SINOVAC BIOTECH LTD. | |||||
Incorporated in Antigua and Barbuda | |||||
Consolidated Statements of Cash Flows | |||||
Three months ended March 31, 2011 and 2010 | |||||
(Unaudited) | |||||
(Expressed in U.S. Dollars) | |||||
Three months ended | |||||
March 31 | |||||
2011 | 2010 | ||||
Cash flows from (used in) operating activities | |||||
Net loss | $ | (3,664,676) | $ | (1,212,698) | |
Adjustments to reconcile net income to net cash | |||||
provided by operating activities: | |||||
- deferred income taxes | 310,422 | 692,520 | |||
- stock-based compensation | 32,662 | 103,664 | |||
- inventory provision | - | 16,206 | |||
- write-down of equipment and loss on disposal | 7,704 | 687,095 | |||
- research and development expenditures qualified for | |||||
government grant | (73,390) | (17,554) | |||
- depreciation of property, plant and equipment | |||||
and amortization of licenses and permits | 1,192,706 | 891,007 | |||
- deferred government grant recognized in income | (68,482) | (65,830) | |||
- accretion expense | 101,845 | - | |||
Changes in: | |||||
- accounts receivable | 46,577 | 1,829,731 | |||
- inventories | (2,281,688) | (3,771,749) | |||
- income tax payable (refundable) | (103,393) | (2,628,408) | |||
- prepaid expenses and deposits | (9,231) | (335,770) | |||
- deferred revenue and advances from customers | (302,680) | (234,054) | |||
- accounts payable and accrued liabilities | (2,878,114) | (6,100,581) | |||
Net cash used in operating activities | (7,689,736) | (10,146,421) | |||
Cash flows from (used in) financing activities | |||||
- Loan proceeds | - | 8,265,031 | |||
- Proceeds from issuance of common stock, | |||||
net of share issuance costs | 284,709 | 61,867,706 | |||
- Dividends paid to non-controlling shareholder | |||||
of Sinovac Beijing | (2,456,884) | - | |||
- Government grant received | - | 46,811 | |||
- Loan to non-controlling shareholder of Sinovac Beijing
| - | (6,572,159) | |||
Net cash provided by (used in) financing activities | (2,172,175) | 63,607,389 | |||
Cash flows used in investing activities | |||||
- Proceeds from disposal of equipment | - | 189,876 | |||
- Proceeds from redemption of short-term investments | - | 7,314,187 | |||
- Purchase of short-term investments | - | (8,338,173) | |||
- Deposits for acquisition of equipment | (1,529) | (8,265,031) | |||
- Acquisition of property, plant and equipment | (1,153,348) | (448,165) | |||
Net cash used in investing activities | (1,154,877) | (9,489,345) | |||
Exchange gain on cash and cash equivalents | 407,599 | 7,630 | |||
Increase in cash and cash equivalents | (10,609,191) | 43,979,253 | |||
Cash and cash equivalents, beginning of period | 101,585,490 | 74,953,212 | |||
Cash and cash equivalents, end of period | $ | 90,976,299 | $ | 118,932,465 | |
Cash paid for interest | $ | 103,393 | $ | 268,279 | |
Cash paid for income taxes | $ | 306,017 | $ | 1,653,353 | |
Supplemental schedule of non-cash activities: | |||||
Acquisition of property, plant and equipment included in | |||||
accounts payable and accrued liabilities | $ | 831,592 | $ | 798,541 | |
