Wednesday, May 16, 2012

International Stem Cell Corp Announces First Quarter 2012 Financial Results and Business Highlights

International Stem Cell Corporation (OTCBB: ISCO) (www.internationalstemcell.com) today announced financial results for the three months ended March 31, 2012.
Three Months ended March 31, 2012
Consolidated net revenues for the three months ended March 31, 2012 were $1.08 million compared to $1.52 million in the corresponding period a year ago. The year-over-year decrease in revenues is due to fewer sales generated from the Lifeline Skin Care (LSC) direct sales channel, partially offset by higher Lifeline Cell Technology (LCT) sales generated from larger distributors. LSC and LCT accounted for 51% and 49% of total revenue in the three months ended March 31, 2012 compared to 75% and 25%, respectively, in the comparable period a year ago.
For the three months ended March 31, 2012, development expenses were $3.80 million, representing a decrease of approximately 5% compared to the corresponding period in 2011. The decrease primarily reflects lower general and administrative expenses resulting from decreased stock-based compensation expense and lower laboratory-related expenses. The decrease was partially offset by higher cost of sales ratio resulting from increased sales concentration of lower margin products, and higher marketing and selling expense related to LSC. The Company continued to invest in its sales and marketing infrastructure, including significant enhancements to the e-commerce platforms, increased advertising and strengthening the sales and customer service organization.
Cash and cash equivalents at March 31, 2012 were $6.01 million compared to $1.34 million at December 31, 2011, reflecting an increase of $4.67 million resulting from two financing transactions including the issuance of shares of Series G preferred stock for $5.00 million and issuance of shares of common stock for a total of $2.08 million in the first quarter of 2012.
Q1 2012 Business Highlights:
The Company continued to focus its research and development efforts on the creation of additional parthenogenetic stem cell lines for therapeutic use and on the advancement of the disease area research programs, particularly pre-clinical in vivo safety and efficacy studies in Parkinson's disease and new methods for high-throughput cell culture and stem cell differentiation.
ISCO's wholly-owned subsidiary Lifeline Skin Care drove sales by expanding acquisition of both retail and trade customers, increasing the average order value and enhancing customer loyalty and retention. New retail customers were attracted by an increased social media presence and national exposure on TV shows such as ABC's "The Talk" and the use of risk-free introductory offers and free sample promotions. In addition, LSC continued to increase the number of strategic marketing partnerships. Although LSC revenue for the quarter was lower than the same period in 2011, the sales were generated from more diversified sources with much greater growth potential and reduced reliance on individual third parties.
Lifeline Cell Technology, ISCO's wholly-owned subsidiary specialized in cells and media research products, grew revenue across all three sales channels including domestic, international and OEM, showing a 39% increase over the same quarter of 2011.
The overall financial position of the company was significantly improved. ISCO increased its liquidity by securing a total $7.03 million of capital through equity financing transactions in the first quarter of 2012.
Dr. Andrey Semechkin, ISCO's CEO and Co-Chairman, commented, "The first quarter of this year has been a challenging one for ISCO. However, with the significant improvement of our balance sheet position resulting from the closing of the financings, coupled with the addition of Dr. Berglund as a new independent director to our Board of Directors, I believe that we have strengthened our foundation on which we can increase our competitiveness. "
About International Stem Cell Corporation
International Stem Cell Corporation is focused on the therapeutic applications of human parthenogenetic stem cells (hpSCs) 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 for hundreds of millions of individuals of differing genders, ages and racial background with minimal immune rejection after transplantation. hpSCs offer 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 (www.lifelinecelltech.com), and stem cell-based skin care products through its subsidiary Lifeline Skin Care (www.lifelineskincare.com). More information is available at www.internationalstemcell.com.
To subscribe to receive ongoing corporate communications, please click on the following link: http://www.b2i.us/irpass.asp?BzID=1468&to=ea&s=0
Safe harbor statement
Statements pertaining to anticipated developments, potential sales growth, new products and distribution channels and other 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 and the management of collaborations, 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 and Subsidiaries
(A Development Stage Company)
Condensed Consolidated Balance Sheets
(in thousands, except share data)










 










 



March 31,
2012



December 31,
2011




(Unaudited)




Assets









Cash and cash equivalents

$ 6,013


$ 1,337
Accounts receivable


257



140
Inventory, net


1,228



1,268
Prepaid expenses and other current assets

  297


  274










 
Total current assets


7,795



3,019
Property and equipment, net


1,356



1,420
Intangible assets, net


1,419



1,282
Deposits and other assets

  16


  16










 
Total assets

$ 10,586


$ 5,737










 
Liabilities, Redeemable Preferred Stock and Stockholders' Equity









Accounts payable

$ 719


$ 777
Accrued liabilities


813



752
Deferred revenue


112



189
Related party payable


64



108
Advances


250



250
Warrants to purchase common stock

  -


  38










 
Total current liabilities

  1,958


  2,114










 
Convertible Redeemable Series G Preferred stock, $0.001 par value 5,000,000 shares and 0 were authorized, issued and outstanding at March 31, 2012 and December 31, 2011, respectively, liquidation preferences of $5,018 and $0 at March 31, 2012 and December 31, 2011, respectively


