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<SEC-DOCUMENT>0001181431-05-025275.txt : 20050503
<SEC-HEADER>0001181431-05-025275.hdr.sgml : 20050503
<ACCEPTANCE-DATETIME>20050503171330
ACCESSION NUMBER:		0001181431-05-025275
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20050502
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20050503
DATE AS OF CHANGE:		20050503

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			OXIS INTERNATIONAL INC
		CENTRAL INDEX KEY:			0000109657
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				941620407
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-08092
		FILM NUMBER:		05796043

	BUSINESS ADDRESS:	
		STREET 1:		6040 N CUTTER CIRCLE STE 317
		CITY:			PORTLAND
		STATE:			OR
		ZIP:			97217
		BUSINESS PHONE:		5032833911

	MAIL ADDRESS:	
		STREET 1:		6040 N CUTTER CIRCLE STE 317
		CITY:			PORTLAND
		STATE:			OR
		ZIP:			97217

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DDI PHARMACEUTICALS INC
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DIAGNOSTIC DATA INC /DE/
		DATE OF NAME CHANGE:	19850312
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>rrd77471.htm
<TEXT>


<html><head>
<title>Prepared By R.R. Donnelley Financial -- Form 8-K</title>
</head>
<body Bgcolor="white">

<hr Size="4" Noshade Color="#000000" Align="left">

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="4" Color="#000000">
<b>UNITED STATES </b></font></div>

<div Align="center"><font Face="times New Roman" Size="4" Color="#000000">
<b>SECURITIES AND EXCHANGE COMMISSION </b></font></div>

<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>Washington D.C., 20549 </b></font></div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="5" Color="#000000">
<b>Form 8-K </b></font></div> <div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="4" Color="#000000">
<b>Current Report </b></font></div>

<div Align="center"><font Face="times New Roman" Size="4" Color="#000000">
<b>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 </b></font></div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>Date Of Report (Date Of Earliest Event Reported):&nbsp;&nbsp;05/02/2005 </b></font></div>




<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="5" Color="#000000">
<b>OXIS International, Inc. </b></font></div>

<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(Exact Name of Registrant as Specified in its Charter)</b></font></div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>Commission File Number:&nbsp;&nbsp;000-08092</b></font></div>

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<div Align="center"><table Cellspacing="0" Cellpadding="0" Width="100%" Border="0">
<tr>
<td Valign="bottom" Width="59%" Align="center">
<div Align="center"><font Face="times New Roman" Size="3" Color="#000000"><b>DE</b></font>
</div>
</td>
<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;&nbsp;</font>
</td>
<td Valign="bottom" Width="59%" Align="center">
<div Align="center"><font Face="times New Roman" Size="3" Color="#000000"><b>94-1620407</b></font>
</div>
</td>
</tr>

<tr>
<td Valign="top" Align="center" Width="59%">
<div Style="margin-left:2%; Text-indent:-2%" Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(State or Other Jurisdiction of</b></font>
</div>
</td>
<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;&nbsp;</font>
</td>
<td Valign="bottom" Align="center" Width="59%">
<div Align="center"><font Face="times New Roman" Size="2" Color="#000000"><b>(I.R.S. Employer</b></font>
</div>
</td>
</tr>

<tr>
<td Valign="top" Align="center" Width="59%">
<div Style="margin-left:2%; Text-indent:-2%" Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>Incorporation or Organization)</b></font>
</div>
</td>
<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;&nbsp;</font>
</td>
<td Valign="bottom" Align="center" Width="59%">
<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>Identification No.)</b></font>
</div>
</td>
</tr>

</table></div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>6040 N Cutter Circle Suite 317, Portland, OR 97217</b></font></div>


<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(Address of Principal Executive Offices, Including Zip Code)</b></font>
</div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>503-283-3911 </b></font>
</div>

<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(Registrant&#146;s Telephone Number, Including Area Code) </b></font>
</div>



<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b> </b></font>
</div>

<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(Former name or former address, if changed since last report) </b></font>
</div>


<div><font Size="1">&nbsp;</font>
</div>




<div Align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:<BR><BR>
</b></font>


</div>



<div Align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>[&nbsp;&nbsp;]&nbsp;&nbsp;
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR><BR>

[&nbsp;&nbsp;]&nbsp;&nbsp;
Soliciting material pursuant to Rule 14a-12 under the Exchange Act(17CFR240.14a-12)<BR><BR>


[&nbsp;&nbsp;]&nbsp;&nbsp;
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act(17CFR240.14d-2(b))<BR><BR>


[&nbsp;&nbsp;]&nbsp;&nbsp;
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act(17CFR240.13e-4(c))
</b>

