International Stem Cell Corporation (ISCO) reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, ISCO generated product sales of $2,179,000, a 10% increase from $1,973,000 in the same period of 2023. The nine-month revenue also rose to $6,639,000 from $5,900,000, marking a 13% increase. The growth in product sales was primarily driven by the biomedical market segment, which saw a notable increase in media product sales. However, the company reported no revenue from its therapeutic product candidates.

Despite the revenue growth, ISCO faced challenges in profitability. The net loss for the three months ended September 30, 2024, was $(125,000), slightly improved from a loss of $(131,000) in the prior year. For the nine months, the company reported a net loss of $(220,000), a significant decline from a net income of $327,000 in the same period of 2023. This downturn in profitability was attributed to increased operating expenses, which rose to $2,269,000 for the third quarter and $6,758,000 for the nine months, compared to $2,070,000 and $6,139,000, respectively, in the previous year.

Total current assets decreased slightly to $3,490,000 as of September 30, 2024, from $3,521,000 at the end of 2023. Total liabilities also decreased to $4,921,000 from $5,277,000, leading to an improvement in total stockholders' deficit from $(4,187,000) to $(4,041,000).

The company continues to explore various financing options to sustain operations, including debt and equity financing, license arrangements, and grants. As of September 30, 2024, ISCO had an accumulated deficit of approximately $110.7 million and reported cash of $1,307,000, down from $1,588,000 at the beginning of the period.

In terms of operational developments, ISCO operates through three segments: ISCO (therapeutic market), Lifeline Cell Technology (LCT) (biomedical market), and Lifeline Skin Care (LSC) (anti-aging market). The company has not generated revenue from its therapeutic and clinical product development, raising concerns about its financial viability and ability to continue as a going concern.

Overall, while ISCO experienced revenue growth in its product sales, the significant losses and ongoing financial challenges underscore the need for strategic financial management and capital acquisition efforts.