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SEC Filings


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

changes in our stock price, changes in the remaining contractual life of the bifurcated derivative, and changes in management's estimated probability of certain events occurring that would impact the compound bifurcated derivatives.

Interest Expense

During the three months ended June 30, 2018 and 2017, we recorded interest expense of approximately $0.2 million in our Condensed Consolidated Statements of Operations related to the convertible promissory notes that we issued in the 2016 Private Placement (the Notes) which bear interest at 4% per annum.

During the six months ended June 30, 2018 and 2017, we recorded interest expense of approximately $0.4 million in our Condensed Consolidated Statements of Operations related to the Notes.

Net Loss

Net loss decreased approximately $11.1 million to $2.9 million for the three months ended June 30, 2018, as compared to a $14.0 million loss for the three months ended June 30, 2017. The decrease in net loss was due primarily to an approximately $9.8 million decrease in warrants revaluation expense, an approximately $1.5 million decrease in related party research expenses and a decrease of approximately $0.2 million in research and development expenses, all partially offset by a decrease in derivative revaluation income of approximately $0.6 million.

Net loss decreased approximately $13.2 million to $5.8 million for the six months ended June 30, 2018, as compared to a $19.0 million loss for the six months ended June 30, 2017. The decrease in net loss was due primarily to an approximately $10.0 million decrease in warrant revaluation expense, an approximately $3.3 million decrease in related party research expenses, all partially offset by an approximately $0.4 million decrease in derivative revaluation income.


Contractual Obligations

During the six months ended June 30, 2018, there have been no material changes to our contractual obligations outside the ordinary course of business from those specified in our 2017 Form 10-K.
Critical Accounting Policies

Management’s Discussion and Analysis of Financial Condition and Results of Operations is based upon our Condensed Consolidated Financial Statements, which have been prepared in conformity with U.S. generally accepted accounting principles (GAAP). Preparing financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Estimates are based on our historical operations, our future business plans and projected financial results, the terms of existing contracts, our observance of trends in the industry, information provided by our customers and information available from other outside sources, as appropriate. These estimates and assumptions are affected by the application of our accounting policies. Critical accounting policies and practices are both important to the portrayal of a company’s financial condition and results of operations, and require management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain. Actual results could differ from such estimates due to changes in economic factors or other conditions that are outside the control of management.

Our summary of significant accounting policies is described in Note 3 to our Consolidated Financial Statements contained in our 2017 Form 10-K. However, please refer to Note 3 in the accompanying Notes to the Condensed Consolidated Financial Statements contained in this Form 10-Q for updated policies and estimates, if applicable, that could impact our results of operations, financial position, and cash flows.
Recently Issued Accounting Pronouncements
    
See Note 3 in the accompanying Notes to the Condensed Consolidated Financial Statements of this Form 10-Q for discussion on recently issued accounting pronouncements.

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