</font>
</div>





<div><font Size="1">&nbsp;</font>
</div>

<hr Size="4" Noshade Color="#000000" Align="left">


<p Style='page-break-before:always'>
<p Align="center"><font Size="2">
Items to be Included in this Report</b>
</font>





<div><font Size="1">&nbsp;</font></div>

<div align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>Item 2.02.&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition</b></font>
</div>

<div><font Size="1">&nbsp;</font>
</div>

<div  align="left" Style="text-indent:4%"><font Face="times New Roman" Size="2" Color="#000000">
On May 2, 2005, OXIS International, Inc. issued a press release announcing its financial results for the quarter ended March 31, 2005.  A copy of the press release is attached as Exhibit 99.1.</font>
</div>

<div><font Size="1">&nbsp;</font></div>



<div><font Size="1">&nbsp;</font></div>

<div align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits</b></font>
</div>

<div><font Size="1">&nbsp;</font>
</div>

<div  align="left" Style="text-indent:4%"><font Face="times New Roman" Size="2" Color="#000000">
(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits:</div><div align="left" style="text-indent:4%">99.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Press release of OXIS International, Inc., dated May 2, 2005 reporting OXIS International, Inc.'s financial results for the quarter ended March 31, 2005.<p></div><div align="left" style="text-indent:4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information in the preceding paragraph, as well as Exhibit 99.1 referenced therein, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.</font>
</div>

<div><font Size="1">&nbsp;</font></div>



<hr  Size="3" Color="#cceeff" Width="100%" Align="center">
<p Align="center"><font Size="2">&nbsp;</font>
<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>Signature(s) </b></font>
</div>

<div><font Size="1">&nbsp;</font></div>

<div align="left" Style="text-indent:4%"><font Face="times New Roman" Size="2" Color="#000000">
Pursuant to the Requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the Undersigned hereunto
duly authorized. </font>
</div>

<div><font Size="1">&nbsp;</font></div>

<div><table Cellspacing="0" Cellpadding="0" Width="100%" Border="0">




<tr>
	<td Valign="top" Colspan="3" Width="53%"> <div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000"></font>
	</div>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font>
	</td>
	<td> <font Size="1">&nbsp;</font>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font>
	</td>	<td Valign="top" Align="center" Width="3%">
	<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
	</font>
	</div>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="top" Width="53%">
	<div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	OXIS International, Inc.</font>
	</div>	</td>
</tr>
<tr><td>&nbsp;</td></tr>
<tr><td>&nbsp;</td></tr>
<tr>
	<td Valign="top" Colspan="3" Width="53%"> <div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	Date: May 03, 2005.</font>
	</div>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font>
	</td>
	<td> <font Size="1">&nbsp;</font>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font>
	</td>	<td Valign="top" Align="center" Width="3%">
	<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
	By:</font>
	</div>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="top" Width="53%">
	<div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	/s/&nbsp;&nbsp;&nbsp;&nbsp;S. Colin Neill</font>
	</div>
	<hr Noshade Align="left" Color="#000000">
	</td>
</tr>

<tr>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="53%">
	<div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	S. Colin Neill</font>
	</div>
	</td>
</tr>

<tr>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="53%">
	<div><font Face="times New Roman" Size="2" Color="#000000">Secretary</font>
	</div>
</td>
</tr>
<tr><td>&nbsp;</td></tr>
<tr><td>&nbsp;</td></tr>



</table></div>





<p Style='page-break-before:always'>
<hr  Size="3" Color="#cceeff" Width="100%" Align="center">

<p Align="center"><font Size="2">&nbsp;</font>
<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>Exhibit Index </b></font>
</div>

<div><font Size="2">&nbsp;</font></div>

<div Align="center">
<table Cellspacing="0" Cellpadding="0" Width="100%" Border="0">




<tr>
	<td Valign="top" Align="left">
	<div Align="left"><font Face="times New Roman" Size="2" Color="#000000">
	<b>Exhibit&nbsp;No.</b></font>
	</div>
		<hr Size="2" Noshade Width="48" Color="#000000">
	</td>
	<td Valign="top" Width="3%" Align="left"><font Face="times New Roman" Size="2">&nbsp;&nbsp;</font></td>
	<td Valign="top" Width="100%" Align="left">
	<div><font Face="times New Roman" Size="2" Color="#000000">
	<b>Description</b></font>
	</div>
	<hr Size="2" Noshade Width="73" Align="left" Color="#000000">
	</td>
</tr>




