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)

4. Discontinued Operations (Continued)

consolidated VIE of the Company. The Harkey and West Summit Notes were unsecured and carried interest at a rate of 7.5% per annum, with a stated maturity of September 30, 2010. John Harkey is a founder and Board Member of the Company and West Summit is a founder of the Company and the principal of West Summit is a former Board Member of the Company.

          On September 30, 2010 the Harkey and West Summit Notes were amended to extend their respective maturity dates to December 31, 2011. On January 1, 2012, the Harkey and West Summit Notes were further amended to extend their respective maturity dates to December 31, 2012. On January 1, 2013, the Harkey and West Summit Notes were further amended to extend their respective maturity dates to December 31, 2015.

          The Harkey and West Summit Notes were disposed of in connection with the divestiture of BioLife Dallas.

          The losses attributed to the Stem Cell Business for the years ended December 31, 2013 and 2014 and the nine months ended September 30, 2014 and 2015 (unaudited) were as follows:

 
  Years Ended
December 31,
  Nine Months Ended September 30,  
 
 
2013
 
2014
 
2014
 
2015
 
 
   
   
  (unaudited)
 

Results of discontinued operations

                         

Revenues

  $ 49,094   $ 2,549   $ 2,549   $  

Cost of goods sold

    (80,148 )            

General and administrative expenses

    (387,345 )   (8,504 )   (8,504 )    

Research and development expenses

    (23,381 )            

Results from operating activities

    (441,780 )   (5,955 )   (5,955 )    

Interest expense

    33,750     2,774     2,774      

Results from operating activities, before tax

    (475,530 )   (8,729 )   (8,729 )    

Income tax expense (benefit)

                 

Results from operating activities, net of tax

    (475,530 )   (8,729 )   (8,729 )    

Loss on sale of discontinued operation

        145,199     145,199      

Net loss

  $ (475,530 ) $ (153,928 ) $ (153,928 ) $  

          During the year ended December 31, 2013, the Company recognized a $134,125 impairment loss on fixed assets utilized in its Stem Cell Business as a result of a decision to exit that business. Such amount is included in general and administrative expense in the above table for the year ended December 31, 2013.

          The Company does not believe there is an effect of income taxes on discontinued operations. Due to the Company's ongoing operating losses, the uncertainty of future profitability and limitations on the utilization of net operating loss carry-forwards under Section 382 of the Internal Revenue Code of 1986, as amended (the "IRC"), a valuation allowance has been recorded to fully offset the Company's deferred tax asset (see Note 17).

F-19



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