CELSCISci Corp Reports Operating Results (10-K)
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
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.
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