International Stem Cell Corporation Reports Modest Sales Growth and Continued Net Loss in Q2 2025

International Stem Cell Corporation (ISCO) reported its financial results for the second quarter of 2025, revealing a modest increase in product sales and a continued net loss. For the three months ended June 30, 2025, the company generated $2.4 million in product sales, up from $2.3 million in the same period last year. The increase was primarily driven by higher sales in the biomedical market segment, which saw a rise of $186,000 in cell and other product sales, although this was partially offset by a decline in media product sales. The company’s net income for the quarter was $129,000, compared to a net income of $119,000 in the prior year, reflecting a slight improvement in profitability.

In terms of operational performance, ISCO's total operating expenses for the second quarter were $2.3 million, a slight increase from $2.2 million in the previous year. The rise in expenses was attributed to higher research and development costs, which surged by 95% to $162,000, driven by increased rent and consulting expenses. General and administrative expenses also saw a minor increase, while selling and marketing expenses decreased by 5%. The company reported a profit margin of 62% for the quarter, up from 61% in the prior year, indicating improved efficiency in its operations.

The company’s balance sheet as of June 30, 2025, showed total assets of $5.5 million, an increase from $5.2 million at the end of 2024. Current assets rose to $3.8 million, bolstered by an increase in inventories and accounts receivable. However, ISCO continues to face challenges with an accumulated deficit of approximately $110.8 million, raising concerns about its ability to sustain operations without additional financing. The company had cash reserves of $920,000 at the end of the quarter, down from $1.2 million at the end of 2024.

Strategically, ISCO is focused on advancing its therapeutic market initiatives, particularly in developing treatments for Parkinson’s disease, traumatic brain injury, and stroke using its proprietary human parthenogenetic stem cells (hpSCs). The company is also working on expanding its biomedical and anti-aging product lines through its subsidiaries, Lifeline Cell Technology and Lifeline Skin Care. Despite the positive sales growth, ISCO has not yet generated revenue from its therapeutic product candidates, which remains a critical area for future growth.

Looking ahead, ISCO's management has indicated that the company will need to secure additional funding to continue its research and development efforts and maintain operations. The company is exploring various financing options, including equity and debt financing, to support its initiatives. The outlook remains cautious, as the company acknowledges the substantial doubt about its ability to continue as a going concern without securing the necessary capital.