Insmed Announces First Quarter 2008 Financi...(Adjustments to reconcile net loss to net...)

used in operating activities:

Depreciation and amortization 292 82

Stock based compensation expense 133 56

Stock options issued for services - 8

Changes in operating assets and liabilities:

Accounts receivable (77) 130

Inventory - 576

Other assets 134 52

Accounts payable (100) (2,936)

Accrued project costs 12 (547)

Payroll liabilities 168 812

Deferred income 26 -

Asset retirement obligation - 147

Interest payable (3) -

Net cash used in operating activities (4,288) (11,873)

Investing activities

Decreases (increases) of short-term investments 5,601 12,044

Purchases of investments - (500)

Realized loss on investments 392 -

Net cash provided by investing activities 5,993 11,544

Financing activities

Repayment of convertible notes (553) -

Cash restricted to restricted letters of credit - 297

Net cash (used in) provided by financing activities (553) 297

Increase (decrease) in cash and cash equivalents 1,152 (32)

Cash and cash equivalents at beginning of period 3,554 2,121

Cash and cash equivalents at end of period $4,70
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