Bio-Extraction Inc.

Bio-Extraction Inc.

August 30, 2007 16:15 ET

BioExx Announces Second Quarter Results

TORONTO, ONTARIO--(Marketwire - Aug. 30, 2007) - Bio-Extraction Inc. (TSX VENTURE:BXI) (, announced today its results for the fiscal second quarter ended June 30, 2007. Bio-Extraction Inc. (the "Corporation"), formerly Lifesciences Capital Corp., was a CPC under TSX Venture Exchange Policy 2.4 until the closing of its Qualifying Transaction with Bio-Extraction Ltd. on May 9, 2007. The Qualifying Transaction constituted a Reverse Take-Over (the "RTO") of the Corporation by Bio-Extraction Ltd. under the policies of the Exchange. The consolidated financial statements for the period ended June 30, 2007 therefore reflect the assets, liabilities and results of operations of Bio-Extraction Ltd., the legal subsidiary, prior to the reverse takeover and the consolidated assets, liabilities and results of operations of the Corporation and Bio-Extraction Ltd. subsequent to the reverse takeover. The consolidated financial statements are issued under the name of the legal parent (Bio-Extraction Inc.), but are deemed to be a continuation of the legal subsidiary (Bio-Extraction Ltd., or "BioExx").

Results of Operations


During the quarter, the Corporation earned $7,626 of interest revenue, and $9,503 for the year-to-date, from interest-bearing marketable securities. The Corporation earned no operating revenues during the quarter or the six month year to date period.


The Corporation incurred administrative and general expenses during the quarter of $526,561, and $866,387 for the year-to-date (including $185,734 and $249,820 respectively, relating to stock-based compensation), compared to $115,220 and $318,930 for the comparable prior year periods. The significant increase in expenditures reflects the ramp up of activities in all areas of operations, as the Corporation intensifies efforts in technology development, market engagement, and public company administration. In the comparable prior year periods, the Corporation's operations were much less developed and were undertaken on a significantly smaller scale.

The Corporation has allocated management and capital resources during the quarter and year-to-date towards the completion of the RTO, and since that time to the integration of BioExx with the Corporation, and to related public company administration. Key business resource allocations during the quarter included advanced testing of the BioExx oil extraction technology for application in the oilseed (and biofuels) market, testing of the efficacy of this technology in the retention of the protein value embedded within the initial biomass, and process engineering to facilitate commercial-scale implementation of the technology. In tandem with the technology work during the quarter, the Corporation has been advancing commercial activities relative to securing biomass supply and the identification of end markets and customers for extracted oils and proteins.

Net Loss

The Net Loss for the quarter was $513,584 and for the year-to-date was $851,533, compared to $114,693 and $318,403 for the 2006 comparable prior year periods. This increase in net loss is a result of the increase in Administrative and General Expenses as discussed above. On a per share basis then, the Net Loss is $0.01 for the quarter and $0.02 for the year-to-date, versus $0.00 and $0.01 in the comparable prior year periods.

Working Capital and Liquidity

As at June 30, 2007, current assets were $1,593,291, including cash and short-term investments of $1,117,835. Against accounts payable and accrued liabilities of $218,171, this results in net working capital of $1,375,120. This compares to current assets of $835,396 and net working capital of $502,171 at December 31, 2006. The increase in working capital is a result of the completion of the RTO and the cash received thereby.

More Information

Complete financials and Management Discussion & Analysis are available at

About Bio-Extraction Inc.

BioExx is involved in the development and commercialization of extraction technology, which it intends to use to extract various active ingredients from organic and inorganic materials, for its own account and as a service to industrial customers. Global in scope, the BioExx target markets include extractions in food oils and fixed oils (including bio-fuels), nutraceutical, pharmaceutical, and industrial cleansing (eg. specialty steels). Versus traditional technologies, the patented BioExx technology can provide the benefit of lower extraction costs, higher quality extracted materials, and material incremental revenue opportunities as its low-temperature extractions can substantially retain the economic value of inherent proteins and other sensitive compounds - with all this being completed in an environmentally responsible manner.

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

The TSX Venture Exchange has not reviewed this press release and neither approved nor disapproved the information contained in this press release.

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