RESULTS OF OPERATIONS Years Ended December 31, 2006, 2005 and 2004. Revenues. Revenues increased 16% in 2006 to $6,894,000 from $5,918,000 in 2005 after increasing 1,051% in 2005 from $514,000 in 2004. The fluctuation between periods results from changes in the revenue components and also from the manner and timing of when certain revenues are recorded. The three years presented reflect the following revenue types: royalty revenues and licensing revenues. The increase in revenues in 2006 results from increased royalty revenue earned on sales of Thalomid�. Beginning in 2005, we are entitled to share in the royalty payments received by Royalty Pharma Finance Trust on annual Thalomid� sales above approximately $225 million. Thalomid� sales in 2005 and 2006 surpassed the sharing point in the third quarter and we recorded estimated royalty revenues of $5,310,000 and $6,882,000, respectively. No royalty revenues were recorded on Thalomid� sales in 2004.