CEL-SCI (CVM) 10-Q 6 Feb 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Dec. 31, 2014	Feb. 02, 2015
Document And Entity Information
Entity Registrant Name	CEL SCI CORP
Entity Central Index Key	725363
Document Type	10-Q
Document Period End Date	31-Dec-14
Amendment Flag	FALSE
Current Fiscal Year End Date	-21
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		91,542,416
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015

BALANCE_SHEETS

BALANCE SHEETS (USD $)	Dec. 31, 2014	Sep. 30, 2014
ASSETS
Cash and cash equivalents	$9,461,235	$8,513,620
Receivables	155,938	81,820
Prepaid expenses	780,763	907,526
Deposits - current portion	150,000	150,000
Inventory used for R&D and manufacturing	1,235,028	1,452,020
Deferred rent - current portion	530,106	544,074
Total current assets	12,313,070	11,649,060
RESEARCH AND OFFICE EQUIPMENT, net	396,005	403,004
PATENT COSTS, net	314,476	323,588
DEFERRED RENT, net of current portion	4,558,556	4,733,865
DEPOSITS	1,970,917	2,120,917
TOTAL ASSETS	19,553,024	19,230,434
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	1,642,243	1,160,783
Accrued expenses	670,209	547,208
Due to employees	336,350	307,961
Related party loan	1,104,057	1,104,057
Deferred rent - current portion	5,073	6,375
Derivatives - current portion	24,000	18,105
Lease obligations - current portion	8,625	8,495
Total current liabilities	3,790,557	3,152,984
Derivative instruments - net of current portion	3,779,013	5,487,141
Deferred revenue	126,591	126,591
Deferred rent-net of current portion	6,098	6,290
Lease obligations - net of current portion	6,823	9,028
Deposits held	5,000	5,000
Total liabilities	7,714,082	8,787,034
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value - authorized 200,000 shares, issued and outstanding, -0-	0	0
Common stock, $.01 par value - 600,000,000 shares authorized, 91,483,252 shares and 81,902,471 shares issued and outstanding at December 31, 2014 and September 30, 2014, respectively	914,833	819,025
Additional paid-in capital	258,296,260	249,151,208
Accumulated deficit	-247,372,151	-239,526,833
Total stockholders' equity	11,838,942	10,443,400
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$19,553,024	$19,230,434

BALANCE_SHEETS_Parenthetical

BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 2014	Sep. 30, 2014
Stockholders Equity
Preferred Stock Shares Par Value	$0.01	$0.01
Preferred Stock Shares Authorized	200,000	200,000
Preferred Stock Shares Issued	0	0
Preferred Stock Shares Outstanding	0	0
Common Stock Shares Par Value	$0.01	$0.01
Common Stock Shares Authorized	600,000,000	600,000,000
Common Stock Shares Issued	91,483,252	81,902,471
Common Stock Shares Outstanding	91,483,252	81,902,471

STATEMENTS_OF_OPERATIONS

STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Income Statement [Abstract]
GRANT INCOME AND OTHER	$136,838	$113,144
OPERATING EXPENSES:
Research and development	4,854,821	4,019,541
Depreciation and amortization	56,613	56,699
General & administrative	5,221,145	1,971,214
Total operating expenses	10,132,579	6,047,454
OPERATING LOSS	-9,995,741	-5,934,310
GAIN ON DERIVATIVE INSTRUMENTS	2,162,970	1,610,817
INTEREST INCOME	29,112	31,757
INTEREST EXPENSE	-41,659	-42,682
NET LOSS	-7,845,318	-4,334,418
ISSUANCE OF ADDITIONAL SHARES DUE TO RESET PROVISIONS	0	-1,117,447
NET LOSS AVAILABLE TO COMMON SHAREHOLDERS	($7,845,318)	($5,451,865)
NET LOSS PER COMMON SHARE
BASIC	($0.09)	($0.11)
DILUTED	($0.11)	($0.15)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
BASIC	88,960,783	48,215,919
DILUTED	88,960,783	48,215,919

STATEMENTS_OF_OPERATIONS_Paren

STATEMENTS OF OPERATIONS (Parenthetical) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Expenses
R&D depreciation	$43,159	$41,673

STATEMENTS_OF_CASH_FLOWS

STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	($7,845,318)	($4,334,418)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	56,613	56,699
Issuance of common stock and options for services	189,144	137,729
Modification of warrants issued to consultants	0	76,991
Equity based compensation	3,059,791	510,278
Common stock contributed to 401 (k) plan	40,341	37,887
Impairment loss on abandonment of patents	0	240
Loss on retired equipment	313	0
Gain on derivative instruments	-2,162,970	-1,610,817
(Increase)/decrease in assets:
Receivables	-74,118	28,384
Deferred rent	189,277	176,161
Prepaid expenses	133,152	-210,367
Inventory used for R&D and manufacturing	216,992	-330,629
Deposits	150,000	-200,000
Increase/(decrease) in liabilities:
Accounts payable	457,735	-380,943
Accrued expenses	123,001	232,905
Due to employees	28,389	-105,873
Deferred rent liability	-1,494	-749
Net cash used in operating activities	-5,439,152	-5,916,522
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of equipment	-17,100	-8,587
Net cash used in investing activities	-17,100	-8,587
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock and warrants	6,405,932	19,380,190
Payments on oblgations under capital leases	-2,065	-2,665
Net cash provided by financing activities	6,403,867	19,377,525
NET INCREASE IN CASH AND CASH EQUIVALENTS	947,615	13,452,416
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	8,513,620	41,612
CASH AND CASH EQUIVALENTS, END OF PERIOD	9,461,235	13,494,028
ISSUANCE OF WARRANTS:
Increase in derivative liabilities	-460,737	-7,321,071
Decrease in additional paid-in capital	460,737	7,321,071
Total	0	0
ISSUANCE OF ADDITIONAL SHARES
Increase in common stock	0	-15,631
Increase in additional paid-in capital	0	-1,101,786
Decrease in additional paid-in capital	0	1,117,417
Total	0	0
ISSUANCE OF COMMON STOCK FOR PREPAID SERVICES:
Increase in additional paid-in capital	-6,389	-55,362
Increase in prepaid expenses	6,389	55,362
Total	0	0
ACCOUNTS PAYABLE
Increase in research and office equipment	23,715	12,126
Decrease (increase) in capital lease obligation	10	-9,436
Increase in patent costs	0	9,208
Direct offering costs charged to APIC	0	72,328
Increase in accounts payable	-23,725	-84,226
Total	0	0
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:
Cash expenditures for interest expense	$41,670	$56,509

