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Research and development expense for the year ended December 31, 2014 primarily consisted of $6.0 million in stock-based compensation expense
associated with a restricted stock grant made to Dr. Kaspar in connection with a consulting arrangement and a stock warrant granted to a consultant in connection with scientific advisory
services to be provided to us, in each case described in " Stock-Based Compensation" above, $4.1 million relating to a tax indemnification liability associated with the restricted
stock grant made to Dr. Kaspar in connection with a consulting arrangement, $2.0 million in up-front license fees paid to REGENXBIO as consideration for the ReGenX license,
$0.3 million of salaries and personnel-related costs, $0.3 million in contracted third-party research and development spending on AVXS-101, $0.2 million in stock-based
compensation expense associated with employee stock options, $0.2 million in consulting fees and $0.2 million associated with the issuance of shares of common stock to NCH under the
terms of the NCH license agreement.
anticipate our research and development costs will continue to increase over the next several years due to increased spending on the development of AVXS-101.
Interest expense year ended December 31, 2014 was $0.1 million, which primarily consists of a $0.1 million loss
on extinguishment of debt related to the conversion of a $0.5 million note payable into shares of our Class B-1 preferred stock. Interest expense for the year ended December 31,
2013 primarily consists of interest accrued on outstanding notes payable.
Loss from discontinued operations was $0.5 million for the year ended December 31, 2013, compared to $0.2 million
for the year ended December 31, 2014. The loss from discontinued operations in 2013 represents a full year of activity for the stem cell business and includes fixed asset impairment charges of
$0.1 million. The loss from discontinued operations in 2014 consists primarily of the $0.1 million loss, net of tax, incurred upon the sale of the business in January 2014, as well as
approximately one month of activity for the stem cell business prior to its disposition.
Liquidity and Capital Resources
Sources of Liquidity
To date, we have funded our research and development and operating activities primarily through the issuance of $1.0 million of
convertible debt and $80.5 million of private placements of stock. We have issued four separate classes of stock, defined as common stock, Class B-1, Class C and Class D,
and we have issued warrants exercisable for shares of a fifth class of stock, defined as Class B-2. Due to the preferential distributions that may be received by the holders of
Classes B-1, B-2, C and D common stock, for accounting purposes, these shares have been
classified as "preferred stock," with our common stock classified as "common stock." in our consolidated financial statements and related notes, and we similarly refer to these shares as "preferred
stock" and "common stock" throughout this prospectus.
As of September 30, 2015, we had cash and cash equivalents of $69.7 million and had no debt outstanding, and as of December 31, 2015, we had not incurred any