Lorus Therapeutics Inc.
Consolidated Balance Sheets
| As at | As at | |||||
| August 31, 2006 | May 31, 2006 | |||||
| (amounts in Canadian 000's) | (Unaudited) | (Audited) | ||||
| ASSETS | ||||||
| Current | ||||||
| Cash and cash equivalents | $ | 13,286 | $ | 2,692 | ||
| Short-term investments (note 4) | 4,873 | 5,627 | ||||
| Prepaid expenses and other assets | 703 | 515 | ||||
| 18,862 | 8,834 | |||||
| Long-term | ||||||
| Fixed assets | 785 | 885 | ||||
| Deferred financing charges | 456 | 481 | ||||
| Goodwill | 606 | 606 | ||||
| Acquired patents and licenses | 262 | 655 | ||||
| 2,109 | 2,627 | |||||
| $ | 20,971 | $ | 11,461 | |||
| LIABILITIES | ||||||
| Current | ||||||
| Accounts payable | $ | 596 | $ | 555 | ||
| Accrued liabilities | 2,448 | 2,460 | ||||
| 3,044 | 3,015 | |||||
| Long-term | ||||||
| Secured convertible debentures | 11,221 | 11,002 | ||||
| SHAREHOLDERS' EQUITY (DEFICIT) | ||||||
| Share capital (note 2) | ||||||
| Common shares | 156,928 | 145,001 | ||||
| Equity portion of secured convertible debentures | 3,814 | 3,814 | ||||
| Stock options (note 3) | 4,614 | 4,525 | ||||
| Contributed surplus | 7,681 | 7,665 | ||||
| Warrants | 991 | 991 | ||||
| Deficit accumulated during development stage | (167,322 | ) | (164,552 | ) | ||
| 6,706 | (2,556 | ) | ||||
| $ | 20,971 | $ | 11,461 |
Lorus Therapeutics Inc.
Consolidated Statements of Loss and Deficit (unaudited)
| Period | |||||||||
| Three | Three | from inception | |||||||
| months ended | months ended | Sept. 5, 1986 to | |||||||
| (amounts in Canadian 000's except for per common share data) | Aug 31, 2006 | Aug 31, 2005 | Aug 31, 2006 | ||||||
| REVENUE | $ | 7 | $ | 1 | $ | 713 | |||
| EXPENSES | |||||||||
| Cost of sales | 3 | - | 90 | ||||||
| Research and development | 1,331 | 3,957 | 111,806 | ||||||
| General and administrative | 788 | 1,076 | 48,263 | ||||||
| Stock-based compensation (note 3) | 113 | 291 | 6,863 | ||||||
| Depreciation and amortization | 100 | 130 | 8,923 | ||||||
| Operating expenses | 2,335 | 5,454 | 175,945 | ||||||
| Interest expense on convertible debentures | 265 | 198 | 1,447 | ||||||
| Accretion in carrying value of convertible debentures | 219 | 186 | 1,435 | ||||||
| Amortization of deferred financing charges | 25 | 20 | 196 | ||||||
| Interest income | (67 | ) | (115 | ) | (10,988 | ) | |||
| Loss for the period | 2,770 | 5,742 | 167,322 | ||||||
| Deficit, beginning of period | 164,552 | 146,643 | - | ||||||
| Deficit, end of period | $ | 167,322 | $ | 152,385 | $ | 167,322 | |||
| Basic and diluted loss per common share | $ | 0.01 | $ | 0.03 | |||||
| Weighted average number of common shares | |||||||||
| outstanding used in the calculation of | |||||||||
| basic and diluted loss per share | 186,529 | 172,713 | |||||||
See accompanying notes to the unaudited consolidated financial statements
Lorus Therapeutics Inc.
Consolidated Statements of Cash Flows (unaudited)
| Period | |||||||||
| Three | Three | from inception | |||||||
| months ended | months ended | Sept. 5, 1986 to | |||||||
| (amounts in Canadian 000's) | Aug 31, 2006 | Aug 31, 2005 | Aug 31, 2006 | ||||||
| OPERATING ACTIVITIES | |||||||||
| Loss for the period | $ | (2,770 | ) | $ | (5,742 | ) | $ | (167,322 | ) |
| Add items not requiring a current outlay of cash: | |||||||||
| Stock-based compensation | 113 | 291 | 6,863 | ||||||
| Interest expense on convertible debentures | 265 | 198 | 1,447 | ||||||
| Accretion in carrying value of convertible debentures | 219 | 186 | 1,435 | ||||||
| Amortization of deferred financing charges | 25 | 20 | 196 | ||||||
| Depreciation, amortization and write-down of fixed assets | 493 | 523 | 21,222 | ||||||
| Other | - | - | 707 | ||||||
| Net change in non-cash working capital | |||||||||
| balances related to operations | (159 | ) | (285 | ) | 1,433 | ||||
| Cash used in operating activities | (1,814 | ) | (4,809 | ) | (134,019 | ) | |||
| INVESTING ACTIVITIES | |||||||||
| Maturity (purchase) of short-term investments, net | 754 | 8,229 | (4,873 | ) | |||||
| Business acquisition, net of cash received | - | - | (539 | ) | |||||
| Acquired patents and licenses | - | - | (715 | ) | |||||
| Additions to fixed assets | - | (70 | ) | (6,049 | ) | ||||
| Cash proceeds on sale of fixed assets | - | - | 348 | ||||||
| Cash provided by (used in) | |||||||||
| investing activities | 754 | 8,159 | (11,828 | ) | |||||
| FINANCING ACTIVITIES | |||||||||
| Issuance of debentures, net proceeds | - | - | 12,948 | ||||||
| Issuance of warrants | - | - | 37,405 | ||||||
| Issuance of common shares, net of issuance costs | 11,654 | - | 109,025 | ||||||
| Additions to deferred financing charges | - | - | (245 | ) | |||||
| Cash provided by financing activities | 11,654 | - | 159,133 | ||||||
| Increase in cash and cash | |||||||||
| equivalents during the period | 10,594 | 3,350 | 13,286 | ||||||
| Cash and cash equivalents, | |||||||||
| beginning of period | 2,692 | 2,776 | - | ||||||
| Cash and cash equivalents, | |||||||||
| end of period | $ | 13,286 | $ | 6,126 | $ | 13,286 | |||
See accompanying notes to the unaudited consolidated financial statements