Jiangbo Pharmaceuticals Announces Third Quarter Fiscal Year 2011 Results

LAIYANG, China, May 24, 2011 /PRNewswire-Asia-FirstCall/ -- Jiangbo Pharmaceuticals, Inc. (Nasdaq: JGBO) ("Jiangbo" or the "Company"), a pharmaceutical company with its principal operations in the People's Republic of China, today announced its third quarter fiscal year 2011 financial results for the three and nine month periods ended March 31, 2011.

Third Quarter Fiscal Year 2011 Highlights

• Revenue decreased 29.2% to $18.1 million from $25.6 million in the corresponding quarter ended March 31, 2010
• Gross profit declined 35.3% to $12.0 million from $18.6 million in the corresponding quarter ended March 31, 2010
• Operating income decreased 56.5% to $6.0 million from $13.7 million in the corresponding quarter ended March 31, 2010
• Net income was $5.1 million, or $0.38 per basic share, for the quarter ended March 31, 2011, compared to $15.2 million, or $1.33 per basic share, for the quarter ended March 31, 2010
• Excluding non-cash gains related to the change in fair value of derivative liabilities of $2.8 million, amortization of debt discount and debt issuance costs related to convertible debentures of $2.4 million, and unrealized loss on investments of $49,264, non-GAAP adjusted net income for diluted EPS was $0.8 million, or $0.05 per fully diluted share, for the three months ended March 31, 2011, compared to non-GAAP adjusted net loss for diluted EPS of $11.3 million, or a loss of $0.74 per fully diluted share, for the quarter ended March 31, 2010.
• On January 4, 2011, the Company's Hongrui factory was awarded with the Good Manufacturing Practices Certificate for Pharmaceutical Products ("GMP Certificate") by China's State Food and Drug Administration ("SFDA"). The GMP Certificate is valid until the end of 2015.
• The Company appointed Marcum Bernstein & Pinchuk LLP as its new independent registered public accountants, effective March 30, 2011, replacing Frazer Frost, LLP, to begin providing services for the quarter ended March 31, 2011.

"Our fiscal third quarter 2011 revenue declined 29.2% on difficult comparisons to the same period last year, which benefitted from the release of pent-up demand caused by six weeks of downtime in late 2009 to complete Good Manufacture Practices recertification procedures at our main facility," said Jiangbo's CEO, Mr. Linxian Jin. "While several of our top products continued to experience relatively weak sales during the quarter, we are actively evaluating strategic options to enhance the Company's growth rate and build shareholder value. This quarter we continued to generate robust cash flow from operations and ended the period with over $146 million in cash and cash equivalents, some of which we plan to deploy on strategic acquisitions, such as our previously announced planned purchase of Shandong Xinkangqi Medical Company, a regional wholesale drug distributor in Shandong Province," continued Mr.Jin.

Third Quarter Fiscal Year 2011 Results

Total revenue for the three months ended March 31, 2011 decreased 29.2% to $18.1 million from $25.6 million in the comparable quarter of 2010, primarily reflecting lower sales of Clarithromycin Sustained Release Tablets, Itopride Hydrochloride Granules, Radix Isatidis Dispersible Tablets, and Baobaole Chewable Tablets, partially offset by incremental sales of Felodipine Sustained Release Tablets, which were launched in September 2010, and higher sales of Ciproflocacin Hydrochloride Tablets. During the third quarter of fiscal year 2011, the Company resumed production at its Hongrui factory, resulting in modest revenue contribution from the sale of Laiyang Pear Cough Syrup and Cold and Cough Granules.

The Company's total revenue in the third quarter of the prior fiscal year benefitted from the release of pent-up demand upon resumption of production at the Company's main facility after a six week shutdown in the second quarter of fiscal year 2010 to complete the Good Manufacture Practice ("GMP") recertification procedure.

For the three months ended March 31, 2011, Clarithromycin Sustained Release Tablets, Itopride Hydrochloride Granules, Radix Isatidis Dispersible Tablets, and Baobaole Chewable Tablets, accounted for approximately 43.7%, 24.4%, 14.9%, and 13.9% of the Company's total revenue, respectively.