4,959



-
Commitments and contingencies









Stockholders' Equity









Series D Preferred stock, $0.001 par value 50 shares authorized, 43 issued and outstanding at March 31, 2012 and December 31, 2011


-



-
Series A Preferred stock, $0.001 par value 5,000,000 shares authorized, 0 and 500,000 issued and outstanding at March 31, 2012 and December 31, 2011, respectively, liquidation preferences of $0 and $615 at March 31, 2012 and December 31, 2011, respectively


0



1
Series B Preferred stock, $0.001 par value 5,000,000 shares authorized, 300,000 issued and outstanding at March 31, 2012 and December 31, 2011, liquidation preferences of $372 and $367 at March 31, 2012 and December 31, 2011, respectively


0



0
Series C Preferred stock, $0.001 par value 3,000,000 shares authorized, 2,000,000 issued and outstanding at March 31, 2012 and December 31, 2011, liquidation preferences of $2,420 and $2,387 at March 31, 2012 and December 31, 2011, respectively


2



2
Common stock, $0.001 par value 200,000,000 shares authorized, 87,036,315 and 80,036,315 issued and outstanding at March 31, 2012 and December 31, 2011, respectively


87



80
Additional paid-in capital


68,169



63,995
Deficit accumulated during the development stage

  (64,589 )

  (60,455 )










 
Total stockholders' equity

  3,669


  3,623










 
Total liabilities, redeemable preferred stock and stockholders' equity

$ 10,586


$ 5,737










 










 

     


   


   


















 
International Stem Cell Corporation and Subsidiaries
(A Development Stage Company)
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
















 
















 




Three Months Ended
March 31,



Inception
(August 17,
2001)
through
March 31,
2012





2012


2011




Revenues















Product sales


$ 1,077


$ 1,515


$ 8,708
Royalties and license


  -


  -


  135
















 
Total revenue


$ 1,077


$ 1,515


$ 8,843
















 
Development expenses















Cost of sales



324



429



3,658
Research and development



937



1,004



19,231
Marketing



496



318



4,370
General and administrative


  2,039


  2,233


  33,723
















 
Total development expenses


  3,796


  3,984


  60,982
















 
Loss from development activities


  (2,719 )

  (2,469 )

  (52,139 )
















 
Other income (expense)















Settlement with related company



-



-



(93 )
Miscellaneous income (expense)



1



1



(179 )
Dividend income



-



-



94
Interest expense



-



-



(2,225 )
Sublease income



3



2



312
Change in market value of warrants


  38


  871


  (1,357 )
















 
Total other income (expense), net


  42


  874


  (3,448 )
















 
Loss before income taxes



(2,677 )


(1,595 )


(55,587 )
Provision for income taxes


  -


  -


  7
















 
Net loss


$ (2,677 )

$ (1,595 )

$ (55,594 )
















 
Deemed dividend on preferred stock



(1,375 )


-



(1,375 )
Dividend on preferred stock


  (82 )

  (106 )

  (8,050 )
















 
Net loss applicable to common stockholders


$ (4,134 )

$ (1,701 )

$ (65,019 )
















 
Net loss per common share-basic and diluted


$ (0.05 )

$ (0.02 )

$ n/a
















 
Weighted average shares-basic and diluted


  82,485


  75,326


  n/a
















 

International Stem Cell Corporation
Dr. Andrey Semechkin, Chief Executive Officer
760-940-6383
ir@intlstemcell.com
or
Linh Nguyen, Chief Financial Officer
760-940-6383
lnguyen@intlstemcell.com
or
Investor Relations:
MZ Group
Mark McPartland
Senior Vice President
212-301-7130
markmcp@mzgroup.us
www.mz-ir.com
May 16, 2012

Tuesday, May 15, 2012

International Stem Cell Corporation Scientists to Present Pre-Clinical Research Results at American Society of Gene and Cell Therapy 15th Annual Meeting

