CRYO CELL INTERNATIONAL INC Leases Disclosure
NOTE 16 - LEASES
At the inception of a lease arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present in the arrangement. Leases with a term greater than one year are recognized on the balance sheet as a right-of-use (ROU) assets and as short-term and long-term lease liabilities, as applicable. The Company does not have any financing leases.
Operating lease liabilities and their corresponding right-of-use assets are initially recorded based on the present value of lease payments over the expected remaining lease term. The interest rate implicit in lease contracts is typically not readily determinable. As a result, the Company utilizes its incremental borrowing rate to discount lease payments, which reflects the fixed rate at which the Company believes it could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment.
The Company has elected not to recognize leases with an original term of one year or less on the balance sheet. The Company typically only includes an initial lease term in its assessment of a lease arrangement. Options to renew a lease are not included in the Company’s assessment unless there is reasonable certainty that the Company will renew.
The following table presents the right-of-use asset and short-term and long-term lease liabilities amounts recorded on the consolidated balance sheets as of November 30, 2025 and November 30, 2024:
|
|
November 30, 2025 |
|
|
November 30, |
|
||
Assets |
|
|
|
|
|
|
||
Operating lease right-of-use asset |
|
$ |
819,626 |
|
|
$ |
806,339 |
|
Liabilities |
|
|
|
|
|
|
||
Current portion of operating lease liabilities |
|
$ |
430,221 |
|
|
$ |
428,334 |
|
Operating lease long-term liabilities |
|
|
474,628 |
|
|
|
505,053 |
|
Total lease liability |
|
$ |
904,849 |
|
|
$ |
933,387 |
|
The maturity of the Company’s lease liabilities at November 30, 2025 were as follows:
|
|
Future Operating |
|
|
Fiscal Year Ending November 30, |
|
Lease Payments |
|
|
2026 |
|
|
483,136 |
|
2027 |
|
|
457,513 |
|
2028 |
|
|
38,175 |
|
Less: Imputed interest |
|
|
(73,975 |
) |
Present value of lease liabilities |
|
$ |
904,849 |
|
The remaining lease term and discount rates are as follows:
|
|
November 30, 2025 |
|
November 30, |
|
|
Lease Term and Discount Rate |
|
|
|
|
|
|
Remaining lease term (years) |
|
|
|
|
|
|
Operating lease |
|
2.03 |
|
|
2.08 |
|
Discount rate (percentage) |
|
|
|
|
|
|
Operating lease |
|
7.5% |
|
|
8.3 |
% |
Supplemental cash flow information related to leases is as follows:
|
|
Twelve months ended |
|
|||||
|
|
November 30, 2025 |
|
|
November 30, 2024 |
|
||
Operating cash outflows from operating leases |
|
$ |
504,751 |
|
|
$ |
355,140 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Mar 1, 2021 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.