CRYO CELL INTERNATIONAL INC

Previous wording

Stem cells are found in umbilical cord blood (“cord blood stem cells”) and can be collected and stored after a baby is born. Over 60,000 cord blood stem cell transplants have been performed to date. The Company believes that many parents will want to save and store these cells for potential future use by their family, either for the donor or for another family member. Today, stem cell transplants are known and accepted treatments for at least 80 diseases, we believe, a number of them life-threatening. With continued research in this area of medical technology, other therapeutic uses for cord blood stem cells are being explored. Moreover, researchers believe they may be utilized in the future for treating diseases that currently have no cure.

Current wording

Stem cells are found in umbilical cord blood (“cord blood stem cells”) and can be collected and stored after a baby is born. Over 60,000 cord blood stem cell transplants have been performed to date. The Company believes that many parents will want to save and store these cells for potential future use by their family, either for the donor or for another family member. Today, stem cell transplants are known and accepted treatments for nearly 80 diseases, we believe, a number of them life-threatening. With continued research in this area of medical technology, other therapeutic uses for cord blood stem cells are being explored. Moreover, researchers believe they may be utilized in the future for treating diseases that currently have no cure.

Previous wording

The Company intends to continue offering cord blood and cord tissue banking services to expectant parents and relying on both online advertising and its national team of field cord blood educators to enroll new clients. A significant portion of its new enrollments are generated from returning customers and referrals. Many of the Company’s clients choose to enter into either multiyear storage contracts, which results in deferred revenues that are recognized over the life the storage contracts.

Current wording

The Company intends to continue offering cord blood and cord tissue banking services to expectant parents and relying on both online advertising and its national team of field cord blood educators to enroll new clients. A significant portion of its new enrollments are generated from returning customers and referrals. Many of the Company’s clients choose to enter into either multiyear storage contracts, which results in deferred revenues that are recognized over the life of the storage contracts.

Previous wording

We are a Delaware corporation that was incorporated in 1989. Our executive offices are located at 700 Brooker Creek Blvd, Suite 1800, Oldsmar, Florida 34677 and our telephone number at such office is (813) 749-2100. Our website address ishttps://www.cryo-cell.com. Information contained on our website is not deemed part of this quarterly report.

Current wording

We are a Delaware corporation that was incorporated in 1989. Our executive offices are located at 700 Brooker Creek Blvd, Suite 1800, Oldsmar, Florida 34677 and our telephone number at such office is (813) 749-2100. Our website address ishttps://www.cryo-cell.com. Information contained on our website is not deemed part of this report.

Previous wording

Revenue. Revenue for the three months ended February 28, 2026 was $7,683,117 as compared to $7,968,880 for the same period in 2025 a decrease of 4% as a result of the reasons discussed below.

Current wording

Revenue. Revenue for the three months ended May 31, 2026 was $7,776,113 as compared to $7,928,843 for the same period in 2025, a 2% decrease.

Previous wording

Processing and Storage Fees. For the three months ended February 28, 2026, processing and storage fees were $7,643,113 compared to $7,865,888 for the three months ended February 28, 2025. Processing and storage fee revenue is attributable to a 3% decrease in recurring annual storage fee revenue offset by a 16% decrease in the number of new domestic cord blood specimens processed for the three months ended February 28, 2026 versus the three months ended February 28, 2025.

Current wording

Processing and Storage Fees. For three months ended May 31, 2026 and May 31, 2025 processing and storage fees were $7,715,446 and $7,871,719 respectively. The decrease in processing and storage fee revenue is attributable to a 3% increase in recurring annual storage fee revenue offset by a 11% decrease in the number of new domestic cord blood specimens processed in the first six months of fiscal 2026 versus the same period in 2025.

Previous wording

Product Revenue. For the three months ended February 28, 2026, revenue from the product sales was $38,594 compared to $20,913 for the three months ended February 28, 2025.

Current wording

Product Revenue. For the three months ended May 31, 2026, revenue from the product sales was $14,182 compared to $14,436 for the three months ended May 31, 2025.

Previous wording

Public Cord Blood Banking Revenue. For the three months ended February 28, 2026, revenue from the public cord blood banking sales was $1,410 compared to $82,079 for the three months ended February 28, 2025.

