International Stem Cell Corporation Announces Second Quarter 2011 Financial Results and Corporate Events

International Stem Cell Corporation (OTCBB: ISCO), a biotechnology company that developed a powerful new stem cell technology called "parthenogenesis" which promises to significantly advance the field of regenerative medicine, today announced financial results for the quarter ended June 30, 2011 and for the first six months of the fiscal year and provided an update on corporate events.

ISCO reported year-to-date revenues of $2.6 million compared to $0.7 million for the same time period in 2010, representing an increase of 271%. The increase in our revenues relates to sales generated by ISCO's wholly-owned subsidiaries Lifeline Skin Care (LSC) which contributed $1.7 million and Lifeline Cell Technology (LCT) which contributed $0.9 million of revenues.

Total year-to-date expenses, excluding cost of sales increased $2.0 million or 38%, compared to the first six months of the previous year. The most significant reasons for the increase in total expenses related to increases in R&D and G&A. Research & Development expenses increased primarily due to increased activity on our scientific projects. General & Administrative expenses increased primarily due to increased headcount, non-cash stock-based compensation and increased expenses related to business development activity and general corporate expenses.

Our cash balance at June 30, 2011 was $3.6 million. Net cash used in operating activities for the six months ended June 30, 2011 was $3.0 million.

Second Quarter 2011 Highlights:

-- The first U.S.-based donor was enrolled in ISCO's program to establish a bank of clinical-grade human parthenogenetic stem cells (hpSCs) capable of being immune-matched to millions of patients.

-- We strengthened our senior management team to assist in the continued development of the Company. Kurt May was appointed Senior Vice President responsible for mergers and acquisitions and development of new international collaborations. Donna Queen was added to the management team as Vice President of LSC, where she is responsible for marketing and business development.

-- We started a series of preclinical animal studies of neuronal cells derived from hpSCs. The studies will evaluate the in vivo safety and tumorigenicity of neuronal cells as well as their ability to develop into functioning dopaminergic neuron–like cells to treat Parkinson's disease.

-- We successfully completed the first series of preclinical testing of hepatocytes derived from hpSCs. In the transplantation mouse model, inoculated cells were capable of engrafting and surviving in specific niches within the liver, and were further developing into cells with essential hepatocyte-like features.

About International Stem Cell Corporation

International Stem Cell Corporation is focused on the therapeutic applications of human parthenogenetic stem cells 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 parthenogenic, homozygous stem cell line that can be a source of therapeutic cells with minimal immune rejection after transplantation into hundreds of millions of individuals of differing genders, ages and racial background. This offers 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, and cell-based skin care products through its subsidiary Lifeline Skin Care. More information is available at www.internationalstemcell.com.

To subscribe to receive ongoing corporate communications, please click on the following link: http://www.b2i.us/irpass.asp?BzID=1468&to=ea&s=0.

