Smart Balance Announces 2008 First-Quart...(t liabilities: Accounts payable a...),Health

Accounts payable and accrued expenses $22,699,613 $20,355,419

Income taxes payable 1,050,149 1,035,149

Total current liabilities 23,749,762 21,390,568

Long term debt 89,504,174 119,504,174

Deferred tax liability 53,293,528 53,293,528

Other liabilities 35,626 --

Total liabilities 166,583,090 194,188,270

Commitment and contingencies:

Stockholders' equity

Series A Convertible Preferred stock,

$.0001 par value, 50,000,000 shares

authorized; 15,388,889 preferred shares

converted into 19,516,832 shares of common

stock on January 3, 2008 -- 175,659,013

Common stock, $.0001 par value,

250,000,000 shares authorized; 62,630,683

(March 31, 2008) and 43,113,863

(December 31, 2007) issued and

outstanding 6,263 4,311

Additional paid in capital 494,631,114 315,479,759

Retained deficit (80,141,691) (78,964,331)

Total stockholders' equity 414,495,686 412,178,752

Total liabilities and stockholders' equity $581,078,776 $606,367,022

SMART BALANCE, INC. AND SUBSIDIARY

Consolidated Statements of Operations

(Unaudited)

Three months Three months

ended ended

March 31, 2008 March 31, 2007

Net sales $50,765,739 $ --

Cost of goods sold
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