Revenue for Q2/11 was $153.7K minus the cost of revenue equated a profit loss of $127.8K. R&D expense was $1.53M. G&A expense was $1.95M. Non-operating income expense was – ($1.2M). The change in non-operating income (expense) relates primarily to the change in fair value of derivatives. The fair value of the derivative liabilities decreased by $701K. ACT incurred approximately $245.7K in financing costs associated with the Gemini Master Fund (NYSEARCA:GMF) warrant settlement. Interest expense was $272.7K. The decrease in interest expense is due to the decrease in the overall debt.
R&D expenses for the 6 months ended 6/30/11 and FY10: were $3M versus $5.38M in the 6 months in FY10, a decrease of $2.37M or 44%. The decrease in R&D expenditures were related to expensed approximately $2.7M related to 30,192,203 shares of common stock that were issued or expected to be issued to CSO. G&A expenses were $5.15M and $12.5M respectively, a decrease of $7.4Mor 59%. The 2011 decrease was because ACT expensed approximately $8M related to 89,280,595 shares of common stock that were issued or expected to be issued to the former CEO per his employment agreement. Loss on settlement of litigation for were $294K and $0, an increase of 100%. The increase was due to the settlement with Transition Holdings. ACT had accrued $3.2M as of 12/31/10 and then expensed the remaining $294K settlement amount. Non-operating income (expense) was $285K and $1.2M which represents an increase in expenses of $896K or 76%. The change in non-operating income (expense) compared to that of 2010, relates primarily to the change in fair value of derivatives. The fair value of the derivative liabilities increased by $4.08M compared to an increase of $8.5M. ACT incurred approximately $2.4M in financing costs associated with the GMF warrant settlement. Interest expense was $954K compared to $5.8M The decrease in interest expense is due to the decrease in the overall debt. Net loss was $8.16M and $14.9M. 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.
Guidance: ACTC expects R&D expenses to increase in the foreseeable future as ACTC adds personnel, expands pre-clinical research, begins clinical trial activities, and increase regulatory compliance capabilities.
- Cash on 6/30/11 was $16.1M