Gross profit in the third quarter of fiscal year 2011 was $12.0 million, a decrease of 35.3% from $18.6 million in the prior year's corresponding period. Gross margin decreased to 66.5% from 72.7% in the prior year quarter, primarily due to an increase in raw material prices, particularly related to the Company's Clarithromycin Sustained Release Tablets and Radix Isatidis Dispersible Tablets and also due to a greater portion of sales from products with lower profit margin in the Western Pharmaceutical Medicines product category.

Selling, general and administrative expenses totaled $5.8 million for the three months ended March 31, 2011, up 53.9% from $3.8 million in the three months ended March 31, 2010. Advertising, marketing and promotional expenses for the third quarter of fiscal 2011 decreased to $15,000 from $1.1 million in the year ago period, primarily because the Company eliminated advertising activities at the corporate level and implemented a strategy that significantly increased commission payout percentages to its sales representatives. Depreciation and amortization increased to $1.5 million from $492,000 in the three months ended March 31, 2010, mainly attributable to the amortization of land use rights for two parcels of land that were purchased in the prior fiscal year. Salaries, wages, commissions and related benefits increased 89.8% year-over-year to $3.7 million, primarily due to accrued compensation to directors and the Company's decision to increase sales commission payouts to its sales representatives.

Research and development expenses totaled $0.2 million for the three months ended March 31, 2011, compared with $1.1 million for the three months ended March 31, 2010. The significant year-over-year decrease in research and development expense reflects the expiration, in September 2010, of the Company's R&D cooperative agreement with Shandong University.

Income from operations during the third quarter of fiscal year 2011 was $6.0 million, a 56.5% decrease from $13.7 million during the three months ended March 31, 2010.

Other income was $0.6 million, primarily reflecting non-cash gains related to the change in fair value of derivative liabilities of $2.8 million, partially offset by interest expense of $2.5 million.

Net income for the three months ended March 31, 2011 was $5.1 million, compared to $15.2 million in the year ago quarter. Basic earnings per share were $0.38, compared with $1.33 per basic share in the year ago period. In the third quarter of fiscal 2011, the Company recorded diluted earnings per share of $0.22, compared to $0.02 in the same quarter last year.

Excluding non-cash gains related to the change in fair value of derivative liabilities of $2.8 million, amortization of debt discount and debt issuance costs related to convertible debentures of $2.4 million, and unrealized loss on investments of $49,264, non-GAAP adjusted net income for diluted EPS was $0.8 million, or $0.05 per fully diluted share, for the three months ended March 31, 2011, compared to non-GAAP adjusted net loss for diluted EPS of $11.3 million, or a loss of $0.74 per fully diluted share, for the quarter ended March 31, 2010.

(*) See the reconciliation table at the end of this press release for a reconciliation of net income and EPS to non-GAAP adjusted net income and EPS.

Nine Months Fiscal Year 2011 Results

Total revenue for the nine month period ended March 31, 2011, increased by 1.6% to $69.2 million, compared to $68.1 million for the nine month period ended March 31, 2010. Gross profit decreased 2.7% to $48.9 million for the nine month period ended March 31, 2011 as compared to $50.2 million for the nine month period ended March 31, 2010. Gross profit margin was 70.6% for the first nine months of fiscal year 2011, versus 73.7% for the corresponding prior year period. Operating income was $33.5 million, unchanged compared to operating income in the comparable period of last year. Net income during the nine months ended March 31, 2011, was $26.8 million, or $2.09 per basic share, compared to $22.7 million, or $2.07 per basic share, for the corresponding period in 2010. Diluted earnings per share were $1.76 per share, compared to $0.57 per diluted share in the year ago period. Excluding non-cash gains related to the change in fair value of derivative liabilities of $15.1 million, amortization of debt discount and debt issuance costs related to convertible debentures of $12.2 million, and unrealized loss on investments of $68,210, non-GAAP adjusted net income for diluted EPS was $11.7 million, or $0.77 per fully diluted share, for the nine months ended March 31, 2011, compared to non-GAAP adjusted net loss for diluted EPS of $4.9 million, or a loss of $0.32 per fully diluted share, for the nine months ended March 31, 2010.

