International Stem Cell Corporation

What they do

ISCO develops therapeutic products based on proprietary human parthenogenetic stem cells (hpSCs), focusing on neural stem cells (ISC-hpNSC) for Parkinson's disease, traumatic brain injury, and stroke. The company has two commercial businesses—anti-aging and research products—that generate all current revenue, while its therapeutic programs are in clinical/preclinical development with no product revenue.

Revenue drivers

• Anti-aging products — One of two commercial businesses; together with research products generated $9.1 million in 2025 and $9.1 million in 2024.
• Research products — Commercial business selling stem cell lines and related products; contributes the other half of total revenue.

Recent performance

Total revenue for 2025 was $9.1 million, flat versus 2024. Net loss widened to $418,000 in 2025 from $209,000 in 2024, and operating cash flow turned to $8,000 from $13,000. Quarterly revenue rose to $2.7 million in Q2 2026 (June 30, 2026), up from $2.3 million in Q1 2026. As of June 30, 2026, cash stood at $1.1 million, total assets $5.1 million, liabilities $5.0 million, and shareholder equity was negative $4.2 million.

Strategy

ISCO is advancing its lead neural stem cell program for Parkinson's disease, with a completed Phase 1 trial and full results expected in the second half of 2026. The company also has preclinical programs for stroke (in collaboration with Tulane University) and traumatic brain injury. Management is pursuing a transaction to sell 100% of LCT to ATCC, which would provide capital but is subject to closing conditions. The company continues to generate revenue from its two commercial businesses to support operations.

Risks

• Going concern — Independent auditors have expressed substantial doubt about the company's ability to continue as a going concern, and shareholder equity is negative $4.2 million.
• Transaction close risk — The sale of LCT to ATCC may not close on time or at all due to numerous closing conditions, including SEC review and termination provisions.
• Clinical development risk — Therapeutic product candidates require extensive preclinical and clinical development, and may not gain regulatory approval or be commercialized.
• Capital needs — The company will need additional capital to conduct operations and develop products, and has a history of operating losses with no expectation of near-term profitability.

Outlook

Management expects to announce full Phase 1 clinical trial results for ISC-hpNSC in Parkinson's disease in the second half of 2026. The company is also pursuing the LCT sale to ATCC, which if completed would provide a purchase price. However, management notes the business is at an early stage and there is no assurance of successful product commercialization or transaction completion.