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Nature of Business and Liquidity
6 Months Ended
Jun. 28, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Note 2. Nature of Business and Liquidity

Nature of business:  The Company is a natural products company that discovers, acquires, develops and commercializes proprietary-based ingredient technologies through its business model that utilizes its wholly owned business units, including ingredient technologies, natural product fine chemicals (known as “phytochemicals”), chemistry and analytical testing services, and product regulatory and safety consulting (as Spherix Consulting).  The Company provides science-based solutions to the nutritional supplement, food and beverage, animal health, cosmetic and pharmaceutical industries.  The Company acquired Spherix Consulting, Inc. on December 3, 2012, which provides scientific and regulatory consulting to the clients in the food, supplement and pharmaceutical industries to manage potential health and regulatory risks.

 

Liquidity:  The Company has incurred a loss from operations of approximately $3,480,000 and a net loss of approximately $3,501,000 for the six-month period ended June 28, 2014.  As of June 28, 2014, cash totaled approximately $1,281,000.  By curtailing certain expenditures, management believes it will be able to support operations of the Company with its current cash and cash from operations through March, 2015.  If the Company determines that it shall require additional financing to further enable it to achieve its long-term strategic objectives, there can be no assurance that such financing will be available on terms favorable to it or at all.  If adequate financing is not available, the Company will further delay, postpone or terminate product and service expansion and curtail certain selling, general and administrative expenses.  The inability to raise additional financing may have a material adverse effect on the future performance of the Company.