EXHIBIT 99.1
ONCOLOGIX TECH, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
BASIS OF PRESENTATION
The unaudited pro forma condensed consolidated balance sheets as of May 31,
2008 and August 31, 2007 and 2006, and the unaudited pro forma condensed
consolidated statements of operations for the nine months ended May 31, 2008 and
the years ended August 31, 2007 and 2006, are based on the historical financial
statements of the Registrant.
The unaudited pro forma condensed consolidated balance sheet as of May 31,
2008 is presented as if the disposition as described in this Current Form 8-K/A
occurred in its entirety on May 31, 2008.
The unaudited pro forma condensed consolidated statement of operations for
the nine months ended May 31, 2008 is presented as if the disposition as
described in this Current Form 8-K/A occurred in its entirety on September 1,
2007.
The unaudited pro forma condensed consolidated balance sheet as of August
31, 2007 is presented as if the disposition as described in this Current Form
8-K/A occurred in its entirety on August 31, 2007.
The unaudited pro forma condensed consolidated statement of operations for
the year ended August 31, 2007 is presented as if the disposition as described
in this Current Form 8-K/A occurred in its entirety on September 1, 2006.
The unaudited pro forma condensed consolidated balance sheet as of August
31, 2006 is presented as if the disposition as described in this Current Form
8-K/A occurred in its entirety on August 31, 2006.
The unaudited pro forma condensed consolidated statement of operations for
the year ended August 31, 2006 is presented as if the disposition as described
in this Current Form 8-K/A occurred in its entirety on September 1, 2005.
The unaudited pro forma condensed consolidated financial statements should
be read in conjunction with the historical financial statements and notes
thereto appearing in the Company's Annual Report on Form 10-KSB for the fiscal
years ended August 31, 2007 and 2006 and its quarterly report on Form 10-QSB for
the interim period ended May 31, 2008.
Preparation of the pro forma information is provided for informational
purposes only, and is based on assumptions considered appropriate by the
Registrant's management. The pro forma financial information is unaudited and is
not necessarily indicative of the results which would have occurred if the
transactions described above had been consummated as of the dates indicated, nor
does it purport to represent the future financial position and the results of
operations for future periods. In management's opinion, all adjustments
necessary to reflect the effects of the transaction listed above have been made.
1
ONCOLOGIX TECH, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
AS OF MAY 31, 2008
Pro Forma
Historical Adjustments Pro Forma
------------ ------------ ------------
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents ............................................... $ 2,471 $ 50,000 (1) $ 52,471
Prepaid expenses and other current assets ............................... 13,047 -- 13,047
Prepaid commissions ..................................................... 92,685 -- 92,685
Current assets of discontinued operations ............................... 70 (70)(2) --
------------ ------------ ------------
Total current assets ............................................... 108,273 49,930 158,203
Property and equipment (net of accumulated depreciation
of $18,207) ............................................................. 4,999 -- 4,999
Deposits and other assets .................................................... 17,254 -- 17,254
Investment in IUTM ........................................................... -- 367,275 (3) 367,275
Longterm assets of discontinued operations ................................... 163,534 (163,534)(2) --
------------ ------------ ------------
Total assets .................................................. $ 294,060 $ 253,671 $ 547,731
============ ============ ============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Convertible notes payable (net of discount of $246,055) ................. $ 2,098,945 $ -- $ 2,098,945
Convertible notes payable related parties .............................. 705,450 -- 705,450
Accounts payable and other accrued expenses ............................. 178,574 -- 178,574
Accrued interest payable ................................................ 234,610 -- 234,610
Current liabilities of discontinued operations .......................... 202,484 (202,484)(4) --
------------ ------------ ------------
Total current liabilities .......................................... 3,420,063 (202,484) 3,217,579
Convertible notes payable (net of discount of $346,456) ...................... 743,544 -- 743,544
------------ ------------ ------------
Total liabilities ............................................. 4,163,607 (202,484) 3,961,123
------------ ------------ ------------
Stockholders' Deficit:
Preferred stock, par value $.001 per share; 10,000,000 shares authorized;
342,862 shares issued and outstanding at May 31, 2008 .............. 343 -- 343
Common stock, par value $.001 per share; 200,000,000 shares authorized;
100,130,410 shares issued at May 31, 2008; 71,906,066 shares
outstanding at May 31, 2008 ........................................ 71,906 -- 71,906
Additional paid-in capital .............................................. 48,643,916 -- 48,643,916
Accumulated deficit ..................................................... (52,877,810) 456,155 (5) (52,421,655)
Common stock subscribed, underlying common shares of 5,841,974 .......... 292,098 -- 292,098
------------ ------------ ------------
Total stockholders' deficit ................................... (3,869,547) 456,155 (3,413,392)
------------ ------------ ------------
Total liabilities and stockholders' deficit ................... $ 294,060 $ 253,671 $ 547,731
============ ============ ============
See accompanying notes and management's assumptions to the unaudited
pro forma condensed consolidated financial information.
