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GeneNews Announces Second Quarter Results

Date:8/7/2008

--------------------------

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Expressed in Canadian dollars)

Three months Three months Six months Six months

ended ended ended ended

June June June June

2008 2007 2008 2007

-------------------------------------------------------------------------

Cash flows provided

by (used in):

Operations:

Net and

comprehensive

loss for

the period $ (3,994,800) $ (2,301,519) $ (6,581,110) $ (3,972,769)

Items therein

not requiring

cash

Stock based

compensation 352,264 131,747 494,538 278,186

Amortization

of capital

assets 213,183 89,917 358,365 174,862

Amortization of

intellectual

property 110,537 110,537 221,074 221,074

-------------------------------------------------------------------------

(3,318,816) (1,969,318) (5,507,133) (3,298,647)

Changes in

non-cash working

capital:

Accounts

receivable 397,391 (245,835) 861,483 (311,706)

Investment

tax credit

recoverable 403,141 - 867,722 -

Prepaid expenses

and deposits 103,452 166,687 57,583 241,671

Accounts payable

and accrued

liabilities 220,553 122,972 (17,018) 120,718

Deferred revenue (288,437) 531,700 (582,723) 531,700

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SOURCE GeneNews Limited
Copyright©2008 PR Newswire.
All rights reserved

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