(Unaudited)
|
||||
ASSETS
|
||||
CURRENT
ASSETS
|
||||
Cash
and cash equivalents
|
$
|
56,169
|
||
Prepaid
expenses and other current assets
|
9
|
|||
Due
from Novastar Resources Ltd.
|
505,824
|
|||
Total
Current Assets
|
562,002
|
|||
PROPERTY,
PLANT AND EQUIPMENT
|
||||
Property,
plant and equipment
|
47,057
|
|||
Accumulated
depreciation
|
(21,420
|
)
|
||
Total
Property, Plant and Equipment
|
25,637
|
|||
OTHER
ASSETS
|
||||
Patent
costs - net of accumulated amortization of $206,839
|
204,830
|
|||
Security
deposits
|
7,567
|
|||
Total
Other Assets
|
212,397
|
|||
TOTAL
ASSETS
|
$
|
800,037
|
||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||
CURRENT
LIABILITIES
|
||||
Current
portion of long-term debt
|
3,217
|
|||
Accrued
expenses and accounts payable
|
600,665
|
|||
Note
payable
|
-
|
|||
Other
current liabilities
|
101
|
|||
Total
Current Liabilities
|
603,982
|
|||
LONG-TERM
LIABILITIES
|
||||
Note
payable
|
12,657
|
|||
Total
Liabilities
|
616,640
|
|||
STOCKHOLDERS'
EQUITY
|
||||
Common
Stock-$.05 par value-authorized 20,000,000 shares; issued and outstanding
116,236,578 equivalent shares
|
226,778
|
|||
Common
stock and warrants - Additonal paid-in capital
|
16,797,554
|
|||
Deficit
accumulated during the development stage
|
(16,840,935
|
)
|
||
Total
Stockholders' Equity
|
183,397
|
|||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
800,037
|
Cumulative
|
||||||||||
From
|
||||||||||
For
the nine
|
For
the three
|
Inception
|
||||||||
months
ended
|
months
ended
|
Through
|
||||||||
September
30,
|
September
30,
|
September
30,
|
||||||||
2006
|
2006
|
2006
|
||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||
Revenue
|
||||||||||
License
revenue
|
$
|
-
|
-
|
$
|
624,985
|
|||||
Total
Revenue
|
-
|
-
|
624,985
|
|||||||
Costs
and expenses
|
||||||||||
Research
and development
|
10,000
|
0
|
3,902,158
|
|||||||
Salaries
|
221,100
|
73,700
|
3,726,114
|
|||||||
Professional
fees
|
694,531
|
509,682
|
2,757,656
|
|||||||
Allocated
expenses - Thorium Power, Ltd.
|
(505,824
|
)
|
(505,824
|
)
|
(505,824
|
)
|
||||
Other
selling, general and administrative expenses
|
287,658
|
124,591
|
4,723,838
|
|||||||
Total
operating expenses
|
707,465
|
202,149
|
14,603,942
|
|||||||
Loss
from operations
|
707,465
|
202,149
|
13,978,957
|
|||||||
Other
(income) expenses
|
||||||||||
Interest
(income) expense - net
|
4,508
|
4,508
|
(103,634
|
)
|
||||||
Other
(income) expense
|
(200
|
)
|
0
|
(359
|
)
|
|||||
Foreign
currency translation
|
4,500
|
4,500
|
4,500
|
|||||||
Stock
based compensation
|
105,000
|
105,000
|
2,334,871
|
|||||||
Settlement
costs
|
-
|
0
|
76,600
|
|||||||
Contributions
|
550,000
|
0
|
550,000
|
|||||||
Net
Loss
|
$
|
1,371,273
|
316,157
|
$
|
16,840,935
|
|||||
Basic
and diluted net loss per share
|
0.01
|
0.00
|
||||||||
Number
of equivalent shares used to compute per share data
|
98,818,395
|
98,818,395
|
Cumulative
|
|||||||
For
the nine
|
From
|
||||||
months
|
Inception
|
||||||
ended
|
Through
|
||||||
September
30,
|
September
30,
|
||||||
2006
|
2006
|
||||||
(Unaudited)
|
(Unaudited)
|
||||||
Cash
flows from operating activities:
|
|||||||
Net
(loss)
|
$
|
(1,371,273
|
)
|
$
|
(16,840,935
|
)
|
|
Adjustments
to reconcile net (loss) to net cash
|
|||||||
provided
by (used by) operating activities:
|
|||||||
Write-off
of foreign patent, including amortization
|
-
|
75,000
|
|||||
Depreciation
and amortization
|
19,584
|
290,909
|
|||||
(Gain)
loss on disposition of fixed assets
|
-
|
86,855
|
|||||
Issuance
of stock in exchange for technology and services
|
-
|
88,250
|
|||||
Due
from Novastar Resources, Ltd.
|
(505,824
|
)
|
(505,824
|
)
|
|||
Stock
based compensation
|
105,000
|
2,334,870
|
|||||
(Increase)
decrease in prepaid and other expenses
|
6,271
|
(9
|
)
|
||||
Increase
(decrease) in accrued and other expenses
|
(338,010
|
)
|
600,767
|
||||
Net
cash used by operating activities
|
(2,084,252
|
)
|
(13,870,117
|
)
|
|||
Cash
flows from investing activities:
|
|||||||
Patent
costs
|
(6,664
|
)
|
(411,669
|
)
|
|||
Security
deposits
|
-
|
(7,567
|
)
|
||||
Fixed
assets
|
(10,961
|
)
|
(285,145
|
)
|
|||
Loans
granted - related parties
|
-
|
(160,365
|
)
|
||||
Repayment
of loans - related parties
|
-
|
160,365
|
|||||
Proceeds
from sale of fixed assets
|
-
|
13,583
|
|||||
Net
cash used by investing activities
|
(17,626
|
)
|
(690,799
|
)
|
|||
Cash
flows from financing activities:
|
|||||||
Proceeds
from issuance of stock
|
2,202,673
|
14,498,011
|
|||||
Proceeds
from loans - related parties
|
4,100
|
388,790
|
|||||
Repayment
of loans - related parties
|
(45,931
|
)
|
(285,590
|
)
|
|||
Proceeds
from loan from payroll service
|
-
|
42,663
|
|||||
Repayment
of loan from payroll service
|
-
|
(42,663
|
)
|
||||
Net
changes in current portion of long-term debt
|
(918
|
)
|
3,217
|
||||
Proceeds
from issuance of long-term debt
|
-
|
18,082
|
|||||
Principal
repayments of long-term debt
|
(2,161
|
)
|
(5,426
|
)
|
|||
Net
cash provided by financing activities
|
2,157,763
|
14,617,084
|
|||||
Net
increase in cash and cash equivalents
|
55,886
|
56,169
|
|||||
|
|||||||
Cash
and cash equivalents - beginning of period
|
283
|
-
|
|||||
Cash
and cash equivalents - end of period
|
$
|
56,169
|
$
|
56,169
|
|||
Supplemental
disclosures
|
|||||||
Cash
paid - interest
|
$
|
687
|
$
|
5,497
|
|||
Non-Cash
Transactions:
|
|||||||
Conversion
of debt to equity
|
4,100
|
103,200
|