From Auditors ReportLads...from the Auditors report.
Going Concern Uncertainty
To date, the Company has financed its operations primarily through share issuances, investment tax credits, interest
income, and collaborative co-development agreements. The Company has incurred significant operating losses and
cash outflows from operations. As at April 30, 2011, the anticipated level of cash flows from operating activities for
the next twelve months is not assured to be sufficient to sustain operations. The ability of the Company to continue as
a going concern is dependent upon raising additional financing through borrowings or equity financing ultimately
achieving future profitable operations and the ability of the Company to successfully defend against patent
infringement claims [see Note 7(c) for details]. The outcome of these matters is dependent on a number of items
outside the Company’s control. As a result, there is significant uncertainty as to whether the Company will have the
ability to continue as a going concern. These financial statements do not include any adjustment that might result from
these uncertainties. These adjustments may be material.