<tr>
	<td Valign="top" Align="left">
	<div Align="top"><font Face="times New Roman" Size="1" Color="#000000">
	EX-99.1</font>
	</div>

	</td>
	<td Valign="top" Width="3%" Align="left"><font Face="times New Roman" Size="2">&nbsp;&nbsp;</font></td>
	<td Valign="top" Width="100%" Align="left">
	<div><font Face="times New Roman" Size="2" Color="#000000">
	Press Release dated May 2, 2005</font>
	</div>
		</td>
</tr>





</div></table>



</body></html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>rrd77471_5515.htm
<DESCRIPTION>PRESS RELEASE DATED MAY 2, 2005
<TEXT>



<HTML>


<HEAD>








<TITLE>FOR IMMEDIATE RELEASE</TITLE>


</HEAD>


<BODY>


<DIR>


<DIR>





<B><I><FONT SIZE=3><P>FOR IMMEDIATE RELEASE</P>


</B></I>


<P>Media Relations</P>


<P>Will Anderson<BR>


Obidicut LLC</P>


<P>(503) 452-7621 </P>


<P>www.obidicut.net </P>





</FONT><P>&nbsp;</P>


<B><P ALIGN="CENTER">OXIS REPORTS INCREASE IN FIRST QUARTER REVENUES</P>


<I><P ALIGN="CENTER"></P>


<P ALIGN="CENTER">Losses Decrease By 60% From Previous Year</P>


</B></I>


<B><P>PORTLAND, Ore.--May 2, 2005 </B>-- OXIS International, Inc. (OTCBB:OXIS) (Noveau Marche:OXIS) today reported that revenues from its research assays and fine chemicals rose 11%  during the first quarter of 2005, as compared to the first quarter of 2004.  The Company reported revenues of $631,000 for the first quarter of 2005, an increase over $567,000 in revenues reported in the first quarter of 2004.  The net loss for the first quarter of 2005 was $238,000, or $0.01 per basic and diluted common share, compared to a net loss of $593,000, or $0.02 per basic and diluted common share in the first quarter of 2004.  </P>





<P>The cost of sales decreased from 56% in the first quarter of 2004 to 45% in the first quarter of 2005, due primarily to a more fully utilized manufacturing facility in meeting increased demand.  Earnings also improved due to a decrease in operating expenses by 15%, from $696,000 in the first quarter of 2004 to $587,000 in the first quarter of 2005.</P>





<P>&quot;The combination of a rededication to our research assay sales efforts and improvement in our operational efficiencies has started to show results during the first quarter,&quot; stated Steve Guillen, CEO of OXIS.  &quot;As we accelerate our sales growth in oxidative-stress research products, we are also making great strides in advancing our cardiac predictor technologies and launching powerful antioxidant products into the neutraceutical market.&quot;</P>





<P>OXIS International Inc., headquartered in Portland, Oregon, focuses on developing technologies and products to research, diagnose, treat and prevent diseases associated with damage from free radical and reactive oxygen species -- diseases of oxidative stress. The company holds the rights to three therapeutic classes of compounds in the area of oxidative stress, and develops, manufactures and markets products and technologies to diagnose and treat diseases caused by oxidative stress.</P>





<FONT SIZE=2><P>Statements in this release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, any statements regarding beliefs, plans, estimates, projections, expectations, goals or intentions regarding the future. Forward-looking statements in this release include statements regarding growth of the Company's oxidative stress assays, advances of the Cardiac Predictor technologies and commercialization of the antioxidant Ergothioneine as a nutritional supplement.  Factors that could cause actual results to differ materially from the forward-looking statements include risks and uncertainties such as unforeseen difficulties related to the company's oxidative stress and other diagnostic products; decreases in the rate of spending by the company's customers; the development by the company's competitors of new competing products; and other risks indicated
 in the company's filings with the Securities and Exchange Commission. It is important to note that actual outcomes could differ materially from those in such forward-looking statements.  Readers should also refer to the documents filed by the company with the Securities and Exchange Commission, specifically the annual report on Form 10-KSB for the year ended December&nbsp;31, 2004, filed with the Securities and Exchange Commission on February 25, 2005 and the company's quarterly report on Form 10-QSB after its filing with the Securities and Exchange Commission . </P>