A_SUMMARY_OF_SIGNIFICANT_ACCOU

A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Basis of Presentation
	The accompanying condensed financial statements of CEL-SCI Corporation (the Company) are unaudited and certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission. While management of the Company believes that the disclosures presented are adequate to make the information presented not misleading, these interim condensed financial statements should be read in conjunction with the  financial statements and notes included in the Company’s annual report on Form 10-K for the year ended September 30, 2014.
	In the opinion of management, the accompanying unaudited condensed financial statements contain all accruals and adjustments (each of which is of a normal recurring nature) necessary for a fair presentation of the Company’s financial position as of December 31, 2014 and the results of its operations for the three months then ended.  The condensed balance sheet as of September 30, 2014 is derived from the September 30, 2014 audited financial statements.  Significant accounting policies have been consistently applied in the interim financial statements and the annual financial statements.  The results of operations for the three months ended December 31, 2014 and 2013 are not necessarily indicative of the results to be expected for the entire year.
	Summary of Significant Accounting Policies:
	Research and Office Equipment and Leasehold Improvements - Research and office equipment is recorded at cost and depreciated using the straight-line method over estimated useful lives of five to seven years.  Leasehold improvements are depreciated over the shorter of the estimated useful life of the asset or the term of the lease.  Repairs and maintenance which do not extend the life of the asset are expensed when incurred. The fixed assets are reviewed on a quarterly basis to determine if any of the assets are impaired.
	Patents - Patent expenditures are capitalized and amortized using the straight-line method over the shorter of the expected useful life or the legal life of the patent (17 years).  In the event changes in technology or other circumstances impair the value or life of the patent, appropriate adjustment in the asset value and period of amortization is made.  An impairment loss is recognized when estimated future undiscounted cash flows expected to result from the use of the asset, and from its disposition, is less than the carrying value of the asset.  The amount of the impairment loss would be the difference between the estimated fair value of the asset and its carrying value.
	Research and Development Costs - Research and development costs are expensed as incurred.
	Income Taxes - The Company uses the asset and liability method of accounting for income taxes.  Under the asset and liability method, deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating and tax loss carryforwards.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.  The Company records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be recognized.  A full valuation allowance was recorded against the deferred tax assets as of December 31, 2014 and September 30, 2014.
	Derivative Instruments – The Company has entered into financing arrangements that consist of freestanding derivative instruments that contain embedded derivative features.  The Company accounts for these arrangements in accordance with Accounting Standards Codification (ASC) 815, “Accounting for Derivative Instruments and Hedging Activities.” In accordance with accounting principles generally accepted in the United States (U.S.GAAP), derivative instruments and hybrid instruments are recognized as either assets or liabilities in the balance sheet and are measured at fair value with gains or losses recognized in earnings or other comprehensive income depending on the nature of the derivative or hybrid instruments.  The Company determines the fair value of derivative instruments and hybrid instruments based on available market data using appropriate valuation models, giving consideration to all of the rights and obligations of each instrument.  The derivative liabilities are remeasured at fair value at the end of each interim period as long as they are outstanding.
	Deferred Rent (Asset) –Consideration paid, including deposits, related to operating leases is recorded as a deferred rent asset and amortized as rent expense over the lease term. Interest on the deferred rent is calculated at 3% on the funds deposited on the manufacturing facility and is included in deferred rent. This interest income will be used to offset future rent.
	Stock-Based Compensation – Compensation cost for all stock-based awards is measured at fair value as of the grant date in accordance with the provisions of ASC 718 “Compensation – Stock Compensation.”  The fair value of stock options is calculated using the Black-Scholes option pricing model.  The Black-Scholes model requires various judgmental assumptions including volatility and expected option life.  The stock-based compensation cost is recognized on the straight line allocation method as expense over the requisite service or vesting period.
	Equity instruments issued to non-employees are accounted for in accordance with ASC 505-50, “Equity-Based Payments to Non Employees.”  Accordingly, compensation is recognized when goods or services are received and is measured using the Black-Scholes valuation model.  The Black-Scholes model requires various judgmental assumptions regarding the fair value of the equity instruments at the measurement date and the expected life of the options.
	The Company has Incentive Stock Option Plans, Non-Qualified Stock Option Plans, a Stock Compensation Plan, Stock Bonus Plans and an Incentive Stock Bonus Plan. In some cases, these Plans are collectively referred to as the "Plans".  All Plans have been approved by the stockholders.
	The Company’s stock options are not transferable, and the actual value of the stock options that an employee may realize, if any, will depend on the excess of the market price on the date of exercise over the exercise price.  The Company has based its assumption for stock price volatility on the variance of daily closing prices of the Company’s stock.  The risk-free interest rate assumption was based on the U.S. Treasury rate at date of the grant with term equal to the expected life of the option. Historical data was used to estimate option exercise and employee termination within the valuation model.  The expected term of the option represents the period of time that the option granted is expected to be outstanding and has been determined based on an analysis of historical exercise behavior. If any of the assumptions used in the Black-Scholes model change significantly, stock-based compensation expense for new awards may differ materially in the future from that recorded in the current period.
	Vesting of restricted stock granted under the Incentive Stock Bonus Plan is subject to service, performance and market conditions and meets the classification of equity awards.  These awards were measured at market value on the grant-dates for issuances where the attainment of performance criteria is likely and at fair value on the grant-dates, using a Monte Carlo simulation for issuances where the attainment of performance criteria is uncertain. The total compensation cost will be expensed over the estimated requisite service period.
	Reclassification – Certain prior year items have been reclassified to conform to the current year presentation.

B_NEW_ACCOUNTING_PRONOUNCEMENT

B. NEW ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Dec. 31, 2014
Accounting Changes and Error Corrections [Abstract]
B. NEW ACCOUNTING PRONOUNCEMENTS	In August 2014, the FASB issued Accounting Standards Update 2014-15 which updates ASC 205-40, “Presentation of Financial Statements – Going Concern.”  This accounting standard update requires that in connection with preparing financial statements for each annual and interim reporting period, an entity’s management will evaluate whether there are conditions and events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. The update requires that management’s evaluation be based on relevant conditions and events that are known and reasonably knowable at the date that the financial statements are issued.  The changes in ASU 2014-15 will take effect for the annual financial statement period ending after Dec. 15, 2016, and for annual periods and interim periods thereafter.  The Company is currently evaluating the impact of the provisions of the pronouncement.
	The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its financial statements.

