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2. Liquidity and Capital Resources
12 Months Ended
Dec. 31, 2012
Liquidity Disclosure [Policy Text Block]

2. LIQUIDITY, CAPITAL RESOURCES AND MANAGEMENT PLANS


The Company has incurred net losses of approximately $9.8 million and $9.1 million in 2012 and 2011, respectively. In addition, the Company had a deficit in equity of approximately $7.7 million at December 31, 2012. Furthermore, the Company’s current forecast for fiscal 2013 projects a significant net loss, and projects a need to raise additional capital to fund its operations in 2013 and beyond. The Company continues to explore strategic alternatives to finance its business plan, including but not limited to, private equity or debt financings or other sources, such as strategic partnerships. The Company is also focusing on increasing sales of its products to generate cash flows to fund its operations.


The Company will need to raise additional capital now and in the future, and such capital may not be available at that time or on favorable terms, if at all. The Company may seek to raise these funds through public or private equity offerings, debt financings, credit facilities, or partnering or other corporate collaborations and licensing arrangements. If adequate funds are not available or are not available on acceptable terms, the Company’s ability to fund its operations, take advantage of opportunities, develop products and technologies, and otherwise respond to competitive pressures could be significantly delayed or limited, and operations may need to downsized or halted.


There can be no assurance that the Company will be successful in its plans described above or in attracting alternative debt or equity financing. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.