CARLSBAD, Calif., Aug. 16, 2016 (GLOBE NEWSWIRE) -- 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 provided a business update and announced operating results for the three and six months ended June 30, 2016.
“We are pleased with the progress of the Company in the second quarter. We continue to generate revenue to finance our research and development activities on the therapeutics side of our business. We are particularly proud to have moved our Parkinson’s Disease program into a Phase I clinical trial in Australia, an important milestone in the Company’s development. We are looking forward to reporting on our progress to you in that as well as other programs that the Company is working on,” said Andrey Semechkin, Ph.D., CEO and Co-Chairman of ISCO.
Second Quarter 2016 Financial Highlights
- Consolidated revenue for the second quarter of 2016 was 1.9 million, reflecting an increase of 6% compared to the consolidated revenue of $1.8 million for the second quarter of 2015.
- Gross profit margin for the Company’s revenue-generating subsidiaries for the second quarter of 2016 was $1.4 million, or 74%, compared to gross profit margin of $1.3 million, or 72%, for the second quarter of 2015.
- Consolidated loss from operations for the second quarter of 2016 was $1.2 million, compared to consolidated loss from operations of $937,000 for the second quarter of 2015.
Year-to-Date Financial Highlights
- Consolidated revenue for the six months ended June 30, 2016 was 3.5 million, reflecting an increase of 3% compared to the consolidated revenue of $3.4 million for the six months ended June 30, 2015.
- Gross profit margin for the Company’s revenue-generating subsidiaries for the six months ended June 30, 2016 was $2.6 million, or 75%, compared to gross profit margin of $2.5 million, or 73%, for the six months ended June 30, 2015.
- Consolidated loss from operations for the six months ended June 30, of 2016 was $2.4 million, compared to consolidated loss from operations of $2.9 million for the six months ended June 30, 2015.
Recent Corporate Highlights
- The first patient in the Company’s Phase I clinical trial has undergone a successful intracranial transplant of ISC-hpNSC as a treatment under investigation for Parkinson’s Disease (PD). The operation took place at the Royal Melbourne Hospital in Australia.
- Published the results of a 12-month preclinical non-human primate study. The data demonstrates the safety and efficacy of the Company’s proprietary ISC-hpNSC.
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) | ||||||||
| June 30, | December 31, | |||||||
| 2016 | 2015 | |||||||
| Assets | (Unaudited) | |||||||
| Cash and cash equivalents | $ | 768 | $ | 532 | ||||
| Accounts receivable, net of allowance for doubtful accounts of $12 and $20 at June 30, 2016 and December 31, 2015, respectively | 518 | 539 | ||||||
| Inventory, net | 1,368 | 1,348 | ||||||
| Prepaid expenses and other current assets | 666 | 572 | ||||||
| Total current assets | 3,320 | 2,991 | ||||||
| Property and equipment, net | 431 | 375 | ||||||
| Intangible assets, net | 3,520 | 3,223 | ||||||
| Non-current inventory | 532 | 489 | ||||||
| Deposits and other assets | 58 | 60 | ||||||
| Total assets | $ | 7,861 | $ | 7,138 | ||||
| Liabilities and Stockholders' Equity (Deficit) | ||||||||
| Accounts payable | $ | 743 | $ | 1,092 | ||||
| Accrued liabilities | 681 | 834 | ||||||
| Related party payable | 21 | 3,129 | ||||||
| Advances | 250 | 250 | ||||||
| Fair value of warrant liability | 7,148 | 239 | ||||||
| Total current liabilities | 8,843 | 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 $374 and $366 at June 30, 2016 and December 31, 2015, respectively | — | — | ||||||
| Series D Convertible Preferred stock, $0.001 par value, 50 shares authorized, 43 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 June 30, 2016 and December 31, 2015, respectively, 1,820 and 0 issued and outstanding at June 30, 2016 and December 31, 2015, respectively, with liquidation preferences of $1,820 and $0 at June 30, 2016 and December 31, 2015, respectively | — | — | ||||||
| Series I-2 Convertible Preferred stock, $0.001 par value, 4,310 and 0 shares authorized at June 30, 2016 and December 31, 2015, respectively, 4,310 and 0 issued and outstanding at June 30, 2016 and December 31, 2015, respectively, with liquidation preferences of $4,310 and $0 at June 30, 2016 and December 31, 2015, respectively | — | — | ||||||
| Common stock, $0.001 par value, 120,000,000 and 720,000,000 shares authorized at June 30, 2016 and December 31, 2015, respectively, 3,191,236 and 2,808,598 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively | 3 | 3 | ||||||
| Additional paid-in capital | 100,048 | 98,970 | ||||||
| Accumulated deficit | (101,038 | ) | (97,384 | ) | ||||
| Total stockholders' equity (deficit) | (982 | ) | 1,594 | |||||
| Total liabilities and stockholders' equity (deficit) | $ | 7,861 | $ | 7,138 | ||||
| International Stem Cell Corporation and Subsidiaries | |||||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||||
| (in thousands, except per share data) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||
| Revenues | |||||||||||||||
| Product sales | $ | 1,916 | $ | 1,815 | $ | 3,532 | $ | 3,437 | |||||||
| Total revenue | 1,916 | 1,815 | 3,532 | 3,437 | |||||||||||
| Expenses | |||||||||||||||
| Cost of sales | 506 | 516 | 883 | 934 | |||||||||||
| Research and development | 852 | 567 | 1,431 | 1,685 | |||||||||||
| Selling and marketing | 651 | 602 | 1,299 | 1,256 | |||||||||||
| General and administrative | 1,156 | 1,067 | 2,335 | 2,465 | |||||||||||
| Total expenses | 3,165 | 2,752 | 5,948 | 6,340 | |||||||||||
| Loss from operating activities | (1,249 | ) | (937 | ) | (2,416 | ) | (2,903 | ) | |||||||
| Other income (expense) | |||||||||||||||
| Change in fair value of warrant liability | 12,227 | 1,702 | 9,597 | 2,381 | |||||||||||
| Fair value of warrant liability in excess of proceeds | — | — | (9,902 | ) | — | ||||||||||
| Financing transaction costs | (59 | ) | — | (928 | ) | — | |||||||||
| Interest expense | (1 | ) | (2 | ) | (6 | ) | (3 | ) | |||||||
| Warrant modification expense | — | (40 | ) | — | (40 | ) | |||||||||
| Sublease income | — | — | — | 1 | |||||||||||
| Miscellaneous income | 1 | — | 1 | — | |||||||||||
| Total other income (expense), net | 12,168 | 1,660 | (1,238 | ) | 2,339 | ||||||||||
| Income (loss) before income taxes | 10,919 | 723 | (3,654 | ) | (564 | ) | |||||||||
| Provision for income taxes | — | — | — | — | |||||||||||
| Net income (loss) | $ | 10,919 | $ | 723 | $ | (3,654 | ) | $ | (564 | ) | |||||
| Net income (loss) applicable to common stockholders | $ | 10,919 | $ | 723 | $ | (3,654 | ) | $ | (564 | ) | |||||
| Net income (loss) per common share-basic | $ | 3.76 | $ | 0.40 | $ | (1.28 | ) | $ | (0.33 | ) | |||||
| Net income (loss) per common share-diluted | $ | 0.26 | $ | (0.52 | ) | $ | (1.28 | ) | $ | (1.61 | ) | ||||
| Weighted average shares-basic | 2,903 | 1,800 | 2,856 | 1,719 | |||||||||||
| Weighted average shares-diluted | 5,742 | 1,881 | 2,856 | 1,829 | |||||||||||
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
