Tank issues push Cordlife to $11.6m Q1 loss

The company waived fees for clients affected by the tank lapses.

Cryogenic storage tank lapses led to Cordlife sinking into the red with a net loss of $11.6 million in the first quarter of 2024.

The company attributed its losses to refunding annual fees received since the start of the temperature excursions and waiving subsequent fees for all active Cordlife clients who have stored cord blood units in cryogenic storage tanks and a dry shipper deemed by MOH's expert panel to be at high risk due to the temperature excursions.

Excluding the refunds, the company would still report a net loss of $1.9m in the quarter due to a decline in revenue.

The company suffered a revenue reversal of $9.7m in Q1 2024, which included $0.5m in contract liabilities relating to future storage obligations for affected clients.

For Q1 2024, revenue was negative $0.2m.

Excluding the reversal, revenue would still decline by 33.0% YoY to $9.4m.