Certain statements in this document constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and/or "forward-looking information" under the Securities Act (Ontario). These statements include, without limitation, statements expressed or implied regarding our plans, goals and milestones, status of developments or expenditures relating to our business, plans to fund our current activities, statements concerning our partnering activities, health regulatory submissions, strategy, future operations, future financial position, future sales, revenues and profitability, projected costs, and market penetration. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue," "intends," "could," or the negative of such terms or other comparable terminology. We made a number of assumptions in the preparation of our forward-looking statements. You should not place undue reliance on our forward-looking statements, which are subject to a multitude of known and unknown risks and uncertainties that could cause actual results, future circumstances or events to differ materially from those stated in or implied by the forward-looking statements. Risks, uncertainties and other factors that could affect our actual results include, but are not limited to, the effects of general economic conditions, securing and maintaining corporate alliances, our estimates regarding our capital requirements, and the effect of capital market conditions and other factors, including the current status of our product development programs, on capital availability, the potential dilutive effects of any future financing, our programs regarding research, development and commercialization of our product candidates, the timing of such programs, the timing, costs and uncertainties regarding obtaining regulatory approvals to market our product candidates, and the timing and amount of any available investment tax credits, the actual or perceived benefits to users of our drug delivery technologies and product candidates as compared to others, our ability to maintain and establish intellectual property rights in our drug delivery technologies and product candidates, the actual size of the potential markets for any of our product candidates compared to our market estimates, our selection and licensing of product candidates, our ability to attract distributors and collaborators with the ability to fund patent litigation and with acceptable development, regulatory and commercialization expertise and the benefits to be derived from such collaborative efforts, sources of revenues and anticipated revenues, including contributions from distributors and collaborators, product sales, license agreements and other collaborative efforts for the development and commercialization of product candidates, our ability to create an effective direct sales and marketing infrastructure for products we elect to market and sell directly, the rate and degree of market acceptance of our products, the timing and amount of insurance reimbursement for our products, the success and pricing of other competing therapies that may become available, our ability to retain and hire qualified employees, and the manufacturing capacity of third-party manufacturers that we may use for our products. Additional risks and uncertainties relating to the Company and our business can be found in the "Risk Factors" section of our latest annual information form and latest Form 20-F, as well as in our reports, public disclosure documents and other filings with the securities commissions and other regulatory bodies in Canada and the U.S. The forward-looking statements are made as of the date hereof, and we disclaim any intention and have no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The audited consolidated financial statements, accompanying notes to the audited consolidated financial statements, and Management Discussion and Analysis for the year ended November 30, 2012 will be accessible on Intellipharmaceutics Website at www.intellipharmaceutics.com and will be available on SEDAR and EDGAR.