Current wording

Public Cord Blood Banking Revenue. For the three months ended May 31, 2026, revenue from the public cord blood banking sales was $46,485 compared to $42,688 for the three months ended May 31, 2025.

Previous wording

Cost of Sales. Cost of sales for the three months ended February 28, 2026 was $1,656,488 as compared to $1,984,588 for the same period in 2025, representing a 17% decrease. Cost of sales includes wages and supplies associated with process enhancements to the existing production procedures and quality systems in the processing of cord blood specimens at the Company’s facility in Oldsmar, Florida and depreciation expense of approximately $35,000 and $31,000 for the three months ended February 28, 2026 and February 28, 2025, respectively. Cost of Sales also includes $12,187 and $6,959 for the three months ended February 28, 2026 and February 28, 2025, respectively, related to the costs associated with production of the PrepaCyte®-CB processing and storage system. Also included in Cost of Sales is $100,300 and $275,994 for the three months ended February 28, 2026 and February 28, 2025, respectively, related to the public banks.

Current wording

Cost of Sales. Cost of sales for the three months ended May 31, 2026 was $1,676,663 as compared to $1,856,539 for the same period in 2025, representing an 10% decrease. Cost of sales includes wages and supplies associated with process enhancements to the existing production procedures and quality systems in the processing of cord blood specimens at the Company’s facility in Oldsmar, Florida and depreciation expense of approximately $34,000 and $35,000 for the three months ended May 31, 2026 and May 31, 2025, respectively. Cost of Sales also includes $5,783 and $4,283 for the three months ended May 31, 2026 and May 31, 2025, respectively, related to the costs associated with production of the PrepaCyte®-CB processing and storage system. Also included in Cost of Sales is $116,421 and $200,148 for the three months ended May 31, 2026 and May 31, 2025, respectively, related to the public banks.

Previous wording

Selling, General and Administrative Expenses. Selling, general and administrative expenses for the three months ended February 28, 2026 were $5,011,847 as compared to $4,638,285 for the 2025 period representing an 8% increase. These expenses are primarily comprised of selling and marketing expenses, salaries and wages for personnel and professional fees. For the three months ended February 28, 2026 legal fees and expert opinion expenses were approximately $1,234,000 versus approximately $206,000 for the same period in 2025. The legal fees and expert opinion expenses for the three months ended February 28, 2026 were related to the Duke dispute. See Note 12 for additional information regarding Duke.

Current wording

Selling, General and Administrative Expenses. Selling, general and administrative expenses for the three months ended May 31, 2026 were $4,617,999 as compared to $4,257,857 for the 2025 period representing a 8% increase. These expenses are primarily comprised of selling and marketing expenses, salaries and wages for personnel and professional fees.

Previous wording

Research, Development and Related Engineering Expenses. Research, development and related engineering expenses for the three months ended February 28, 2026 were $65,761 as compared to $98,143 for the 2025 period.

Current wording

Research, Development and Related Engineering Expenses. Research, development and related engineering expenses for the three months ended May 31, 2026 were $99,781 as compared to $131,711 for the 2025 period.

Previous wording

Depreciation and Amortization. Depreciation and amortization (not included in Cost of Sales) for the three months ended February 28, 2026 was $183,887 compared to $191,853 for the 2025 period.

Current wording

Depreciation and Amortization. Depreciation and amortization (not included in Cost of Sales) for the three months ended May 31, 2026 was $184,329 compared to $190,102 for the 2025 period.

Previous wording

Interest Expense. Interest expense during the three months ended February 28, 2026, was $462,709 compared to $494,962 during the comparable period in 2025, of which, $188,552 and $228,247, respectively, related to the credit and subordination agreement with Susser Bank as described in Note 5. Interest expense also includes of $271,013 and $263,152 as of the three months ended February 28, 2026 and February 28, 2025, respectively, for amounts due to the parties to the Company’s revenue sharing agreements based on the Company’s storage revenue collected.

Current wording

Interest Expense. Interest expense during the three months ended May 31, 2026, was $441,917 compared to $551,126 during the comparable period in 2025, of which, $157,862 and $244,373, respectively, related to the credit and subordination agreements with Susser Bank as described in Note 5. Interest expense also includes of $283,468 and $304,030 as of the three months ended May 31, 2026 and May 31, 2025, respectively, for amounts due to the parties to the Company’s revenue sharing agreements based on the Company’s storage revenue collected.

