Exhibit 99.2

Pro Forma Condensed Consolidated Financial Statements
As of September 30, 2005 (unaudited)

The following pro forma condensed consolidated balance sheet as of September 30, 2005 and the pro forma condensed consolidated statement of operations for the nine months then ended give effect to the acquisition of 51% of the outstanding share capital of BioCheck, Inc. by OXIS International, Inc. The pro forma information is based on the unaudited consolidated financial statements of OXIS International, Inc. as of September 30, 2005 and for the nine months then ended and the unaudited financial statements of BioCheck Inc. as of September 30, 2005 and for the year then ended and the adjustments described in the accompanying notes to the pro forma condensed consolidated financial statements.
 

OXIS INTERNATIONAL, INC. AND SUBSIDIARY

Pro Forma Condensed Consolidated Balance Sheet
September 30, 2005
(In thousands of dollars)

   
 9/30/05
  
   
 OXIS
  
BioCheck
  
Pro Forma Adjust.
      
Consolidated
  
Assets
                       
Current assets
                                
Cash and cash equivalents
  
$
3,845
  
$
416
  
$
(3,127
)
  
(a)
 
$
1,134
  
Accounts receivable
    
297
   
654
   
--
          
951
  
Inventory
    
289
   
316
   
--
          
605
  
Prepaids and other current assets
    
119
   
139
   
--
          
258
  
Deferred tax asset
    
--
    
24
   
--
          
24
  
Restricted cash
    
--
    
--
    
3,060
   
(a)
 
  
3,060
  
 Total current assets
    
4,550
   
1,549
   
(67
)
        
6,032
 
                                 
Property, plant, and equipment, net
   
68
   
172
   
--
          
240
  
                                 
Patents and other assets
    
995
   
92
   
15
   
(a)
 
  
1,102
  
Goodwill
    
--
    
--
    
1,007
    
(a)
 
  
1,007
  
Investment in subsidiary
    
88
   
--
    
(88
)
  
(a)
 
  
--
  
                                 
 Total assets
  
$
5,701
  
$
1,813
  
$
867
        
$
8,381
  
 

 
1

OXIS INTERNATIONAL, INC. AND SUBSIDIARY

Pro Forma Condensed Consolidated Balance Sheet
September 30, 2005
(continued)
(In thousands of dollars)

   
 9/30/05
  
   
 OXIS
  
BioCheck
  
Pro Forma Adjust.
      
Consolidated
  
Liabilities and shareholders' equity
                                
Current liabilities
                                
Notes Payable
  
$
--
  
$
--
  
$
3,060
    
(a)
 
$
3,060
  
Accounts payable and accrued expenses
    
488
   
264
   
--
          
752
  
Accrued payroll
    
51
   
--
    
--
          
51
  
Related party payable
    
--
    
80
   
--
          
80
  
Redemption payable
    
--
    
100
   
--
          
100
  
 Total current liabilities
    
539
   
444
   
3,060
         
4,043
 
                                 
Long term liabilities
    
--
    
11
   
--
          
11
  
                                 
Total liabilities
    
539
   
455
   
3,060
         
4,054
  
                                 
Minority interest
    
--
    
--
    
665
   
(a)
 
  
665
  
                                 
Shareholders’ equity
    
5,162
   
1,358
   
(2,858
)
  
(a)
 
  
3,662
  
 Total liabilities and shareholders’ equity
  
$
5,701
  
$
1,813
  
$
867
        
$
8,381
  
 

 
2

OXIS INTERNATIONAL, INC. AND SUBSIDIARY

Pro Forma Condensed Consolidated Statement of Operations
December 31, 2004
(In thousands of dollars)

   
12/31/04
  
   
OXIS
(audited)
  
BioCheck
(audited)
  
Pro Forma Adjust.
      
Consolidated Pro Forma
  
                       
Revenues
  
$
2,364
  
$
4,077
  
$
--
        
$
6,441
  
Cost of goods sold
    
1,216
   
1,954
   
--
          
3,170
 
Gross profit
    
1,148
   
2,123
   
--
         
3,271
 
                                 
Operating expenses:
                                
Research and development
    
278
   
839
   
1,500
         
2,617
 
Selling, general and administrative
    
1,843
   
852
               
2,695
 
Foreign legal proceedings
    
183
                      
183
  
Restructuring charges
    
605
                      
605
  
Taxes
    
--
    
9
               
9
 
 Total operating expenses
    
2,909
   
1,700
   
1,500
         
6,109
 
                                 
Operating income (loss)
    
(1,761
)
  
423
   
(1,500
)
  
(b)
 
  
(2,838
)
                                 
Other income and expenses:
                                
Interest income
    
1
   
5
   
--
          
6
 
Other income (expense)
    
19
    
(50
)
  
--
          
(31
)
Financing fees
    
(856
)
  
--
    
--
          
(856
)
Interest expense
    
(101
)
  
--
    
--
          
(101
)
 Total other income and expenses
    
(937
)
  
(45
)
  
--
         
(982
)
                                 
Minority interest in BioCheck (49%)
    
--
    
--
    
(140
)
  
(c)
 
  
(140
)
                                 
Income (loss) before income taxes
    
(2,698
)
  
378
   
(1,640
)
        
(3,960
)
                                 
Income taxes:
                                
Current
    
--
    
104
   
--
          
104
 
Deferred
    
--
    
(12
)
  
--
          
(12
)
 Total income taxes
    
--
    
92
   
--
          
92
 
                                 
Net income (loss)
    
(2,698
)
  
286
   
(1,640
)
        
(4,052
)
                                 
ther comprehensive income (loss)
                                
Foreign currency translation adjustment
    
(26
)
  
--
    
--
          
(26
)
Comprehensive loss
  
$
(2,724
)
$
286
  
$
(1,640
)
      
$
(4,078
)
                                 
Basic and diluted net income (loss) per common share (d)
$
(0.15
)
Weighted average number of basic and diluted shares used in computation (d)
  
26,828,289
  

 
3

 
OXIS INTERNATIONAL, INC. AND SUBSIDIARY

Pro Forma Condensed Consolidated Statement of Operations
September 30, 2005
(In thousands of dollars)

   
9/30/05
  
   
OXIS
  
BioCheck
  
Pro Forma Adjust.
      
