UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended March 31, 2009
 Universal Biosensors, Inc.
 (Exact name of registrant as specified in its charter)
 Delaware
    
    98-0424072(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer Identification Number)Universal Biosensors, Inc.1 Corporate Avenue,Rowville, 3178, VictoriaAustralia
    
    Not Applicable(Address of principal executive offices)
    
    (Zip Code)
 Telephone: +61 3 9213 9000  (Registrants telephone
number, including area code)
 þ o
 o o
  Large accelerated filer
o
    
    Accelerated filer o
    
    Non-accelerated filer   o
(Do not check if a smaller reporting company)
    
    Smaller reporting company
þ
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##### 



UNIVERSAL BIOSENSORS, INC.
(A Development Stage Enterprise)
TABLE OF CONTENTS
 PagePART I
    
    FINANCIAL INFORMATIONItem 1
    
    Financial Statements1)
    
    Consolidated condensed balance sheets at March 31, 2009 and December 31, 2008 (unaudited)
    
    
    32)
    
    Consolidated condensed statements of operations for the three months ended March 31, 2009 and 2008 (unaudited)
    
    
    43)
    
    Consolidated condensed statements of cash flows for the three Months ended March 31, 2009 and 2008 (unaudited)
    
    
    54)
    
    Consolidated condensed statements of changes in stockholders equity and comprehensive income for the period ended March 31, 2009 (unaudited)
    
    
    65)
    
    Notes to consolidated condensed financial statements (unaudited)
    
    
    7Item 2
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    20Item 3
    
    Quantitative and Qualitative Disclosures About Market Risk
    
    
    27Item 4
    
    Controls and Procedures
    
    
    28PART II
    
    OTHER INFORMATIONItem 1
    
    Legal Proceedings
    
    Not ApplicableItem 1A
    
    Risk Factors
    
    Not ApplicableItem 2
    
    Unregistered Sales of Equity Securities and Use of Proceeds
    
    Not ApplicableItem 3
    
    Defaults Upon Senior Securities
    
    Not ApplicableItem 4
    
    Submission of Matters to a Vote of Security Holders
    
    Not ApplicableItem 5
    
    Other Information
    
    Not ApplicableItem 6
    

Exhibits
    
    
    29Exhibit 31.1Exhibit 31.2Exhibit 32.0SIGNATURES
    
    
    
    
    30
  2




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##### 



PART I
 
 Item 1 Financial Statements
 UNIVERSAL BIOSENSORS, INC.
(A Development Stage Enterprise)
 
 CONSOLIDATED CONDENSED BALANCE SHEETS
 (Unaudited)
 March 31,
    
    
    December 31,2009
    
    
    2008A$
    
    
    A$ASSETSCurrent assets:Cash and cash equivalents
    
    
    28,030,091
    
    
    
    28,334,864Accrued income
    
    
    118,305
    
    
    
    118,305Accounts receivables
    
    
    2,962
    
    
    
    31,657Prepayments
    
    
    4,055,591
    
    
    
    3,730,246Other current assets
    
    
    439,869
    
    
    
    535,000Total current assets
    
    
    32,646,818
    
    
    
    32,750,072Property, plant and equipment
    
    
    23,693,825
    
    
    
    23,522,706Less accumulated depreciation
    
    
    (4,476,290
    )
    
    
    (3,767,457
    )Property, plant and equipment  net
    
    
    19,217,535
    
    
    
    19,755,249Total assets
    
    
    51,864,353
    
    
    
    52,505,321LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    
    362,510
    
    
    
    630,977Accrued expenses
    
    
    710,634
    
    
    
    838,697Borrowings
    
    
    299,796
    
    
    
    Deferred income
    
    
    1,311,601
    
    
    
    Employee entitlements provision
    
    
    450,537
    
    
    
    435,387Total current liabilities
    
    
    3,135,078
    
    
    
    1,905,061Non-current liabilities:Asset retirement obligations
    
    
    1,734,990
    
    
    
    1,699,133Employee entitlements provision
    
    
    195,418
    
    
    
    197,897Deferred income
    
    
    308,785
    
    
    
    Total non-current liabilities
    
    
    2,239,193
    
    
    
