Q3/10 Results, Advanced Cell Technology (ACTC.OB)
ACTC.OB had a net loss of $1.9M or ($0.00) per share.
Q3/10 revenue was $205K recognizing $51,470 (25% of total revenue) in license fee revenue from Transition Holdings and another $37,500 (18% of total revenue) from International Stem Cell Corporation. R&D expenses were $1.34M and G&A expenses clocked in at $1.09M. Settlement of litigation was $3.13M with a non-operating income (expense) of $7.34M. Interest income was $4.4K.
- ACTC.OB ended 9/30/10 with $2.2M in cash.
G&A expenses for Q3/10 and 2009 were $1,094,604 and $453,561, respectively, an increase of $641,043, or 141%. The Q3/10 increase was primarily due to an increase stock option expense. Additionally, duringQ3/10, ACTC.OB experienced an increase in legal fees in our efforts to secure financing and in defense of various legal matters. R&D expenses for Q3/10 versus Q3/09 were $1,348,503 and $700,818, respectively, an increase of $647,685, or 92%. R&D consists mainly of facility costs, payroll and payroll related expenses, research supplies and costs incurred in connection with specific research grants, and for scientific research. The increase in R&D expenditures during Q3/10 as compared to the same period in 2009 is primarily due to increased lab, supply and personnel expenses in 2010 pursuant to recent IND submission with the FDA for research in the treatment of Stargardt’s Macular Dystrophy (SMD). The adjustment to fair value of derivatives was $9,550,745 and ($36,754,306) for Q3/10 and Q3/09, respectively. The significant reduction in debt balances due to conversions to common stock contributed most significantly to the change in the fair value of derivatives during Q3/10 as compared with Q3/09. During the 9 months ended 9/30/10, ACTC.OB revised its estimate of certain accrued liabilities arising principally from legal and professional services received and accordingly, recognized $1.6M as a reduction to accrued liabilities.
