In your most recent corporate presentation, on slide #8, you have quoted the value of funds raised on exercised warrants of $15.1 million. I am assuming that this means that if all outstanding warrants were exercised that Sage would receive $15.1MM in cash.

Based on your June 30 interim financial statements here is a list of outstanding warrants

3,651,500 warrants @ $0.18 expiring July 11, 2009
1,786,000 warrants @ $0.19 expiring September 1, 2009

5,428,570 warrants @ $0.19 expiring October 12, 2009
5,480,000 warrants @ $0.75 expiring November 14, 2009
12,800,000 warrants @ $0.20 expiring October 17, 2010
1,000,000 warrants @ $0.20 expiring October 25, 2010

You also did a private placement in July, 2009 which added

10,018,508 warrants @$0.10 expiring July 15, 2011

The July11 and September 1 warrants have already expired. The total (exercised) value of the remaining unexpired warrants by my calculations is $8,903,278. Nearly 11 million warrants with an exercised value of $5,141,428 will expire within the next 45 days and are well out of the money leaving a realisitc expectation of $3,761,850 sometime in late 2010 and mid 2011.

Questions

1.) Is there something about the warrants that is not apparent in your financial statements that would lead me to calculate the exercised value of your warrants some 40% lower than what you have in your presentation?

2.) Do you plan to pull a rabbit out of a hat in the next 14 to 45 days to bring the SP to a point where the $0.75 warrants can be exercised profitably? Perhaps you are considering extending the expiry date of these warrants?

If none of the above is true then I would suggest that the "proceeds from exercised warrants" number is not only false but a red herring. Perhaps you should remove it or at least update it with accurate figures.