I believe this answers the question. http://www.cell.com/cell-stem-cell/abstract/S1934-5909%2814%2900007-1 .
If I understand correctly, they tested this procedure on mice, using stem cells from each mouse’s own skin. They developed a process to alter the stem cells to mimic some of the properties of embryonic stem cells, without the negative side effects.
I don’t think they use any embryonic stem cells.
Oops. This is a different company. According to their own website, they are using embryonic stem cells. http://viacyte.com/products/vc-01-diabetes-therapy/