Comparison of the three months ended June 30, 2021 compared to the three months ended June 30, 2020
Research and Development Expense
Research and development expense decreased approximately $0.2 million, or 44%, to $0.3 million for the three months ended June 30, 2021 as compared to approximately $0.5 million for the three months ended June 30, 2020. This decrease was due to lower headcount resulting in lower salary and share-based compensation expenses period over period.
General and Administrative Expense
General and administrative expense decreased approximately $0.1 million, or 15%, to $0.6 million for the three months ended June 30, 2021 compared to approximately $0.7 million for the three months ended June 30, 2020. This decrease was due to $ lower headcount resulting in lower salary and share-based compensation expenses period over period.
Forgiveness of notes payable
On May 23, 2021, we were notified by the Lender that provided our PPP Loan that the Small Business Administration determined that our application for PPP loan forgiveness was approved, and the SBA remitted the forgiven amount to the Lender. As a result, we recorded a gain from forgiveness of our notes payable of approximately $0.4 million.
Grant income
For the three months ended June 30, 2021, we recorded grant income of approximately $47,000 for qualified expenditures under our SBIR grant. There was no grant income for qualified expenditures from an SBIR grant for the three months ended June 30, 2020 as the modified Phase II grant development plan we submitted to the NICHD had not yet been approved as of June 30, 2020.
Change in fair value of warrant liability
During the three months ended June 30, 2021, the change in fair value of our warrant liability resulted in other income of approximately $10,000 due primarily to a lower stock price of the underlying common shares. This compared to approximately $78,000 of other income for three months ended June 30, 2020 due to a decrease in the price of the underlying common shares.
Other income (expense), net
In June of 2021, we received a refund payment of approximately $71,000 for certain withholding taxes paid in previous years to the German tax authorities which were remitted on to us on behalf of Harvard Apparatus Regenerative Technology GmbH, our German subsidiary.
Comparison of the six months ended June 30, 2021 to the six months ended June 30, 2020
Research and Development Expense
Research and development expense decreased approximately $0.4 million, or 34%, to $0.8 million for the six months ended June 30, 2021 as compared to approximately $1.2 million for the six months ended June 30, 2020. This decrease was due to lower headcount resulting in $0.3 million in lower salary and share-based compensation expenses and approximately $0.1 million of lower operating expenses.
General and Administrative Expense
General and administrative expense decreased approximately $0.8 million, or 42%, to $1.1 million for the six months ended June 30, 2021 compared to approximately $2.0 million for the six months ended June 30, 2020. This decrease was due to approximately $0.3 million lower salary and related expenses and approximately $0.5 million in lower share-based compensation costs due to the separation of our former chief executive officer and chief financial officer in 2020.