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 | | | | $ | 3,581,933 | | | | | | | $ | 5,782,027 | | Accounts receivable | | | | | 341,666 | | | | | | | | 738,506 | | Inventory | | | | | 1,329,433 | | | | | | | | 856,083 | | Prepaid expenses and other current assets | | | | | 290,196 | | | | | | | | 228,338 | | | | | | | | | | | | | Total current assets | | | | | 5,543,228 | | | | | | | | 7,604,954 | | Property and equipment, net | | | | | 1,495,916 | | | | | | | | 1,295,328 | | Patent licenses, net | | | | | 1,056,562 | | | | | | | | 986,714 | | Deposits and other assets | | | | | 16,279 | | | | | | | | 39,812 | | | | | | | | | | | | | Total assets | | | | $ | 8,111,985 | | | | | | | $ | 9,926,808 | | | | | | | | | | | | | Liabilities and Stockholders' Equity | | | | | | | | | | | Accounts payable | | | | $ | 1,032,531 | | | | | | | $ | 582,824 | | Accrued expenses | | | | | 855,315 | | | | | | | | 545,781 | | Deferred revenue | | | | | 137,834 | | | | | | | | 759,667 | | Advances | | | | | 250,000 | | | | | | | | 250,000 | | Warrants to purchase common stock | | | | | 1,027,171 | | | | | | | | 2,399,605 | | | | | | | | | | | | | Total current liabilities | | | | | 3,302,851 | | | | | | | | 4,537,877 | | | | | | | | | | | | | | | | | | | | | | | | Commitments and contingencies | | | | | | | | | | | | | | | | | | | | | | Stockholders' Equity | | | | | | | | | | | 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 | | | | | | | | 74,771 | | 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 | | Subscription receivable on common stock | | | | | - | | | | | | | | (4,875 | ) | Additional paid-in capital | | | | | 59,780,363 | | | | | | | | 56,170,006 | | Deficit accumulated during the development stage | | | | | (55,050,629 | ) | | | | | | | (50,853,771 | ) | | | | | | | | | | | | Total stockholders' equity | | | | | 4,809,134 | | | | | | | | 5,388,931 | | | | | | | | | | | | | Total liabilities and stockholders' equity | | | | $ | 8,111,985 | | | | | | | $ | 9,926,808 | | | | | | | | | | | | |
| | | (1) | | | The Company restated its financial statements for the year ended December 31, 2010, and the quarter ended March 31, 2011. | | | | | | | | | | | | | | |
| | | | | | | | | | | | 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 | | | | 2010 (Restated)(1) | | | | 2011 (Restated)(1) | | | | 2010 (Restated)(1) | | | | Revenues | | | | | | | | | | | | | | | | | | | | Product sales | | | $ | 1,114,309 | | | | | $ | 441,118 | | | | | $ | 2,629,225 | | | | | $ | 713,744 | | | | | $ | 5,728,390 | | Royalties and license | | | | - | | | | | | - | | | | | | - | | | | | | - | | | | | | 135,000 | | | | | | | | | | | | | | | | | | | | | | Total revenue | | | $ | 1,114,309 | | | | | $ | 441,118 | | | | | $ | 2,629,225 | | | | | $ | 713,744 | | | | | $ | 5,863,390 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 | | General and administrative | | | | 2,135,732 | | | | | | 2,033,615 | | | | | | 4,368,470 | | | | | | 3,408,821 | | | | | | 27,692,292 | | | | | | | | | | | | | | | | | | | | | | Total development expenses | | | | 3,972,532 | | | | | | 3,293,521 | | | | | | 7,955,880 | | | | | | 5,532,590 | | | | | | 49,254,601 | | | | | | | | | | | | | | | | | | | | | | Loss from development activities | | | | (2,858,223 | ) | | | | | (2,852,403 | ) | | | | | (5,326,655 | ) | | | | | (4,818,846 | ) | | | | | (43,391,211 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Other income (expense) | | | | | | | | | | | | | | | | | | | | Settlement with related company | | | | - | | | | | | - | | | | | | - | | | | | | - | | | | | | (92,613 | ) | Miscellaneous expense | | | | (12,040 | ) | | | | | (256 | ) | | | | | (11,140 | ) | | | | | (20,649 | ) | | | | | (28,652 | ) | Dividend income | | | | - | | | | | | 350 | | | | | | - | | | | | | 25,999 | | | | | | 92,875 | | Interest expense | | | | - | | | | | | (6,805 | ) | | | | | - | | | | | | (14,079 | ) | | | | | (2,225,074 | ) | Sublease income | | | | 2,450 | | | | | | 2,125 | | | | | | 4,650 | | | | | | 3,525 | | | | | | 303,083 | | Change in market value of warrants | | | | 478,669 | | | | | | 7,083,365 | | | | | | 1,349,518 | | | | | | (1,347,960 | ) | | | | | (2,380,664 | ) | | | | | | | | | | | | | | | | | | | | | Total other income (expense) | | | | 469,079 | | | | | | 7,078,779 | | | | | | 1,343,028 | | | | | | (1,353,164 | ) | | | | | (4,331,045 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Income (loss) before income taxes | | | | (2,389,144 | ) | | | | | 4,226,376 | | | | | | (3,983,627 | ) | | | | | (6,172,010 | ) | | | | | (47,722,256 | ) | Provision for income taxes | | | | - | | | | | | - | | | | | | - | | | | | | - | | | | | | 6,800 | | | | | | | | | | | | | | | | | | | | | | Net income (loss) | | | $ | (2,389,144 | ) | | | | $ | 4,226,376 | | | | | $ | (3,983,627 | ) | | | | $ | (6,172,010 | ) | | | | $ | (47,729,056 | ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Dividends on preferred stock | | | $ | (107,203 | ) | | | | $ | - | | | | | $ | (213,231 | ) | | | | $ | (1,238,067 | ) | | | | $ | (7,751,380 | ) | Net income (loss) attributable to common stockholders | | | $ | (2,496,347 | ) | | | | $ | 4,226,376 | | | | | $ | (4,196,858 | ) | | | | $ | (7,410,077 | ) | | | | $ | (55,480,436 | ) | | | | | | | | | | | | | | | | | | | | | Basic earnings per common share | | | $ | (0.03 | ) | | | | $ | 0.06 | | | | | $ | (0.06 | ) | | | | $ | (0.11 | ) | | | | | | | | | | | | | | | | | | | | | | | | | Diluted earnings per common share | | | $ | (0.03 | ) | | | | $ | 0.04 | | | | | $ | (0.06 | ) | | | | $ | (0.11 | ) | | | | | | | | | | | | | | | | | | | | | | | | | Share used in per share calculations: | | | | | | | | | | | | | | | | | | | | Weighted average shares outstanding | | | | 76,340,016 | | | | | | 68,676,504 | | | | | | 75,842,071 | | | | | | 64,789,250 | | | | | | | | | | | | | | | | | | | | | | | | | | Weighted average shares outstanding on a Fully Diluted Basis | | | | 76,340,016 | | | | | | 114,797,830 | | | | | | 75,842,071 | | | | | | 64,789,250 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (1) | | | The Company restated its financial statements for the year ended December 31, 2010, and the quarter ended March 31, 2011. |
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