ACTC.OB reported revenue of $153.6K with a cost of revenue of $22.9K for a gross profit of $130.7K. Revenue for Q1/11 was $153,688 versus Q1/10 of $205,158, represented a decrease of $51,470, or 25%. These amounts relate primarily to license fees and royalties collected that are being amortized over the period of the license granted, and are therefore typically consistent between periods. The decrease in revenue during Q1/11 was due to licenses being terminated during Q4/10. R&D expenses for Q1/11 were $1,474,773 versus Q1/10 of $3,895,581, respectively, a decrease of $2,420,808, or 62%. 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 decrease in R&D expenditures during Q1/11 as compared to Q1/10 is because ACTC.OB (during Q1/10) expensed approximately $2.7M related to 30,192,203 shares of common stock that were issued or expected to be issued to their CSO. G&A Q1/11 expenses were $3,197,526 versus $11,218,243 for Q1/10, a decrease of $8,020,717, or 71%. The Q1/11 decrease was because during Q1/10 ACTC.OB expensed approximately $8M related to 89,280,595 shares of common stock that were issued or expected to be issued to the CEO per his employment agreement. Loss on settlement of litigation was $294.1K with non-operating income (expense) was $1.493M for a net loss of $3.342M. Loss on settlement of litigation for Q1/11 was $294,144 versus $0.99 for Q1/10, an increase of 294,144 or 100%. The increase was primarily due to the settlement with Transition Holdings. ACTC.OB had $294,144 accrued of $3,205,856 as of 12/31/10 and then expensed the remaining $294,144 settlement amount during Q1/11. Non-operating income (expense) for Q1/11 was $1,493,618 versus ($2,874,317) for Q1/10, which represents an increase of $4,367,935 or 152%. The change in non-operating income (expense) duringQ1/11, compared to that of 2010, relates primarily to the change in fair value of derivatives. DuringQ1/11, the fair value of the derivative liabilities decreased by $4,789,419 compared to a decrease of $1,584,704 for Q1/10. During Q1/11, ACTC.OB incurred approximately $2M in financing costs associated with the Gemini Master Fund warrant settlement. Interest expense was $681,710 for Q1/11compared to $3,352,774 for Q1/10. The decrease in interest expense is due to the decrease in the overall debt. Net loss for Q1/11was $3,342,037 versus $17,849,633 for Q1/10. The change in net loss in each period is primarily related to the decrease in payroll expenses related to the shares issued to the CEO and CSO and the changes in the fair value of the derivative liabilities. ACTC.OB reported a loss in Q1/11 from operations of $4.8M compared to a loss from operations of $15M in Q1/10. ACT reported compared to a loss in the same period in 2010 of $17.8M, or $(0.03) per share. Net cash used in operations for the 2011 first quarter was $3.4 million, compared to net cash used in operations of $2.9M in the same period in 2010.
- ACTC.OB ended Q1/11 with cash and cash equivalents of $13.75M.