ras@intlstemcell.com

INTERNATIONAL STEM CELL CORPORATION AND SUBSIDIARIES (A Developmental Stage Company) Consolidated Balance Sheets (in thousands, except share data)
				December 31,
				2011											2010
Assets
Current assets
Cash and cash equivalents				$	1,337										$	5,782
Accounts receivable					140											739
Inventory, net					1,268											856
Prepaid assets					274											228
Total current assets					3,019											7,605
Property and equipment, net					1,420											1,296
Intangible assets, net					1,282											986
Deposits and other assets					16											40
Total assets				$	5,737										$	9,927
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable				$	885										$	583
Accrued liabilities					752											545
Deferred revenue					189											760
Convertible debt and advances					250											250
Warrants to purchase common stock					38											2,400
Total liabilities					2,114											4,538
Stockholders' Equity
Series D Preferred stock, $0.001 par value 50 shares authorized, 43 issued and outstanding for 2011 and 2010					-											-
Series A Preferred stock, $0.001 par value 5,000,000 shares authorized, 500,000 issued and outstanding for 2011 and 2010, liquidation preferences of $615,000 and $585,000 in 2011 and 2010, respectively					1											1
Series B Preferred stock, $0.001 par value 5,000,000 shares authorized, 300,000 issued and outstanding for 2011 and 2010, liquidation preferences of $367,000 and $349,000 in 2011 and 2010, respectively					0											0
Series C Preferred stock, $0.001 par value 3,000,000 shares authorized, 2,000,000 issued and outstanding for 2011 and 2010, liquidation preferences of $2,387,000 and $2,267,000 in 2011 and 2010, respectively					2											2
Common stock, $0.001 par value 200,000,000 shares authorized, 80,036,315 and 74,771,107 issued and outstanding for 2011 and 2010, respectively					80											75
Subscription receivable on common stock					-											(5	)
Additional paid-in capital					63,995											56,170
Deficit accumulated during the development stage					(60,455	)										(50,854	)
Total stockholders' equity					3,623											5,389
Total liabilities and stockholders' equity				$	5,737										$	9,927

See accompanying notes to consolidated financial statements

INTERNATIONAL STEM CELL CORPORATION AND SUBSIDIARIES (A Developmental Stage Company) Consolidated Statements of Operations (in thousands, except per share data)
				Year Ended December 31,																Inception (August 17, 2001) through December 31, 2011
				2011								2010
Product sales				$	4,532							$	1,568							$	7,631
Royalties and license					-								-								135
Total revenue					4,532								1,568								7,766
Development expenses
Cost of sales					1,618								725								3,334
Research and development					4,434								3,374								18,294
Marketing					1,475								860								3,874
General and administrative					8,360								7,071								31,684
Total development expenses					15,887								12,030								57,186
Loss from development activities					(11,355	)							(10,462	)							(49,420	)
Other income (expense)
Settlement with related company					-								-								(93	)
Miscellaneous					(163	)							(26	)							(180	)
Dividend and interest income					1								28								94
Interest expense					-								(14	)							(2,225	)
Change in market value of warrants					2,335								(2,501	)							(1,395	)
Sublease income					11								252								309
Total other income (expense)					2,184								(2,261	)							(3,490	)
Loss before income taxes					(9,171	)							(12,723	)							(52,910	)
Provision for income taxes					-								-								7
Net loss				$	(9,171	)						$	(12,723	)						$	(52,917	)
Dividend on preferred stock					(430	)							(1,561	)							(7,968	)
Net loss applicable to common stockholders				$	(9,601	)						$	(14,284	)						$	(60,885	)
Net loss per common share-basic and diluted				$	(0.12	)						$	(0.21	)							n/a
Weighted average shares-basic and diluted					77,320								68,762								n/a

See accompanying notes to consolidated financial statements

International Stem Cell Corporation
Linh Nguyen, CFO
760-940-6383
lnguyen@intlstemcell.com
or
Dr. Ruslan Semechkin, Vice President
760-940-6383
ras@intlstemcell.com

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The Vatican has cancelled a controversial scientific conference that would have featured scientists, including the president of the California stem cell agency, who support human embryonic stem cell research.

The conference reportedly created a "scandal" in the Vatican, according to a report by David Kerr of the Catholic News Agency. Kerr wrote,

"'I am infinitely relieved that the Church has avoided a major blunder which would have confused the faithful for decades to come,'” said one member of the Pontifical Academy who asked for anonymity in commenting to (the Catholic News Agency)."

The Catholic church opposes hESC research because of its belief that it destroys human life.

The conference would have taken place at the Vatican April 25-28 and included an audience with the pope. In addition to an appearance by CIRM's Alan Trounson, the key lecture was scheduled to have been given by George Daley of Harvard.

Kerr quoted the member of the Vactican's Pontifical Academy for Life as saying,

"The Holy Spirit has certainly shown to be present through those faithful members who drew attention to the ambiguity of the choice of speakers. I hope and pray that a review will be affected of the basis on which these congresses are planned."

Kerr also quoted another anonymous member of the academy as saying that the presence of speakers such as Trounson and Daley was "a betrayal of the mission of the academy and a public scandal."

Source:
http://californiastemcellreport.blogspot.com/feeds/posts/default?alt=rss

The California Stem Cell Report is concluding its coverage today of the meeting of the governing board of the directors meeting of the California stem cell agency.

No decisions were made on the general direction of future funding -- basic research and training vs development of therapies. Some of the directors differed sharply on the issues, however. We will have more on this subject later.

Here are slides from the presentation on the progress report on the agency's $230 million disease team round. One $19 million grant was cancelled.
Progress Report: Disease Team Grants by California Stem Cell Agency

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A California stem cell researcher, who must remain anonymous, made the following emailed comment today on the progress report on the $230 million in disease team grants from the California stem cell agency and termination of a $19 million grant.

"I'm impressed that CIRM is following through on monitoring the huge disease team grants and has actually curtailed the funding of one that didn't meet a key milestone. I hope that makes the other grant holders nervous! Too many scientists (in my humble opinion) forget that they need to do what they said they'd do- or - if the first plan fails, have the expertise and desire to adapt and find another way to reach the goals."

Source:
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The $3 billion California stem cell agency announced today that it has hired Kevin McCormack, currently media relations manager at California Pacific Medical Center in San Francisco, as its new director of communications.

CIRM Chairman Jonathan Thomas told the agency's directors at their meeting this morning in Sacramento that the appointment comes "not a moment too soon." Thomas told directors last June that the agency was engaged in a "communications war." Directors have been concerned about the lack of media coverage of the agency, which is largely below the radar of the mainstream media.

Thomas said that McCormack has "lots of experience" in media crisis management and "pressure cooker situations."

McCormack also served as media relations manager, Division of Research at Kaiser Permanente, and was a health/medical producer at KRON-TV in San Francisco.

The agency did not immediately release McCormack's salary. He will begin work April 2.

Source:
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