SEC Filings

S-1/A
AVEXIS, INC. filed this Form S-1/A on 02/09/2016
Entire Document
 

Table of Contents


AveXis, Inc.

Notes to Consolidated Financial Statements (Continued)

15. Separation Agreement (unaudited) (Continued)

Severance due to Mr. Carbona would be paid to Mr. Carbona in a lump sum within 30 days from the termination of his service on the Board and (ii) the remaining 50% of the unpaid Severance due Mr. Carbona would be paid in equal installments over the lesser of (a) six months or (b) the remainder of the original 12 month period. The Vacation Pay was paid in a lump sum in May 2015. In June 2015, Mr. Carbona's service on the Board terminated.

          In connection with the transactions described above, the Company recorded a charge of $535,000 in its consolidated statements of operations for the nine months ended September 30, 2015. Such amount is included within general and administrative expense in the consolidated statement of operations.

          Additionally, the Company agreed to fully accelerate the vesting of 53,820 unvested stock options held by Mr. Carbona at the time of the termination of his employment. The Company determined that the acceleration of vesting was a Type III modification pursuant to ASC 718. Therefore, the Company recognized the incremental fair value of the awards as of the modification date and recognized the amount immediately since the awards did not require further service. In connection with this modification, the Company recorded a charge of $503,502 in its consolidated statement of operations for the nine months ended September 30, 2015. Such amount is included within general and administrative expense.

          In connection with the termination of his employment, Mr. Carbona also agreed to transfer to the Company all shares of Sixeva held by entities affiliated with him and to terminate the Cross Option (see Note 12).

16. Commitments and Contingencies

Operating Leases

          In March 2014, the Company entered into a lease agreement, which expires in April 2017, for approximately 2,418 square feet of office space in Dallas, Texas. The lease agreement provides for annual escalation in rent payments during the lease term. The Company is amortizing the escalation in rental payments on a straight-line basis over the term of the lease.

          Future minimum lease payments under this lease are as follows:

Year ending December 31,
   
 

2015

  $ 54,002  

2016

    55,211  

2017

    18,538  

Thereafter

     

Total

  $ 127,751  

          On July 31, 2015 (unaudited), the Company entered into a lease agreement, which expires in December 2020, for approximately 4,795 square feet of office space in Bannockburn, Illinois. The lease agreement provides for annual escalation in rent payments during the lease term. The lease agreement provides the Company with a one-time right to terminate the lease effective as of

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