Previous wording

Income Taxes. U.S. income tax expense for the three months ended February 28, 2026 was $23,201 compared to $250,863 for the three months ended February 28, 2025.

Current wording

Income Taxes. U.S. income tax expense for the three months ended May 31, 2026 was $273,195 compared to $219,318 for the three months ended May 31, 2025.

Previous wording

At February 28, 2026, the Company had cash and cash equivalents of $249,672 as compared to $319,031 at November 30, 2025. The decrease in cash and cash equivalents during the three months ended February 28, 2026 was primarily attributable to the following:

Current wording

At May 31, 2026, the Company had cash and cash equivalents of $507,302 as compared to $319,031 at November 30, 2025. The decrease in cash and cash equivalents during the six months ended May 31, 2026 was primarily attributable to the following:

Previous wording

Net cash provided by operating activities for the three months ended February 28, 2026 was $651,827, which was attributable to the Company’s operating activities.

Current wording

Net cash provided by operating activities for the six months ended May 31, 2026 was $2,497,738 which was attributable to the Company’s operating activities.

Previous wording

Net cash provided by operating activities for the three months ended February 28, 2025 was $954,063, which was attributable to the Company’s operating activities.

Current wording

Net cash provided by operating activities for the six months ended May 31, 2025 was $1,661,077 which was attributable to the Company’s operating activities.

Previous wording

Net cash from investing activities for the three months ended February 28, 2026 was $19,104 which was primarily attributable to $67,065 used to purchase equipment and $507,304 used to purchase marketable securities, which was offset by the sale of marketable securities in the amount of $593,473.

Current wording

Net cash from investing activities for the six months ended May 31, 2026 was $54,143 which was primarily attributable to $99,766 used to purchase equipment and $656,703 used to purchase marketable securities, which was offset by the sale of marketable securities in the amount of $810,612.

Previous wording

Net cash used in investing activities for the three months ended February 28, 2025 was $287,484 which was primarily attributable to $62,053 used to purchase equipment and $599,611 used to purchase marketable securities, which was offset by the sale of marketable securities in the amount of $374,180.

Current wording

Net cash used in investing activities for the six months ended May 31, 2025 was $1,790,284 which was primarily attributable to $124,461 used to purchase equipment and $2,574,249 used to purchase marketable securities, which was offset by the sale of marketable securities in the amount of $793,426 and the sale of equipment in the amount of $115,000.

Previous wording

Net cash used in financing activities for the three months ended February 28, 2026 was $740,290 which was primarily attributable to the proceeds received from the line of credit with Susser Bank described above in the amount of $1,200,000, which were offset by payments of $1,940,290 to partially repay the Susser note payable and line of credit described above.

Current wording

Net cash used in financing activities for the six months ended May 31, 2026 was $2,363,610 which was primarily attributable to the proceeds received from the line of credit with Susser Bank described above in the amount of $1,200,000, which were offset by payments of $3,586,860 to partially repay the Susser Bank note payable and line of credit described above and proceeds of $23,250 from the exercise of stock options.

Previous wording

$2,800,000, which were offset by payments of $1,783,878 to partially repay the Susser note payable and line of credit described above and $2,020,539 used to pay a cash dividend of $0.25 per share of common stock to the Company's shareholders of record on February 14, 2025. The dividend was paid on February 28, 2025.

Current wording

Net cash used in financing activities for the six months ended May 31, 2025 was $294,262 which was primarily attributable to the proceeds received from the line of credit with Susser Bank described above in the amount of $6,800,000, which were offset by payments of $3,774,416 to partially repay the Susser Bank note payable and line of credit described above, $88,619 used to repurchase the Company's common stock and $3,231,227 used to pay cash dividends of $0.15 and $0.25 per share of common stock to the Company's shareholders of record on May 21, 2025 and February 14, 2025, respectively. The dividends were paid on May 30, 2025 and February 28, 2025, respectively.

Previous wording

The Company has a revolving line of credit, described above. The balance as of February 28, 2026 is $1,600,000 and is reflected on the accompanying balance sheet.

Current wording

The Company has a revolving line of credit, described above. The balance as of May 31, 2026 is $0 and is reflected on the accompanying balance sheet.

Previous wording

The Company has no off-balance sheet arrangements that have or are reasonable likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Current wording

The Company has no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.