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10-K/A
BIOTIME INC filed this Form 10-K/A on 04/02/2018
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In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize assets and liabilities for leases with lease terms greater than twelve months in the statement of financial position. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The update is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within those annual periods. Early adoption is permitted. OncoCyte is currently evaluating the impact that the adoption of ASU 2016-02 will have on its financial statements.

 

In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718) – Scope of Modification Accounting, to clarify existing guidance and reduce diversity in practice about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 requires modification accounting to a share-based award unless all of the following are met: (1) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified, (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified, and (3) the classification of the modified award, as equity or liability instrument, is the same as the classification of the original award immediately before the original award is modified. ASU 2017-09 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. OncoCyte currently applies the three-step test to all modifications, if any, or as they occur, and if all the conditions are not met, applies modification accounting. OncoCyte believes the adoption of ASU 2017-09 will not have a material impact on its financial statements.

 

3. Selected Balance Sheet Components

 

Accrued expenses and other current liabilities

 

At December 31, 2017 and 2016, accrued expenses and other current liabilities were comprised of the following (in thousands):

 

   2017   2016 
Accrued bonuses and payroll related expenses  $636   $549 
Other accrued expenses   406    248 
Accrued expenses and other current liabilities  $1,042   $797 

 

Intangible assets, net

 

In 2011, OncoCyte, through its then parent, BioTime, acquired substantially all of the assets of Cell Targeting, Inc., a company that was engaged in cancer therapy. The assets acquired consist primarily of patents, patent applications, and licenses to use certain patents. OncoCyte amortizes intangible assets over their useful lives estimated to be 10 years at the date of the acquisition.

 

At December 31, 2017 and 2016, intangible assets were comprised of the following (in thousands):

 

   2017   2016 
Intangible assets  $2,419   $2,419 
Accumulated amortization   (1,673)   (1,431)
Intangible assets, net  $746   $988 

 

Amortization expense amounted to approximately $242,000 annually.

 

Equipment and furniture, net

 

At December 31, 2017 and 2016, equipment and furniture were comprised of the following (in thousands):

 

   2017   2016 
Equipment and furniture  $1,479   $1,007 
Accumulated depreciation   (657)   (319)
Equipment and furniture, net  $822   $688 

 

Depreciation expense amounted to approximately $338,000, $145,000 and $41,000 for the years ended December 31, 2017, 2016 and 2015, respectively. During the year ended December 31, 2017 and 2016, OncoCyte entered into capital leases for laboratory equipment totaling $381,000 and $626,000, respectively (see Note 9).

 

   

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