International Stem Cell Corp. (ISCO)

[capital gain]

Does anybody know what this deferred revenue mentioned in the CC is about, it looks like they have deferred revenue of about $300K from Jan 2014 into 4Q 2013, am I wrong in assuming that?

it was asked as a question during the call, and wasn't answered fully, is anybody able to clarify


Part 4 of the CC below.

unidentified Analyst
Yes. I just had a question about the deferred revenue that you’re able to recognize in 2013. What quarter did you recognize that in?

Dr. Simon Craw - Executive Vice President
Thank you. Let me have Jay answer that question. Jay?

Jay Novak - Chief Financial Officer
Sure. The deferred revenue was recognized in the fourth quarter, and historically we had a 30-day lag in recognizing revenue for the Skin Care. This is specific to our Skin Care subsidiary, and that is specifically due to the fact that they have a -- the customers have a 30-day return.

Unidentified Analyst
Okay. I think I understand that. Then my question for you is, what was your revenue in the fourth quarter then both gross and then net of the deferral?

Dr. Simon Craw - Executive Vice President
I believe the deferral…

Jay Novak - Chief Financial Officer
The deferral was about $277,000.

Dr. Simon Craw - Executive Vice President
Right.

Unidentified Analyst
Yes.

Dr. Simon Craw - Executive Vice President
So, it took $277,000…

Jay Novak - Chief Financial Officer
Revenues were about $2.9 million without the deferral, without recognition of the deferrals.

Unidentified Analyst
I was trying to figure out what kind of revenue growth -- you can go back to the past statements, you can quickly, easily identify the revenue growth that’s occurring from quarter-to-quarter also. And I was trying to figure out what kind of revenue growth was occurring in the fourth quarter or sort of natural revenue growth excluding the impact of the deferrals like in (inaudible), just wanted to get a better understanding?

Jay Novak - Chief Financial Officer
Yes. Sure. So, the revenue growth was 47% including the recognition of the deferral, which is obviously slightly inflated, but if you take out the recognition of deferral, it is about 33%, so still a pretty healthy rate.

Unidentified Analyst
Is that from the fourth quarter to the third quarter or is that from year-to-year?

Jay Novak - Chief Financial Officer
It’s year-over-year.

Dr. Simon Craw - Executive Vice President
Yes, year-over-year.

Unidentified Analyst
I guess I was interested in what the growth was from the third quarter to the fourth quarter?

Dr. Simon Craw - Executive Vice President
Okay. Well, can we take the next question, while we look out for that information? We will get back to you on that, Ron.

Unidentified Analyst
Thank you.

Operator

(Operator Instructions). Your next question comes from the line of George [Matal]. Please go ahead.

Unidentified Analyst
Simon, it’s George [Matal].

Dr. Simon Craw - Executive Vice President
Hello George.

Unidentified Analyst
Hello sir. Good to seeing you at the Roth Conference. My question is companies like Stem Cells have received a tremendous grant from California for the research, are we as a company, as International Stem Cell in line for something like that in non-dilutive funding in addition to albeit a great work you're doing?

Dr. Simon Craw - Executive Vice President
That's a good question, George. Thanks for that. The short answer is yes, we continue to apply for grants from various non-funding aides -- from various governmental funding agencies that would provide non-dilutive funding for our research and development. We are in the process of applying for a number of [same] (ph) grants through the California Institute for Regenerative Medicine.

It's fair to say that so far we have been unsuccessful in obtaining those grants; I think one of the keys is to have a very strong academic partner to your research, and over the last year or two, we’ve built some very strong links into the local academic community at Sanford-Burnham for example with the addition of Evans Snyder to our scientific board, and I think through those relationships, we can look forward to potentially being more successful in grant applications.

Unidentified Analyst
Thank you.

Operator

(Operator Instructions). And we have no further questions at this time. You may continue.

Dr. Simon Craw - Executive Vice President
Okay. Let me just cycle back to a question earlier on about the growth in the fourth quarter revenue. Unfortunately, we don't have that data in front of us right now. Is that correct Jay?

Jay Novak - Chief Financial Officer
I have the Q4 data, but I do not have Q3 with me here. So, I can tell you that the Q4 data tells me that Skin Care revenues were about $758,000 for the quarter, for the fourth quarter.

Dr. Simon Craw - Executive Vice President
So Ron, if you’d like to give us a call after this call, we can talk you through it in more detail. If at all, we can refer you to the 10-Q that was published in November and reference the K that we just issued. So with that, I’d like to close the call and thank everyone for joining us this morning on this update. Thank you.


GLTA.

A.H