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

338,838

Stock base compensation 270,245 55,650

Warrant repricing 74,593

Decrease in allowance for

doubtful accounts and sales

returns (14,101) (1,567,166)

Changes in assets and liabilities:

Accounts receivable 946,083 (524,467)

Inventories (3,358,488) 1,201,912

Prepaid expenses and other

current assets 986,132 113,540

Other receivable -- --

Accounts payable and accrued

expenses 224,627 78,398

Value-added and service taxes

payable 1,381,155 921,996

Unearned revenue 74,796 132,461

Advances from customers (35,710) (145,138)

NET CASH (USED IN) PROVIDED BY

OPERATING ACTIVITIES 4,742,275 4,942,964

CASH FLOWS FROM INVESTING ACTIVITIES:

Collections from related party

advances -- 521,930

Deposit on patent right (2,827,814)

Deposit on land use right (5,862,059)

Purchase of property and

equipment (217,982) (376,201)

NET CASH (USED IN) INVESTING

ACTIVITIES (8,907,855) 145,729

CASH FLOWS FROM FINANCING ACTIVITIES:

Net proceeds (payments) from

convertible debt (2,520,000) 2,950,000

Proceeds from sale of convertible

redeemable peferred stocks
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SOURCE Lotus Pharmaceuticals, Inc.
Copyright©2008 PR Newswire.
All rights reserved

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