SEC Filings

10-K
AVEXIS, INC. filed this Form 10-K on 03/18/2016
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Table of Contents

        In addition, under the restricted stock purchase agreement, or RSPA, we are obligated to indemnify Dr. Brian Kaspar against certain adverse tax events with respect to the shares of our common stock he purchased under the agreement, and such obligation survived the termination of the RSPA effective January 1, 2016. Dr. Brian Kaspar purchased the shares at a price of $0.00007 per share, which was the par value of the shares. Based on our estimate of the fair market value per share of our common stock as of the date of the RSPA of $1.51 per share, Dr. Brian Kaspar purchased these shares at a discount of $1.5144 per share. Therefore, we estimate that we are contractually obligated to indemnify Dr. Brian Kaspar for the tax he owes on the imputed income of $3.5 million, based on the difference between the fair market value of the restricted share grant and the purchase price paid. We estimate our total indemnity obligation will be approximately $4.1 million, including gross-up, interest and penalties. As a result, we have accrued $4.1 million at December 31, 2014, representing our best estimate of the ultimate tax indemnification. Such amount has been recorded as research and development expense in our consolidated statements of operations for the year ended December 31, 2014.

        The table below summarizes the stock-based compensation expense recognized in our statements of operations by type:

 
  Year Ended
December 31,
 
 
  2015   2014  

Stock sales to former chief executive officer

  $   $ 594,088  

Share exchange with former chief executive officer

        193,549  

Restricted stock grant to consultant

    19,322,275     5,749,774  

Warrants issued to consultant

    358,637     243,863  

Employee stock-option grants

    5,250,217     416,624  

  $ 24,931,129   $ 7,197,898  

        The table below summarizes the stock-based compensation expense recognized in our statements of operation by classification:

 
  Year Ended
December 31,
 
 
  2015   2014  

Research and development

  $ 20,974,753   $ 6,173,278  

General and administrative

    3,956,376     1,024,620  

  $ 24,931,129   $ 7,197,898  

Determination of the Fair Value of Stock-Based Compensation Grants

        The following table summarizes by grant date the number of shares of our common stock subject to stock options granted during 2014 and 2015, as well as the associated per-share exercise price of the

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