    1,897,030Total liabilities
    
    
    5,374,271
    
    
    
    3,802,091Stockholders equity:Preferred stock, $0.01 par value. Authorized 1,000,000 shares;
issued and outstanding nil in 2009 
(2008: nil)Common stock, $0.0001 par value. Authorized 300,000,000
shares; issued and outstanding 156,976,936
shares in 2009 (2008: 156,976,936)
    
    
    15,698
    
    
    
    15,698Additional paid-in capital
    
    
    73,479,443
    
    
    
    73,338,995Accumulated deficit
    
    
    (24,353,151
    )
    
    
    (12,357,265
    )Current year loss
    
    
    (2,353,596
    )
    
    
    (11,995,886
    )Accumulated other comprehensive income
    
    
    (298,312
    )
    
    
    (298,312
    )Total stockholders equity
    
    
    46,490,082
    
    
    
    48,703,230Total liabilities and stockholders equity
    
    
    51,864,353
    
    
    
    52,505,321
  3




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##### 



UNIVERSAL BIOSENSORS, INC.
(A Development Stage Enterprise)
 
 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
 (Unaudited)
 Period fromInception(September 14,2001) to March
    
    Three Months Ended March 31,31, 2009
    
    2009
    
    2008A$
    
    A$
    
    A$RevenueRevenue from products
    
    $
    
    
    
    $
    
    
    
    $
    Revenue from services
    
    
    4,589,218
    
    
    
    1,467,464
    
    
    
    Total revenue from ordinary activities
    
    
    4,589,218
    
    
    
    1,467,464Costs of revenuesCost of goods sold
    
    
    
    
    
    
    
    
    
    
    Cost of services
    
    
    3,136,589
    
    
    
    14,835
    
    
    
    Total costs of revenues
    
    
    3,136,589
    
    
    
    14,835
    
    
    
    Gross profit
    
    
    1,452,629
    
    
    
    1,452,629Operating expensesResearch and development (1 and 2)
    
    
    32,149,654
    
    
    
    3,233,635
    
    
    
    1,940,629General and administrative (3)
    
    
    15,553,356
    
    
    
    1,190,592
    
    
    
    1,389,013Total operating expenses
    
    
    47,703,010
    
    
    
    4,424,227
    
    
    
    3,329,642Research and development income
    
    
    13,466,283
    
    
    
    388,319
    
    
    
    279,298Loss from operations
    
    
    (32,784,098
    )
    
    
    (2,583,279
    )
    
    
    (3,050,344
    )Other income/(expense)Interest income
    
    
    4,866,107
    
    
    
    267,074
    
    
    
    773,957Interest expense
    
    
    (13,102
    )
    
    
    (3,613
    )
    
    
    Fee income
    
    
    1,131,222
    
    
    
    
    
    
    
    1,131,222Other
    
    
    110,918
    
    
    
    (33,778
    )
    
    
    (16,228
    )Total other income/(expense)
    
    
    6,095,145
    
    
    
    229,683
    
    
    
    1,888,951Net loss before tax
    
    
    (26,688,953
    )
    
    
    (2,353,596
    )
    
    
    (1,161,393
    )Income tax benefit/(expense)
    
    
    (17,794
    )
    
    
    
    
    
    
    3,054Net loss
    
    $
    (26,706,747
    )
    
    $
    (2,353,596
    )
    
    $
    (1,158,339
    )Basic and diluted net loss per share
    
    $
    (0.36
    )
    
    $
    (0.01
    )
    
    $
    (0.01
    )Average weighted number of shares outstanding during the period
    
    
    73,348,189
    
    
    
    156,976,936
    
    
    
    156,958,812Notes:1. Net of research grant income in these amounts
    
    $
    2,366,063
    
    
    $
    
    
    
    $
    240,7512. Includes non-cash compensation expense
(research and development)
    
    $
    1,244,749
    
    
    $
    95,997
    
    
    $
    77,8443. Includes non-cash compensation expense
(general and administrative)
    
    $
    895,589
    
    
    $
    44,451
    
    
    $
    95,764
  4




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##### 



UNIVERSAL BIOSENSORS, INC.
(A Development Stage Enterprise)
 
 CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
 (Unaudited)
 Period fromInception(September 14,2001) to March
    
    Three Months Ended March 31,31, 2009
    
    2009
    
    2008A$
    
    A$
    
    A$Cash flows from operating activities:Net loss
    
    
    (26,706,747
    )
    
    
    (2,353,596
    )
    
    
    (1,158,338
    )Adjustments to reconcile net loss to net cash used in operating activities:Net exchange difference
    
    
    1,102,572
    
    
    
    
    
    
    
    Depreciation and impairment of plant & equipment
    
    
    4,999,153
    
    
    
    717,870
    
    
    
    382,377Share based payments expense
    
    
    2,140,338
    
    
    
    140,448
    
    
    
    173,608Loss on fixed assets disposal
    
    
    206,506
    
    
    
    55,821
    
    
    
    Change in assets and liabilities:Inventory
    
    
    
    
    
    
    
    
    
    
    (373,631
    )Accounts receivables
    
    
    (910,290
    )
    
    
    28,695
    
    
    
    (24,034
    )Prepaid expenses and other current assets
    
    
    (38,486
    )
    
    
    (230,214
    )
    
    
    (480,607
    )Accrued income
    
    
    (108,855
    )
    
    
    
    
    
    
    (92,261
    )Income tax payable
    
    
    
    
    
    
    
    
    
    
    (18,000
    )Deferred revenue
    
    
    1,620,386
    
    
    
    1,620,386
    
    
    
    Borrowings
    
    
    299,796
    
    
    
    299,796
    
    
    
    Employee entitlements
    
    
    645,955
    
    
    
    12,671
    
    
    
    106,074Accounts payable and accrued expenses
    
    
    1,157,009
    
    
    
    (335,523
    )
    
    
    308,838Net cash used in operating activities
    
    
    (15,592,663
    )
    
    
    (43,646
    )
    
    
    (1,175,974
    )Cash flows from investing activities:Instalment payments to acquire plant and equipment
    
    
    (3,616,235
    )
    
    
    
    
    
    
    (1,763,623
    )Purchases of property, plant and equipment
    
    
    (21,005,025
    )
    
    
    (261,127
    )
    
    
    (1,963,968
    )Net cash used in investing activities
    
    
    (24,621,260
    )
    
    
    (261,127
    )
    
    
    (3,727,591
    )Cash flows from financing activities:Gross proceeds from share issue
    
    
    73,517,472
    
    
    
    
    
    
    
    Transaction costs on share issue
    
    
    (4,099,870
    )
    
    
    
    
    
    
    (16,663
    )Proceeds from stock options exercised
    
    
    184,045
    
    
    
    
    
    
    
    Net cash provided by/(used in) financing activities
    
    
    69,601,647
    
    
    
    
    
    
    
    (16,663
    )Net increase/(decrease) in cash and cash equivalents
    
    
    29,387,724
    
    
    
    (304,773
    )
    
    
    (4,920,228
    )Cash and cash equivalent at beginning of period
    
    
    
    
    
    
    28,334,864
    
    
    
    41,958,285Effect of exchange rate fluctuations on the balances of cash held in foreign currencies
    
    
    (1,357,633
    )
    
    
    
    
    
    
    Cash and cash equivalents at end of period
    
    
    28,030,091
    
    
    
    28,030,091
    
    
    
    37,038,057
  5




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##### 



UNIVERSAL BIOSENSORS, INC.
(A Development Stage Enterprise)
 
 CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY AND COMPREHENSIVE INCOME
 (Unaudited)
 Additional
    
    
    
    
    
    Other
    
    TotalPreference Shares
    
    Ordinary shares
    
    Paid-in
    
    Accumulated
    
    Comprehensive
    
    StockholdersShares
    
    Amount
    
    Shares
    
    Amount
    
    Capital
    
    Deficit
    
    Income
    
    EquityA$
    
    
    
    A$
    
    A$
    
    A$
    
    A$
    
    A$Balances at December 31, 2008
    
    
    
    
    
    
    
    
    
    
    156,976,936
    
    
    
    15,698
    
    
    
    73,338,995
    
    
    
    (24,353,151
    )
    
    
    (298,312
    )
    
