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International Stem Cell Corporation Announces Financial Results for the Three and Nine-Months ended September 30, 2019

CARLSBAD, CA / ACCESSWIRE / November 15, 2019 / International Stem Cell Corporation (ISCO) (www.internationalstemcell.com) ("ISCO" or "the Company"), a California-based clinical stage biotechnology company developing novel stem cell-based therapies and biomedical products, today announced operating results for the three and nine months ended September 30, 2019.

"As we mentioned before we completed the enrollment of the Phase I Parkinson's disease clinical trial and currently involved in reorganizing our revenue-generating subsidiaries. We expect that we will see positive results of this reorganization next year." - commented Andrey Semechkin, PhD., CEO and Co-Chairman of ISCO.

Year-to-Date Financial Highlights

  • Consolidated revenue for the nine months ended September 30, 2019 was $6.6 million, compared to the consolidated revenue of $8.9 million for the nine months ended September 30, 2018.
  • Revenue decrease of $2.23 million or 25% was due primarily to an anticipated decrease in LCT Contract Manufacturing activities related to the correction of product shortages that existed in 2018.
  • Research & Development (R&D) expenses, including from Parkinson's disease clinical trial expenses, for the nine months ended September 30, 2019 was $1 million, compared to $1.9 million for the same period in 2018.
  • Average net cash used in operating activities, excluding capital expenditures and patent costs, was approximately $95,000 per month during the nine months ended September 30, 2019, a decrease of 24%, compared to $124,000 per month for the same period in 2018

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 results of clinical studies, 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 and par value)
(Unaudited)

September 30, December 31,
2019 2018
Assets
Cash
$ 463 $ 1,075
Accounts receivable, net
1,080 651
Inventory, net
1,409 1,501
Prepaid expenses and other current assets
307 543
Total current assets
3,259 3,770
Non-current inventory
745 805
Property and equipment, net
691 469
Intangible assets, net
2,691 2,674
Right-of-use assets
784 -
Deposits and other assets
90 78
Total assets
$ 8,260 $ 7,796
Liabilities, Redeemable Convertible Preferred Stock, and Stockholders' Equity (Deficit)
Accounts payable
$ 722 $ 458
Accrued liabilities
651 579
Operating lease liabilities, current
236 -
Related party payable
1,848 2,045
Advances
250 250
Warrant liability
- 1,745
Total current liabilities
3,707 5,077
Long-term deferred rent
- 182
Operating lease liabilities, net of current portion
929 -
Total liabilities
4,636 5,259
Commitments and Contingencies
Series D Redeemable Convertible Preferred stock, $0.001 par value, 50 shares authorized, 43 issued and
outstanding, with liquidation preference of $4,300 at September 30, 2019
4,300 -
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 $423 and $411 at September 30, 2019 and
December 31, 2018
- -
Series D Convertible Preferred stock, $0.001 par value, 50 shares authorized, 43 issued and
outstanding, with liquidation preference of $4,300 at December 31, 2018
- -
Series G Convertible Preferred stock, $0.001 par value, 5,000,000 shares authorized, issued and
outstanding, with liquidation preference of $5,000 at September 30, 2019 and December 31, 2018
5 5
Series I-1 Convertible Preferred stock, $0.001 par value, 2,000 shares authorized, 814 issued and
outstanding, with liquidation preferences of $814 at September 30, 2019 and December 31, 2018
- -
Series I-2 Convertible Preferred stock, $0.001 par value, 4,310 shares authorized,
issued and outstanding with liquidation preference of $4,310 at September 30, 2019 and December 31, 2018
- -
Common stock, $0.001 par value, 120,000,000 shares authorized, 7,533,083 and 6,933,861 shares
issued and outstanding at September 30, 2019 and December 31, 2018
8 7
Additional paid-in capital
102,988 109,188
Accumulated deficit
(103,677 ) (106,663 )
Total stockholders' equity (deficit)
(676 ) 2,537
Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit)
$ 8,260 $ 7,796

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

Three Months Ended Nine Months Ended
September 30, September 30,
2019 2018 2019 2018
Revenues
Product sales
$ 2,096 $ 3,195 $ 6,635 $ 8,866
Total revenues
2,096 3,195 6,635 8,866
Expenses
Cost of sales
799 1,315 2,497 3,235
Research and development
79 616 1,001 1,879
Selling and marketing
626 608 2,057 1,940
General and administrative
1,405 1,319 4,324 4,026
Total expenses
2,909 3,858 9,879 11,080
Loss from operations
(813 ) (663 ) (3,244 ) (2,214 )
Other income (expense)
Change in fair value of warrant liability
837 758 1,745 1,092
Interest expense
(21 ) (17 ) (55 ) (26 )
Miscellaneous income
- 43 2 45
Total other income (expense), net
816 784 1,692 1,111
Net income (loss)
$ 3 $ 121 $ (1,552 ) $ (1,103 )
Net income (loss) applicable to common stockholders
$ 3 $ 121 $ (1,552 ) $ (1,103 )
Net income (loss) per common share-basic
$ 0.00 $ 0.02 $ (0.21 ) $ (0.18 )
Net income (loss) per common share-diluted
$ 0.00 $ 0.02 $ (0.21 ) $ (0.18 )
Weighted average shares-basic
7,546 6,337 7,502 6,233
Weighted average shares-diluted
7,546 6,404 7,502 6,233

Contacts:

International Stem Cell Corporation
Russell A. Kern, PhD
Phone: 760-940-6383
Email: ir@intlstemcell.com

SOURCE: International Stem Cell CORP



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