SEC Filings

S-1
AVEXIS, INC. filed this Form S-1 on 01/15/2016
Entire Document
 

Table of Contents


AveXis, Inc.

Notes to Consolidated Financial Statements (Continued)

2. Summary of Significant Accounting Policies (Continued)

measurements may be classified based on the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities using the following three levels:

              Level 1 — Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

              Level 2 — Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

              Level 3 — Unobservable inputs that reflect the Company's estimates of the assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available, including its own data.

          The carrying amounts of cash, cash equivalents, accounts payable and accrued liabilities approximate fair value because of their short-term nature.

          The carrying amounts and the estimated fair values of debt instruments as of December 31, 2013 and 2014 are as follows:

 
  December 31, 2013   December 31, 2014  
 
 
Carrying
Value
 
Estimated
Fair Value
(Level 3)
 
Carrying
Value
 
Estimated
Fair Value
(Level 3)
 

Notes payable

  $ 800,000   $ 667,537   $   $  

          As of September 30, 2015 (unaudited), the Company did not have any debt instruments outstanding.

Segment Information

          The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The Company's singular focus is on developing and commercializing gene therapy treatments for patients suffering from rare and life-threatening neurological genetic diseases. All of the Company's tangible assets are held in the United States.

Revenue Recognition

          The Company's operations from its formation in 2010 through the end of 2013 were focused on the creation and operation of a processing, storage and preservation facility for fat (adipose tissue) and regenerative stems in Dallas, Texas (the "Stem Cell Business") (see Note 3). The Company recognized revenue from the Stem Cell Business once persuasive evidence of a final agreement exists; services have been rendered; the price of the service is fixed or determinable; and collectibility from the customer is reasonably assured. In January 2014, the Company exited the Stem Cell Business. As a result, all net revenues associated with the Stem Cell Business are presented as discontinued operations in the accompanying consolidated financial statements (see Note 4).

F-12



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