    
    48,703,230Comprehensive IncomeNet loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,353,596
    )
    
    
    
    
    
    
    (2,353,596
    )Foreign currency translation reserve
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total Comprehensive Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,353,596
    )Stock option expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    140,448
    
    
    
    
    
    
    
    
    
    
    
    140,448
    
    
    
    
    
    
    
    156,976,936
    
    
    
    15,698
    
    
    
    73,479,443
    
    
    
    (26,706,747
    )
    
    
    (298,312
    )
    
    
    46,490,082
  6




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##### 



UNIVERSAL BIOSENSORS, INC.
(A Development Stage Enterprise)
 
 NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 (Unaudited)
 Organization of the Company
      7




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##### 



UNIVERSAL BIOSENSORS, INC.
(A Development Stage Enterprise)
 NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
    Interim Financial Statements
   Basis of Presentation
   Principles of Consolidation
  Use of Estimates
  8




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##### 



UNIVERSAL BIOSENSORS, INC.
(A Development Stage Enterprise)
 NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
 Cash & Cash Equivalents
  Short-Term Investments (Held-to-maturity)
  Concentration of Credit Risk and Other Risks and Uncertainties
   Derivative Instruments and Hedging Activities
 Derivative financial instruments
    Cash flow hedges
   9




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##### 



UNIVERSAL BIOSENSORS, INC.
(A Development Stage Enterprise)
 NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
   Inventory
  Receivables
   Property, Plant and Equipment
   March 31,
    
    
    December2009
    
    

31, 2008A$
    
    
    A$Plant and equipment
    
    
    13,063,771
    
    
    
    13,003,248Leasehold improvements
    
    
    8,186,011
    
    
    
    8,123,925Capital work in process
    
    
    2,444,043
    
    
    
    2,395,53323,693,825
    
    
    
    23,522,706Accumulated depreciation
    
    
    (4,476,290
    )
    
    
    (3,767,457
    )Property, plant & equipment, net
    
    
    19,217,535
    
    
    
    19,755,249
  10




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##### 



UNIVERSAL BIOSENSORS, INC.
(A Development Stage Enterprise)
 NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
     Three monthsended March 31,
    
    
    Year ended2009
    
    
    December 31, 2008A$
    
    
    A$Movement in accumulated depreciation
    
    
    708,833
    
    
    
    2,195,236Accumulated depreciation of fixed assets disposed
    
    
    9,037
    
    
    
    71,611Depreciation expense
    
    
    717,870
    
    
    
    2,266,847
 Research and Development
    Period frominception to
    
    Three months ended MarchMarch 31,
    
    31,2009
    
    2009
    
    2008A$
    
    A$
    
    A$Research and development expenses
    
    
    34,515,717
    
    
    
    3,233,635
    
    
    
    2,181,380Research grants received recognized against
related research and development expenses
    
    
    2,366,063
    
    
    
    
    
    
    
    240,751Research and development expenses as reported
    
    
    32,149,654
    
    
    
    3,233,635
    
    
    
    1,940,629
 11




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##### 



UNIVERSAL BIOSENSORS, INC.
(A Development Stage Enterprise)
 NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
 Income Taxes
     Asset Retirement Obligations
    Three months ended
    
    
    Year endedMarch 31, 2009
    
    
    December 31, 2008A$
    
    
    A$Opening balance
    
    
    1,699,133
    
    
    
    1,566,892Accretion expense
    
    
    35,857
    
    
    
    132,241Ending balance
    
    
    1,734,990
    
    
    
    1,699,133
 Fair Value of Financial Instruments
  12




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##### 



UNIVERSAL BIOSENSORS, INC.
(A Development Stage Enterprise)
 NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 (Unaudited)
 Impairment of Long-Lived Assets
  Australian Goods and Services Tax (GST)
  Revenue Recognition
 Revenue from services
  
    
    as we perform the services; or
    
    on a percentage-of-completion basis where revenues is related to costs incurred in
providing the services required under the contract
 Research and development revenue
   13




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##### 



UNIVERSAL BIOSENSORS, INC.
(A Development Stage Enterprise)
 NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 (Unaudited)
      Fee Income
  Interest revenue
  Foreign Currency
 Functional and reporting currency
  14