2
ONCOLOGIX TECH, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS FOR THE NINE MONTHS ENDED MAY 31, 2008
Pro Forma
Historical Adjustments Pro Forma
------------ ------------ ------------
(Unaudited)
Operating expenses:
General and administrative .............................. $ 456,845 $ -- $ 456,845
Depreciation and amortization ........................... 1,587 -- 1,587
------------ ------------ ------------
Total operating expenses ................................ 458,432 -- 458,432
------------ ------------ ------------
Loss from operations .................................... (458,432) -- (458,432)
------------ ------------ ------------
Other income (expense):
Interest income ......................................... 331 -- 331
Interest and finance charges............................. (1,364,240) -- (1,364,240)
Loss on disposal of assets .............................. (3,194) -- (3,194)
Other income (expense) .................................. (1,443) -- (1,443)
------------ ------------ ------------
Total other income (expense) ............................ (1,368,546) -- (1,368,546)
------------ ------------ ------------
Net loss from continuing operations...................... (1,826,978) -- (1,826,978)
------------ ------------ ------------
Discontinued operations:
Operating loss from discontinued operations.............. (1,142,275) 1,142,275 (6) --
Gain on disposal of discontinued operations ............. -- 142,350 (5) 142,350
------------ ------------ ------------
Net loss from discontinued operations ................... (1,142,275) 1,284,625 142,350
------------ ------------ ------------
Net loss .................................................. $ (2,969,253) $ 1,284,625 $ (1,684,628)
============ ============ ============
Loss per common share, basic and diluted:
Continuing operations ............................... $ (0.03) $ (0.03)
Discontinued operations ............................. (0.02) 0.00
------------ ------------
$ (0.05) $ (0.03)
============ ============
Weighted average number of shares
outstanding - basic and diluted.......................... 71,481,165 71,481,165
============ ============
See accompanying notes and management's assumptions to the unaudited
pro forma condensed consolidated financial information.
3
ONCOLOGIX TECH, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
AS OF AUGUST 31, 2007
Pro Forma
Historical Adjustments Pro Forma
------------ ------------ ------------
ASSETS
Current Assets:
Cash and cash equivalents ............................................. $ 141,691 $ 50,000 (7) $ 191,691
Prepaid expenses and other current assets ............................. 115,101 (104,952)(8) 10,149
Prepaid commissions ................................................... 117,346 -- 117,346
------------ ------------ ------------
Total current assets ............................................. 374,138 (54,952) 319,186
Property and equipment (net of accumulated depreciation
of $22,477) ........................................................... 203,322 (193,541)(8) 9,781
Deposits and other assets .................................................. 25,619 (6,450)(8) 19,169
Investment in joint venture ................................................ 10,000 (10,000)(8) --
Investment in IUTM ......................................................... -- 367,275 (9) 367,275
------------ ------------ ------------
Total assets ................................................ $ 613,079 $ 102,332 $ 715,411
============ ============ ============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Convertible notes payable (net of discount of $349,857) ............... $ 850,143 $ -- $ 850,143
Convertible notes payable related parties ............................ 280,450 -- 280,450
Notes payable related parties ........................................ 600,000 -- 600,000
Accounts payable and other accrued expenses ........................... 86,339 (40,018)(10) 46,321
Accrued interest payable .............................................. 132,921 -- 132,921
------------ ------------ ------------
Total current liabilities ........................................ 1,949,853 (40,018) 1,909,835
Convertible notes payable (net of discount of $606,585) .................... 688,415 -- 688,415
Total liabilities ........................................... 2,638,268 (40,018) 2,598,250
Stockholders' Deficit:
Preferred stock, par value $.001 per share; 10,000,000 shares
authorized 443,162 shares issued and outstanding at
August 31, 2007 .................................................. 443 -- 443
Common stock, par value $.001 per share; 200,000,000 shares authorized;
93,357,986 shares issued at August 31, 2007; 70,975,616
shares outstanding at August 31, 2007 ............................ 70,976 -- 70,976
Additional paid-in capital ............................................ 47,805,282 -- 47,805,282
Accumulated deficit ................................................... (49,908,557) 142,350 (11) (49,766,207)
Common stock subscribed, underlying common shares of 22,689 ........... 6,667 -- 6,667
------------ ------------ ------------
Total stockholders' deficit ................................. (2,025,189) 142,350 (1,882,839)
------------ ------------ ------------
Total liabilities and stockholders' deficit ................. $ 613,079 $ 102,332 $ 715,411
============ ============ ============
See accompanying notes and management's assumptions to the unaudited
pro forma condensed consolidated financial information.
