CELSCISci Corp (CVM, Financial) filed Quarterly Report for the period ended 2009-03-31.
CEL-SCI CORP. was formed to acquire and finance research and development of natural human interleukin-2 (``IL-2``) and lymphokine-related products and processes using the Co.'s proprietary cell culture technologies. The Co.'s proprietary product is sometimes referred to as MULTIKINEn or buffy-coat interleukins which is a combination or ``cocktail`` of IL-2 and certain lymphokines and cytokines. MULTIKINE is a trade name of Co. Since its inception the focus of the Co.'s product development efforts has been on conducting clinical trials to test its proprietary technologies. CELSCISci Corp has a market cap of $37.3 million; its shares were traded at around $0.3006 .
cash totaling $57,092 and $10,728,203, respectively. For the six months ended
March 31, 2009 and 2008, cash used in operating activities totaled $1,708,634
and $3,251,036. For the six months ended March 31, 2009 and 2008, cash provided
by financing activities totaled $1,218,734 and $180,443, respectively. Licensing
proceeds of $1,249,982 and receipt of short-term loans of $570,000 provided
funds. The repayment of convertible notes ($365,000), financing costs ($36,248)
and the repayment of the short-term loan ($200,000) were used in financing
activities during the six months ended March 31, 2009. For the six months ended
March 31, 2008, cash provided by financing was from the exercise of employee
options ($14,403). Repayment of convertible notes of $480,000 used cash in
financing activities. Cash provided by investing activities was $432,808 and
$7,657,610 was used in investing activities for the six months ended March 31,
2009 and 2008, respectively. For the six months ended March 31, 2009 and 2008,
the use of cash in investing activities consisted of purchases of equipment and
legal costs incurred in patent applications and, for the six months ended March
31, 2009, the sale of the final $200,000 in ARPs.
The Company has determined that the convertible debt holders of the Series K
Notes may require repayment of the entire remaining principal balance at any
time after August 4, 2009. This debt can be paid in stock and may not require a
cash payment. In addition, in December 2008, CEL-SCI was not in compliance with
certain lease requirements (i.e., failure to pay an installment of Base Annual
Rent). This resulted in a lease amendment pursuant to which the landlord agreed
to defer 3 months (December - February) of rent which will be paid back
incrementally from future financings. In return, the Company extended 3,000,000
warrants by one year and repriced these warrants from $1.25 to $0.75 and the
landlord was issued an additional 787,000 warrants at $0.75. Both warrants
expire on January 26, 2014. The cost of the warrants ($115,721) was accounted
for as a debit to deferred rent and a credit to additional paid-in capital. In
March 2009, the Company began paying half of the basic monthly rent while it is
negotiating for additional capital. As of March 31, 2009, the Company and the
landlord were cooperating while the Company is negotiating various financial
transactions.
During the six-month period ended March 31, 2009, general and administrative
expenses decreased by $685,044 compared to the six-month period ended March 31,
2008. This decrease was caused by the Company having extended and repriced
options during the six-month period ended March 31, 2008 of $465,008 and the
expensing of stock issued to employees in the six-month period ended March 31,
2008 of $378,350 compared to a cost of employee stock issued in prior periods
but expensed in the six-month period ended March 31, 2009 of only $81,372, a
decrease of $296,978. This decrease from March 31, 2008 to March 31, 2009 was
partially offset by higher insurance costs of approximately $16,500. During the
three-month period ended March 31, 2009, general and administrative expenses
increased slightly, $45,579, primarily because of a writeoff of abandoned
patents of approximately $17,000, an increase in insurance of approximately
$7,650 and an increase in filing fees of approximately $15,000.
The interest expense of $169,493 for the six months ended March 31, 2009 was
composed of four elements: 1) amortization of the Series K discount ($80,551),
2) interest paid and accrued on the Series K debt ($74,650), 3) margin interest
($813) , and 4) interest on the short term loan ($13,479). This is a decline of
approximately $96,000 from the six months ended March 31, 2008 because of the
lower balance of Series K debt. The corresponding amounts for the three months
ended March 31, 2009 are: 1)$36,902, 2) $34,495, 3) $-0- and 4) $13,479.
MULTIKINE $2,158,414 $1,865,345 $ 970,188 $ 956,397
L.E.A.P.S 55,048 200,684 55,048 80,666
- - - -
TOTAL $2,213,462 $2,066,029 $1,025,236 $1,037,063
= = = =
with the lease, on February 8, 2008, the Company paid an additional $1,295,528
toward the remodeling costs and a further $518,790 to pay for lab equipment. In
addition, in April 2008, an additional $288,474 was paid for the completion of
the facility. In July 2008, CEL-SCI was required to deposit the equivalent of
one year's base rent in accordance with the contract. The $1,575,000 was
required to be deposited when the amount of cash CEL-SCI had fell below the
amount stipulated in the lease. The Company took possession of the manufacturing
facility in October 2008.
