Cryoport (CYRX) 10-Q 9 Aug 17 2017 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 31, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Entity Registrant Name	Cryoport, Inc.
Entity Central Index Key	1,124,524
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	CYRX
Entity Common Stock, Shares Outstanding		24,674,432

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 12,854,526	$ 4,524,529
Accounts receivable, net of allowance for doubtful accounts of $60,000 and $75,000, respectively	1,250,731	1,195,479
Inventories	72,621	89,499
Prepaid expenses and other current assets	308,929	286,919
Total current assets	14,486,807	6,096,426
Property and equipment, net	2,311,680	1,647,104
Intangible assets, net	29,728	5,000
Deposits	363,403	363,403
Total assets	17,191,618	8,111,933
Current Liabilities:
Accounts payable and other accrued expenses	1,369,223	1,160,299
Accrued compensation and related expenses	598,325	419,034
Related-party notes payable and accrued interest, net of discount of $0 and $6,100, respectively	0	651,934
Total current liabilities	1,967,548	2,231,267
Deferred rent liability	196,973	200,264
Total liabilities	2,164,521	2,431,531
Commitments and contingencies
Stockholders’ Equity:
Common stock, $0.001 par value; 50,000,000 shares authorized; 23,992,510 and 17,604,283 issued and outstanding at June 30, 2017 and December 31, 2016, respectively	23,993	17,604
Additional paid-in capital	142,186,654	129,196,680
Accumulated deficit	(127,183,550)	(123,533,882)
Total stockholders’ equity	15,027,097	5,680,402
Total liabilities and stockholders’ equity	17,191,618	8,111,933
Class A convertible preferred stock [Member]
Stockholders’ Equity:
Preferred stock, $0.001 par value; 2,500,000 shares authorized:	0	0
Class B Convertible Preferred Stock [Member]
Stockholders’ Equity:
Preferred stock, $0.001 par value; 2,500,000 shares authorized:	$ 0	$ 0

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Allowance for doubtful accounts receivable	$ 60,000	$ 75,000
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	2,500,000	2,500,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	23,992,510	17,604,283
Common stock, shares outstanding	23,992,510	17,604,283
Related Party Notes payable, Other Payable [Member]
Debt Instrument, Unamortized Discount	$ 0	$ 6,100
Class A Convertible Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	800,000	800,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Class B Convertible Preferres Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	585,000	585,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues	$ 2,917,378	$ 1,917,566	$ 5,629,612	$ 3,473,111
Cost of revenues	1,524,189	1,135,616	2,982,926	2,109,354
Gross margin	1,393,189	781,950	2,646,686	1,363,757
Operating costs and expenses:
General and administrative	1,789,514	1,429,768	3,492,546	3,244,189
Sales and marketing	1,236,833	1,195,638	2,306,768	2,442,664
Engineering and development	230,736	135,799	480,579	280,277
Total operating costs and expenses	3,257,083	2,761,205	6,279,893	5,967,130
Loss from operations	(1,863,894)	(1,979,255)	(3,633,207)	(4,603,373)
Other income (expense):
Interest expense	(26)	(21,242)	(15,693)	(102,436)
Warrant repricing expense	0	(1,929,818)	0	(1,929,818)
Other income (expense), net	3,463	(1,915)	3,463	(6,787)
Loss before provision for income taxes	(1,860,457)	(3,932,230)	(3,645,437)	(6,642,414)
Provision for income taxes	0	(2,484)	(4,231)	(2,484)
Net loss	(1,860,457)	(3,934,714)	(3,649,668)	(6,644,898)
Undeclared cumulative preferred dividends	0	0	0	(75,460)
Net loss attributable to common stockholders	$ (1,860,457)	$ (3,934,714)	$ (3,649,668)	$ (6,720,358)
Net loss per share attributable to common stockholders - basic and diluted	$ (0.08)	$ (0.28)	$ (0.18)	$ (0.54)
Weighted average shares outstanding - basic and diluted	23,965,825	14,199,742	20,802,628	12,428,991

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash Flows From Operating Activities:
Net loss	$ (3,649,668)	$ (6,644,898)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	307,905	170,751
Amortization of debt discounts and deferred financing costs	6,130	72,252
Stock-based compensation expense	1,565,001	1,538,139
Warrant repricing expense	0	1,929,818
Loss on disposal of property and equipment	49,840	140,588
Provision for bad debt	1,636	2,503
Changes in operating assets and liabilities:
Accounts receivable	(56,888)	(400,983)
Inventories	16,878	(68,940)
Prepaid expenses and other current assets	(22,010)	10
Accounts payable and other accrued expenses	205,633	57,300
Accrued compensation and related expenses	179,291	(269)
Accrued interest	(1,843)	15,045
Net cash used in operating activities	(1,398,095)	(3,188,684)
Cash Flows From Investing Activities:
Purchases of property and equipment	(1,022,321)	(599,115)
Trademark costs	(24,728)	0
Net cash used in investing activities	(1,047,049)	(599,115)
Cash Flows From Financing Activities:
Proceeds from the common stock offering, net of offering costs	11,405,924	0
Proceeds from April 2016 tender offer, net of offering costs	0	2,244,247
Proceeds from the rights offering, net of offering costs	0	1,000,678
Proceeds from exercise of stock options and warrants	25,438	0
Repayment of related-party notes payable	(656,221)	(178,831)
Net cash provided by financing activities	10,775,141	3,066,094
Net change in cash and cash equivalents	8,329,997	(721,705)
Cash and cash equivalents - beginning of period	4,524,529	5,247,425
Cash and cash equivalents - end of period	12,854,526	4,525,720
Supplemental Disclosure of Non-Cash Financing Activities:
Cumulative undeclared preferred dividends recorded upon conversion of Class A convertible preferred stock and Class B convertible preferred stock into common	0	1,068,055
Reclassification of shipper inventory to fixed assets	0	38,276
Leasehold improvements paid by tenant allowance included in accounts payable and other accrued expenses	0	200,000
Issuance of common stock for accrued board of director compensation	$ 0	$ 26,901

Management's Representation and

Management's Representation and Basis of Presentation	6 Months Ended
	Jun. 30, 2017
Nature of the Business [Abstract]
Management's Representation and Basis of Presentation	Note 1. Management’s Representation and Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared by Cryoport, Inc. (the “Company”, “our” or “we”) in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information, and pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statement presentation. However, the Company believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, all adjustments (consisting primarily of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company’s Transition Report on Form 10-K for the period ended December 31, 2016. The Company has evaluated subsequent events through the date of this filing, and determined that no subsequent events have occurred that would require recognition in the unaudited condensed consolidated financial statements or disclosure in the notes thereto other than as disclosed in the accompanying notes.

