Table of Contents
Notes to Consolidated Financial Statements
AveXis, Inc. was formed on March 8, 2010 in the state of Delaware as BioLife Cell Bank, LLC. In January 2012, the Company converted from a limited liability company
("LLC") to a corporation, BioLife Cell Bank, Inc. In January 2014, the Company amended and restated its Certificate of Incorporation to change its name to AveXis, Inc. ("AveXis" or "the
Company is a clinical-stage gene therapy company dedicated to developing and commercializing gene therapy treatments for patients suffering from rare and life-threatening
neurological genetic diseases. The Company's initial product candidate, AVXS-101, is a gene therapy product candidate currently in a Phase 1 clinical trial for the treatment of spinal muscular
atrophy, or SMA, Type 1 ("SMA"), the leading genetic cause of infant mortality.
Liquidity and Risks
As of December 31, 2014, the Company generated an accumulated deficit of $20,076,619 since inception and will require
substantial additional capital to fund its research and development. In March 2015 (unaudited), the Company issued 799,236 shares of Class C preferred stock for aggregate proceeds of
$5,000,020. In May 2015 (unaudited), the Company issued 733,138 shares of Class B-1 preferred stock for aggregate proceeds of $2,500,000. In September 2015 (unaudited), the Company issued
2,241,380 shares of Class D preferred stock for aggregate net proceeds of $64,787,549. As of September 30, 2015 (unaudited), the Company generated an accumulated deficit of $45,389,656
since inception and had cash and cash equivalents of $69,706,462. The Company believes its cash and cash equivalents as of September 30, 2015, are sufficient cash resources to allow the Company
to fund its current operations for at least the next twelve months from October 16, 2015. As the Company continues to incur losses, transition to profitability is dependent upon the successful
development, approval, and commercialization of its product candidate and achieving a level of revenues adequate to support the Company's cost structure. The Company may never achieve profitability,
and unless and until it does, the Company will continue to need to raise additional capital. Management intends to fund future operations through additional private or public debt or equity offerings
and may seek additional capital through arrangements with strategic partners or from other sources.
Company is seeking to complete an initial public offering ("IPO") of its common stock. Upon the closing of a qualified public offering, the Company's outstanding Class B-1,
B-2, C and D (see Note 10) preferred stock will automatically convert on a one-for-one basis into shares of common stock.
the event the Company does not complete an IPO, the Company expects to seek additional funding through private financings, debt financings, collaboration agreements, or government
grants. The Company may not be able to obtain financing on acceptable terms, or at all, and the Company may not be able to enter into collaboration arrangements or obtain government grants. The terms
of any financing may adversely affect the holdings or the rights of the Company's stockholders. If the Company is unable to obtain funding, the Company could be forced to delay, reduce, or eliminate
its research and development programs, product candidate expansion, or commercialization efforts, which could adversely affect its business prospects. Although management continues to pursue these
plans, there is no assurance that the Company will be successful in obtaining sufficient funding on terms acceptable to the Company to fund continuing operations, if at all.