Spherix Announces First Quarter Financial Results

Consolidated Balance Sheets

ASSETS

March 31, 2011(Unaudited)

December 31, 2010

Current assets

Cash and cash equivalents

$         6,544,793

$    5,575,310

Trade accounts receivable, net of allowance of $0 and $65,000

193,125

285,859

Grants receivable

-

270,128

Other receivables

105,685

74,110

Prepaid research expenses

404,032

464,322

Prepaid expenses and other assets

146,226

155,261

         Total current assets

7,393,861

6,824,990

Property and equipment, net of accumulated depreciation

of $215,008 and $197,971

139,498

154,161

Patents, net of accumulated amortization of $1,839 and $50,725

307

2,296

Deposit

35,625

35,625

         Total assets

$         7,569,291

$    7,017,072

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable and accrued expenses

$            395,111

$    1,211,561

Accrued salaries and benefits

253,712

563,706

Deferred revenue

96,515

170,641

         Total current liabilities

745,338

1,945,908

Deferred compensation

-

550,000

Deferred rent

73,478

80,945

         Total liabilities

818,816

2,576,853

Commitments and contingencies

-

-

Stockholders' equity

Preferred stock, $0.01 par value, 2,000,000 shares authorized;

         5,250 series B issued and 1 outstanding at March 31, 2011

         and December 31, 2010

-

-

Common stock, $0.01 par value, 5,000,000 shares authorized;

         2,570,531 and 2,143,631 issued, 2,562,487 and 2,135,587

         outstanding at March 31, 2011 and December 31, 2010,

         respectively

25,705

21,436

Paid-in capital in excess of par value

41,110,137

38,568,814

Treasury stock, 8,043 shares, at cost at March 31, 2011

         and December 31, 2010

(464,786)

(464,786)

Accumulated deficit

(33,920,581)

(33,685,245)

         Total stockholders' equity

6,750,475

4,440,219

         Total liabilities and stockholders' equity

$         7,569,291

$    7,017,072