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, MultikineÂ® (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."