4
ONCOLOGIX TECH, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS FOR THE YEAR ENDED AUGUST 31, 2007
Pro Forma
Historical Adjustments Pro Forma
------------ ------------ ------------
Operating expenses:
General and administrative .............................. $ 1,269,802 $ (484,080)(12) $ 785,722
Research and development ................................ 4,961,531 (4,961,531)(12) --
Depreciation and amortization ........................... 20,914 (18,256)(12) 2,658
------------ ------------ ------------
Total operating expenses ................................ 6,252,247 (5,463,867) 788,380
------------ ------------ ------------
Loss from operations .................................... (6,252,247) 5,463,867 (788,380)
------------ ------------ ------------
Other income (expense):
Interest income ......................................... 10,824 (10,078)(12) 746
Interest and finance charges ............................ (1,321,941) 10,864 (12) (1,311,077)
Other income (expense) .................................. 10,409 (46)(12) 10,363
------------ ------------ ------------
Total other income (expense) ............................ (1,300,708) 740 (1,299,968)
------------ ------------ ------------
Net loss from continuing operations ..................... (7,552,955) 5,464,607 (2,088,348)
------------ ------------ ------------
Discontinued operations:
Operating loss from discontinued operations ............. (93,178) -- (93,178)
Gain (loss) on disposal of discontinued operations ...... (79) 576,280 (11) 576,201
------------ ------------ ------------
Net loss from discontinued operations ................... (93,257) 576,280 483,023
------------ ------------ ------------
Net loss ................................................. $ (7,646,212) $ 6,040,887 $ (1,605,325)
============ ============ ============
Loss per common share, basic and diluted:
Continuing operations ............................... $ (0.12) $ (0.03)
Discontinued operations ............................. (0.00) 0.01
------------ ------------
$ (0.12) $ (0.02)
============ ============
Weighted average number of shares
outstanding basic and diluted........................... 66,454,700 66,454,700
============= ============
See accompanying notes and management's assumptions to the unaudited
pro forma condensed consolidated financial information.