Nature of the Business

Nature of the Business	6 Months Ended
	Jun. 30, 2017
Nature of the Business [Abstract]
Nature of Operations	Note 2. Nature of the Business Cryoport is the premier provider of cryogenic logistics solutions to the life sciences industry through its purpose-built proprietary packaging, information technology and specialized cold chain logistics expertise. The Company provides leading edge logistics solutions for biologic materials, such as immunotherapies, stem cells, CAR-T cells and reproductive cells for clients worldwide. Leading global companies, such as FedEx, UPS and DHL have each separately selected Cryoport as the preferred cryogenic logistics provider for time- and temperature-sensitive biological material. Cryoport actively supports points-of-care, contract research organizations, central laboratories, pharmaceutical and biotechnology companies, contract manufacturers and university researchers. The Company is a Nevada corporation and its common stock is traded on the NASDAQ Capital Market exchange under the ticker symbol “CYRX.”

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 3. Summary of Significant Accounting Policies Principles of Consolidation The condensed consolidated financial statements include the accounts of Cryoport, Inc. and its wholly owned subsidiary, Cryoport Systems, Inc. All intercompany accounts and transactions have been eliminated. In June 2017, the Company established Cryoport Europe Limited, an English company, as a wholly-owned subsidiary of Cryoport Systems, Inc. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from estimated amounts. The Company’s significant estimates include the allowance for doubtful accounts, recoverability of long-lived assets, allowance for inventory obsolescence, deferred taxes and their accompanying valuations, and valuation of equity instruments and conversion features. Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, related-party notes payable, accounts payable and accrued expenses. The carrying value for all such instruments, except for related-party notes payable, approximates fair value at June 30, 2017 and December 31, 2016 due to their short-term nature. The difference between the fair value and recorded values of the related-party notes payable is not significant. Cash and Cash Equivalents The Company considers highly liquid investments with original maturities of 90 Customers The Company grants credit to customers within the United States and to a limited number of international customers and does not require collateral. Revenues from international customers are generally secured by advance payments except for established foreign customers. The Company generally requires advance or credit card payments for initial revenues from new customers. The Company’s ability to collect receivables can be affected by economic fluctuations in the geographic areas and industries served by the Company. Reserves for uncollectible amounts are provided based on past experience and a specific analysis of the accounts, which management believes is sufficient. Accounts receivable at June 30, 2017 and December 31, 2016 are net of reserves for doubtful accounts of $ 60,000 75,000 The Company’s customers are in the biotechnology, pharmaceutical and life sciences industries. Consequently, there is a concentration of accounts receivable within these industries, which is subject to normal credit risk. There were no customers that accounted for more than 10 The Company has revenue from foreign customers primarily in Europe, Japan, Canada, India and Australia. During the six months ended June 30, 2017 and 2016, the Company had revenues from foreign customers of approximately $ 714,600 508,400 12.7 14.6 10.9 10 Inventories The Company’s inventories consist of packaging materials and accessories that are used as part of the solutions provided by the Company to its customers or are sold to customers directly. Inventories are stated at the lower of cost and net realizable value. Cost is determined using the standard cost method which approximates the first-in, first-to-expire method. Inventories are reviewed periodically for slow-moving or obsolete status. The Company writes down the carrying value of its inventories to reflect situations in which the cost of inventories is not expected to be recovered. Once established, write-downs of inventories are considered permanent adjustments to the cost basis of the obsolete or excess inventories. Raw materials and finished goods include material costs less reserves for obsolete or excess inventories. The Company evaluates the current level of inventories considering historical trends and other factors, such as selling prices and costs of completion, disposal and transportation, and based on the evaluation, records adjustments to reflect inventories at net realizable value. These adjustments are estimates, which could vary significantly from actual results if future economic conditions, customer demand, competition or other relevant factors differ from expectations. These estimates require us to make assessments about future demand for the Company’s products in order to categorize the status of such inventories items as slow-moving, obsolete or in excess-of-need. These estimates are subject to the ongoing accuracy of the Company’s forecasts of market conditions, industry trends, competition and other factors. Property and Equipment The Company provides shipping containers, the Cryoport Express ® Property and equipment are recorded at cost. Cryoport Express ® 52 44 Betterments, renewals and extraordinary repairs that extend the lives of the assets are capitalized; other repairs and maintenance charges are expensed as incurred. The cost and related accumulated depreciation and amortization applicable to assets retired are removed from the accounts, and the gain or loss on disposition is recognized in the condensed consolidated statements of operations. Intangible Assets Intangible assets are comprised of patents and trademarks and software development costs. The Company capitalizes costs of obtaining patents and trademarks, which are amortized, using the straight-line method over their estimated useful life of five years once the patent or trademark has been issued. The Company capitalizes certain costs related to software developed for internal use. Software development costs incurred during the preliminary or maintenance project stages are expensed as incurred, while costs incurred during the application development stage are capitalized and amortized using the straight-line method over the estimated useful life of the software, which is five years. Capitalized costs include purchased materials and costs of services including the valuation of warrants issued to consultants. Long-lived Assets If indicators of impairment exist, we assess the recoverability of the affected long-lived assets by determining whether the carrying value of such assets can be recovered through undiscounted future operating cash flows. If impairment is indicated, we measure the amount of such impairment by comparing the fair value to the carrying value. We believe the future cash flows to be received from the long-lived assets will exceed the assets’ carrying value, and accordingly, we have not recognized any impairment losses through June 30, 2017. Deferred Financing Costs Deferred financing costs represent costs incurred in connection with the issuance of notes payable and equity financings. Deferred financing costs related to the issuance of debt are reported as a direct deduction from the face amount of the related debt, and are amortized over the term of the financing instrument using the effective interest method. Offering costs from equity financings are netted against the gross proceeds received from the related equity financing. Income Taxes The Company accounts for income taxes under the provision of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740, Income Taxes, or ASC 740. As of June 30, 2017 and December 31, 2016, there were no unrecognized tax benefits included in the accompanying condensed consolidated balance sheets that would, if recognized, affect the effective tax rates. 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. