CEL-SCI (CVM) 10-Q 9 Aug 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2016	Aug. 01, 2016
Document And Entity Information
Entity Registrant Name	CEL SCI CORP
Entity Central Index Key	725,363
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--09-30
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		145,349,718
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Jun. 30, 2016	Sep. 30, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 5,218,960	$ 5,726,682
Receivables	790,658	87,214
Prepaid expenses	713,549	979,655
Deposits - current portion	150,000	150,000
Inventory used for R&D and manufacturing	1,259,458	1,401,839
Deferred rent - current portion	444,349	487,793
Total current assets	8,576,974	8,833,183
RESEARCH AND OFFICE EQUIPMENT, net	250,552	307,466
PATENT COSTS, net	266,493	291,564
DEFERRED RENT - net of current portion	3,565,684	4,044,473
DEPOSITS	1,820,917	1,970,917
TOTAL ASSETS	14,480,620	15,447,603
CURRENT LIABILITIES:
Accounts payable	4,437,389	5,128,682
Accrued expenses	520,973	88,575
Due to employees	316,804	365,131
Related party loan	0	1,104,057
Deferred rent - current portion	4,037	9,997
Lease obligation - current portion	2,309	9,028
Total current liabilities	5,281,512	6,705,470
Derivative instruments	12,823,052	13,686,587
Deferred revenue	126,501	126,639
Deferred rent - net of current portion	18,378	9,026
Deposits held	5,000	5,000
Total liabilities	18,254,443	20,532,722
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' DEFICIT
Preferred stock, $.01 par value--200,000 shares authorized;-0- shares issued and outstanding	0	0
Common stock, $.01 par value - 600,000,000 shares authorized, 145,146,097 shares and 112,360,568 shares issued and outstanding at June 30, 2016 and September 30, 2015, respectively	1,451,461	1,123,606
Additional paid-in capital	279,328,561	267,992,754
Accumulated deficit	(284,553,845)	(274,201,479)
Total stockholders' deficit	(3,773,823)	(5,085,119)
TOTAL LIABILITIES AND STOCKHOLDERS DEFICIT	$ 14,480,620	$ 15,447,603

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2016	Sep. 30, 2015
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	145,146,097	112,360,568
Common Stock Shares Outstanding	145,146,097	112,360,568

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
GRANT INCOME AND OTHER	$ 129,975	$ 389,223	$ 183,726	$ 723,681
OPERATING EXPENSES:
Research and development	4,838,108	5,727,577	14,636,197	15,701,986
General & administrative	1,674,614	2,863,121	3,987,011	10,978,254
Total operating expenses	6,512,722	8,590,698	18,623,208	26,680,240
OPERATING LOSS	(6,382,747)	(8,201,475)	(18,439,482)	(25,956,559)
GAIN ON DERIVATIVE INSTRUMENTS	2,508,744	4,428,780	8,037,974	1,808,954
LOSS ON DEBT EXTINGUISHMENT	0	(641,276)	0	(641,276)
INTEREST INCOME (EXPENSE), NET	24,679	(15,166)	49,142	(41,810)
NET LOSS	$ (3,849,324)	$ (4,429,137)	$ (10,352,366)	$ (24,830,691)
NET LOSS PER COMMON SHARE
BASIC	$ (0.03)	$ (0.05)
DILUTED	$ (0.03)	$ (0.06)
BASIC and DILUTED			$ (0.09)	$ (0.32)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
BASIC	124,132,500	83,796,311
DILUTED	124,132,500	85,134,107
BASIC AND DILUTED			117,412,443	77,625,511

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (10,352,366)	$ (24,830,691)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	118,272	163,431
Issuance of common stock and options for services	618,890	437,729
Equity based compensation	1,263,662	4,570,999
Common stock contributed to 401(k) plan	120,693	123,066
Loss on retired equipment	115	313
Gain on derivative instruments	(8,037,974)	(1,808,954)
Loss on debt extinguishment	0	641,276
(Increase)/decrease in assets:
Receivables	5,854	(76,672)
Deferred rent	522,233	559,828
Prepaid expenses	267,742	(283,864)
Inventory used for R&D and manufacturing	142,381	36,513
Deposits	150,000	150,000
Increase/(decrease) in liabilities:
Accounts payable	(1,079,423)	1,856,635
Accrued expenses	86,398	(117,207)
Due to employees	(48,327)	95,214
Deferred rent liability	3,392	(5,795)
Deferred revenue	(138)	(1,591)
Net cash used in operating activities	(16,218,596)	(18,489,770)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of equipment	(31,405)	(56,616)
Expenditures for patent costs	(5,008)	(9,422)
Net cash used in investing activities	(36,413)	(66,038)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock and warrants	16,858,029	21,278,905
Payments on related party loan	(1,104,057)
Payments on obligations under capital lease	(6,685)	(6,290)
Net cash provided by financing activities	15,747,287	21,272,615
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(507,722)	2,716,807
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	5,726,682	8,513,620
CASH AND CASH EQUIVALENTS, END OF PERIOD	5,218,960	11,230,427
ACCOUNTS PAYABLE
Increase in receivables	363,298	0
Increase in research and office equipment	0	12,625
(Decrease) in patent costs	(12)	(975)
Decrease in capital lease obligation	34	32
Increase in direct financing costs	24,810	128,630
(Increase) in accounts payable	(388,130)	(140,312)
Total	0	0
ACCRUED EXPENSES
Increase in receivables	346,000	0
(Increase) in accrued expenses	(346,000)	0
Total	0	0
ADDITIONAL PAID IN CAPITAL
(Increase) in derivative liabilities	(7,174,439)	(8,463,957)
Decrease in common stock	0	1,000
Increase in prepaid services	1,636	20,464
Decrease in additional paid in capital	7,172,803	8,442,493
Total	0
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:
Cash paid for interest expense	$ 43,646	$ 124,914