Financial Condition

As of March 31, 2011, the Company had $146.9 million in cash and cash equivalents as compared to $108.6 million at the end of fiscal 2010. Working capital was $139.6 million as of March 31, 2011 as compared to $88.5 million at the end of fiscal 2010. Shareholder's equity totaled $184.7 million, as compared to $134.5 million at the end of fiscal 2010. The Company generated $36.0 million in cash flow from operating activities during the first nine months of fiscal 2011.

Business Outlook and Guidance

Several of the Company's major products, including Clarithromycin Sustained Release Tablets, Itopride Hydrochloride Granules and Baobaole Chewable Tablets, have entered into mature stages of their product lifecycles. Management expects future sales of Clarithromycin Sustained Release Tablets to remain relatively flat compared to current levels and future sales of Itopride Hydrochloride Granules and Baobaole Chewable Tablets to moderately decline compared to current levels. Management expects a continued increase in sales of Felodipine Sustained Release Tablets and incremental revenue from the re-launch of several traditional Chinese medicines at the Company's Hongrui facility. Given management's current business outlook, the Company reaffirms its guidance of revenue between $94 million and $96 million for fiscal year 2011.

Subsequent Events

In April 2011, the Company through Laiyang Jiangbo Pharmaceutical Co., Ltd., a limited liability companyorganized under the laws of PRC and controlled by the Company through contractual arrangements, entered into a letter of intent with Shandong Xinkangqi Medical Company ("Xinkangqi"), a regional wholesale drug distributor in Shandong Province, pursuant to which Laiyang Jiangbo plans to acquire 100% of the outstanding equity of Xinkangqi. The Company plans to hire Marcum Bernstein & Pinchuk LLP, its current independent registered public accountants, to conduct due diligence on Xinkangqi beginning in late May 2011.

Risk Disclosure

The Company became delinquent in the payment of principal on its November 2007 Debenture on March 1, 2011. To date, we have remained unable to make these payments. We were required to repay the then outstanding aggregate principal amount of the November 2007 Debentures, together with all accrued interest and penalties. To date, no formal event of default notice has been presented by the sole holder of the November 2007 Debentures and we are currently in discussions with the sole holder of the November 2007 Debenture to resolve the delinquent situation. However, the sole holder of the November 2007 Debentures may deliver an event of default notice to us at any time. In the event that an event of default notice is delivered to us, a cross-default will occur with respect to our May 2008 Notes and the majority holder of the May 2008 Notes will have the right to deliver an acceleration notice with respect to the May 2008 Notes. In such an event, we may be forced to seek protection under the United States Bankruptcy Code. In addition, on May 30, 2011, we will be required to repay the then outstanding aggregate principal amount of the May 2008 Notes, together with all accrued interest. There can be no assurance that we will be able to make the repayments on time. In the event that we are unable to repay the May 2008 Notes, when due, the majority holder of the May 2008 Notes may deliver an acceleration notice to the Company with respect to the May 2008 Notes. In the event that an acceleration notice is delivered to us, we may be forced to seek protection under the United States Bankruptcy Code.

Conference Call

Jiangbo Pharmaceuticals, Inc. management will host a conference call at 8:30 a.m. Eastern Time on Wednesday, May 25, 2011 to discuss financial results for the third quarter fiscal 2011 ended March 31, 2011.

To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: [phone]. International callers should dial [phone]. The Conference ID for this call is 65647292.

If you are unable to participate on the live call, a replay will be available for 14 days starting on Wednesday, May 25, 2011 at 11:30 a.m. Eastern Time. To access the replay, dial [phone], international callers dial [phone]. The Conference ID is 65647292.

