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

		Three months ended												Nine months ended
		September 30,												September 30,
		2005				2004								2005				2004
Revenues:
Net product sales		$	1,300			$	(664	)						$	3,908			$	4,190
Contract research and development			417				653								1,086				1,899
Milestone and licensing fees			150				––								150				125
Total revenues			1,867				(11	)							5,144				6,214
Operating costs and expenses:
Cost of products sold			1,068				364								5,074				2,128
Research and development			1,161				1,552								3,759				5,828
Selling and marketing			930				8,931								6,832				17,261
General and administrative			1,694				1,901								6,109				5,992
Facility exit costs			107				723								105				723
Gain on sale of product assets			(856	)			––								(856	)			––
Gain on redemption of debt			––				(11,162	)							––				(11,162	)
Total operating costs and expenses			4,104				2,309								21,023				20,770
Loss from operations			(2,237	)			(2,320	)							(15,879	)			(14,556	)
Interest expense, net			(490	)			(337	)							(1,450	)			(1,075	)
Net loss		$	(2,727	)		$	(2,657	)						$	(17,329	)		$	(15,631	)
Basic and diluted loss per share		$	(.06	)		$	(.07	)						$	(.42	)		$	(.43	)
Basic and diluted weighted average number of common shares outstanding			43,469,637				38,577,458								40,873,473				36,040,465

Selected Balance Sheet Data
Cash & cash equivalents						$	6,944
Total current assets							10,704
Working capital							5,996
Total assets							60,546
Convertible Notes							35,000
Total Stockholder’s Equity						$	19,902