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. Based on the weight of available evidence, the Company’s management has determined that it is more likely than not that the net deferred tax assets will not be realized. Therefore, the Company has recorded a full valuation allowance against the net deferred tax assets. The Company’s income tax provision consists of state minimum taxes. The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had no accrual for interest or penalties on its condensed consolidated balance sheets at June 30, 2017 and December 31, 2016 and has not recognized interest and/or penalties in the condensed consolidated statements of operations for the three months ended June 30, 2017 and 2016. The Company is subject to taxation in the U.S. and various state jurisdictions. As of June 30, 2017, the Company is no longer subject to U.S. federal examinations for years before 2012 and for California franchise and income tax examinations for years before 2011. However, to the extent allowed by law, the taxing authorities may have the right to examine prior periods where net operating losses were generated and carried forward, and make adjustments up to the amount of the net operating loss carry forward amount. The Company is not currently under examination by United States federal or state jurisdictions. Revenue Recognition The Company provides shipping containers to its customers and charges a fee in exchange for the use of the container. The Company’s arrangements are similar to the accounting standard for leases since they convey the right to use the containers over a period of time. The Company retains title to the containers and provides its customers the use of the container for a specified shipping cycle. At the culmination of the customer’s shipping cycle, the container is returned to the Company. The Company recognizes revenue for the use of the shipper at the time of the delivery of the shipper to the end user of the enclosed materials, and at the time that collectability is reasonably certain. Revenue is based on gross amounts, net of discounts and allowances. The Company also provides logistics support and management to some customers, which may include onsite logistics personnel. Revenue is recognized for these services as services are rendered and at the time that collectability is reasonably certain. Accounting for Shipping and Handling Revenue, Fees and Costs The Company classifies amounts billed for shipping and handling as revenue. Shipping and handling fees and costs are included in cost of revenues in the accompanying condensed consolidated statements of operations. Engineering and Development Expenses Expenditures relating to engineering and development are expensed in the period incurred. Stock-Based Compensation The Company accounts for stock-based payments to employees and directors in accordance with stock-based payment accounting guidance which requires all stock-based payments to employees and directors, including grants of employee stock options and warrants, to be recognized based upon their fair values. The fair value of stock-based awards is estimated at the grant date using the Black-Scholes Option Pricing Model (“Black-Scholes”) and the portion that is ultimately expected to vest is recognized as compensation cost over the requisite service period. The determination of fair value using Black-Scholes is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables, including expected stock price volatility, risk-free interest rate, expected dividends and projected employee stock option exercise behaviors. The Company accounts for forfeitures of unvested awards as they occur. The Company’s stock-based compensation plans are discussed further in Note 7. Equity Instruments Issued to Non-Employees for Acquiring Goods or Services Issuances of the Company’s common stock for acquiring goods or services are measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The measurement date for the fair value of the equity instruments issued to consultants or vendors is determined at the earlier of (i) the date at which a commitment for performance to earn the equity instruments is reached (a “performance commitment” which would include a penalty considered to be of a magnitude that is a sufficiently large disincentive for nonperformance) or (ii) the date at which performance is complete. When it is appropriate for the Company to recognize the cost of a transaction during financial reporting periods prior to the measurement date, for purposes of recognition of costs during those periods, the equity instrument is measured at the then-current fair values at each of those interim financial reporting dates. Basic and Diluted Net Income (Loss) Per Share We calculate basic and diluted net income (loss) per share attributable to common stockholders using the weighted average number of common shares outstanding during the periods presented, and adjust the amount of net income (loss) used in this calculation for deemed preferred stock dividends and cumulative preferred stock dividends, whether they are earned or not during the period. In periods of a net loss position, basic and diluted weighted average shares are the same. For the diluted earnings per share calculation, we adjust the weighted average number of common shares outstanding to include dilutive stock options, warrants and shares associated with the conversion of convertible debt and convertible preferred stock outstanding during the periods. As of June 30, 2017 and December 31, 2016, the Company had no cumulative, undeclared, dividends that have not been accrued related to its preferred stock. During the six months ended June 30, 2017 and 2016, undeclared dividends totaling $ 0 75,460 The following shows the amounts used in computing net loss per share for the six months ended June 30, 2017 and 2016: Six Months Ended June 30, 2017 2016 Net loss $ (3,649,668) $ (6,644,898) Add: Undeclared cumulative preferred dividends — (75,460) Net loss attributable to common stockholders $ (3,649,668) $ (6,720,358) Weighted average common shares issued and outstanding - basic and diluted 20,802,628 12,428,991 Basic and diluted net loss per shareattributable to common stockholders $ (0.18) $ (0.54) The following table sets forth the number of shares excluded from the computation of diluted loss per share, as their inclusion would have been anti-dilutive: Six Months Ended June 30, 2017 2016 Stock options 513,746 58,269 Warrants 875,947 2,495,464 1,389,693 2,553,733 Segment Reporting We currently operate in one reportable segment and our Chief Executive Officer is the chief operating decision maker. Fair Value Measurements We measure fair value based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. These tiers include the following: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that are accessible at the measurement date. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. These inputs include quoted prices for similar assets or liabilities; quoted market 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 assets or liabilities. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as consider counterparty credit risk in the assessment of fair value. We have no assets or liabilities that are required to be measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016. Foreign Currency Transactions We record foreign currency transactions at the exchange rate prevailing at the date of the transaction with resultant gains and losses being included in results of operations. Foreign currency transaction gains and losses have not been significant for any of the periods presented. Balance Sheet Arrangements We do not currently have any off balance sheet arrangements. Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standard Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”. ASU 2014-09 supersedes the revenue recognition requirements in FASB Topic 605, “Revenue Recognition”. The ASU implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The amendment also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. In August 2015, the FASB issued ASU No. 2015-14 which deferred the effective date by one year for public entities and others. The amendments in this ASU are effective for interim and annual periods beginning after December 15, 2017 for public business entities, certain not-for-profit entities, and certain employee benefit plans. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Management has not selected a transition method and is currently assessing the impact the adoption of ASU 2014-09 will have on our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory”. The amendments in this update apply to inventory that is measured using first-in, first-out (FIFO) or average cost. They do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. Other than the change in the subsequent measurement guidance from the lower of cost or market to the lower of cost and net realizable value for inventory within the scope of this update, there are no other substantive changes to the guidance on measurement of inventory. The amendments in this update more closely align the measurement of inventory in International Financial Reporting Standards (IFRS) and are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company has adopted this guidance on January 1, 2017 and the adoption of ASU No. 2015-11 did not have an impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases”, which provides for a comprehensive change to lease accounting. The new standard requires that a lessee recognize a lease obligation liability and a right-to-use asset for virtually all leases of property, plant and equipment, subsequently amortized over the lease term. The new standard is effective for fiscal years beginning after December 15, 2018, with a modified retrospective transition. Management is currently evaluating the impact this standard will have on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The amendments in this ASU are effective for the reporting periods beginning after December 15, 2016 and early application is permitted. The Company has adopted this guidance on January 1, 2017 and the adoption of ASU No. 2016-09 did not have an impact on our consolidated financial statements.

