Aug 17, 2011 |
International Stem Cell Corporation Announces Second Quarter 2011 Financial Results and Corporate Events |
International Stem Cell Corporation (OTCBB: ISCO), a biotechnology
company that developed a powerful new stem cell technology called
"parthenogenesis" which promises to significantly advance the field of
regenerative medicine, today announced financial results for the quarter
ended June 30, 2011 and for the first six months of the fiscal year and
provided an update on corporate events.
ISCO reported year-to-date revenues of $2.6 million compared to $0.7
million for the same time period in 2010, representing an increase of
271%. The increase in our revenues relates to sales generated by ISCO's
wholly-owned subsidiaries Lifeline Skin Care (LSC) which contributed
$1.7 million and Lifeline Cell Technology (LCT) which contributed $0.9
million of revenues.
Total year-to-date expenses, excluding cost of sales increased $2.0
million or 38%, compared to the first six months of the previous year.
The most significant reasons for the increase in total expenses related
to increases in R&D and G&A. Research & Development expenses increased
primarily due to increased activity on our scientific projects. General
& Administrative expenses increased primarily due to increased
headcount, non-cash stock-based compensation and increased expenses
related to business development activity and general corporate expenses.
Our cash balance at June 30, 2011 was $3.6 million. Net cash used in
operating activities for the six months ended June 30, 2011 was $3.0
million.
Second Quarter 2011 Highlights:
-- The first U.S.-based donor was enrolled in ISCO's program to
establish a bank of clinical-grade human parthenogenetic stem cells
(hpSCs) capable of being immune-matched to millions of patients.
-- We strengthened our senior management team to assist in the continued
development of the Company. Kurt May was appointed Senior Vice President
responsible for mergers and acquisitions and development of new
international collaborations. Donna Queen was added to the management
team as Vice President of LSC, where she is responsible for marketing
and business development.
-- We started a series of preclinical animal studies of neuronal cells
derived from hpSCs. The studies will evaluate the in vivo safety and
tumorigenicity of neuronal cells as well as their ability to develop
into functioning dopaminergic neuron–like cells to treat Parkinson's
disease.
-- We successfully completed the first series of preclinical testing of
hepatocytes derived from hpSCs. In the transplantation mouse model,
inoculated cells were capable of engrafting and surviving in specific
niches within the liver, and were further developing into cells with
essential hepatocyte-like features.
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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| | International Stem Cell Corporation and Subsidiaries (A Development Stage Company) Condensed Consolidated Statements of Financial Condition | | | | | | | | | | |
| | | | | June 30, 2011 | | | | | | December 31, 2010 (Restated)(1) | | | | | (Unaudited) | | | | | | | Assets | | | | | | | | | | |
Cash and cash equivalents
| | | |
$
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3,581,933
| | | | | | |
$
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5,782,027
| |
Accounts receivable
| | | | |
341,666
| | | | | | | |
738,506
| |
Inventory
| | | | |
1,329,433
| | | | | | | |
856,083
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Prepaid expenses and other current assets
| | | |
|
290,196
|
| | | | | |
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228,338
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Total current assets
| | | | |
5,543,228
| | | | | | | |
7,604,954
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Property and equipment, net
| | | | |
1,495,916
| | | | | | | |
1,295,328
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Patent licenses, net
| | | | |
1,056,562
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986,714
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Deposits and other assets
| | | |
|
16,279
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| | | | | |
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39,812
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| Total assets | | | |
$
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8,111,985
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| | | | | |
$
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9,926,808
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| | | | | | | | | | |
| Liabilities and Stockholders' Equity | | | | | | | | | | |
Accounts payable
| | | |
$
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1,032,531
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$
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582,824
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Accrued expenses
| | | | |
855,315
| | | | | | | |
545,781
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Deferred revenue
| | | | |
137,834
| | | | | | | |
759,667
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Advances
| | | | |
250,000
| | | | | | | |
250,000
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Warrants to purchase common stock
| | | |
|
1,027,171
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| | | | | |
|
2,399,605
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| | | | | | | | | | |
| Total current liabilities | | | |
|
3,302,851
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| | | | | |
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4,537,877
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| | | | | | | | | | |
| | | | | | | | | | |
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Commitments and contingencies
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Stockholders' Equity
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Common stock, $.001 par value, 200,000,000 shares authorized,
76,599,928 shares and 74,771,107 shares issued and outstanding at
June 30, 2011 and December 31, 2010, respectively
| | | | |
76,600
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74,771
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Convertible preferred stock, $.001 par value, 20,000,000 shares
authorized, 2,800,043 shares issued and outstanding at June 30,
2011 and December 31, 2010, respectively
| | | | |
2,800
| | | | | | | |
2,800
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Subscription receivable on common stock
| | | | |
-
| | | | | | | |
(4,875
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)
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Additional paid-in capital
| | | | |
59,780,363
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56,170,006
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Deficit accumulated during the development stage
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(55,050,629
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)
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(50,853,771
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)
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Total stockholders' equity
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4,809,134
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| | | | | |
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5,388,931
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| Total liabilities and stockholders' equity | | | |
$
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8,111,985
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| | | | | |
$
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9,926,808
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(1)
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The Company restated its financial statements for the year ended
December 31, 2010, and the quarter ended March 31, 2011.
