SEC Filings

S-1/A
AVEXIS, INC. filed this Form S-1/A on 02/01/2016
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requisite service period for potential treatment as performance conditions. Under the ASU, compensation expense is to be recognized when the performance target is deemed probable and should represent the compensation expense attributable to the periods for which service has already been rendered. If the performance target is reached prior to achievement of the service period, the remaining unrecognized compensation cost should be recognized over the remaining service period. The ASU is effective for annual and interim periods beginning after December 15, 2015 with early adoption permitted. We are evaluating the application of this ASU, but have not yet determined the potential effects it may have on our consolidated financial statements.

          In November 2014, the FASB issued ASU No. 2014-16, Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity ("ASU 2014-16"). The guidance requires an entity to determine the nature of the host contract by considering all stated and implied substantive terms and features of the hybrid financial instrument, weighing each term and feature on the basis of the relevant facts and circumstances (commonly referred to as the whole-instrument approach). ASU 2014-16 applies to all entities and is effective for annual periods beginning after December 15, 2015, and interim periods thereafter. Early adoption is permitted. We are evaluating the application of this ASU, but have not yet determined the potential effects it may have on our consolidated financial statements.

Results of Operations

Comparison of the Nine Months Ended September 30, 2014 and 2015

          The following table summarizes our results of operations for the nine months ended September 30, 2014 and 2015, together with the dollar increase or decrease in those items:

 
  Nine Months Ended
September 30,
   
 
 
 
Period-to-
Period
Change
 
 
 
2014
 
2015
 
 
  (unaudited)
   
 

Revenue

  $   $   $  

Operating expenses:

                   

General and administrative

    1,601,301     6,651,233     5,049,932  

Research and development

    10,167,011     18,756,214     8,589,203  

Total operating expenses

    11,768,312     25,407,447     13,639,135  

Loss from operations

    (11,768,312 )   (25,407,447 )   (13,639,135 )

Interest expense (income)

    132,670     (94,410 )   (227,080 )

Loss from continuing operations, before income taxes

    (11,900,982 )   (25,313,037 )   (13,412,055 )

Income tax expense (benefit)

             

Loss from continuing operations

    (11,900,982 )   (25,313,037 )   (13,412,055 )

Loss from discontinued operations, net of tax

    8,729         (8,729 )

Loss from sale of discontinued operations, net of tax

    145,199         (145,199 )

Net loss

  $ (12,054,910 ) $ (25,313,037 ) $ (13,258,127 )

    General and Administrative

          General and administrative expense increased from $1.6 million for the nine months ended September 30, 2014 to $6.7 million for the nine months ended September 30, 2015. This increase was primarily attributable to an increase of $2.5 million in legal and professional fees, an increase of $1.3 million in salaries and personnel-related costs and facilities due to increased headcount, and $1.3 million in stock-based compensation expense.

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