VIENNA, Va., Jan. 17 /PRNewswire-FirstCall/ -- CEL-SCI CORPORATION
(Amex: CVM) reports financial results for the fiscal year ending September
30, 2006.
CEL-SCI reports a net operating loss for fiscal year 2006 of $5,349,196
versus a net operating loss of $4,080,767 in fiscal year 2005.
During the year ended September 30, 2006, general and administrative
expenses increased by about $1,476,000. The increase was mostly due to: 1)
costs related to the restatement of the financial statements, 2) an
increase in public relations and corporate presentation expenses, 3) an
increase in filing and registration fees and 4) the employee stock option
expense required by SFAS 123R. Many of the expenses listed above are
non-cash charges.
The issuance of the Series K convertible debt in the summer of 2006
resulted in an additional charge of approximately $4,791,500. This charge
included $568,710 paid as fees to the agent, legal fees and $223,907 in
placement warrants issued to the agent. The remaining $3,998,800
(approximate) represent the immediate charge upon issuance of the
convertible debt for the fair value accounting for the debt and the
warrants. This charge is a non-cash charge. The interest expense of
$216,737 is a result of the amortization of the discount on the convertible
debt ($104,351) and actual interest paid in stock and cash ($112,386) for
the interest expense on the Series K convertible debt.
The gain on derivative instruments of approximately $2,325,800 for the
year ended September 30, 2006 was the result of several factors: 1) a
decrease in the value of the stock between the date of the issuance (August
2006) of the Series K convertible debt and September 30, 2006 resulted in
the biggest part of the gain (approximately $2,311,000), 2)
reclassification to equity of all previous derivative instruments
(approximately $13,300), and 3) expiration of the Series E warrants
(approximately $1,500). CEL-SCI's future financial statements are expected
to show significant gains and losses on derivative instruments due to the
requirement to mark the value of the convertible debt to market, as
measured by the stock price of CEL-SCI's common stock.
CEL-SCI Corporation is developing new immune system-based treatments
for cancer and infectious diseases. The Company has operations in Vienna,
Virginia and Baltimore, Maryland.
CEL-SCI CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
YEARS ENDED SEPTEMBER 30, 2006 and 2005
2006 2005
GRANT REVENUE AND OTHER $125,457 $269,925
OPERATING EXPENSES:
Research and development (excluding
R&D depreciation of $74,043 and $96,442
respectively, included below) 1,896,976 2,229,729
Depreciation and amortization 170,902 190,420
General & administrative 3,406,775 1,930,543
Total operating expenses 5,474,653 4,350,692
NET OPERATING LOSS (5,349,196) (4,080,767)
GAIN ON DERIVATIVE INSTRUMENTS 2,325,784 363,028
COSTS ASSOCIATED WITH CONVERTIBLE DEBT (4,791,548) -
OTHER INCOME - 625,472
INTEREST INCOME 92,487 52,660
INTEREST EXPENSE (216,737) -
NET LOSS BEFORE INCOME TAXES $(7,939,210) $(3,039,607)
INCOME TAX PROVISION - -
NET LOSS $(7,939,210) (3,039,607)
NET LOSS PER COMMON SHARE
BASIC $(0.10) $(0.04)
DILUTED $(0.11) $(0.05)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
BASIC 78,971,290 72,703,395
DILUTED 93,834,078 73,581,925
See notes to consolidated financial statements.
SOURCE CEL-SCI Corporation
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Related links:
http://www.cel-sci.com
CONTACT:
Gavin de Windt of CEL-SCI Corporation,
+1-703-506-9460
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