5
ONCOLOGIX TECH, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
AS OF AUGUST 31, 2006
Pro Forma
Historical Adjustments Pro Forma
------------ ------------ ------------
ASSETS
Current Assets:
Cash and cash equivalents ................................................. $ 365,494 $ 50,000 (13) $ 415,494
Prepaid expenses and other current assets ................................. 10,412 (3,532)(14) 6,880
Notes receivable related parties ......................................... 16,564 -- 16,564
Current assets from discontinued operations ............................... 69,545 -- 69,545
------------ ------------ ------------
Total current assets ................................................. 462,015 46,468 508,483
Property and equipment (net of accumulated depreciation
of $19,820) ............................................................... 26,008 (16,716)(14) 9,292
Deposits and other assets ...................................................... 4,613 (4,613)(14) --
Investment in joint venture .................................................... 10,000 (10,000)(14) --
Investment in IUTM ............................................................. -- 367,275 (15) 367,275
Longterm assets from discontinued operations.................................... 166,319 -- 166,319
------------ ------------ ------------
Total assets .................................................... $ 668,955 $ 382,414 $ 1,051,369
============ ============ ============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Convertible notes payable (net of discount of $28,361) .................... $ 521,639 $ -- $ 521,639
Convertible notes payable related parties ................................ 280,450 -- 280,450
Notes payable ............................................................. 130,373 (130,373)(17) --
Accounts payable and other accrued expenses ............................... 247,202 (37,438)(16) 209,764
Accrued interest payable .................................................. 45,419 (26,055)(17) 19,364
Current liabilities from discontinued operations........................... 45,700 -- 45,700
------------ ------------ ------------
Total current liabilities ............................................ 1,270,783 (193,866) 1,076,917
------------ ------------ ------------
Total liabilities ............................................... 1,270,783 (193,866) 1,076,917
------------ ------------ ------------
Stockholders' Deficit:
Preferred stock, par value $.001 per share; 10,000,000 shares authorized
443,162 shares issued and outstanding at August 31, 2006 ............. 443 -- 443
Common stock, par value $.001 per share; 200,000,000 shares authorized;
90,102,953 shares issued at August 31, 2006; 60,259,793 shares
outstanding at August 31, 2006 ....................................... 60,260 -- 60,260
Additional paid-in capital ................................................ 41,599,814 -- 41,599,814
Accumulated deficit ....................................................... (42,262,345) 576,280 (18) (41,686,065)
------------ ------------ ------------
Total stockholders' deficit ..................................... (601,828) 576,280 (25,548)
------------ ------------ ------------
Total liabilities and stockholders' deficit ..................... $ 668,955 $ 382,414 $ 1,051,369
============ ============ ============
See accompanying notes and management's assumptions to the unaudited
pro forma condensed consolidated financial information.
6
ONCOLOGIX TECH, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS FOR THE YEAR ENDED AUGUST 31, 2006
Pro Forma
Historical Adjustments Pro Forma
------------ ------------ ------------
Operating expenses:
General and administrative ................ $ 468,249 $ (39,001)(19) $ 429,248
Research and development .................. 5,334,202 (5,334,202)(19) --
Depreciation and amortization ............. 243 (243)(19) --
------------ ------------ ------------
Total operating expenses .................. 5,802,694 (5,373,446) 429,248
------------ ------------ ------------
Loss from operations ...................... (5,802,694) 5,373,446 (429,248)
------------ ------------ ------------
Other income (expense):
Interest income ........................... 13,700 -- 13,700
Interest and finance charges .............. (53,241) 2,106 (19) (51,135)
Other income (expense) .................... (150) -- (150)
------------ ------------ ------------
Total other income (expense) .............. (39,691) 2,106 (37,585)
------------ ------------ ------------
Net loss from continuing operations ....... (5,842,385) 5,375,552 (466,833)
------------ ------------ ------------
Discontinued operations:
Operating loss from discontinued operations (243,680) -- (243,680)
Loss on disposal of discontinued operations -- (107,013)(20) (107,013)
------------ ------------ ------------
Net loss from discontinued operations ..... (243,680) (107,013) (350,693)
------------ ------------ ------------
Net loss .................................... $ (6,086,065) $ 5,268,539 $ (817,526)
============ ============ ============
Loss per common share, basic and diluted:
Continuing operations ................. $ (0.12) $ (0.01)
Discontinued operations ............... (0.01) (0.01)
------------ ------------
$ (0.13) $ (0.02)
============ ============
Weighted average number of shares
outstanding basic and diluted ............ 47,690,475 47,690,475
============ ============
See accompanying notes and management's assumptions to the unaudited
pro forma condensed consolidated financial information.
7
NOTES AND MANAGEMENT'S ASSUMPTIONS TO THE UNAUDITED PRO FORMA
CONDENSED CONSOLIDATED FINANCIAL INFORMATION
If this transaction closes, the Company plans to seek to obtain marketing rights
to the Oncosphere and possibly other IUTM products and to seek other
opportunities in the medical field. No assurance can be given that such a
transaction will be consummated. The Company's proposed asset sale consists of
the selling of substantially all the assets, and related liabilities, related to
the Oncosphere project, which are currently held in the Company's subsidiary,
Oncologix Corporation. Please see the attached unaudited financial statements of
our subsidiary, Oncologix Corporation following these pro forma financial
statements. Included in those assets are prepaid commissions related to debt
financings which are being expensed over the life of the two year notes and
prepaid expenses related to our insurance policies which are being expensed over
twelve months. In addition, the Company will have an investment in IUTM,
representing a 20% equity interest. The value of this interest is 250,000 Euros,
or approximately $367,275 using an exchange rate of 1.4691 on August 18, 2008.
