Print Page     Close Window     

SEC Filings

10-K/A
BIOTIME INC filed this Form 10-K/A on 03/29/2017
Entire Document
 

12. Selected Quarterly Financial Information (unaudited) (in thousands)

Asterias has derived this data from the unaudited interim financial statements that, in Asterias’ opinion, have been prepared on substantially the same basis as the audited financial statements contained in this report and include all normal recurring adjustments necessary for a fair presentation of the financial information for the periods presented. These unaudited quarterly results should be read in conjunction with the financial statements and notes thereto included in this report. The operating results in any quarter are not necessarily indicative of the results that may be expected for any future period.

Year Ended December 31, 2016
 
First
Quarter
   
Second
Quarter
   
Third
Quarter
   
Fourth
Quarter
 
Revenues, net
 
$
1,541
   
$
1,526
   
$
2,017
   
$
1,742
 
Operating expenses
   
12,633
     
8,600
     
9,442
     
10,274
 
Loss from operations before deferred tax benefits
   
(11,239
)
   
(5,610
)
   
(11,550
)
   
(9,415
)
                                 
Basic and diluted net loss per share
   
(0.27
)
   
(0.12
)
   
(0.24
)
   
(0.20
)
                                 
Year Ended December 31, 2015
                               
Revenues, net
 
$
728
   
$
734
   
$
1,247
   
$
605
 
Operating expenses
   
5,265
     
5,541
     
6,183
     
8,233
 
Loss from operations before deferred tax benefits
   
(4,557
)
   
(4,859
)
   
(5,068
)
   
(7,771
)
                                 
Basic and diluted net loss per share
   
(0.09
)
   
(0.10
)
   
(0.09
)
   
(0.13
)

13. License and Royalty Obligations

Services Agreement with Cell Therapy Catapult Services Limited

In October 2015, Asterias entered into a Services Agreement (the “Services Agreement”) with Cell Therapy Catapult Services Limited (“Catapult”), a research organization specializing in the development of technologies which speed the growth of the cell and gene therapy industry. Under the Services Agreement, Catapult will license to Asterias, certain background intellectual property and will develop a scalable manufacturing and differentiation process for Asterias’ human embryonic stem cell derived dendritic cell cancer vaccine development program. In consideration for the license and Catapult’s performance of services, Asterias agreed to make aggregate payments of up to GBP £4,350,000 over the next five years (approximately $5.4 million based on the foreign currency exchange rate on December 31, 2016). At the option of Asterias, up to GBP £3,600,000 (approximately $4.4 million based on the foreign currency exchange rate on December 31, 2016) of such payments may be settled in shares of Asterias Series A Common Stock instead of cash.  If Asterias elects to pay for the services in stock and Catapult is unable to sell the stock in the market within 60 days of issuance, after reasonable and diligent efforts through its broker, Catapult may request that the unsold portion of the stock payment, if any, be paid by Asterias in cash at a value equal to approximately 91% of the total amount that was issued in stock.  This right by Catapult to put the unsold shares back to Asterias for cash expires the earlier to occur of the sale of the stock in the market or after 60 days of issuance. As of December 31, 2016, we have incurred costs since commencement of the Services Agreement of GBP £1,700,000 under the Services Agreement.

The Services Agreement may be terminated by Asterias for any reason upon 60 days prior written notice. Catapult may terminate the Services Agreement on 60 days prior written notice if it encounters a technical issue that would prevent it from completing the services at all or without obtaining additional resources, or if the estimated time and cost of completing the services will be exceeded and Catapult and Asterias do not reach agreement on revised time and cost terms. Catapult may terminate the Services Agreement in the event Asterias fails to pay any amount due under the Services Agreement 30 days after Catapult makes a written demand for payment. In addition, a non-breaching party may terminate the Services Agreement upon the occurrence a material breach that is not remedied within 30 days. Either party may terminate the Services Agreement in the event the other party becomes subject to insolvency, receivership, liquidation, or a similar event.
 
68

© Copyright BioTime, Inc.