International Stem Cell Corporation Reports Stable Sales but Increased Net Loss in Q1 2025

International Stem Cell Corporation (ISCO) reported its financial results for the first quarter of 2025, revealing total product sales of $2.1 million, consistent with the same period in 2024. The company’s revenue is primarily derived from its biomedical and anti-aging segments, with the biomedical market contributing $2 million and the anti-aging segment accounting for $134,000. Despite stable sales figures, ISCO experienced a net loss of $256,000, an increase from the $214,000 loss reported in the prior year, reflecting ongoing challenges in achieving profitability.

The company’s operating expenses for the quarter totaled $2.34 million, slightly higher than the $2.31 million recorded in the same quarter of 2024. The increase was driven by a 12% rise in the cost of sales, which reached $992,000, attributed to higher production costs associated with the biomedical segment. General and administrative expenses decreased by 2% to $892,000, while selling and marketing expenses fell by 18% to $273,000, indicating a strategic effort to manage costs amid stagnant revenue growth.

In terms of operational metrics, ISCO's cash position improved to $1.45 million as of March 31, 2025, up from $1.23 million at the end of 2024. The company reported a net cash inflow from operating activities of $227,000, a significant turnaround from the $193,000 outflow in the same period last year. This improvement was primarily due to changes in working capital, including an increase in accounts payable and a decrease in accounts receivable. However, ISCO continues to face substantial financial challenges, with an accumulated deficit of approximately $110.9 million, raising concerns about its ability to sustain operations without additional financing.

Strategically, ISCO is focused on advancing its therapeutic product development, particularly in the treatment of Parkinson's disease, traumatic brain injury, and stroke using its proprietary human parthenogenetic stem cells (hpSCs). The company is also exploring various financing options to support its research and development initiatives, as it has not yet generated revenue from its therapeutic product candidates. The management has indicated that the future capital requirements will depend on several factors, including the success of its research programs and the ability to secure additional funding.

Looking ahead, ISCO's management has expressed the need for significant additional capital to continue its operations and product development. The company is actively evaluating financing sources, including equity and debt financing, to ensure it can meet its operational needs over the next twelve months. The ongoing financial losses and the substantial accumulated deficit underscore the critical need for ISCO to secure funding to maintain its business viability and pursue its long-term strategic goals.