Commitments

12 Months Ended

Dec. 31, 2012

Commitments [Abstract]

Commitments

Note 11—Commitments

Leases

On February 17, 2012, the Company renewed its lease for the office, warehouse and laboratory facilities in Exton, Pennsylvania under a non-cancelable operating lease through 2023. For each of the years ended December 31, 2012 and 2011, rental expense totaled $1.4 million.

License Agreements

On May 3, 2012, the Company entered into an exclusive license agreement with The Regents of the University of California, under which the Company acquired the rights to commercially apply discoveries resulting from the scientific collaboration between the University of California, Los Angeles (UCLA) and Fibrocell Science, Inc. Under the terms of the license agreement, the Company agreed to pay a non-refundable initial license fee of $10,000 thirty days post execution of the agreement and the Company also agreed to pay an annual license maintenance fee, a percentage of product royalties, and milestone payments based on our achievement of certain clinical and regulatory related milestones for these rights. The Company’s ability to meet the milestones is dependent on a number of factors including final approvals by regulatory agencies and the continued enforceability of patent claims.

On May 3, 2012, the Company also entered into a sponsored research agreement with the Massachusetts Institute of Technology (MIT) to progress the research currently underway at UCLA above. Under the agreement, MIT researchers will investigate viable techniques to maintain the same subpopulations of dermal cell, produce clinically meaningful quantities and deliver them to the body. The agreement is currently scheduled to terminate in June 2015. The amounts in the table assume the foregoing agreements are continued through their respective terms. The agreements may be terminated at the option of either party. In such event, our obligation would be limited to costs through the date of such termination.

The following table summarizes our contractual obligations as of December 31, 2012 (in thousands):

	Payments due by period
	Total		2013		2014		2015		2016		2017		Thereafter
Contractual Obligations
License fee obligations	$	1,395	$	520	$	525	$	270	$	20	$	20	$	40
Operating lease obligations		13,321		1,070	$	1,081		1,211	$	1,254		1,254		7,451
Total	$	14,716	$	1,590	$	1,606	$	1,481	$	1,274	$	1,274	$	7,491