ANNUAL FINANCIAL REPORT 2010 2010 - TiGenix

7.3.2.3 Selling, general and administrativeexpensesSelling, general and administrative expenses were €7,316k in2009 compared to €6,851k in 2008, an increase of 7%.The main components of these expenses were as follows forthe years ended December 31, 2008 and December 31, 2009:Years ended DecThousands of Euro (€) 2009Personnel costs 4,268 3,595Operating costs 2,011 2,378General costs 773 667Depreciation 265 210Total 7,316 6,851The major part of the increase has occurred as a result ofan increase in the sales & marketing costs in preparationfor the commercial sales of the Company’s lead productsChondroCelect and ChondroMimetic in 2010.7.3.2.4 Financial resultsIn 2009, the Company had a financial result of €300k ascompared to €1,340k in 2008.TiGenix receives net interest on the sums it has outstanding onits bank deposits, in 2008 the Company invested 20 million intime deposits of 3 and 6 months, taking into consideration thecash needs of the period in between, which was the result ofthe higher financial result in 2008.7.3.2.5 Net lossThe net loss was €14,098k in 2009 compared to €15,165kin 2008, a decrease of 7%. The revenues increased and theoperating charges decreased as explained above. Part of theoperating loss was offset by the positive financial result of€300k in 2009.7.4 Consolidated cash flowstatementThousands of Euro (€)CASH FLOWS FROM OPERATING ACTIVITIES31/12/Operating Result (16,6Depreciation, amortization and impairment results 2,Capitalized development costs (1,6Share-based compensationOther financial resultInterest paid (Income taxesIncrease/(decrease) in trade payables (1Increase/(decrease) in other current liabilities (3(Increase)/decrease in inventories ((Increase)/decrease in receivables (4(Increase)/decrease in deferred charges & accrued income (6Total adjustments (3156 • TiGenix • Rights Offering