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SEC Filings


10-Q
FIBROCELL SCIENCE, INC. filed this Form 10-Q on 08/09/2018
Entire Document
 
Fibrocell Science, Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
Note 7. Stock-Based Compensation (continued)

The fair market value of these stock options at the date of grant was estimated using the Black-Scholes option-pricing model with the following weighted average assumptions for the six months ended:
 
June 30, 2018
 
June 30, 2017
Expected term
6 years

 
6 years

Interest rate
2.61
%
 
1.95
%
Dividend rate

 

Volatility
88.0
%
 
88.7
%

Stock Option Activity
    
The following table summarizes stock option activity for the six months ended June 30, 2018:
 
Number of
shares
 
Weighted-
average
exercise
price
 
Weighted- average
remaining
contractual
term
 
Aggregate
intrinsic
value
Outstanding at December 31, 2017
217,926

 
$
50.30

 
7 years, 3 months
 
$

Granted
84,800

 
2.99

 
9 years, 9 months
 

Exercised

 

 
 
 
 

Forfeited
(1,427
)
 
6.14

 
 
 
 

Expired
(1,832
)
 
57.41

 
 
 
 

Outstanding at June 30, 2018(1)
299,467

 
$
44.36

 
7 years, 6 months
 
$
13

Exercisable at June 30, 2018
162,760

 
$
74.69

 
6 years, 2 months
 
$

(1)
Includes both vested stock options as well as unvested stock options for which the requisite service period has not been rendered but that are expected to vest based on achievement of a service condition.

The total fair value of options vested during the six months ended June 30, 2018 was approximately $0.5 million. Additionally, as of June 30, 2018, there was approximately $0.8 million of unrecognized compensation expense related to non-vested stock options which is expected to be recognized over a weighted-average period of 1.9 years.
The Company accounts for forfeitures when they occur. Ultimately, the actual expense recognized over the vesting period will be for only those shares that vest.
Note 8. Related Party Transactions

The Company and Precigen, Inc. (Precigen), a wholly owned subsidiary of Intrexon Corporation (Intrexon), are parties to two distinct exclusive channel collaboration agreements including the Exclusive Channel Collaboration Agreement entered into in October 2012 and amended in June 2013 and January 2014 (as amended, the 2012 ECC) and the Exclusive Channel Collaboration Agreement entered into in December 2015 (the 2015 ECC). Pursuant to these agreements, the Company engages Precigen for support services for the research and development of product candidates covered under the respective agreements and reimburses Precigen for its cost for time and materials for such work. Additionally, the Company’s future commitments pursuant to the 2012 ECC agreement includes potential cash royalties and the Company’s future commitments pursuant to the 2015 ECC agreement includes potential cash royalties and various developmental milestone payments. No royalties or milestone payments have been incurred to date.

For the three months ended June 30, 2018, the Company incurred total expenses of approximately $0.1 million with Precigen as compared to approximately $1.7 million, for the three months ended June 30, 2017, for work performed under the 2012 ECC. During the same periods, no expenses were incurred for work performed under the 2015 ECC. Of the $0.1 million

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