SEC Filings

10-Q
AVEXIS, INC. filed this Form 10-Q on 11/09/2017
Entire Document
 

Additionally, the Company intends to gross-up such indemnification payment for the tax that will be payable by Dr. Kaspar on the indemnity payment.

 

On May 3, 2017, the Company paid Dr. Kaspar $1.7 million, which represents the tax liabilities owed to the U.S., State of Ohio and municipality of New Albany, Ohio pursuant to Dr. Kaspar’s 2014 amended tax returns. As a result, the Company has accrued balances of $2.8 million and $4.5 million at September 30, 2017 and December 31, 2016, respectively, representing the Company’s best estimate of the ultimate tax indemnification and gross-up payment to be made to Dr. Kaspar. The overall decrease in the accrued indemnification obligation was due to the May 3, 2017 payment to Dr. Kaspar, offset slightly by the accrual of additional interest through September 30, 2017. The Company expects to pay this entire amount in 2017.

 

6.Stock-Based Compensation

 

2014 Stock Plan (the “2014 Plan”) and 2016 Equity Incentive Plan (the “2016 Plan”)

 

The following table summarizes stock option activity under the 2014 Plan and the 2016 Plan (collectively, the “Plans”) for the nine months ended September 30, 2017 (in thousands, except per share data):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted

 

Weighted Average

 

 

 

 

Average

 

Remaining

 

Aggregate

 

 

Number of

 

Exercise

 

Contractual

 

Intrinsic

 

    

Shares

    

Price

    

Life (Years)

    

Value (a)

Outstanding at December 31, 2016

 

2,577

 

$

22.01

 

8.79

 

$

66,466

Granted

 

959

 

$

75.37

 

 

 

 

 

Exercised

 

(152)

 

$

10.42

 

 

 

 

 

Cancelled or forfeited

 

(74)

 

$

20.27

 

 

 

 

 

Outstanding at September 30, 2017

 

3,310

 

$

38.04

 

8.53

 

$

194,310

Exercisable at September 30, 2017

 

1,116

 

$

20.03

 

7.96

 

$

85,622

Exercisable and expected to vest at September 30, 2017

 

3,310

 

$

38.04

 

8.53

 

$

194,310


(a)

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the estimated fair value of the common stock for the options that were in-the-money at September 30, 2017 and December 31, 2016.

 

For the nine months ended September 30, 2017 and 2016, the total number of stock options exercised was 152 and 34, respectively, resulting in total proceeds of $1,258 and $218, respectively.

 

As of September 30, 2017 and December 31, 2016, there was $49.0 million and $20.6 million, respectively, of unrecognized stock-based compensation expense related to stock option awards that is expected to be recognized over a weighted-average period of 1.4 and 1.4 years, respectively.

 

The Company has recorded total stock-based compensation expense related to the issuance of stock option awards under the Plans in the consolidated statements of operations and comprehensive loss as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30, 

 

September 30, 

 

 

2017

    

2016

    

2017

    

2016

 

Research and development

$

4,894

 

$

2,007

 

$

10,418

 

$

14,758

 

General and administrative

 

5,274

 

 

2,616

 

 

12,490

 

 

7,253

 

 

$

10,168

 

$

4,623

 

$

22,908

 

$

22,011

 

 

9


 


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