CEL-SCI Corporation (NYSE AMEX: CVM) reported financial results today for the fiscal year ended September 30, 2011.
CEL-SCI’s net loss available to common shareholders for the fiscal year 2011 was ($26.8) million, or ($0.13) per share, versus an income of $8.9 million, or $0.04 per share for the fiscal 2010 year. CEL-SCI reported an operating loss of ($17,986,000) in fiscal year 2011 versus an operating loss of ($18,560,000) in fiscal year 2010. The change in net income available to common shareholders in fiscal year 2011 was primarily due to a reduction of the gain on derivative instruments of $24.4 million from 2010, and a $12 million one-time expense for the settlement of a lawsuit.
The operating loss included research and development (R&D) expenses of $11.7 million in fiscal 2011 compared to $11.9 million in fiscal 2010. R&D expenses remained constant due to the costs associated with the Company’s ongoing Phase III clinical trial of its investigational cancer therapy, Multikine ® (Leukocyte Interleukin, Injection)*. The report by the Company’s accountants also contained an explanatory paragraph referring to its recurring losses from operations and expressing substantial doubt in the Company’s ability to continue as a going concern. This means that based upon only the existing and committed amount of cash in CEL-SCI today, not taking into consideration management’s ability to raise additional capital, the accountants cannot be sure that CEL-SCI will have enough cash to continue its operations until December 2012. As is clearly explained in the Company’s annual report filing, CEL-SCI’s management is aware of this, expected to receive this and has plans in place. The last time CEL-SCI received this explanatory paragraph was in January 2009. During 2009 CEL-SCI raised in excess of $40 million in equity capital.
Geert Kersten, Chief Executive Officer said, “Our Phase III clinical trial for our investigational cancer drug Multikine is enrolling patients on 3 continents. We plan to further expand this study in 2012 since we are pleased with its progress so far.”