Summary financial tables are provided below.
Intellipharmaceutics International Inc.  
Consolidated balance sheets    
As at November 30, 2012 and 2011    
(Stated in U.S. dollars)
  2012 2011
   $   $ 
Cash and cash equivalents  497,016  4,817,088
Accounts receivable  2,778  3,383
Investment tax credits  301,932  349,861
Prepaid expenses, sundry and other assets  137,449  124,982
   939,175  5,295,314
Property and equipment, net   1,535,703  951,914
   2,474,878  6,247,228
Accounts payable   512,360  554,210
Accrued liabilities   224,797  436,154
Employee costs payable   663,222  736,073
Current portion of capital lease obligations   51,524  43,383
Due to related parties   783,717  757,126
   2,235,620  2,526,946
Deferred revenue   --  107,091
Capital lease obligations   46,242  95,206
Warrant liability   1,960,893  6,611,015
   4,242,755  9,340,258
Shareholders' deficiency    
Capital stock     
Unlimited common shares without par value    
Unlimited preference shares    
Issued and outstanding    
17,906,937 common shares   147,152  147,152
(2011 - 15,908,444)    
Additional paid-in capital  28,409,665  20,822,672
Accumulated other comprehensive loss   (240,010)  (115,035)
Accumulated deficit  (30,084,684)  (23,947,819)
   (1,767,877)  (3,093,030)
   2,474,878  6,247,228
Intellipharmaceutics International Inc.    
Consolidated statements of operations and comprehensive loss    
for the years ended November 30, 2012, 2011 and 2010    
(Stated in U.S. dollars)    
  2012 2011 2010
   $   $   $ 
Research and development  107,091  501,814  1,459,385
   107,091  501,814  1,459,385
Research and development   5,992,417  5,125,608  4,533,310
Selling, general and administrative  3,672,313  2,925,454  2,699,204
Depreciation  452,303  227,456  242,778
Write-down on long lived assets   107,123  --  36,481
   10,224,156  8,278,518  7,511,773
Loss from operations  (10,117,065)  (7,776,704)  (6,052,388)
Fair value adjustment of derivative liabilty   3,841,233  5,346,878  223,782
Financing expense  --  (2,357,732)  --
Net foreign exchange gain (loss)   181,682  (70,036)  138,949
Interest income  20,691  60,790  27,001
Interest expense  (63,406)  (83,473)  (98,435)
Loss  (6,136,865)  (4,880,277)  (5,761,091)
Other comprehensive (loss) income      
Foreign exchange translation adjustment  (124,975)  110,441  116,368
Comprehensive loss  (6,261,840)  (4,769,836)  (5,644,723)
Loss per common share, basic and diluted  (0.36)  (0.33)  (0.53)
Weighted average number of common       
shares outstanding, basic and diluted  17,258,686  14,994,118  10,907,054
Intellipharmaceutics International Inc.    
Consolidated statements of cash flows    
for the years ended November 30, 2012, 2011 and 2010    
(Stated in U.S. dollars)     
  2012 2011 2010
   $   $   $ 
Loss   (6,136,865)  (4,880,277)  (5,761,091)
Items not affecting cash      
Depreciation  452,303  227,456  242,778
Stock-based compensation   2,323,845  702,460  1,023,626
Deferred share units   36,727  33,101  12,426
Interest accrual  45,278  7,739  95,113
Investment tax credit written off   39,170  --  26,832
Fair value adjustment of derivative liability   (3,841,233)  (5,346,878)  (223,782)
Write-down on long lived assets  107,123  --  36,481
Financing expense   --  884,587  --
Unrealized foreign exchange (gain) loss  (145,724)  203,604  195,361
Change in non-cash operating assets & liabilities      
Accounts receivable  605  (1,764)  3,808
Investment tax credits  57,094  869,406  675,461
Prepaid expenses and sundry assets  (10,206)  17,189  36,776
Accounts payable and accrued liabilities  (475,387)  203,743  (1,117,563)
Deferred revenue  (107,091)  98,186  (1,440,421)
Cash flows used in operating activities  (7,654,361)  (6,981,448)  (6,194,195)
Financing activities      
Payments to related parties   --  (801,551)  (860,703)
Repayment of capital lease obligations  (44,364)  (22,452)  (36,317)
Deferred offering cost  --  --  (9,981)
Issuance of common shares on exercise of stock options  --  93,165  --
Proceeds from issuance of shares and warrants, gross   --  12,000,000  --
Proceeds from issuance of shares on exercise of warrants  187,500  --  --
Proceeds from issuance of shares, gross   5,000,000  --  --
Share issuance cost  (779,271)  --  --
Cash flows provided from (used in) financing activities  4,363,865  11,269,162  (907,001)
Investing activity      
Purchase of property and equipment  (1,036,092)  (262,142)  (133,878)
Cash flows used in investing activities  (1,036,092)  (262,142)  (133,878)
Effect of foreign exchange gain on       
cash held in foreign currency  6,516  2,380  9,718
(Decrease) increase in cash and cash equivalents  (4,320,072)  4,027,952  (7,225,356)
Cash and cash equivalents, beginning of period  4,817,088  789,136  8,014,492
Cash and cash equivalents, end of period  497,016  4,817,088  789,136
Supplemental cash flow information      
Interest paid   39,173  163,099  104,943
Taxes paid  --  --  --
CONTACT: 30 Worcester Road         Toronto, ON Canada M9W 5X2         www.intellipharmaceutics.com                  Shameze Rampertab         Vice President Finance & CFO         416-798-3001 x106          investors@intellipharmaceutics.com

Intellipharmaceutics International Inc. Logo

If you liked this article you might like

Canadian Pharma Goes Before FDA Panel Wednesday on Tamper Resistant Opioid

Intellipharmaceutics (IPCI) Stock Climbs on Licensing Agreeement

Changes at the Top for Endo Could Benefit Its Smaller Partners

2 Big Companies and 1 Small One to Target in the Pharma/Biotech Space

8 Stocks Under $10 to Trade for Big Gains