This value was calculated based on the 500,000 Euro investment by IUT in IUTM in
consideration of a 40% interest. Other assets retained include modest furniture
and computer equipment used to maintain the Company's records. All liabilities
of the Company's subsidiary, Oncologix Corporation will be assumed by the Buyer
under the terms of the asset sale. The Company's remaining liabilities will
consist primarily of convertible notes payable, as well as outstanding legal and
professional fees.
The following is a description of the unaudited pro forma adjustments to the
Registrant's historical condensed consolidated financial statements.
(1) Reflects the receipt of $50,000 cash in connection with the sale of
the Oncosphere assets if the transaction was consummated on May 31,
2008.
(2) Reflects the disposal of assets, which are held in the Company's
subsidiary, Oncologix Corporation, currently classified as current and
long term assets from discontinued operations in connection with the
transaction of the Oncosphere assets if the transaction was
consummated on May 31, 2008.
(3) Reflects the estimated value of the investment in 20% of IUTM received
in connection with the sale of the Oncosphere assets as if the
transaction was consummated on May 31, 2008.
(4) Reflects the assumption of liabilities by IUT, which are held in the
Company's subsidiary Oncologix Corporation, currently classified as
current liabilities from discontinued operations in connection with
the sale of the Oncosphere assets as if the transaction was
consummated on May 31, 2008.
(5) Reflects the gain recognized in connection with the sale of the
Oncosphere assets as if the transaction was consummated on September
1, 2007 for the statement of operations and May 31, 2008 for the
balance sheet.
(6) Reflects the removal of operating loss from discontinued operations,
recorded in the Company's subsidiary Oncologix Corporation, as a
result of the sale as if the transaction was consummated on September
1, 2007.
(7) Reflects the receipt of $50,000 cash in connection with the sale of
the Oncosphere assets as if the transaction was consummated on August
31, 2007.
(8) Reflects the disposal of assets, which are held in the Company's
subsidiary Oncologix Corporation, currently classified as current and
long term assets in connection with the transaction of the Oncosphere
assets as if the transaction was consummated on August 31, 2007.
(9) Reflects the estimated value of the investment in 20% of IUTM received
in connection with the sale of the Oncosphere assets as if the
transaction was consummated on August 31, 2007.
(10) Reflects the assumption of liabilities by IUT, which are held in the
Company's subsidiary, Oncologix Corporation, in connection with the
sale of the Oncosphere assets as if the transaction was consummated on
August 31, 2007.
8
(11) Reflects the gain recognized in connection with the sale of the
Oncosphere assets as if the transaction was consummated on September
1, 2006 for the statement of operations and August 31, 2007 for the
balance sheet.
(12) Reflects the removal of operating loss from continuing operations of
the Company's subsidiary, Oncologix Corporation, as a result of the
sale as if the transaction was consummated on September 1, 2006.
(13) Reflects the receipt of $50,000 cash in connection with the sale of
the Oncosphere assets as if the transaction was consummated on August
31, 2006.
(14) Reflects the disposal of assets, which are held in the Company's
subsidiary Oncologix Corporation, currently classified as current and
long term assets in connection with the transaction of the Oncosphere
assets as if the transaction was consummated on August 31, 2006.
(15) Reflects the estimated value of the investment in 20% of IUTM received
in connection with the sale of the Oncosphere assets as if the
transaction was consummated on August 31, 2006.
(16) Reflects the assumption of liabilities by IUT, which are held in the
Company's subsidiary, Oncologix Corporation, currently classified as
current liabilities in connection with the sale of the Oncosphere
assets as if the transaction was consummated on August 31, 2006.
(17) Reflects the removal of loans assumed upon the merger with JDA Medical
Technologies Inc., which are held in the Company's subsidiary
Oncologix Corporation, as if the transaction was consummated on August
31, 2006.
