VIENNA, Va., Feb. 14 /PRNewswire-FirstCall/ -- CEL-SCI CORPORATION announces that it is publishing preliminary financial results for the quarter ending December 31, 2005. The reason the quarterly financials are preliminary is because CEL-SCI is working on a restatement of prior years financials. CEL-SCI expects to file its 10-K for the fiscal year ending September 30, 2005 by March 20, 2006 and will file its 10-Q report for the three months ended December 31, 2005 as soon as possible thereafter. CEL-SCI's inability to file was a result of a review by our current auditors of prior financings between 2001 and 2003 and whether they should have been accounted for under Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities, ("FAS 133") and under Emerging Issues Task Force Issue No. 00-19, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company's Own Stock, ("EITF 00-19").
All of the restatements are of a non-cash nature and do not affect CEL- SCI's cash position. CEL-SCI is working to complete its evaluation of the transactions in question. Although CEL-SCI has not completed its evaluation, it has tentatively concluded that these instruments contain derivatives or embedded derivatives which will need to be accounted for under FAS 133 and EITF 00-19. Simplistically, these instruments should be accounted for as liabilities and marked-to-market at the end of each reporting period until certain conditions have been met, the instruments expire, or the instruments are converted to equity. When such instruments no longer require mark-to- market accounting, such instruments will be reclassified from a liability to equity. During the quarter ended December 31, 2005 CEL-SCI believes that it had outstanding warrants which would be classified as liabilities under EITF 00-19, however at this point CEL-SCI cannot account for them since they have not yet been valued.
As an indication of its results during the first quarter of fiscal 2006, CEL-SCI is publishing preliminary financial statements. These statements are unaudited and preliminary, have not been reviewed by our auditors, and are subject to change.
Preliminary, Unaudited Balance Sheet for Quarter Ended December 31, 2005 CEL-SCI CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) ASSETS December 31, 2005 CURRENT ASSETS: Cash and cash equivalents $1,885,627 Interest and other receivables 15,488 Prepaid expenses and laboratory supplies 419,902 Deferred Financing Costs 5,000 Total current assets 2,326,017 RESEARCH AND OFFICE EQUIPMENT- Less accumulated depreciation of $1,714,748 and $1,690,788 157,651 PATENT COSTS- less accumulated amortization of $835,354 and $816,169 477,479 DEPOSITS 14,828 TOTAL ASSETS $2,975,975 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $133,283 Accrued expenses 77,390 Due to employees 22,692 Total current liabilities 233,365 Deposits held 3,000 Total liabilities 236,365 Total stockholders' equity 2,739,610 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,975,975 CEL-SCI CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended December 31, 2005 REVENUES: Grant revenue and other $29,847 EXPENSES: Research and development 434,890 Depreciation and amortization 43,790 General and administrative 521,076 Total Operating Expenses 999,756 NET OPERATING LOSS (969,909) INTEREST INCOME 11,404 NET LOSS $(958,505) NET LOSS PER COMMON SHARE (BASIC) $(0.01) NET LOSS PER COMMON SHARE (DILUTED) $(0.01) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 74,998,621
When used in this report, the words "intends," "believes," "anticipated" 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/A for the year ended September 30, 2004. 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 CorporationCONTACT: Company: Gavin de Windt of CEL-SCI Corporation, +1-703-506-9460,or Investor Relations: Mike Lucci of Lucci Financial Group, LLC,+1-248-723-3330
Web site: http://www.cel-sci.com//
