Table of Contents
AveXis, Inc.
Notes to Consolidated Financial Statements (Continued)
3. Consolidated Variable Interest Entities (Continued)
becoming
a consolidated subsidiary of the Company. At the time of the transfer, Sixeva had $58 in cash and cash equivalents and a payable to BioLife Dallas in the amount of $84,500, such that there
was no value in the common shares acquired from Mr. Carbona. The $84,500 owed to BioLife Dallas was subsequently forgiven in September 2015 (unaudited).
4. Discontinued Operations
On January 30, 2014, the Company sold the 150,000 shares of BioLife Dallas held by it back to BioLife Dallas in exchange for $150.00 and resigned as the sole director of BioLife
Dallas. Additionally, the Company sold the 1,000 shares of BioLife Management and the 1,000 shares of BioLife IP, held by it, to DGG Holdings (an entity controlled by Dr. David Genecov, a
member of the Company's Board) for $20.00 in the aggregate. As a result of these transactions the Company eliminated the operations and cash flows of BioLife Dallas from its ongoing operations and
exited the Stem Cell Business. This disposal is a result of a fundamental change in the business and is consistent with the Company's long-term strategy to focus its activities on rare and
life-threatening neurological genetic diseases.
BioLife
Dallas had identifiable cash flows that were largely independent of the cash flows of the Company's other assets and liabilities. All net revenues and direct operating costs
associated with BioLife Dallas, as well as the loss on sale for both the current and prior periods, are presented as discontinued operations in the accompanying consolidated financial statements. The
Company has identified assets and liabilities attributable to the Stem Cell business and has identified them as such. Assets and liabilities as of December 31, 2013 attributed to the Stem Cell
Business are as follows:
Assets attributable to discontinued operations
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December 31,
2013
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Cash |
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$ |
3,914 |
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Due from Related Parties: AveXis, Inc. and Sixeva, Inc. (see Note 20) |
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|
710,510 |
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Total assets attributable to discontinued operations |
|
$ |
714,424 |
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Due
from related parties consists of amounts owed to BioLife Dallas by the Company for amounts paid by BioLife Dallas on the Company's behalf (see Note 20).
Liabilities attributable to discontinued operations
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December 31,
2013
|
|
Accounts payable |
|
$ |
10,096 |
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Accrued expenses |
|
|
100,398 |
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Notes payable |
|
|
450,000 |
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Total liabilities attributable to discontinued operations |
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$ |
560,494 |
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On
July 6, 2010, each of John Harkey and West Summit, loaned $225,000 pursuant to Promissory Note Agreements (the "Harkey and West Summit Notes") to BioLife Dallas a
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