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##### 



UNIVERSAL BIOSENSORS, INC.
(A Development Stage Enterprise)
 NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 (Unaudited)
     Transactions and balances
   Group companies
  
    
    assets and liabilities for each balance sheet item reported are translated at the closing
rate at the date of that balance sheet;
    
    income and expenses for each income statement are translated at average exchange rates
(unless this is not a reasonable approximation of the effect of the rates prevailing on the
transaction dates, in which case income and expenses are translated at the dates of the
transactions); and
    
    all resulting exchange differences are recognized as a separate component of equity.
  Commitments and Contingencies
  15




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##### 



UNIVERSAL BIOSENSORS, INC.
(A Development Stage Enterprise)
 NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 (Unaudited)
 Patent and License Costs
  Clinical Trial Expenses
   Leased Assets
  Stock-based Compensation
     Period frominception to
    
    
    Three months ended MarchMarch 31,
    
    
    31,2009
    
    
    2009
    
    
    2008A$
    
    
    A$
    
    
    A$Research and development
    
    
    1,244,749
    
    
    
    95,997
    
    
    
    77,844General and administrative
    
    
    895,589
    
    
    
    44,451
    
    
    
    95,764Total share-based compensation expense
    
    
    2,140,338
    
    
    
    140,448
    
    
    
    173,608
 16




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##### 



UNIVERSAL BIOSENSORS, INC.
(A Development Stage Enterprise)
 NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 (Unaudited)
   Grant DateFebruary 2009
    
    August 2008
    
    March 2008Exercise Price (A$)
    
    $
    0.50
    
    
    $
    0.70
    
    
    $
    0.89Share Price at Grant Date (A$)
    
    $
    0.43
    
    
    $
    0.71
    
    
    $
    0.91Volatility
    
    
    77
    %
    
    
    71
    %
    
    
    76
    %Expected Life
    
    10 years
    
    
    10 years
    
    
    10 yearsRisk Free Interest Rate
    
    
    4.26
    %
    
    
    5.85
    %
    
    
    5.87
    %Fair Value of Option (A$)
    
    $
    0.28
    
    
    $
    0.45
    
    
    $
    0.59
  Weighted AverageNumber of Options
    
    Exercise PriceOver Shares
    
    A$Outstanding Balance, December 31, 2008
    
    
    6,373,284
    
    
    
    0.66Granted
    
    
    154,000
    
    
    
    0.50Outstanding Balance, March 31, 2009
    
    
    6,527,284
    
    
    
    0.65Exercisable shares as of March 31, 2009
    
    
    4,440,903
    
    
    
    0.53
  Fiscal Year
    
    A$2009  remaining periods
    
    
    366,8352010
    
    
    160,6342011
    
    
    14,217541,686
 Pension Costs
  17




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##### 



UNIVERSAL BIOSENSORS, INC.
(A Development Stage Enterprise)
 NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 (Unaudited)
 Net Loss per Share and Anti-dilutive Securities
  Total Comprehensive Income
  Recent Accounting Pronouncements
   Related Party Transactions
     Three months ended March 31,2009
    
    2008A$
    
    A$Current ReceivablesReimbursement of expenses
    
    
    3,223
    
    
    
    494,982Sale of Goods and ServicesRevenue from services
    
    
    1,467,464
    
    
    
    
 18




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##### 



UNIVERSAL BIOSENSORS, INC.
(A Development Stage Enterprise)
 NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
 (Unaudited)
  
    
    the Company received research and development revenue of A$388,319 and A$279,298 for the
three months ended March 31, 2009 and 2008, respectively under the Development and Research
Agreement with LifeScan;
    
    Universal Biosensors Pty Ltd received an initial non-refundable fee of A$1,131,222 in
January 2008 in consideration for the grant of certain rights to LifeScan pursuant to the
Master Services and Supply Agreement; and
    
    Universal Biosensors Pty Ltd was reimbursed A$17,580 and A$282,324 for the three months
ended March 31, 2009 and 2008, respectively for certain expenditure incurred on behalf of
LifeScan
 Borrowings
  Subsequent Events
  19




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##### 



UNIVERSAL BIOSENSORS, INC.
 