A. SUMMARY OF SIGNIFICANT ACCOU

A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Jun. 30, 2016
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, 2015. 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 June 30, 2016 and the results of its operations for the nine and three months then ended. The condensed balance sheet as of September 30, 2015 is derived from the September 30, 2015 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 nine and three months ended June 30, 2016 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 Patents Research and Development Costs Income Taxes Derivative Instruments Deferred Rent (Asset) Stock-Based Compensation 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 options issued are 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 common 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

B. NEW ACCOUNTING PRONOUNCEMENT

B. NEW ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Jun. 30, 2016
Accounting Changes and Error Corrections [Abstract]
B. NEW ACCOUNTING PRONOUNCEMENTS	In January 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. 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	9 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
C. STOCKHOLDERS' EQUITY	Stock options, stock bonuses and compensation granted by the Company as of June 30, 2016 are as follows: Name of Plan Total Shares Reserved Under Plans Shares Reserved for Outstanding Options Shares Issued Remaining Options/Shares Under Plans Incentive Stock Options Plans 1,960,000 1,685,966 N/A 11,334 Non-Qualified Stock Option Plans 7,680,000 6,005,721 N/A 1,062,861 Stock Bonus Plans 3,594,000 N/A 2,562,950 1,030,223 Stock Compensation Plan 3,350,000 N/A 1,767,047 1,549,905 Incentive Stock Bonus Plan 16,000,000 N/A 15,600,000 400,000 Stock options, stock bonuses and compensation granted by the Company as of September 30, 2015 are as follows: Name of Plan Total Shares Reserved Under Plans Shares Reserved for Outstanding Options Shares Issued Remaining Options/Shares Under Plans Incentive Stock Option Plans 1,960,000 1,690,665 N/A 6,635 Non-Qualified Stock Option Plans 7,680,000 5,849,103 N/A 1,219,479 Bonus Plans 3,594,000 N/A 1,643,714 1,949,459 Stock Compensation Plan 3,350,000 N/A 1,423,999 1,892,950 Incentive Stock Bonus Plan 16,000,000 N/A 15,600,000 400,000 Stock option activity Nine Months Ended June 30, 2016 2015 Granted 210,000 803,700 Forfeited 55,998 137,249 Three Months Ended June 30, 2016 2015 Granted 0 801,700 Forfeited 5,000 27,833 No shares of restricted stock were forfeited from the Incentive Stock Bonus Plan during the nine and three months ended June 30, 2016. During the nine and three months ended June 30, 2015, 100,000 and 0 shares, respectively, of non-vested restricted stock were forfeited. Stock-Based Compensation Expense Nine Months Ended June 30, 2016 2015 Employees $ 1,263,662 $ 4,570,999 Non-employees $ 618,890 $ 437,729 Three months Ended June 30, 2016 2015 Employees $ 418,562 $ 619,145 Non-employees $ 146,830 $ 137,600 Employee compensation expense includes the expense related to options issued or vested and restricted stock. Non-employee expense includes the expense related to options and stock issued to consultants expensed over the period of their service contracts. Derivative Liabilities, Warrants and Other Options The following chart presents the derivative liabilities, warrants and other options outstanding during the quarter ended June 30, 2016: Warrant Issue Date Shares Issuable upon Exercise of Warrant Exercise Price Expiration Date Refer-ence Series R 12/6/12 2,625,000 $ 4.00 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 V 5/28/15 20,253,164 $ 0.79 5/28/20 1 Series W 10/28/15 17,223,248 $ 0.67 10/28/20 1 Series Z 5/23/16 6,600,000 $ 0.55 11/23/21 1 Series ZZ 5/23/16 500,000 $ 0.55 5/18/21 1 Series X 1/13/16 3,000,000 $ 0.37 1/13/21 2 Series Y 2/15/16 650,000 $ 0.48 2/15/21 2 Series N 8/18/08 2,844,627 $ 0.53 8/18/17 Series P 2/10/12 590,001 $ 4.50 3/6/17 Consultants 12/2/11- 1/1/16 440,000 $ 0.37- $3.50 10/27/16- 12/31/18 3 The following chart presents the derivative liabilities, warrants and other options outstanding at September 30, 2015: Warrant Issue Date Shares Issuable upon Exercise of Warrants Exercise Price Expiration Date Refer-ence Series N 8/18/08 2,844,627 0.53 8/18/17 Series Q 6/21/12 1,200,000 5.00 12/22/15 1 Series R 12/6/12 2,625,000 4.00 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 V 5/28/15 20,253,164 0.79 5/28/20 1 Series P 2/10/12 590,001 4.50 3/6/17 Consultants 10/14/05 – 7/1/15 238,000 0.66 – 20.00 10/14/15 - 6/30/18 3 1. Derivative Liabilities The table below presents the derivative instruments and their respective balances at the balance sheet dates: June 30, 2016 September 30, 2015 Series S warrants $ 3,930,686 $ 7,363,555 Series U warrants 4,455 44,551 Series V warrants 3,443,038 6,278,481 Series W warrants 3,557,971 - Series Z warrants 1,756,982 - Series ZZ warrants 129,920 - Total derivative liabilities $ 12,823,052 $ 13,686,587 The gains on the derivative instruments are as follows: Nine Months Ended June 30, 2016 2015 Series A through E warrants $ - $ 6,105 Series H warrants - 12,000 Series Q warrants - 12,000 Series R warrants - 131,250 Series S warrants 3,432,869 472,487 Series U warrants 40,096 74,352 Series V warrants 2,835,443 1,100,760 Series W warrants 