(18) Reflects the gain recognized in connection with the sale of the
Oncosphere assets as if the transaction was consummated on September
1, 2005 for the statement of operations and August 31, 2006 for the
balance sheet.
(19) Reflects the removal of operating loss from continuting operations of
the Company's subsidiary, Oncologix Corporation, as a result of the
sale as if the transaction was consummated on September 1, 2005.
(20) Reflects the loss recognized in connection with the sale of the
Oncosphere assets as if the transaction was consummated on July 26,
2006 (the date of acquisition of JDA Medical Technologies, Inc.) for
the statement of operations and August 31, 2006 for the balance sheet.
9
Below are financial statements of our wholly owned subsidiary,
Oncologix Corporation as required by Question 6 in Section H of the July 2001
supplement to the Manual of Publicly Available Telephone Interpretations of the
SEC for guidance.
ONCOLOGIX CORPORATION (A SUBSIDIARY OF ONCOLOGIX TECH, INC.)
UNAUDITED CONDENSED BALANCE SHEETS AS OF
May 31, August 31, August 31,
2008 2007 2006
------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents .................................................. $ 171 $ 77,029 $ 301,445
Prepaid expenses and other current assets .................................. 70 104,952 3,532
Notes receivable related parties .......................................... -- -- 16,564
Intercompany receivable .................................................... 1,716 -- 1,792
------------ ------------ ------------
Total current assets .................................................. 1,957 181,981 323,333
Property and equipment (net of accumulated depreciation
of $45,243, $18,372 and $243) .............................................. 151,272 193,541 16,716
Deposits and other assets ....................................................... 2,262 6,450 4,613
Investment in joint venture ..................................................... 10,000 10,000 10,000
Longterm assets of discontinued operations
------------ ------------ ------------
Total assets ..................................................... $ 165,491 $ 391,972 $ 354,662
============ ============ ============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Notes payable .............................................................. $ -- $ -- $ 130,373
Accounts payable and other accrued expenses ................................ 202,484 40,018 37,438
Accrued interest payable ................................................... -- -- 26,055
Intercompany payable ....................................................... -- 8,322 9,912
------------ ------------ ------------
Total current liabilities .............................................. 202,484 48,340 203,778
------------ ------------ ------------
Total liabilities ................................................ 202,484 48,340 203,778
------------ ------------ ------------
Stockholders' Deficit:
Common stock, par value $.001 per share; 10,000,000 shares authorized;
1,000 shares issued and outstanding at May 31, 2008,
August 31, 2007 and August 31, 2006, respectively .................... 1,000 1,000 1,000
Additional paid-in capital ................................................. 11,944,441 11,182,791 5,525,436
Accumulated deficit during the development stage............................ (11,982,434) (10,840,159) (5,375,552)
------------ ------------ ------------
Total stockholders' deficit ...................................... (36,993) 343,632 150,884
------------ ------------ ------------
Total liabilities and stockholders' deficit ...................... $ 165,491 $ 391,972 $ 354,662
============ ============ ============
10
ONCOLOGIX CORPORATION (A SUBSIDIARY OF ONCOLOGIX TECH, INC.)
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
For the Nine For the For the
Months Ended Year Ended Year Ended
May 31, August 31, August 31,
2008 2007 2006
----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited)
Operating expenses:
General and administrative ............. $ 128,206 $ 484,080 $ 39,001
Research and development ............... 971,648 4,961,531 5,334,202
Depreciation and amortization .......... 29,914 18,256 243
----------- ----------- -----------
Total operating expenses ............... 1,129,768 5,463,867 5,373,446
----------- ----------- -----------
Loss from operations ................... (1,129,768) (5,463,867) (5,373,446)
----------- ----------- -----------
Other income (expense):
Interest income ........................ 270 10,078 --
Interest and finance charges ........... -- (10,864) (2,106)
Gain (loss) on disposal of assets ...... (13,890) 128 --
Other income (expense) ................. 1,113 (82) --
----------- ----------- -----------
Total other income (expense) ........... (12,507) (740) (2,106)
----------- ----------- -----------
Net loss ................................. $(1,142,275) $(5,464,607) $(5,375,552)
=========== =========== ===========
11