XML 49 R7.htm IDEA: XBRL DOCUMENT

Note 2. Financial Condition

6 Months Ended

Jun. 30, 2013

Financial Condition. Our viability as a company is dependent upon successful commercialization of products resulting from its research and product development activities. However, our inability to commercialize a product has had a profoundly negative impact on the financial condition of the Company. The difficulty in raising funds has put our core technology in jeopardy. To save, and further develop, our core technology, the Company must continue to pursue a broad range of financing alternatives to improve its financial condition. These alternatives include the sale or issuance of common stock, common stock warrants, stock options, and debt financing. These financing alternatives could require an increase in the number of authorized shares of the Company’s common stock (subject to any required shareholder approval) and such could result in significant dilution to existing shareholders and, possibly, a change of control of the Company. Due to the high risk position of the Company, debt financing could prove to be a very costly financing avenue. Commercialization of a product or products will require significant development, laboratory and clinical testing and capital investment prior to obtaining regulatory approval to commercially market our product(s). Continued losses and lack of liquidity indicate that we are having great difficulty being able to continue as a going concern for a reasonable period of time. The ability to continue as a going concern is dependent upon several factors including, but not limited to, the ability to generate sufficient cash flow to meet obligations on a timely basis, obtain additional financing, and continue to obtain operating services from vendors.