Use of Non-GAAP Adjusted Financial Information

This press release includes certain financial information, non-GAAP adjusted net income and non-GAAP adjusted fully diluted earnings per share, which are not presented in accordance with GAAP. Non-GAAP adjusted net income was derived by taking net income and adjusting it with non-cash gains or losses related to the change in fair value from derivative liabilities and the amortization of debt discount and debt issuance costs related to convertible debentures. The Company's management believes that these non-GAAP adjusted measures provide investors with a better understanding of the Company's historical results from its core business operations. To supplement the Company's condensed consolidated financial statements presented on a non-GAAP adjusted basis, the Company has provided non-GAAP adjusted financial information, which is non-GAAP adjusted net income and non-GAAP adjusted earnings per share, excluding the impact of these items in this press release. The non-GAAP adjusted information is not meant to be considered in isolation or as a substitute for GAAP financials. The non-GAAP adjusted financial information provided by the Company may also differ from non-GAAP adjusted information provided by other companies. A table at the end of this press release provides a reconciliation of the non-GAAP adjusted financial information to the nearest GAAP measure.

About Jiangbo Pharmaceuticals, Inc.

Jiangbo Pharmaceuticals, Inc. is engaged in the research, development, production, marketing and sales of pharmaceutical products in China. The Company's operations are located in Eastern China in an Economic Development Zone in Laiyang City, Shandong Province. Jiangbo produces both western and Chinese herbal-based medical drugs in tablet, capsule, granule, syrup and electuary (sticky syrup) form. For additional information, please visit the Company's website (www.jiangbopharma.com).

Safe Harbor Statement

Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the Company's actual results and financial position to differ materially from those included within the forward-looking statements. Forward-looking statements involve risks and uncertainties, including those relating to the Company's ability to introduce, manufacture and distribute new drugs. Actual results may differ materially from predicted results, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties include, among others, the Company's ability to obtain raw materials needed in manufacturing, the continuing employment of key employees, the failure risks inherent in testing any new drug, the possibility that regulatory approvals may be delayed or become unavailable, patent or licensing concerns that may include litigation, direct competition from other manufacturers and product obsolescence. More information about the potential factors that could affect the Company's business and financial results is included in the Company's filings, available via the United States Securities and Exchange Commission.

Contact:

Jiangbo Pharmaceuticals, Inc.	CCG Investor Relations
Mr. Jin Linxian, CEO	Mr. Crocker Coulson, President
Phone: [phone]	Phone: [phone]
E-mail:[e-mail]	E-mail: [e-mail]
http://www.jiangbopharma.com	http://www.ccgirasia.com

- Financial Statements Follow -

JIANGBO PHARMACEUTICALS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
		March 31,				June 30,
		2011				2010
		(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	146,886,471			$	108,616,735
Restricted cash			10,383,600				11,135,880
Investments			46,094				168,858
Accounts receivable, net of allowance for doubtful accounts of $737,268 and $1,343,421as of March 31, 2011 and June 30, 2010, respectively			20,759,766				33,195,201
Inventories			2,896,877				2,200,614
Other receivables			64,387				13,241
Other receivable - related parties			251,955				324,060
Advances to suppliers			209,841				260,688
Financing costs			46,541				435,634
Total current assets			181,545,532				156,350,911
PLANT AND EQUIPMENT, NET			13,469,481				13,284,312
OTHER ASSETS:
Long term prepayments			30,470				110,725
Intangible assets, net			31,597,140				32,594,326
Total other assets			31,627,610				32,705,051
Total assets		$	226,642,623			$	202,340,274
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable		$	4,302,424			$	4,113,219
Short term bank loans			-				2,209,500
Notes payable			10,383,600				11,135,880
Other payables			658,454				677,464
Other payables - related parties			526,540				255,595
Accrued liabilities			2,128,719				8,110,399
Taxes payable			2,863,943				6,259,271
Refundable security deposits due to distributors			3,970,200				3,829,800
Liabilities assumed from reorganization			307,142				524,614
Derivative liabilities			1,218,616				18,497,227
Convertible debt, net of discount $1,833,267 and $13,669,752 as of March 31, 2011and June 30, 2010, respectively			15,546,733				12,210,248
Total current liabilities			41,906,371				67,823,217
Total liabilities			41,906,371				67,823,217
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Convertible preferred stock Series A ($0.001 par value; 20,000,000 shares authorized, 0 shares issued and outstanding as of March 31, 2011 and June 30, 2010)			-				-
Common stock ($0.001 par value, 22,500,000 shares authorized, 13,692,179 and 11,701,802 shares issued and outstanding as of March 31, 2011 and June 30, 2010, respectively)			13,692				11,702
Additional paid-in capital			47,706,099				30,846,915
Capital contribution receivable			(11,000)				(11,000)
Retained earnings			119,559,930				92,797,859
Statutory reserves			3,253,878				3,253,878
Accumulated other comprehensive income			14,213,653				7,617,703
Total shareholders' equity			184,736,252				134,517,057
Total liabilities and shareholders' equity		$	226,642,623			$	202,340,274

