Commitments Test Entity - Second Quarter Report Document date:...

Commitments Test Entity - Second Quarter Report

Document date: Fri 31 Jan 2003 Published: Mon 03 Feb 2003 08:32:53
Document No: 231851 Document part: A
Market Flag: Y
Classification: Commitments Test Entity - Second Quarter Report
BIOPROSPECT LIMITED 2003-01-31 ASX-SIGNAL-G

HOMEX - Perth

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QUARTERLY REPORT FOR THE PERIOD ENDED 31 DECEMBER 2002

The Company's lead product Qcide has now been subjected to an
extensive field trial program managed by Nufarm Limited across 4
continents. The results are now being reviewed by BioProspect's
scientific team with a view to determining the next move to
commercialisation of the product. This review is expected to be
completed within seven days, and the Company anticipates providing to
the market a detailed report on the progress of Qcide incorporating
the Nufarm results and an update of other work being performed by
BioProspect and other Qcide collaborators.

During the quarter, BioProspect announced the signing of a
biodiversity access and research collaboration agreement with Diversa
Corporation that gives Diversa the right to discover genes from
collections of Australian biological material supplied by
BioProspect. BioProspect will receive upfront licence fees for the
supply of material to Diversa, and royalty payments on commercialised
products.

BioProspect has recently announced the signing of a collaboration
with Apath LLC which will seek to discover novel compounds that will
focus on uncovering a cure for Hepatitis C Virus (HCV) and other human
viral pathogens. The current worldwide market for HCV therapeutics
is approximately US$1.7 billion annually, and is expected to grow to
US$5 billion by 2010. BioProspect will receive licence fees for the
supply of extracts under the agreement, and further payments on
completion of key development milestones. BioProspect will also
receive royalty payments on any commercialised products developed
from its extracts.

BioProspect has received several new enquiries in regard to the
Natural Plant Extract Library following the release of the above
announcements and anticipate a significant increase in commercial
activity in this area during the first half of this year.

During the quarter, BioProspect raised a total of $865,008 through a
share purchase plan. The Board was pleased with the result and views
this support from the shareholders as an endorsement in the potential
of Qcide and the Company's other business activities.

The Company is currently negotiating with several financial
institutions to secure further funding to support the Company's
business plan. The Board anticipates bringing this activity to a
conclusion by the end of February.

BioProspect continues to seek opportunities that will bring a
sustainable cashflow to the business. The Board had identified a
number of opportunities that may create significant synergies with
Qcide and the Company's drug discovery program. Further information
regarding these activities will be released when negotiations are
concluded.


S Snell
CHIEF EXECUTIVE OFFICER


APPENDIX 4C
QUARTERLY REPORT FOR ENTITIES
ON BASIS OF COMMITMENTS

Name of entity
Bioprospect Limited

ABN Quarter ended ("current quarter")
58 008 130 336 31/12/2002

CONSOLIDATED STATEMENT OF CASH FLOWS

Cash flows related to Current Year to date
operating activities Quarter (6 months)
AUD'000 AUD'000

1.1 Receipts from customers 2 45
1.2 Payments for
(a) staff costs (240) (563)
(b) advertising & marketing (5) (35)
(c) research & development (195) (472)
(d) leased assets - -
(e) other working capital (197) (571)
1.3 Dividends received - -
1.4 Interest and other items of
a similar nature received 6 10
1.5 Interest and other costs of
finance paid (1) (4)
1.6 Income taxes paid - -
1.7 Other (provide details if material) 15 35

1.8 Net Operating Cash Flows (615) (1,555)

Cash flows related to investing activities
1.9 Payment for acquisition of:
(a) businesses (item 5) - -
(b) equity investments - -
(c) intellectual property - -
(d) physical non-current assets (12) (12)
(e) other non-current assets - -
1.10 Proceeds from disposal of:
(a) businesses - -
(b) equity investments - -
(c) intellectual property - -
(d) physical non-current assets - 52
(e) other non-current assets - -
1.11 Loans to other entities - -
1.12 Loans repaid by other entities - -
1.13 Other (provide details if material) - -

Net investing cash flows (12) 40

1.14 Total operating and
investing cash flows (627) (1,515)

Cash flows related to financing activities
1.15 Proceeds from issues of
shares, options, etc. 832 1,070
1.16 Proceeds from sale of
forfeited shares - -
1.17 Proceeds from borrowings - -
1.18 Repayment of borrowings - -
1.19 Dividends paid - -
1.20 Other (provide details if material) - -

Net financing cash flows 832 1,070

Net increase (decrease) in cash held 205 (445)

1.21 Cash at beginning of quarter/
year to date 277 927

1.22 Exchange rate adjustments to item 1.20 - -

1.23 Cash at end of quarter 482 482


PAYMENTS TO DIRECTORS OF THE ENTITY AND ASSOCIATES OF THE DIRECTORS
PAYMENTS TO RELATED ENTITIES AND ASSOCIATES OF THE RELATED ENTITIES

Current Quarter
AUD'000

1.24 Aggregate amount of payments to
the parties included in item 1.2 195

1.25 Aggregate amount of loans to the
parties included in item 1.11 -

1.26 Explanation necessary for an understanding
of the transactions

The amounts paid in item 1.24 relate to payments for executive
services, non-executive services, corporate advisory services, company
secretarial services and administrative services provided by directors
or associated parties.

NON-CASH FINANCING AND INVESTING ACTIVITIES

2.1 Details of financing and investing transactions which have had a
material effect on consolidated assets and liabilities but did
not involve cash flows

-

2.2 Details of outlays made by other entities to establish or
increase their share in businesses in which the reporting entity
has an interest

-


FINANCING FACILITIES AVAILABLE
Add notes as necessary for an understanding of the position.
(See AASB 1026 paragraph 12.2)

Amount Amount
available used
AUD'000 AUD'000

3.1 Loan facilities - -
3.2 Credit standby arrangements - -



RECONCILIATION OF CASH

Reconciliation of cash at the end Current Previous
of the quarter (as shown in the quarter quarter
consolidated statement of cash flows) AUD'000 AUD'000
to the related items in the accounts
is as follows.

4.1 Cash on hand and at bank 482 277
4.2 Deposits at call - -
4.3 Bank overdraft - -
4.4 Other (provide details) - -

Total: cash at end of quarter (item 1.22) 482 277




ACQUISITIONS AND DISPOSALS OF BUSINESS ENTITIES

Acquisitions Disposals
(item 1.9(a)) (Item 1.10(a))

5.1 Name of entity - -

5.2 Place of incorporation
or registration - -

5.3 Consideration for
acquisition or disposal - -

5.4 Total net assets - -

5.5 Nature of business - -



COMPLIANCE STATEMENT

1. This statement has been prepared under accounting policies which
comply with accounting standards as defined in the Corporations
Act (except to the extent that information is not required because
of note 2) or other standards acceptable to ASX.

2. This statement does give a true and fair view
of the matters disclosed.

S Snell
CHIEF EXECUTIVE OFFICER Date: 31/01/2003

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