Related-Party Transactions

Related-Party Transactions	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Related-Party Transactions	Note 4. Related-Party Transactions As of June 30, 2017 and December 31, 2016, the Company had aggregate principal balances of $ 0 646,700 Related-Party Notes Payable On March 1, 2016, we entered into definitive agreements with Patrick Mullens, M.D., Maryl Petreccia and Jeffrey Dell, M.D. to amend and restate the outstanding notes pursuant to certain Second Amended and Restated Promissory Notes dated as of February 29, 2016 (the “Amended and Restated Notes”). As of March 31, 2017, the three note holders had outstanding principal balances of $268,900, $ 160,000 125,400 The Amended and Restated Notes increased the interest rate to 7% per annum, extended the term to April 1, 2017, and modified the repayment provisions to provide for (i) repayment on March 1, 2016 of the outstanding amount of interest accrued through February 29, 2016, (ii) repayment of 10% of the original principal balance and accrued interest of such notes on a quarterly basis commencing April 1, 2016, and (iii) payment of the remaining outstanding balance on April 1, 2017. 11,910 7,088 5,553 1.88 5,000 26,900 6,100 8,200 Related-party interest expense under these notes was $ 9,600 30,183 0 11,400

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 5. Commitments and Contingencies Facility and Equipment Leases We lease 27,600 February 28, 2023 24,700 Employment Agreements We have entered into employment agreements with certain of our officers under which payment and benefits would become payable in the event of termination by us for any reason other than cause, or upon a change in control of our Company, or by the employee for good reason. Consulting and Engineering Services On September 16, 2015, the Company entered into the Purchase and Sale Agreement (the “Purchase and Sale Agreement”), by and between KLATU Networks, LLC (“KLATU”) and the Company. Pursuant to the Purchase and Sale Agreement, the Company purchased from KLATU certain intellectual property and intellectual property rights related to the Company’s Cryoportal TM 400,000 200,000 Concurrently with entering into the Purchase and Sale Agreement, on September 16, 2015, the Company and KLATU entered into the Amended and Restated Master Consulting and Engineering Services Agreement (the “Amended and Restated Master Consulting and Engineering Services Agreement”) to amend and restate the Master Consulting and Engineering Services Agreement. The Amended and Restated Master Consulting and Engineering Services Agreement provides a framework for KLATU to perform certain consulting, software and hardware engineering development services as mutually agreed upon and further set forth in one or more Statements of Work (as defined in the Amended and Restated Master Consulting and Engineering Services Agreement). To ensure the availability of KLATU personnel to perform services pursuant to the Amended and Restated Master Consulting and Engineering Services Agreement, the Company agreed to pay KLATU a minimum of $ 25,000 Consulting fees for services provided by KLATU were $ 115,500 157,270 Litigation The Company may become a party to product litigation in the normal course of business. The Company accrues for open claims based on its historical experience and available insurance coverage. In the opinion of management, there are no legal matters involving the Company that would have a material adverse effect upon the Company’s consolidated financial condition or results of operations. Indemnities and Guarantees The Company has made certain indemnities and guarantees, under which it may be required to make payments to a guaranteed or indemnified party, in relation to certain actions or transactions. The guarantees and indemnities do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has not been obligated nor incurred any payments for these obligations and, therefore, no liabilities have been recorded for these indemnities and guarantees in the accompanying condensed consolidated balance sheets. The Company indemnifies its directors, officers, employees and agents, as permitted under the laws of the States of California and Nevada. In connection with its facility lease, the Company has indemnified its lessor for certain claims arising from the use of the facility. The duration of the guarantees and indemnities varies, and is generally tied to the life of the agreement.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2017
Stockholders' Equity [Abstract]
Stockholders' Equity	Note 6. Stockholders’ Equity Authorized Stock The Company has 50,000,000 0.001 20,833,333 2,500,000 0.001 800,000 0.001 400,000 0.001 400,000 585,000 Common Stock Issued for Services During the six months ended June 30, 2017, 12,113 35,000 Common Stock Reserved for Future Issuance 12.1 Exercise of stock options 5,338,559 Exercise of warrants 6,730,427 Total shares of common stock reserved for future issuances 12,068,986 Common Stock Offering On March 31, 2017, we completed an underwritten public offering (the “Offering”) for gross proceeds of $ 12.7 6,325,000 2.00 825,000 11.4 170,300

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2017
Stock-Based Compensation [Abstract]
Stock-Based Compensation	Note 7. Stock-Based Compensation Warrant Activity We typically issue warrants to purchase shares of our common stock to investors as part of a financing transaction or in connection with services rendered by placement agents and consultants. Our outstanding warrants expire on varying dates through November 2021. Weighted- Weighted- Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price/Share Term (Years) Value (1) Outstanding — December 31, 2016 7,447,478 $ 4.29 Issued — — Exercised (90,000) 2.04 Expired (627,051) 8.36 Outstanding — June 30, 2017 6,730,427 $ 3.94 2.7 $ 8,419,800 Vested (exercisable) — June 30, 2017 6,730,427 $ 3.94 2.7 $ 8,419,800 (1) Aggregate intrinsic value represents the difference between the exercise price of the warrant and the closing market price of our common stock on June 30, 2017, which was $ 4.92 During the six months ended June 30, 2017, the Company issued 37,989 90,000 134,100 Stock Options We have four stock incentive plans: the 2002 Stock Incentive Plan (the “2002 Plan”), the 2009 Stock Incentive Plan (the “2009 Plan”), the 2011 Stock Incentive Plan (the “2011 Plan”) and the 2015 Omnibus Equity Incentive Plan (the “2015 Plan”), (collectively, the “Plans”). The 2002 Plan, the 2009 Plan, and the 2011 Plan (collectively the “Prior Plans”) have been superseded by the 2015 Plan. In October 2015, the stockholders approved the 2015 Plan for 5,000,000 1,490,638 During the six months ended June 30, 2017, we granted stock options at exercise prices equal to or greater than the quoted market price of our common stock on the grant date. Expected life (years) 5.3 – 6.6 Risk-free interest rate 1.8% - 2.1% Volatility 112% – 115% Dividend yield 0% The expected option life assumption is estimated based on the simplified method. Accordingly, the Company has utilized the average of the contractual term of the options and the weighted average vesting period for all options to calculate the expected option term. The risk-free interest rate assumption is based upon observed interest rates appropriate for the expected term of our employee stock options. The expected volatility is based on the historical volatility of our stock commensurate with the expected life of the stock-based award. We do not anticipate paying dividends on the common stock in the foreseeable future. We recognize stock-based compensation expense over the vesting period using the straight-line single option method. Stock-based compensation expense is recognized only for those awards that vest. We account for the forfeitures of unvested awards as they occur. Six Months Ended June 30, Six Months Ended June 30, 2017 2016 Cost of revenues $ 18,523 $ 9,567 General and administrative 1,217,109 1,209,591 Sales and marketing 321,075 312,558 Engineering and development 8,294 6,423 $ 1,565,001 $ 1,538,139 Weighted- Weighted- Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price/Share Term (Years) Value (1) Outstanding — December 31, 2016 4,512,550 $ 4.01 Granted (weighted-average fair value of $2.98 per share) 908,500 3.56 Exercised (13,125) 1.94 Forfeited (17,212) 2.28 Expired (52,154) 8.03 Outstanding — June 30, 2017 5,338,559 $ 3.90 8.1 $ 6,901,200 Vested (exercisable) — June 30, 2017 2,420,322 $ 4.10 7.3 $ 2,805,900 Expected to vest after June 30, 2017 (unexercisable) 2,918,237 $ 3.74 2.4 $ 4,095,300 (1) Aggregate intrinsic value represents the difference between the exercise price of the option and the closing market price of our common stock on June 30, 2017, which was $ 4.92 The total intrinsic value of options exercised during the six months ended June 30, 2017 was $ 34,200 As of June 30, 2017, there was unrecognized compensation expense of $ 7.8 2.4

Subsequent Event

Subsequent Event	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Note 8. Subsequent Event In July 2017, the Company received proceeds of $ 1.8 605,114 (i) October 28, 2019 and (ii) the thirtieth (30th) day after the date that the closing price of the Company’s common stock equals or exceeds $4.50 for ten consecutive trading days. As of June 27, 2017, the closing price of the Company’s common stock was equal to or exceeded $4.50 for ten consecutive trading days. As a result, the supplemental warrants expiration date was accelerated to July 27, 2017 unless exercised prior to that date.

