12.  Subsequent Event

In June 2018, AxoGen Corporation (“AC”), a wholly owned subsidiary of the Company entered into an Agreement for Purchase and Sale of Real Property (the “Purchase Agreement”) with ARC CRVANOH001, LLC, a Delaware limited liability company (“ARC”), setting forth the terms and conditions of a potential acquisition by AC of certain real property located in Vandalia, Ohio (the “Property”).  AC transferred it rights under the Purchase Agreement to the Company’s wholly owned subsidiary AxoGen Processing Corporation and on July 31, 2018, AxoGen Processing Corporation completed the purchase of the Property pursuant to the terms of the Purchase Agreement. 

The Property, which is located near the Company’s current leased processing facility for Avance® Nerve Graft and Avive® Soft Tissue Membrane, is comprised of a 70,000 square foot building on approximately 8.6 acres of land.  It is expected that renovations will be completed within 24 months of the closing to provide a new processing facility that can be included in the Company’s biologics license application (“BLA”) for the Avance® Nerve Graft.  The capacity of the Property once operational, along with the ability for expansion, is expected to provide processing capabilities that will meet the Company’s intended sales growth.