Management's Plans as to Continuing as a Going Concern

3 Months Ended

Mar. 31, 2012

Management's Plans as to Continuing as a Going Concern

Management's Plans as to Continuing as a Going Concern

2. Management’s Plans as to Continuing as a Going Concern

The accompanying financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.  Since inception, the Company has incurred, and continues to incur, significant losses from operations.

As described more fully in Note 7, the Company raised $50.9 million ($47.6 million net of expenses and deferred financing costs), through the sale of common stock in connection with its Initial Public Offering (the “IPO”) and the exercise by the underwriters of their over-allotment option. The Company’s current operating assumptions, which reflect management’s best estimate of future revenue and operating expenses, indicate that current cash on hand, including the proceeds from the sale of common stock in May 2012, should be sufficient to fund operations as currently planned into the second quarter of 2013. As a result, the Company envisions that it will need to raise additional capital prior to this time so as to be able to continue its business operations as currently conducted and fund deficits in operating cash flows.

Although the Company is seeking to raise additional capital, there can be no assurance that any financing will be available to the Company at any given time or available on favorable terms. The type, timing and terms of financing selected by the Company will be dependent upon the Company’s cash needs, the availability of financing sources and the prevailing conditions in the financial markets.