CELSCISci Corp (CVM, Financial) filed Amended Quarterly Report for the period ended 2009-06-30.
Celscisci Corp has a market cap of $113.24 million; its shares were traded at around $0.6948 with and P/S ratio of 1398.04.
cash totaling $4,860,153 and used cash of $7,831,579, respectively. For the nine
months ended June 30, 2009 and 2008, cash used in operating activities totaled
$2,539,239 and $4,688,724. For the nine months ended June 30, 2009 and 2008,
cash was provided by financing activities totaled $6,985,892 and cash was used
by financing activities of $750,597, respectively. Licensing proceeds of
$1,249,981 and receipt of short-term loans of $1,060,000 provided funds, as did
the June 2009 financing ($5,845,241). The repayment of convertible notes
($630,000), financing costs ($339,330) and the repayment of the short-term loan
($200,000) were used in financing activities during the nine months ended June
30, 2009. For the nine months ended June 30, 2008, cash provided by financing
was from the exercise of employee options ($14,403)and a short-term loan
($656,340). Repayment of convertible notes of $765,000 and repayment of the
short-term loan ($656,340) used cash in financing activities. For the nine
months ended June 30, 2009, cash provided by investing activities was $413,500.
For the nine months ended June 30, 2008, $2,392,258 was used in investing
activities. For the nine months ended June 30, 2009 and 2008, the use of cash in
investing activities consisted of purchases of equipment and legal costs
incurred in patent applications, the use of restricted cash and, for the nine
months ended June 30, 2009, the sale of the final $200,000 in ARPs.
In December 2008, the Company was not in compliance with certain lease
requirements (i.e., failure to pay an installment of Base Annual Rent), which
has, however, been cured. This resulted in a lease amendment pursuant to which
the landlord agreed to defer three months (December - February) of rent which
was to be paid back incrementally from future financings. In return, the Company
extended 3,000,000 warrants by one year, repriced these warrants from $1.25 to
$0.75 and issued to the landlord an additional 787,000 warrants at $0.75. The
cost of $115,721 was accounted for as a debit to deferred rent and a credit to
additional paid-in capital. Both warrants expire on January 26, 2014. During the
quarter ended June 30, 2009, the landlord was issued an additional 2,296,875
warrants in accordance with an amendment to the lease. The cost of these new
warrants ($251,172) was accounted for as a debit to deferred rent and a credit
to additional paid-in capital. In March 2009, the Company began paying half of
the basic monthly rent while it negotiated for additional capital. On July 1,
2009, the Company paid all back rent to the landlord and is therefore not
obligated to issue additional warrants to the landlord.
During the nine-month period ended June 30, 2009, general and administrative
expenses increased by $84,064 compared to the nine-month period ended June 30,
2008. This increase was caused primarily by the write off of abandoned patents
of $138,525, offset by a decrease in shareholder expenses of approximately
$81,000. During the three-month period ended June 30, 2009, general and
administrative expenses increased by $769,108, primarily because of an increase
in the SFAS 123R costs of approximately $724,000. The SFAS 123R cost is a
non-cash charge.
The interest expense of $614,654 for the nine months ended June 30, 2009 was
composed of five elements: 1) amortization of the Series K discount ($111,990),
2) interest paid and accrued on the Series K debt ($103,784), 3) margin interest
($813), 4) interest on the short term loan ($39,265), and 5) cost of warrants
issued to short term loan holder ($358,802). This is a increase of approximately
$236,085 from the nine months ended June 30, 2008 because of the cost of the
warrants issued to the short term note holder, a noncash cost. The corresponding
amounts for the three months ended June 30, 2009 are: 1) $31,439, 2) $29,134, 3)
$-0-, 4) $25,786, and 5) $358,802.
In August 2007, the Company leased a building near Baltimore, Maryland. The
73,000 square foot building 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 requires 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. In January 2008, the
Company signed a second amendment to the lease. In accordance with the lease, on
February 8, 2008, the Company paid an additional $1,295,528 toward the
remodeling costs and a further $518,790 to pay for lab equipment. In addition,
in April 2008, an additional $288,474 was paid for the completion of the
facility. In July 2008, the Company was required to deposit the equivalent of
one year's base rent in accordance with the contract. The $1,575,000 was
required to be deposited when the amount of cash the Company had fell below the
amount stipulated in the lease. The Company took possession of the manufacturing
facility in October 2008.
