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Neuralstem Reports Second Quarter Financial Results and Highlights
Date:8/14/2008

ase in expenses in 2008 versus 2007 is a result of increased stock-based compensation expenses, payroll and legal (both patent and corporate), including legal expense related to patent work and litigation.

Other non-operating income for the three months ended June 30, 2008 and 2007 were $10,545, and $58,058 respectively. The decrease in 2008 relates to a reduction in short term interest rates which drives income derived from our cash balance.

Net loss for the three months ended June 30, 2008 and 2007 was $2,957,672 and $1,798,911, respectively.

Results of Operations for the Six Months ending June 30, 2008 and 2007:

There were no revenues for the six month period ending June 30, 2008. In the same period in the prior year the Company had $260,324 from a licensing agreement, sales of tissue products, and the substantial completion of a discontinued National Institute of Health grant.

Research and development expenses for the six month periods ending June 30, 2008 and 2007 were $2,832,572 and $1,626,639, respectively. The increase in expenses in current period consists mainly of payroll and payroll related expenses, stock based compensation expense, research supplies and costs incurred in connection with our current effort to produce preclinical data which results in animal surgeries, manufacturing of cells, and in vitro characterization of cells which includes testing and cell quality control.

General and administrative expenses for the six month periods ending June 30, 2008 and 2007 were $2,401,877 and $1,432,167, respectively. The principal increase in expenses in the current period versus the same period last year is a result of increases in professional fees and expenses related to accountants, legal and business advisors, stock based compensation expense.

Non-operating income for the six month period ending June 30, 2008 and 2007 were $31,862, and $76,961, respectively. The largest factor influencing the reduction i
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SOURCE Neuralstem Inc.
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