Consolidated Pro Forma
  
                       
Revenues
  
$
1,718
  
$
3,041
  
$
--
        
$
4,759
  
Cost of goods sold
    
906
   
1,422
   
--
          
2,328
 
Gross profit
    
812
   
1,619
   
--
         
2,431
 
                                 
Operating expenses:
                                
Research and development
    
191
   
552
   
--
         
743
 
Selling, general and administrative
    
1,551
   
615
   
--
          
2,166
 
Taxes
          
17
   
--
          
17
 
 Total operating expenses
    
1,742
   
1,184
   
--
         
2,926
 
                                 
Operating income (loss)
    
(930
)
  
435
   
--
    
(b)
 
  
(495
)
                                 
Other income and expenses:
                                
Interest income
    
74
   
8
   
--
          
82
 
Other income
          
42
   
--
          
42
 
Interest expense
    
(11
)
                    
(11
)
 Total other income and expenses
    
63
   
50
   
--
         
113
 
                                 
Minority interest in BioCheck (49%)
    
--
    
--
    
(180
)
  
(c)
 
  
(180
)
                                 
Income (loss) before income taxes
    
(867
)
  
485
   
(180
)
        
(562
)
                                 
Income taxes:
                                
Current
    
--
    
133
   
--
          
133
 
Deferred
    
--
    
(16
)
  
--
          
(16
)
 Total income taxes
    
--
    
117
   
--
          
117
 
                                 
Net income (loss)
    
(867
)
  
368
   
(180
)
        
(679
)
                                 
Other comprehensive income (loss)
                                
Foreign currency translation adjustment
    
--
   
--
    
--
          
--
  
Comprehensive loss
  
$
(867
)
$
368
  
$
(180
)
      
$
(679
)
                                 
Basic and diluted net income (loss) per common share (d)
$
(0.02
)
Weighted average number of basic and diluted shares used in computation (d)   42,104,110  
 
 
4

OXIS INTERNATIONAL, INC. AND SUBSIDIARY

Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements

1.     Basis of Presentation

The accompanying pro forma condensed consolidated balance sheet and statement of operations reflect the pro forma effect of the acquisition date (“the Acquisition”) of 51% of the outstanding share capital of BioCheck, Inc. by OXIS International, Inc., which occurred on December 6, 2005. Under the terms of the Stock Purchase Agreement (“the Agreement”), signed September 19, 2005, the Company had the right to purchase up to all of the outstanding shares of common stock of BioCheck for an aggregate purchase price of $6 million in cash. Pursuant to the terms of the Agreement, at the Initial Closing, the Company purchased an aggregate of fifty-one percent (51%) of the outstanding shares of common stock of BioCheck from each of the shareholders of BioCheck on a pro rata basis, for an aggregate of $3,060,000 in cash.

The pro forma condensed consolidated balance sheet assumes that the Acquisition occurred on September 30, 2005. The pro forma condensed consolidated statement of operations for the nine-months ended September 30, 2005 assumes that the Acquisition occurred on January 1, 2005. The pro forma condensed consolidated financial statements were prepared based on the unaudited consolidated financial statements of OXIS International, Inc. and for the nine-months then ended, which are included in the Company’s Report on Form 10-QSB for the period ended September 30, 2005. The accompanying pro forma condensed consolidated balance sheet and statement of operations should be read in conjunction with the historical financial statements and related notes contained in those Reports.

These pro forma condensed consolidated financial statements are provided for illustrative purposes only. Reliance should not be placed on these pro forma condensed consolidated financial statements since they are not necessarily indicative of the financial position or the results of operations that would have been obtained if the Acquisition had occurred on the dates assumed or to project the results of operations for any future period or the financial condition at any future date.

2.    Pro Forma Condensed Consolidated Balance Sheet:

 
(a)
The pro forma condensed consolidated balance sheet reflects the Acquisition as though it had occurred on September 30, 2005.

The cost of the Acquisition consisted of the following:
 
Cash  
   $ 3,060,000  
Transaction costs and registration costs
     155,000  
    $ 3,215,000  
                                                                      
 
5
 
The preliminary allocation of the cost of the Acquisition is as follows:
 
Current assets
   $ 1,549,000  
Property, plant and equipment, net
     172,000  
Patents and other assets
     107,000   
Goodwill
     1,007,000   
Total liabilities
     (455,000)   
In-process research and development
     1,500,000   
Minority interest
      (665,000)   
    $ 3,215,000  
 
 
3. The pro forma condensed consolidated statement of operations reflects the Acquisition as though it had occurred on January 1, 2004 and reflects the following adjustments:
 
       
(b)
To reflect amortization of in-process research and development.
 
       
(c)
To reflect the 49% minority interest in the net income of BioCheck, Inc. for the year ended December 31, 2004 and the nine-months ended September 30, 2005.
 
         
(d)
Based on the weighted average shares outstanding for year ended December 31, 2004 and the nine-months ended September 30, 2005.

6