OccuLogix, Inc.
NASDAQ : OCCX
TSX : OC

OccuLogix, Inc.

March 17, 2008 08:01 ET

OccuLogix Reports 2007 Financial Results

MISSISSAUGA, ONTARIO--(Marketwire - March 17, 2008) - OccuLogix, Inc. (NASDAQ:OCCX)(TSX:OC) today reported its consolidated financial results for the year ended December 31, 2007. All dollar amounts are expressed in U.S. currency, and results are reported in accordance with United States generally accepted accounting principles (U.S. GAAP).

On November 1, 2007, the Company announced the indefinite suspension of its RHEO™ System clinical development program in Dry Age-Related Macular Degeneration, and the Company has since determined that there is no reasonable prospect that the program will be relaunched in the foreseeable future. On December 19, 2007, the Company sold its SOLX, Inc. subsidiary. As a result, the Company's glaucoma business has been reclassified as discontinued operations.

For the year ended December 31, 2007, OccuLogix' net revenues from continuing operations were $94,500 and the Company's revenues from discontinued operations were $244,150. The loss from continuing operations, which included aggregate non-cash charges related to the impairment of RHEO intangibles of $20.9 million, partially offset by a non-cash gain of $5.7 million on the recovery of income taxes, was $32.7 million, or $0.58 per share. OccuLogix' loss from discontinued operations, which included aggregate non-cash charges related to the impairment of SOLX goodwill and intangibles of $36.7 million, partially offset by a non-cash $9.3 million gain on the recovery of income taxes, was $35.4 million, or $0.62 per share. Including both continuing and discontinued operations, OccuLogix' net loss for the year was $68.1 million, or $1.20 per share.

As of December 31, 2007, OccuLogix had cash and cash equivalents of $2.2 million. The Company noted that this amount does not include any of the net proceeds from the $3.0 million bridge loan that it announced on February 19, 2008.

As first announced on October 9, 2007, OccuLogix continues to explore the full range of strategic alternatives available to it to maximize shareholder value. These alternatives may include, but are not limited to, the raising of capital through the sale of securities, one or more strategic alliances and the combination, sale or merger of all or part of the Company. OccuLogix has stated that there can be no assurance that the exploration of strategic alternatives will result in a transaction. The Company does not intend to disclose developments with respect to the exploration of strategic alternatives unless and until its Board of Directors has approved a specific transaction.

About OccuLogix, Inc.

OccuLogix is a healthcare company focused on ophthalmic devices for the diagnosis and treatment of age-related eye diseases. Visit us on the internet at www.occulogix.com.

Forward-Looking Statements

This press release may contain forward-looking statements. These statements relate to future events and are subject to risks, uncertainties and assumptions about the Company. These statements are only predictions based on our current expectations and projections about future events. You should not place undue reliance on these statements. Actual events or results may differ materially. Many factors may cause our actual results to differ materially from any forward-looking statement, including the factors detailed in our filings with the Securities and Exchange Commission and Canadian securities regulatory authorities, including but not limited to our Forms 10-K and 10-Q. We do not undertake to update any forward-looking statements.



OccuLogix, Inc.
CONSOLIDATED BALANCE SHEETS
(expressed in U.S. dollars)
As of December 31,
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2007 2006
(restated)
$ $
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ASSETS
Current
Cash and cash equivalents 2,235,832 5,705,235
Short-term investments - 9,785,000
Amounts receivable, net of bad debt reserves
of $172,992 in 2007
and nil in 2006 374,815 165,409
Inventory, net of provision for inventory
obsolescence of $7,295,545
in 2007 and $5,101,394 in 2006 - 2,344,638
Prepaid expenses 481,121 548,883
Other current assets 10,442 10,442
Current assets relating to discontinued
operation - 618,154
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Total current assets 3,102,210 19,177,761
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Fixed assets, net 122,286 574,310
Patents and trademarks, net 139,437 234,841
Investments 863,750 -
Intangible assets, net 5,770,677 26,876,732
Goodwill - -
Other assets relating to discontinued
operation - 43,540,051
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9,998,360 90,403,695
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable 1,192,807 162,705
Accrued liabilities 2,873,451 1,837,158
Due to stockholders 32,814 152,406
Current portion of other long-term liability - 3,000,000
Current liabilities relating to discontinued
operation - 486,466
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Total current liabilities 4,099,072 5,638,735
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Deferred tax liability, net - 7,851,667
Other long-term liability - 3,420,609
Other liabilities relating to discontinued
operation - 11,087,750
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Total liabilities 4,099,072 27,998,761
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Commitments and contingencies
Minority interest - 1,184,844
Stockholders' equity
Capital stock
Common stock 57,306 50,627
Par value of $0.001 per share;
Authorized: 75,000,000; Issued and
outstanding:
December 31, 2007 - 57,306,145;
December 31, 2006 - 50,626,562
Additional paid-in capital 362,402,899 354,191,066
Accumulated deficit (356,560,917) (293,021,603)
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Total stockholders' equity 5,899,288 61,220,090
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9,998,360 90,403,695
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OccuLogix, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS
(expressed in U.S. dollars except number of shares)

Years ended December 31,
----------------------------------------
2007 2006 2005
(restated (i))
$ $ $
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Revenue
Sales to related parties - - 81,593
Sales to unrelated parties 91,500 174,259 1,758,696
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Total revenue 91,500 174,259 1,840,289
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Cost of goods sold
Cost of goods sold to related
parties - - 43,236
Cost of goods sold to
unrelated parties 2,298,103 3,428,951 3,250,866
Royalty costs 100,000 100,000 100,000
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Total cost of goods sold 2,398,103 3,528,951 3,394,102
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(2,306,603) (3,354,692) (1,553,813)
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Operating expenses
General and administrative 7,373,726 8,407,501 8,670,394
Clinical and regulatory 8,675,552 4,921,771 5,167,549
Sales and marketing 1,413,459 1,625,188 2,165,337
Impairment of goodwill - 65,945,686 147,451,758
Impairment of intangible asset 20,923,028 - -
Restructuring charges 1,312,721 819,642 -
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39,698,486 81,719,788 163,455,038
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Loss from continuing
operations 42,005,089 (85,074,480) (165,008,851)
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Other income (expenses)
Interest income 609,933 1,370,208 1,593,366
Changes in fair value of
warrant obligation 1,882,497 - -
Impairment of investments (1,036,250) - -
Interest expense (17,228) (14,896) -
Other 18,010 30,935 (57,025)
Minority interest 2,182,843 157,624 -
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3,639,805 1,543,871 1,536,341
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Loss from continuing
operations before income taxes (38,365,284) (83,530,609) (163,472,510)
Recovery of income taxes 5,654,868 2,888,490 642,529
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Loss from continuing
operations (32,710,416) (80,642,119) (162,829,981)
Loss from discontinued
operation (35,428,898) (1,542,384) -
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Net loss for the year (68,139,314) (82,184,503) (162,829,981)
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Weighted average number of
shares outstanding
basic and diluted 56,628,186 44,979,692 41,931,240
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Loss from continuing
operations per share - basic
and diluted $(0.58) $(1.79) $(3.88)
Loss from discontinued
operation per share - basic
and diluted (0.62) (0.04) -
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Net loss per share - basic and
diluted $(1.20) $(1.83) $(3.88)
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(i)Note: Prior year balances have been restated to reflect the results
of discontinued operations

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