Florida
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04-3721895
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(State
or Other Jurisdiction of Incorporation or Organization)
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(I.R.S.
Employer Identification No.)
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PART
I -- FINANCIAL INFORMATION
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Page
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Item
1.
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5
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6
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7
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9
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10
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Item
2.
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13
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Item
3.
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16
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PART
II -- OTHER INFORMATION
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Item
6.
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17
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Current
Assets:
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|||
Cash
and cash equivalents
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$
|
4,987,290
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||
Prepaid
expenses
|
44,501
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|||
Total
current assets
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5,031,791
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|||
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||||
Property
and equipment, net
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102,537
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|||
Security
deposits
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55,608
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|||
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$
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5,189,936
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||
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||||
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||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
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||||
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||||
Current
Liabilities:
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||||
Accounts
payable
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$
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110,151
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||
Accrued
expenses
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71,256
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|||
Total
current liabilities
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181,407
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|||
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||||
Stockholders'
equity:
|
||||
Preferred
stock, $.001 par value, 20,000,000 shares authorized, none outstanding
|
—
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|||
Common
stock, $.0001 par value, authorized 100,000,000 shares, 18,949,300
issued
at April 30, 2005
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1,895
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|||
Treasury
stock 350,000 common shares, at par
|
(35
|
)
|
||
Additional
paid-in-capital
|
14,331,121
|
|||
Deferred
unamortized stock based compensation
|
(1,530,345
|
)
|
||
Deficit
accumulated during the development stage
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(7,794,107
|
)
|
||
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5,008,529
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|||
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$
|
5,189,936
|
For
the
Period
from
August
4, 1999
(inception)
to
April
30,
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||||||||||
2005
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2004
|
2005
|
||||||||
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|||||||
Revenues
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$
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—
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$
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—
|
$
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—
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||||
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||||||||||
Costs
and Expenses:
|
||||||||||
Research
and development
|
296,646
|
74,404
|
2,586,973
|
|||||||
General
and administrative
|
575,283
|
2,820
|
1,241,525
|
|||||||
Stock-based
compensation - general and administrative
|
(107,938
|
)
|
—
|
3,997,768
|
||||||
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763,991
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77,224
|
7,826,266
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|||||||
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||||||||||
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||||||||||
Loss
from operations
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(763,991
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)
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(77,224
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)
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(7,826,266
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)
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||||
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||||||||||
Interest
income
|
12,124
|
—
|
32,160
|
|||||||
Net
loss
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$
|
(751,867
|
)
|
$
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(77,224
|
)
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$
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(7,794,107
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)
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||||||||||
Weighted
average shares outstanding:
|
||||||||||
Basic
and diluted
|
17,716,394
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13,166,502
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12,232,074
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|||||||
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||||||||||
Net
loss per common share:
|
||||||||||
Basic
and diluted
|
$
|
(0.04
|
)
|
$
|
(0.01
|
)
|
$
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(0.64
|
)
|
Deficit
|
|||||||||||||||||||||||||
Deferred
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Accumulated
|
||||||||||||||||||||||||
Additional
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Unamortized
|
During
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Total
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||||||||||||||||||||||
Preferred
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Common
Stock
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Treasury
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Paid
in
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Stock-based
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Development
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Stockholders'
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|||||||||||||||||||
Stock
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Shares
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Par
Value
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Shares
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Capital
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Compensation
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Stage
