Equity Method of Accounting for Common Stock of Asterias, at Fair Value

12 Months Ended

Dec. 31, 2018

Equity Method Of Accounting For Common Stock Of Oncocyte At Fair Value

Equity Method of Accounting for Common Stock of Asterias, at Fair Value

7. Equity Method of Accounting for Common Stock of Asterias, at Fair Value

BioTime elected to account for its 21.7 million shares of Asterias common stock at fair value using the equity method of accounting beginning on May 13, 2016, the date of the Asterias Deconsolidation. The Asterias shares had a fair value of $13.5 million as of December 31, 2018 and a fair value of $48.9 million as of December 31, 2017, based on the $0.62 and $2.25 closing prices of Asterias common stock on the NYSE American on the applicable date.

All share prices are determined based on the closing price of Asterias common stock on the NYSE American on the applicable dates.

For the year ended December 31, 2018, BioTime recorded an unrealized loss of $35.4 million on the Asterias shares due to the decrease in Asterias stock price from December 31, 2017 to December 31, 2018. For the year ended December 31, 2017, BioTime recorded an unrealized loss of $51.1 million on the Asterias shares due to the decrease in Asterias stock price from December 31, 2016 to December 31, 2017.

The following table summarizes Asterias results of operations for the full years ended December 31, 2018 and 2017 (in thousands).

	Year Ended December 31,
Condensed Statements of Operations	2018		2017
Total revenue	$	812	$	4,042
Gross profit		588		3,877
Loss from operations		(21,605)		(33,251	)
Net loss	$	(21,820)	$	(28,372	)

	December 31,
Condensed Balance Sheet information (1)	2018		2017
Current assets	$	8,793	$	22,716
Noncurrent assets		13,481		20,376
	$	22,274	$	43,092
Current liabilities	$	2,982	$	3,521
Noncurrent liabilities		2,241		6,028
Stockholders’ equity		17,051		33,543
	$	22,274	$	43,092

(1) The condensed balance sheet information of Asterias as of December 31, 2018 and 2017, is provided for informational and comparative purposes only and was not included in BioTime’s consolidated balance sheet as of December 31, 2018 and 2017 due to the Asterias Deconsolidation on May 13, 2016.

On November 7, 2018, BioTime announced it entered into a definitive agreement to acquire the remaining ownership interest in Asterias Biotherapeutics, Inc. that BioTime did not own in a stock-for-stock transaction pursuant to which Asterias shareholders will receive 0.71 shares of BioTime common stock for every share of Asterias common stock. As of December 31, 2018, BioTime owned approximately 39.1% of Asterias’ outstanding common stock.

As discussed in Note 19, upon the completion of the Asterias Merger on March 8, 2019, Asterias ceased to exist as a public company, BioTime owns all of the outstanding shares of Asterias’ common stock and BioTime will consolidate Asterias’ operations and results with its operations and consolidated results beginning on March 8, 2019.