International Stem Cell Corporation and Subsidiaries (A Development Stage Company) Condensed Consolidated Statements of Financial Condition June 30, 2011 December 31, 2010 (Restated)(1) (Unaudited) Assets Cash and cash equivalents $ 3,581,933 $ 5,782,027 Accounts receivable 341,666 738,506 Inventory 1,329,433 856,083 Prepaid expenses and other current assets 290,196 228,338 Total current assets 5,543,228 7,604,954 Property and equipment, net 1,495,916 1,295,328 Patent licenses, net 1,056,562 986,714 Deposits and other assets 16,279 39,812 Total assets $ 8,111,985 $ 9,926,808 Liabilities and Stockholders' Equity Accounts payable $ 1,032,531 $ 582,824 Accrued expenses 855,315 545,781 Deferred revenue 137,834 759,667 Advances 250,000 250,000 Warrants to purchase common stock 1,027,171 2,399,605 Total current liabilities 3,302,851 4,537,877 Commitments and contingencies Stockholders' Equity Common stock, $.001 par value, 200,000,000 shares authorized, 76,599,928 shares and 74,771,107 shares issued and outstanding at June 30, 2011 and December 31, 2010, respectively 76,600 74,771 Convertible preferred stock, $.001 par value, 20,000,000 shares authorized, 2,800,043 shares issued and outstanding at June 30, 2011 and December 31, 2010, respectively 2,800 2,800 Subscription receivable on common stock - (4,875 ) Additional paid-in capital 59,780,363 56,170,006 Deficit accumulated during the development stage (55,050,629 ) (50,853,771 ) Total stockholders' equity 4,809,134 5,388,931 Total liabilities and stockholders' equity $ 8,111,985 $ 9,926,808 (1) The Company restated its financial statements for the year ended December 31, 2010, and the quarter ended March 31, 2011. International Stem Cell Corporation and Subsidiaries (A Development Stage Company) Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended June 30, Six Months Ended June 30, Inception (August 2001) through June 30, 2011 (Restated)(1) 2011 2010 (Restated)(1) 2011 (Restated)(1) 2010 (Restated)(1) Revenues Product sales $ 1,114,309 $ 441,118 $ 2,629,225 $ 713,744 $ 5,728,390 Royalties and license - - - - 135,000 Total revenue $ 1,114,309 $ 441,118 $ 2,629,225 $ 713,744 $ 5,863,390 Development expenses Cost of sales 362,131 214,330 791,125 360,706 2,506,597 Research and development 1,128,869 754,000 2,132,279 1,338,069 15,992,557 Marketing 345,800 291,576 664,006 424,994 3,063,155 General and administrative 2,135,732 2,033,615 4,368,470 3,408,821 27,692,292 Total development expenses 3,972,532 3,293,521 7,955,880 5,532,590 49,254,601 Loss from development activities (2,858,223 ) (2,852,403 ) (5,326,655 ) (4,818,846 ) (43,391,211 ) Other income (expense) Settlement with related company - - - - (92,613 ) Miscellaneous expense (12,040 ) (256 ) (11,140 ) (20,649 ) (28,652 ) Dividend income - 350 - 25,999 92,875 Interest expense - (6,805 ) - (14,079 ) (2,225,074 ) Sublease income 2,450 2,125 4,650 3,525 303,083 Change in market value of warrants 478,669 7,083,365 1,349,518 (1,347,960 ) (2,380,664 ) Total other income (expense) 469,079 7,078,779 1,343,028 (1,353,164 ) (4,331,045 ) Income (loss) before income taxes (2,389,144 ) 4,226,376 (3,983,627 ) (6,172,010 ) (47,722,256 ) Provision for income taxes - - - - 6,800 Net income (loss) $ (2,389,144 ) $ 4,226,376 $ (3,983,627 ) $ (6,172,010 ) $ (47,729,056 ) Dividends on preferred stock $ (107,203 ) $ - $ (213,231 ) $ (1,238,067 ) $ (7,751,380 ) Net income (loss) attributable to common stockholders $ (2,496,347 ) $ 4,226,376 $ (4,196,858 ) $ (7,410,077 ) $ (55,480,436 ) Basic earnings per common share $ (0.03 ) $ 0.06 $ (0.06 ) $ (0.11 ) Diluted earnings per common share $ (0.03 ) $ 0.04 $ (0.06 ) $ (0.11 ) Share used in per share calculations: Weighted average shares outstanding 76,340,016 68,676,504 75,842,071 64,789,250 Weighted average shares outstanding on a Fully Diluted Basis 76,340,016 114,797,830 75,842,071 64,789,250 (1) The Company restated its financial statements for the year ended December 31, 2010, and the quarter ended March 31, 2011. International Stem Cell Corporation Kenneth C. Aldrich, Chairman 760-940-6383 kaldrich@intlstemcell.com Or Ray Wood, CFO 760-940-6383 rwood@intlstemcell.com

Part 3: The Ellis Martin Report with Ken Aldrich of Int Stem Cell Corp (ISCO.OB)

Ellis Martin of The Ellis Martin Report interviews Ken Aldrich of International Stem Cell Corporation (ISCO.OB) on the latest research involving stem cell technology utilizing unfertilized eggs, as a basis for cell generation with a goal toward organ transplants which are immune to rejection by the body...as well as other applications. Mr. Aldrich also discusses neurological applications focusing on reversing Parkinson's disease. Preventing and reversing blindness is another topic covered. 

