Neuralstem Inc. Reports 2007 Third Quarter Financial Results ...(nses and the establishment of a manageme...),Health

Other income for the three months ended September 30, 2007 and 2006 were approximately $59,099, and $385,720, respectively. The third quarter, 2006 includes $388,401 reversal of liability for the issuance of new warrants related to covenants in that year's issuance of common stock .Other Expense in 2006 was $2,681 net of the effect of the reversal. The increase in 2007 relates to interest income derived from our higher cash deposit balance compared to prior period.

Net loss for the three months ended September 30, 2007 and 2006 was $1,422,020 and $ 211,088, respectively.

Results of Operations for the Nine Months ending September 30, 2006 and 2007

Revenues for the nine month period ending September 30, 2007 were $306,057, compared with the same period in the prior year of $209,283. The increase in revenue is due to a licensing agreement, sales of tissue products, and the substantial completion of a National Institute of Health grant in 2007.

Research and development expenses for the nine month periods ending September 30, 2007 and 2006 were approximately $ 2,202,670 and $1,247,386, 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 nine month periods ending September 30, 2007 and 2006 were $2,359,515 and $763,664, 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 and the introduction of an in
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