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CELSCISci Corp Reports Operating Results (10-K)

January 13, 2010 | About:
10qk

10qk

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CELSCISci Corp (CVM) filed Annual Report for the period ended 2009-09-30.

Celscisci Corp has a market cap of $161.4 million; its shares were traded at around $0.99 .

Highlight of Business Operations:

Since 1983, and through September 30, 2009, approximately $65,331,400 has

been spent on CEL-SCI-sponsored research and development, including $6,011,750,

$4,101,600, and $2,529,000 respectively during the years ended September 30,

2009, 2008 and 2007.



In December 2008, CEL-SCI entered into an equity line of credit agreement

with Ascendiant Capital Group, LLC in order to establish a possible source of

funding for CEL-SCI. The equity line of credit agreement establishes what is

sometimes referred to as an equity drawdown facility. Although Ascendiant, under

the equity line of credit agreement, has agreed to provide CEL-SCI with up to

$5,000,000 of funding prior to January 6, 2011, there is no guarantee that

Ascendiant will be able to provide the full $5,000,000 of funding if required by

CEL-SCI.



During fiscal year 2009, CEL-SCI raised gross proceeds from investors

exceeding $39 million through equity financings and conversion of warrants and

received an additional $1.25 million in equity investments from partners.



In accordance with the terms of the manufacturing facility's lease,

CEL-SCI must maintain a certain amount of cash. Should CEL-SCI's cash position

fall below the amount stipulated in the lease CEL-SCI would be required to

deposit with the landlord the equivalent of one year's base rent. CEL-SCI paid

this additional amount of $1,575,000 in 2008 and has the opportunity to recoup

this deposit once its cash balance reaches a certain level. That level has been

reached and will likely be maintained through December 31, at which time CEL-SCI

expects to receive the additional amount of $1,575,000 back from the landlord.

The landlord has the right to declare CEL-SCI in default if CEL-SCI fails to pay

any installment of the base rent when such failure continues for a period of 5

business days after CEL-SCI's receipt of written notice from the landlord,

provided that if CEL-SCI fails to pay any of the foregoing within five business

days more than two times in any twelve-month period during the lease, the

landlord will not be required to provide CEL-SCI with any further notice and

CEL-SCI will be deemed to be in default. As of the date of this filing, CEL-SCI

was not in default on the lease.



Read the The complete Report

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10qk
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