1,502,800 - Series Z warrants 210,848 - Series ZZ warrants 15,918 - Gain on derivative instruments $ 8,037,974 $ 1,808,954 Three Months Ended June 30, 2016 2015 Series H warrants $ - $ 12,000 Series Q warrants - 12,000 Series R warrants - 105,000 Series S warrants 285,208 3,111,361 Series U warrants 13,366 87,659 Series V warrants 1,012,658 1,100,760 Series W warrants 970,746 Series Z warrants 210,848 - Series ZZ warrants 15,918 - Gain on derivative instruments $ 2,508,744 $ 4,428,780 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 Warrants On May 23, 2016, the Company closed a registered direct offering of 10,000,000 shares of common stock and 6,600,000 Series Z warrants to purchase shares of common stock. The common stock and warrants were sold at a combined per unit price of $0.50 for net proceeds of approximately $4.6 million, net of placement agent’s commissions and offering expenses. The Series Z warrants may be exercised at any time on or after November 23, 2016 and on or before November 23, 2021 at a price of $0.55 per share. The Company also issued 500,000 Series ZZ warrants to the placement agent as part of its compensation. The Series ZZ warrants may be exercised at any time on or after November 23, 2016 and on or before May 18, 2021 at a price of $0.55 per share. The fair value of the Series Z and Series ZZ warrants of $2.1 million on the date of issuance was recorded as a warrant liability. On October 28, 2015, the Company closed an underwritten public offering of 17,223,248 shares of common stock and 17,223,248 Series W warrants to purchase shares of common stock. The common stock and warrants were sold at a combined per unit price of $0.67 for net proceeds of approximately $10.5 million, net of underwriting discounts and commissions and offering expenses. The Series W warrants are immediately exercisable at a price of $0.67 and expire on October 28, 2020. The fair value of the Series W warrants of $5.1 million on the date of issuance was recorded as warrant liability. Expiration of Warrants On December 22, 2015, 1,200,000 Series Q warrants, with an exercise price of $5.00, expired. The fair value of the Series Q warrants was $0 on the date of expiration. 2. Equity-based warrants In January 2016, the Company sold 3,000,000 shares of its common stock and 3,000,000 Series X warrants to the de Clara Trust for approximately $1.1 million. The de Clara Trust is controlled by Geert Kersten, the Company's Chief Executive Officer and a director. Each Series X warrant allows the de Clara Trust to purchase one share of the Company's common stock at a price of $0.37 per share at any time on or before January 13, 2021. The Series X warrants qualify for equity treatment in accordance with ASC 815. The relative fair value of the warrants was calculated to be approximately $417,000. In February 2016, the Company sold 1,300,000 shares of its common stock and 650,000 Series Y warrants to a private investor for $624,000. Each Series Y warrant allows the holder to purchase one share of the Company's common stock at a price of $0.48 per share at any time on or before February 15, 2021. The Series Y warrants qualify for equity treatment in accordance with ASC 815. The relative fair value on the date of issuance of the warrants was calculated to be approximately $144,000. 3. Options and shares issued to consultants The Company typically enters into consulting arrangements in exchange for common stock or stock options. During the nine and three months ended June 30, 2016, the Company issued 990,045 and 186,267 shares of common stock, respectively, of which 647,000 and 67,000, respectively, were restricted shares. Under these arrangements, the common stock was issued with stock prices ranging between $0.37 and $0.72 per share. During the nine and three months ended June 30, 2015, the Company issued 584,476 and 160,492 shares of common stock, respectively, of which 127,000 and 58,000, respectively, were restricted shares. Under these arrangements, the common stock was issued with stock prices ranging between $0.57 and $1.11 per share. Additionally, during the nine and three months ended June 30, 2016, the Company issued 210,000 and 0 of fully vested options, respectively, to purchase common stock with a fair value ranging between $0.19 and $0.30 per share. During the nine and three months ended June 30, 2015, the Company issued 40,000 and 0 options, respectively, to purchase common stock with a fair value of $0.50 per share. The aggregate values of the issuances of restricted common stock and common stock options are recorded as prepaid expenses and are charged to general and administrative expenses over the periods of service. During the nine and three months ended June 30, 2016, the Company recorded total expense of approximately $619,000 and $147,000, respectively, relating to these consulting agreements. During the nine and three months ended June 30, 2015, the Company recorded total expense of approximately $438,000 and $138,000, respectively, relating to these consulting agreements. At June 30, 2016 and September 30, 2015, approximately $32,000 and $30,000, respectively, are included in prepaid expenses. As of June 30, 2016, 440,000 vested options issued to consultants as payment for services remained outstanding, all of which were issued from the Non-Qualified Stock Option plans.

