Q2/10 net loss was $2.9 M or $0.00 per share on fully diluted shares of 884 M shares; with the 1st half of FY10 net loss was $15 M or $0.02 on fully diluted shares of 708.5 M shares.
Q2/10 revenue was $205,158. These amounts relate primarily to license fees and royalties collected that are being amortized over the period of the license granted. The decrease in revenue was due to licenses being terminated during Q4/09 with just 1 license renewal for $150 K; the revenue recognized $51,470 in license fee revenue from Transition Holdings and another $37,500 from International Stem Cell Corporation.
Q2/10 R&D expenses was $1.484 M which consisting mainly of facility costs, payroll and payroll related expenses, research supplies and costs incurred in connection with specific research grants and scientific research. The increase in R&D expenditures was due to increased lab, supply and personnel expenses pursuant to the recent IND submission with the FDA for research in the treatment of Stargardt’s Macular Dystrophy (SMD).
G&A for Q2/10 was $1.34 M, primarily due to stock option expenses recognized of $337,424; an increase in legal fees in efforts to secure financing and in defending ACT in various legal matters. During Q2/10, ACTC.OB revised their estimate of certain accrued liabilities arising principally from legal and professional services received and recognized $1.6 M as a reduction to accrued liabilities.
Q2/10 non-operating income (expense) was $4.1 M. The change in non-operating income (expense) relates primarily to $7 M in adjustments to the fair value of derivative liabilities. Interest income was $7,936. Interest expense was $2.4 M. The significant reduction in debt balances due to conversions to common stock contributed to the change in the fair value of derivatives. Also, during Q2/10, ACTC.OB revised estimates of certain accrued liabilities arising principally from legal and professional services received recognized $1.6 M as a reduction to accrued liabilities.
The Q2/10 total stockholder deficit was $37.4 M. As of 6/30/10 approximately 128,298,797 potentially dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive.
Cash and cash equivalents were $4.67 M as of 6/30/10.