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Nature of Business and Liquidity
3 Months Ended
Apr. 04, 2015
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, catalog of natural product fine chemicals, chemistry and analytical testing services, and product regulatory and safety consulting services.  The Company provides science-based solutions to the nutritional supplement, food and beverage, animal health, cosmetic and pharmaceutical industries.

 

Liquidity:  The Company has incurred a loss from operations of approximately $906,000 and a net loss of approximately $1,026,000 for the three-month period ended April 4, 2015.  As of April 4, 2015, the cash and cash equivalents totaled approximately $3,216,000.

 

The Company has approximately $2,500,000 of available credit on its term loan that can be drawn down by July 31, 2015.  While we anticipate that our current cash and cash equivalents on hand, cash generated from operations and the available credit on the term loan that can be drawn down will be sufficient to meet our projected operating plans through at least May 15, 2016, we may require additional funds, either through additional equity or debt financings or collaborative agreements or from other sources. We have no commitments to obtain such additional financing, and we may not be able to obtain any such additional financing on terms favorable to us, 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 operations.  The inability to raise additional financing may have a material adverse effect on the future performance of the Company.