8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): January 13, 2022

INTERNATIONAL STEM CELL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	000-51891	20-4494098
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

9745 Businesspark Ave, San Diego, California 92131

(Address of principal executive offices, including zip code)

(760) 940-6383

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CAR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	N/A	N/A

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 1.01 Entry into a Material Definitive Agreement

On January 13, 2022, to obtain funding for working capital purposes, International Stem Cell Corporation (the "Company”) issued an unsecured, non-convertible promissory note in the principal amount of $2,900,000 (the "2022 Promissory Note”) to Dr. Andrey Semechkin (the "Noteholder”). On March 5, 2021, the Company issued a promissory note to the Noteholder in the principal amount of $2,650,000 (“Original Note”). On January 13, 2022 the Noteholder provided an additional $250,000 of funds to the Company and surrendered the Original Note, in return for the 2022 Promissory Note.

Dr. Semechkin is the Company’s Co-Chairman and Chief Executive Officer. The outstanding principal amount under the 2022 Promissory Note accrues interest at a rate of four and a half percent (4.5%) per annum. The 2022 Promissory Note is due and payable March 15, 2022, but may be pre-paid by the Company without penalty at any time.

The foregoing summary of the 2022 Promissory Note is qualified in its entirety by reference to the full text of the Form of Note filed as Exhibit 10.1 to this Current Report on Form 8-K.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of the Registrant

The information disclosed in Item 1.01 is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

Exhibit	Description
10.1	Form of Note issued on January 13, 2022
104*	Cover Page Interactive Data File (embedded within the Inline XBRL document)
* Filed herewith

Signature(s)

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	INTERNATIONAL STEM CELL CORPORATION
Date: January 13, 2022	By:	/s/ Sophia Garnette
		Sophia Garnette
		VP Legal Affairs and Operations

EX-10.1

Exhibit 10.1

INTERNATIONAL STEM CELL CORPORATION

PROMISSORY NOTE

FOR VALUE RECEIVED, and subject to the terms and conditions set forth herein, on this 13th day of January, 2022 (the “Issuance Date”), International Stem Cell Corporation, a Delaware corporation, with offices located at 9745 Businesspark Ave, San Diego, CA (the “Borrower”), hereby unconditionally promises to pay to the order ofAndrey Semechkin or his assigns (the “Noteholder”), the principal amount of two million and nine hundred thousand U.S. dollars ($2,900,000) (the “Loan”), together with all accrued interest thereon, as provided in this Promissory Note (the “Note”).

WHEREAS, on March 5, 2021 the Noteholder was issued a Promissory Note in the principal amount of two million six hundred and fifty thousand U.S. dollars($2,650,000) by the Borrower (the “Original Note”);

WHEREAS, on January 13, 2022 the Noteholder provided an additional two hundred and fifty thousand U.S. dollars ($250,000)of funds to the Borrower and surrendered the Original Note, in return for which this Note was issued.

1.Loan Terms; Prepayment

1.1Total Outstanding Principal. As of the date of this Note, the total principal amount outstanding shall equal to two million nine hundred thousand U.S. dollars ($2,900,000).

1.2Final Payment Date. The aggregate unpaid principal amount of the Loan and all accrued and unpaid interest, together with all accrued and unpaid interest payable on the Original Note and any predecessor notes, shall be due and payable on March 15, 2022 (the “Maturity Date”).

1.3Optional Prepayment. The Borrower may prepay the Loan in whole or in part at any time or from time to time without penalty or premium by paying the principal amount to be prepaid together with accrued interest thereon to the date of prepayment.

2.Interest.

2.1Interest Rate. The outstanding principal amount of the Loan made hereunder shall bear interest at the annual rate of 4.5% from the Issuance Date of this Note until the Loan is paid in full, whether at maturity, by prepayment or otherwise.

2.2Interest Payment Dates. Interest shall be payable on maturity, or earlier with respect to any prepayment.

2.3Computation of Interest. All computations of interest shall be made on the basis of a year of 360 days and the actual number of days elapsed. Interest shall begin to accrue on the Loan on the Issuance Date, and shall not accrue on any portion of the Loan (including all of the Loan if so paid) for the day on which such portion of the Loan is paid in full, whether at maturity, by prepayment, or otherwise.

DRAFT

 

2.4Interest Rate Limitation. If at any time and for any reason whatsoever, the interest rate payable on the Loan shall exceed the maximum rate of interest permitted to be charged by the Noteholder to the Borrower under applicable law, such interest rate shall be reduced automatically to the maximum rate of interest permitted to be charged under applicable law, and that portion of any sum paid attributable to that portion of such interest rate that exceeds the maximum rate of interest permitted by applicable law shall be deemed a voluntary prepayment of principal.

3.Payment Mechanics

3.1All payments of principal and interest shall be made in lawful money of the United States of America by check or by wire transfer of immediately available funds to the Noteholder’s account at a bank specified by the Noteholder in writing to the Borrower from time to time.

4.Standard Provisions

4.1Governing Law. This Note and any claim, controversy, dispute or cause of action based upon, arising out of or relating to this Note, and the transactions contemplated hereby, shall be governed by the laws of the State of California.

4.2Counterparts. This Note may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the Borrower has executed this Note as of the Issuance Date written above.

               BORROWER              NOTEHOLDER

International Stem Cell Corporation           Andrey Semechkin

SignatureSignature

Sophia D. Garnette

VP Legal Affairs & Operations

XML

Document and Entity Information	Jan. 13, 2022
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jan. 13, 2022
Entity Registrant Name	INTERNATIONAL STEM CELL CORPORATION
Entity Central Index Key	0001355790
Entity Emerging Growth Company	false
Entity File Number	000-51891
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-4494098
Entity Address, Address Line One	9745 Businesspark Ave
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92131
City Area Code	760
Local Phone Number	940-6383
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false