C_STOCKHOLDERS_EQUITY

C. STOCKHOLDERS EQUITY	3 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
C. STOCKHOLDERS' EQUITY	Stock options, stock bonuses and compensation granted by the Company as of December 31, 2014 are as follows:
			Total Shares Reserved Under Plans			Shares Reserved for Outstanding Options			Shares Issued as Stock Bonus				Remaining Options/Shares Under Plans
	Name of Plan
	Incentive Stock Options Plans			1,960,000			1,710,997			N/A				3,303
	Non-Qualified Stock Option Plans			5,680,000			5,023,652			N/A				99,429
	Stock Bonus Plans			1,594,000			N/A			1,162,612				430,632
	Stock Compensation Plan			1,350,000			N/A			1,316,949				33,051
	Incentive Stock Bonus Plan			16,000,000			N/A			15,700,000				300,000
	There were 1,000 and zero options granted to employees and directors during the three months ended December 31, 2014 and 2013, respectively. There were 97,500 and zero options forfeited by employees and directors during the three months ended December 31, 2014 and 2013, respectively.
	Stock-Based Compensation Expense
			Three Months Ended December 31,
			2014			2013
	Employees		$	3,059,791		$	510,278
	Non-employees		$	189,144		$	214,720
	During the three months ended December 31, 2014, employee compensation expense included options issued or vested and restricted stock.  During the three months ended December 31, 2014 and 2013, non-employee compensation expense excluded $32,857 and $55,362, respectively, for future services to be performed.
	Derivative Liabilities, Warrants and Other Options
	Below is a chart showing the derivative liabilities, warrants and other options outstanding at December 31, 2014:
	Warrant	Issue Date		Shares Issuable upon Exercise of Warrant			Exercise Price		Expiration Date		Reference
	Schleuning (Series A)	7/8/09			16,750			5	1/8/15			1
	Series C	8/20/09 – 8/26/09			463,487			5.5	2/20/15			1
	Series H	1/26/12			1,200,000			5	8/1/15			1
	Series Q	6/21/12			1,200,000			5	12/22/15			1
	Series R	12/6/12			2,625,000			4	12/6/16			1
	Series S	10/11/13- 10/24/14			25,928,010			1.25	10/11/18			1
	Series U	4/17/14			445,514			1.75	10/17/17			1
	Series L (repriced)	4/18/07			70,000			2.5	4/2/15			2
	Series N	8/18/08			2,844,627			0.53	8/18/15			2
	Series P	2/10/12			590,001			4.5	3/6/17			2
	Warrants held by Officer and Director	7/6/09			184,930			5	1/6/15			2
	Consultants	2/15/05– 4/25/14			149,500			0.85-20.00	2/15/15 - 12/27/17			3
	1.	Derivative Liabilities
	The table below presents the derivative instruments outstanding at the balance sheet dates and their respective balances:
			31-Dec-14			30-Sep-14
	Series A through E warrants		$	-		$	6,105
	Series H warrants			12,000			12,000
	Series Q warrants			12,000			12,000
	Series R warrants			26,250			157,500
	Series S warrants			3,707,706			5,197,352
	Series U warrants			45,057			120,289
	Total derivative liabilities		$	3,803,013		$	5,505,246
	The table below presents the gains and (losses) on the derivative instruments for the three months ended December 31:
			2014			2013
	Series A through E warrants		$	6,105		$	-
	Series H warrants			-			24,000
	Series N warrants			-			(489,754	)
	Series Q warrants			-			24,000
	Series R warrants			131,250			131,250
	Series S warrants			1,950,383			1,921,321
	Series U warrants			75,232			-
	Net gain on derivative instruments		$	2,162,970		$	1,610,817
	The Company reviews all outstanding warrants in accordance with the requirements of ASC 815.  This topic provides that an entity should use a two-step approach to evaluate whether an equity-linked financial instrument (or embedded feature) is indexed to its own stock, including evaluating the instrument’s contingent exercise and settlement provisions.  The warrant agreements provide for adjustments to the exercise price for certain dilutive events.  Under the provisions of ASC 815, the warrants are not considered indexed to the Company’s stock because future equity offerings or sales of the Company’s stock are not an input to the fair value of a “fixed-for-fixed” option on equity shares, and equity classification is therefore precluded.
	In accordance with ASC 815, derivative liabilities must be measured at fair value upon issuance and re-valued at the end of each reporting period through expiration.  Any change in fair value between the respective reporting dates is recognized as a gain or loss.
	Issuance of additional Series S Warrants
	On October 24, 2014, the Company closed an underwritten public offering of 7,894,737 shares of common stock and 1,973,684 warrants to purchase shares of common stock. Additionally, on October 21, 2014, the Company sold 1,320,000 shares of common stock and 330,000 warrants to purchase shares of common stock in a private offering.  For every four shares of common stock sold in these offerings, investors were issued one Series S warrant to purchase one share of common stock.  The common stock and Series S warrants were sold at a combined per unit price of $0.76 for net proceeds of approximately $6.4 million, net of underwriting discounts and commissions and offering expenses.  The Series S warrants may be exercised at a price of $1.25 and expire on October 11, 2018.  The Series S warrants trade on the NYSE MKT under the symbol CVM WS.
	The initial cost of the Series S warrants of $460,737 was added to the existing Series S warrant liability.  As of December 31, 2014, the total Series S warrant liability was adjusted to fair value as noted in the above table.
	Expiration of Warrants
	On October 6, 2014, 1,200,000 Series F warrants, with an exercise price of $4.00, expired. The fair value of the Series F warrants was $0 on the date of expiration.  On October 17, 2014, 1,782,057 Series T warrants, with an exercise price of $1.58, expired. The fair value of the Series T warrants was $0 on the date of expiration.  On December 24, 2014, 130,347 Series A warrants, with an exercise price of $5.00, expired.  The fair value of the warrants on the date of expiration was $1,303.  During the three months ended December 31, 2013, zero warrants expired.
	2.	Equity-based warrants
	On December 24, 2014, 164,824 warrants held by an officer or director, with an exercise price of $4.00, expired. There were no other changes to equity-based warrants during the quarter ended December 31, 2014.  During the three months ended December 31, 2013, zero warrants expired.
	3.	Options and shares issued to Consultants
	As of December 31, 2014, 149,500 options issued to consultants as payment for services remained outstanding, of which 140,000 options were issued from the Non-Qualified Stock Option plans.  As of December 31, 2013, 200,750 options issued to consultants as payment for services remained outstanding, of which 191,250 options were issued from the Non-Qualified Stock Option plans.
	The Company extended a one-year consulting agreement for services to be provided through December 15, 2015.  In consideration for services provided, the Company agreed to issue the consultant 100,000 restricted shares in three installments – 34,000 in December 2014, 33,000 on May 15, 2015, and 33,000 on August 15, 2015.  Accordingly, during the three months ended December 31, 2014, the Company issued the consultant 34,000 shares of restricted stock at the fair market value of $0.57 per share.  The aggregate fair market value of $19,380 was recorded as a prepaid expense and is being charged to general and administrative expense over the period of service.
	On October 20, 2013, the Company entered into a consulting agreement for services to be provided through October 19, 2016.  In consideration for services provided, the Company agreed to issue the consultant 34,164 restricted shares each month of the agreement, with the first three months being issued in advance. During the three months ended December 31, 2014 and 2013, the Company issued the consultant 102,492 shares of restricted stock at the fair market value of $71,403 and $84,043, respectively.  The aggregate fair market value was recorded as a prepaid expense and is being charged to general and administrative expense over the period of service.  In November 2014, the Company issued the same consultant 150,000 shares of common stock at the aggregate fair market value of $97,500, in consideration for services provided.
	The Company also engaged a third consultant for services to be provided from June 1, 2014 through November 30, 2014.  During the three months ended December 31, 2014, the Company issued the consultant 10,000 shares of restricted stock at the fair market value of $7,250.  No shares were issued to this consultant during the three months ended December 31, 2013.
During the three months ended December 31, 2014 and 2013, the Company recorded total expense of $189,144 and $71,586 relating to these consulting agreements.  In addition, $66,143 was expensed during the three months ended December 31, 2013 for prior year consulting agreements.  At December 31, 2014 and September 30, 2014, respectively, $32,857 and $26,468 is included in prepaid expenses.