D. FAIR VALUE MEASUREMENTS

D. FAIR VALUE MEASUREMENTS	9 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
D. FAIR VALUE MEASUREMENTS	In accordance with ASC 820-10, “Fair Value Measurements,” 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 June 30, 2016: Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Derivative instruments $ 3,930,686 $ - $ 8,892,366 $ 12,823,052 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, 2015: Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Derivative instruments $ 7,363,555 $ - $ 6,323,032 $ 13,686,587 The following sets forth the reconciliation of beginning and ending balances related to fair value measurements using significant unobservable inputs (Level 3) for the nine months ended June 30, 2016 and the year ended September 30, 2015: (9 months ended) (12 months ended) June 30, 2016 September 30, 2015 Beginning balance $ 6,323,032 $ 307,894 Issuances 7,174,439 8,003,220 Realized and unrealized gains (4,605,105 ) (1,988,082 ) Ending balance $ 8,892,366 $ 6,323,032 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. RELATED PARTY LOAN

E. RELATED PARTY LOAN	9 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
E. RELATED PARTY LOAN	On January 12, 2016, the Company owed the de Clara Trust $1,105,989, which amount included accrued and unpaid interest. On January 13, 2016, the de Clara Trust demanded payment on the note payable. At the same time the Company sold 3,000,000 shares of its common stock and 3,000,000 Series X warrants to the de Clara Trust for approximately $1.1 million. Each warrant allows the de Clara Trust to purchase one share of the Company's common stock at a price of $0.37 per share at any time on or before January 13, 2021. Prior to the repayment, on June 29, 2015, the Company had extended the maturity date of the note to July 6, 2017, lowered the interest rate from 15% to 9% and changed the conversion price from $4.00 to $0.59, the closing stock price on the previous trading day. The Company determined these modifications to be substantive and accounted for the modification as an extinguishment of the pre-modification note and issuance of the post-modification note. The Company recorded an extinguishment loss and a premium on the note payable of approximately $166,000. The premium was credited to additional paid-in capital. During the nine and three months ended June 30, 2016, the Company paid approximately $43,000 and $0, respectively, in interest expense to Mr. de Clara. During the nine and three months ended June 30, 2015, the Company paid approximately $124,000 and $41,000, respectively, in interest expense to Mr. de Clara.

F. OPERATIONS AND FINANCING

F. OPERATIONS AND FINANCING	9 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
F. OPERATIONS AND 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 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 3 clinical trial for head and neck cancer with its partners TEVA Pharmaceuticals and Orient Europharma. During the nine months ended June 30, 2016, the Company raised $16.8 million in net proceeds from public and private sales of common stock and warrants. To finance the study for the next twelve months and beyond, the Company plans to raise additional capital in the form of corporate partnerships, as well as debt and/or equity financings. The Company believes that it will be able to obtain additional financing because it has done so consistently in the past and because Multikine is a product in the Phase 3 clinical trial stage. However, the operating plan may change as a result of many factors currently unknown to the Company, and the Company may need additional funds sooner than planned. There can be no assurance that the Company will be successful in raising additional funds on a timely basis or that the funds will be available to the Company on acceptable terms or at all. If the Company does not raise the necessary amounts of money, it will either have to slow the development of the Phase 3 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 3 clinical trial for Multikine, the Company has spent approximately $31.9 million as of June 30, 2016 on direct costs for the Phase 3 clinical trial. The financial statements have been prepared assuming that the Company will continue as a going concern, but due to recurring losses from operations and future liquidity needs, there is substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

G. COMMITMENTS AND CONTINGENCIE

G. COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Jun. 30, 2016
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. The agreement required the Company to make $600,000 in advanced payments which are being credited back in $150,000 annual increments through December 2017. As of June 30, 2016, the total balance advanced is $300,000, of which $150,000 is classified as a current asset. In April 2013, the Company entered into a co-development and revenue sharing agreement with Ergomed. Under the co-development and revenue sharing agreement with Ergomed 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 inVentiv Health Clinical, LLC, or inVentiv, 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. Currently, the Company is seeking at least $50 million in damages in its amended statement of claim. Based upon further analysis, however, the Company believes that its damages (direct and consequential) presently total over $150 million. 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 the motion to dismiss. In an amended statement of claim, the Company asserted the claims set forth above as well as an additional claim for professional malpractice. The arbitrator subsequently granted inVentiv’s motion to dismiss the professional malpractice claim based on the “economic loss doctrine” under New Jersey law, a legal doctrine that, under certain circumstances, prohibits bringing a negligence-based claim alongside a claim for breach of contract. The arbitrator denied the remainder of inVentiv’s motion, which had sought to dismiss certain other aspects of the amended statement of claim. In particular, the arbitrator rejected inVentiv’s argument that several aspects of the amended statement of claim were beyond the arbitrator’s jurisdiction. In connection with the pending arbitration proceedings, inVentiv has asserted counterclaims against the Company for (i) breach of contract, seeking at least $2 million in damages for services allegedly performed by inVentiv; (ii) breach of contract, seeking at least $1 million in damages for the Company’s alleged use of inVentiv’s name in connection with publications and promotions in violation of the parties’ contract; (iii) opportunistic breach, restitution and unjust enrichment, seeking at least $20 million in disgorgement of alleged unjust profits allegedly made by the Company as a result of the purported breaches referenced in subsection (ii); and (iv) defamation, seeking at least $1 million in damages for allegedly defamatory statements made about inVentiv. The Company believes inVentiv’s counterclaims are meritless and intends to vigorously defend against them. However, if such defense is unsuccessful, and inVentiv successfully asserts any of its counterclaims, such an adverse determination could have a material adverse effect on the Company’s business, results, financial condition and liquidity. In October 2015, the Company signed a funding agreement with a company established by Lake Whillans Litigation Finance, LLC, a firm specializing in funding litigation expenses. Pursuant to the agreement, an affiliate of Lake Whillans will provide the Company funding for litigation expenses to support its arbitration claims against inVentiv. The funding is available to the Company as needed to fund the expenses of the ongoing arbitration and will only be repaid when the Company receives proceeds from the arbitration. During the nine months ended June 30, 2016, the Company recognized a gain of approximately $1.1 million on the derecognition of legal fees to record the transfer of the liability that existed prior to the execution of the financing agreement from the Company to Lake Whillans. The gain on derecognition of legal fees is recorded as a reduction of general and administration expenses on the Statement of Operations. All related legal fees are directly billed to and paid by Lake Whillans. As part of the agreement with Lake Whillans, the law firm agreed to cap its fees and expenses for the arbitration at $5 million. The arbitration hearing on the merits (the “trial”) has been scheduled to commence on September 7, 2016. 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 3 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 contract. When the Company meets the minimum cash balance required by the lease, the deposit will be returned to the Company. The $1,670,917 deposit is included in non-current assets at June 30, 2016 and September 30, 2015. The Company subleases a portion of its rental space on a month to month term lease, which requires a 30 day notice for termination. Effective February 1, 2016, the parties agreed to a 3% rental increase. As of that date, the Company receives $5,628 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 approximately $11,000 per month. As of June 30, 2016 and September 30, 2015, the Company has recorded a deferred rent liability of $4,000 and $6,000, respectively. The Company leases office headquarters under a 60 month lease which expires June 30, 2020. 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 approximately $8,000 per month. As of June 30, 2016 and September 30, 2015, the Company has recorded a deferred rent liability of $19,000 and $13,000, respectively. The Company leased 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	9 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
H. PATENTS	During the nine and three months ended June 30, 2016 and 2015, no patent impairment charges were recorded. For the nine and three months ended June 30, 2016, amortization of patent costs totaled approximately $30,000 and $12,000, respectively. For the nine and three months ended June 30, 2015, amortization of patent costs totaled approximately $31,000 and $12,000, respectively. Amortization of patent costs is included in general and administrative expenses on the Statement of Operations. The Company estimates that future amortization expense will be as follows: Three months ending September 30, 2016 $ 9,210 Year ending September 30, 2017 36,841 2018 36,507 2019 34,804 2020 31,611 2021 28,311 Thereafter 89,209 Total $ 266,493

