TPTX » Topics » 4. Investment in OXIS

This excerpt taken from the TPTX 10-Q filed Nov 12, 2008.

(6) Investment in OXIS

As of December 31, 2007 our investment in OXIS consisted of approximately 14 million shares of OXIS common stock and represented approximately 30% of the outstanding voting stock of OXIS. As indicated in Note 2, effective January 1, 2008 we elected to apply the fair value option for our investment in OXIS. Prior to this election, we accounted for our investment in OXIS under the equity method of accounting following Accounting Principles Bulletin No. 18. We believe fair value provides a more objective measurement of the value of this investment than the equity method of accounting. The investment in OXIS is a Level 1 asset within the fair value hierarchy established by SFAS No. 157 because the investment has a quoted price in an active market, the Over-The-Counter Bulletin Board.

As of December 31, 2007 our investment in OXIS was carried at fair value because we determined that an other-than-temporary impairment of value had occurred. As such, there was no cumulative-effect adjustment to the opening balance of retained earnings as a result of our electing to apply the fair value option for our investment in OXIS. All unrealized gains and losses associated with this investment are included in current period earnings or loss in the statement of operations. The adoption of SFAS No. 159 for our investment in OXIS has no effect on our deferred tax assets and liabilities.

In September 2008 we sold our entire investment in OXIS common stock. As of the date of the sale, the quoted price of OXIS common stock on the Over-The-Counter Bulletin Board was $0.03. The total fair value of the investment in OXIS at the time of the sale was $419,000. We received proceeds from the sale of the investment in OXIS of $42,000, resulting in a loss on the sale of $377,000. The loss on the sale of the investment in OXIS is included in our current period loss in the statement of operations. Because the carrying value at the time of the sale equaled the fair value, we did not record a fair value adjustment for the three months ended September 30, 2008. For the nine months ended September 30, 2008, the total decline in fair value of the investment in OXIS was $559,000 and was recorded in the statement of operations as a fair value adjustment to investment in OXIS International, Inc.

This excerpt taken from the TPTX 10-Q filed Aug 12, 2008.

(5) Investment in OXIS

Our investment in OXIS consists of approximately 14 million shares of OXIS common stock and represents approximately 30% of the outstanding voting stock of OXIS. As indicated in Note 2, effective January 1, 2008 we elected to apply the fair value option for our investment in OXIS. Prior to this election, we accounted for our investment in OXIS under the equity method of accounting following Accounting Principles Bulletin No. 18. We believe fair value provides a more objective measurement of the value of this investment than the equity method of accounting. The investment in OXIS is a Level 1 asset within the fair value hierarchy established by SFAS No. 157 because the investment has a quoted price in an active market, the Over-The-Counter Bulletin Board.

As of December 31, 2007 our investment in OXIS was carried at fair value because we determined that an other-than-temporary impairment of value had occurred. As such, there was no cumulative-effect adjustment to the opening balance of retained earnings as a result of our electing to apply the fair value option for our investment in OXIS. All unrealized gains and losses associated with this investment will be included in current period earnings or loss in the statement of operations.

As of June 30, 2008 the quoted price of OXIS common stock on the Over-The-Counter Bulletin Board was $0.03. For the three and six months ended June 30, 2008, the total decline in fair value of the investment in OXIS was $1.3 million and $0.5 million, respectively, and was recorded in the statement of operations as a fair value adjustment to investment in OXIS International, Inc. The OXIS financial results for the three and six months ended June 30, 2008 were not available when we filed this Quarterly Report on Form 10Q, therefore we are unable to determine what our equity in the OXIS net income or loss for the three and six months ended June 30, 2008 would have been if we had continued to follow the equity method of accounting for the OXIS investment. The adoption of SFAS No. 159 for our investment in OXIS has no effect on our deferred tax assets and liabilities.

This excerpt taken from the TPTX 10-Q filed May 13, 2008.

(5) Investment in OXIS

 

Our investment in OXIS consists of approximately 14 million shares of OXIS common stock and represents approximately 30% of the outstanding voting stock of OXIS.  As indicated in Note 2, we elected to apply the fair value option for our investment in OXIS.  Prior to this election, we accounted for our investment in OXIS under the equity method of accounting following Accounting Principles Bulletin No. 18.  We believe fair value provides a more objective measurement of the value of this investment than the equity method of accounting.   The investment in OXIS is a Level 1 asset within the fair value hierarchy established by SFAS No. 157 because the investment has a quoted price in an active market, the Over-The-Counter Bulletin Board.

 

As of December 31, 2007 our investment in OXIS was carried at fair value because we determined that an other-than-temporary impairment of value had occurred.  As such, there was no cumulative-effect adjustment to the opening balance of retained earnings as a result of our electing to apply the fair value option for our investment in OXIS.  All unrealized gains and losses associated with this investment will be included in current period earnings or loss in the statement of operations.

 

As of March 31, 2008 the quoted price of OXIS common stock on the Over-The-Counter Bulletin Board was $0.12.  For the three months ended March 31, 2008, the total increase in fair value of the investment in OXIS was $699,000 and was recorded in the statement of operations as a fair value adjustment to investment in OXIS International, Inc.  If we had continued to follow the equity method of accounting, the equity in the net loss of OXIS would have been approximately $327,000.  The adoption of SFAS No. 159 for our investment in OXIS has no effect on our deferred tax assets and liabilities.

 

These excerpts taken from the TPTX 10-K filed Mar 31, 2008.

4. Investment in OXIS

        Our investment in OXIS consists of approximately 14 million shares of OXIS common stock, representing approximately 30% of the outstanding voting stock of OXIS. The investment in OXIS was acquired in the Merger (see Note 2). For the last six months of 2007 the recorded value of our investment in OXIS was greater than its fair value. As a result, we determined the impairment of value was other than temporary, and therefore wrote down the investment to its fair value at December 31, 2007. This resulted in an impairment charge of $1.9 million. This impairment charge is included in the consolidated statements of operations as impairment of equity method investment. The fair value of the investment was determined based upon the December 31, 2007 Over-The-Counter Bulletin Board quoted price for OXIS common stock.

4. Investment in OXIS



        Our investment in OXIS consists of approximately 14 million shares of OXIS common stock, representing approximately 30% of the outstanding voting stock of
OXIS. The investment in OXIS was acquired in the Merger (see Note 2). For the last six months of 2007 the recorded value of our investment in OXIS was greater than its fair value. As a result,
we determined the impairment of value was other than temporary, and therefore wrote down the investment to its fair value at December 31, 2007. This resulted in an impairment charge of
$1.9 million. This impairment charge is included in the consolidated statements of operations as impairment of equity method investment. The fair value of the investment was determined based
upon the December 31, 2007 Over-The-Counter Bulletin Board quoted price for OXIS common stock.



This excerpt taken from the TPTX 10-K filed Mar 29, 2007.

4.   Investment in OXIS

The Company’s investment in OXIS consists of approximately 14 million shares of OXIS common stock, representing approximately 31% of the outstanding voting stock of OXIS. The investment in OXIS was acquired in the Merger (see Note 2). The market value of OXIS common stock was $0.21 as of December 31, 2006, an aggregate market value of approximately $2,866,000.

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