D_FAIR_VALUE_MEASUREMENTS

D. FAIR VALUE MEASUREMENTS	3 Months Ended
	Dec. 31, 2014
Fair Value Disclosures [Abstract]
D. FAIR VALUE MEASUREMENTS	In accordance with ASC 820-10, “Fair Value Measurements,” the Company determines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  The Company generally applies the income approach to determine fair value.  This method uses valuation techniques to convert future amounts to a single present amount.  The measurement is based on the value indicated by current market expectations with respect to those future amounts.
	ASC 820-10 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value.  The hierarchy gives the highest priority to active markets for identical assets and liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement).  The Company classifies fair value balances based on the observability of those inputs.  The three levels of the fair value hierarchy are as follows:
	●	Level 1 – Observable inputs such as quoted prices in active markets for identical assets or liabilities
	●	Level 2 – Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly.  These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and amounts derived from valuation models where all significant inputs are observable in active markets
	●	Level 3 – Unobservable inputs that reflect management’s assumptions
	For disclosure purposes, assets and liabilities are classified in their entirety in the fair value hierarchy level based on the lowest level of input that is significant to the overall fair value measurement.  The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement within the fair value hierarchy levels.
	The table below sets forth the assets and liabilities measured at fair value on a recurring basis, by input level, in the condensed balance sheet at December 31, 2014:
			Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)
						Significant Other Observable			Significant Unobservable Inputs (Level 3)		Total
						Inputs (Level 2)
	Derivative instruments		$	3,707,706		$	-		$	95,307	$	3,803,013
	The table below sets forth the assets and liabilities measured at fair value on a recurring basis, by input level, in the condensed balance sheet at September 30, 2014:
			Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)
						Significant Other Observable			Significant Unobservable Inputs (Level 3)		Total
						Inputs (Level 2)
	Derivative instruments		$	5,197,352		$	-		$	307,894	$	5,505,246
	The following sets forth the reconciliation of beginning and ending balances related to fair value measurements using significant unobservable inputs (Level 3) for the three months ended December 31, 2014 and the year ended September 30, 2014:
			(3 months ended)			(12 months ended)
			31-Dec-14			30-Sep-14
	Beginning balance		$	307,894		$	433,024
	Issuances			-			7,791,448
	Settlements			-			(1,445,528	)
	Transfers to Level 1			-			(7,321,071	)
	Realized and unrealized (gains) losses			(212,587	)		850,021
	Ending balance		$	95,307		$	307,894
	The fair values of the Company’s derivative instruments disclosed above under Level 3 are primarily derived from valuation models where significant inputs such as historical price and volatility of the Company’s stock, as well as U.S. Treasury Bill rates, are observable in active markets.

E_LOANS_FROM_OFFICER

E. LOANS FROM OFFICER	3 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
E. LOANS FROM OFFICER	The Company’s President, and a director, Maximilian de Clara, loaned the Company $1,104,057.  The loan from Mr. de Clara bears interest at 15% per year and is secured by a lien on substantially all of the Company’s assets.  The Company does not have the right to prepay the loan without Mr. de Clara’s consent.  In accordance with the loan agreement, the Company issued Mr. de Clara warrants to purchase 164,824 shares of the Company’s common stock at a price of $4.00 per share.  These warrants expired on December 24, 2014.  At Mr. de Clara’s option, the loan may be converted into shares of the Company’s common stock.  The number of shares which will be issued upon any conversion will be determined by dividing the amount to be converted by $4.00.  In consideration for an extension of the due date, Mr. de Clara received warrants to purchase 184,930 shares of the Company’s common stock at a price of $5.00 per share at any time prior to January 6, 2015.  In consideration of Mr. de Clara’s agreement to subordinate his note to the convertible preferred shares and convertible debt as part of a prior year settlement agreement, the Company extended the maturity date of the note to July 6, 2015; however, Mr. de Clara may demand payment upon giving the Company a minimum 10 day notice.   In August 2014, the loan and warrants were transferred to the de Clara Trust, of which the Company’s CEO, Geert Kersten, is the trustee and a beneficiary.  Mr. de Clara will continue to receive the interest payments.
	During the three months ended December 31, 2014 and 2013, the Company paid $41,402 and $55,203, respectively in interest expense to Mr. de Clara.

F_OPERATIONS_AND_FINANCING

F. OPERATIONS AND FINANCING	3 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
F. OPERATIONS, FINANCING	The Company has incurred significant costs since its inception in connection with the acquisition of certain patented and unpatented proprietary technology and know-how relating to the human immunological defense system, patent applications, research and development, administrative costs, construction of laboratory facilities, and clinical trials.  The Company has funded such costs with proceeds from loans and the public and private sale of its common and preferred stock.  The Company will be required to raise additional capital or find additional long-term financing in order to continue with its research efforts.  To date, the Company has not generated any revenue from product sales.  The ability of the Company to complete the necessary clinical trials and obtain US Food & Drug Administration (FDA) approval for the sale of products to be developed on a commercial basis is uncertain. Ultimately, the Company must complete the development of its products, obtain the appropriate regulatory approvals and obtain sufficient revenues to support its cost structure.
	The Company is currently running a large multi-national Phase III clinical trial for head and neck cancer with its partners TEVA Pharmaceuticals and Orient Europharma. The Company believes that between the capital the Company has on hand and the access it has to more capital, it has enough capital to support its operations for more than the next twelve months.  On September 30, 2014, the Company reported approximately $8.5 million in cash on hand.  During the three months ended December 31, 2014, the Company raised $6.4 million in net proceeds from several institutional investors.  To finance the completion of the study, the Company plans to raise additional capital in the form of corporate partnerships, debt and/or equity financings. The Company believes that it will be able to obtain additional financing since Multikine is a Phase III product designed to treat cancer and because it has done so consistently in the past. However, there can be no assurance that the Company will be successful in raising additional funds or that funds will be available to the Company on acceptable terms or at all.  If the Company does not raise the necessary amounts of money, the Company will either have to slow down or delay the Phase III clinical trial or even significantly curtail its operations until such time as it is able to raise the required funding.
	Since the Company launched its Phase III trial for Multikine, the Company has spent approximately $18,200,000 as of December 31, 2014 on direct costs for the Phase III clinical trial.  The total remaining cash cost of the clinical trial is estimated to be about $26,400,000.  It should be noted that this estimate is only an estimate based on the information currently available in CEL-SCI’s contracts with the Clinical Research Organizations responsible for managing the Phase III trial.  This number can be affected by the speed of enrollment, foreign currency exchange rates and many other factors, some of which cannot be foreseen today.  It is therefore possible that the cost of the Phase III trial will be higher than currently estimated.
	On July 15, 2014, the Company was awarded a Phase I Small Business Innovation Research (SBIR) grant in the amount of $225,000 from the National Institute of Arthritis Muscoskeletal and Skin Diseases, which is part of the National Institutes of Health.  The grant will fund the further development of CEL-SCI’s LEAPS technology as a potential treatment for rheumatoid arthritis, an autoimmune disease of the joints. The Company recognizes revenue as the expenses are incurred. The amount of the grant earned during the three months ended December 31, 2014 was $18,345. As of December 31, 2014, the Company collected $9,104 of this grant and recorded a receivable of $9,241. The balance of the funds is expected to be collected by June 30, 2015.

