Islet Investor Presentation Oct 2016 Global Online Growth Conference

1. Investor Presentation
May 2016

2. Safe Harbor
This presentation includes forward-looking statements that are made pursuant to the
“safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. While
these statements are made to convey to the public the company’s progress, business
opportunities and growth prospects, readers and listeners are cautioned that such
forward-looking statements represent management's opinion. Whereas management
believes such representation to be true and accurate, based on information and data
available to the company at this time, actual results may differ materially from those
described. The company's operations and business prospects are always subject to risk
and uncertainties. Important factors that may cause actual results to differ are set forth
in the company’s periodic filings with the US Securities and Exchange Commission.

3. To become the leading innovator, developer
and provider of therapeutics and diagnostics
for diabetes.
Islet Sciences - Our Mission

4. Investment Highlights
 Multi-pronged strategy focused on prevention,
early diagnosis and treatment of diabetes
 Diabetes will have an impact on over half of
Americans by 2020
 Developing state of the art diagnostic system for
early detection and intervention of diabetes -
Based on proprietary patented technologies
 Key partnerships established
 Globally recognized management including
former head of NIH

5. Experienced Management & Board
John Steel
Chairman, CEO, Director
 20+ years experience in healthcare services and biotechnology
 Former CEO of MicroIslet, Inc.
Christian Mende, M.D.
Chief Scientific Officer
 Clinical Professor of Medicine at University of California, San Diego
 Fellow of the American College of Physicians, the American Society of Hypertension, Nutrition
and Nephrology
Gary Wilder
COO, CFO
 Finance and global corporate management in the biotech, technology and a variety of other
industries
 Bachelor of Science in Business Administration from the University of Southern California
Gary Blackburn
Director
 Currently CEO of bioMeDx Advisors, a consulting firm he established in 2010. Previously Chief
Executive Officer and Director of Claremont BioSolutions from 2010 through 2015, President and
CEO of Ohmx Corporation, a protein diagnostics company, from 2005 to 2010.
 B.S. degree in Chemistry, Ph.D. in Biomedical Engineering from the University of Utah,
completed an NSF Postdoctoral Fellowship at Cornell University. Authored numerous publications
in the fields of biosensors, immunoassay detection technologies and molecular diagnostics and is
the inventor or co-inventor of more than 30 U.S. and foreign patents.
Gary Keeling
Director
 Executive Vice President of Sales & Marketing & BOD Member for Eight Medical Corporation
 BS in Economics from the University of Pittsburgh.
Gene Mannheimer, Director  Healthcare IT & Services industry at Topeka Capital Markets
 MBA in Finance from the University of Southern California and a dual BS in Economics and
Systems Engineering from The Wharton School, University of Pennsylvania and Moore School of
Electrical Engineering

6. Renowned Scientific Advisory Board
Thomas J. Kindt, PhD
Chair
 Dr. Kindt, has previously served as Chief Scientific Officer of Diomics Corp., of San Diego and
InNexus Biotechnology.
 For the past 11 years Dr. Kindt has served as an adjunct member of the Department of Biology
at the University of New Mexico and authored a major textbook on immunology.
 From 1995 to 2005, Dr. Kindt served as Director, Division of Intramural Research, NIAID, NIH,
in Bethesda, Maryland, responsible for the management of the Division including 1,300 staff
members, overseeing an annual budget of $340 Million, and 6 research facilities including
Bethesda, Rockville and Frederick, Maryland.
 Bachelor of Science in Chemistry (cum laude) from Thomas More College and Ph.D., in
BioChemistry from the University of Illinois at Urbana–Champaign.
Kevan Herold, M.D.  Professor of Immunology and Medicine at Yale University
Jerry Nadler, M.D.  Professor & Chairman of Internal Medicine and Director of the Strelitz Diabetes Center at
Eastern Virginia Medical School
 Former Chief of Endocrinology at the University of Virginia
Steven Paraskevas, M.D. Ph.D.  Transplant surgeon and Director of the Pancreas and Islet Transplant Program and of the
Human Islet Isolation Laboratory at McGill University at McGill University
Christian Mende, M.D.  Clinical Professor of Medicine at University of California, San Diego
 Fellow of the American College of Physicians, the American Society of Hypertension, Nutrition
and Nephrology

7. Strategic Partners

8. Academic & Grant Partners

9. Medical Need
 Over half of Americans will have diabetes or will be pre diabetic
by 2020 at cost to U.S. healthcare system of $3.35 trillion(1)
• ~26 million Americans currently have diabetes (2)
• 79 million Americans are estimated to have pre diabetes(2)
• >$400 B total cost of diabetes in the U.S. in 2017(2)
 ~40% of diabetics are insulin dependent(2)
• Insulin injections do not address major complications of
insulin dependence especially kidney, heart, nerve and eye
disease
(1) Source: Reuters, UnitedHealth Group, Inc., Nov. 23, 2010
(2) Source: American Diabetes Association

10. Diabetes Attacks the Body in Multiple Ways
Hyperlipidemia
Hypertension
Hyperglycemia
Insulin Resistance
Hypercoagulable State
Inflammation

