Helix BioPharma reports Q2 2008 highlights, financi...( Amortization of intangible and capita...)

Amortization of intangible and capital assets

Amortization of capital assets in the three and six month period ended January 31, 2008, totaled $63,000 and $129,000, respectively, compared to $73,000 and $150,000, respectively, a year ago. Capital asset purchases were minimal in the six month period ended January 31, 2008.

Amortization of intangible assets in the three and six month periods ended January 31, 2008, totaled $3,000 and $10,000, respectively, compared to $39,000 and $79,000, respectively, a year ago. The variance is due to certain intangible assets that have now been fully amortized.

Stock-based compensation

Stock-based compensation expense in the three and six month periods ended January 31, 2008, totaled $12,000 and $24,000, respectively, compared to $12,000 and $24,000, respectively, a year ago. The stock-based compensation expense relates to the ongoing amortization of compensation costs of stock options granted on June 30, 2005, over their vesting period.

Interest income

Interest income in the three and six months ended January 31, 2008, totaled $181,000 and $285,000, respectively, compared to $142,000 and $244,000, respectively, a year ago.

Foreign exchange loss

The Company realized foreign exchange gains in the three and six month periods ended January 31, 2008, of $153,000 and $45,000, respectively, compared to $172,000 and $127,000, respectively, last year. The net assets in Europe consist mainly of cash and cash equivalents that are denominated in Euros and used to fund clinical trials in Europe.

Income taxes

Income tax expense in the three and six months ended January 31, 2008 totaled $30,000 and $62,000, respectively, compared to $29,000 and $58,000, respectively, a year ago. All income taxes are attributable to the Company's operations in Europe.

CASH FLOW

Operating activities

For the three month periods ended January 31, 2008 and 2007, ca
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