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Summary of Significant Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of Cryoport, Inc. and its wholly owned subsidiary, Cryoport Systems, Inc. All intercompany accounts and transactions have been eliminated. In June 2017, the Company established Cryoport Europe Limited, an English company, as a wholly-owned subsidiary of Cryoport Systems, Inc.
Use of Estimates	Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from estimated amounts. The Company’s significant estimates include the allowance for doubtful accounts, recoverability of long-lived assets, allowance for inventory obsolescence, deferred taxes and their accompanying valuations, and valuation of equity instruments and conversion features.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, related-party notes payable, accounts payable and accrued expenses. The carrying value for all such instruments, except for related-party notes payable, approximates fair value at June 30, 2017 and December 31, 2016 due to their short-term nature. The difference between the fair value and recorded values of the related-party notes payable is not significant.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers highly liquid investments with original maturities of 90
Customers	Customers The Company grants credit to customers within the United States and to a limited number of international customers and does not require collateral. Revenues from international customers are generally secured by advance payments except for established foreign customers. The Company generally requires advance or credit card payments for initial revenues from new customers. The Company’s ability to collect receivables can be affected by economic fluctuations in the geographic areas and industries served by the Company. Reserves for uncollectible amounts are provided based on past experience and a specific analysis of the accounts, which management believes is sufficient. Accounts receivable at June 30, 2017 and December 31, 2016 are net of reserves for doubtful accounts of $ 60,000 75,000 The Company’s customers are in the biotechnology, pharmaceutical and life sciences industries. Consequently, there is a concentration of accounts receivable within these industries, which is subject to normal credit risk. There were no customers that accounted for more than 10 The Company has revenue from foreign customers primarily in Europe, Japan, Canada, India and Australia. During the six months ended June 30, 2017 and 2016, the Company had revenues from foreign customers of approximately $ 714,600 508,400 12.7 14.6 10.9 10
Inventories	Inventories The Company’s inventories consist of packaging materials and accessories that are used as part of the solutions provided by the Company to its customers or are sold to customers directly. Inventories are stated at the lower of cost and net realizable value. Cost is determined using the standard cost method which approximates the first-in, first-to-expire method. Inventories are reviewed periodically for slow-moving or obsolete status. The Company writes down the carrying value of its inventories to reflect situations in which the cost of inventories is not expected to be recovered. Once established, write-downs of inventories are considered permanent adjustments to the cost basis of the obsolete or excess inventories. Raw materials and finished goods include material costs less reserves for obsolete or excess inventories. The Company evaluates the current level of inventories considering historical trends and other factors, such as selling prices and costs of completion, disposal and transportation, and based on the evaluation, records adjustments to reflect inventories at net realizable value. These adjustments are estimates, which could vary significantly from actual results if future economic conditions, customer demand, competition or other relevant factors differ from expectations. These estimates require us to make assessments about future demand for the Company’s products in order to categorize the status of such inventories items as slow-moving, obsolete or in excess-of-need. These estimates are subject to the ongoing accuracy of the Company’s forecasts of market conditions, industry trends, competition and other factors.
Property and Equipment	Property and Equipment The Company provides shipping containers, the Cryoport Express ® Property and equipment are recorded at cost. Cryoport Express ® 52 44 Betterments, renewals and extraordinary repairs that extend the lives of the assets are capitalized; other repairs and maintenance charges are expensed as incurred. The cost and related accumulated depreciation and amortization applicable to assets retired are removed from the accounts, and the gain or loss on disposition is recognized in the condensed consolidated statements of operations.
Intangible Assets	Intangible Assets Intangible assets are comprised of patents and trademarks and software development costs. The Company capitalizes costs of obtaining patents and trademarks, which are amortized, using the straight-line method over their estimated useful life of five years once the patent or trademark has been issued. The Company capitalizes certain costs related to software developed for internal use. Software development costs incurred during the preliminary or maintenance project stages are expensed as incurred, while costs incurred during the application development stage are capitalized and amortized using the straight-line method over the estimated useful life of the software, which is five years. Capitalized costs include purchased materials and costs of services including the valuation of warrants issued to consultants.
Long-lived Assets	Long-lived Assets If indicators of impairment exist, we assess the recoverability of the affected long-lived assets by determining whether the carrying value of such assets can be recovered through undiscounted future operating cash flows. If impairment is indicated, we measure the amount of such impairment by comparing the fair value to the carrying value. We believe the future cash flows to be received from the long-lived assets will exceed the assets’ carrying value, and accordingly, we have not recognized any impairment losses through June 30, 2017.
Deferred Financing Costs	Deferred Financing Costs Deferred financing costs represent costs incurred in connection with the issuance of notes payable and equity financings. Deferred financing costs related to the issuance of debt are reported as a direct deduction from the face amount of the related debt, and are amortized over the term of the financing instrument using the effective interest method. Offering costs from equity financings are netted against the gross proceeds received from the related equity financing.
Income Taxes	Income Taxes The Company accounts for income taxes under the provision of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740, Income Taxes, or ASC 740. As of June 30, 2017 and December 31, 2016, there were no unrecognized tax benefits included in the accompanying condensed consolidated balance sheets that would, if recognized, affect the effective tax rates. 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. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations. Based on the weight of available evidence, the Company’s management has determined that it is more likely than not that the net deferred tax assets will not be realized. Therefore, the Company has recorded a full valuation allowance against the net deferred tax assets. The Company’s income tax provision consists of state minimum taxes. The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had no accrual for interest or penalties on its condensed consolidated balance sheets at June 30, 2017 and December 31, 2016 and has not recognized interest and/or penalties in the condensed consolidated statements of operations for the three months ended June 30, 2017 and 2016. The Company is subject to taxation in the U.S. and various state jurisdictions. As of June 30, 2017, the Company is no longer subject to U.S. federal examinations for years before 2012 and for California franchise and income tax examinations for years before 2011. However, to the extent allowed by law, the taxing authorities may have the right to examine prior periods where net operating losses were generated and carried forward, and make adjustments up to the amount of the net operating loss carry forward amount. The Company is not currently under examination by United States federal or state jurisdictions.
Revenue Recognition	Revenue Recognition The Company provides shipping containers to its customers and charges a fee in exchange for the use of the container. The Company’s arrangements are similar to the accounting standard for leases since they convey the right to use the containers over a period of time. The Company retains title to the containers and provides its customers the use of the container for a specified shipping cycle. At the culmination of the customer’s shipping cycle, the container is returned to the Company. The Company recognizes revenue for the use of the shipper at the time of the delivery of the shipper to the end user of the enclosed materials, and at the time that collectability is reasonably certain. Revenue is based on gross amounts, net of discounts and allowances. The Company also provides logistics support and management to some customers, which may include onsite logistics personnel. Revenue is recognized for these services as services are rendered and at the time that collectability is reasonably certain.
