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 (OTCQB: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

ReleaseID: 566897