Restoragen, Inc. Balance Sheet As of April 30, 2003

ASSETS

Current Assets

Cash and cash equivalents

$

3,173,573

Accounts Receivable

Accounts Receivable

—

Other Current Assets

Prepaid Insurance

133,094

Prepaid Legal Fees

90,111

Total Other Current Assets

223,205

Total Current Assets

3,396,778

Fixed Assets

Property and equipment, net of accumulated depreciation $14,700

13,230

Total Fixed Assets

13,230

Other Assets

Loan Origination Fees

166,667

Total Other Assets

166,667

TOTAL ASSETS

$

3,576,675

LIABILITIES & SHAREHOLDERS’ DEFICIT

Liabilities

Current Liabilities

Accounts Payable

Accounts Payable

$

522,560

Total Accounts Payable

522,560

Other Current Liabilities

Accrued Corporate Restructuring - Current

610,027

Accrued Interest - Current

1,905,780

Note Payable - Current

18,000,000

Equipment Purchase Financing - Current

229,788

Note Payable Transamerica - Current

451,285

Total Other Current Liabilities

21,196,880

Total Current Liabilities

21,719,440

Long Term Liabilities

Accrued Corporate Restructuring - LT

412,320

Equipment Purchase Financing - LT

459,388

Note Payable Transamerica - LT

498,396

Total Long Term Liabilities

1,370,104

Total Liabilities

23,089,544

Redeemable preferred stock

Series A and A,F ($0.01 par value, 11,750 and 211,750 shares authorized, 11,750 and 20,092 issued and outstanding, at redemption value)

2,048,906

Shareholders’ deficit

Common stock, ($0.01 par value, 40,000,000 shares authorized, 7,379,415 shares issued and outstanding)

73,794

Convertible preferred stock, Series B,C,D,E,F,G,H ($0.01 par value, 706,500 shares authorized, 354,442 shares issued and outstanding)

3,544

Additional paid-in capital

81,316,926

Deficit accumulated during development stage

(102,956,039

)

Total Shareholders’ deficit

(21,561,775

)

TOTAL LIABILITIES, PREFERRED STOCK & SHAREHOLDERS’ DEFICIT

$

3,576,675