OPKO Health, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

		For the year ended December 31, 2007			For the period from inception (June 23, 2006) to December 31, 2006
Cash flows from operating activities
Net loss		$	(268,405	)	$	(877	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			184			-
Write-off of acquired in-process research and development			243,761			-
Accretion of debt discount related to notes payable			279			-
Loss from investment in OTI			629			-
Equity based compensation - employees and non-employees			7,373			260
Changes in:
Accounts receivable			(554	)		-
Inventory			(317	)		-
Prepaid expenses and other current assets			(789	)		-
Accounts payable			(607	)		95
Accrued expenses			1,497			-
Net cash used in operating activities			(16,949	)		(522	)
Cash flows from investing activities
Investment in 33% of Ophthalmic Technologies, Inc.			(5,000	)		-
Acquisition of businesses, net of cash			2,751			-
Capital expenditures			(489	)		-
Net cash used in investing activities			(2,738	)		-
Cash flows from financing activities:
Issuance of common stock for cash to related party			20,000			638
Issuance of common stock			16,284			-
Borrowings under line of credit with related party			8,000			-
Insurance financing			152			-
Proceeds from the exercise of stock options			123			-
Repayments of notes payable and capital lease obligations			(1,615	)		-
Net cash provided by financing activities			42,944			638
Net change in cash and cash equivalents			23,257			116
Cash and cash equivalents at beginning of period			116			-
Cash and cash equivalents at end of period		$	23,373		$	116