11. The Islet Sciences Path to a Cure
 Early diagnosis by detecting damaged
and dying beta cells
 Prevention by protecting new insulin
producing cells from immunological attack
• Preserve insulin producing cells in
newly diagnosed patients
 Treatment by providing new insulin
producing cells
• Transplantation of encapsulated porcine
islets
• Regenerate patient’s cells
Human islet
protected by Lysofylline
Protection using Islet
Sciences alginate capsule
Novel method of
maturing viable porcine
islets

12. Initial Target Patients
 Initially targeting end-stage renal disease (ESRD)
• Diabetes is leading cause of ESRD
• Causes 44% of new ESRD cases
 100,000 new cases of ESRD reported annually
 20-40% of Type 1 diabetics develop ESRD by age 50
• In the absence of adequate treatment by dialysis
or transplantation, these patients die
 1,000,000 people currently living with kidney
transplant and diabetes

13. Early Diagnosis Through Detection of
Damaged and Dying Beta Cells

14. “A Needle in a Haystack”- Detecting β cell
DNA in the blood of prediabetic patients
With permission from Eitan Akirav PhD
β Cells
Pancreas Blood
Blood Detection

15. Current methods for measuring β cell death
Current evaluations of β cell mass rely on functional
assays (glucose tolerance test, c-peptide measurements,
glucose/insulin clamps)
β cell function may not provide a direct indication
regarding active β cells loss
Imaging of β cells/islets has proven difficult owing to
pancreas location and image resolution
Circulating β cell-derived factors may offer an
opportunity for detection of early β cell loss

16. β cell DNA is detected in primary islets and
primary insulin positive murine cells
Akirav et al., PNAS, 2011

17. Non obese Diabetic mouse is a spontaneous
model of human type 1 diabetes
DAPI Insulin CD31
NOD.SCID Prediabetic NOD Diabetic NOD
Akirav el al., Diabetes, 2011

18. Prediabetic NOD mice show a progressive
loss of glucose tolerance – NIH Funded
0
50
100
150
200
250
300
0 15 30 60
Bloodglucosemg/dL
Time (min)
7 wks 9 wks
11 wks 14 wks
Akirav et al., PNAS, 2011

19. Circulating β cell DNA increases prior to
development of hyperglycemia
Demethylationindex
7
w
eeks
9
w
eeks
11
w
eeks
14
w
eeks
D
iabetes
0.001
0.01
0.1
1
10
***
*
0 5000 10000 15000 20000
0.0
0.5
1.0
1.5
2.0
Insulin (ng/pancreas)
Demethylationindex
Akirav et al., PNAS, 2011

20. β cell death is detected in real time
Akirav and Lakey labs
0
100
200
300
400
500
600
700
0
5
10
15
20
25
30
35
Pre injection 3 h 48 h 72 h
Glucose(mg/dL)
RelativeabundanceofbetacellDNA
Noramalizetopreijection
Gulcose Beta cell DNA

21. – Novel mDNA detection of b cell death
Kevan Harold, MD, PhD
Yale University, CT

22. β cell DNA is detected in human islets and sera of
recent onset insulin dependent diabetic patients
Akirav et al., PNAS, 2011

23. Expected Milestones
 Corporate partnerships in place
 FDA Phase 2 trials underway
 Exploring accretive acquisitions

24. Protect and Preserve Insulin Producing Cells

25. Interleukin-12 : A Promising Target for Diabetes
 IL-12:
• pro-inflammatory cytokine
• important for cell mediated immune responses such as type 1
diabetes and atherosclerosis
• Uses JAK/STAT4 signaling system to induce particular genes linked
to chronic inflammatory disorders
 High glucose, Obesity and Diabetes markedly increase IL-12/STAT4
expression in key tissues
 LSF & new oral analogs block activation of IL-12/STAT4 and preserve
islet function and viability
 IL-12 is made directly in insulin producing beta cells of the pancreas
and can directly lead to reduced insulin secretion and cell death (2012
Publication)

26. LSF Reverses T1DM in NOD Mice
In Combo with Exendin-4
S.C. Medication Pump removed Day 28
N=9 mice/treatment group
Yang Z BBRC 2006 (344) 1017-1022
New grant for $250,000 from Iacocca Foundation to begin
to move this into the clinic

27. STAT-4 deficiency reduces atherosclerosis in 34 week-
old Apoe mice – Astra Zenaca/NIH Funded
female
male

28. IL-12 and Type 2 Diabetes

29. Lysofylline (LSF) Mechanism of Action
IL-12 activates key inflammatory pathway
IL-12
STAT4 STAT4
P-STAT4
Gene
expression
IL-12 receptor

30. Lysofylline (LSF)
 Small molecule that blocks inflammatory actions of cytokines that destroy
insulin-producing beta cells
 Potential lead indications include:
• Adjunct therapy for islet cell (or other cellular) transplantation to reverse
Type 1 diabetes
• Reversing or arresting progression of Type 1 diabetes, Latent Autoimmune
Diabetes of Adults (LADA) and insulin-using Type 2 diabetes
• Treatment of diabetic nephropathy and diabetic retinopathy
Human islet cell being attacked by
inflammatory cytokines
LSF protects human islet cells
attacked by inflammatory proteins

