NOVAVAX, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share information)
(unaudited)

                                         
    Three months ended           Six months ended
    June 30,                   June 30,
    2005   2004           2005   2004
Revenues:
                                        
Net product sales
   $ 1,889   $ 2,656           $ 2,608   $ 4,854
Contract research and development
   426   286           669   1,246
Milestone and licensing fees
   ––   63           ––   125
 
                                        
Total revenues
   2,315   3,005           3,277   6,225
 
                                        
Operating costs and expenses:
                                        
Cost of products sold
   2,027   1,501           4,006   1,763
Research and development
   1,377   1,229           2,599   4,277
Selling and marketing
   1,844   5,556           5,901   8,330
General and administrative
   2,292   2,059           4,413   4,091
Total operating costs and expenses
   7,540   10,345           16,919   18,461
 
                                        
Loss from operations
   (5,225 )   (7,340 )           (13,642 )   (12,236 )
 
                                        
Interest expense, net
   (491 )   (377 )           (960 )   (739 )
 
                                        
Net loss
   $ (5,716 )   $ (7,717 )           $ (14,602 )   $ (12,975 )
 
                                        
Basic and diluted loss per share
   $ (.14 )   $ (.22 )           $ (.37 )   $ (.37 )
 
                                        
Basic and diluted weighted average number of common shares outstanding
   39,553,876   34,779,657           39,553,876   34,750,944
 
                                        

Selected Balance Sheet Data

         
Cash & cash equivalents
     4,442  
Total current assets
     8,304  
Working capital
     2,673  
Total assets
     60,298  
Debt
     5,808  
Total stockholders’ equity
     18,694