XML 16 R8.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Liquidity
12 Months Ended
Dec. 31, 2011
Liquidity Disclosure [Policy Text Block]
2.       Liquidity

The Company’s principal sources of liquidity are cash and cash equivalents of approximately $2,914,000 at December 31, 2011, the $2,500,000 available on the $3,000,000 credit facility detailed below and cash from operations. The Company sustained net losses of $3,007,000 and $3,423,000 for the years ended December 31, 2011 and 2010, respectively, and had working capital of $4,370,000 at December 31, 2011.

The Company’s business operations have been primarily funded over the past three years through private placements of our capital stock.  As described more fully in Notes 6, 8, 9 and 10, we raised an aggregate of $7,213,000 through private placements of equity with accredited investors in 2010 and $5,304,000 in 2009 principally from private equity investors.  In 2010, we also entered into a $3,000,000 line of credit (See Note 6).  As of December 31, 2011 the outstanding balance on the line of credit was $500,000.  The Company may require additional funding and this funding will depend, in part, on the timing and structure of potential business arrangements. If necessary, the Company may continue to seek to raise additional capital through the sale of its equity.  It may be accomplished this via a strategic alliance with a third party. There may also be additional acquisition and growth opportunities that may require external financing.  There can be no assurance that such financing will be available on terms acceptable to the Company, or at all.  We also have the ability to defer certain product development and other programs, if necessary.  We believe that our existing capital resources will be sufficient to support our current business plan beyond March 2013.