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)

16. Commitments and Contingencies (Continued)

December 31, 2019 and also provides the Company a one-time right of refusal with respect to the lease of an additional 1,807 square feet of contiguous space.

          Future minimum lease payments are as follows:

Year ending December 31,
       

2015

  $  

2016

    73,829  

2017

    75,323  

2018

    76,817  

2019

    78,311  

Thereafter

    79,805  

Total

  $ 384,085  

          Rent expense on all operating leases amounted to $27,200 and $38,824 for the years ended December 31, 2013 and 2014, respectively and $25,225 and $55,149 for the nine months ended September 30, 2014 and 2015 (unaudited).

License Agreements

          See Note 5 for information regarding licenses entered into by the Company. These agreements may require the Company to make future payments relating to sublicense fees, milestone fees and royalties on future sales, if any, of the Product Candidate.

Guarantees and Indemnifications

          The Company has accrued $4,080,500 at December 31, 2014, representing the Company's best estimate of the ultimate tax indemnification and gross-up payment to be made to a consultant pursuant to a tax indemnification granted to such consultant in connection with a restricted common stock grant (see Note 8).

          Additionally, in the normal course of business, the Company has entered into agreements that contain a variety of representations and provide for general indemnification. The Company's exposure under these agreements is unknown because it involves claims that may be made against the Company in the future. To date, the Company has not paid any claims or been required to defend any action related to these indemnification obligations. As of December 31, 2013 and 2014, and September 30, 2015 (unaudited), the Company did not have any material indemnification claims related to these agreements that were probable or reasonably possible and consequently has not recorded any related liabilities.

Litigation

          Lawsuits may be asserted against the Company in the normal course of business. Based on information currently available, management believes that the disposition of any matters will not have a materially adverse effect on the financial position, results of operations or cash flows of the Company.

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