JIANGBO PHARMACEUTICALS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME (UNAUDITED)
		For the Three Months Ended								For the Nine Months Ended
		March 31,								March 31,
		2011				2010				2011				2010
CONTINUIG OPERATIONS:
REVENUES		$	18,109,343			$	25,571,389			$	69,199,820			$	68,135,385
COST OF SALES			6,070,653				6,974,455				20,331,519				17,901,903
GROSS PROFIT			12,038,690				18,596,934				48,868,301				50,233,482
RESEARCH AND DEVELOPMENT EXPENSE			233,145				1,093,440				1,426,425				3,299,400
SELLING, GENERAL ANDADMINISTRATIVE EXPENSES			5,845,257				3,799,136				13,949,528				13,400,155
INCOME FROM OPERATIONS			5,960,288				13,704,358				33,492,348				33,533,927
OTHER INCOME(EXPENSE):
Change in fair value of derivative liabilities			2,754,749				11,624,079				15,078,239				13,490,071
Other income - related parties			83,672				80,652				247,748				241,956
Non-operating income(expense), net			338,540				(5,790)				392,443				(220,061)
Interest expense, net			(2,539,807)				(6,643,163)				(13,649,378)				(15,562,981)
Total other income (expense), net			637,154				5,055,778				2,069,052				(2,051,015)
INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES			6,597,442				18,760,136				35,561,400				31,482,912
PROVISION FOR INCOME TAXES			1,539,695				3,539,870				8,799,329				8,618,061
INCOME FROM CONTINUING OPERATIONS			5,057,747				15,220,266				26,762,071				22,864,851
DISCONTINUED OPERATIONS:
Loss from discontinued operations-net			-				36,000				-				200,769
NET INCOME			5,057,747				15,184,266				26,762,071				22,664,082
COMPREHENSIVE INCOME
Net income			5,057,747				15,184,266				26,762,071				22,664,082
Unrealized gainon available-for-sale securities			-				32,164				-				88,535
Foreign currency translation adjustment			1,177,397				509				6,595,950				197,393
COMPREHENSIVE INCOME		$	6,235,144			$	15,216,939			$	33,358,021			$	22,950,010
BASIC WEIGHTED AVERAGE NUMBER OF SHARES			13,486,711				11,419,991				12,818,593				10,965,346
BASIC EARNINGS PER SHARE		$	0.38			$	1.33			$	2.09			$	2.07
DILUTED WEIGHTED AVERAGE NUMBER OF SHARES			15,659,211				15,235,811				15,192,372				15,234,156
DILUTED EARNINGS PER SHARE		$	0.22			$	0.02			$	1.76			$	0.57

