SEC Filings

10-Q
AVEXIS, INC. filed this Form 10-Q on 08/10/2017
Entire Document
 

Critical Accounting Policies and Significant Judgments and Estimates

 

Our critical accounting policies are described in Note 2 to our consolidated financial statements for the year ended December 31, 2016, included in our Annual Report on Form 10-K. There were no material changes to our critical accounting policies during the six months ended June 30, 2017.

 

Emerging Growth Company Status

 

Under Section 107(b) of the JOBS Act, an “emerging growth company,” or EGC, can delay adopting new or revised accounting standards until such time as those standards apply to private companies. We have irrevocably elected not to avail ourselves of this exemption from new or revised accounting standards and, therefore, we are subject to the same new or revised accounting standards as other public companies that are not emerging growth companies.

 

As an EGC, we rely on certain of exemptions and reduced reporting requirements under the JOBS Act, including exemptions from the requirement to provide an auditor’s attestation report on our system of internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act and from any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements, known as the auditor discussion and analysis. We will remain an EGC until the earlier of: the last day of the fiscal year in which we have total annual gross revenues of $1.07 billion or more; December 31, 2021; the date on which we have issued more than $1.0 billion in nonconvertible debt during the previous three years; or the date on which we are deemed to be a large accelerated filer under the rules of the Securities and Exchange Commission, or SEC. Based on our public float as of the date of this report, we currently expect that we will become a large accelerated filer, and cease to be an EGC, as of December 31, 2017.

 

Recent Accounting Pronouncements

 

See Note 2 for disclosure of recent accounting pronouncements.

 

Results of Operations

 

Comparison of the Three and Six Months Ended June 30, 2017 and 2016

 

The following table summarizes our results of operations for the three and six months ended June 30, 2017 and 2016, together with the dollar increase or decrease in those items (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 

 

Six Months Ended June 30, 

 

 

 

 

2017

 

 

2016

 

Period-to-Period Change

 

 

2017

 

 

2016

 

Period-to-Period Change

 

Net revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

Operating expenses:

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

General and administrative

 

 

13,154

 

 

5,418

 

 

7,736

 

 

22,803

 

 

10,242

 

 

12,561

 

Research and development

 

 

45,206

 

 

10,380

 

 

34,826

 

 

65,521

 

 

26,445

 

 

39,076

 

Total operating expenses

 

 

58,360

 

 

15,798

 

 

42,562

 

 

88,324

 

 

36,687

 

 

51,637

 

Interest income (net)

 

 

331

 

 

79

 

 

252

 

 

576

 

 

132

 

 

444

 

Net loss

 

$

(58,029)

 

$

(15,719)

 

$

(42,310)

 

$

(87,748)

 

$

(36,555)

 

$

(51,193)

 

 

General and Administrative Expense

 

General and administrative expense increased from $5.4 million for the three months ended June 30, 2016, to $13.2 million for the three months ended June 30, 2017. This $7.8 million increase included increases of $2.3 million in legal, professional and consulting fees, $2.1 million in salaries and personnel-related costs, $1.9 million in non-cash stock-

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