31. LSF/Piglet islet co-culture study – NIH Funded, 2014
 Piglet islets isolated and cultured for 8 days in ISM media
(37oC/5%C02), then encapsulated with 2.1% sodium alginate and
placed media with and without LSF (10 or 50um).
 Encapsulated piglet islets were then culture for an additional 48
hours and evaluated for islet recovery.
400.00
450.00
500.00
550.00
600.00
650.00
700.00
0 24 48
IsletEquivalent
Hoursin Culture
Control
10um LSF
50um LSF

32. Single dose of LSF Significantly Reduced IFNγ
IFNg
Mean and Standard Error
Column
A B
2,700
2,600
2,500
2,400
2,300
2,200
2,100
2,000
1,900
1,800
1,700
1,600
1,500
1,400
1,300
1,200
1,100
1,000
900
800
700
600
500
400
300
200
100
0
* p<0.01
Legend
A = Pre LSF Dose
B = Post 24 hour LSF Dose
*
IFNγ (Interferon gamma), a key component in the cause of Type 1
diabetes, reduced by LSF in clinical trial*
*Astra Zeneca, 2013

33. Lysofylline (LSF) Development In Process - Summary
 Two open INDs
 5 Phase I trials completed involving 51 healthy subjects
− LSF was well tolerated
− No subject experienced a serious adverse event
 CMC package to FDA
 Toxicology package for IND
 Uses for athrosclerosis, diabetes and kidney disease
 Combination LSF/GLP-1 (Glucagon-like peptide-1) underway

34. Treatment Through Transplantation of
Encapsulated Porcine Islets

35. Clear Benefits of Transplant Therapy
 Extended kidney graft
and patient survival
 Reduction of long-
term diabetes
complications
 Lower long-term
healthcare costs
 Quality of life
improvement30
40
50
60
70
80
90
100
0 1 2 3 4 5 6
Pancreas & Kidney
Transplant *
Kidney Transplant
Plus Islet Therapy
Kidney Transplant
with Ongoing DM
Dialysis with
Ongoing DM
years
*1,000 performed annually
Source: CDC, 2011

36. Improved method of pig islet isolation and maturation
Islet Sciences
Piglet Islet
Previous Porcine Islet
UC, NIH and JGRF, 2014

37. Diabetic C57BL/6 Mice Transplant
3,000 Encapsulated Islets (IEQ) – NIH, 2014
0
100
200
300
400
500
600
-6 7 20 33 46 60
BloodGlucose(mg/dL)
Days Post Transplant (Days)
STZ
Txp
x x x x x
Average Insulin: Green Line, 1X = 1U Insulin
x
No Immunosuppression

38. 2016 Expected Milestones
Develop Islet Sciences Infusion therapy for insulin
dependent patients with end stage renal disease (ESRD)
Establish infrastructure to provide scale and logistics for
clinical trials and commercialization
Develop LSF to block autoimmune damage to insulin-
producing cells
mDNA assay for detection/management of diabetes
Expand development and commercialization partnerships
Selectively acquire and develop complementary
technologies

39. Consolidated Balance Sheet
January 31, 2015 April 30, 2014
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash $23,938 $1,141
Prepaid expenses 14,098 700
Security deposits 21,761 -
Total current assets 59,797 1,142,080
OTHER ASSETS
Fixed assets, net 5,284 -
Intangible asset (Note 3) 1,367,000 1,367,000
Goodwill (Note 3) 2,111,107 2,111,107
Total other assets 3,483,391 3,478,107
TOTAL ASSETS $3,543,188 $4,620,187
LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable $3,536,284 $3,271,174
Accrued expenses 65,805 -
Accrued stock compensation expenses (Note 4) 142,177 433,346
Notes payable - related parties 53,212 91,641
Total current liabilities 3,797,478 3,796,161
Deferred income taxes 547,000 547,000
Total liabilities 4,344,478 4,343,161
Commitments and Contingencies (Note 5)
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding at January 31, 2015 and April 30, 2014
- -
Common stock, $0.001 par value, 100,000,000 shares authorized; 66,928,724 and 67,516,253 shares issued and outstanding at January 31, 2015 and April 30, 2014, respectively
66,929 67,517
Additional paid-in capital 21,053,550 20,598,242
Accumulated deficit (21,921,769) (20,388,733)
Total stockholders' equity (deficit) (801,290) 277,026
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)$ 3,543,188 $4,620,187

40. Key Takeaways
 Multi-pronged strategy focused on prevention, early
diagnosis and treatment of diabetes
 Diabetes will have an impact on over half of Americans
by 2020
 Developing state of the art diagnostic system for early
detection and intervention of diabetes
− Based on proprietary patented technologies
 Key partnerships established
 Globally recognized management including former head
of NIH

41. Thank you for your attention!