10K Notables, part 2
Net loss for 2010 $ (54,373,332 )
As of December 31, 2010, we have $15,889,409 in cash, under $1 million in debt, and $4,636,302 in working capital. During 2010, we received the following amounts:
· $977,917 from a federal grant under the Patient Protection and Affordable Care Act of 2010 (“PPACA”);
· $580,165 upon the sale of our Series A-1 preferred stock;
· Approximately $9.5 million through the sale of 1,000 shares of our Series B preferred stock;
· $4 million through the sale of our Series C preferred stock;
· $5,880,000 through the sale of convertible notes; and
· $1,685,000 upon the second close of our 2009 debenture.
We plan to fund our operations for the next twelve months primarily from the following financings:
· As of December 31, 2010, $1,581,834 is available to us upon the sale of our Series A-1 preferred stock for a maximum placement commitment of $5 million.
· As of December 31, 2010, $21 million is available to us upon the sale of our Series C preferred stock for a maximum placement commitment of $25 million.
· We continue to repay our debt financings in shares of common stock, enabling us to use our cash resources to fund our operations.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Advanced Cell Technology, Inc. and subsidiary’s internal control over financial reporting as of December 31, 2010, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated March 16, 2011 expressed an unqualified opinion on the effectiveness of Advanced Cell Technologies, Inc. and subsidiary’s internal control over financial reporting.
Warrants Exercisable, December 31, 2010 134,931,242
Options Outstanding..48,376,119
On December 20, 2010, Optimus purchased a claim previously brought to the Company in connection with indebtedness to Ropes and Gray LLP for legal services performed between May 2007 and January 2010. On December 21, 2010, Optimus and the Company settled the claim in the full amount of indebtedness, including legal fees, for $2,486,256. During December 2010, the Company issued 17,146,254 shares of its common stock to Optimus in full settlement of this claim. The legal services received from Ropes and Gray LLP had been accrued during the years 2007-2010, in the periods in which these expenses were incurred. The amount due to Ropes and Gray for their services was $2,386,278, and the Company recognized the additional $99,978 as legal expenses during the year ended December 31, 2010. This settlement ended all claims previously brought to the Company by Ropes and Gray LLP, and Optimus as bona fide claimant.
In December 2010, the Company settled a claim brought against it by Optimus related to the Company’s inability to previously issue shares of its common stock under the Series B preferred stock warrants. The Company and Optimus settled on the issuance of shares of the Company’s common stock to Optimus worth $654,000, which was recognized in financing costs in the Company’s consolidated statements of operations during the year ended December 31, 2010. The Company is required to issue 3,222,786 to Optimus to settle this claim in full.
The Board of Directors held one meeting in 2010. All board members were present at the meeting.
With respect to the cash bonus awarded to Dr. Lanza in 2010, $146,875 was awarded. The Board approved the award of $100,000 as a bonus because this was the amount that the Board thought was fair in light of Mr. Lanza’s recent contributions to the Company and one that he would also find acceptable. The balance of the bonus awarded to Dr. Lanza was awarded to him as part of the bonuses awarded to all employees that participated in the filing of the IND application multiplied by 1.5, which equaled $46,875.
Option Exercises and Stock Vested
There were no exercises of stock options for the named executive officers in the year ended December 31, 2010. During 2010, Mr. Caldwell was issued 85,325,595 shares of restricted stock with a one year restriction. During 2010, Mr. Lanza was issued 20,000,000 shares of stock which vested immediately.
Beneficial Ownership of Directors
Directors and Executive Officers as a Group ( 5 Persons) 158,896,720 10.38 %
