The table below analyses the net cash operating expense by financial line item for the twelve
months ended 31 December 2010 and 2009.
(in millions) 31 December 2010 31 December 2009
General and administrative $2.9 $ 3.8
Business development 0.6 2.8
Research and product development 2.8 3.8
Total $6.3 $10.4
Liquidity and Cash Flo w: Cash used in operations for 2010 was US$(2.7 million) compared
to US$(7.7 million) for 2009, a US$5.0 million improvement. This improvement was driven
by several significant factors. As previously mentioned, cash operating expenses for the year
decreased by US$4.1 million, the receipt of the upfront payment from Terminix upon the execution
of our expanded product development agreement contributed an additional US$2.5 million
in improvement, with these items offset by an increase in working capital of US$1.4 million and
other items of US$0.2 million.
Cash flow from financing activities in 2010 was US$4.8 million, compared to nil in 2009. The
Company raised US$4.8 million in additional share capital, net of offering expenses, in 2010
through the issuance of an additional 30.0 million shares of its common stock.
Cash and cash equivalents were US$3.3 million at the end of 2010 (2009: US$1.3 million). We
invest our cash resources in deposits with banks with the highest credit ratings, putting security
before absolute levels of return.
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