Table of Contents
Notes to Consolidated Financial Statements (Continued)
2. Summary of Significant Accounting Policies (Continued)
the remaining unrecognized compensation cost should be recognized over the remaining service period. The ASU is effective for annual and interim periods beginning after December 15,
2015 with early adoption permitted. The Company is evaluating the application of this ASU, but has not yet determined the potential effects it may have on the Company's consolidated financial
November 2014, the FASB issued ASU No. 2014-16, Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is
More Akin to Debt or to Equity ("ASU 2014-16"). The guidance requires an entity to determine the nature of the host contract by considering all stated and implied substantive
terms and features of the hybrid financial instrument, weighing each term and feature on the basis of the relevant facts and circumstances (commonly referred to as the whole-instrument approach). ASU
2014-16 applies to all entities and is effective for annual periods beginning after December 15, 2015, and interim periods thereafter. Early adoption is permitted. The Company is evaluating the
application of this ASU, but has not yet determined the potential effects it may have on the Company's consolidated financial statements.
Deferred Initial Public Offering Costs (unaudited)
Deferred initial public offering costs, which primarily consist of direct, incremental legal, accounting and other professional fees
relating to the initial public offering ("IPO"), are included in other long-term assets in the unaudited condensed consolidated balance sheet. These deferred costs will be offset against the IPO
proceeds upon the consummation of the offering. In the event the offering is terminated, deferred offering costs will be expensed. As of September 30, 2015, the Company deferred $337,300 of IPO
3. Consolidated Variable Interest Entities
BioLife Cell Bank Dallas, LLC
Prior to the development of treatments for rare and life-threatening neurological genetic diseases, the Company's business was focused
on the Stem Cell Business.
Company formed two wholly-owned subsidiaries, BioLife Cell Bank Management, LLC ("BioLife Management") and BioLife Cell Bank Intellectual Property, LLC ("BioLife IP")
to hold certain equipment and intellectual property necessary to conduct the Stem Cell Business.
Company then licensed the use of the equipment and intellectual property necessary to conduct the Stem Cell Business, to a new business, BioLife Cell Bank Dallas, LLC
("BioLife Dallas") which was formed on April 13, 2010, to conduct these operations. The initial members of BioLife Dallas were Sangreal Capital Fund I, LP ("Sangreal Capital") and West
Summit Investments, LP ("West Summit") and the Company was appointed as BioLife Dallas' sole director providing it management power over its business and affairs. The principals behind both
Sangreal Capital and West Summit were founders and Board members of the Company.
May 2010, BioLife Dallas began to accept subscriptions for its limited liability company shares. As of December 31, 2012, the Company had made investments totaling $1,250,000
in BioLife Dallas. During 2013, the Company made additional investments of $250,000 such that the total capital invested by the Company in BioLife Dallas as of December 31, 2013 was $1,500,000
(out of an aggregate $2,100,000 in investment), representing 37.5% of BioLife Dallas's outstanding