SEC Filings

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


AveXis, Inc.

Notes to Consolidated Financial Statements (Continued)

4. Discontinued Operations (Continued)

        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 losses attributed to the Stem Cell Business for the years ended December 31, 2015, 2014 and 2013 were as follows:

 
  Year ended
December 31,
2015
  Year ended
December 31,
2014
  Year ended
December 31,
2013
 

Results of discontinued operations

                   

Revenues

  $   $ 2,549   $ 49,094  

Cost of goods sold

            (80,148 )

General and administrative expenses

        (8,504 )   (387,345 )

Research and development expenses

            (23,381 )

Results from operating activities

        (5,955 )   (441,780 )

Interest expense

        2,774     33,750  

Results from operating activities, before tax

        (8,729 )   (475,530 )

Income tax expense (benefit)

             

Results from operating activities, net of tax

        (8,729 )   (475,530 )

Loss on sale of discontinued operation

        (145,199 )    

Net loss

  $   $ (153,928 ) $ (475,530 )

        During the year ended December 31, 2013, the Company recognized a $134,125 impairment loss on fixed assets utilized in its Stem Cell Business as a result of a decision to exit that business. Such amount is included in general and administrative expense in the above table for the year ended December 31, 2013.

        The Company does not believe there is an effect of income taxes on discontinued operations. Due to the Company's ongoing operating losses, the uncertainty of future profitability and limitations on the utilization of net operating loss carry-forwards under Section 382 of the Internal Revenue Code of 1986, as amended (the "IRC"), a valuation allowance has been recorded to fully offset the Company's deferred tax asset (see Note 17).

5. Collaboration and License Agreements

Nationwide Children's Hospital

        In October 2013 (the "Effective Date"), the Company entered into an Exclusive License Agreement (the "Nationwide License"), which agreement was amended and restated in its entirety in January 2016 (see Note 21), with Nationwide Children's Hospital ("NCH"). Under the terms of the agreement, NCH granted the Company an exclusive, non-transferable, worldwide license to certain patents held by NCH for the therapy and treatment of SMA. The Company was also provided a license to the Investigational New Drug application ("IND") for AVXS-101 (the "Product Candidate") and was provided the right to become sponsor of the IND after completion of the Phase 1 clinical trial. On

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