CEL-SCI Corporation Reports Third Quarter 2012 Financial Results

CEL-SCI Corporation (NYSE MKT: CVM) announced today financial results for the fiscal quarter ended June 30, 2012.

CEL-SCI reported that net loss available to common shareholders for the quarter ended June 30, 2012 was $(835,446) versus $(3,114,255) during the same quarter ended June 30, 2011. The loss during the quarter ended June 30, 2012 was reduced because of the increased gain on derivative instruments and an overall reduction in operating expenses versus the quarter ended June 30, 2011. Net loss per common share, (basic) was $(0.00) for the quarter ended June 30, 2012 versus $(0.01) during the same quarter ended June 30, 2011. The operating loss for the quarter ended June 30, 2012 was $(4,213,098) versus $(4,845,744) during the same quarter ended June 30, 2011. Net loss available to common shareholders for the nine months ended June 30, 2012 was $(15,079,238) versus $(24,463,180) during the same nine months ended June 30, 2011. Net loss per common share, (basic) was $(0.06) for the nine months ended June 30, 2012 versus $($0.12) during the same nine months ended June 30, 2011. The operating loss for the nine months ended June 30, 2012 was $(12,918,731) versus $(14,258,774) during the same nine months ended June 30, 2011.

R&D expenses for the quarter ended June 30, 2012 totaled $2,469,166 versus R&D expenses of $2,924,771 for the quarter ended June 30, 2011. R&D expenses for the nine months ended June 30, 2012 totaled $7,519,586 versus R&D expenses of $9,231,296 for the nine months ended June 30, 2011. R&D expenses related to the running of the Company’s Phase III clinical trial declined because of lower Multikine manufacturing expenditures and the reduction in site initiation expenses since most clinical sites were already initiated prior to the quarter ending June 30, 2012.

"Our Phase III study is continuing to enroll patients on a continuous basis on three continents around the world. We recently presented CEL-SCI and the Multikine head and neck cancer Phase III study at the 8 th International Head and Neck Cancer conference in Toronto, Canada and interest was high among clinical investigators in joining our study. We continue to believe that adding our Multikine immunotherapy to the existing head and neck cancer treatments will create a new paradigm for the treatment of head and neck cancer," said Geert Kersten, CEO of CEL-SCI Corporation.

About CEL-SCI Corporation

CEL-SCI is dedicated to research and development directed at improving the treatment of cancer and other diseases by utilizing the immune system, the body's natural defense system. Its lead investigational therapy is Multikine (Leukocyte Interleukin, Injection), currently being studied in a pivotal global Phase III clinical trial. CEL-SCI is also developing (and investigating) an immunotherapy (LEAPS-H1N1-DC) as a possible treatment for H1N1 hospitalized patients and as a vaccine (CEL-2000) for Rheumatoid Arthritis using its LEAPS technology platform. The LEAPS drug candidates are currently in preclinical testing. The investigational immunotherapy LEAPS-H1N1-DC treatment involves non-changing regions of H1N1 Pandemic Flu, Avian Flu (H5N1), and the Spanish Flu, as CEL-SCI scientists are very concerned about the possible emergence of a new more virulent hybrid virus through the combination of H1N1 and Avian Flu, or maybe Spanish Flu. The Company has operations in Vienna, Virginia, and in/near Baltimore, Maryland.

For more information, please visit www.cel-sci.com.

Multikine is the trademark that CEL-SCI has registered for this investigational therapy, and this proprietary name is subject to FDA review in connection with our future anticipated regulatory submission for approval. Multikine has not been licensed or approved for sale, barter or exchange by the FDA or any other regulatory agency. Similarly, its safety or efficacy has not been established for any use. Moreover, no definitive conclusions can be drawn from the early-phase, clinical-trials data involving the investigational therapy Multikine (Leukocyte Interleukin, Injection). Further research is required, and early-phase clinical trial results must be confirmed in the well-controlled, Phase III clinical trial of this investigational therapy that is currently in progress.

When used in this report, the words "intends," "believes," "anticipated", “plans” and "expects" and similar expressions are intended to identify forward-looking statements. Such statements are subject to risks and uncertainties which could cause actual results to differ materially from those projected. Factors that could cause or contribute to such differences include, an inability to duplicate the clinical results demonstrated in clinical studies, timely development of any potential products that can be shown to be safe and effective, receiving necessary regulatory approvals, difficulties in manufacturing any of the Company's potential products, inability to raise the necessary capital and the risk factors set forth from time to time in CEL-SCI Corporation's SEC filings, including but not limited to its report on Form 10- K for the year ended September 30, 2011. The Company undertakes no obligation to publicly release the result of any revision to these forward-looking statements which may be made to reflect the events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
 
CEL-SCI CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2012 AND 2011
(UNAUDITED)
 
 
      2012       2011
 
GRANT INCOME AND OTHER $ 35,000 $ 77,403
 
OPERATING EXPENSES:

Research and development (excluding R&D depreciation of $109,867 and $123,519 respectively, included below)
2,469,166 2,924,771
Depreciation and amortization 109,718 148,148
General & administrative   1,669,214     1,850,228  
 
Total operating expenses   4,248,098     4,923,147  
 
OPERATING LOSS (4,213,098 ) (4,845,744 )
 
GAIN ON DERIVATIVE INSTRUMENTS 3,390,389 1,763,311
 
INTEREST INCOME 28,665 34,416
 
INTEREST EXPENSE   (41,402 )   (66,238 )
 
NET LOSS   (835,446 )   (3,114,255 )
 
 
NET LOSS AVAILABLE TO COMMON SHAREHOLDERS $ (835,446 ) $ (3,114,255 )
 
NET LOSS PER COMMON SHARE
BASIC $ (0.00 ) $ (0.01 )
DILUTED $ (0.00 ) $ (0.02 )
 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
BASIC 258,467,582 208,402,408
DILUTED 258,467,582 208,402,408
 
 
CEL-SCI CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
NINE MONTHS ENDED JUNE 30, 2012 AND 2011
(UNAUDITED)
 
 
      2012       2011
 
GRANT INCOME AND OTHER $ 146,567 $ 784,036
 
OPERATING EXPENSES:

Research and development (excluding R&D depreciation of $338,350 and $359,343 respectively, included below)
7,519,586 9,231,296
Depreciation and amortization 391,571 434,436
General & administrative   5,154,141     5,377,078  
 
Total operating expenses   13,065,298     15,042,810  
 
OPERATING LOSS (12,918,731 ) (14,258,774 )
 
OTHER EXPENSES - (12,000,000 )
 
GAIN ON DERIVATIVE INSTRUMENTS 142,532 2,879,003
 
INTEREST INCOME 86,393 134,002
 
INTEREST EXPENSE   (220,812 )   (149,042 )
 
NET LOSS (12,910,618 ) (23,394,811 )
 
ISSUANCE OF ADDITIONAL SHARES DUE TO RESET PROVISIONS (250,000 ) -
MODIFICATION OF WARRANTS (325,620 ) (1,068,369 )
INDUCEMENT WARRANTS   (1,593,000 )   -  
 
NET LOSS AVAILABLE TO COMMON SHAREHOLDERS $ (15,079,238 ) $ (24,463,180 )
 
NET LOSS PER COMMON SHARE
BASIC $ (0.06 ) $ (0.12 )
DILUTED $ (0.06 ) $ (0.12 )
 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
BASIC 244,738,972 206,860,979
DILUTED 244,738,972 206,860,979
 

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