Q1/10 Results, Advanced Cell Technology, Inc. (OTCBB ACTC.OB)
Revenues were $250 K with a net loss of $17.8 M or $0.03 per 770.5 M fully-diluted shares outstanding. ACTC.OB recognized $51.5 K and $37.5 K in license fee revenue.
R&D expenses were $3.9 M. The increase in R&D expenditures is primarily due to 30 M shares issued to the CSO valued at $2.7 M as well as hiring of new R&D employees. ACTC.OB expects that R&D expenses will continue to increase in the foreseeable future as they add personnel, expand pre-clinical research, begin clinical trial activities and increase regulatory compliance capabilities.
G&A expenses were $11.2 M. This expense increase was primarily due to 89.2 M shares issued to the CEO valued at $8 M (in lieu of past due salary) and another 16.8 M shares issued to our directors valued at $1.5 M. Additionally, ACTC.OB experienced an increases in legal fees in efforts to secure financing and various legal matters to settle past due services and other operating expenses incurred with the issuance of shares of common stock. Also, during Q1/10, settled $505 K in accounts payable through the issuance of 39.4 M shares of common stock with a value of $5.3 M. Non-operating income (expense) was $2.9 which represents an increase of $10.4 M in non-operating income (expense). The change in non-operating income (expense) for Q1/10 relates primarily to the change in fair value of derivatives related to the debt financings, offset by the adjustments to loss on extinguishment of convertible debentures during Q1/10 was $1.8 M. Interest expense was $3,352,774. As of 3/31/10, ACTC.OB had cash, cash equivalents of $5.8 M.
ACTC.OB recognized all of the restricted stock up front (the most conservative approach) which distorted the Q1/10 P/L.
Q1/10 Highlights included:
- Received Orphan Indication status for RPE therapy for Stargardt’s disease; being notified by the NIH that the 2 ½ year effort to include “blastomere technology” for deriving stem cell lines,
- WITHOUT embryo destruction was to be included in a “proposed rule making” to change the NIH definition of what lines would qualify for federal funding,
- Publishing findings that current iPS cell technology senesce after derivation into a specific cell line suggests that this new generational platform requires additional scientific discovery,
- Announced completion of “end of life” animal studies for toxicity and biodistribution which addresses many of the questions raised by the FDA as they review the IND application,
- Now has 890 M shares outstanding and after May (redemption); senior debentures which once aggregated a “face value” of over $60 M is now under $5 million and will extinguish through equal monthly redemptions by yearend.
ACTC.OB closed 5/7/10 at $0.08 with a market cap of $60.5 M.
