Uroplasty Reports Continued Progress During Second Quarter of F...(ash and cash equivalents ...),Health

equivalents (194,967) 93,320

Net decrease in cash and cash equivalents (204,452) (453,955)

Cash and cash equivalents at beginning

of period 3,880,044 3,763,702

Cash and cash equivalents at end of period $3,675,592 $3,309,747

Supplemental disclosure of cash flow

information:

Cash paid during the period for interest $13,612 $17,024

Cash paid during the period for income taxes 35,474 38,923

Supplemental disclosure of non-cash financing

and investing activities:

Purchase of intellectual property funded

by issuance of stock $ - $4,658,861

Non-GAAP Financial Measures: The following table reconciles our financial results calculated in accordance with accounting principles generally accepted in the U.S. (GAAP) to non-GAAP financial measures that exclude non-cash charges for share-based compensation under SFAS 123 (R), and depreciation and amortization expenses from gross profit, operating expenses and operating loss. The non-GAAP financial measures used by management and disclosed by us are not a substitute for, or superior to, financial measures and consolidated financial results calculated in accordance with GAAP, and you should carefully evaluate our reconciliations to non-GAAP. We may calculate our non-GAAP financial measures differently from similarly titled measures used by other companies. Therefore, our non-GAAP financial measures may not be comparable to those used by other companies. We have described the reconciliations of each of our non-GAAP financial measures above to the most directly comparable GAAP financial measures.

Management uses our non-GAAP financial measures, and in particular non-GAAP operating loss, for internal managerial purposes because we believe such measures are one
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