Will host conference call at 11 am ET
on August 9, 2013
CARLSBAD, CA - (Marketwired) - August 8, 2013, International
Stem Cell Corporation (OTCQB: ISCO) (www.internationalstemcell.com)
(“ISCO” or “the Company”), a California-based biotechnology company developing
novel stem cell based therapies and biomedical products, today announced
financial results for the three and six months ended June 30, 2013.
Q2 2013 Highlights:
·
Revenues increased 38% to $1.46 million over
the second quarter of 2012, with Lifeline Cell Technologies sales up 40% and
Lifeline Skin Care sales up 36%. Gross
margin improved by 600 basis points to 77%
·
Cash burn, excluding capital expenditures
and patent costs, for the first six months of 2013 reduced by 16% compared to
the same period of 2012
·
In preparation for the IND-enabling studies
and after discussion with the FDA office of Cellular, Tissue and Gene Therapies,
ISCO’s R&D team commenced large scale manufacturing of its neural stem cell
product using the previously disclosed methodology
·
Results demonstrating the safety of its novel
cellular replacement and neuroprotective therapy in a primate model of
Parkinson’s disease (PD) were presented at the American Society of Gene &
Cell Therapy meeting in Salt Lake City, UT and the International Society of
Stem Cell Research in Boston, MA
·
Lifeline Skin Care further expanded into the
Asian skin care market by signing distribution agreements to sell its branded
anti-aging skin care products in Thailand and Vietnam.
“We continue to focus our research and development
efforts on our Parkinson’s disease program. We made further progress in demonstrating
the safety of our novel approach of using neural stem cells derived from our
histocompatible stem cells to provide neuroprotective benefits and replace
dying neurons, moving the program closer to the clinic,” stated Dr. Andrey
Semechkin, ISCO’s CEO and Co-chairman.
“I am also pleased to report significant growth in sales
from both subsidiaries, demonstrating that our sales and marketing strategies
are working. This growth resulted in a considerable
reduction in our net cash burn rate,” Dr. Semechkin concluded.
Three Months Ended June 30,
2013
Revenue
for the three months ended June 30, 2013 was $1.46 million, an increase of
approximately 38% compared to $1.06 million for the same period in 2012. Sales for Lifeline Skin
Care (LSC) and Lifeline Cell Technology (LCT) increased by 36% and 40%,
respectively. LSC and LCT accounted for 49% and 51% of total revenue,
respectively, in the three months ended June 30, 2013.
Cost
of sales was $0.33 million, or 23% of revenue, compared to $0.31 million or 29%
of revenue in the same period a year ago. Gross margins improved as a result of
efficiencies in the manufacturing and supply chain management and increased
sales contribution from higher margin products.
General
and administrative expenses declined 5% to $1.67 million, driven primarily by
lower personnel-related expenses resulting from lower headcount, lower
stock-based compensation expenses and lower professional and corporate expenses.
Marketing expenses increased 24% compared to the second quarter of 2012 to
$0.68 million, reflecting higher spending on advertising and promotions for its
skin care business.
Six Months Ended June 30,
2013
Revenue
for the six months ended June 30, 2013 and 2012 was $2.74 million and $2.13
million, respectively. LCT contributed $1.38 million, up 30% from the same
period in 2012 and LSC contributed $1.36 million, up 27% from the same period
in 2012.
Cost
of sales for the six months ended June 30, 2013 was $0.66 million or 24% of
revenue, compared to $0.64 million or 30% of revenue for the same period in
2012 as a result of continued improvements in efficiency and effectiveness in
manufacturing and the management of supply chain in Lifeline Skin Care as well
as a shift in sales mix from lower to higher margin products in Lifeline Cell
Technology. Gross profit and gross
margin for the first six months of 2013 were $2.08 million and 76% compared to
$1.50 million and 70%, respectively, in 2012.
Cash
and cash equivalents totaled $0.65 million at June 30, 2013, essentially
unchanged from $0.65 million as of December 31, 2012. Cash outflows from
operations for the first six months of 2013 were $2.89 million, down from $3.46
million in the corresponding period in 2012. The Company received approximately
$3.27 million, net of stock issuance costs, from the issuance of 16,325,000
shares of common stock in the first six months of 2013. The Company invested
approximately $0.37 million in capital and patent expenditures in the first six
months of 2013 compared to $0.45 million in the same period in 2012.
