Favrille Reports First Quarter 2008 Financi...(m/discount on short-term investmen...)

on short-term investments (29) (177)

Change in valuation of warrants (89) -

Other 1 36

Changes in operating assets and

liabilities:

Other assets (163) (420)

Accounts payable and

accrued liabilities (315) (1,178)

Deferred rent 181 466

Net cash used in operating activities (8,699) (10,091)

Investing activities:

Purchases of property and equipment (187) (3,990)

Purchases of short-term investments (468) (6,263)

Maturities of short-term investments 500 14,900

Restricted cash (120) -

Net cash provided by (used in)

investing activities (275) 4,647

Financing activities:

Proceeds from debt - 4,362

Payments on debt (1,476) (1,186)

Issuance of common stock and warrants 177 10,207

Net cash provided by (used in)

financing activities (1,299) 13,383

Net increase (decrease) in cash

and cash equivalents (10,273) 7,939

Cash and cash equivalents at

beginning of period 26,362 14,249

Cash and cash equivalents at

end of period $ 16,089 $ 22,188

Supplemental non-cash activities:

Capitalized interest recorded as

property, plant and equipment $ 63 $
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