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Notes Payable | 9 Months Ended
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Aug. 31, 2018
Debt Disclosure [Abstract] |
Notes Payable | Note 5 – Notes Payable On May 20, 2016, the Company entered into a Credit Agreement (“Agreement”) with Texas Capital Bank, National Association (“TCB”) for a term loan of $8.0 million in senior credit facilities. The proceeds of the term loan were used by the Company to fund repurchases of the Company’s common stock. Subject to the terms of the Agreement, on May 20, 2016, TCB advanced the Company $100.00. On July 1, 2016, TCB advanced the remaining principal amount of $7,999,900 per a promissory note dated May 20, 2016 between the Company and TCB, at a rate of 3.75% per annum plus LIBOR, payable monthly with a maturity date of July 2021. On August 26, 2016, the Company entered into a First Amendment to Credit Agreement with TCB. Pursuant to terms of the First Amendment to Credit Agreement, on August 26, 2016, TCB made an additional advance to the Company in principal amount of $2,133,433 per an Amended and Restated Promissory Note dated August 26, 2016 between the Company and TCB. The additional proceeds of the term loan were used by the Company to fund the extinguishment of revenue sharing agreements. On June 11, 2018, the Company entered into a Second Amendment to Credit Agreement with TCB. Pursuant to the terms of the Second Amendment to Credit Agreement, TCB increased the current outstanding principal amount of the loan from TCB by $9,000,000 to finance a portion of the purchase price of the Cord:Use Purchase. In connection therewith, Cryo-Cell executed and delivered to TCB a Second Amended and Restated Promissory Note, in the principal amount of $15,500,000. As of August 31, 2018, and November 30, 2017, principal paid to date is $4,149,667 and $2,633,000, respectively, at a rate of 3.35% per annum plus LIBOR, payable monthly with a maturity date of June 2023. As of the three and nine months ended August 31, 2018, the Company paid interest of $204,609 and $393,254, respectively, which is reflected in interest expense on the accompanying consolidated statements of comprehensive (loss) income. As of the three month and nine months ended August 31, 2017, the Company paid interest of $102,868 and $309,385, respectively, which is reflected in interest expense on the accompanying consolidated statements of comprehensive income (loss). On May 20, 2016, the Company also entered into a Subordination Agreement with TCB and CrowdOut Capital LLC (“CrowdOut”) for a subordinated loan of the principal amount of $650,000, which amount CrowdOut advanced to the Company on May 20, 2016. The proceeds of the subordinated loan were used by the Company to fund repurchases of the Company’s common stock. Per a promissory note dated May 20, 2016 between the Company and CrowdOut, interest at 12% per annum on the principal sum of $650,000 is payable monthly with a maturity date of July 2021, at which time, the principal amount of $650,000 was payable. On June 5, 2017, the principal sum of $650,000 plus interest of $867 was paid to CrowdOut and the subordinated loan was paid in full. As of the three and nine months ended August 31, 2018, the Company paid interest of $0 and $0, respectively. As of the three and nine months ended August 31, 2017, the Company paid interest of $867 and $40,300, respectively which is reflected in interest expense on the accompanying consolidated statements of comprehensive income. Collateral of the term and subordinated loans includes all money, securities and property of the Company. The Company incurred debt issuance costs related to the term loan in the amount of $548,085 which is recorded as a direct reduction of the carrying amount of the note payable and amortized over the life of the loan. As of the three and nine months ended August 31, 2018, $28,337 and $79,876, respectively, of the debt issuance costs were amortized and are reflected in interest expense on the accompanying consolidated statements of comprehensive income. As of the three and nine months ended August 31, 2017, $30,427 and $96,869, respectively, of the debt issuance costs were amortized and are reflected in interest expense on the accompanying consolidated statements of comprehensive income. As of August 31, 2018 and November 30, 2017, the note payable obligation was as follows:
|  | August 31, 2018 |  |  | November 30, 2017 |
Note payable |  | $ | 14,983,433 |  |  | $ | 7,500,100 |
Unamortized debt issuance costs |  |  | (294,340 | ) |  |  | (204,917 | )
Net note payable |  | $ | 14,689,093 |  |  | $ | 7,295,183 |
Current portion of note payable |  | $ | 3,100,000 |  |  | $ | 2,000,000 |
Long-term note payable, net of debt issuance costs |  |  | 11,589,093 |  |  |  | 5,295,183 |
Total |  | $ | 14,689,093 |  |  | $ | 7,295,183 |
Interest expense on the note payable for the three and nine months ended August 31, 2018 was as follows:
|  | For the three months ended August 31, 2018 |  |  | For the nine months ended August 31, 2018 |
Interest expense on notes payable |  | $ | 204,609 |  |  | $ | 393,254 |
Debt issuance costs |  |  | 28,337 |  |  |  | 79,876 |
Total interest expense |  | $ | 232,946 |  |  | $ | 473,130 |
|  | For the three months ended August 31, 2017 |  |  | For the nine months ended August 31, 2017 |
Interest expense on notes payable |  | $ | 103,735 |  |  | $ | 349,685 |
Debt issuance costs |  |  | 30,427 |  |  |  | 96,869 |
Total interest expense |  | $ | 134,162 |  |  | $ | 446,554 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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