8-K/A (2006-03-06) .......DNAG
Chew on this .......
PLEASE NOTE THE TERM ......
"Investment in Affiliates" .........
ELLIPSIS BIOTHERAPEUTICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2004
1. GOING CONCERN
These financial statements have been prepared on the basis of
accounting principles applicable to a going concern, which assumes that
Ellipsis Biotherapeutics Corporation will continue in operation for the
foreseeable future and will be able to realize its assets and discharge its
liabilities in the normal course of business.
The use of these principles may not be appropriate. The Corporation's
ability to continue as a going concern is dependent upon its ability to
obtain additional financing.
These financial statements do not reflect adjustments to the carrying
value of assets and liabilities, the reported revenues and expenses, and
the balance sheet classifications used that would be necessary if the going
concern assumption were not appropriate. Such adjustments would be
material.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
These financial statements have been prepared in accordance with
Canadian generally accepted accounting principles and reflect the following
significant accounting policies:
(a) Nature Of Operations
The Corporation is incorporated under the laws of the Province of
Ontario. The Corporation provides SNP genotyping services on a fee for
service basis. During 2004 and prior years, the Corporation was involved in
biomedical research in the areas of drug discovery, diagnostics and
pharmacogenomics. During the year the company transferred its interest in
its Alzheimer's technology to another company and determined it would focus
exclusively on genotyping services in the future.
(b) Investment in Affiliates
The investment in Ellipsis Neurotherapeutics Inc. is accounted for on
the equity basis whereby the investment is initially recorded at cost and
the carrying value adjusted thereafter to include the Corporation's prorata
share of earnings or loss plus any additional capital contributions.
Drawings received or receivable reduce the carrying value of the
investment. The investment will be written down when and if a permanent
decline in value has occurred.
AI