G_COMMITMENTS_AND_CONTINGENCIE

G. COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
G. COMMITMENTS AND CONTINGENCIES	Clinical Research Agreements
	In March 2013, the Company entered into an agreement with Aptiv Solutions to provide certain clinical research services in accordance with a master service agreement.  The Company will reimburse Aptiv for costs incurred.  In May 2013, CEL-SCI made an advance payment of $400,000.  In October 2013, CEL-SCI made the second and final advance payment of $200,000. The funds advanced will be credited back in $150,000 annual increments from December 2014 through December 2017.  As of December 31, 2014, $150,000 of the deposits is classified as a current asset.
	In April 2013, the Company entered into a co-development and revenue sharing agreement with Ergomed.  Under the agreement, Ergomed will contribute up to $10 million towards the study in the form of offering discounted clinical services in exchange for a single digit percentage of milestone and royalty payments, up to a specific maximum amount.  The Company accounted for the co-development and revenue sharing agreement in accordance with ASC 808 “Collaborative Arrangements”.  The Company determined the payments to Erogmed are within the scope of ASC 730 “Research and Development.” Therefore, the Company will record the discount on the clinical services as a credit to research and development expense on its Statements of Operations.  Since the Company entered into the co-development and revenue sharing agreement with Ergomed it has incurred research and development expenses of approximately $6,900,000 related to Ergomed’s services.  This amount is net of Ergomed’s discount of approximately $2,400,000. During the three months ended December 31, 2014 and 2013, the Company recorded, net of Ergomed’s discount, approximately $1,600,000 and $1,179,000 respectively as research and development expense related to Ergomed’s services.
	In October 2013, the Company entered into two co-development and profit sharing agreements with Ergomed.  One agreement supports the Phase I study being conducted at the Naval Medical Center, San Diego under a Cooperative Research and Development Agreement (CRADA) with the U.S. Navy for the development of Multikine as a potential treatment in HIV/HPV co-infected men and women with peri-anal warts.  The other agreement focuses on the development of Multikine in HIV/HPV co-infected women with cervical dysplasia. Ergomed will assume up to $3 million in clinical and regulatory costs for each study.
	On October 31, 2013, the Company commenced arbitration proceedings against the Company’s former clinical research organization (CRO).  The arbitration claim, initiated under the Commercial Rules of the American Arbitration Association, alleges (i) breach of contract, (ii) fraud in the inducement, and (iii) common law fraud, and seeks at least $50 million in damages.  The Company filed this arbitration because, among other reasons, the number of patients enrolled and treated in the study fell below the level agreed to with the former CRO.  In April 2013, the Company dismissed the former CRO and replaced it with Aptiv Solutions, Inc. and Ergomed Clinical Research Ltd, as noted above.
	On December 12, 2013, the former CRO filed a counterclaim, alleging breach of contract on the part of CEL-SCI and seeking at least $2 million in damages.  On December 20, 2013, the former CRO moved to dismiss certain claims.  On June 24, 2014, the arbitrator denied their motion to dismiss.  Given that this matter is at a preliminary stage, the Company is not in a position to predict or assess the likely outcome of these proceedings.
	Lease Agreements
	In August 2007, the Company leased a building near Baltimore, Maryland.  The building was remodeled in accordance with the Company’s 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 to escalate each year at 3%.  The Company is 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 Company was required to deposit the equivalent of one year of base rent in accordance with the lease.  When the Company meets the minimum cash balance required by the lease, the deposit will be returned to the Company.  The $1,670,917 is included in non-current assets on December 31, 2014 and September 30, 2014.
	The Company subleases a portion of its rental space on a month to month term lease, which requires a 30 day notice for termination. The Company receives $5,304 per month in rent for the subleased space.
	The Company leases its research and development laboratory under a 60 month lease which expires February 28, 2017.  The operating lease includes escalating rental payments.  The Company is recognizing the related rent expense on a straight line basis over the full 60 month term of the lease at the rate of $11,360 per month.  As of December 31, 2014 and September 30, 2014, the Company has recorded a deferred rent liability of $6,986 and $6,387, respectively.
	The Company leases office headquarters under a 36 month lease which expires June 30, 2015. The operating lease includes escalating rental payments.  The Company is recognizing the related rent expense on a straight line basis over the full 36 month term of the lease at the rate $7,864 per month.  As of December 31, 2014 and September 30, 2014, the Company has recorded a deferred rent liability of $4,185 and $6,278, respectively.
	The Company leases office equipment under a capital lease arrangement.  The term of the capital lease is 48 months and expires on September 30, 2016.  The monthly lease payment is $1,025.  The lease bears interest at approximately 6% per annum.

H_PATENTS

H. PATENTS	3 Months Ended
	Dec. 31, 2014
Accounting Policies [Abstract]
H. PATENTS	During the three months ended December 31, 2014 and 2013, the Company recorded patent impairment charges of $0 and $240, respectively.  For the three months ended December 31, 2014 and 2013, amortization of patent costs totaled $9,112 and $9,703, respectively. The Company estimates that future amortization expense will be as follows:
	Nine months ending September 30, 2015	$	26,938
	Year ending September 30,
	2016		36,051
	2017		36,051
	2018		35,716
	2019		34,014
	2020		30,820
	Thereafter		114,886
	Total	$	314,476

I_NET_LOSS_PER_SHARE

I. NET LOSS PER SHARE	3 Months Ended
	Dec. 31, 2014
Accounting Policies [Abstract]
I. NET LOSS PER SHARE	The following table provides the details of the basic and diluted loss per-share computations:
		Three Months Ended December 31, 2014
		Net Loss			Weighted Average Shares		LPS
	Basic LPS	$	(7,845,318	)		88,960,783	$	(0.09	)
	Gain on derivatives		(2,162,970	)
	Dilutive loss per share	$	(10,008,288	)		88,960,783	$	(0.11	)
		Three Months Ended December 31, 2013
		Net Loss			Weighted Average Shares		LPS
	Basic loss per share	$	(5,451,865	)		48,215,919	$	(0.11	)
	Gain on derivatives		(1,610,817	)
	Dilutive loss per share	$	(7,062,652	)		48,215,919	$	(0.15	)
	The calculation of diluted net loss per share excludes 15,700,000 shares of unvested restricted stock for the three months ended December 31, 2014, because their inclusion would be anti-dilutive.  Also, excluded from the weighted average number of shares used in the computations of dilutive net loss per share, were options and warrants to purchase approximately 39,452,000 and 40,866,000 shares of common stock as of December 31, 2014 and 2013, respectively, because their inclusion would be anti-dilutive.