I. LOSS PER COMMON SHARE

I. LOSS PER COMMON SHARE	9 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
I. LOSS PER COMMON SHARE	The following tables provide the details of the basic and diluted loss per-share (LPS) computations: Nine Months Ended June 30, 2016 Net Loss Weighted Average Shares LPS Basic and dilutive LPS $ (10,352,366 ) 117,412,443 $ (0.09 ) Three Months Ended June 30, 2016 Net Loss Weighted Average Shares LPS Basic and dilutive LPS $ (3,849,324 ) 124,132,500 $ (0.03 ) Nine Months Ended June 30, 2015 Net Loss Weighted Average Shares LPS Basic and dilutive LPS $ (24,830,691 ) 77,625,511 $ (0.32 ) Three Months Ended June 30, 2015 Net Loss Weighted Average Shares LPS Basic LPS $ (4,429,137 ) 83,796,311 $ (0.05 ) Gain on derivatives (1,100,760 ) 1,337,796 Dilutive LPS $ (5,529,897 ) 85,134,107 $ (0.06 ) 21 In accordance with the contingently issuable shares guidance of FASB ASC Topic 260, Earnings Per Share 2016 2015 Options and Warrants 86,066,292 38,786,333 Convertible Debt - 1,871,283 Unvested Restricted Stock 15,100,000 15,100,000 Total 101,166,292 55,757,616

J. SUBSEQUENT EVENTS

J. SUBSEQUENT EVENTS	9 Months Ended
	Jun. 30, 2016
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. SUMMARY OF SIGNIFICANT ACC16

A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (POLICIES)	9 Months Ended
	Jun. 30, 2016
A. 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, 2015. 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 June 30, 2016 and the results of its operations for the nine and three months then ended. The condensed balance sheet as of September 30, 2015 is derived from the September 30, 2015 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 nine and three months ended June 30, 2016 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. Research and office equipment 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 in the period identified. 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 June 30, 2016 and September 30, 2015.
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 reporting 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 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 options issued are 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 common 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. Such reclassifications include approximately $145,000 between related party notes payable and additional paid-in capital to reflect the modification of the note payable to the de Clara Trust in July 2015, which was accounted for as an extinguishment.

