StemCells Announces Third Quarter 2004 Financial Results
PALO ALTO, Calif.--(BUSINESS WIRE)--Oct. 26, 2004--StemCells, Inc.
(NASDAQ:STEM) today reported its financial results for the third
quarter ended September 30, 2004.
The Company reported a loss of $4,338,000, or $0.08 per share, for
the third quarter ended September 30, 2004, compared with a loss
before deemed dividends of $2,429,000, or $0.07 per share, for the
third quarter ended September 30, 2003. For the third quarter in 2003,
net loss applicable to common shareholders after deemed dividends to
preferred shareholders was $2,599,000 or $0.08 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 third quarter of 2004 and 2003
was $5,000 and $103,000 respectively. Revenue for 2004 was from
licensing agreements and 2003 was from grants and licensing
agreements. Cash and cash equivalents at September 30, 2004 totaled
$23,141,000 compared with $13,082,000 at December 31, 2003.
The increase in net loss from 2003 to 2004 for the quarter
reported was primarily attributable to three factors: the increase in
expenditures required for various activities undertaken toward
StemCells' planned IND (Investigational New Drug filing), a revision
of the estimated reserve for the exit cost obligation related to the
former corporate headquarters in Rhode Island, and increased costs
associated with new Sarbanes-Oxley compliance.
As previously reported, the Company is targeting the filing of its
first IND in the first quarter of 2005, to evaluate the safety and
efficacy of its proprietary human neural stem cells as a treatment for
Batten's disease, an always fatal neurodegenerative disease and member
of the Lysosomal Storage Disease family.
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StemCells Inc.
Condensed Consolidated Statement of Operations
(in thousands, except share and per share amounts)
Three months ended Nine months ended
September 30, September 30,
2004 2003 2004 2003
Revenue from grants and
licensing agreements $5 $33 $103 $152
Operating Expenses
Research and development 2,075 1,444 5,882 4,524
General & administrative 904 783 2,645 2,381
Wind-down expenses
related to our former
corporate headquarters 1,346 224 1,944 698
--------------------------------------------
Total operating expenses 4,325 2,451 10,471 7,603
Loss from operations (4,320) (2,418) (10,368) (7,451)
Other income (expense) (17) (11) (43) (101)
--------------------------------------------
Net loss (4,337) (2,429) (10,411) (7,552)
Dividend to preferred
shareholders 47
Deemed dividend 170 1,658
--------------------------------------------
Net loss applicable to
common shareholders ($4,337) ($2,599) ($10,411) ($9,257)
Net loss per share
applicable to common
shareholders; basic and
diluted ($0.08) ($0.08) ($0.23) ($0.30)
Weighted average shares -
basic and diluted 54,232,231 33,824,249 46,132,704 30,666,932
StemCells Inc.
Condensed Consolidated Balance Sheets
September 30, December 31,
--------------------------
2004 2003
(in thousands) (unaudited) (a)
Assets
Current assets:
Cash & cash equivalents 23,141 $13,082
Other current assets 292 325
--------------------------
Total current assets 23,433 13,407
Property, plant & equipment, net 3,447 3,611
Other assets, net 2,724 2,768
--------------------------
Total assets $29,604 $19,786
Liabilities and stockholders' equity
Current liabilities $3,513 $2,522
Non-current liabilities 6,680 6,300
Stockholders' equity 19,411 10,964
--------------------------
Total liabilities and stockholders' equity $29,604 $19,786
--------------------------
(a) Derived from audited financial statements included in
StemCells' annual report on form 10-K filed with the SEC.
CONTACT: StemCells, Inc.
Martin McGlynn, Chief Executive Officer, 650-475-3100
or
Lippert/Heilshorn & Associates (Investor Relations)
Ina McGuinness or Bruce Voss, 310-691-7100
imcguinness@lhai.com
SOURCE: StemCells, Inc.
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