StemCells Announces Second Quarter 2004 Financial Results
PALO ALTO, Calif., Jul 30, 2004 /PRNewswire-FirstCall via COMTEX/ -- StemCells, Inc.
(Nasdaq: STEM) today reported its financial results for the second quarter
ended June 30, 2004.
The Company reported a loss of $3,303,000, or $0.08 per share, for the
second quarter ended June 30, 2004, compared to a loss before dividends and
deemed dividends of $2,713,000, or $0.09 per share, for the second quarter
ended June 30, 2003. For the second quarter in 2003, net loss applicable to
common shareholders after dividends and deemed dividends to preferred
shareholders was $3,928,000 or $0.13 per share. There were no dividends or
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
second quarter of 2004 and 2003 was $6,000 and $60,000 respectively. Revenue
for 2004 and 2003 was primarily from grants and licensing agreements. Cash
and cash equivalents were $26,022,000 at the end of June 30, 2004, compared
with $6,534,000 at the end of June 30, 2003.
The increase in net loss from 2003 to 2004 for the quarter reported was
primarily attributable to the increase in expenditures required for various
activities undertaken toward our planned IND (Investigational New Drug) filing
and a revision to our accrued wind-down expenses associated with our former
corporate headquarters in Rhode Island. As previously reported, the Company is
targeting the filing of its first IND early next year, to evaluate the safety
and efficacy of its proprietary human neural stem cells as a treatment for
Batten disease, an always fatal neurodegenerative lysosomal storage disorder.
Martin McGlynn, President and CEO commented, "The Company remains on track
to file the IND in the first quarter of next year and equally important, as a
result of our recent financing on June 17, 2004, we now have the necessary
capital to initiate the trial once it is approved by the FDA."
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StemCells Inc.
Condensed Consolidated Statement of Operations
(in thousands, except share and per
share amounts)
Three months ended Six months ended
June 30, June 30,
2004 2003 2004 2003
Revenue from grants
and licensing agreements $6 $60 $99 $119
Operating Expenses
Research and
development 1,939 1,740 3,807 3,080
General &
administrative 877 782 1,741 1,598
Wind-down expenses
related to our former
corporate headquarters 468 220 598 473
Total operating expenses 3,284 2,742 6,146 5,151
Loss from operations (3,278) (2,682) (6,047) (5,032)
Other income (expense) (25) (30) (26) (90)
Net loss (3,303) (2,712) (6,073) (5,122)
Dividend to preferred
shareholders 47 47
Deemed dividend 1,168 1,488
Net loss applicable to
common shareholders ($3,303) ($3,927) ($6,073) ($6,657)
Net loss per share
applicable to common
shareholders; basic
and diluted ($0.08) ($0.13) ($0.14) ($0.23)
Weighted average
shares - basic and
diluted 43,066,807 31,157,909 42,038,437 29,062,107
StemCells Inc.
Condensed Consolidated Balance Sheets
June 30, December 31,
2004 2003
(in thousands) (unaudited) (a)
Assets
Current assets:
Cash & cash equivalents 26,022 $13,082
Other current assets 215 325
Total current assets 26,237 13,407
Property, plant & equipment, net 3,215 3,611
Other assets, net 2,719 2,768
Total assets $32,171 $19,786
Liabilities and stockholders' equity
Current liabilities $2,618 $2,522
Non-current liabilities 5,810 6,300
Stockholders' equity 23,743 10,964
Total liabilities and stockholders' equity $32,171 $19,786
(a) Derived from audited financial statements included in StemCells'
annual report on form 10-K filed with the SEC.
Martin McGlynn, President & CEO of StemCells, Inc.,
+1-650-475-3100, ext. 108
http://www.stemcellsinc.com
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