NOVA PHARMACEUTICAL INC
( A DEVELOPMENT STAGE COMPANY )
BALANCE SHEETS<TABLE><CAPTION>
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Mar 31, 1999 Dec 31,1998
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<S> <C> <C>
ASSETS CURRENT ASSETS
Cash $ 35,360 $ 103,644
Accounts Receivable-Net 241,592 399,527
Inventory 53,072 66,751
Prepaid Expenses 131,129 146,251
Loans Receivable 15,262 15,736
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TOTAL CURRENT ASSETS 476,415 731,909
FURNITURE AND FIXTURES 43,371 39,490
OTHER ASSETS
Formulae 452,500 460,000
Prepaid royalties 186,119 188,136
Licensing and Registration 275,000 280,000
Organization Expenses 6,945 7,375
Refundable Deposits 2,600 2,600
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TOTAL OTHER ASSETS 923,164 938,111
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TOTAL ASSETS $ 1,442,950 $ 1,709,510
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current Portion of Long Term Debt $ 5,000 $ 5,000
Accounts Payable and Accrued Expenses 572,019 693,564
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TOTAL CURRENT LIABILITIES 577,019 698,564
LONG TERM DEBT
Long Term Debt-Related Party 294,614 625,730
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TOTAL LONG TERM DEBT 294,614 625,730
STOCKHOLDERS' EQUITY Common Stock, par value $.001;
25,000,000 Authorized; 12,610,282
and 12,400,000 shares issued and
outstanding 12,610 12,400
Paid In Capital 1,476,490 955,000
Retained Earnings ( deficit ) (917,783) (582,184)
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TOTAL STOCKHOLDERS' EQUITY 571,317 385,216
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,442,950 $ 1,709,510
================= ==============
</TABLE>SEE NOTES TO FINANCIAL STATEMENTS
2
48<PAGE>
NOVA PHARMACEUTICAL INC
( A DEVELOPMENT STAGE COMPANY )
STATEMENTS OF INCOME
Three Months Ended March 31<TABLE><CAPTION>
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1999 1998
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<S> <C> <C>
Revenues $ 461,137 $ 295,927
Cost of Sales
Beginning Inventory 66,751 -
Direct Labor 10,932 4,742
Purchases 119,578 151,524
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Total Available 197,261 156,266
Less Ending Inventory (53,072) (2,880)
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Total Cost of Sales 144,189 153,386
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Gross Profit 316,948 142,541
Operating Expenses
Sales and Marketing 401,688 121,034
General and Administrative 250,859 92,480
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Total Operating Expenses 652,547 213,514
Loss Before Provision for
Income Taxes (335,599) (70,973)
Provision for Income Taxes - -
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Net Loss (335,599) (70,973)
Deficit, Beginning of year (582,184) -
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Accumulated Deficit, End of Year $ (917,783) $ (70,973)
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Net Loss per Share $ (0.07) $ (0.01)
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