Good morning Chief. You can delete if it is too long. StemCells Reports Financial Results for First Quarter of 2003
PALO ALTO, Calif., May 16 /PRNewswire-FirstCall/ -- StemCells, Inc. today reported its financial results for the first quarter ended March 31, 2003.
StemCells' net loss applicable to common shareholders was $2.7 million, or $0.10 per share, for the first quarter of 2003, compared to a net loss of $3.1 million, or $0.13 per share, for the same period in 2002. Cash and cash equivalents were $1.5 million as of March 31, 2003. The Company has since raised over $6.8 million. $6.5 million resulted from the purchase of 4,000,000 shares of common stock by The Riverview Group LLC as announced on May 13th; that transaction closed on Thursday, May 15th. Another $365,000 was received on May 12th as the proceeds of a draw on the Company's equity line.
The decrease in net loss from 2002 to 2003 was primarily attributable to a reduction in rent expense as a result of an amendment to the lease on the Company's Palo Alto facility and the result of a cost reduction program initiated in September 2002.
Martin McGlynn, President & CEO said, "We are pleased to have decreased our overall spending from prior periods as we continue to make progress toward developing new stem cell-based therapies to bring to patients. The $6.5 million funding announced on Tuesday of this week has greatly improved our financial situation. However, I think it is important to recognize that despite working under severe financial constraints, we have achieved some extremely significant milestones and are making good progress towards our goal of identifying disease targets for our stem cell technology. In the past several months we have announced the issuance of four important patents, the success of two preclinical studies using our human neural stem cells in Batten Disease and in spinal cord injury, and the potential for using our method for isolating precursors to insulin-producing cells in a novel treatment for diabetes."
The four new U.S. patents of which StemCells is the grantee or exclusive licensee, include three for neural stem cells and one for pancreatic progenitor cells. These patents cover:
-- Transplantation of neural stem cells and progeny cells into the central nervous system and peripheral nervous system, including the spinal cord -- Drug screening using human neural stem cell cultures -- Methods of producing a cell population enriched for neural stem cells that can initiate neurospheres -- Methods for isolating pancreatic progenitor cells that give rise to insulin producing cells
About StemCells Inc.
StemCells, Inc is a biotechnology company focused on the discovery, development and commercialization of stem cell-based therapies to treat diseases of the nervous system, liver, and pancreas. The Company's stem cell programs seek to repair or repopulate neural or other tissue that has been damaged or lost as a result of disease or injury. Further information about the Company is available on its web site at http://www.stemcellsinc.com/.
Apart from statements of historical facts, the text of this press release constitutes forward-looking statements regarding, among other things, the future business operations of StemCells, Inc. ("the Company"). The forward-looking statements speak only as of the date of this news release. StemCells does not undertake to update any of these forward-looking statements to reflect events or circumstances that occur after the date hereof. Such statements reflect management's current views and are based on certain assumptions that may or may not ultimately prove valid. The Company's actual results may vary materially from those contemplated in the forward-looking statements due to risks and uncertainties to which the Company is subject, including uncertainties regarding the Company's ability to obtain the capital resources needed to continue its current research and development operations and to conduct the research, preclinical development and clinical trials necessary for regulatory approvals; the fact that the Company's stem cell technology is at the pre-clinical stage and has not yet led to the development of any proposed product; the uncertainty whether the Company will achieve revenues from product sales or become profitable; uncertainties regarding the Company's obligations in regard to its former encapsulated cell therapy facilities in Rhode Island; and other factors that are described in Exhibit 99 to the Company's Annual Report on Form 10-K entitled "Cautionary Factors Relevant to Forward-Looking Statements."
StemCells Inc. Condensed Consolidated Statement of Operations (in thousands, except share and per share amounts) (unaudited)
Three months ended March 31, 2003 2002 Revenue from grants and licensing agreements $59 $111 Operating expenses Research & development 1,339 1,537 General & administrative 1,069 1,339 Total operating expenses 2,408 2,876 Loss from operations (2,349) (2,765) Other income (expense) (60) (45) Net loss (2,409) (2,810) Deemed dividends to preferred shareholders (320) (320) Net loss applicable to common shareholders $(2,729) $(3,130) Basic and diluted earnings per share: Net loss per share applicable to common Shareholders, basic and diluted $(0.10) $(0.13) Weighted average common shares 26,943,019 24,220,952
StemCells, Inc.
Condensed Consolidated Balance Sheets
March 31, December 31, 2003 2002 (in thousands) (unaudited) (A)
Current assets Cash & cash equivalents $1,549 $4,236 Other current assets 401 274 Total current assets 1,950 4,510
Property, plant & equipment, net 4,183 4,338 Other assets, net 2,959 2,481 Total assets 9,092 11,329
Liabilities and stockholders equity Current liabilities 1,117 999 Non-current liabilities 3,788 3,882 Convertible preferred stock 2,979 2,660 Stockholders' equity 1,208 3,788 Total liabilities, redeemable preferred stock and stockholders' equity $9,092 $11,329
(A) Derived from audited financial statements included in StemCells' annual report on form 10-K filed with the SEC.
CONTACT: Martin McGlynn, President & CEO of StemCells, Inc., +1-650-475-3100, ext 108; or media and investors, Janet Vasquez or Jane Lin of The Investor Relations Group, +1-212-825-3210, for StemCells, Inc.
StemCells, Inc. CONTACT: Martin McGlynn, President & CEO of StemCells, Inc., +1-650-475-3100, ext 108; or media and investors, Janet Vasquez or Jane Lin of The Investor Relations Group, +1-212-825-3210, for StemCells, Inc.
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