StemCells Announces First Quarter 2004 Financial Results
PALO ALTO, Calif., May 4 /PRNewswire-FirstCall/ -- StemCells, Inc.
(Nasdaq: STEM) today reported its financial results for the first quarter
ended March 31, 2004.
The Company reported a loss of $2,770,000, or $0.07 per share, for the
quarter ended March 31, 2004, compared to a loss before deemed dividends of
$2,409,000, or $0.09 per share, for the quarter ended March 31, 2003. For the
first quarter in 2003, net loss applicable to common shareholders after deemed
dividends to preferred shareholders was $2,729,000 or $0.10 per share. There
were no deemed dividends for the same period in 2004, as all of the Company's
previously outstanding cumulative convertible preferred stock was converted to
the Company's common stock prior to the end of 2003. Total revenue for the
first quarter of 2004 and 2003 was $93,000 and $59,000 respectively. Revenue
for 2004 and 2003 was primarily from grants and licensing agreements. Cash
and cash equivalents were $10,346,000 at the end of March 31, 2004, compared
with $1,549,000 at the end of March 31, 2003.
The increase in net loss from 2003 to 2004 for the quarter reported was
primarily attributable to the expenditures required for toxicology studies,
supplies, personnel and other external services in preparation for submitting
our first IND (Investigational New Drug filing) to the FDA, to evaluate the
safety and efficacy of our human neural stem cells as a treatment for Batten
disease.
Martin McGlynn, President and CEO commented, "In our press release on 2003
results issued in early April, I discussed our projected goal of filing the
Company's first IND in the first quarter of 2005 for the treatment of Batten
disease, a rare but fatal neurodegenerative disease. I am pleased to report
that we remain on track to achieve that goal. As our financial results for
the first quarter of this year indicate, we are increasing expenditures on
IND-enabling activities so that we may begin clinical testing of our human
neural stem cells next year."
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StemCells, Inc.
Condensed Consolidated Statement of Operations
(unaudited)
(in thousands, except share and per share amounts)
Three months ended
March 31,
2004 2003
Revenue from grants and Licensing agreements $93 $59
Operating Expenses
Research and development 1,868 1,340
General & administrative 864 816
Wind-down related to former corporate
headquarters 130 253
Total operating expenses 2,862 2,409
Loss from operations (2,769) (2,350)
Other income (expense) (1) (59)
Net loss (2,770) (2,409)
Deemed dividend 320
Net loss applicable to common shareholders ($2,770) ($2,729)
Net loss per share applicable to common
shareholders; basic and diluted ($0.07) ($0.10)
Weighted average shares
- basic and diluted 41,010,068 26,943,019
StemCells Inc.
Condensed Consolidated Balance Sheets
March 31, December 31,
2004 2003
(in thousands) (unaudited) (a)
Assets
Current assets:
Cash & cash equivalents 10,346 $13,082
Other current assets 265 325
Total current assets 10,611 13,407
Property, plant & equipment, net 3,408 3,611
Other assets, net 2,743 2,768
Total assets $16,762 $19,786
Liabilities and stockholders equity
Current liabilities $2,406 $2,522
Non-current liabilities 6,050 6,300
Stockholders' equity 8,306 10,964
Total liabilities, redeemable preferred
stock and stockholders' equity $16,762 $19,786
(a) Derived from audited financial statements included in StemCells'
annual report on form 10-K/A filed with the SEC.
SOURCE StemCells, Inc.
-0- 05/04/2004
/CONTACT:
Martin McGlynn, President & CEO of StemCells, Inc.,
+1-650-475-3100, ext 108;
or
media, Janet Vasquez, or investors, Jane Lin,
both of The Investor Relations Group, +1-212-825-3210, for StemCells, Inc./
/Web site: http://www.stemcellsinc.com /
(STEM)
CO: StemCells, Inc.
ST: California
IN: BIO MTC HEA
SU: ERN
RN-MW
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2954 05/04/2004 08:02 EDT http://www.prnewswire.com
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