AKR.L Regulatory News (AKR)

AKERS BIOSCIENCES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

September 30, 2013 and December 31, 2012

 2013

 2012

 (unaudited)

 (audited)

ASSETS

 Current Assets

 Cash and Cash Equivalents

 $ 681,237

 $ 633,022

 Trade Receivables (net)

73,333

101,213

 Trade Receivables - Related Party

1,041,388

10,013

 Other Receivables

26,413

4,497

 Notes Receivable - Related Party

-

225,000

 License Fee Receivable - Related Party

-

450,000

 Inventories (net)

1,085,032

987,853

 Other Assets

113,176

67,898

 Total Current Assets

3,020,579

2,479,496

 Non-Current Assets

 Property, plant and equipment, net

267,871

240,014

 Intangible assets, net

2,499,279

2,693,209

 Other Assets

4,282

4,572

 Total Non-Current Assets

2,771,432

2,937,795

Total Assets

 $ 5,792,011

 $ 5,417,291

LIABILITIES

 Current Liabilities

Trade and Other Payables

 $ 861,673

 $ 1,082,504

Other Payables - Related Parties

49,308

58,542

Deferred Revenue - Related Party

722,222

972,222

 Total Current Liabilities

1,633,203

2,113,268

Total Liabilities

1,633,203

2,113,268

EQUITY

 Convertible Preferred Stock, No par value,

50,000,000 shares authorized, 10,000,000 shares

issued and outstanding as of September 30, 2013

and December 31, 2012.

225,000

225,000

 Common Stock, No par value, 500,000,000 shares

authorized, 1,791,436 and 1,278,616 issued

and outstanding as of September 30, 2013 and

December 31, 2012

84,873,376

83,273,376

 Accumulated Deficit

(80,939,568)

(80,194,353)

Total Equity

4,158,808

3,304,023

Total Equity and Liabilities

 $ 5,792,011

 $ 5,417,291

Condensed Consolidated Statements of Operations

(unaudited)

Nine Months Ended

September 30

2013

2012

Revenues:

 Product Revenue

 $ 972,880

 $ 1,155,330

 Product Revenue - Related party

1,551,340

2,660

 License Revenue

200,000

-

 License Revenue - Related party

250,000

-

Total Revenue

2,974,220

1,157,990

Cost of Sales:

 Product Cost of Sales

(1,503,303)

(691,628)

 Gross Profit

1,470,917

466,362

Administrative Expenses

752,126

633,157

Administrative Expenses - Related parties

294,300

400,153

Sales and Marketing Expenses

536,631

498,531

Research and Development Expenses

755,981

689,481

Amortization of Non-Current Assets

193,929

181,652

Loss from Operations

(1,062,050)

(1,936,612)

Other Income/Expenses

 Gain on sale of equity investment - Related party

(99,710)

-

 Foreign Currency Transaction (Income)/Expense

(723)

(7,345)

 Gain from demutualization of insurance carrier

(91,286)

-

 Other Income

(125,116)

(32,223)

Total Other Income

(316,835)

(39,568)

 Loss Before Income Taxes

(745,215)

(1,897,044)

 Income Tax Benefit/(Expense)

-

-

 Net Loss

 $ (745,215)

 $ (1,897,044)

 Basic & diluted loss per common share

 $ (0.50)

 $ (1.73)

 Weighted average basic & diluted common

shares outstanding

1,481,490

1,097,098

Condensed Consolidated Statement of Changes in Stockholder's Equity

Nine months ended September 30, 2013

Convertible

Preferred

Common

Accumulated

Total

Stock

Stock

Deficit

Equity

Balance at December 31, 2012 (audited)

 $ 225,000

 $ 83,273,376

 $ (80,194,353)

 $ 3,304,023

 Net loss for the period

-

-

(745,215)

(745,215)

 Issuance of shares

-

1,600,000

-

1,600,000

Balance at September 30, 2013 (unaudited)

 $ 225,000

 $ 84,873,376

 $ (80,939,568)

 $ 4,158,808

Condensed Consolidated Cash Flow Statements

Nine months ended September 30, 2013 and 2012

(unaudited)

 2013

 2012

Cash flows from operating activities

 Net loss for the period

 $ (745,215)

 $ (1,897,044)

 Adjustments to reconcile net loss to net cash used by

operating activities

 Provisions for bad debts

-

(241)

 Write-off of note receivable

-

148,900

 Reversal of old trade payables

(91,905)

-

 Gain on sale of equity investment

(99,710)

-

 Gain from demutualization of insurer

(91,286)

-

 Depreciation and amortization of non-current assets

265,799

266,481

Changes in assets and liabilities

 Decrease in trade receivables

27,880

106,290

 Increase in trade receivables - related party

(1,031,375)

(2,660)

 (Increase)/decrease in other receivables

(21,916)

260,936

 Decrease in license fees receivable - related party

450,000

-

 (Increase)/decrease in inventories

(97,179)

(260,120)

 (Increase)/decrease in other assets

(45,278)

26,176

 Increase/(decrease) in trade and other payables

(22,002)

227,562

 Decrease in other payables - related party

(9,234)

-

 Increase/(decrease) in legal settlement liabilities

(106,924)

55,867

 Decrease in deferred revenue - related party

(250,000)

-

Net cash used in operating activities

(1,868,345)

(1,067,853)

Cash flows from investing activities

 Purchases of property, plant and equipment

(99,726)

(7,325)

 Proceeds from sale of equity investment

100,000

-

 Proceeds from demutualization of insurance carrier

91,286

-

Net cash provided from/(used in) investing activities

91,560

(7,325)

Cash flows from financing activities

 Proceeds from note receivable - related party for Series A Convertible

Preferred Stock

225,000

-

 Proceeds from issuance of common shares

1,600,000

211,068

Net cash provided from financing activities

1,825,000

211,068

 Net increase/(decrease) in cash and cash equivalents

48,215

(864,110)

 Cash and cash equivalents at beginning of year

633,022

1,192,805

 Cash and cash equivalents at end of period

$681,237

 $ 328,695

Supplemental Disclosure of Cash Flow Information

 Non-cash financing activities

Issuance of common shares for short-term receivable - related party

$

 $ 240,000

Issuance of convertible preferred stock for note receivable - related party

$

 $ 225,000