Accounting for Shipping and Handling Revenue, Fees and Costs	Accounting for Shipping and Handling Revenue, Fees and Costs The Company classifies amounts billed for shipping and handling as revenue. Shipping and handling fees and costs are included in cost of revenues in the accompanying condensed consolidated statements of operations.
Engineering and Development Expenses	Engineering and Development Expenses Expenditures relating to engineering and development are expensed in the period incurred.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for stock-based payments to employees and directors in accordance with stock-based payment accounting guidance which requires all stock-based payments to employees and directors, including grants of employee stock options and warrants, to be recognized based upon their fair values. The fair value of stock-based awards is estimated at the grant date using the Black-Scholes Option Pricing Model (“Black-Scholes”) and the portion that is ultimately expected to vest is recognized as compensation cost over the requisite service period. The determination of fair value using Black-Scholes is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables, including expected stock price volatility, risk-free interest rate, expected dividends and projected employee stock option exercise behaviors. The Company accounts for forfeitures of unvested awards as they occur. The Company’s stock-based compensation plans are discussed further in Note 7.
Equity Instruments Issued to Non-Employees for Acquiring Goods or Services	Equity Instruments Issued to Non-Employees for Acquiring Goods or Services Issuances of the Company’s common stock for acquiring goods or services are measured at the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. The measurement date for the fair value of the equity instruments issued to consultants or vendors is determined at the earlier of (i) the date at which a commitment for performance to earn the equity instruments is reached (a “performance commitment” which would include a penalty considered to be of a magnitude that is a sufficiently large disincentive for nonperformance) or (ii) the date at which performance is complete. When it is appropriate for the Company to recognize the cost of a transaction during financial reporting periods prior to the measurement date, for purposes of recognition of costs during those periods, the equity instrument is measured at the then-current fair values at each of those interim financial reporting dates.
Basic and Diluted Net Income (Loss) Per Share	Basic and Diluted Net Income (Loss) Per Share We calculate basic and diluted net income (loss) per share attributable to common stockholders using the weighted average number of common shares outstanding during the periods presented, and adjust the amount of net income (loss) used in this calculation for deemed preferred stock dividends and cumulative preferred stock dividends, whether they are earned or not during the period. In periods of a net loss position, basic and diluted weighted average shares are the same. For the diluted earnings per share calculation, we adjust the weighted average number of common shares outstanding to include dilutive stock options, warrants and shares associated with the conversion of convertible debt and convertible preferred stock outstanding during the periods. As of June 30, 2017 and December 31, 2016, the Company had no cumulative, undeclared, dividends that have not been accrued related to its preferred stock. During the six months ended June 30, 2017 and 2016, undeclared dividends totaling $ 0 75,460 The following shows the amounts used in computing net loss per share for the six months ended June 30, 2017 and 2016: Six Months Ended June 30, 2017 2016 Net loss $ (3,649,668) $ (6,644,898) Add: Undeclared cumulative preferred dividends — (75,460) Net loss attributable to common stockholders $ (3,649,668) $ (6,720,358) Weighted average common shares issued and outstanding - basic and diluted 20,802,628 12,428,991 Basic and diluted net loss per shareattributable to common stockholders $ (0.18) $ (0.54) The following table sets forth the number of shares excluded from the computation of diluted loss per share, as their inclusion would have been anti-dilutive: Six Months Ended June 30, 2017 2016 Stock options 513,746 58,269 Warrants 875,947 2,495,464 1,389,693 2,553,733
Segment Reporting	Segment Reporting We currently operate in one reportable segment and our Chief Executive Officer is the chief operating decision maker.
Fair Value Measurements	Fair Value Measurements We measure fair value based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. These tiers include the following: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that are accessible at the measurement date. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. These inputs include quoted prices for similar assets or liabilities; quoted market 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 assets or liabilities. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as consider counterparty credit risk in the assessment of fair value. We have no assets or liabilities that are required to be measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016.
Foreign Currency Transactions	Foreign Currency Transactions We record foreign currency transactions at the exchange rate prevailing at the date of the transaction with resultant gains and losses being included in results of operations. Foreign currency transaction gains and losses have not been significant for any of the periods presented.
Balance Sheet Arrangements	Balance Sheet Arrangements We do not currently have any off balance sheet arrangements.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standard Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”. ASU 2014-09 supersedes the revenue recognition requirements in FASB Topic 605, “Revenue Recognition”. The ASU implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The amendment also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. In August 2015, the FASB issued ASU No. 2015-14 which deferred the effective date by one year for public entities and others. The amendments in this ASU are effective for interim and annual periods beginning after December 15, 2017 for public business entities, certain not-for-profit entities, and certain employee benefit plans. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. Management has not selected a transition method and is currently assessing the impact the adoption of ASU 2014-09 will have on our consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory”. The amendments in this update apply to inventory that is measured using first-in, first-out (FIFO) or average cost. They do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. Other than the change in the subsequent measurement guidance from the lower of cost or market to the lower of cost and net realizable value for inventory within the scope of this update, there are no other substantive changes to the guidance on measurement of inventory. The amendments in this update more closely align the measurement of inventory in International Financial Reporting Standards (IFRS) and are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company has adopted this guidance on January 1, 2017 and the adoption of ASU No. 2015-11 did not have an impact on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases”, which provides for a comprehensive change to lease accounting. The new standard requires that a lessee recognize a lease obligation liability and a right-to-use asset for virtually all leases of property, plant and equipment, subsequently amortized over the lease term. The new standard is effective for fiscal years beginning after December 15, 2018, with a modified retrospective transition. Management is currently evaluating the impact this standard will have on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The amendments in this ASU are effective for the reporting periods beginning after December 15, 2016 and early application is permitted. The Company has adopted this guidance on January 1, 2017 and the adoption of ASU No. 2016-09 did not have an impact on our consolidated financial statements.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2017
Summary of Significant Accounting Policies [Abstract]
Schedule of Earnings Per Share	The following shows the amounts used in computing net loss per share for the six months ended June 30, 2017 and 2016: Six Months Ended June 30, 2017 2016 Net loss $ (3,649,668) $ (6,644,898) Add: Undeclared cumulative preferred dividends — (75,460) Net loss attributable to common stockholders $ (3,649,668) $ (6,720,358) Weighted average common shares issued and outstanding - basic and diluted 20,802,628 12,428,991 Basic and diluted net loss per shareattributable to common stockholders $ (0.18) $ (0.54) The following table sets forth the number of shares excluded from the computation of diluted loss per share, as their inclusion would have been anti-dilutive: Six Months Ended June 30, 2017 2016 Stock options 513,746 58,269 Warrants 875,947 2,495,464 1,389,693 2,553,733