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Celscisci Corp has a market cap of $113.24 million; its shares were traded at around $0.6948 with and P/S ratio of 1398.04.
Highlight of Business Operations:
During the nine-month periods ended June 30, 2009 and 2008, the Company providedcash totaling $4,860,153 and used cash of $7,831,579, respectively. For the nine
months ended June 30, 2009 and 2008, cash used in operating activities totaled
$2,539,239 and $4,688,724. For the nine months ended June 30, 2009 and 2008,
cash was provided by financing activities totaled $6,985,892 and cash was used
by financing activities of $750,597, respectively. Licensing proceeds of
$1,249,981 and receipt of short-term loans of $1,060,000 provided funds, as did
the June 2009 financing ($5,845,241). The repayment of convertible notes
($630,000), financing costs ($339,330) and the repayment of the short-term loan
($200,000) were used in financing activities during the nine months ended June
30, 2009. For the nine months ended June 30, 2008, cash provided by financing
was from the exercise of employee options ($14,403)and a short-term loan
($656,340). Repayment of convertible notes of $765,000 and repayment of the
short-term loan ($656,340) used cash in financing activities. For the nine
months ended June 30, 2009, cash provided by investing activities was $413,500.
For the nine months ended June 30, 2008, $2,392,258 was used in investing
activities. For the nine months ended June 30, 2009 and 2008, the use of cash in
investing activities consisted of purchases of equipment and legal costs
incurred in patent applications, the use of restricted cash and, for the nine
months ended June 30, 2009, the sale of the final $200,000 in ARPs.
In December 2008, the Company was not in compliance with certain lease
requirements (i.e., failure to pay an installment of Base Annual Rent), which
has, however, been cured. This resulted in a lease amendment pursuant to which
the landlord agreed to defer three months (December - February) of rent which
was to be paid back incrementally from future financings. In return, the Company
extended 3,000,000 warrants by one year, repriced these warrants from $1.25 to
$0.75 and issued to the landlord an additional 787,000 warrants at $0.75. The
cost of $115,721 was accounted for as a debit to deferred rent and a credit to
additional paid-in capital. Both warrants expire on January 26, 2014. During the
quarter ended June 30, 2009, the landlord was issued an additional 2,296,875
warrants in accordance with an amendment to the lease. The cost of these new
warrants ($251,172) was accounted for as a debit to deferred rent and a credit
to additional paid-in capital. In March 2009, the Company began paying half of
the basic monthly rent while it negotiated for additional capital. On July 1,
2009, the Company paid all back rent to the landlord and is therefore not
obligated to issue additional warrants to the landlord.
During the nine-month period ended June 30, 2009, general and administrative
expenses increased by $84,064 compared to the nine-month period ended June 30,
2008. This increase was caused primarily by the write off of abandoned patents
of $138,525, offset by a decrease in shareholder expenses of approximately
$81,000. During the three-month period ended June 30, 2009, general and
administrative expenses increased by $769,108, primarily because of an increase
in the SFAS 123R costs of approximately $724,000. The SFAS 123R cost is a
non-cash charge.
The interest expense of $614,654 for the nine months ended June 30, 2009 was
composed of five elements: 1) amortization of the Series K discount ($111,990),
2) interest paid and accrued on the Series K debt ($103,784), 3) margin interest
($813), 4) interest on the short term loan ($39,265), and 5) cost of warrants
issued to short term loan holder ($358,802). This is a increase of approximately
$236,085 from the nine months ended June 30, 2008 because of the cost of the
warrants issued to the short term note holder, a noncash cost. The corresponding
amounts for the three months ended June 30, 2009 are: 1) $31,439, 2) $29,134, 3)
$-0-, 4) $25,786, and 5) $358,802.
In August 2007, the Company leased a building near Baltimore, Maryland. The
73,000 square foot building 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 requires 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. In January 2008, the
Company signed a second amendment to the lease. In accordance with the lease, on
February 8, 2008, the Company paid an additional $1,295,528 toward the
remodeling costs and a further $518,790 to pay for lab equipment. In addition,
in April 2008, an additional $288,474 was paid for the completion of the
facility. In July 2008, the Company was required to deposit the equivalent of
one year's base rent in accordance with the contract. The $1,575,000 was
required to be deposited when the amount of cash the Company had fell below the
amount stipulated in the lease. The Company took possession of the manufacturing
facility in October 2008.
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