Liquidity and Capital Resources

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Liquidity and Capital Resources

Liquidity and Capital Resources

As of December 31, 2019, the Company had approximate balances of $11.8 million of cash and cash equivalents, $14.3 million of investments available-for-sale, working capital of $24.5 million and an accumulated deficit of $306.5 million. Net cash used in operating activities for the year ended December 31, 2019 was approximately $27.3 million. The Company evaluated the Company’s ability to continue as going concern for at least the next 12 months from the filing of this report.

On February 4, 2020, and February 19, 2020, the Company raised capital in the amount of $8 million, net of estimated issuance costs. On March 16, 2020, the Company closed a debt financing transaction with net proceeds at closing of approximately $21 million, net of estimated fees and expenses (See Note 18 for further detail).

Based on the currently available working capital, capital raise and debt financing noted above, management believes the Company currently has sufficient funds to meet its operating requirements for at least the next twelve months from the date of the filing of this report.

The Company will require additional capital to sustain its operations and make the investments it needs to execute upon its longer-term business plan, including the commercialization of Dialysate Triferic and I.V. Triferic, if approved, and executing plans for enhancing its medical capabilities and generating additional data for Triferic. If the Company is unable to generate sufficient revenue from its existing long-term business plan, the Company will need to obtain additional equity or debt financing. If the Company attempts to obtain additional debt or equity financing, the Company cannot assume that such financing will be available on favorable terms, if at all.