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Liquidity, Financial Condition and Management's Plans
3 Months Ended
Mar. 31, 2017
Accounting Policies [Abstract]  
Liquidity, Financial Condition and Management's Plans
Liquidity, Financial Condition and Management’s Plans
The Company had a net loss of approximately $2.9 million for the three months ended March 31, 2017 and has an accumulated deficit of approximately $101.2 million at March 31, 2017 from having incurred losses since its inception. The Company has approximately $9.6 million of working capital at March 31, 2017 and used approximately $2.2 million of cash in its operating activities during the three months ended March 31, 2017. The Company has financed its operations principally through issuances of debt and equity securities.



On January 27, 2017, the Company entered into a Common Stock Purchase Agreement (the "2017 Aspire Purchase Agreement") with Aspire Capital Fund, LLC ("Aspire Capital"), which provides that, upon the terms and subject to the conditions and limitations set forth therein, Aspire Capital is committed to purchase up to an aggregate of $17.0 million in value of shares of our Common Stock over the 30-month term of the 2017 Aspire Purchase Agreement. The Company issued Aspire Capital 708,333 shares of Common Stock as commitment shares under the 2017 Aspire Purchase Agreement.
On March 7, 2017, the Company completed the merger with Essentialis. Concurrently, the Company issued 8,333,333 shares of common stock for an investment of $8 million from the completion of the concurrent financing and issued 2,083,333 shares of common stock for an investment of $2 million from Aspire Capital.

The Company expects to continue incurring losses for the foreseeable future and may be required to raise additional capital to pursue its therapeutic product development initiatives and penetrate markets for the sale of its products. The Company has been successful over the last 12 months in raising additional capital including the completed closings pursuant to the 2016 Sabby Purchase Agreement, the 2017 Aspire Purchase Agreement and the concurrent financing associated with the merger of Essentialis. Management believes that the Company will continue to have access to capital resources through possible public or private equity offerings, debt financings, corporate collaborations or other means; however, other than the 2017 Aspire Purchase Agreement, the Company has not secured any commitment for future financing at this time, nor can it provide any assurance that new financing will be available on commercially acceptable terms, if at all. If the Company is unable to secure additional capital, it may be required to curtail its development of new products and take additional measures to reduce costs in order to conserve its cash in amounts sufficient to sustain operations and meet its obligations. These measures could cause significant delays in the Company's efforts complete its therapeutic development program and to commercialize its products, which is critical to the realization of its business plan and the future operations of the Company.

Management believes that the Company has sufficient capital resources, after considering the $10 million of financing that the Company received on March 7, 2017, to sustain operations through at least the next twelve months from the date of this filing.