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| | International Stem Cell Corporation and Subsidiaries (A Development Stage Company) Condensed Consolidated Statements of Operations (Unaudited) | | | | | | | | | | | |
| | | | Three Months Ended June 30, | | | | Six Months Ended June 30, | | | | Inception (August 2001) through June
30, 2011 (Restated)(1) | | | | 2011 |
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| 2010 (Restated)(1) | | | | 2011 (Restated)(1) |
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| 2010 (Restated)(1) | | | | Revenues | | | | | | | | | | | | | | | | | | | |
Product sales
| | |
$
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1,114,309
| | | | |
$
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441,118
| | | | |
$
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2,629,225
| | | | |
$
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713,744
| | | | |
$
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5,728,390
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Royalties and license
| | |
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-
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| | | |
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-
|
| | | |
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-
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| | | |
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-
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| | | |
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135,000
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| | | | | | | | | | | | | | | | | | | |
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Total revenue
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$
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1,114,309
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$
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441,118
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| | | |
$
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2,629,225
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| | | |
$
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713,744
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| | | |
$
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5,863,390
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| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Development expenses | | | | | | | | | | | | | | | | | | | |
Cost of sales
| | | |
362,131
| | | | | |
214,330
| | | | | |
791,125
| | | | | |
360,706
| | | | | |
2,506,597
| |
Research and development
| | | |
1,128,869
| | | | | |
754,000
| | | | | |
2,132,279
| | | | | |
1,338,069
| | | | | |
15,992,557
| |
Marketing
| | | |
345,800
| | | | | |
291,576
| | | | | |
664,006
| | | | | |
424,994
| | | | | |
3,063,155
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General and administrative
| | |
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2,135,732
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| | | |
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2,033,615
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| | | |
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4,368,470
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| | | |
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3,408,821
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| | | |
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27,692,292
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| | | | | | | | | | | | | | | | | | | |
| Total development expenses | | |
|
3,972,532
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| | | |
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3,293,521
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| | | |
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7,955,880
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| | | |
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5,532,590
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| | | |
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49,254,601
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| | | | | | | | | | | | | | | | | | | |
| Loss from development activities | | |
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(2,858,223
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)
| | | |
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(2,852,403
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)
| | | |
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(5,326,655
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)
| | | |
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(4,818,846
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)
| | | |
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(43,391,211
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)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Other income (expense) | | | | | | | | | | | | | | | | | | | |
Settlement with related company
| | | |
-
| | | | | |
-
| | | | | |
-
| | | | | |
-
| | | | | |
(92,613
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Miscellaneous expense
| | | |
(12,040
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)
| | | | |
(256
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)
| | | | |
(11,140
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)
| | | | |
(20,649
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| | | | |
(28,652
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)
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Dividend income
| | | |
-
| | | | | |
350
| | | | | |
-
| | | | | |
25,999
| | | | | |
92,875
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Interest expense
| | | |
-
| | | | | |
(6,805
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)
| | | | |
-
| | | | | |
(14,079
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)
| | | | |
(2,225,074
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Sublease income
| | | |
2,450
| | | | | |
2,125
| | | | | |
4,650
| | | | | |
3,525
| | | | | |
303,083
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Change in market value of warrants
| | |
|
478,669
|
| | | |
|
7,083,365
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| | | |
|
1,349,518
|
| | | |
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(1,347,960
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)
| | | |
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(2,380,664
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)
| | | | | | | | | | | | | | | | | | | |
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Total other income (expense)
| | |
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469,079
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| | | |
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7,078,779
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| | | |
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1,343,028
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| | | |
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(1,353,164
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)
| | | |
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(4,331,045
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)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Income (loss) before income taxes | | | |
(2,389,144
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)
| | | | |
4,226,376
| | | | | |
(3,983,627
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)
| | | | |
(6,172,010
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)
| | | | |
(47,722,256
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)
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Provision for income taxes
| | |
|
-
|
| | | |
|
-
|
| | | |
|
-
|
| | | |
|
-
|
| | | |
|
6,800
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| | | | | | | | | | | | | | | | | | | |
| Net income (loss) | | |
$
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(2,389,144
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)
| | | |
$
|
4,226,376
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| | | |
$
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(3,983,627
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)
| | | |
$
|
(6,172,010
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)
| | | |
$
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(47,729,056
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)
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
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Dividends on preferred stock
| | |
$
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(107,203
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)
| | | |
$
|
-
| | | | |
$
|
(213,231
|
)
| | | |
$
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(1,238,067
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)
| | | |
$
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(7,751,380
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)
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Net income (loss) attributable to common stockholders
| | |
$
|
(2,496,347
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)
| | | |
$
|
4,226,376
|
| | | |
$
|
(4,196,858
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)
| | | |
$
|
(7,410,077
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)
| | | |
$
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(55,480,436
|
)
| | | | | | | | | | | | | | | | | | | |
| Basic earnings per common share | | |
$
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(0.03
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)
| | | |
$
|
0.06
|
| | | |
$
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(0.06
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)
| | | |
$
|
(0.11
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)
| | | | | | | | | | | | | | | | | | | | | | | |
| Diluted earnings per common share | | |
$
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(0.03
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)
| | | |
$
|
0.04
|
| | | |
$
|
(0.06
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)
| | | |
$
|
(0.11
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)
| | | | | | | | | | | | | | | | | | | | | | | |
| Share used in per share calculations: | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding
| | |
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76,340,016
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| | | |
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68,676,504
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| | | |
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75,842,071
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| | | |
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64,789,250
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Weighted average shares outstanding on a Fully Diluted Basis
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76,340,016
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| | | |
|
114,797,830
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| | | |
|
75,842,071
|
| | | |
|
64,789,250
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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(1)
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The Company restated its financial statements for the year ended
December 31, 2010, and the quarter ended March 31, 2011.
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International Stem Cell Corporation Kenneth C. Aldrich, Chairman 760-940-6383 kaldrich@intlstemcell.com Or Ray
Wood, CFO 760-940-6383 rwood@intlstemcell.com |
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