J_SUBSEQUENT_EVENTS

J. SUBSEQUENT EVENTS	3 Months Ended
	Dec. 31, 2014
Subsequent Events [Abstract]
J. SUBSEQUENT EVENTS	The Company has evaluated subsequent events through the date these financial statements were filed and determined there are no subsequent events that require disclosure.

A_ORGANIZATION_AND_SUMMARY_OF_

A. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (POLICIES)	3 Months Ended
	Dec. 31, 2014
A. Organization And Summary Of Significant Accounting Policies Policies
Basis of Presentation	The accompanying condensed financial statements of CEL-SCI Corporation (the Company) are unaudited and certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission. While management of the Company believes that the disclosures presented are adequate to make the information presented not misleading, these interim condensed financial statements should be read in conjunction with the  financial statements and notes included in the Company’s annual report on Form 10-K for the year ended September 30, 2014.
	In the opinion of management, the accompanying unaudited condensed financial statements contain all accruals and adjustments (each of which is of a normal recurring nature) necessary for a fair presentation of the Company’s financial position as of December 31, 2014 and the results of its operations for the three months then ended.  The condensed balance sheet as of September 30, 2014 is derived from the September 30, 2014 audited financial statements.  Significant accounting policies have been consistently applied in the interim financial statements and the annual financial statements.  The results of operations for the three months ended December 31, 2014 and 2013 are not necessarily indicative of the results to be expected for the entire year.
Research and Office Equipment and Leasehold Improvements	Research and office equipment is recorded at cost and depreciated using the straight-line method over estimated useful lives of five to seven years.  Leasehold improvements are depreciated over the shorter of the estimated useful life of the asset or the term of the lease.  Repairs and maintenance which do not extend the life of the asset are expensed when incurred. The fixed assets are reviewed on a quarterly basis to determine if any of the assets are impaired.
Patents	Patent expenditures are capitalized and amortized using the straight-line method over the shorter of the expected useful life or the legal life of the patent (17 years).  In the event changes in technology or other circumstances impair the value or life of the patent, appropriate adjustment in the asset value and period of amortization is made.  An impairment loss is recognized when estimated future undiscounted cash flows expected to result from the use of the asset, and from its disposition, is less than the carrying value of the asset.  The amount of the impairment loss would be the difference between the estimated fair value of the asset and its carrying value.
Research and Development Costs	Research and development costs are expensed as incurred.
Income Taxes	The Company uses the asset and liability method of accounting for income taxes.  Under the asset and liability method, deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating and tax loss carryforwards.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.  The Company records a valuation allowance to reduce the deferred tax assets to the amount that is more likely than not to be recognized.  A full valuation allowance was recorded against the deferred tax assets as of December 31, 2014 and September 30, 2014.
Derivative Instruments	The Company has entered into financing arrangements that consist of freestanding derivative instruments that contain embedded derivative features.  The Company accounts for these arrangements in accordance with Accounting Standards Codification (ASC) 815, “Accounting for Derivative Instruments and Hedging Activities.” In accordance with accounting principles generally accepted in the United States (U.S.GAAP), derivative instruments and hybrid instruments are recognized as either assets or liabilities in the balance sheet and are measured at fair value with gains or losses recognized in earnings or other comprehensive income depending on the nature of the derivative or hybrid instruments.  The Company determines the fair value of derivative instruments and hybrid instruments based on available market data using appropriate valuation models, giving consideration to all of the rights and obligations of each instrument.  The derivative liabilities are remeasured at fair value at the end of each interim period as long as they are outstanding.
Deferred Rent (Asset)	Consideration paid, including deposits, related to operating leases is recorded as a deferred rent asset and amortized as rent expense over the lease term. Interest on the deferred rent is calculated at 3% on the funds deposited on the manufacturing facility and is included in deferred rent. This interest income will be used to offset future rent.
Stock-Based Compensation	Compensation cost for all stock-based awards is measured at fair value as of the grant date in accordance with the provisions of ASC 718 “Compensation – Stock Compensation.”  The fair value of stock options is calculated using the Black-Scholes option pricing model.  The Black-Scholes model requires various judgmental assumptions including volatility and expected option life.  The stock-based compensation cost is recognized on the straight line allocation method as expense over the requisite service or vesting period.
	Equity instruments issued to non-employees are accounted for in accordance with ASC 505-50, “Equity-Based Payments to Non Employees.”  Accordingly, compensation is recognized when goods or services are received and is measured using the Black-Scholes valuation model.  The Black-Scholes model requires various judgmental assumptions regarding the fair value of the equity instruments at the measurement date and the expected life of the options.
	The Company has Incentive Stock Option Plans, Non-Qualified Stock Option Plans, a Stock Compensation Plan, Stock Bonus Plans and an Incentive Stock Bonus Plan. In some cases, these Plans are collectively referred to as the "Plans".  All Plans have been approved by the stockholders.
	The Company’s stock options are not transferable, and the actual value of the stock options that an employee may realize, if any, will depend on the excess of the market price on the date of exercise over the exercise price.  The Company has based its assumption for stock price volatility on the variance of daily closing prices of the Company’s stock.  The risk-free interest rate assumption was based on the U.S. Treasury rate at date of the grant with term equal to the expected life of the option. Historical data was used to estimate option exercise and employee termination within the valuation model.  The expected term of options represents the period of time that options granted are expected to be outstanding and has been determined based on an analysis of historical exercise behavior. If any of the assumptions used in the Black-Scholes model change significantly, stock-based compensation expense for new awards may differ materially in the future from that recorded in the current period.
	Vesting of restricted stock granted under the Incentive Stock Bonus Plan is subject to service, performance and market conditions and meets the classification of equity awards.  These awards were measured at market value on the grant-dates for issuances where the attainment of performance criteria is likely and at fair value on the grant-dates, using a Monte Carlo simulation for issuances where the attainment of performance criteria is uncertain. The total compensation cost will be expensed over the estimated requisite service period.
Reclassification	Certain prior year items have been reclassified to conform to the current year presentation.

