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SEC Filings


10-Q
FIBROCELL SCIENCE, INC. filed this Form 10-Q on 08/09/2018
Entire Document
 

Compensation and related expense increased approximately $0.1 million, or 12.6%, for the six months ended June 30, 2018 as compared to the same period in 2017. This increase was due primarily to higher costs for stock compensation expense and bonus amounts, partially offset by lower salary and salary related costs.

(2)
Severance expense decreased approximately $0.1 million for the three and six months ended June 30, 2018 as compared to the same periods in 2017. This decrease was attributable to the resignation and severance agreements with two members of management in the 2017 period. There was no such activity or expense in the 2018 period.

(3)
Professional fees decreased approximately $0.1 million, for the three months ended June 30, 2018 as compared to the same period in 2017. This decrease was due primarily to decreased legal and accounting fees.
Professional fees decreased approximately $0.2 million, for the six months ended June 30, 2018 as compared to the same period in 2017. This decrease was due primarily to decreased legal and accounting fees.
(4)
Facilities and related expense and other, were comparable for the three months ended June 30, 2018 and 2017.
Facilities and related expense and other, increased approximately $0.2 million, or 18.5%, for the six months ended June 30, 2018 as compared to the same period in 2017. This increase was due primarily to approximately $0.2 million of income recognized in the 2017 period, as a result of the release of certain reserves included in accrued expenses as of December 31, 2016.
Warrant Revaluation Income (Expense)

During the three months ended June 30, 2018 and 2017, we recorded non-cash income of approximately $0.1 million and non-cash expense of approximately $9.7 million for warrant revaluation charges in our Condensed Consolidated Statements of Operations, respectively. The primary reason for the significant change between the warrant revaluation charges noted above was due to the decrease in our stock price (from $2.95 to $2.71) during the three months ended June 30, 2018 compared to the increase (from $10.00 to $20.05) in our stock price during the three months ended June 30, 2017.
During the six months ended June 30, 2018 and 2017, we recorded non-cash income of approximately $0.3 million and non-cash expense of approximately $9.7 million for warrant revaluation charges in our Condensed Consolidated Statements of Operations, respectively. The primary reason for the significant change between the warrant revaluation charges noted above was due to the decrease in our stock price (from $3.20 to $2.71) during the six months ended June 30, 2018 compared to the increase (from $9.45 to $20.05) in our stock price during the six months ended June 30, 2017.
Due to the nature and inputs of the model used to assess the fair value of our outstanding warrants, it is normal to experience significant fluctuations from period to period. These fluctuations are due to a variety of factors including changes in our stock price, changes in the remaining contractual life of the warrants, and changes in management's estimated probability of certain events occurring that would impact the warrants.
Derivative Revaluation Income (Expense)

During the three months ended June 30, 2018 and 2017, we recorded non-cash derivative revaluation income of approximately $0.2 million and $0.9 million respectively, for derivative liability revaluation charges in our Condensed Consolidated Statements of Operations related to a compound bifurcated derivative initially recorded in September 2016 in connection with the private placement of an aggregate of $18,087,500 in principal of convertible promissory notes and accompanying warrants to purchase an aggregate of 1,205,840 shares of our common stock to institutional and accredited investors (the 2016 Private Placement). The primary reason for the significant change between the derivative revaluation charges noted above was due to the decrease in our stock price (from $2.95 to $2.71) during the three months ended June 30, 2018 compared to the increase (from $10.00 to $20.05) in our stock price during the three months ended June 30, 2017.

During the six months ended June 30, 2018 and 2017, we recorded non-cash derivative revaluation income of approximately $0.2 million and $0.5 million respectively, for derivative liability revaluation charges in our Condensed Consolidated Statements of Operations related to a compound bifurcated derivative initially recorded in September 2016 in connection with the 2016 Private Placement. The primary reason for the significant change between the derivative revaluation charges noted above was due to the decrease in our stock price (from $3.20 to $2.71) during the six months ended June 30, 2018 compared to the increase (from $9.45 to $20.05) in our stock price during the six months ended June 30, 2017.
    
    Due to the nature and inputs of the model used to assess the fair value of our compound bifurcated derivative, it is normal to experience significant fluctuations from period to period. These fluctuations are due to a variety of factors including

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