StemCells: negative cash flow, lack of product revenue continue

By Lisa Kerner

Charlotte, N.C., Oct. 31 - StemCells, Inc. said it has incurred "significant operating losses" and negative cash flows since its inception, according to a form 10-Q filing with the Securities and Exchange Commission.

The company has not been profitable and may not be able to achieve or sustain profitability in the future. With limited capital resources, StemCells will need to raise additional capital from time to time to sustain its product development efforts and acquire technologies and intellectual property rights, among other activities.

Currently StemCells relies on cash balances, proceeds from equity and debt offerings, proceeds from the transfer or sale of intellectual property rights, equipment, facilities or investments, and on government grants and collaborative arrangements.

In addition, the company said it has not derived any revenues from the sale of any products, other than license revenue, and doesn't expect to receive revenues for the next several years.

StemCells is a Palo Alto, Calif., clinical-stage biotechnology company.

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