

Prepaid expenses and other

14,279

11,613

Total current assets

233,699

187,390

Property and equipment, net

31,799

32,150

Operating lease right-of-use assets, net

19,438

21,994

Goodwill

253,995

186,697

Acquired technology, net

185,010

115,415

Other intangibles, net

40,697

42,319

Deferred income taxes

3,274

5,481

Other assets

14,288

14,208

Total assets

$

782,200

$

605,654

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

10,399

$

9,796

Accrued compensation

11,644

12,260

Accrued procurement fees

4,057

4,362

Current maturities of operating leases

5,678

5,487

Current portion of long-term debt

1,165

1,164

Taxes payable

6,140

2,984

Accrued expenses

10,344

6,733

Other liabilities

4,240

2,409

Total current liabilities

53,667

45,195

Long-term debt

289,697

214,571

Deferred income taxes

24,813

25,844

Non-current maturities of operating leases

15,026

17,918

Deferred compensation liability

4,982

4,434

Contingent consideration

55,407

--

Other liabilities

12,842

11,996

Total liabilities

$

456,434

$

319,958

Commitments and contingencies

 

 

Shareholders' equity:

Preferred stock

--

--

Common stock (issued shares of 40,341 in 2020 and 39,018 in 2019)

403

390

Additional paid-in capital

316,394

271,782

Retained earnings

23,480

36,704

Accumulated other comprehensive income (loss)

80

(8,589)

Treasury stock at cost (shares of 1,484 in each of 2020 and 2019)

(14,591)

(14,591)

Total shareholders' equity

325,766

285,696

Total liabilities and shareholders' equity

$

782,200

$

605,654

See accompanying Notes to Summary Consolidated Financial Statements.

 

4


CryoLife, Inc. and Subsidiaries

Summary Consolidated Statements of Cash Flows

In Thousands 

(Unaudited)

Nine Months Ended

September 30,

2020

2019

Net cash flows from operating activities:

Net (loss) income

$

(13,224)

$

2,401

Adjustments to reconcile net (loss) income to net cash from operating activities:

Depreciation and amortization

14,818

13,257

Non-cash compensation

7,432

6,581

Non-cash lease expense

5,324

3,491

Change in fair value of long-term loan

4,949

--

Deferred income taxes

(4,916)

(1,064)

Non-cash interest expense

2,261

1,266

Other non-cash adjustments to net (loss) income

1,631

1,328

Changes in operating assets and liabilities:

Receivables

7,718

(4,496)

Inventories and deferred preservation costs

(19,744)

(3,864)

Prepaid expenses and other assets

(2,560)

(3,020)

Accounts payable, accrued expenses, and other liabilities

3,230

(1,113)

Net cash flows provided by operating activities

6,919

14,767

Net cash flows from investing activities:

Acquisition of Ascyrus, net of cash acquired

(59,643)

--

Payments for Endospan agreements

(5,000)

(15,000)

Capital expenditures

(5,171)

(5,222)

Other

(968)

(531)

Net cash flows used in investing activities

(70,782)

(20,753)

Net cash flows from financing activities:

Proceeds from issuance of convertible debt

100,000

--

Proceeds from revolving line of credit

30,000

--

Proceeds from financing insurance premiums

2,816

--