</FONT><B><P ALIGN="CENTER"></P>


<P ALIGN="CENTER">&nbsp;</P></DIR>


</DIR>





<P ALIGN="CENTER">OXIS INTERNATIONAL, INC. AND SUBSIDIARIES</P>


<P ALIGN="CENTER">CONSOLIDATED STATEMENTS OF OPERATIONS</P>


<P ALIGN="CENTER">(In thousands of dollars, except earnings per share data)</P>


<P ALIGN="CENTER"></P>


</B><P ALIGN="CENTER">&nbsp;</P>


<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=607>


<TR><TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>


<TD WIDTH="54%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>


<TD WIDTH="40%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=25>


<FONT SIZE=3><P ALIGN="CENTER">Three months ended</FONT></TD>


</TR>


<TR><TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=63><P></P></TD>


<TD WIDTH="54%" VALIGN="BOTTOM" HEIGHT=63><P></P></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=63><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=63>


<FONT SIZE=3><P ALIGN="CENTER">March 31, 2005 (unaudited)</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=63><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=63>


<FONT SIZE=3><P ALIGN="CENTER">March 31, </P>


<P ALIGN="CENTER">2004 (unaudited)</FONT></TD>


</TR>


<TR><TD WIDTH="58%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=21>


<FONT SIZE=3><P>Revenues</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">$631</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">$567</FONT></TD>


</TR>


<TR><TD WIDTH="58%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=21>


<FONT SIZE=3><P>Cost of revenues</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">286</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">315</FONT></TD>


</TR>


<TR><TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="54%" VALIGN="TOP" HEIGHT=21>


<FONT SIZE=3><P>Gross profit</FONT></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=21><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">345</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">252</FONT></TD>


</TR>


<TR><TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="54%" VALIGN="TOP" HEIGHT=21><P></P></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=21><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


</TR>


<TR><TD WIDTH="58%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=21>


<FONT SIZE=3><P>Operating expenses:</FONT></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=21><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


</TR>


<TR><TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="54%" VALIGN="TOP" HEIGHT=21>


<FONT SIZE=3><P>Research and development</FONT></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=21><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">51</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">95</FONT></TD>


</TR>


<TR><TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="54%" VALIGN="TOP" HEIGHT=21>


<FONT SIZE=3><P>Selling, general and administrative</FONT></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=21><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">536</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">601</FONT></TD>


</TR>


<TR><TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="54%" VALIGN="TOP" HEIGHT=21><DIR>


<DIR>





<FONT SIZE=3><P>Total operating expenses</DIR>


</DIR>


</FONT></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=21><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">587</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">696</FONT></TD>


</TR>


<TR><TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="54%" VALIGN="TOP" HEIGHT=21><P></P></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=21><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


</TR>


<TR><TD WIDTH="58%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=21>


<FONT SIZE=3><P>Operating loss</FONT></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=21><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">(242)</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">(444)</FONT></TD>


</TR>


<TR><TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="54%" VALIGN="TOP" HEIGHT=21><P></P></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=21><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


</TR>


<TR><TD WIDTH="58%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=22>


<FONT SIZE=3><P>Other income and expenses:</FONT></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=22><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=22>


<FONT SIZE=3><P ALIGN="RIGHT">&nbsp;</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


</TR>


<TR><TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="54%" VALIGN="TOP" HEIGHT=21>


<FONT SIZE=3><P>Financing fees</FONT></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=21><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">--</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">(136)</FONT></TD>


</TR>


<TR><TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="54%" VALIGN="TOP" HEIGHT=21>


<FONT SIZE=3><P>Interest income</FONT></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=21><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">8</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">--</FONT></TD>


</TR>


<TR><TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="54%" VALIGN="TOP" HEIGHT=21>


<FONT SIZE=3><P>Interest expense</FONT></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=21><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">(4)</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">(13)</FONT></TD>


</TR>


<TR><TD WIDTH="4%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="54%" VALIGN="TOP" HEIGHT=21><DIR>


<DIR>





<FONT SIZE=3><P>Total other income and expenses</DIR>


</DIR>


</FONT></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=21><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">4</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">(149)</FONT></TD>


</TR>


<TR><TD WIDTH="58%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=22><P></P></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=22><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


</TR>


<TR><TD WIDTH="58%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=22>


<FONT SIZE=3><P>Loss before income taxes</FONT></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=22><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=22>


<FONT SIZE=3><P ALIGN="RIGHT">(238)</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=22>


<FONT SIZE=3><P ALIGN="RIGHT">(593)</FONT></TD>


</TR>


<TR><TD WIDTH="58%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=22><P></P></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=22><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


</TR>


<TR><TD WIDTH="58%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=22>


<FONT SIZE=3><P>Income taxes</FONT></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=22><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=22>


<FONT SIZE=3><P ALIGN="RIGHT">--</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=22>


<FONT SIZE=3><P ALIGN="RIGHT">--</FONT></TD>


</TR>


<TR><TD WIDTH="58%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=22><P></P></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=22><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