International Stem Cell Corporation (OTCBB: ISCO) (www.internationalstemcell.com) today announced that several of its leading scientists will present experimental results from three of ISCO's pre-clinical therapeutic programs.
Firstly, the application of A9 dopaminergic neurons derived from human parthenogenetic stem cells (hpSC) for the treatment of Parkinson's disease. Demonstrating functional dopaminergic neurons in vivo represents an important milestone towards the goal of creating well characterized populations of cells that could be used to develop a treatment for Parkinson's.
Secondly, the differentiation of hpSC and embryonic stem cells into cornea-like constructs for use in transplantation therapy and the in vitro study of ocular drug absorption. There are approximately ten million people worldwide who are blind as a result of damage to their cornea. Generating human corneas from a pluripotent stem cell source should increase the likelihood that people will receive treatment in the future even in the absence of suitable tissue from eye banks.
Lastly, the in vivo and in vitro characterization of immature hepatocyte derived from hpSC. Such cells could be used to develop a treatment for individuals with a liver that has been damaged by disease or sufferers of genetic disorders that inhibit normal liver function. In both cases, implanting healthy hepatocyte cells could treat the underlying disease and prolong the life of the individual.
"These results not only show the progress we have made in these important programs, but also demonstrate the broad application of human parthenogenetic stem cells in the development of treatments for incurable diseases," says Dr. Ruslan Semechkin, Vice President of Research and Development.
The presentations will take place at the 15th Annual Meeting of American Society of Gene and Cell Therapy, in Philadelphia at 3:30 p.m. on Thursday, May 17th.
About International Stem Cell Corporation
International Stem Cell Corporation is focused on the therapeutic applications of human parthenogenetic stem cells (hpSCs) 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 for hundreds of millions of individuals of differing genders, ages and racial background with minimal immune rejection after transplantation. hpSCs offer 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 (www.lifelinecelltech.com), and stem cell-based skin care products through its subsidiary Lifeline Skin Care (www.lifelineskincare.com). More information is available at www.internationalstemcell.com or follow us on Twitter @intlstemcell.
To receive ongoing corporate communications, please click on the following link: http://www.b2i.us/irpass.asp?BzID=1468&to=ea&s=0
Forward-looking Statements
Statements pertaining to anticipated developments, the potential benefits of research programs and products, and other 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, 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
Dr. Simon Craw, Executive Vice President Business Development
760-940-6383
ir@intlstemcell.com
or
Dr. Ruslan Semechkin, Vice President Research and Development
760-940-6383
ras@intlstemcell.com
or
Investor Relations:
MZ Group
Mark McPartland
212-301-7130
markmcp@mzgroup.us
www.mz-ir.com
May 15, 2012

Thursday, May 10, 2012

International Stem Cell Corporation Announces New Stem Cell Manufacturing Technologies to Support its Therapeutic Programs

International Stem Cell Corporation (OTCBB: ISCO) www.internationalstemcell.com today announced that the Company has developed new technologies to commercialize the use of human parthenogenetic stem cells (hpSC) to treat human diseases. The methods announced today are capable of producing populations of stem cells and their therapeutically valuable derivatives not only to a higher level of purity but also at a cost that is approximately several times lower than previously reported techniques.
ISCO's research team has developed a new method to derive high-purity populations of neural stem cells (NSC) from hpSC and further differentiate them into dopaminergic neurons. This method is capable of generating sufficient quantities of neuronal cells for ISCO's pre-clinical and clinical studies and is highly efficient as it requires substantially less time and labor in addition to using fewer costly materials than traditional methods. ISCO's technologies make possible the creation of billions of neuronal cells necessary for conducting such studies from a small batch of stem cells.
ISCO has also announced today that it has developed a new high-throughput cell culture method for growing human parthenogenetic stem cells (hpSC) in large quantities. This new technique is easily scalable and can produce the quantities of cGMP grade hpSC necessary for commercial and therapeutic applications.
"One of the most challenging issues in commercializing stem cell based treatments is creating high-purity populations of stem cell derivatives at a reasonable cost. I believe the new methods we have developed solve this important problem and help position us for future clinical studies," says Dr. Ruslan Semechkin, Vice President, R&D.
About International Stem Cell Corporation
International Stem Cell Corporation is focused on the therapeutic applications of human parthenogenetic stem cells (hpSCs) 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 for hundreds of millions of individuals of differing genders, ages and racial background with minimal immune rejection after transplantation. hpSCs offer 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 stem cell-based skin care products through its subsidiary Lifeline Skin Care (www.lifelineskincare.com). More information is available at www.internationalstemcell.com or follow us on Twitter @intlstemcell.
To receive ongoing corporate communications, please click on the following link: http://www.b2i.us/irpass.asp?BzID=1468&to=ea&s=0.
Forward-looking Statements
Statements pertaining to anticipated developments, the potential benefits of research programs and new manufacturing technologies, and other 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 and technologies 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
Dr. Simon Craw, Executive Vice President of Business Development
760-940-6383
ir@intlstemcell.com
or
Dr. Ruslan Semechkin, Vice President of Research and Development
760-940-6383
ras@intlstemcell.com
or
Investor Relations:
MZ Group
Mark McPartland
212-301-7130
markmcp@mzgroup.us
www.mz-ir.com
May 10, 2012