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2017
Stockholders' Equity [Abstract]
Schedule of Common Stock Reserved for Future Issuance	As of June 30, 2017, approximately 12.1 Exercise of stock options 5,338,559 Exercise of warrants 6,730,427 Total shares of common stock reserved for future issuances 12,068,986

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2017
Stock-Based Compensation [Abstract]
Schedule of Warrant Activity	A summary of warrant activity is as follows: Weighted- Weighted- Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price/Share Term (Years) Value (1) Outstanding — December 31, 2016 7,447,478 $ 4.29 Issued — — Exercised (90,000) 2.04 Expired (627,051) 8.36 Outstanding — June 30, 2017 6,730,427 $ 3.94 2.7 $ 8,419,800 Vested (exercisable) — June 30, 2017 6,730,427 $ 3.94 2.7 $ 8,419,800 (1) Aggregate intrinsic value represents the difference between the exercise price of the warrant and the closing market price of our common stock on June 30, 2017, which was $ 4.92
Schedule of Fair Value Assumptions of Stock Options	The fair value of each option grant was estimated on the date of grant using Black-Scholes with the following weighted average assumptions: Expected life (years) 5.3 – 6.6 Risk-free interest rate 1.8% - 2.1% Volatility 112% – 115% Dividend yield 0%
Schedule of Share-based Payment Awards	Total stock-based compensation expense related to all of our share-based payment awards is comprised of the following: Six Months Ended June 30, Six Months Ended June 30, 2017 2016 Cost of revenues $ 18,523 $ 9,567 General and administrative 1,217,109 1,209,591 Sales and marketing 321,075 312,558 Engineering and development 8,294 6,423 $ 1,565,001 $ 1,538,139
Schedule of Stock Option Activity	A summary of stock option activity is as follows: Weighted- Weighted- Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Shares Price/Share Term (Years) Value (1) Outstanding — December 31, 2016 4,512,550 $ 4.01 Granted (weighted-average fair value of $2.98 per share) 908,500 3.56 Exercised (13,125) 1.94 Forfeited (17,212) 2.28 Expired (52,154) 8.03 Outstanding — June 30, 2017 5,338,559 $ 3.90 8.1 $ 6,901,200 Vested (exercisable) — June 30, 2017 2,420,322 $ 4.10 7.3 $ 2,805,900 Expected to vest after June 30, 2017 (unexercisable) 2,918,237 $ 3.74 2.4 $ 4,095,300 (1) Aggregate intrinsic value represents the difference between the exercise price of the option and the closing market price of our common stock on June 30, 2017, which was $ 4.92

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Schedule of Earnings Per Share) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Net loss	$ (1,860,457)	$ (3,934,714)	$ (3,649,668)	$ (6,644,898)
Undeclared cumulative preferred dividends	0	0	0	(75,460)
Net loss attributable to common stockholders	$ (1,860,457)	$ (3,934,714)	$ (3,649,668)	$ (6,720,358)
Weighted average common shares issued and outstanding - basic and diluted	23,965,825	14,199,742	20,802,628	12,428,991
Basic and diluted net loss per shareattributable to common stockholders	$ (0.08)	$ (0.28)	$ (0.18)	$ (0.54)

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Schedule of Antidilutive Shares) (Details) - shares	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,389,693	2,553,733
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	513,746	58,269
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	875,947	2,495,464

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Significant Accounting Policies Additional Information [Line Items]
Allowance for doubtful accounts receivable	$ 60,000		$ 60,000		$ 75,000
Preferred Stock Dividends, Income Statement Impact	$ 0	$ 0	$ 0	$ 75,460
Maturity Period Of Highly Liquid Investments			90 days
Cryogenic Shippers [Member]
Significant Accounting Policies Additional Information [Line Items]
Property Plant Equipment Ownership Percentage	52.00%		52.00%
Data loggers [Member]
Significant Accounting Policies Additional Information [Line Items]
Property Plant Equipment Ownership Percentage					44.00%
Foreign Customers [Member]
Significant Accounting Policies Additional Information [Line Items]
Revenues			$ 714,600	$ 508,400
Accounts Receivable [Member]
Significant Accounting Policies Additional Information [Line Items]
Concentration risk, percentage			10.00%		10.00%
Sales Revenue, Net [Member]
Significant Accounting Policies Additional Information [Line Items]
Concentration risk, percentage			10.00%	10.00%
Sales Revenue, Net [Member] | Customer One [Member]
Significant Accounting Policies Additional Information [Line Items]
Concentration risk, percentage				14.60%
Sales Revenue, Net [Member] | Foreign Customers [Member]
Significant Accounting Policies Additional Information [Line Items]
Concentration risk, percentage			12.70%	10.90%

Related-Party Transactions (Nar

Related-Party Transactions (Narrative) (Details) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2017	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Mar. 31, 2016
Aggregate principal balances		$ 0		$ 646,700
Interest Payable		0		$ 11,400
Related-party interest expense		$ 9,600	$ 30,183
Common stock exercise price	$ 1.88
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		90,000
Legal Fees	$ 5,000
Amended and Restated Notes [Member]
Amortization of Debt Discount (Premium)		$ 6,100	$ 8,200
Debt Instrument, Payment Terms		The Amended and Restated Notes increased the interest rate to 7% per annum, extended the term to April 1, 2017, and modified the repayment provisions to provide for (i) repayment on March 1, 2016 of the outstanding amount of interest accrued through February 29, 2016, (ii) repayment of 10% of the original principal balance and accrued interest of such notes on a quarterly basis commencing April 1, 2016, and (iii) payment of the remaining outstanding balance on April 1, 2017.
Warrants Not Settleable in Cash, Fair Value Disclosure					$ 26,900
Patrick Mullins, M.D. [Member]
Aggregate principal balances	$ 268,900
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	11,910
Maryl Petreccia [Member]
Aggregate principal balances	$ 160,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	7,088
Jeffrey Dell, M.D. [Member]
Aggregate principal balances	$ 125,400
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	5,553

Commitments and Contingencies (

Commitments and Contingencies (Narrative) (Details)	1 Months Ended	6 Months Ended
	Sep. 16, 2015USD ($)	Jun. 30, 2017USD ($)ft²	Jun. 30, 2016USD ($)
Property Subject to or Available for Operating Lease [Line Items]
Consulting Service Fee		$ 115,500	$ 157,270
KLATU Networks, LLC [Member] | Purchase and Sale Agreement [Member]
Property Subject to or Available for Operating Lease [Line Items]
Technology Services Costs	$ 400,000
Installment amount of Service costs	200,000
Minimum [Member] | KLATU Networks, LLC [Member]
Property Subject to or Available for Operating Lease [Line Items]
Technology Services Costs	$ 25,000
Irvine, California Facility [Member]
Property Subject to or Available for Operating Lease [Line Items]
Estimated Base Rent Under Lease		$ 24,700
Lease Expiration Date		Feb. 28, 2023
Land Subject to Ground Leases | ft²		27,600

