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Lotus Pharmaceuticals Announces Second Quarter 2008 Results
Date:8/18/2008

res issued and outstanding

at June 30, 2008 and December 31,

2007, respectively) 42,420 41,794

Additional paid-in capital 11,277,143 8,095,848

Statutory reserves 2,616,019 2,161,505

Retained earnings 16,081,308 14,355,913

Other comprehensive gain -

cumulative foreign currency

translation adjustment 5,023,298 1,981,557

Total Shareholders' Equity 35,040,188 26,636,617

Total Liabilities and

Shareholders' Equity $49,016,208 $36,899,533

See notes to unaudited consolidated financial statements

F-3

LOTUS PHARMACEUTICALS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

For the Six Months Ended

June 30,

2008 2007

(As Restated)

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income $3,176,008 $3,878,826

Adjustments to reconcile net income

from operations to net cash

provided by (used in) operating

activities:

Depreciation and amortization 307,713 275,197

Amortization of deferred debt

issuance costs 162,029 88,020

Amortization of debt discount 208,355 433,735

Amortization of discount on

convertible redeemable preferred

stock
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SOURCE Lotus Pharmaceuticals, Inc.
Copyright©2008 PR Newswire.
All rights reserved

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