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FINANCIAL STATEMENTS
DELTAGEN, INC.
CONSOLIDATED
BALANCE SHEETS
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Consolidated Balance Sheet
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For Fiscal Year Ending 12/31/2005
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and Quarters ending 3/31/06 & 6/30/06
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Audited
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Unaudited
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Unaudited
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(In Thousands)
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12/31/05
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03/31/06
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06/30/06
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Consolidated
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Consolidated
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Consolidated
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Assets
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Current assets:
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Cash and cash equivalents
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11,557
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10,434
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10,789
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Accounts receivable, net
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2,487
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1,561
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3,380
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Prepaids, Deposits and Tax
Assets
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1,503
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490
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640
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Total current assets
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15,547
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12,485
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14,809
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Property and equipment, net
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139
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84
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73
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Non-current portion of
deferred tax assets
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1,000
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848
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400
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Total assets
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16,686
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13,417
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15,282
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Liabilities and Stockholders'
Equity
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Current liabilities:
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Accounts payable
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4,296
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1,539
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1,591
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Accrued expenses
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876
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80
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143
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Total liabilities
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5,172
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1,619
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1,734
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Stockholders' equity:
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Common stock
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39
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39
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39
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Treasury Stock
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(867)
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(867)
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(867)
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Additional paid-in capital
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238,648
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238,648
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217,223
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Additional paid-in capital
- Stock-based compensation
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-
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-
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21,548
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Retained Earnings
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(226,306)
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(226,089)
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(224,606)
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Foreign currency
translation adjustment
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-
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67
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211
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Total stockholders' equity
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11,514
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11,798
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13,548
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Total liabilities and
stockholders' equity
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16,686
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13,417
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15,282
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The accompanying notes are an integral part of these
consolidated financial statements.
DELTAGEN, INC.
CONSOLIDATED
INCOME STATEMENT
(UNAUDITED)
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Consolidated Income Statement and
Statement of Retained Earnings
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For Quarters ending 3/31/06 & 6/30/06
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Unaudited
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Unaudited
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(In Thousands)
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03/31/06
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06/30/06
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Consolidated
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Consolidated
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Revenue
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1,882
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3,749
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Royalty and Commission
Costs
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493
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1,125
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Stock-Based Compensation
Expense
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-
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123
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Other Operating Costs
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1,062
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767
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Income From Operations
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327
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1,734
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Interest Income
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97
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87
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Loss on disposal of assets
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(44)
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-
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Total Other Income
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53
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87
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Income before provision for
income taxes
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380
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1,821
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Provision for income taxes
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Current income tax expense
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11
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39
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Deferred income tax expense
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152
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817
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Adjustment for valuation allowance
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-
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(518)
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Total income tax expense
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163
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338
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Net Income (Loss)
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217
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1,483
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Retained earnings at
beginning of period
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(226,306)
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(226,089)
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Retained earnings at end of
period
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(226,089)
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(224,606)
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The accompanying notes are an integral part of these
consolidated financial statements.
DELTAGEN, INC.
CONSOLIDATED
CASH FLOW
(UNAUDITED)
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Consolidated Cash Flow
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For Quarters ending 3/31/06 & 6/30/06
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Unaudited
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Unaudited
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(In Thousands)
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03/31/06
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06/30/06
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Consolidated
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Consolidated
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Cash flows from operating
activities:
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Net Income
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217
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1,483
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Adjustments to reconcile
net income to net cash
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used by operating
activities
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Depreciation
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11
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11
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Loss on disposal of fixed assets
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44
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-
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Stock-based compensation expense
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-
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123
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(Increase) / Decrease in
operating assets
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Accounts receivable
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926
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(1,819)
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Prepaids, deposits and tax assets
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1,165
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298
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Increase / (Decrease) in
operating liabilities
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Accounts payable
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(2,757)
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52
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Accrued Expenses
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(796)
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63
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Net Increase (Decrease) in
cash
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(1,190)
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211
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Effect of foreign exchange
rate change on cash
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67
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144
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Cash at beginning of period
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11,557
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10,434
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Cash at end of period
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10,434
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10,789
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The accompanying notes are an integral part of these
consolidated financial statements.
DELTAGEN, INC.
NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
FOR SECOND
QUARTER 2006
June 30, 2006
1. Basis of Presentation
The accompanying consolidated financial
statements of Deltagen, Inc. ("Deltagen" or the "Company") for the three months
ended June 30, 2006 are unaudited, but have been prepared on an accrual basis
of accounting in accordance with accounting principles generally accepted in
the United States of America
("GAAP") for interim financial information.
These consolidated financial statements
have been prepared so that they present fairly, in the opinion of management,
the Company's financial position and its results of operations and its cash
flows for the period presented. In the
opinion of management, all adjustments (consisting of normal recurring adjustments)
considered necessary for a fair presentation have been included.
The preparation of
consolidated financial statements in conformity with GAAP requires the Company
to make estimates and assumptions that affect the amounts that are reported in
the consolidated financial statements and accompanying disclosures. Although these estimates are based on the
Company's best knowledge of current events and actions that the Company may
undertake in the future, actual results may differ materially from the
estimates.
Operating results for the three-month
period ended June 30, 2006 or any other quarter are not necessarily indicative
of the results that may be expected or achieved for the year ended December 31,
2006.
Under our revenue recognition policy,
revenues are recognized when a definitive agreement with a determinable price
exists, product delivery and/or invoicing (in each case where there is
reasonable assurance of meeting customer-specified criteria) have occurred, and
collectibility is reasonably assured.
Cash and
cash equivalents include cash in banks and money market mutual funds with a
maturity of three months or less when purchased.
Property
and equipment are recorded at cost less accumulated depreciation and
amortization. Depreciation and
amortization are computed using the straight-line method over the estimated
useful lives of assets ranging from three to seven years. Expenditures for
major renewals and betterments that extend the useful lives of property and
equipment are capitalized. Expenditures for maintenance and repairs are charged
to expenses as incurred. When an asset
is sold or retired, the related cost and accumulated depreciation are removed
from the accounts and any resulting gain or loss on disposition is recognized
in the current year.
Property and equipment is summarized by major
classification as follows:
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(Dollars in Thousands)
|
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Computers
|
$
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1,370
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