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Equity
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||||||||||||||||||
Balance
August 4, 1999 (Inception)
|
|
—
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$
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—
|
$
|
—
|
$
|
—
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$
|
—
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$
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—
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$
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—
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|||||||||||
Sale
of common stock - founders
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222,000,000
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22,200
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—
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19,800
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—
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—
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42,000
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|||||||||||||||||
Net
loss for the period ended January 31, 2000
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|
—
|
—
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—
|
—
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—
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(14,760
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)
|
(14,760
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)
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|||||||||||||||
Balance,
January 31, 2000
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222,000,000
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22,200
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0
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19,800
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0
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(14,760
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)
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27,240
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||||||||||||||||
Net
loss for the period ended January 31, 2001
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|
—
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—
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—
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—
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—
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(267,599
|
)
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(267,599
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)
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|||||||||||||||
Balance,
January 31, 2001
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222,000,000
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22,200
|
0
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19,800
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0
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(282,359
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)
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($240,359
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)
|
|||||||||||||||
Capital
contribution cash
|
|
45,188
|
45,188
|
||||||||||||||||||||||
Net
loss for the period ended January 31, 2002
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|
—
|
—
|
—
|
—
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—
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(524,224
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)
|
(524,224
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)
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|||||||||||||||
Balance,
January 31, 2002
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222,000,000
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22,200
|
0
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64,988
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0
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(806,583
|
)
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($719,395
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)
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|||||||||||||||
Sale
of common stock
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7,548,000
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755
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2,645
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3,400
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||||||||||||||||||||
Capital
contribution cash
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2,500
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2,500
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|||||||||||||||||||||||
Net
loss for the period ended January 31, 2003
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—
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—
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—
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—
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—
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(481,609
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)
|
(481,609
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)
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|||||||||||||||
Balance,
January 31, 2003
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229,548,000
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22,955
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0
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70,133
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0
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(1,288,192
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)
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($1,195,104
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)
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|||||||||||||||
Net
loss for the period ended January 31, 2004
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|
—
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—
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—
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—
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—
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(383,021
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)
|
(383,021
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)
|
|||||||||||||||
Balance,
January 31, 2004
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229,548,000
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$
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22,955
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$
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0
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$
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70,133
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$
|
0
|
($1,671,213
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)
|
($1,578,125
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)
|
Deficit
|
|||||||||||||||||||||||
Deferred
|
Accumulated
|
||||||||||||||||||||||
Additional
|
Unamortized
|
During
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Total
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||||||||||||||||||||
Common
Stock
|
Treasury
|
Paid
in
|
Stock-based
|
Development
|
Stockholders'
|
||||||||||||||||||
Shares
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Par
Value
|
Shares
|
Capital
|
Compensation
|
Stage
|
Equity
|
|
||||||||||||||||
Balance,
January 31, 2004
|
|
229,548,000
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$
|