C. STOCKHOLDERS EQUITY (Tables)

C. STOCKHOLDERS EQUITY (Tables)	9 Months Ended
	Jun. 30, 2016
C. Stockholders Equity Tables
Stock options, stock bonuses and compensation granted by the Company	Stock options, stock bonuses and compensation granted by the Company as of June 30, 2016 are as follows: Name of Plan Total Shares Reserved Under Plans Shares Reserved for Outstanding Options Shares Issued Remaining Options/Shares Under Plans Incentive Stock Options Plans 1,960,000 1,685,966 N/A 11,334 Non-Qualified Stock Option Plans 7,680,000 6,005,721 N/A 1,062,861 Stock Bonus Plans 3,594,000 N/A 2,562,950 1,030,223 Stock Compensation Plan 3,350,000 N/A 1,767,047 1,549,905 Incentive Stock Bonus Plan 16,000,000 N/A 15,600,000 400,000 Stock options, stock bonuses and compensation granted by the Company as of September 30, 2015 are as follows: Name of Plan Total Shares Reserved Under Plans Shares Reserved for Outstanding Options Shares Issued Remaining Options/Shares Under Plans Incentive Stock Option Plans 1,960,000 1,690,665 N/A 6,635 Non-Qualified Stock Option Plans 7,680,000 5,849,103 N/A 1,219,479 Bonus Plans 3,594,000 N/A 1,643,714 1,949,459 Stock Compensation Plan 3,350,000 N/A 1,423,999 1,892,950 Incentive Stock Bonus Plan 16,000,000 N/A 15,600,000 400,000 Stock option activity Nine Months Ended June 30, 2016 2015 Granted 210,000 803,700 Forfeited 55,998 137,249 Three Months Ended June 30, 2016 2015 Granted 0 801,700 Forfeited 5,000 27,833 No shares of restricted stock were forfeited from the Incentive Stock Bonus Plan during the nine and three months ended June 30, 2016. During the nine and three months ended June 30, 2015, 100,000 and 0 shares, respectively, of non-vested restricted stock were forfeited.
Schedule of employees and non-employees stock compensation	Stock-Based Compensation Expense Nine Months Ended June 30, 2016 2015 Employees $ 1,263,662 $ 4,570,999 Non-employees $ 618,890 $ 437,729 Three months Ended June 30, 2016 2015 Employees $ 418,562 $ 619,145 Non-employees $ 146,830 $ 137,600
Derivative Liabilities, Warrants and Other Options	Warrant Issue Date Shares Issuable upon Exercise of Warrant Exercise Price Expiration Date Refer-ence Series R 12/6/12 2,625,000 $ 4.00 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 V 5/28/15 20,253,164 $ 0.79 5/28/20 1 Series W 10/28/15 17,223,248 $ 0.67 10/28/20 1 Series Z 5/23/16 6,600,000 $ 0.55 11/23/21 1 Series ZZ 5/23/16 500,000 $ 0.55 5/18/21 1 Series X 1/13/16 3,000,000 $ 0.37 1/13/21 2 Series Y 2/15/16 650,000 $ 0.48 2/15/21 2 Series N 8/18/08 2,844,627 $ 0.53 8/18/17 Series P 2/10/12 590,001 $ 4.50 3/6/17 Consultants 12/2/11- 1/1/16 440,000 $ 0.37- $3.50 10/27/16- 12/31/18 3 11 The following chart presents the derivative liabilities, warrants and other options outstanding at September 30, 2015: Warrant Issue Date Shares Issuable upon Exercise of Warrants Exercise Price Expiration Date Refer-ence Series N 8/18/08 2,844,627 0.53 8/18/17 Series Q 6/21/12 1,200,000 5.00 12/22/15 1 Series R 12/6/12 2,625,000 4.00 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 V 5/28/15 20,253,164 0.79 5/28/20 1 Series P 2/10/12 590,001 4.50 3/6/17 Consultants 10/14/05 – 7/1/15 238,000 0.66 – 20.00 10/14/15 - 6/30/18 3
Tabular disclosure of derivative liabilities at fair value	The table below presents the derivative instruments and their respective balances at the balance sheet dates: June 30, 2016 September 30, 2015 Series S warrants $ 3,930,686 $ 7,363,555 Series U warrants 4,455 44,551 Series V warrants 3,443,038 6,278,481 Series W warrants 3,557,971 - Series Z warrants 1,756,982 - Series ZZ warrants 129,920 - Total derivative liabilities $ 12,823,052 $ 13,686,587
Schedule Of Gains and (Losses) on Derivative Liabilities	The gains on the derivative instruments are as follows: Nine Months Ended June 30, 2016 2015 Series A through E warrants $ - $ 6,105 Series H warrants - 12,000 Series Q warrants - 12,000 Series R warrants - 131,250 Series S warrants 3,432,869 472,487 Series U warrants 40,096 74,352 Series V warrants 2,835,443 1,100,760 Series W warrants 1,502,800 - Series Z warrants 210,848 - Series ZZ warrants 15,918 - Gain on derivative instruments $ 8,037,974 $ 1,808,954 Three Months Ended June 30, 2016 2015 Series H warrants $ - $ 12,000 Series Q warrants - 12,000 Series R warrants - 105,000 Series S warrants 285,208 3,111,361 Series U warrants 13,366 87,659 Series V warrants 1,012,658 1,100,760 Series W warrants 970,746 Series Z warrants 210,848 - Series ZZ warrants 15,918 - Gain on derivative instruments $ 2,508,744 $ 4,428,780

D. FAIR VALUE MEASUREMENTS (Tab

D. FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Jun. 30, 2016
D. Fair Value Measurements Tables
Measured at fair value on a recurring basis	Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Derivative instruments $ 3,930,686 $ - $ 8,892,366 $ 12,823,052 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, 2015: Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Derivative instruments $ 7,363,555 $ - $ 6,323,032 $ 13,686,587
Reconciliation of beginning and ending balances related to fair value measurements using significant unobservable inputs (Level 3)	(9 months ended) (12 months ended) June 30, 2016 September 30, 2015 Beginning balance $ 6,323,032 $ 307,894 Issuances 7,174,439 8,003,220 Realized and unrealized gains (4,605,105 ) (1,988,082 ) Ending balance $ 8,892,366 $ 6,323,032

H. PATENTS (Tables)

H. PATENTS (Tables)	9 Months Ended
	Jun. 30, 2016
H. Patents Tables
Schedule of total estimated future amortization	Three months ending September 30, 2016 $ 9,210 Year ending September 30, 2017 36,841 2018 36,507 2019 34,804 2020 31,611 2021 28,311 Thereafter 89,209 Total $ 266,493