C_STOCKHOLDERS_EQUITY_Tables

C. STOCKHOLDERS EQUITY (Tables)	3 Months Ended
	Dec. 31, 2014
C. Stockholders Equity Tables
Stock options, stock bonuses and compensation granted by the Company			Total Shares Reserved Under Plans			Shares Reserved for Outstanding Options			Shares Issued as Stock Bonus				Remaining Options/Shares Under Plans
	Name of Plan
	Incentive Stock Options Plans			1,960,000			1,710,997			N/A				3,303
	Non-Qualified Stock Option Plans			5,680,000			5,023,652			N/A				99,429
	Stock Bonus Plans			1,594,000			N/A			1,162,612				430,632
	Stock Compensation Plan			1,350,000			N/A			1,316,949				33,051
	Incentive Stock Bonus Plan			16,000,000			N/A			15,700,000				300,000
Schedule of employees and non-employees stock compensation			Three Months Ended December 31,
			2014			2013
	Employees		$	3,059,791		$	510,278
	Non-employees		$	189,144		$	214,720
Derivative Liabilities, Warrants and Other Options	Warrant	Issue Date		Shares Issuable upon Exercise of Warrant			Exercise Price		Expiration Date		Reference
	Schleuning (Series A)	7/8/09			16,750			5	1/8/15			1
	Series C	8/20/09 – 8/26/09			463,487			5.5	2/20/15			1
	Series H	1/26/12			1,200,000			5	8/1/15			1
	Series Q	6/21/12			1,200,000			5	12/22/15			1
	Series R	12/6/12			2,625,000			4	12/6/16			1
	Series S	10/11/13- 10/24/14			25,928,010			1.25	10/11/18			1
	Series U	4/17/14			445,514			1.75	10/17/17			1
	Series L (repriced)	4/18/07			70,000			2.5	4/2/15			2
	Series N	8/18/08			2,844,627			0.53	8/18/15			2
	Series P	2/10/12			590,001			4.5	3/6/17			2
	Warrants held by Officer and Director	7/6/09			184,930			5	1/6/15			2
	Consultants	2/15/05– 4/25/14			149,500			0.85-20.00	2/15/15 - 12/27/17			3
Tabular disclosure of derivative liabilities at fair value	The table below presents the derivative instruments outstanding at the balance sheet dates and their respective balances:
			31-Dec-14			30-Sep-14
	Series A through E warrants		$	-		$	6,105
	Series H warrants			12,000			12,000
	Series Q warrants			12,000			12,000
	Series R warrants			26,250			157,500
	Series S warrants			3,707,706			5,197,352
	Series U warrants			45,057			120,289
	Total derivative liabilities		$	3,803,013		$	5,505,246
Tabular disclosure of gains and (losses) of derivative liabilities	The table below presents the gains and (losses) on the derivative instruments for the three months ended December 31:
			2014			2013
	Series A through E warrants		$	6,105		$	-
	Series H warrants			-			24,000
	Series N warrants			-			(489,754	)
	Series Q warrants			-			24,000
	Series R warrants			131,250			131,250
	Series S warrants			1,950,383			1,921,321
	Series U warrants			75,232			-
	Net gain on derivative instruments		$	2,162,970		$	1,610,817

D_FAIR_VALUE_MEASUREMENTS_Tabl

D. FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Dec. 31, 2014
D. Fair Value Measurements Tables
Measured at fair value on a recurring basis	The table below sets forth the assets and liabilities measured at fair value on a recurring basis, by input level, in the condensed balance sheet at December 31, 2014:
		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)
					Significant Other Observable			Significant Unobservable Inputs (Level 3)		Total
					Inputs (Level 2)
	Derivative instruments	$	3,707,706		$	-		$	95,307	$	3,803,013
	The table below sets forth the assets and liabilities measured at fair value on a recurring basis, by input level, in the condensed balance sheet at September 30, 2014:
		Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)
					Significant Other Observable			Significant Unobservable Inputs (Level 3)		Total
					Inputs (Level 2)
	Derivative instruments	$	5,197,352		$	-		$	307,894	$	5,505,246
Reconciliation of beginning and ending balances related to fair value measurements using significant unobservable inputs (Level 3)		(3 months ended)			(12 months ended)
		31-Dec-14			30-Sep-14
	Beginning balance	$	307,894		$	433,024
	Issuances		-			7,791,448
	Settlements		-			(1,445,528	)
	Transfers to Level 1		-			(7,321,071	)
	Realized and unrealized (gains) losses		(212,587	)		850,021
	Ending balance	$	95,307		$	307,894

H_PATENTS_Tables

H. PATENTS (Tables)	3 Months Ended
	Dec. 31, 2014
H. Patents Tables
Schedule of total estimated future amortization	Nine months ending September 30, 2015	$	26,938
	Year ending September 30,
	2016		36,051
	2017		36,051
	2018		35,716
	2019		34,014
	2020		30,820
	Thereafter		114,886
	Total	$	314,476

I_NET_LOSS_PER_SHARE_Tables

I. NET LOSS PER SHARE (Tables)	3 Months Ended
	Dec. 31, 2014
I. Net Loss Per Share Tables
Computation of dilutive net loss per share		Three Months Ended December 31, 2014
		Net Loss			Weighted Average Shares		LPS
	Basic LPS	$	(7,845,318	)		88,960,783	$	(0.09	)
	Gain on derivatives		(2,162,970	)
	Dilutive loss per share	$	(10,008,288	)		88,960,783	$	(0.11	)
		Three Months Ended December 31, 2013
		Net Loss			Weighted Average Shares		LPS
	Basic loss per share	$	(5,451,865	)		48,215,919	$	(0.11	)
	Gain on derivatives		(1,610,817	)
	Dilutive loss per share	$	(7,062,652	)		48,215,919	$	(0.15	)

C_STOCKHOLDERS_EQUITY_Details

C. STOCKHOLDERS EQUITY (Details)	Dec. 31, 2014
Incentive Stock Option Plans
Total Shares Reserved Under Plans	1,960,000
Plans Reserved forOutstanding Options	1,710,997
Remaining Options/Shares Under Plans	3,303
Non-Qualified Stock Option Plans
Total Shares Reserved Under Plans	5,680,000
Plans Reserved forOutstanding Options	5,023,652
Remaining Options/Shares Under Plans	99,429
Stock Bonus Plans
Total Shares Reserved Under Plans	1,594,000
Shares Issued as Stock Bonus	1,162,612
Remaining Options/Shares Under Plans	430,632
Stock Compensation Plan
Total Shares Reserved Under Plans	1,350,000
Shares Issued as Stock Bonus	1,316,949
Remaining Options/Shares Under Plans	33,051
Incentive Stock Bonus Plan
Total Shares Reserved Under Plans	16,000,000
Shares Issued as Stock Bonus	15,700,000
Remaining Options/Shares Under Plans	300,000

