CARLSBAD, CA--(Marketwired - May 17, 2016) - International Stem Cell Corporation (
"I'm happy to report that while revenues remained flat, profit margin improved. In addition our therapeutic development programs are proceeding according to plan," said Andrey Semechkin, Ph.D., CEO and Co-Chairman of ISCO.
Q1 2016 Financial Highlights
- Consolidated revenue for the first quarter of 2016 was $1.6 million, which remained unchanged compared to the consolidated revenue of $1.6 million for the first quarter of 2015.
- Both of the Company's wholly-owned revenue-generating subsidiaries remain profitable.
- Profit margin for the Company's revenue-generating subsidiaries for the first quarter of 2016 was $1.24 million, or 77%, compared to profit margin of $1.20 million, or 74%, for the first quarter of 2015.
- Consolidated loss from operations for the first quarter of 2016 was $1.2 million, compared to consolidated loss from operations of $2.0 million for the first quarter of 2015.
Recent Corporate Highlights
- Started enrolling patients in Phase I trial of ISC-hpNSC®, human parthenogenetic stem cell-derived neural stem cells for the treatment of moderate to severe Parkinson's disease.
- Raised funds in a private placement financing to fund Phase I clinical study.
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.
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Safe harbor statement
Statements pertaining to anticipated developments, expected clinical studies (including timing and results), progress of research and development, 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 and Subsidiaries | ||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||
| (in thousands, except share data) | ||||||||||
| March 31, | December 31, | |||||||||
| 2016 | 2015 | |||||||||
| Assets | (Unaudited) | |||||||||
| Cash and cash equivalents | $ | 1,542 | $ | 532 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of $12 and $20 at March 31, 2016 and December 31, 2015, respectively | 461 | 539 | ||||||||
| Inventory, net | 1,434 | 1,348 | ||||||||
| Prepaid expenses and other current assets | 696 | 572 | ||||||||
| Total current assets | 4,133 | 2,991 | ||||||||
| Property and equipment, net | 379 | 375 | ||||||||
| Intangible assets, net | 3,344 | 3,223 | ||||||||
| Non-current inventory | 469 | 489 | ||||||||
| Deposits and other assets | 63 | 60 | ||||||||
| Total assets | $ | 8,388 | $ | 7,138 | ||||||
| Liabilities and Stockholders' Equity (Deficit) | ||||||||||
| Accounts payable | $ | 602 | $ | 1,092 | ||||||
| Accrued liabilities | 756 | 834 | ||||||||
| Related party payable | 16 | 3,129 | ||||||||
| Advances | 250 | 250 | ||||||||
| Fair value of warrant liability | 19,616 | 239 | ||||||||
| Total current liabilities | 21,240 | 5,544 | ||||||||
| Commitments and contingencies | ||||||||||
| Stockholders' Equity (Deficit) | ||||||||||
| Series B Convertible Preferred stock, $0.001 par value, 5,000,000 shares authorized, 250,000 issued and outstanding, with liquidation preferences of $370 and $366 at March 31, 2016 and December 31, 2015, respectively | - | - | ||||||||
| Series D Convertible Preferred stock, $0.001 par value, 50 shares authorized, 43 shares issued and outstanding, with liquidation preference of $4,320 | - | - | ||||||||
| Series G Convertible Preferred stock, $0.001 par value, 5,000,000 shares authorized, issued and outstanding, with liquidation preference of $5,000 | 5 | 5 | ||||||||
| Series I-1 Convertible Preferred stock, $0.001 par value, 2,000 and 0 shares authorized at March 31, 2016 and December 31, 2015, respectively, 2,000 and 0 issued and outstanding at March 31, 2016 and December 31, 2015, respectively, with liquidation preferences of $2,000 and $0 at March 31, 2016 and December 31, 2015, respectively | - | - | ||||||||
| Series I-2 Convertible Preferred stock, $0.001 par value, 4,310 and 0 shares authorized at March 31, 2016 and December 31, 2015, respectively, 4,310 and 0 issued and outstanding at March 31, 2016 and December 31, 2015, respectively, with liquidation preferences of $4,310 and $0 at March 31, 2016 and December 31, 2015, respectively | - | - | ||||||||
| Common stock, $0.001 par value, 720,000,000 shares authorized, 2,814,910 and 2,808,598 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively | 3 | 3 | ||||||||
| Additional paid-in capital | 99,097 | 98,970 | ||||||||
| Accumulated deficit | (111,957 | ) | (97,384 | ) | ||||||
| Total stockholders' equity (deficit) | (12,852 | ) | 1,594 | |||||||
| Total liabilities and stockholders' equity (deficit) | $ | 8,388 | $ | 7,138 | ||||||
| See accompanying notes to the unaudited condensed consolidated financial statements. |
| International Stem Cell Corporation and Subsidiaries | ||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||
| (in thousands, except per share data) | ||||||||||
| (Unaudited) | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2016 | 2015 | |||||||||
| Revenues | ||||||||||
| Product sales | $ | 1,616 | $ | 1,622 | ||||||
| Total revenue | 1,616 | 1,622 | ||||||||
| Expenses | ||||||||||
| Cost of sales | 377 | 418 | ||||||||
| Research and development | 579 | 1,118 | ||||||||
| Selling and marketing | 648 | 654 | ||||||||
| General and administrative | 1,179 | 1,398 | ||||||||
| Total expenses | 2,783 | 3,588 | ||||||||
| Loss from operating activities | (1,167 | ) | (1,966 | ) | ||||||
| Other income (expense) | ||||||||||
| Change in fair value of warrant liability | (2,630 | ) | 679 | |||||||
| Fair value of warrant liability in excess of proceeds | (9,902 | ) | - | |||||||
| Financing transaction costs | (869 | ) | - | |||||||
| Interest expense | (5 | ) | (1 | ) | ||||||
| Sublease income | - | 1 | ||||||||
| Total other income (expense), net | (13,406 | ) | 679 | |||||||
| Loss before income taxes | (14,573 | ) | (1,287 | ) | ||||||
| Provision for income taxes | - | - | ||||||||
| Net loss | $ | (14,573 | ) | $ | (1,287 | ) | ||||
| Net loss applicable to common stockholders | $ | (14,573 | ) | $ | (1,287 | ) | ||||
| Net loss per common share-basic (1) | $ | (5.19 | ) | $ | (0.79 | ) | ||||
| Net loss per common share-diluted (1) | $ | (5.19 | ) | $ | (1.07 | ) | ||||
| Weighted average shares-basic (1) | 2,809 | 1,637 | ||||||||
| Weighted average shares-diluted (1) | 2,809 | 1,830 | ||||||||
| (1) | See Note 1, "Reverse Stock Split" | |
| See accompanying notes to the unaudited condensed consolidated financial statements. |
Contact Information:
Contacts:
International Stem Cell Corporation
Russell Kern, PhD
Executive Vice President
Phone: 760-940-6383
Email: ir@intlstemcell.com
Media:
Alex Fudukidis
Phone: (646) 942-5632
Email: alex.fudukidis@russopartnersllc.com
Tony Russo, Ph.D.
Phone: (212) 845-4251
Email: tony.russo@russopartnersllc.com