I. LOSS PER COMMON SHARE (Table

I. LOSS PER COMMON SHARE (Tables)	9 Months Ended
	Jun. 30, 2016
I. Loss Per Common Share Tables
Computation of dilutive net loss per share	The following tables provide the details of the basic and diluted loss per-share (LPS) computations: Nine Months Ended June 30, 2016 Net Loss Weighted Average Shares LPS Basic and dilutive LPS $ (10,352,366 ) 117,412,443 $ (0.09 ) Three Months Ended June 30, 2016 Net Loss Weighted Average Shares LPS Basic and dilutive LPS $ (3,849,324 ) 124,132,500 $ (0.03 ) Nine Months Ended June 30, 2015 Net Loss Weighted Average Shares LPS Basic and dilutive LPS $ (24,830,691 ) 77,625,511 $ (0.32 ) Three Months Ended June 30, 2015 Net Loss Weighted Average Shares LPS Basic LPS $ (4,429,137 ) 83,796,311 $ (0.05 ) Gain on derivatives (1,100,760 ) 1,337,796 Dilutive LPS $ (5,529,897 ) 85,134,107 $ (0.06 )
Antidilutive securities	2016 2015 Options and Warrants 86,066,292 38,786,333 Convertible Debt - 1,871,283 Unvested Restricted Stock 15,100,000 15,100,000 Total 101,166,292 55,757,616

C. STOCKHOLDERS EQUITY (Details

C. STOCKHOLDERS EQUITY (Details) - shares	Jun. 30, 2016	Sep. 30, 2015
Incentive Stock Option Plans
Total Shares Reserved Under Plans	1,960,000	1,960,000
Shares Reserved for Outstanding Options	1,685,966	1,690,665
Remaining Options/Shares Under Plans	11,334	6,635
NonQualifiedStockOptionPlansMember
Total Shares Reserved Under Plans	7,680,000	7,680,000
Shares Reserved for Outstanding Options	6,005,721	5,849,103
Remaining Options/Shares Under Plans	1,062,861	1,219,479
Stock Bonus Plans
Total Shares Reserved Under Plans	3,594,000	3,594,000
Shares Issued	2,562,950	1,643,714
Remaining Options/Shares Under Plans	1,030,223	1,949,459
Stock Compensation Plan
Total Shares Reserved Under Plans	3,350,000	3,350,000
Shares Issued	1,767,047	1,423,999
Remaining Options/Shares Under Plans	1,549,905	1,892,950
Incentive Stock Bonus Plan
Total Shares Reserved Under Plans	16,000,000	16,000,000
Shares Issued	15,600,000	15,600,000
Remaining Options/Shares Under Plans	400,000	400,000

C. STOCKHOLDERS EQUITY (Detai22

C. STOCKHOLDERS EQUITY (Details 1) - shares	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
C. Stockholders Equity Details 1
Granted	0	801,700	210,000	803,700
Forfeited	5,000	27,833	55,998	137,249

C. STOCKHOLDERS EQUITY (Detai23

C. STOCKHOLDERS EQUITY (Details 2) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
C. Stockholders Equity Details 2
Employees	$ 418,562	$ 619,145	$ 1,263,662	$ 4,570,999
Non-employees	$ 146,830	$ 137,600	$ 618,890	$ 437,729

C. STOCKHOLDERS EQUITY (Detai24

C. STOCKHOLDERS EQUITY (Details 3) - $ / shares	9 Months Ended	12 Months Ended
	Jun. 30, 2016	Sep. 30, 2015
Series R [Member]
STOCKHOLDERS' EQUITY
Issue Date	12/6/2012	12/6/2012
Shares Issuable upon Exercise of Warrant	2,625,000	2,625,000
Exercise Price	$ 4	$ 4
Expiration Date	12/6/2016	12/6/2016
Series S [Member]
STOCKHOLDERS' EQUITY
Issue Date	10/11/13 -10/24/14	10/11/13- 10/24/14
Shares Issuable upon Exercise of Warrant	25,928,010	25,928,010
Exercise Price	$ 1.25	$ 1.25
Expiration Date	10/11/2018	10/11/2018
Series U [Member]
STOCKHOLDERS' EQUITY
Issue Date	4/17/2014	4/17/2014
Shares Issuable upon Exercise of Warrant	445,514	445,514
Exercise Price	$ 1.75	$ 1.75
Expiration Date	10/17/2017	10/17/2017
Series V [Member]
STOCKHOLDERS' EQUITY
Issue Date	5/28/2015	5/28/2015
Shares Issuable upon Exercise of Warrant	20,253,164	20,253,164
Exercise Price	$ 0.79	$ 0.79
Expiration Date	5/28/2020	5/28/2020
Series W [Member]
STOCKHOLDERS' EQUITY
Issue Date	10/28/2015
Shares Issuable upon Exercise of Warrant	17,223,248
Exercise Price	$ 0.67
Expiration Date	10/28/20
Series X [Member]
STOCKHOLDERS' EQUITY
Issue Date	1/13/2016
Shares Issuable upon Exercise of Warrant	3,000,000
Exercise Price	$ 0.37
Expiration Date	1/13/2021
Series Y [Member]
STOCKHOLDERS' EQUITY
Issue Date	2/15/2016
Shares Issuable upon Exercise of Warrant	650,000
Exercise Price	$ 0.48
Expiration Date	2/15/2021
Series N [Member]
STOCKHOLDERS' EQUITY
Issue Date	8/18/2008	8/18/2008
Shares Issuable upon Exercise of Warrant	2,844,627	2,844,627
Exercise Price	$ 0.53	$ 0.53
Expiration Date	8/18/2017	8/18/2017
Series P [Member]
STOCKHOLDERS' EQUITY
Issue Date	2/10/2012	2/10/2012
Shares Issuable upon Exercise of Warrant	590,001	590,001
Exercise Price	$ 4.5	$ 4.5
Expiration Date	3/6/2017	3/6/2017
Consultants [Member]
STOCKHOLDERS' EQUITY
Issue Date	12/2/11- 10/1/16	10/14/05 – 7/1/15
Shares Issuable upon Exercise of Warrant	440,000	238,000
Exercise Price Minimum	$ 0.37	$ 0.66
Exercise Price Maximum	$ 3.50	$ 20
Expiration Date	10/27/16- 12/31/18	10/14/15 - 6/30/18
Series Q [Member]
STOCKHOLDERS' EQUITY
Issue Date		6/21/2012
Shares Issuable upon Exercise of Warrant		1,200,000
Exercise Price		$ 5
Expiration Date		12/22/2015