</TR>


<TR><TD WIDTH="58%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=22>


<FONT SIZE=3><P>Net loss</FONT></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=22><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=22>


<FONT SIZE=3><P ALIGN="RIGHT">$(238)</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=22>


<FONT SIZE=3><P ALIGN="RIGHT">$(593)</FONT></TD>


</TR>


<TR><TD WIDTH="58%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=22>


<FONT SIZE=3><P>Other comprehensive income/(loss)</P>


<P>&#9;Foreign currency translation adjustment</FONT></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=22><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=22>


<FONT SIZE=3><P ALIGN="RIGHT">--</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=22>


<FONT SIZE=3><P ALIGN="RIGHT">(34)</FONT></TD>


</TR>


<TR><TD WIDTH="58%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=22><P></P></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=22><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


</TR>


<TR><TD WIDTH="58%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=22>


<FONT SIZE=3><P>Comprehensive loss</FONT></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=22><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=22>


<FONT SIZE=3><P ALIGN="RIGHT">$(238)</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=22>


<FONT SIZE=3><P ALIGN="RIGHT">$(627)</FONT></TD>


</TR>


<TR><TD WIDTH="58%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=22><P></P></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=22><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


</TR>


<TR><TD WIDTH="58%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=22>


<FONT SIZE=3><P>Net loss per common share -- basic and diluted</FONT></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=22><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=22>


<FONT SIZE=3><P ALIGN="RIGHT">$(0.01)</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=22>


<FONT SIZE=3><P ALIGN="RIGHT">$(0.02)</FONT></TD>


</TR>


<TR><TD WIDTH="58%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=22><P></P></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=22><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


</TR>


<TR><TD WIDTH="58%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=22>


<FONT SIZE=3><P>Weighted average number of shares</P>


<P>  used in computation -- basic and diluted</FONT></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=22><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=22>


<FONT SIZE=3><P ALIGN="RIGHT">41,628,877</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


<TD WIDTH="19%" VALIGN="BOTTOM" HEIGHT=22>


<FONT SIZE=3><P ALIGN="RIGHT">26,545,864</FONT></TD>


</TR>


</TABLE>





<P ALIGN="CENTER"></P>


<P ALIGN="CENTER">&nbsp;</P>


<P ALIGN="CENTER">&nbsp;</P>


<B><P ALIGN="CENTER">CONSOLIDATED BALANCE SHEET INFORMATION</P>


<P ALIGN="CENTER">(In thousands of dollars)</P>


</B><P ALIGN="CENTER"></P>


<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=599>


<TR><TD WIDTH="33%" VALIGN="BOTTOM" HEIGHT=63><P></P></TD>


<TD WIDTH="25%" VALIGN="BOTTOM" HEIGHT=63><P></P></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=63><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=63>


<FONT SIZE=3><P ALIGN="CENTER">March 31, 2005 </P>


<P ALIGN="CENTER">(unaudited)</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=63><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=63>


<FONT SIZE=3><P ALIGN="CENTER">December 31, 2004</FONT></TD>


</TR>


<TR><TD WIDTH="59%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=21><P></P></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


</TR>


<TR><TD WIDTH="59%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=21>


<FONT SIZE=3><P>Current assets</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">$5,724</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">$7,540</FONT></TD>


</TR>


<TR><TD WIDTH="33%" VALIGN="BOTTOM" HEIGHT=22>


<FONT SIZE=3><P>Total assets</FONT></TD>


<TD WIDTH="25%" VALIGN="TOP" HEIGHT=22><P></P></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=22><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=22>


<FONT SIZE=3><P ALIGN="RIGHT">6,826</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=22>


<FONT SIZE=3><P ALIGN="RIGHT">8,596</FONT></TD>


</TR>


<TR><TD WIDTH="59%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=21>


<FONT SIZE=3><P>Current liabilities</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">949</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=21>


<FONT SIZE=3><P ALIGN="RIGHT">2,680</FONT></TD>


</TR>


<TR><TD WIDTH="33%" VALIGN="TOP" HEIGHT=22>


<FONT SIZE=3><P>Total equity</FONT></TD>


<TD WIDTH="25%" VALIGN="TOP" HEIGHT=22><P></P></TD>


<TD WIDTH="3%" VALIGN="TOP" HEIGHT=22><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=22>


<FONT SIZE=3><P ALIGN="RIGHT">5,877</FONT></TD>


<TD WIDTH="3%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>


<TD WIDTH="18%" VALIGN="BOTTOM" HEIGHT=22>


<FONT SIZE=3><P ALIGN="RIGHT">5,916</FONT></TD>


</TR>


</TABLE>





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