22,955
|
$
|
0
|
$
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70,133
|
$
|
0
|
$ |
(1,671,213
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)
|
$ |
(1,578,125
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)
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|||||||
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|||||||||||||||||||||||
Founders
waive deferred compensation
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1,655,029
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1,655,029
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|||||||||||||||||||||
Private
Placement common stock
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2,645,210
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265
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2,512,685
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2,512,950
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|||||||||||||||||||
Redeemed
shares from Panetta Partners, Ltd
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(218,862,474
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)
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(21,886
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)
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(478,114
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)
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(500,000
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)
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|||||||||||||||
Cost
associated with recapitalization
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(301,498
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)
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(301,498
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)
|
|||||||||||||||||||
Share
exchange with Xenomics Founders
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2,258,001
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226
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(226
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)
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0
|
||||||||||||||||||
Issuance
of treasury shares to escrow
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350,000
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35
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(35
|
)
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0
|
||||||||||||||||||
Private
Placement common stock
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1,368,154
|
136
|
2,667,764
|
2,667,900
|
|||||||||||||||||||
Issuance
of warrants to finders
|
157,062
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157,602
|
|||||||||||||||||||||
Finders
warrants charged cost of capital
|
(157,062
|
)
|
(157,062
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)
|
|||||||||||||||||||
Deferred
stock based compensation
|
1,937,500
|
(1,937,500
|
)
|
0
|
|||||||||||||||||||
Amortization
of deferred stock based compensation
|
245,697
|
245,697
|
|||||||||||||||||||||
Options
issued to consultants
|
1,068,238
|
1,068,238
|
|||||||||||||||||||||
Warrants
issued to consultant
|
2,630,440
|
2,630,440
|
|||||||||||||||||||||
Net
loss for the year ended January 31, 2005
|
—
|
—
|
—
|
—
|
—
|
(5,198,117
|
)
|
(5,198,117
|
)
|
||||||||||||||
Balance,
January 31, 2005
|
|
17,306,891
|
|
1,731
|
(35
|
)
|
|
|
11,923,282
|
(1,691,803
|
)
|
(7,042,240
|
)
|
|
3,190,935
|
||||||||
Private
Placement common stock
|
127,025 | 12 |
20,388
|
20,400 | |||||||||||||||||||
Private Placement common stock | 1,515,384 | 152 | 2,656,847 | 2,656,999 | |||||||||||||||||||
Amortization of deferred stock based compensation | 161,458 | 161,458 | |||||||||||||||||||||
Outstanding options marked to market | (269,396 | ) | (269,396 | ) | |||||||||||||||||||
Net loss for the three month period ended April 30, 2005 | (751,867 | ) | (751,867 | ) | |||||||||||||||||||
Balance, April 30, 2005 | 18,949,300 | $ | 1,895 | $ | (35 | ) | $ | 14,331,121 | $ | (1,530,345 | ) | $ | (7,794,107 | ) | $ | 5,008,529 |
For
the quarters ended April 30,
|
For
the
Period
from
August
4, 1999 (inception)
to
April
30,
|
|||||||||
|
|
2005
|
2004
|
2005
|
||||||
Cash flows from operating activities | ||||||||||
Net
loss
|
$
|
(751,867)
|
)
|
$
|
(77,224)
|
)
|
$
|
(7,794,107
|
)
|
|
Adjustments
to reconcile net loss to net cash used in operating activities:
|
||||||||||
Depreciation
|
4,533
|
2,796
|
13,600
|
|||||||
Founders
compensation contributed to equity
|
74,404
|
1,655,029
|
||||||||
Stock-based
compensation
|
(107,938
|
)
|
—
|
3,997,768
|
||||||
Changes
in operating assets and liabilities:
|
||||||||||
Prepaid
expenses
|
(9,141)
|
)
|
—
|
(44,501
|
)
|
|||||
Security
deposit
|
2,565
|
—
|
(55,608
|
)
|
||||||
Accounts
payable and accrued expenses
|
(25,651)
|
)
|
—
|
181,407
|
||||||
Net
cash used in operating activities
|
(887,499
|
)
|
(24)
|
)
|
(2,046,412
|
)
|
||||
Cash
flows from investing activities:
|
||||||||||
Acquisition
of equipment
|
(29,575)
|
)
|
—
|
(116,137
|
)
|
|||||
Net
cash used in investing activities
|
(29,575)
|
)
|
—
|
(116,137
|
)
|
|||||
Cash
flows from financing activities:
|
||||||||||
Net
proceeds from issuance of common stock, net of repurchases
|
3,154,399
|
—
|
8,428,937
|
|||||||
Payment
of acquisition costs
|
(477,600
|
)
|
—
|
(779,098
|
)
|
|||||
Purchase
of common stock
|
—
|
—
|
(500,000
|
|||||||
Net
cash provided by financing activities
|
2,677,399
|
—
|
7,149,839
|
|||||||
Net
increase(decrease) in cash and cash equivalents
|
1,760,325
|
(24)
|
)
|
4,987,290
|
||||||
|
||||||||||
Cash
and cash equivalents at beginning of the period
|
3,226,965
|
339
|
—
|
|||||||
Cash
and cash equivalents at end of the period
|
$
|
4,987,290
|
$
|
315
|
$
|
4,987,290
|
Quarters
Ended April 30,
|
|||||||
2005
|
2004
|
||||||
Net
loss, as reported
|
$
|
(751,867
|
)
|
$
|
(77,224
|
)
|
|
|
|||||||
Add:
Stock-based employee compensation expense
|
|||||||
recorded
under APB No. 25 intrinsic method
|
161,458
|
—
|
|||||
|
|||||||
Deduct:
Stock-based employee compensation
|
|||||||
expense
determined under Fair Value based method
|
|||||||
for
all employee awards
|
(324,742
|
)
|
—
|
||||
Pro
forma net loss
|
$
|
(915,150
|
)
|
$
|
(77,224
|
)
|
|
|
|||||||
Net
loss per share:
|
|||||||
Basic
and diluted -as reported
|
$
|
(0.04
|
)
|
$
|
(0.00
|
)
|
|
Basic
and diluted -pro forma
|
$
|
(0.05
|
)
|
$ |
(0.00
|
)
|
|
|
|||||||
Fair
Value per share for options granted to employees
|
$
|
3.10
|
$
|
N/A
|
|||
|
|||||||
Black-Scholes
Methodology Assumptions:
|
|||||||
|
|||||||
Dividend
yield
|
0%
|
N/A
|
|||||
Risk
free interest rate
|
4.50%
|
N/A
|
|||||
Expected
lives of options
|
10
years
|
N/A
|
|
31.1
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31.2
|
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32.1
|
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|
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32.2
|
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Date:
January 10, 2006
|
By:
|
/s/
V. Randy White
|
|
|
|||
|
V.
Randy White
Chief
Executive Officer
|
|
|
|
|
|
|
|
|
Date:
January 10, 2006
|
By:
|
/s/
Bernard
F. Denoyer
|
|
|
|||
|
Bernard
F. Denoyer
Vice
President, Controller
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32.1
|
|
|
|
|
|
32.2
|
|
|
||
|
|
/s/
V. Randy White, Ph.D.
|
|
|
|
||
|
Name:
V. Randy White, Ph.D.
Title:
Chief Executive Officer
(Principal
Executive Officer)
|
|
|
||
|
|
/s/
Bernard Denoyer
|
|
|
|
||
|
Name:
Bernard Denoyer
Title:
Vice President - Controller
(Principal
Financial Officer)
|
|
|
|
|
|
|
/s/
V. Randy White
|
|
|
|
||
|
Name:
V. Randy White, Ph.D.
Title:
Chief Executive Officer
|
|
|
|
|
|
|
/s/
Bernard Denoyer
|
|
|
|
||
|
Name:
Bernard Denoyer
Title:
Vice President - Controller
|