The stock of Advanced Cell Technology, Inc. (OTC:ACTC) has been jumping up and down all the time. Every time the price 
climbs up a bit, it fells back down on the next day with no particular explanation.
Fortunately, last Friday ACT managed to increase its stock price by 0.88%, on a traded volume of over 4 million shares. Most probably, the reason for the new price jump was the latest 10-Q report of the company.
On Thursday, ACT reported that they were exiting the quarter ended June 30, this year with $16.1 million in cash. According to the report, the revenue has been generated through license fees and royalty payments.
The impressive revenue has certainly encouraged investors, especially when the CEO of ACT announced they have commenced their landmark trials for SMD and AMD and the company was ready to negotiate new partnerships. However, the rest of the numbers in the 10-Q pointed that the company’s research and development expenses, as well as the operating loss, have considerably increased. Besides, the stockholders’ deficit was still over $6 million, which is also worth mentioning.
So, now it is all about the future. Despite being fully satisfied with its capital, the team of ACT state that until obtaining further relevant pre-clinical and clinical data they will not be able to estimate their future expenses and whether the company will receive cash inflows from the resulting products.[BANNER]
Also, on a long-term basis ACT claims it has no expectation of generating any meaningful revenues from its product candidates for a substantial period of time. Thus, the company will rely on raising funds in capital transactions to finance its research and development programs, while seeking additional funding.
Apart from these facts, the 10-Q states that ACT “cannot assure you that public or private financing or grants will be available on acceptable terms, if at all.” Nevertheless, the management concludes that their available cash and expected income will be sufficient to finance most of the company’s current activities for the foreseeable future.
