StemCells Announces Fourth Quarter and Year End 2004 Financial Results
PALO ALTO, Calif.--(BUSINESS WIRE)--March 4, 2005--StemCells, Inc.
(NASDAQ: STEM) today reported its financial results for the fourth
quarter and the year ended December 31, 2004.
The Company reported a loss of $4,919,000, or $0.08 per share, for
the fourth quarter ended December 31, 2004, compared to a loss before
dividends and deemed dividends of $4,740,000, or $0.13 per share, for
the fourth quarter of 2003. For the fiscal year ended December 31,
2004, the Company reported a loss of $15,330,000, or $0.31 per share,
as compared to a loss before dividends and deemed dividends of
$12,291,000, or $0.38 per share, for the 2003 fiscal year. The
increase in net loss from 2003 to 2004 was primarily attributable to
the expenditures required for pre-clinical pharmacology and toxicology
studies, supplies, personnel and other external services in
preparation for submitting our first investigational new drug
application to the U.S. Food and Drug Administration (FDA). The
increase was also attributable to a higher valuation of stock options
granted to non-employees in 2004 as compared to 2003, and to the cost
of external services incurred in the evaluation and testing of our
internal financial control systems to meet the requirements of the new
Securities and Exchange Commission rules issued under section 404 of
the Sarbanes-Oxley Act.
Total revenue for 2004 was $141,000, compared with $273,000 in
2003. Revenue for 2004 and 2003 was primarily from grants and
licensing agreements. Cash and cash equivalents were $41,060,000 at
the end of 2004, compared with $13,082,000 at the end of 2003. The
increase in cash and cash equivalents from 2003 to 2004 was primarily
attributable to the result of two equity financing agreements with
institutional and other accredited investors to raise $20 million and
$22.5 million that was consummated in June 2004 and October 2004
respectively.
"StemCells made notable progress in the past year," said Martin
McGlynn, CEO of StemCells, Inc. "We increased our cash position to
$41.1M at the end of 2004, up from $13.1M in 2003 and $4.2M in 2002,
significantly strengthening our balance sheet while at the same time
attracting new, qualified investors. Our management team has also been
significantly strengthened. The addition of Judi Lum as Chief
Financial Officer and Vice President, Finance, with her financial and
operational expertise and life sciences background, has added depth to
this area and we are extremely pleased with the recent hiring of Alan
Jacobs, M.D., Ph.D., as our Chief Medical Officer and Vice President,
Clinical Research, Neural Cell Therapy. We filed with the FDA the
first in a series of planned IND (Investigational New Drug)
applications using the Company's patented neural stem cell product
(hCNS-SC). The trial, for the treatment of Batten Disease, a fatal
genetic condition, is now on clinical hold and the Company is focused
on responding thoroughly and expeditiously to the FDA's questions. I
believe that Dr. Jacobs' experience with clinical trials of cell-based
therapies will prove invaluable in preparing our response. The year
also saw the issuance to us of a key patent covering human neural stem
cell cultures derived from any source, including embryonic as well as
fetal, neonatal and adult tissue."
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(in thousands, except share
and per share amounts)
------------------------------
Year ended
----------
December 31,
------------
2004 2003
---- ----
Revenue from grants and
licensing agreements $141 $273
Operating Expenses
Research and development 8,760 6,144
General & administrative 3,954 3,390
Wind-down related to former
corporate headquarters 2,827 2,885
------------------------
Total operating expenses 15,541 12,419
Loss from operations (15,400) (12,146)
Other income (expense) 70 (145)
------------------------
Net loss (15,330) (12,291)
Dividend to preferred
shareholders 68
Deemed dividend 2,066
------------------------
Net loss applicable to common
shareholders ($15,330) ($14,425)
Net loss per share applicable
to common shareholders; basic
and diluted ($0.31) ($0.45)
Weighted average shares -
basic and diluted 49,606,277 32,080,233
StemCells Inc.
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Condensed Consolidated Balance Sheets
-------------------------------------
December 31,
-------------
2004 2003
-------------
(in thousands) (a)
Assets
Current assets:
Cash & cash equivalents $41,060 $13,082
Other current assets 390 325
----------------
Total current assets 41,450 13,407
Property, plant & equipment, net 3,424 3,611
Other assets, net 2,753 2,768
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Total assets $47,627 19,786
Liabilities and stockholders equity
Current liabilities 3,383 2,522
Non-current liabilities 7,295 6,300
Convertible preferred stock -
Stockholders' equity 36,949 10,964
----------------
Total liabilities, redeemable preferred stock and
stockholders' equity $47,627 $19,786
----------------
(a) Derived from audited financial statements included in
StemCells' annual report on form 10-K/A filed with the SEC.
CONTACT: Company Contact:
StemCells, Inc.
Judi Lum, 650-475-3100
Chief Financial Officer
or
Media Contact:
Schwartz Communications, Inc.
781-684-0770 or 415-512-0770
stemcells@schwartz-pr.com
SOURCE: StemCells, Inc.
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