of September 30, 2018 and December 31, 2017 the Company had a receivables balance of $2.4 million and $34,000, respectively. The
balance as of September 30, 2018, was largely comprised of amounts related to the Novo Nordisk option agreement payment due of
$1.0 million combined with the NNRCSI lease incentive and sale of fixed asset payments due of $750,000 and $250,000, respectively.
Additionally, the deposit previously held by the Landlord for our Fremont lease, which is now payable to the Company is included
in the receivables balance as of September 30, 2018.
and other current assets
cash in the amount of $100,000 is included in prepaid and other current assets on the balance sheet as of September 30, 2018 and
December 31, 2017. This certificate of deposit is held as customary collateral for the Company’s credit card program.
the three months ended September 30, 2018, the Company and Novo Nordisk A/S (“Novo Nordisk”) entered into an option
for Novo Nordisk or its designated U.S. affiliate to license, on a non-exclusive basis, certain intellectual property related
to culturing pluripotent stem cells, such as hES cells, in suspension. Under the terms of the option, Asterias will receive a
one-time upfront payment of $1.0 million, in exchange for a 24-month period to negotiate a non-exclusive license during which
time Asterias has agreed to not grant any exclusive licenses inconsistent with the Novo Nordisk option. This option is considered
a performance obligation as it provides NNRCSI with a material right that NNRCSI would not receive without entering into the contract.
This $1.0 million has been included in deferred revenue on the Company’s balance sheet at September 30, 2018. The Company
will recognize revenue from the option agreement at the earlier of a) the date the Company and Novo Nordisk enter into a license
agreement or b) if no license agreement is consummated, at the end of the 24-month period to negotiate a non-exclusive license.
Investments in BioTime and OncoCyte
BioTime Common Shares held by the Company are included in marketable equity securities at fair value in current assets on the
balance sheets because the shares are traded on NYSE American under the (symbol “BTX”) and are available for working
capital purposes. During the three months ended September 30, 2018, Asterias did not sell any BioTime shares. During the nine
months ended September 30, 2018 Asterias sold 859,274 of its BioTime Common Shares. The weighted-average price of the shares sold
for the nine months ended September 30, 2018 was $2.59. As of September 30, 2018 and December 31, 2017, Asterias held 2,621,811
and 3,481,085 BioTime shares, respectively. As of September 30, 2018 and December 31, 2017, the BioTime Common Shares were valued
at $6.2 million and $7.5 million, respectively, based on the closing price on those dates.
OncoCyte common shares are included in marketable equity securities at fair value in current assets on the balance sheets because
the shares are traded on NYSE American (symbol “OCX”) and are available for working capital purposes. During the three
and nine months ended September 30, 2018, Asterias sold 73,175 and 181,756 of its OncoCyte common shares at a weighted-average
price of $3.56 and $3.12, respectively. As of September 30, 2018, Asterias did not hold any OncoCyte common shares. As of December
31, 2017, Asterias held 181,756 OncoCyte common shares valued at $0.8 million, based on the closing price on that date.
of ASU No. 2016-01, Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities
January 1, 2018, the Company adopted ASC Topic 321 using the modified retrospective method. Results for reporting periods beginning
after January 1, 2018, are presented under ASC Topic 321, while prior period amounts are not adjusted and continue to be reported
in accordance with the Company’s historical accounting under ASC Topic 320 (see Note 2).