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Operating Matters and Liquidity
6 Months Ended
Jun. 30, 2011
Operating Matters and Liquidity
Note 2—Operating Matters and Liquidity
 
The Company has experienced net operating losses since its inception through June 30, 2011, including a net loss of $2.5 million for the six months then ended, contributing to an accumulated deficit of $100 million as of June 30, 2011. The Company has borrowings of $11.0 million at June 30, 2011 under its line of credit with Pyxis Innovations Inc., an affiliate of Alticor (“Pyxis”).
 
In March 2010, the Company entered into a definitive agreement with institutional investors to sell $5.3 million of securities in a registered direct offering. Net proceeds of approximately $4.9 million were received on March 10, 2010.

The Company continues to take steps, as it did in 2010, to further reduce operating costs including consulting, research and personnel expenses. In addition the Company has reduced its costs of processing genetic tests in its laboratory by working with suppliers to develop more efficient raw materials such as equipment processing plates. The Company’s current laboratory space is deemed to be adequate and able to process high volumes of genetic tests.

We expect that our current and anticipated financial resources, including $3.3 million available under our credit facility with Pyxis, are adequate to maintain our current and planned operations through July 2012.