Current Last Year Current Last
Quarter Quarter Year to Date Year to Date
2007 2006 2007 2006
$ $ $ $
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OPERATING
ACTIVITIES
Net loss for the
period (4,217,165) (2,913,071) (8,029,923) (5,653,935)
Add (deduct)
non-cash items:
Amortization 614,146 1,144,622 1,145,228 1,828,363
Accreted interest
on convertible
term note - 510,587 - 619,413
Change in unrealized
loss (gain) on
foreign currency
embedded
derivatives 44,453 - (138,203) -
Foreign exchange
loss (gain) 21,667 351,777 (53,451) 345,644
Stock-based
compensation 94,228 55,242 178,974 111,022
Share compensation 253,437 81,000 253,437 81,000
Employee share
ownership plan 163,553 212,662 311,322 212,662
Impairment of
investment - - - 175,000
Loss on sale of
investment - 17,157 - 17,157
Gain on sale of
right to future
royalty stream - (2,127,587) - (2,127,587)
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(3,025,681) (2,667,611) (6,332,616) (4,391,261)
Net change in
non-cash working
capital balances (1,475,702) 792,819 (830,764) 1,097,708
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