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Liquidity and Continued Operations
6 Months Ended
Jun. 30, 2012
LIQUIDITY AND CONTINUED OPERATIONS [Abstract]  
Liquidity and Continued Operations
LIQUIDITY AND CONTINUED OPERATIONS
As of June 30, 2012, the Company had $13.4 million in cash and investments and working capital of $13.6 million. An additional $0.5 million in cash is restricted for future payments on equipment. During the quarter ended March 31, 2012, the Company sold 1.6 million shares of common stock under its At-The-Market facility for aggregate proceeds of $1.2 million. There were no share sales during the quarter ended June 30, 2012. As discussed in Note 2, the Company is in the development stage and is currently incurring significant losses from operations as it works toward commercialization. The Company made cash payments of $4.3 million in the six months ended June 30, 2012 for property, plant and equipment. The Company has remaining obligations for equipment purchases in the amount of $1.1 million, of which $0.3 million is recorded in “Accrued property, plant and equipment”.
The Company has commenced limited production at its manufacturing facility. The Company does not expect that sales revenue and cash flows will be sufficient to support operations and cash requirements until it has fully implemented its new strategy. Changes in the level of expected operating losses, the timing of planned capital expenditures or other factors may negatively impact cash flows and reduce current cash and investments faster than anticipated. The Company expects the current cash balance to be sufficient to cover planned capital and operational expenditures into the first quarter of 2013 based on currently known factors and limited projected revenues, absent new cost reduction initiatives. The Company will need to raise additional capital in the future. There is no assurance that the Company will be able to raise additional capital on acceptable terms or at all.
On April 11, 2012, the Company received notice from The NASDAQ Stock Market (“Nasdaq”) stating that because the Company had not regained compliance with the $1.00 minimum bid price requirement for continued listing, the Company's common stock (listed on The Nasdaq Global Market) would be subject to delisting. The Company presented its plan to regain compliance before a Nasdaq Hearings Panel in May 2012. As a result of this hearing, the Company was granted a stay on any delisting action until October 8, 2012. Although the Company's stock recently traded above $1.00 per share, it may if ultimately necessary, seek shareholder approval to implement a reverse split to remain in compliance with the $1.00 bid price requirement prior to October 8, 2012.