Liquidity	3 Months Ended
Sep. 30, 2011
Liquidity
Liquidity	3. Liquidity The Company incurred net losses of $1,384,000 for the three-month period ended September 30, 2011 and $3,733,000 and $2,169,000 in the fiscal years ended June 30, 2011 and 2010, respectively. In addition, the Company has accumulated aggregate net losses from the inception of business through September 30, 2011 of $111,415,000. During the first quarter of fiscal 2012, the Company entered into a license agreement with Medtronic for the Prostiva RF Therapy System. The Company paid Medtronic $500,000 on September 6, 2011 for half of the $1,000,000 initial license fee, the remainder due on the anniversary of this date. Primarily due to this licensing payment, transaction related expenses, the net loss incurred in the current business and one-time annual operating expenses such as insurance premiums, the Company's cash and cash equivalents balance decreased to approximately $1.6 million as of September 30, 2011. The amount of decrease in our cash balance in the first quarter of fiscal year 2012 is not expected to continue throughout the remainder of the fiscal year. The cash outflows in the first quarter related to annual operating expenses and the licensing fee will not occur again in fiscal year 2012. In addition, as part of the licensing agreement, payments for Prostiva products and royalties are deferred into the next fiscal year while collections of Prostiva revenue commence immediately. As a result of the Company's history of operating losses and negative cash flows from operations, the licensing fee and transaction expenses related to the Prostiva acquisition, and the uncertainty regarding the Company's ability to obtain additional capital, there is substantial doubt about our ability to continue as a going concern. The Company's cash and cash equivalents may not be sufficient to sustain day-to-day operations for the next 12 months and the Company's ability to continue as a going concern is dependent upon improving its liquidity. While its primary goal is to generate capital through cash flow from operations, the Company is also pursuing financing alternatives. The Company intends to seek additional financing by incurring indebtedness or from an offering of its equity securities or both. There can be no assurance that the Company will be able to raise additional capital through a debt or equity financing. If the Company does obtain such financing, there can be no assurance that additional financing will be obtained in an amount that is sufficient, in a timely manner, or on terms and conditions acceptable to the Company or its shareholders. If the Company is unable to obtain additional capital in an amount sufficient to meet its needs and in a timely manner, the Company may be required to further reduce expenses and curtail capital expenditures, sell assets, or suspend or discontinue operations. The financial statements for the period ended September 30, 2011 do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.

Liquidity

3 Months Ended

Sep. 30, 2011

3. Liquidity

The Company incurred net losses of $1,384,000 for the three-month period ended September 30, 2011 and $3,733,000 and $2,169,000 in the fiscal years ended June 30, 2011 and 2010, respectively. In addition, the Company has accumulated aggregate net losses from the inception of business through September 30, 2011 of $111,415,000.

During the first quarter of fiscal 2012, the Company entered into a license agreement with Medtronic for the Prostiva RF Therapy System. The Company paid Medtronic $500,000 on September 6, 2011 for half of the $1,000,000 initial license fee, the remainder due on the anniversary of this date. Primarily due to this licensing payment, transaction related expenses, the net loss incurred in the current business and one-time annual operating expenses such as insurance premiums, the Company's cash and cash equivalents balance decreased to approximately $1.6 million as of September 30, 2011. The amount of decrease in our cash balance in the first quarter of fiscal year 2012 is not expected to continue throughout the remainder of the fiscal year. The cash outflows in the first quarter related to annual operating expenses and the licensing fee will not occur again in fiscal year 2012. In addition, as part of the licensing agreement, payments for Prostiva products and royalties are deferred into the next fiscal year while collections of Prostiva revenue commence immediately.

As a result of the Company's history of operating losses and negative cash flows from operations, the licensing fee and transaction expenses related to the Prostiva acquisition, and the uncertainty regarding the Company's ability to obtain additional capital, there is substantial doubt about our ability to continue as a going concern. The Company's cash and cash equivalents may not be sufficient to sustain day-to-day operations for the next 12 months and the Company's ability to continue as a going concern is dependent upon improving its liquidity. While its primary goal is to generate capital through cash flow from operations, the Company is also pursuing financing alternatives. The Company intends to seek additional financing by incurring indebtedness or from an offering of its equity securities or both.

There can be no assurance that the Company will be able to raise additional capital through a debt or equity financing. If the Company does obtain such financing, there can be no assurance that additional financing will be obtained in an amount that is sufficient, in a timely manner, or on terms and conditions acceptable to the Company or its shareholders. If the Company is unable to obtain additional capital in an amount sufficient to meet its needs and in a timely manner, the Company may be required to further reduce expenses and curtail capital expenditures, sell assets, or suspend or discontinue operations.

The financial statements for the period ended September 30, 2011 do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.