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CEL-SCI CORP. was formed to acquire and finance research and development of natural human interleukin-2 (``IL-2``) and lymphokine-related products and processes using the Co.'s proprietary cell culture technologies. The Co.'s proprietary product is sometimes referred to as MULTIKINEn or buffy-coat interleukins which is a combination or ``cocktail`` of IL-2 and certain lymphokines and cytokines. MULTIKINE is a trade name of Co. Since its inception the focus of the Co.'s product development efforts has been on conducting clinical trials to test its proprietary technologies. CELSCISci Corp has a market cap of $37.3 million; its shares were traded at around $0.3006 .
Highlight of Business Operations:
During the six-month periods ended March 31, 2009 and 2008, the Company usedcash totaling $57,092 and $10,728,203, respectively. For the six months ended
March 31, 2009 and 2008, cash used in operating activities totaled $1,708,634
and $3,251,036. For the six months ended March 31, 2009 and 2008, cash provided
by financing activities totaled $1,218,734 and $180,443, respectively. Licensing
proceeds of $1,249,982 and receipt of short-term loans of $570,000 provided
funds. The repayment of convertible notes ($365,000), financing costs ($36,248)
and the repayment of the short-term loan ($200,000) were used in financing
activities during the six months ended March 31, 2009. For the six months ended
March 31, 2008, cash provided by financing was from the exercise of employee
options ($14,403). Repayment of convertible notes of $480,000 used cash in
financing activities. Cash provided by investing activities was $432,808 and
$7,657,610 was used in investing activities for the six months ended March 31,
2009 and 2008, respectively. For the six months ended March 31, 2009 and 2008,
the use of cash in investing activities consisted of purchases of equipment and
legal costs incurred in patent applications and, for the six months ended March
31, 2009, the sale of the final $200,000 in ARPs.
The Company has determined that the convertible debt holders of the Series K
Notes may require repayment of the entire remaining principal balance at any
time after August 4, 2009. This debt can be paid in stock and may not require a
cash payment. In addition, in December 2008, CEL-SCI was not in compliance with
certain lease requirements (i.e., failure to pay an installment of Base Annual
Rent). This resulted in a lease amendment pursuant to which the landlord agreed
to defer 3 months (December - February) of rent which will be paid back
incrementally from future financings. In return, the Company extended 3,000,000
warrants by one year and repriced these warrants from $1.25 to $0.75 and the
landlord was issued an additional 787,000 warrants at $0.75. Both warrants
expire on January 26, 2014. The cost of the warrants ($115,721) was accounted
for as a debit to deferred rent and a credit to additional paid-in capital. In
March 2009, the Company began paying half of the basic monthly rent while it is
negotiating for additional capital. As of March 31, 2009, the Company and the
landlord were cooperating while the Company is negotiating various financial
transactions.
During the six-month period ended March 31, 2009, general and administrative
expenses decreased by $685,044 compared to the six-month period ended March 31,
2008. This decrease was caused by the Company having extended and repriced
options during the six-month period ended March 31, 2008 of $465,008 and the
expensing of stock issued to employees in the six-month period ended March 31,
2008 of $378,350 compared to a cost of employee stock issued in prior periods
but expensed in the six-month period ended March 31, 2009 of only $81,372, a
decrease of $296,978. This decrease from March 31, 2008 to March 31, 2009 was
partially offset by higher insurance costs of approximately $16,500. During the
three-month period ended March 31, 2009, general and administrative expenses
increased slightly, $45,579, primarily because of a writeoff of abandoned
patents of approximately $17,000, an increase in insurance of approximately
$7,650 and an increase in filing fees of approximately $15,000.
The interest expense of $169,493 for the six months ended March 31, 2009 was
composed of four elements: 1) amortization of the Series K discount ($80,551),
2) interest paid and accrued on the Series K debt ($74,650), 3) margin interest
($813) , and 4) interest on the short term loan ($13,479). This is a decline of
approximately $96,000 from the six months ended March 31, 2008 because of the
lower balance of Series K debt. The corresponding amounts for the three months
ended March 31, 2009 are: 1)$36,902, 2) $34,495, 3) $-0- and 4) $13,479.
MULTIKINE $2,158,414 $1,865,345 $ 970,188 $ 956,397
L.E.A.P.S 55,048 200,684 55,048 80,666
- - - -
TOTAL $2,213,462 $2,066,029 $1,025,236 $1,037,063
= = = =
with the lease, on February 8, 2008, the Company paid an additional $1,295,528
toward the remodeling costs and a further $518,790 to pay for lab equipment. In
addition, in April 2008, an additional $288,474 was paid for the completion of
the facility. In July 2008, CEL-SCI was required to deposit the equivalent of
one year's base rent in accordance with the contract. The $1,575,000 was
required to be deposited when the amount of cash CEL-SCI had fell below the
amount stipulated in the lease. The Company took possession of the manufacturing
facility in October 2008.
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