Financial expense for the third quarter of 2012 decreased to nil from $0.27 million for the same period in 2011, mainly as a result of changes in valuation of the warrant liability.For the quarter ended September 30, 2012, the Company reported a net loss of $3.03 million or $0.25 per share, compared with a net loss of $3.42 million or $0.35 per share in the comparable 2011 period. Nine Month Financial Results Gross R&D expense for the nine months ended September 30, 2012 was $5.13 million, up from $4.50 million for the same period in 2011 due to an increase in the use of materials and sub-contractors in connection with preparations for the Company’s ongoing Phase II EPODURE clinical trial in Israel and planned Phase II clinical trial in the U.S., preparations for the trials of INFRADURE in Israel and an increase in R&D personnel. For the nine months ended September 30, 2012, net R&D expense decreased to $3.36 million from $3.57 million for the comparable prior-year period due to the participation by the Israeli Office of the Chief Scientist of $1.77 million in the 2012 period compared with $0.86 million for the 2011 period, which was partially offset by higher gross R&D expenses as detailed above. General and administrative expense for the first nine months of 2012 was $5.60 million compared with $3.71 million for the first nine months of 2011 primarily due to increased fees for legal and professional services and stock-based compensation granted to consultants and directors. The Company’s net loss for the first nine months of 2012 was $12.69 million or $1.20 per share, compared with a net loss of $6.09 million or $0.76 per share for the same period of 2011. Balance Sheet Highlights As of September 30, 2012, Medgenics had cash and cash equivalents of $9.00 million, compared with $5.00 million as of December 31, 2011. For the nine months ended September 30, 2012, the Company used $5.87 million in net cash to fund operating activities, compared with $5.46 million for the nine months ended September 30, 2011.