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:
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Year ended
December 31,
2015 |
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Year ended
December 31,
2014 |
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Year ended
December 31,
2013 |
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Results of discontinued operations |
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Revenues |
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$ |
— |
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$ |
2,549 |
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$ |
49,094 |
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Cost of goods sold |
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— |
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— |
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(80,148 |
) |
General and administrative expenses |
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— |
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(8,504 |
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(387,345 |
) |
Research and development expenses |
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— |
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— |
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(23,381 |
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Results from operating activities |
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— |
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(5,955 |
) |
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(441,780 |
) |
Interest expense |
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— |
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2,774 |
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33,750 |
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Results from operating activities, before tax |
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— |
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(8,729 |
) |
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(475,530 |
) |
Income tax expense (benefit) |
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— |
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— |
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— |
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Results from operating activities, net of tax |
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— |
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(8,729 |
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(475,530 |
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Loss on sale of discontinued operation |
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— |
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(145,199 |
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— |
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Net loss |
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$ |
— |
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$ |
(153,928 |
) |
$ |
(475,530 |
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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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