SEC Filings

S-1
AVEXIS, INC. filed this Form S-1 on 01/15/2016
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Table of Contents


AveXis, Inc.

Notes to Consolidated Financial Statements (Continued)

3. Consolidated Variable Interest Entities (Continued)

becoming a consolidated subsidiary of the Company. At the time of the transfer, Sixeva had $58 in cash and cash equivalents and a payable to BioLife Dallas in the amount of $84,500, such that there was no value in the common shares acquired from Mr. Carbona. The $84,500 owed to BioLife Dallas was subsequently forgiven in September 2015 (unaudited).

4. Discontinued Operations

          On January 30, 2014, the Company sold the 150,000 shares of BioLife Dallas held by it back to BioLife Dallas in exchange for $150.00 and resigned as the sole director of BioLife Dallas. Additionally, the Company sold the 1,000 shares of BioLife Management and the 1,000 shares of BioLife IP, held by it, to DGG Holdings (an entity controlled by Dr. David Genecov, a member of the Company's Board) for $20.00 in the aggregate. As a result of these transactions the Company eliminated the operations and cash flows of BioLife Dallas from its ongoing operations and exited the Stem Cell Business. This disposal is a result of a fundamental change in the business and is consistent with the Company's long-term strategy to focus its activities on rare and life-threatening neurological genetic diseases.

          BioLife Dallas had identifiable cash flows that were largely independent of the cash flows of the Company's other assets and liabilities. All net revenues and direct operating costs associated with BioLife Dallas, as well as the loss on sale for both the current and prior periods, are presented as discontinued operations in the accompanying consolidated financial statements. The Company has identified assets and liabilities attributable to the Stem Cell business and has identified them as such. Assets and liabilities as of December 31, 2013 attributed to the Stem Cell Business are as follows:

Assets attributable to discontinued operations

 
 
December 31,
2013
 

Cash

  $ 3,914  

Due from Related Parties: AveXis, Inc. and Sixeva, Inc. (see Note 20)

    710,510  

Total assets attributable to discontinued operations

  $ 714,424  

          Due from related parties consists of amounts owed to BioLife Dallas by the Company for amounts paid by BioLife Dallas on the Company's behalf (see Note 20).

Liabilities attributable to discontinued operations

 
 
December 31,
2013
 

Accounts payable

  $ 10,096  

Accrued expenses

    100,398  

Notes payable

    450,000  

Total liabilities attributable to discontinued operations

  $ 560,494  

          On July 6, 2010, each of John Harkey and West Summit, loaned $225,000 pursuant to Promissory Note Agreements (the "Harkey and West Summit Notes") to BioLife Dallas a

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