International Stem Cell Corporation (OTCBB: ISCO) (ISCO)
announces that revenue in the first quarter of 2011 was $1.5 million,
compared with revenue of $273,000 in the first quarter of 2010. The
increase was primarily due to $1.1 million in sales of Lifeline Skin
Care products achieved in the pilot direct-to-consumer launch. Adding to
the revenue growth was a 35% increase over the prior year in sales of
human cell culture research products from subsidiary Lifeline Cell
Technology.
ISCO also disclosed that it is delaying the filing of its Report on Form
10-Q for the period ending March 31, 2011 in order to resolve an
accounting question as described below.
Shortly before the scheduled date for filing the 10-Q, ISCO identified
an issue related to whether a technical interpretation of certain
accounting guidance found in FASB ASC Topic 815, Derivatives and
Hedging could require a change in the manner ISCO has historically
accounted for the value of warrants originally issued as compensation to
brokers working for the placement agent in the Company's 2007 initial
public offering.
The accounting question is highly technical in nature and would have no
impact on cash or revenues, but relates solely to the non-cash
accounting for warrants issued several years ago. Rather than publish
information that might be subject to further revision, ISCO has elected
to delay the filing of its 10-Q until a decision can be made as to
whether or not adjustments will need to be made and, if so, exactly what
the accounting entries will be. The Company is committed to resolving
this question as promptly as possible and will disclose the conclusion
in the 10-Q.
About International Stem Cell Corporation
International Stem Cell Corporation is focused on the therapeutic
applications of human parthenogenetic stem cells and the development and
commercialization of cell-based research and cosmetic products. ISCO's
core technology, parthenogenesis, results in the creation of pluripotent
human stem cells from unfertilized oocytes (eggs). hpSCs avoid ethical
issues associated with the use or destruction of viable human embryos.
ISCO scientists have created the first parthenogenic, homozygous stem
cell line that can be a source of therapeutic cells with minimal immune
rejection after transplantation into hundreds of millions of individuals
of differing genders, ages and racial background. This offers the
potential to create the first true stem cell bank, UniStemCell™. ISCO
also produces and markets specialized cells and growth media for
therapeutic research worldwide through its subsidiary Lifeline Cell
Technology, and cell-based skin care products through its subsidiary
Lifeline Skin Care. More information is available at www.internationalstemcell.com.
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Forward-looking Statements
Statements pertaining to anticipated developments, anticipated
resolution of the accounting question, and opportunities for the company
and its subsidiaries, along with other statements about the future
expectations, beliefs, goals, plans, or prospects expressed by
management constitute forward-looking statements. Any statements that
are not historical fact (including, but not limited to statements that
contain words such as "will," "believes," "plans," "anticipates,"
"expects," "estimates,") should also be considered to be forward-looking
statements. Forward-looking statements involve risks and uncertainties,
including, without limitation, risks inherent in the development and/or
commercialization of potential products, the application of accounting
guidance, regulatory approvals, need and ability to obtain future
capital, application of capital resources among competing uses, and
maintenance of intellectual property rights. Actual results may differ
materially from the results anticipated in these forward-looking
statements and as such should be evaluated together with the many
uncertainties that affect the company's business, particularly those
mentioned in the cautionary statements found in the company's Securities
and Exchange Commission filings. The company disclaims any intent or
obligation to update forward-looking statements.
International Stem Cell Corporation Kenneth
C Aldrich, Chairman 760-940-6383 kaldrich@intlstemcell.com or Lippert/Heilshorn
& Associates Don Markley 310-691-7100 dmarkley@lhai.com |