Exhibit 99.1
 

Thorium Power Ltd
Interim Balance Sheet
September 30, 2006

   
(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
 
 


Exhibit 99.1
 
Thorium Power Ltd
Interim Statements of Operations
September 30, 2006

           
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
       



Exhibit 99.1

Thorium Power Ltd
Interim Statements of Cash Flows
September 30, 2006

        
 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