Stockholders' Equity (Schedule

Stockholders' Equity (Schedule of Common Stock Reserved for Future Issuance) (Details)	Jun. 30, 2017shares
Class of Stock [Line Items]
Common Stock Reserved for Future Issuance	12,068,986
Exercise Of Stock Options [Member]
Class of Stock [Line Items]
Common Stock Reserved for Future Issuance	5,338,559
Exercise Of Warrants [Member]
Class of Stock [Line Items]
Common Stock Reserved for Future Issuance	6,730,427

Stockholders' Equity (Narrative

Stockholders' Equity (Narrative) (Details) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2017	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Nov. 30, 2015	Apr. 30, 2015	Feb. 28, 2015	May 31, 2014
Class of Stock [Line Items]
Common stock, shares authorized		50,000,000		50,000,000
Common stock, par value		$ 0.001		$ 0.001
Preferred stock, par value		$ 0.001		$ 0.001
Preferred stock, shares authorized		2,500,000		2,500,000
Common Stock, Capital Shares Reserved For Future Issuance		12,068,986
Proceeds from Issuance of Common Stock		$ 11,405,924	$ 0
Director [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, Issued for Services		12,113
Stock Issued During Period, Value, Issued for Services		$ 35,000
Underwritten Public Offering [Member]
Class of Stock [Line Items]
Stock Issued During Period, Shares, New Issues	6,325,000
Stock Issued During Period, Value, New Issues	$ 12,700,000
Proceeds from Issuance of Common Stock	$ 11,400,000
Shares Issued, Price Per Share	$ 2
Over-Allotment Option [Member]
Class of Stock [Line Items]
Stock Issued During Period, Value, Issued for Services	$ 825,000
Public Offering [Member]
Class of Stock [Line Items]
Payments of Stock Issuance Costs	$ 170,300
Minimum [Member]
Class of Stock [Line Items]
Common stock, shares authorized					20,833,333
Class A convertible preferred stock [Member]
Class of Stock [Line Items]
Preferred stock, par value		$ 0.001		$ 0.001				$ 0.001
Preferred stock, shares authorized		800,000		800,000				800,000
Class B Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, par value							$ 0.001
Preferred stock, shares authorized							400,000
Class B Convertible Preferred Stock [Member] | Maximum [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized						585,000
Class B Convertible Preferred Stock [Member] | Minimum [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized						400,000

Stock-Based Compensation (Summa

Stock-Based Compensation (Summary of Warrant Activity) (Details) - Warrants [Member]	6 Months Ended
	Jun. 30, 2017USD ($)$ / sharesshares
Number of Shares
Outstanding | shares	7,447,478
Issued | shares	0
Exercised | shares	(90,000)
Expired | shares	(627,051)
Outstanding | shares	6,730,427
Vested (exercisable) | shares	6,730,427
Weighted-Average Exercise Price/Share
Outstanding | $ / shares	$ 4.29
Issued | $ / shares	0
Exercised | $ / shares	2.04
Expired | $ / shares	8.36
Outstanding | $ / shares	3.94
Vested (exercisable) | $ / shares	$ 3.94
Weighted-Average Remaining Contractual Term (Years)
Outstanding	2 years 8 months 12 days
Vested (exercisable)	2 years 8 months 12 days
Aggregated Intrinsic Value
Outstanding | $	$ 8,419,800	[1]
Vested (exercisable) | $	$ 8,419,800	[1]
[1]	Aggregate intrinsic value represents the difference between the exercise price of the warrant and the closing market price of our common stock on June 30, 2017, which was $4.92 per share.

Stock-Based Compensation (Sched

Stock-Based Compensation (Schedule of Assumptions Used to Estimate Fair Value of Stock Options) (Details) - Stock Options [Member]	6 Months Ended
	Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate, minimum	1.80%
Risk-free interest rate, maximum	2.10%
Volatility, minimum	112.00%
Volatility, maximum	115.00%
Dividend yield	0.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (years)	5 years 3 months 18 days
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life (years)	6 years 7 months 6 days

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation	$ 1,565,001	$ 1,538,139
Cost of Revenues [Member]
Share-based Compensation	18,523	9,567
General and Administrative Expense [Member]
Share-based Compensation	1,217,109	1,209,591
Selling and Marketing Expense [Member]
Share-based Compensation	321,075	312,558
Engineering And Development [Member]
Share-based Compensation	$ 8,294	$ 6,423

Stock-Based Compensation (Sum28

Stock-Based Compensation (Summary of Stock Option Activity) (Details) - Stock Options [Member]	6 Months Ended
	Jun. 30, 2017USD ($)$ / sharesshares
Number of Shares
Outstanding | shares	4,512,550
Granted | shares	908,500
Exercised | shares	(13,125)
Forfeited | shares	(17,212)
Expired | shares	(52,154)
Outstanding | shares	5,338,559
Vested (exercisable) | shares	2,420,322
Expected to vest after (unexercisable) | shares	2,918,237
Weighted-Average Exercise Price/Share
Outstanding | $ / shares	$ 4.01
Granted | $ / shares	3.56
Exercised | $ / shares	1.94
Forfeited | $ / shares	2.28
Expired | $ / shares	8.03
Outstanding | $ / shares	3.90
Vested (exercisable) | $ / shares	4.10
Expected to vest after (unexercisable) | $ / shares	$ 3.74
Weighted-Average Remaining Contractual Term (Years)
Outstanding	8 years 1 month 6 days
Vested (exercisable)	7 years 3 months 18 days
Expected to vest after (unexercisable)	2 years 4 months 24 days
Aggregated Intrinsic Value
Outstanding | $	$ 6,901,200	[1]
Vested (exercisable) | $	2,805,900	[1]
Expected to vest after (unexercisable) | $	$ 4,095,300	[1]
[1]	Aggregate intrinsic value represents the difference between the exercise price of the option and the closing market price of our common stock on June 30, 2017, which was $4.92 per share.

Stock-Based Compensation (Narra

Stock-Based Compensation (Narrative) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2017	Oct. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, Cashless Exercise Of Warrants	37,989
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	90,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value	$ 34,200
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value per share	$ 4.92
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Exercises in Period, Intrinsic Value	$ 134,100
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to unvested stock options	$ 7,800,000
Weighted average recognition period	2 years 4 months 24 days
Intrinsic value per share	$ 4.92
Fair Value Assumptions, Exercise Price	$ 2.98
Plan 2015 [Member] | Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total shares available for future grant	1,490,638	5,000,000

Subsequent Event (Narrative) (D

Subsequent Event (Narrative) (Details) - USD ($)	1 Months Ended	6 Months Ended
	Jul. 31, 2017	Jun. 30, 2017	Jun. 30, 2016
Subsequent Event [Line Items]
Proceeds from Warrant Exercises		$ 25,438	$ 0
Class Of Warrant Or Right, Exercisable Term	(i) October 28, 2019 and (ii) the thirtieth (30th) day after the date that the closing price of the Company’s common stock equals or exceeds $4.50 for ten consecutive trading days.
Subsequent Event [Member]
Subsequent Event [Line Items]
Proceeds from Warrant Exercises	$ 1,800,000
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised	605,114