As
previously announced, subsequent to the end of the second quarter of 2013, the
Company completed a financing transaction under an effective Form S-1
Registration Statement filed with the U.S. Securities and Exchange Commission
raising approximately $2.50 million in net proceeds.
Conference Call and
Webcast Details:
Date: Friday,
August 9, 2013
Time: 11:00
a.m. Eastern Time
Conference
Call Dial-in Numbers
Participants
from US Domestic: 1
877 317-6776
Participants
from International: 1
412 317-6776
Conference
ID: 10032411
Webcast
link: http://webcast.mzvaluemonitor.com/Cover.aspx?PlatformId=1545
Replay
of the conference call will be available for one week following 1 hour after
the end of the conference call through August 16, 2013 at 11:00 am ET.
Teleconference
Replay Details:
US
Domestic: 1-877-344-7529
International: 1-412-317-0088
Conference
ID: 10032411
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
parthenogenetic, 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
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To like our Facebook page or follow us on Twitter for
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and www.twitter.com/intlstemcell
Safe
harbor statement
Statements pertaining to anticipated developments,
expected changes in R&D expenses, progress of research and development, 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)
(Unaudited)
|
|
|
|
|
|
June 30, |
December 31, |
|
Assets |
|
|
|
Cash and cash
equivalents............................................................................................................................. |
$ 654 |
$ 654 |
|
Accounts receivable, net of allowance for doubtful
accounts of $26 and $4 at June 30, 2013 and December 31, 2012,
respectively............................................................................................................. |
454 |
273 |
|
Inventory, net.................................................................................................................................................... |
1,370 |
1,199 |
|
Prepaid expenses and other current assets................................................................................................... |
663 |
456 |
|
Restricted cash.................................................................................................................................................. |
50 |
— |
|
|
|
|
|
Total current assets................................................................................................................................ |
3,191 |
2,582 |
|
Property and equipment, net.......................................................................................................................... |
928 |
1,134 |
|
Intangible assets, net........................................................................................................................................ |
1,947 |
1,634 |
|
Deposits and other assets................................................................................................................................ |
32 |
20 |
|
|
|
|
|
Total assets............................................................................................................................................. |
$ 6,098 |
$ 5,370 |
|
|
|
|
|
Liabilities, Redeemable Preferred Stock and
Stockholders’ Equity (Deficit) |
|
|
|
Accounts payable............................................................................................................................................. |
$ 743 |
$ 969 |
|
Accrued liabilities.............................................................................................................................................. |
1,389 |
730 |
|
Deferred revenue.............................................................................................................................................. |
172 |
233 |
|
Related party payable..................................................................................................................................... |
22 |
5 |
|
Advances........................................................................................................................................................... |
250 |
250 |
|
|
|
|
|
Total current liabilities........................................................................................................................... |
2,576 |
2,187 |
|
|
|
|
|
Convertible Redeemable Series G Preferred stock,
$0.001 par value, 5,000,000 shares were authorized, issued and outstanding at
June 30, 2013 and December 31, 2012, liquidation preferences of $5,000