Chttp://www.ellismartinreport.com  http://www.intstemcell.com 

contact:martinrepots@gmail.com

International Stem cell Corporation is a paid sponsor of The Ellis Martin Report

International Stem Cell Corporation: A Company with Scores of Potential by Deborah Sterescu

International Stem Cell Corp (OTCBB:ISCO) is a company to watch this year, with several promising developments in store, according to a conference call with investors this morning.


The company, whose parthenogenetic stem cell technology can be used to derive pluripotent stem cells, meaning they can be transformed into any cell type in the body, has many important advantages at its fingertips.


Regenerative medicine is a market that is set to boom in the coming years, as more and more companies are developing therapies based on stem cell use. International Stem Cell's long-term goal is to be a universal supplier of stem cells for not just one, but a host of therapies.


The company's parthenogenetic stem cells are derived from unfertilized eggs, avoiding the ethical issues behind the destruction of viable human embryos, and giving cell-therapy companies one big reason to chose International Stem Cell as their supplier of choice when the time is right.
These parthenogenetic cells, like embryonic cells, also have the capacity to become almost any cell type in the body, but have demonstrated they are better in terms of the immune system, as one single stem cell line can be genetically matched to millions of people, reducing the need for immunosuppressants.


The company holds the world's largest collection of research-grade human parthenogenetic stem cell (hpSC) lines, which it uses along with its partners to investigate cellular therapies for a number of incurable human diseases.


Its plan is to establish a US bank of its clinical-grade human parthenogenetic stem cells that will be capable of being immune-matched to millions of patients, so that a physician could call up and request a specific cell type for people. The company, which recently received approvals to enroll around 3 US donors for its bank, already has a collection of ten human parthenogenetic stem cell lines used for research purposes, which were derived outside the US.


These cell lines could potentially be used to cure a number of diseases, including cancer, heart disease, liver disease, among many others. Already, the company has several trials in the works, and has successfully demonstrated in pre-clinical animal studies that its stem cells can be used to create viable liver cells.


Currently, efficacy tests in rat models are in progress for the liver cells, with results anticipated soon. If successful, the company said it plans on aggressively initiating the FDA process, with the aim of beginning first stage clinical trials sometime in 2012. The hope is that International Stem Cell will attain Fast Track designation, as few alternative options are available to patients suffering from liver disease.


The company also has trials in the works for Parkinson's disease and diseases of the eye, and is actively looking for collaborative or joint venture opportunities, as well as in-licensing and out-licensing arrangements.


In addition to its hugely potentially valuable stem cell therapy business, the company also two other operations that are set to generate revenue in the meantime. Lifeline Cell Technology, which saw sales grow by 35% in the first quarter, develops manufactures and markets the Lifeline brand of cell-culture products, which are used by researchers to grow human cells for pre-clinical research.


The subsidiary's products are developed using parent International Stem Cell's technology, and the company expects that as trials for researchers progress into more advanced stages, its technology will be embedded in this progress, potentially generating hundreds of millions of revenue.


In the last quarter, Lifeline Cell gained over 200 new customers due to new product introductions and the development of distribution channels internationally, a strategy it plans to continue.


Lastly, International Stem Cell's Lifeline Skin Care business sells skin care products based on its stem cells, having a very successful launch at the end of last year. The company planned on selling 1,000 products, but sold 7,000 initially, and plans to aggressively kick start major marketing initiatives again in September.


International Stem Cell is a company with scores of upside potential, and though future capital raising has not been ruled out, it has a facility that allows it to draw equity as necessary.
Register here to be notified of future International Stem Cell articles

Part Two: The Ellis Martin Report - Interview with Ken Aldrich of International Stem Cell Corp.

International Stem Cell Corporation trades under the symbol ISCO.OB on the Over the Counter Bulletin Board and is based in Carlsbad, California where Ellis Martin had the pleasure of interviewing Executive Chairman Kenneth Aldrich. 