C. STOCKHOLDERS EQUITY (Detai25

C. STOCKHOLDERS EQUITY (Details 4) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
C. Stockholders Equity Details 4
Series S warrants	$ 3,930,686		$ 3,930,686		$ 7,363,555
Series U warrants	4,455		4,455		44,551
Series V warrants	3,443,038		3,443,038		6,278,481
Series W warrants	3,557,971		3,557,971		0
Series Z warrants	1,756,982		1,756,982		0
Series ZZ warrants	129,920		129,920		0
Total derivative liabilities	12,823,052		12,823,052		$ 13,686,587
Series A through E warrants			0	$ 6,105
Series H warrants	0	$ 12,000	0	12,000
Series Q warrants	0	12,000	0	12,000
Series R warrants	0	105,000	0	131,250
Series S warrants	285,208	3,111,361	3,432,869	472,487
Series U warrants	13,366	87,659	40,096	74,352
Series V warrants	1,012,658	1,100,760	2,835,443	1,100,760
Series W warrants	970,746	0	1,502,800	0
Series Z warrants	210,848	0	210,848	0
Series ZZ warrants	15,918	0	15,918	0
Gain on derivative instruments	$ 2,508,744	$ 4,428,780	$ 8,037,974	$ 1,808,954

D. FAIR VALUE MEASUREMENTS (Det

D. FAIR VALUE MEASUREMENTS (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1)
Derivative instruments	$ 3,930,686	$ 7,363,555
Significant Other Observable Inputs (Level 2)
Derivative instruments	0	0
Significant Unobservable Inputs (Level 3)
Derivative instruments	8,892,366	6,323,032
Total
Derivative instruments	$ 12,823,052	$ 13,686,587

D. FAIR VALUE MEASUREMENTS (D27

D. FAIR VALUE MEASUREMENTS (Details 1) - USD ($)	9 Months Ended	12 Months Ended
	Jun. 30, 2016	Sep. 30, 2015
D. Fair Value Measurements Details 1
Beginning balance	$ 6,323,032	$ 307,894
Issuances	7,174,439	8,003,220
Realized and unrealized (gains) losses	(4,605,105)	(1,988,082)
Ending balance	$ 8,892,336	$ 6,323,032

E. RELATED PARTY LOAN (Details

E. RELATED PARTY LOAN (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
E. Related Party Loan Details Narrative
Interest expense paid to Mr. de Clara	$ 0	$ 41,000	$ 43,000	$ 124,000

H. PATENTS (Details)

H. PATENTS (Details) - USD ($)	Jun. 30, 2016	Sep. 30, 2015
H. Patents Details
Six months ending September 30, 2016	$ 9,210
Year ending September 30, 2017	36,841
Year ending September 30, 2018	36,507
Year ending September 30, 2019	34,804
Year ending September 30, 2020	31,611
Year ending September 30, 2021	28,311
Thereafter	89,209
Total	$ 266,493	$ 291,564

H. PATENTS (Details Narrative)

H. PATENTS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
H. Patents Details Narrative
Patent impairment charges	$ 0	$ 0	$ 0	$ 0
Amortization of patent costs	$ 12,000	$ 12,000	$ 30,000	$ 31,000

I. LOSS PER COMMON SHARE (Detai

I. LOSS PER COMMON SHARE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
I. Loss Per Common Share Details
Net Loss	$ (3,849,324)	$ (4,429,137)	$ (10,352,366)	$ (24,830,691)
Gain on derivatives		(1,100,760)
Net Loss, Diluted		$ (5,529,897)
Weighted Average Shares - Basic	124,132,500	83,796,311
Gain on derivatives, shares		1,337,796
Weighted Average Shares - Diluted	124,132,500	85,134,107
Weighted Average Shares - Basic and Diluted			117,412,443	77,625,511
LPS - Basic and Diluted			$ (0.09)	$ (0.32)
LPS - Basic	$ (0.03)	$ (0.05)
LPS - Diluted	$ (0.03)	$ (0.06)

I. LOSS PER COMMON SHARE (Det32

I. LOSS PER COMMON SHARE (Details 1) - shares	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
I. Loss Per Common Share Details 1
Options and Warrants	86,066,292	38,786,333
Convertible Debt	0	1,871,283
Unvested Restricted Stock	15,100,000	15,100,000
Total	101,166,292	55,757,616