| Cash Flow for FalconStor Software Inc. (FALC) | | | | | | | Cash Flow | in Thousands of Dollars | | | 12/2007 | 12/2006 | 12/2005 | 12/2004 | 12/2003 | | | Net Income | 12,742 | (3,375) | 2,293 | (5,889) | (7,369) | | Depreciation & Amortization | 3,917 | 3,581 | 3,506 | 3,656 | 2,759 | | Deferred Income Taxes | (9,837) | - | - | - | - | | Operating Losses | (25) | (13) | 4,610 | 3,391 | 550 | | Extraordinary Losses | - | - | - | - | - | | | Decrease in Receivables | (7,034) | (13,704) | (9,275) | (6,456) | (2,824) | | Decrease in Inventories | - | - | - | - | - | | Decrease in Other Current Assets | - | - | (50) | (251) | (228) | | Increase in Payables | 301 | 254 | 354 | 259 | 125 | | Increase in Other Current Liabilities | 5,139 | 2,018 | 5,339 | 3,581 | 890 | | Decrease in Other Working Capital | 3,721 | 5,615 | - | - | - | | Other Non-Cash Items | 8,033 | 14,112 | - | - | - | | Net Cash from Continuing Operations | 16,589 | 8,163 | 6,486 | (1,072) | (6,233) | | Net Cash from Discontinued Operations | - | - | - | - | - | | Cash from Operating Activities | 16,589 | 8,163 | 6,486 | (1,072) | (6,233) | | | | Sale of Property, Plant, Equipment | - | - | - | - | - | | Sale of Short Term Investments | 105,156 | 71,253 | 61,868 | 43,459 | 17,034 | | | Purchase of Property, Plant, Equipment | (5,962) | (4,240) | (3,396) | (2,843) | (2,999) | | Acquisitions | - | - | - | (214) | - | | Purchase of Short Term Investments | (111,749) | (78,776) | (61,264) | (33,897) | (8,537) | | Other Investment Changes, Net | 197 | (65) | - | (186) | (2,705) | | Cash from Investing Activities | (12,357) | (11,829) | (2,792) | 6,319 | 2,792 | | | Issuance of Debt | - | - | - | - | - | | Issuance of Capital Stock | 10,007 | 2,501 | 1,943 | 2,037 | 852 | | | Repayment of Debt | - | - | - | - | - | | Repurchase of Capital Stock | (3,274) | (2,147) | (1,918) | (280) | - | | Payment of Cash Dividends | - | - | - | - | - | | Other Financing Charges, Net | 5,070 | 46 | - | - | - | | Cash from Financing Activities | 11,804 | 400 | 24 | 1,757 | (2,183) | | | | Effect of Exchange Rate Changes | 80 | 75 | (405) | (6) | (81) | | Net Change in Cash | 16,114 | (3,192) | 3,312 | 6,998 | (5,705) | | | Cash at Beginning of Year | 16,105 | 18,797 | 15,485 | 8,486 | 14,191 | | Cash at End of Period | 32,219 | 15,605 | 18,797 | 15,485 | 8,486 | | | |
