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LIQUIDITY AND MANAGEMENT'S PLAN
9 Months Ended
Jun. 30, 2016
Liquidity And Management Plan [Abstract]  
LIQUIDITY AND MANAGEMENT'S PLAN

NOTE B — LIQUIDITY AND MANAGEMENT’S PLAN

 

The Company has recurring net losses, which have resulted in an accumulated deficit of $221,402,312 as of June 30, 2016. The Company incurred a net loss of $9,760,903 and generated negative operating cash flow of $7,450,315 for the nine month period ended June 30, 2016.The Company also had working capital of $9,109,783 and cash and cash equivalents of $7,086,773 as of June 30, 2016. The Company’s current capital resources include cash and cash equivalents, accounts receivable, inventories and prepaid expenses and other current assets. Historically, the Company has financed its operations principally from the sale of equity securities.

 

The Company expects to finance operations and capital expenditures primarily through cash received from the November 2015 public offering and concurrent private placement as well as collection of its current accounts receivables. The Company estimates that its cash and cash equivalents and the collection of its current accounts receivables are sufficient to fund operations for the next twelve months.

 

The Company may require additional funds to complete the continued development of its products, product manufacturing, and to fund expected additional losses from operations, until revenues are sufficient to cover the Company’s operating expenses.

 

As a result of the Company's having filed with the SEC on July 22, 2016, certain audited historical financial statements relating to the assets of Vandalia Research, Inc. acquired in September 2015, which was past the date on which they were required to be filed, the Company is currently ineligible to use Form S-3, a streamlined registration form, to offer or sell securities until December 1, 2016.