Benzinga | Dec 29, 2020 05:08PM EST

Cel-Sci Announces Financial Statements Within Quarterly Reports For Qtr Ended Dec 31, 2019, March 31, 2020, & June 30, 2020 Should Not Be Relied Upon

On December 23, 2020, the board of directors (the "Board") of CEL-SCI Corporation (the "Company"), in consultation with management, concluded that the Company's previously issued unaudited condensed financial statements contained within the Quarterly Reports on Form 10-Q for the quarterly periods ended December 31, 2019, March 31, 2020, and June 30, 2020 should no longer be relied upon. Accordingly, the Company intends to restate the aforementioned financial statements by amending its quarterly reports on Form 10-Q for the quarters ended December 31, 2019, March 31, 2020, and June 30, 2020. The Company expects to file amended quarterly reports as soon as possible.



On October 1, 2019, the Company adopted Accounting Standards Codification (ASC) 842, Leases, and applied the standard's transition provisions to account for the build-to-suit lease for the Company's Multikine manufacturing facility. The lease for the manufacturing facility was signed in August 2007. When calculating the right of use (ROU) asset for this lease under ASC 842 during the preparation of the year-end financial statements, the Company determined that the opening Finance ROU asset and total stockholders' equity balances were understated by approximately $2.04 million as of October 1, 2019, the date of adoption.



The unamortized value of approximately $0.6 million relating to the issuance of warrants to the landlord should have been capitalized and included as part of the Finance ROU asset as of October 1, 2019.

The unamortized value of approximately $1.4 million relating to a payment made to the landlord at lease inception, which the Company is recovering in the form of reduced rent, should have been capitalized and included as part of the Finance ROU asset as of October 1, 2019.