 Item 2 Managements Discussion and Analysis of Financial Condition and Results of Operations
 The following discussion and analysis provides information that we believe is relevant to an
assessment and understanding of our results of operations and financial condition. You should read
this analysis in conjunction with our audited consolidated financial statements and related
footnotes and Managements Discussion and Analysis of Financial Condition and Results of Operations
included in our Form 10-K filed with the United States Securities and Exchange Commission (SEC).
This Form 10-Q contains, including this discussion and analysis, certain forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created by
such acts. For this purpose, any statements that are not statements of historical fact may be
deemed to be forward looking statements, including statements relating to future events and our
future financial performance. Those statements in this Form 10-Q containing the words believes,
anticipates, plans, expects, and similar expressions constitute forward looking statements,
although not all forward looking statements contain such identifying words.
 The forward looking statements contained in this Form 10-Q are based on our current
expectations, assumptions, estimates and projections about the Company and its businesses. All
such forward looking statements involve known and unknown risks, uncertainties and other factors
that may cause our actual results to be materially different from those results expressed or
implied by these forward-looking statements, including those set forth in this Quarterly Report.
 Overview
    Master Services and Supply Agreement with LifeScan
  20




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##### 



UNIVERSAL BIOSENSORS, INC.
  Development and Research Agreement with LifeScan
   License Agreement with LifeScan
   Results of Operations
 Gross Profit on Services Performed
  21




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##### 



UNIVERSAL BIOSENSORS, INC.
 Research and Development Expenses
  
    
    consultant and employee related expenses, which include salary and benefits;
 
    
    materials and consumables acquired for the research and development activities;
 
    
    external research and development expenses incurred under agreements with third party
organizations and universities; and
 
    
    facilities, depreciation and other allocated expenses, which include direct and allocated
expenses for rent and maintenance of facilities, depreciation of leasehold improvements and
equipment and laboratory and other supplies.
  Period frominception to
    
    Three months ended MarchMarch 31,
    
    31,2009
    
    2009
    
    2008A$
    
    A$
    
    A$Research and development expenses
    
    
    34,515,717
    
    
    
    3,233,635
    
    
    
    2,181,380Research grants received recognized against
related research and development expenses
    
    
    2,366,063
    
    
    
    
    
    
    
    240,751Research and development expenses as reported
    
    
    32,149,654
    
    
    
    3,233,635
    
    
    
    1,940,629
     22




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##### 



UNIVERSAL BIOSENSORS, INC.
 General and Administrative Expenses
   Research and Development Income
    Fee Income
  Interest Income
  Interest Expense
  23




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##### 



UNIVERSAL BIOSENSORS, INC.
 Liquidity and Capital Resources
       24




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##### 



UNIVERSAL BIOSENSORS, INC.
  Operating Capital and Capital Expenditure Requirements
   
    
    our ability to finalize negotiations with LifeScan with respect to amendments to the
Master Services and Supply Agreement to reflect the change of product focus from the
original initial blood glucose tests strips to an enhanced initial blood glucose test
strip;
    
    expenses we incur in manufacturing, developing, marketing and selling products;
    
    any need to scale our manufacturing operations to meet demand for blood glucose strips
under the Master Services and Supply Agreement, or for our point-of-care tests, including
additional costs related to the fit out of our manufacturing facility in Melbourne,
Australia and the acquisition of additional manufacturing equipment;
    
    changes to our operations to enable us to perform services required under the Master
Services and Supply Agreement;
    
    the timing and amount of receipts of revenue from LifeScan under the Master Services and
Supply Agreement;
    
    the success of our research and development efforts, and whether or not additional funds
are required to support these;
    
    the rate of progress and cost of our product development activities;
    
    the timing and amount of revenue generated by sales of our point-of-care tests;
    
    costs and timing of regulatory approvals;
    
    costs of filing, prosecuting, defending and enforcing any patent claims and other
intellectual property rights;
    
    the terms and timing of any collaborative, licensing and other arrangements that we may
establish; and
    
    the acquisition of businesses, products and technologies, although we currently have no
commitments or agreements relating to any of these types of transactions.
 Off-Balance Sheet Arrangement
  Less than 1
year
    A
    $
    500,1201  3 years
    
