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NEW ACCOUNTING STANDARDS IMPLMEMENTED | 12 Months Ended
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Dec. 31, 2018
Accounting Changes and Error Corrections [Abstract] |
NEW ACCOUNTING STANDARDS IMPLMEMENTED | NOTE 2 — NEW ACCOUNTING STANDARDS IMPLMEMENTED Revenue Recognition Effective January 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers , as amended (ASC 606), using the modified retrospective transition method. The ASC 606 revenue recognition standard replaced the prior revenue recognition standard ASC 605, Revenue Recognition . The cumulative effect of applying the ASC 606 standard was an increase of $6,275,000 to stockholders’ equity as of January 1, 2018. The balance sheet and the statement of operations as of and for the year ended December 31, 2018 are presented under ASC 606, while our balance sheet as of December 31, 2017 and statement of operations for each of the two years ended December 31, 2017 are presented under ASC 605. See below for disclosure of the effect of the ASC 606 adoption on our consolidated balance sheet as of January 1, 2018 and the impact of the adoption of ASC 606 on our statement of operations for the year ended December 31, 2018. The table below presents the cumulative effect of the changes made to the consolidated January 1, 2018 balance sheet due to the adoption of ASC 606.
|  | December 31, 2017, As Reported Under ASC 605 |  |  | ASC 606 Adjustments |  |  | January 1, 2018, As Adjusted Under ASC 606 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Current portion of deferred revenue |  | $ | 3,214,000 |  |  | $ | (3,214,000 | ) |  | $ | — |
Total current liabilities |  |  | 5,607,000 |  |  |  | (3,214,000 | ) |  |  | 2,393,000 |
Deferred revenue, net of current portion |  |  | 3,061,000 |  |  |  | (3,061,000 | ) |  |  | — |
Total liabilities |  |  | 8,668,000 |  |  |  | (6,275,000 | ) |  |  | 2,393,000 |
Stockholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |
Accumulated deficit |  |  | (359,792,000 | ) |  |  | 6,275,000 |  |  |  | (353,517,000 | )
Total stockholders’ equity |  |  | 170,098,000 |  |  |  | 6,275,000 |  |  |  | 176,373,000 |
The table below presents the impact of the adoption of ASC 606 on our statement of operations.
|  | For the year ended December 31, 2018 |
|  | Under ASC 605 |  |  | Effect of ASC 606 |  |  | As Reported Under ASC 606 |
Revenues |  |  |  |  |  |  |  |  |  |  |  |
Foundation revenues |  | $ | — |  |  | $ | 2,796,000 |  |  | $ | 2,796,000 |
License revenues |  |  | 602,000 |  |  |  | (602,000 | ) |  |  | — |
Total revenues |  |  | 804,000 |  |  |  | 2,194,000 |  |  |  | 2,998,000 |
Loss from operations |  |  | (60,360,000 | ) |  |  | 2,194,000 |  |  |  | (58,166,000 | )
Net loss |  |  | (58,865,000 | ) |  |  | 2,194,000 |  |  |  | (56,671,000 | )
Basic and diluted loss per common share |  |  | (1.24 | ) |  |  | 0.05 |  |  |  | (1.19 | )
The table below presents the impact of the adoption of ASC 606 on our balance sheet.
|  | December 31, 2018 |
|  | Under ASC 605 |  |  | Effect of ASC 606 |  |  | As Reported Under ASC 606 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Current portion of deferred revenue |  | $ | 6,308,000 |  |  | $ | (6,012,000 | ) |  | $ | 296,000 |
Total current liabilities |  |  | 26,366,000 |  |  |  | (6,012,000 | ) |  |  | 20,354,000 |
Deferred revenue, net of current portion |  |  | 2,460,000 |  |  |  | (2,460,000 | ) |  |  | — |
Total liabilities |  |  | 48,826,000 |  |  |  | (8,472,000 | ) |  |  | 40,354,000 |
Stockholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |
Accumulated deficit |  |  | (412,382,000 | ) |  |  | 2,194,000 |  |  |  | (410,188,000 | )
Total stockholders’ equity |  |  | 131,851,000 |  |  |  | 2,194,000 |  |  |  | 134,045,000 |
Foundation revenues: On October 16, 2017, we announced a collaborative agreement with nine Sanfilippo foundations to provide up to approximately $13,850,000 of grants to Abeona in installments for the advancement of the Company’s clinical stage gene therapies for MPS IIIA and MPS IIIB, subject to the achievement of certain milestones. As of December 31, 2017, we had received $2,611,000 of these grants and recorded them as deferred revenue on our consolidated balance sheet under ASC 605. There was no foundation revenue recorded in 2017 under ASC 605. As a result of the adoption of ASC 606, we decreased deferred revenue and the accumulated deficit by $2,611,000 as of January 1, 2018. As of December 31, 2018, we received $5,706,000 of the grants. In accordance with ASC 606, we record revenue to match expenses for the advancement of the Company’s clinical stage gene therapies for MPS IIIA and MPS IIIB, the production of which is the primary performance obligation. We recorded foundation revenues of $2,796,000 in 2018. The Company allocated the transaction price based on the expected costs plus a margin approach. The aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied as of December 31, 2018 is $296,000. The Company expects the unsatisfied performance obligations to be recognized in the next 12 months. License revenues: We received upfront cash payments for licenses of our technology in years 2008 through 2014. Under ASC 605, the initial upfront cash payments were recorded as deferred revenue on our consolidated balance sheet and then recognized as revenue on a straight-line basis over the life of the patent. As of December 31, 2017, deferred revenues from the licenses were $3,664,000. Under ASC 606 and in accordance with ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , the licenses qualify as functional intellectual property that requires no ongoing performance obligations of the Company after the point the licenses were granted. As a result of the adoption of ASC 606, we decreased deferred revenue and the accumulated deficit by $3,664,000 as of January 1, 2018. Under ASC 605, we would have recorded license revenues of $602,000 in 2018. Royalty revenues: Royalty revenues are recognized in the period of sales under both ASC 605 and ASC 606. Under ASC 606 and in accordance with ASU 2016-10, this license qualifies as functional intellectual property that requires no ongoing performance obligations of the Company after the point the license was granted. ASC 606 specifies an entity should recognize revenue for a sales-based or usage-based royalty promised in exchange for a license of intellectual property at the subsequent sale or as usage occurs, unless the performance obligation has not been satisfied. Restricted cash disclosure In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , requiring restricted cash and restricted cash equivalents to be included with cash and cash equivalents on the statement of cash flows when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The guidance was effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. We adopted this standard during the first quarter of 2018. Restricted cash is now included as a component of cash, cash equivalents and restricted cash on our consolidated statements of cash flows. Restricted cash is recorded within other assets and restricted cash in the accompanying consolidated balance sheets. The inclusion of restricted cash increased the ending balance of the consolidated statements of cash flows by $280,000 for the year ended December 31, 2017 and the corresponding beginning balance of the consolidated statements of cash flows by $280,000 for the year ended December 31, 2018. The inclusion of restricted cash increased the ending balance of the consolidated statements of cash flows by $560,000 for the year ended December 31, 2018.

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- Definition The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -URI http://asc.fasb.org/topic&trid=2122394 + Details
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