International Stem Cell has developed a process to derive stem cells similar to Embryonic Stem Cells without the need for fertilized embryos and with minimal exposure to non-human cells. These factors provide ISCO a unique leadership role in the field of regenerative cell therapy. Additionally, Lifeline Cell Technology, (a wholly-owned subsidiary of International Stem Cell Corporation (ISCO) develops, manufactures and markets high-quality human primary cells, stem cells, media and reagents for sale to pharmaceutical, academic and government scientists. 

The company's management pioneered the development of the normal human cell culture market through the creation of Clonetics® Corporation in the 1980s and has over 20 years combined experience in research, development, manufacturing, quality control, marketing and sales of human cell culture products. Lifeline's products are distributed in the United States and Europe. http://www.ellismartinreport.comhttp://www.intlstemcell.com contact: martinreports@gmail.com 

International Stem Cell is a paid sponsor of The Ellis Martin Report

International Stem Cell Corporation - Business Update Conference Call and Q&A

To listen to a Webcast of the August 10th, 2011 - 11am EST conference call with Chairman Kenneth Aldrich followed by a Q&A, please click HERE

Information contained in this webcast is current as of the date and time first presented.

The Ellis Martin Report: Interview with Ken Aldrich of International Stem Cell Corp.

Please click on the arrow above to listen to the complete interview.

"Ken Aldrich of International Stem Cell Corp (ISCO.OB) on the Present and Future of Stem Cell Research and Applications"

The Ellis Martin Report: International Stem Cell Corporation trades under the symbol ISCO.OB on the Over the Counter Bulletin Board and is based in Carlsbad, California where I have the pleasure of interviewing Executive Chairman, Kenneth Aldrich. International Stem Cell has developed a process to derive stem cells similar to Embryonic Stem Cells without the need for fertilized embryos and with minimal exposure to non-human cells. These factors provide ISCO a unique leadership role in the field of regenerative cell therapy. Additionally, Lifeline Cell Technology, a wholly-owned subsidiary of International Stem Cell Corporation (ISCO), develops, manufactures and markets high-quality human primary cells, stem cells, media and reagents for sale to pharmaceutical, academic and government scientists. The company’s management pioneered the development of the normal human cell culture market through the creation of Clonetics® Corporation in the 1980s and has over 20 years combined experience in research, development, manufacturing, quality control, marketing and sales of human cell culture products. Lifeline’s products are distributed in the United States and Europe. Ken Aldrich, welcome to the program.

For the complete text version of this broadcast: http://www.ellismartinreport.com/node/148

Reminder: International Stem Cell Holding Business Update Conference Call on August 10

International Stem Cell Corporation (OTCBB:ISCO) reminds investors that it is holding a conference call and webcast on Wednesday, August 10, 2011 at 11:00 a.m. Eastern (8:00 a.m. Pacific). Chairman Ken Aldrich will provide an update on the business, including plans for the future development of the skin care line; animal and potential clinical trials for Parkinson's and liver diseases; and the Company's business strategy for 2011 and longer term.


Individuals interested in listening to the conference call may do so by dialing 877-407-8033 for domestic callers, or 201-689-8033 for international callers, or from the webcast on the investor relations section of the Company's Web site atwww.intlstemcell.com.


A telephone replay will be available approximately one hour after the conclusion of the call by dialing (877) 660-6853 for domestic callers, or 201-612-7415 for international callers, and entering the account code: 286 and the Conference ID: 376367. The webcast will be available on the Company's Web site for 60 days following the completion of the call.


About International Stem Cell Corporation
International Stem Cell Corporation is focused on the therapeutic applications of human parthenogenetic stem cells 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 parthenogenic, homozygous stem cell line that can be a source of therapeutic cells with minimal immune rejection after transplantation into hundreds of millions of individuals of differing genders, ages and racial background. This offers 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, and cell-based skin care products through its subsidiary Lifeline Skin Care. More information is available at www.internationalstemcell.com.


To subscribe to receive ongoing corporate communications, please click on the following link:http://www.b2i.us/irpass.asp?BzID=1468&to=ea&s=0.

International Stem Cell Corporation

Kenneth C. Aldrich, Chairman
760-940-6383
kaldrich@intlstemcell.com
or:
Lippert/Heilshorn & Associates
Don Markley, 310-691-7100
dmarkley@lhai.com