    
    1,052,5833  5 years
    
    
    1,120,401More than 5 years
    
    
    Total minimum lease payments
    A
    $
    2,673,104
  25




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##### 



UNIVERSAL BIOSENSORS, INC.
 Contractual Obligations
  Payments Due By PeriodLess than 1
    
    
    
    
    
    
    
    
    
    
    More than 5Total
    
    
    year
    
    

1
 3 years
    
    

3  5 years
    
    
    yearsLong-Term Debt Obligations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Asset Retirement Obligations
(1)
    
    
    1,734,990
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,734,990Operating Lease Obligations (2)
    
    
    2,673,104
    
    
    
    500,120
    
    
    
    1,052,583
    
    
    
    1,120,401
    
    
    
    Purchase Obligations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other Long-Term Liabilities on
Balance Sheet under GAAP (3)
    
    
    195,418
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    195,418Total
    
    
    4,603,512
    
    
    
    500,120
    
    
    
    1,052,583
    
    
    
    1,120,401
    
    
    
    1,930,408
 
 (1)
    
    Represents legal obligations associated with the retirement and removal of long-lived
assets.(2)
    
    Our operating lease obligations relate primarily to the lease of our premises.(3)
    
    Represents long service leave owing to the employees Segments
  26




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##### 



UNIVERSAL BIOSENSORS, INC.
 
 Item 3 Quantitative and Qualitative Disclosures About Market Risk
 Foreign Currency Market Risk
   Interest Rate Risk
  27




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##### 



UNIVERSAL BIOSENSORS, INC.
 
 Item 4 Controls and Procedures
 Evaluation of Disclosure Controls and Procedures.
  
    
    information required to be disclosed by the Company in this Quarterly
Report on Form 10-Q and other reports that the Company files or
submits under the Exchange Act would be accumulated and communicated
to the Companys management, including its principal executive officer
and principal financial officer, as appropriate to allow timely
decisions regarding required disclosure;
    
    information required to be disclosed by the Company in this Quarterly
Report on Form 10-Q and other reports that the Company files or
submits under the Exchange Act would be recorded, processed,
summarized and reported within the time periods specified in the SECs
rules and forms; and
    
    the Companys disclosure controls and procedures are effective as of
the end of the period covered by this Quarterly Report on Form 10-Q to
ensure that material information relating to the Company and its
consolidated subsidiaries is made known to them, particularly during
the period in which the periodic reports of the Company, including
this Quarterly Report on Form 10-Q, are being prepared.
 Changes in Internal Control Over Financial Reporting.
  28




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##### 



UNIVERSAL BIOSENSORS, INC.
 
 PART II
 
 Item 6 Exhibits
 Exhibit No
    
    Description
    
    Location31.1
    
    Rule 13a-14(a)/15d-14(a) Certification (Principal Executive Officer)
    
    Filed herewith31.2
    
    Rule 13a-14(a)/15d-14(a) Certification (Principal Financial Officer)
    
    Filed herewith32.0*
    
    Section 1350 Certificate
    
    Filed herewith
 
 *
    
    This exhibit is furnished rather than filed, and shall not be incorporated by reference into
any filing of the registrant in accordance with Item 601 of Registration S-K 29




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##### 



UNIVERSAL BIOSENSORS, INC.
 
 SIGNATURES
  UNIVERSAL BIOSENSORS, INC.
(Registrant)By:
    /s/ MARK MORRISSONDate: May 11, 2009
    
    Mark MorrissonChief Executive Officer and
Executive DirectorBy:
    /s/ SALESH BALAKDate: May 11, 2009
    
    Salesh BalakChief Financial Officer 30




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##### 



INDEX TO EXHIBITS
Quarterly Report on Form 10-Q
Dated May 11, 2009
 Exhibit No
    
    Description
    
    Location31.1
    
    Rule 13a-14(a)/15d-14(a) Certification (Principal Executive Officer)
    
    Filed herewith31.2
    
    Rule 13a-14(a)/15d-14(a) Certification (Principal Financial Officer)
    
    Filed herewith32.0
    
    Section 1350 Certificate
    
    Filed herewith