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

5,000,000 --

Payment of debt issuance costs (468,568) (231,526)

Proceeds from related party

advances 774,571 2,866

Repayments of related party

advances -- (719,302)

Repayments of notes payable -

related parties -- (846,781)

NET CASH PROVIDED BY FINANCING

ACTIVITIES 2,786,003 1,155,257

EFFECT OF EXCHANGE RATE ON CASH 223,064 107,929

NET (DECREASE) INCREASE IN CASH (1,156,513) 6,351,879

CASH - beginning of period 4,557,957 2,089,156

CASH - end of period $3,401,444 $8,441,035

SUPPLEMENTAL DISCLOSURE OF CASH FLOW

INFORMATION:

Cash paid for:

Interest $56,557 $267,438

Income taxes $-- $--

Non-cash operating, investing and

financing activities:

Warrants issued for prepaid

financing costs $327,565 $--

Warrants issued for consulting

expenses $178,187

Common stock issued for

compensation $318,551

Common stock issued for

conversion of convertible debt $250,000 $--

Debt discount for grant of

warrants and beneficial

conversion feature $2,033,025 $--

See notes to unaudited consolidated financial statements.

F-5

LOTUS PHARMACEUTICALS, INC. AND SUBSIDIARIE
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SOURCE Lotus Pharmaceuticals, Inc.
Copyright©2008 PR Newswire.
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