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CELSCISci Corp Reports Operating Results (10-Q)

May 17, 2010 | About:

10qk

18 followers
CELSCISci Corp (CVM) filed Quarterly Report for the period ended 2010-03-31.

Celscisci Corp has a market cap of $133.45 million; its shares were traded at around $0.6534 with and P/S ratio of 1647.57.

Highlight of Business Operations:

a decrease in cash of $57,092 during the six months

ended March 31, 2009. For the six months ended March 31, 2010 and 2009, cash

used in operating activities totaled $6,063,185 and $1,572,517, respectively.

For the six months ended March 31, 2010 and 2009, cash provided by financing

activities totaled $6,390,269 and $1,218,734, respectively. The repayment of the

Series K convertible notes ($365,000), financing costs ($36,248) and the

repayment of the short-term loan ($200,000) was used in financing activities

during the six months ended March 31, 2009. In addition, Mr. de Clara provided

short-term loans to the Company of $570,000. For the six months ended March 31,

2010, cash provided by financing was from the exercise of warrants and options

($6,390,269). Cash provided by investing activities was $117,170 and $296,691,

respectively, for the six months ended March 31, 2010 and 2009. The use of cash



In August 2007, the Company leased a building near Baltimore, Maryland. The

building, which consists of approximately 73,000 square feet, was remodeled in

accordance with the Company specifications so that it can be used by the Company

to manufacture Multikine for the Company's Phase III clinical trial and sales of

the drug if approved by the FDA. The lease is for a term of twenty years and

requires annual base rent payments of $1,575,000 during the first year of the

lease. The annual base rent escalates each year at 3%. The Company is also

required to pay all real and personal property taxes, insurance premiums,

maintenance expenses, repair costs and utilities. The lease allows the Company,

at its election, to extend the lease for two ten-year periods or to purchase the

building at the end of the 20-year lease. The lease required the Company to pay

$3,150,000 towards the remodeling costs, which will be recouped by reductions in

the annual base rent of $303,228 in years six through twenty of the lease. In

January 2008, the Company signed a second amendment to the lease. In accordance

with the amended lease, on February 8, 2008, the Company paid an additional

$1,295,528 toward the remodeling costs and a further $518,790 for lab equipment.

In addition, in April 2008, an additional $288,474 was paid for the completion

of the facility. The Company took possession of the manufacturing facility in

October, 2008. The Company paid an additional $32,059 in expenses to complete

the manufacturing facility during the six months ended March 31, 2010.



In December 2008, the Company was not in compliance with certain lease

requirements (i.e., failure to pay an installment of Base Annual Rent). However,

the landlord did not declare the Company formally in default under the terms of

the lease and renegotiated the lease. In January 2009, as part of an amended

lease agreement on the manufacturing facility, the Company repriced the

3,000,000 warrants issued to the landlord in July 2007 at $1.25 per share and

which were to expire on July 12, 2013. These warrants are now repriced at $0.75

per share and expire on January 26, 2014. The cost of this repricing and

extension of the warrants was $70,515. In addition, 787,500 additional warrants

were given to the landlord on the same date. The warrants are exercisable at a

price of $0.75 per share and will expire on January 26, 2014. The cost of these

warrants was $45,207. During the three months ended June 30, 2009, the Company

issued the landlord an additional 2,296,875 warrants in accordance with an

amendment to the agreement. These warrants were valued at $251,172 using the

Black Scholes method. The Company is currently in compliance with the lease and

in February 2010 received a refund of the $1,575,000 deposited with the landlord

in July 2008.



The interest expense of $79,522 for the six months ended March 31, 2010 was

interest expense on the loan from the Company's president of $82,804, offset by

the amortization of the remaining premium on the loan of ($3,282). The interest

expense of $41,402 for the three months ended March 31, 2010 was interest

expense on the loan from the Company's president. 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). The interest expense of $84,877 for the three

months ended March 31, 2009 was composed of three elements: 1) amortization of

the Series K discount ($36,902), 2) interest paid and accrued on the Series K

debt ($34,496), and 3) interest on the short term loan ($13,479).



MULTIKINE $5,389,010 $2,603,468 $3,092,676 $1,192,715



TOTAL $6,146,024 $2,658,516 $3,340,897 $1,247,763

= = = =



Read the The complete Report

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