C_STOCKHOLDERS_EQUITY_Details_

C. STOCKHOLDERS EQUITY (Details 1) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
C. Stockholders Equity Details 1
Employees	$3,059,791	$510,278
Non-employees	$189,144	$214,720

C_STOCKHOLDERS_EQUITY_Details_1

C. STOCKHOLDERS EQUITY (Details 2) (USD $)	3 Months Ended
	Dec. 31, 2014
SchleuningSeriesAMember
STOCKHOLDERS' EQUITY
Issue Date	7/8/09
Shares Issuable upon Exercise of Warrant	16,750
Exercise Price	$5
Expiration Date	1/8/15
Series C [Member]
STOCKHOLDERS' EQUITY
Issue Date	8/20/09
Last Issue Date	8/26/09
Shares Issuable upon Exercise of Warrant	463,487
Exercise Price	$5.50
Expiration Date	2/20/15
Series H [Member]
STOCKHOLDERS' EQUITY
Issue Date	1/26/12
Shares Issuable upon Exercise of Warrant	1,200,000
Exercise Price	$5
Expiration Date	8/1/15
Series Q [Member]
STOCKHOLDERS' EQUITY
Issue Date	6/21/12
Shares Issuable upon Exercise of Warrant	1,200,000
Exercise Price	$5
Expiration Date	12/22/15
SeriesRMember
STOCKHOLDERS' EQUITY
Issue Date	12/6/12
Shares Issuable upon Exercise of Warrant	2,625,000
Exercise Price	$4
Expiration Date	12/6/16
Series S [Member]
STOCKHOLDERS' EQUITY
Issue Date	10/11/13
Last Issue Date	10/24/14
Shares Issuable upon Exercise of Warrant	25,928,010
Exercise Price	$1.25
Expiration Date	10/11/18
Series U [Member]
STOCKHOLDERS' EQUITY
Issue Date	4/17/14
Shares Issuable upon Exercise of Warrant	445,514
Exercise Price	$1.75
Expiration Date	10/17/17
Series L Repriced [Member]
STOCKHOLDERS' EQUITY
Issue Date	4/18/07
Shares Issuable upon Exercise of Warrant	70,000
Exercise Price	$2.50
Expiration Date	4/2/15
Series N [Member]
STOCKHOLDERS' EQUITY
Issue Date	8/18/08
Shares Issuable upon Exercise of Warrant	2,844,627
Exercise Price	$0.53
Expiration Date	8/18/15
Series P [Member]
STOCKHOLDERS' EQUITY
Issue Date	2/10/12
Shares Issuable upon Exercise of Warrant	590,001
Exercise Price	$4.50
Expiration Date	3/6/17
Warrants Held by Officer And Director [Member]
STOCKHOLDERS' EQUITY
Issue Date	7/6/09
Shares Issuable upon Exercise of Warrant	184,930
Exercise Price	$5
Expiration Date	1/6/15
Consultants [Member]
STOCKHOLDERS' EQUITY
Issue Date	2/15/05
Last Issue Date	4/25/14
Shares Issuable upon Exercise of Warrant	149,500
Exercise Price	$0.85
Exercise Price Minimum	$20
Expiration Date	2/15/15
Last Expiration Date	12/27/17

C_STOCKHOLDERS_EQUITY_Details_2

C. STOCKHOLDERS EQUITY (Details 3) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Sep. 30, 2014
C. Stockholders Equity Details 3
Series A through E	$0		$6,105
Series H warrants	12,000		12,000
Series Q warrants	12,000		12,000
Series R warrants	26,250		157,500
Series S warrants	3,707,706		5,197,352
Series U warrants	45,057		120,289
Series A through E	6,105	0
Series H warrants	0	24,000
Series N	0	-489,754
Series Q warrants	0	24,000
Series R warrants	131,250	131,250
Series S warrants	1,950,383	1,921,321
Series U warrants	75,232	0
Total derivative liabilities	3,803,013		5,505,246
Net gain on derivative instruments	$2,162,970	$1,610,817

C_STOCKHOLDERS_EQUITY_Details_3

C. STOCKHOLDERS EQUITY (Details Narrative) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Options granted to employees and directors	1,000	0
Amount excluded from non-employee stock compensation expense for future services to be performed	$32,857	$55,362
Expense recorded for consulting arrangement	189,144	71,586
Prepaid consulting expenses	$32,857	$26,468

D_FAIR_VALUE_MEASUREMENTS_Deta

D. FAIR VALUE MEASUREMENTS (Details) (USD $)	Dec. 31, 2014	Sep. 30, 2014
Level1
FAIR VALUE MEASUREMENTS
Derivative instruments	$3,707,706	$5,197,352
Level2
FAIR VALUE MEASUREMENTS
Derivative instruments	0	0
Level3
FAIR VALUE MEASUREMENTS
Derivative instruments	95,307	307,894
Total
FAIR VALUE MEASUREMENTS
Derivative instruments	$3,803,013	$5,505,246

D_FAIR_VALUE_MEASUREMENTS_Deta1

D. FAIR VALUE MEASUREMENTS (Details 1) (USD $)	3 Months Ended	12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014
D. Fair Value Measurements Details 1
Beginning balance	$307,894	$433,024
Issuances	0	7,791,448
Settlements	0	-1,445,528
Transfers to Level 1	0	-7,321,071
Realized and unrealized (gains) losses	-212,587	850,021
Ending balance	$95,307	$307,894

E_LOANS_FROM_OFFICER_Details_N

E. LOANS FROM OFFICER (Details Narrative) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
E. Loans From Officer Details Narrative
Interest expense paid to Mr. de Clara	$41,402	$55,203

H_PATENTS_Details

H. PATENTS (Details) (USD $)	Dec. 31, 2014	Sep. 30, 2014
H. Patents Details
Nine months ending September 30, 2015	$26,938
Year ending September 30, 2016	36,051
Year ending September 30, 2017	36,051
Year ending September 30, 2018	35,716
Year ending September 30, 2019	34,014
Year ending September 30, 2020	30,820
Thereafter	114,886
Total	$314,476	$323,588

H_PATENTS_Details_Narrative

H. PATENTS (Details Narrative) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
H. Patents Details Narrative
Patent impairment charges	$0	$240
Amortization of patent costs	$9,112	$9,703

I_NET_LOSS_PER_SHARE_Details

I. NET LOSS PER SHARE (Details) (USD $)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
I. Net Loss Per Share Details
Net loss - available to common shareholders	($7,845,318)	($5,451,865)
Less: Gain on derivative instruments	-2,162,970	-1,610,817
Net loss - diluted	($10,008,288)	($7,062,652)
Weighted average number of shares - basic and diluted	88,960,783	48,215,919
Earnings per share - basic	($0.09)	($0.11)
Earnings per share - diluted	($0.11)	($0.15)

I_NET_LOSS_PER_SHARE_Details_N

I. NET LOSS PER SHARE (Details Narrative)	3 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share	15,700,000
Options and warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share	39,452,000	40,866,000