JIANGBO PHARMACEUTICALS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
		For the Nine Months Ended March 31,
		2011				2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	26,762,071			$	22,664,082
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation			628,964				615,565
Amortization of intangible assets			2,155,483				1,194,331
Amortization of debt issuance costs			389,093				670,984
Amortization of debt discount			11,836,485				11,409,936
Loss from discontinued operations-net			-				200,769
Gain from issuance of shares in lieu of cash interest payment			(396,152)				318,936
Interest expense payment of shares in lieu of cash			-				4,457
Bad debt (recovery) expense			(644,458)				446,257
Realized loss on sale of marketable securities			3,241				406,346
Unrealized (gain) loss on investments			68,210				(270,339)
Change in fair value of derivative liabilities			(14,961,390)				(13,490,071)
Stock-based compensation			124,951				155,104
Gain on legal settlement settled on shares			(91,495)				-
Changes in operating assets and liabilities
Accounts receivable			14,068,839				(8,813,521)
Inventories			(605,309)				(86,604)
Other receivables			(25,267)				154,654
Other receivables- related parties			82,583				(241,956)
Advances to suppliers			58,967				(273,373)
Long term prepayments			82,906				-
Accounts payable			43,147				(3,926,015)
Customer deposit			-				(1,026,480)
Other payables			125,055				725,041
Other payables - related parties			265,247				712,114
Accrued liabilities			(185,326				3,338,191
Liabilities assumed from reorganization			(217,472)				(95,384)
Taxes payable			(3,564,035)				(6,308,625)
Net cash provided by operating activities			36,004,338				8,484,399
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of marketable securities			51,313				531,750
Purchase of equipment and building improvements			(114,454)				(76,977)
Purchase of land use right			-				(16,975,633)
Net cash used in investing activities			(63,141)				(16,520,860)
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in restricted cash			1,141,140				(4,186,572)
Payments for bank loans			(2,252,250)				(2,199,600)
Proceeds from bank loans			-				2,199,600
Proceeds from notes payable			17,781,889				19,173,180
Principal payments on notes payable			(18,923,029)				(14,986,608)
Net cash used in financing activities			(2,252,250)				-
EFFECTS OF FOREIGN CURRENCY EXCHANGE RATE FLUCTUATION ON CASH AND CASH EQUIVALENTS			4,580,789				134,826
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			38,269,736				(7,901,635)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD			108,616,735				104,366,117
CASH AND CASH EQUIVALENTS, END OF PERIOD		$	146,886,471			$	96,464,482
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest		$	61,176			$	393,111
Cash paid for income taxes		$	11,808,802			$	2,631,495
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Common stock issued for stock based compensation		$	-			$	20,000
Common stock issued to offset related party payable		$	-			$	20,000
Common stock issued for interest payment		$	6,281,031			$	673,929
Common stock issued for convertible notes conversion		$	8,500,000			$	7,610,000
Common stock issued for legal settlement		$	150,975			$	-
Derivative liability reclassified to equity upon conversion		$	2,200,370			$	6,287,408
Transfer of investments to settle liabilities assumed from reorganization		$	-				1,133,807

JIANGBO PHARMACEUTICALS, INC. AND SUBSIDIARIES
(FORMERLY GENESIS PHARMACEUTICALS ENTERPRISES, INC.)
RECONCILIATION OF NON-GAAP NET INCOME
(Unaudited)
		For the Three Months Ended					For the Nine Months Ended
		March 31,					March 31,
		2011		2010			2011		2010
Net income for basic EPS - GAAP	$	5,057,747	$	15,184,266		$	26,762,071	$	22,664,082
Loss from discontinued operations		-		36,000			-		200,769
Unrealized loss (gain) on investments		49,264		(36,756)			68,210		(358,874)
Loss (gain) in change of fair value of derivative liabilities		(2,754,749)		(11,624,079)			(15,078,239)		(13,490,071)
Amortization of debt discount and issuance costs related to convertible debentures		2,377,406		4,060,332			12,193,461		12,080,922
Adjusted net income for basic EPS - non GAAP	$	4,729,668	$	7,619,763		$	23,945,503	$	21, 096,828
Net income (loss) for diluted EPS - GAAP		3,484,343		289,703			26,750,602		8,759,605
Loss from discontinued operations		-		36,000			-		200,769
Unrealized loss (gain) on investments		49,264		(36,756)			68,210		(358,874)
Loss (gain) in change of fair value of derivative liabilities		(2,754,749)		(11,624,079)			(15,078,239)		(13,490,071)
Adjusted net income (loss) for diluted EPS - non GAAP		778,858		(11,335,132)			11,740,573		(4,888,571)
Basic Weighted Average Number of Shares		13,486,711		11,419,991			12,818,593		10,965,346
Adjusted basic earnings per share - non GAAP	$	0.35	$	0.67		$	1.87	$	1.92
Diluted Weighted Average Number of Shares**		15,659,211		15,235,811			15,192,372		15,234,156
Adjusted diluted earnings per share - non GAAP	$	0.05	$	(0.74)		$	0.77	$	(0.32)
** Including outstanding options and warrants using treasury method of calculation plus the number of shares if converted from the convertible debt

SOURCE Jiangbo Pharmaceuticals, Inc.