of Ownership Interest in Ascendance
March 23, 2018, Ascendance was acquired by a third party in a merger through which AgeX received approximately $3.2 million
in cash for its shares of Ascendance common stock. AgeX recognized a $3.2 million gain as a sale of its equity method investment
in Ascendance, which is included in other income and expenses, net, for the three months ended March 31, 2018. At the close of
the merger, $955,000 of cash that otherwise would have been payable to the Ascendance stockholders was deposited into an escrow
account where it may be held for a term of up to fifteen months. Funds held in the escrow account may be paid to the acquirer
to cover indemnity payments and other obligations that may arise after the merger. After the expiration of the term of the escrow,
any funds remaining in the escrow account will be disbursed, on a pro-rata basis, to the former Ascendance stockholders. As of
March 31, 2018, no amounts have been recorded in the BioTime consolidated financial statements for any funds held in the escrow
related party transaction
February 2018, Alfred D. Kingsley, the Chairman of BioTime’s Board of Directors,
purchased AgeX stock purchase warrants entitling him to purchase 248,600 shares of AgeX common stock at an exercise price of $2.50
per share. AgeX received $124,300, or $0.50 per warrant, from Mr. Kingsley. See Note 10.
currently pays $5,050 per month for the use of approximately 900 square feet of office space in New York City, which is made available
to BioTime on a month-by-month basis by one of its directors at an amount that approximates his cost.
is authorized to issue 2,000,000 preferred shares. The preferred shares may be issued in one or more series as the board of directors
may by resolution determine. The board of directors is authorized to fix the number of shares of any series of preferred shares
and to determine or alter the rights, preferences, privileges, and restrictions granted to or imposed on the preferred shares
as a class, or upon any wholly unissued series of any preferred shares. The board of directors may, by resolution, increase or
decrease (but not below the number of shares of such series then outstanding) the number of shares of any series of preferred
shares subsequent to the issue of shares of that series. There are no preferred shares issued and outstanding.
March 31, 2018, BioTime was authorized to issue 150,000,000 common shares, no par value (see Note 14). As of March 31, 2018, and
December 31, 2017, BioTime had 126,869,140 and 126,865,634 issued and outstanding common shares, respectively.
April 6, 2017, BioTime, entered into a Controlled Equity OfferingSM Sales Agreement (the “Sales Agreement”)
with Cantor Fitzgerald & Co., as sales agent (“Cantor Fitzgerald”), pursuant to which BioTime may offer and sell,
from time to time, through Cantor Fitzgerald, shares of BioTime common stock, no par value per share, having an aggregate offering
price of up to $25,000,000. BioTime is not obligated to sell any shares under the Sales Agreement. Subject to the terms and conditions
of the Sales Agreement, Cantor Fitzgerald will use commercially reasonable efforts, consistent with its normal trading and sales
practices, applicable state and federal law, rules and regulations, and the rules of the NYSE American, to sell the shares from
time to time based upon BioTime’s instructions, including any price, time or size limits specified by BioTime. Under the
Sales Agreement, Cantor Fitzgerald may sell the shares by any method deemed to be an “at-the-market” offering as defined
in Rule 415(a)(4) under the Securities Act of 1933, as amended, or by any other method permitted by law, including in privately
negotiated transactions. Cantor Fitzgerald’s obligations to sell the shares under the Sales Agreement are subject to satisfaction
of certain conditions, including the continued effectiveness of BioTime’s Registration Statement on Form S-3 which became
effective on May 5, 2017. As of March 31, 2018,
$24.2 million remained available for sale through the Sales Agreement under the Registration Statement.
will pay Cantor Fitzgerald a commission of 3.0% of the aggregate gross proceeds from each sale of shares, reimburse legal fees
and disbursements and provide Cantor Fitzgerald with customary indemnification and contribution rights. The Sales Agreement may
be terminated by Cantor Fitzgerald or BioTime at any time upon notice to the other party, or by Cantor Fitzgerald at any time
in certain circumstances, including the occurrence of a material and adverse change in BioTime’s business or financial condition
that makes it impractical or inadvisable to market the shares or to enforce contracts for the sale of the shares.