CELSCISci Corp (CVM, Financial) filed Quarterly Report for the period ended 2010-12-31.
Celsci Corp. has a market cap of $146.7 million; its shares were traded at around $0.7175 with and P/S ratio of 959.2. Celsci Corp. had an annual average earning growth of 10.2% over the past 5 years.
of the Phase III clinical trial for Multikine. The Company has substantial
capital for its operations and can raise another $30 million under the sales
agreement with McNicoll Lewis & Vlak, LLC (MLV) (see Note I). On December 29,
2010, the Company announced that it has commenced the Phase III clinical trial
for Multikine. The net cost to the Company of the Phase III clinical trial is
estimated to be $25 - $26 million.
During the three-month period ended December 31, 2010, the Company's cash
decreased by $5,714,472, which includes approximately $2.1 million in
prepayments for the Phase III clinical trial which the Company expects to be
used during fiscal year 2011, compared to an increase in cash of $2,473,363
during the three months ended December 31, 2009. For the three months ended
December 31, 2010 and 2009, cash used in operating activities totaled $6,434,536
and $3,678,783, respectively. For the three months ended December 31, 2010 and
2009, cash provided by financing activities totaled $749,794 and $6,157,450,
respectively. Cash used by investing activities was $29,730 and $5,304,
respectively, for the three months ended December 31, 2010 and 2009. The use of
cash in investing activities consisted primarily of purchases of equipment and
legal costs incurred in patent applications.
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
required an 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. On
January 24, 2008, a second amendment to the lease for the manufacturing facility
was signed. In accordance with the amendment, the Company was required to pay
the following: 1) an additional $518,790 for movable equipment, which increased
restricted cash, and 2) an additional $1,295,528 into the escrow account to
cover additional costs, which increased deferred rent. These funds were
transferred in early February 2008. In April 2008, an additional $288,474 was
paid toward the completion of the manufacturing facility. The Company took
possession of the manufacturing facility in October of 2008. An additional
$505,225 was paid for the completion of the work on the manufacturing facility
in October 2008. During the three months ended December 31, 2009, an additional
$32,059 was paid for final completion costs.
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 to be in default, but instead
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 which were to expire on
July 12, 2013. These warrants were 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 lease.
These warrants were issued at a price of $0.75 and will expire between March 31,
2014 and June 30, 2014. These warrants were valued at $251,172 using the Black
Scholes method. The Company is currently in compliance with the lease.
During the three months ended December 31, 2010, revenue increased by $632,818
compared to the three months ended December 31, 2009. In November 2010, the
Company received a $733,437 grant under The Patient Protection and Affordable
Care Act of 2010 (PPACA). The grant was related to three of the Company's
projects, including the Phase III trial of Multikine. The PPACA provides small
and mid-sized biotech, pharmaceutical and medical device companies with up to a
50% tax credit for investments in qualified therapeutic discoveries for tax
years 2009 and 2010, or a grant for the same amount tax-free. The tax
credit/grant program covers research and development costs from 2009 and 2010
for all "qualifying therapeutic discovery projects." The Company recognizes
revenue as the expenses are incurred. The amount of the grant earned during the
three months ended December 31, 2010 was $640,385.
Three Months Ended December 31,
2010 2009
- -
MULTIKINE $3,075,120 $2,296,333
L.E.A.P.S 189,308 508,794
- -
TOTAL $3,264,428 $2,805,127
= =
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Celsci Corp. has a market cap of $146.7 million; its shares were traded at around $0.7175 with and P/S ratio of 959.2. Celsci Corp. had an annual average earning growth of 10.2% over the past 5 years.
Highlight of Business Operations:
The Company has two partners who have agreed to participate in and pay for partof the Phase III clinical trial for Multikine. The Company has substantial
capital for its operations and can raise another $30 million under the sales
agreement with McNicoll Lewis & Vlak, LLC (MLV) (see Note I). On December 29,
2010, the Company announced that it has commenced the Phase III clinical trial
for Multikine. The net cost to the Company of the Phase III clinical trial is
estimated to be $25 - $26 million.
During the three-month period ended December 31, 2010, the Company's cash
decreased by $5,714,472, which includes approximately $2.1 million in
prepayments for the Phase III clinical trial which the Company expects to be
used during fiscal year 2011, compared to an increase in cash of $2,473,363
during the three months ended December 31, 2009. For the three months ended
December 31, 2010 and 2009, cash used in operating activities totaled $6,434,536
and $3,678,783, respectively. For the three months ended December 31, 2010 and
2009, cash provided by financing activities totaled $749,794 and $6,157,450,
respectively. Cash used by investing activities was $29,730 and $5,304,
respectively, for the three months ended December 31, 2010 and 2009. The use of
cash in investing activities consisted primarily of purchases of equipment and
legal costs incurred in patent applications.
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
required an 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. On
January 24, 2008, a second amendment to the lease for the manufacturing facility
was signed. In accordance with the amendment, the Company was required to pay
the following: 1) an additional $518,790 for movable equipment, which increased
restricted cash, and 2) an additional $1,295,528 into the escrow account to
cover additional costs, which increased deferred rent. These funds were
transferred in early February 2008. In April 2008, an additional $288,474 was
paid toward the completion of the manufacturing facility. The Company took
possession of the manufacturing facility in October of 2008. An additional
$505,225 was paid for the completion of the work on the manufacturing facility
in October 2008. During the three months ended December 31, 2009, an additional
$32,059 was paid for final completion costs.
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 to be in default, but instead
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 which were to expire on
July 12, 2013. These warrants were 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 lease.
These warrants were issued at a price of $0.75 and will expire between March 31,
2014 and June 30, 2014. These warrants were valued at $251,172 using the Black
Scholes method. The Company is currently in compliance with the lease.
During the three months ended December 31, 2010, revenue increased by $632,818
compared to the three months ended December 31, 2009. In November 2010, the
Company received a $733,437 grant under The Patient Protection and Affordable
Care Act of 2010 (PPACA). The grant was related to three of the Company's
projects, including the Phase III trial of Multikine. The PPACA provides small
and mid-sized biotech, pharmaceutical and medical device companies with up to a
50% tax credit for investments in qualified therapeutic discoveries for tax
years 2009 and 2010, or a grant for the same amount tax-free. The tax
credit/grant program covers research and development costs from 2009 and 2010
for all "qualifying therapeutic discovery projects." The Company recognizes
revenue as the expenses are incurred. The amount of the grant earned during the
three months ended December 31, 2010 was $640,385.
Three Months Ended December 31,
2010 2009
- -
MULTIKINE $3,075,120 $2,296,333
L.E.A.P.S 189,308 508,794
- -
TOTAL $3,264,428 $2,805,127
= =
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