Implantation Dermoid Implantation Dermoid. Piece of skin and subcutaneous tissue. Cut surface shows a cyst 0.5cm diameter adherent to the over-lying skin and containing thick opaque white material. 1921. HISTOLOGY: Sections of cyst wall show lining of squamous epithelium with a dense fibrous tissue capsule. HISTORY: M.N. female aged 16 had lipoma removed in 1921 and subsequently a small swelling was noticed in the scar. This was excised.