LadRx (LADX) 8-K/A Acquisition or disposition of assets

EXHIBIT 20.5

BLIZZARD GENOMICS, INC.
(A Development Stage Company)

CONDENSED BALANCE SHEETS

			June 30, 2002			December 31, 2001
			(Unaudited)
ASSETS
Current assets:
	Cash and cash equivalents		$	249,046		$	947,622
	Prepaid expense			27,620			—
		Total current assets		276,666			947,622
Property and equipment, net				12,538			12,599
Patent costs				—			58,983
Lease deposit				—			1,920
Other assets, net of accumulated amortization of $2,321 and $1,856, respectively				2,321			2,786
		Total assets	$	291,525		$	1,023,910
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
	Accounts payable		$	128,212		$	99,434
	Accounts payable - shareholder			104,812			90,863
	Other liabilities			19,977			2,500
		Total current liabilities		253,001			192,797
Stockholders’ equity:
	Common stock, no par value, 10,000,000 shares authorized;3,251,109 issued and outstanding			2,240,885			2,071,092
	Deficit accumulated during the development stage			(2,202,361	)		(1,239,979	)
		Total shareholders’ equity		38,524			831,113
		Total liabilities and shareholders’ equity	$	291,525		$	1,023,910

See accompanying notes.

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BLIZZARD GENOMICS, INC.
(A Development Stage Company)

CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

			Three Months Ended June 30,						Six Months Ended June 30						December 1, 1999 (Inception) to June 30, 2002
			2002			2001			2002			2001
Revenues			$	—		$	—		$	—		$	—		$	—
Expenses:
	Research and development			255,377			31,121			483,080			41,121			1,376,670
	Marketing			12,355			—			29,505			—			58,558
	General and administrative			342,457			47,503			454,620			77,254			836,846
		Total expenses		610,189			78,624			967,205			118,375			2,272,074
		Loss before other income		(610,189	)		(78,624	)		(967,205	)		(118,375	)		(2,272,074	)
Other income – interest income				1,679			15,425			4,823			35,593			69,713
Net loss			$	(608,510	)	$	(63,199	)	$	(962,382	)	$	(82,782	)	$	(2,202,361	)

See accompanying notes.

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BLIZZARD GENOMICS, INC.
(A Development Stage Company)

CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)

			Six Months Ended June 30,						December 31, 1999 (Inception) to June 30, 2002
			2002			2001
Cash flows from operating activities:
	Net loss		$	(962,382	)	$	(82,782	)	$	(2,202,361	)
	Adjustments to reconcile net loss to net cash used in operating activities:
		Depreciation and amortization		2,268			—			6,001
		Research and development from issuance of common stock		—			—			400,000
		Write-off of sublicense agreement costs		58,983			—			90,863
		Compensation from issuance of stock options		169,793			—			195,729
		Net changes in assets and liabilities		34,504			(13,324	)		132,377
	Total adjustments			265,548			(13,324	)		824,970
		Net cash used in operating activities		(696,834	)		(96,106	)		(1,377,391	)
Cash flows from investing activities:
	Purchase of property and equipment			(1,742	)		—			(13,948	)
	Payment for other assets			—			—			(2000	)
		Net cash used in investing activities		(1,742	)		—			(15,948	)
Cash flows from financing activities:
	Payment on due to shareholder			—			—			(2,659	)
	Proceeds from issuance of common stock			—			—			1,645,044
		Net cash provided in financing activities		—			—			1,642,385
Net decrease in cash				(698,576	)		(96,106	)		249,046
Cash at beginning of period				947,622			1,548,164			—
Cash at end of period			$	249,046		$	1,452,058		$	249,046
Supplemental disclosure of cash flow information:
	Cash paid during the year for interest		$	—		$	—		$	—

See accompanying notes.

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BLIZZARD GENOMICS, INC.
(A Development Stage Company)

NOTES TO CONDENSED FINANCIAL STATEMENTS
For the Period from December 1, 1999 (Inception) to June 30, 2002
(Unaudited)

NOTE 1 – OVERVIEW

Blizzard Genomics, Inc. ( the Company ) is a development-stage Minnesota Corporation incorporated on December 1, 1999. The Company, pursuant to an exclusive worldwide sublicense agreement, participates in the design, development and eventual marketing and selling of instrumentation used in genomics research.

The accompanying condensed financial statements are unaudited, but include all adjustments, consisting of normal recurring entries, which the Company’s management believes to be necessary for a fair presentation of the periods presented.  The interim results of operations are not necessarily indicative of the results that may occur for the full fiscal year.  The financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2001.

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