at June 30, 2013 and December 31, 2012........................................................................................................ |
4,941 |
4,941 |
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
Stockholders’ Equity (Deficit) |
|
|
|
Series D Preferred stock, $0.001 par value, 50
shares authorized, 43 issued and outstanding at June 30, 2013 and
December 31, 2012, liquidation preferences of $4,320 at June 30,
2013 and December 31, 2012............................................................................................................................................... |
— |
— |
|
Series B Preferred stock, $0.001 par value,
5,000,000 shares authorized, 300,000 issued and outstanding at June 30, 2013
and December 31, 2012, liquidation preferences of $393 and $385 at June
30, 2013 and December 31, 2012, respectively...................................................................................... |
— |
— |
|
Series C Preferred stock, $0.001 par value,
3,000,000 shares authorized, 0 and 2,000,000 issued and outstanding at June
30, 2013 and December 31, 2012, respectively, liquidation preferences of
$0 and $2,507 at June 30, 2013 and December 31, 2012, respectively........................................................... |
— |
2 |
|
Common stock, $0.001 par value, 300,000,000 shares
authorized, 112,590,815 and 87,388,815 issued and outstanding at June 30,
2013 and December 31, 2012, respectively................................................... |
113 |
87 |
|
Additional paid-in capital.......................................................................................................................................... |
74,173 |
69,945 |
|
Deficit accumulated during the development stage................................................................................... |
(75,705 ) |
(71,792 ) |
|
|
|
|
|
Total stockholders’ equity (deficit)............................................................................................................... |
(1,419 ) |
(1,758 ) |
|
|
|
|
|
Total liabilities, redeemable preferred stock and
stockholders’ equity (deficit).................................... |
$ 6,098 |
$ 5,370 |
|
|
|
|
International Stem Cell Corporation
and Subsidiaries
(A
Development Stage Company)
Condensed
Consolidated Statements of Operations
(in
thousands, except share and per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended |
Six Months Ended |
Inception |
||
|
|
2013 |
2012 |
2013 |
2012 |
2013 |
|
Revenues |
|
|
|
|
|
|
Product sales |
$ 1,457 |
$ 1,056 |
$ 2,742 |
$ 2,133 |
$ 14,940 |
|
Royalties and license |
— |
— |
— |
— |
135 |
|
|
|
|
|
|
|
|
Total revenue |
1,457 |
1,056 |
2,742 |
2,133 |
15,075 |
|
|
|
|
|
|
|
|
Development expenses |
|
|
|
|
|
|
Cost of sales |
329 |
313 |
663 |
637 |
5,269 |
|
Research and development |
974 |
865 |
1,695 |
1,802 |
23,588 |
|
Marketing |
679 |
548 |
1,191 |
1,044 |
7,130 |
|
General and administrative |
1,667 |
1,755 |
3,099 |
3,794 |
42,227 |
|
|
|
|
|
|
|
|
Total development expenses |
3,649 |
3,481 |
6,648 |
7,277 |
78,214 |
|
|
|
|
|
|
|
|
Loss from development activities |
(2,192 ) |
(2,425 ) |
(3,906 ) |
(5,144 ) |
(63,139 ) |
|
|
|
|
|
|
|
|
Other income (expense) |
|
|
|
|
|
|
Settlement with related company |
— |
— |
— |
— |
(93 ) |
|
Miscellaneous expense |
(18 ) |
(56 ) |
(20 ) |
(54 ) |
(265 ) |
|
Dividend income |
— |
— |
— |
— |
94 |
|
Interest expense |
— |
— |
— |
— |
(2,225 ) |
|
Sublease income |
10 |
4 |
13 |
7 |
329 |
|
Change in market value of warrants |
— |
— |
— |
38 |
(1,357 ) |
|
|
|
|
|
|
|
|
Total other income (expense), net |
(8 ) |
(52 ) |
(7) |
(9 ) |
(3,517 ) |
|
|
|
|
|
|
|
|
Loss before income taxes |
(2,200 ) |
(2,477 ) |
(3,913 ) |
(5,153 ) |
(66,656 ) |
|
Provision for income taxes |
— |
— |
— |
— |
7 |
|
|
|
|
|
|
|
|
Net loss |
$ (2,200 ) |
$ (2,477 ) |
$ (3,913 ) |
$ (5,153 ) |
$ (66,663 ) |
|
|
|
|
|
|
|
|
Deemed dividend on preferred stock |
— |
— |
— |
(1,375 ) |
(1,375 ) |
|
Dividends on preferred stock |
— |
(139 ) |
— |
(222 ) |
(8,097 ) |
|
|
|
|
|
|
|
|
Net loss attributable to common stockholders |
$ (2,200 ) |
$ (2,616 ) |
$ (3,913 ) |
$ (6,750 ) |
$ (76,135 ) |
|
|
|
|
|
|
|
|
Net loss per common share-basic and diluted |
$ (0.02 ) |
$ (0.03 ) |
$ (0.04 ) |
$ (0.08 ) |
|
|
|
|
|
|
|
|
|
Weighted average shares-basic and diluted |
112,410 |
87,106 |
108,013 |
84,446 |
|
|
|
|
|
|
|
|
Contacts:
International
Stem Cell Corporation
Dr.
Simon Craw, Executive Vice President of Business Development
Phone:
760-940-6383
Email:
ir@intlstemcell.com
Investor
Relations:
MZ
Group
Mark
McPartland
Senior
Vice President
Phone:
212-301-7130
Email:
markmcp@mzgroup.us
Web:
www.mzgroup.us
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