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Note 12 - Liquidity and Capital Resources
6 Months Ended
Jun. 30, 2011
Liquidity And Capital Resources
Note 12.  Liquidity and Capital Resources

For the six months ended June 30, 2011, the Company incurred a net loss of $1,334,609. At June 30, 2011, the Company had $2,660,333 in cash and cash equivalents. For the six months ended June 30, 2011, cash used in operations was $1,360,652 and cash used in investing activities was $23,324, consisting of payments for website development costs and purchases of capital assets.

Based on the current status of the Company’s operating and product commercialization development plans, the Company estimates that its existing cash and cash equivalents will be sufficient to fund its operations, continue with work towards its prescription (Rx) product development and support the continued expansion of its consumer program through the remainder of 2011. The Company will need substantial additional capital in order to maintain the current level of operations, continue commercialization of its technology and advance its pharmaceutical programs beyond 2011. Accordingly, the Company will need to raise additional funding, which may include debt and/or equity financing. However, there is no assurance that additional funding will be available on favorable terms, if at all. If the Company is unable to obtain the necessary additional funding, the Company may not be able to satisfy its existing obligations or may be required to severely reduce the scope of its operations, which would significantly impede its ability to proceed with current operational plans and could lead to the discontinuation of its business.

The amount of capital the Company will need in the future will depend on many factors, including the amount of revenue generated by the Company, capital expenditures and hiring plans to accommodate future growth, research and development plans, future demand for the Company’s products and technology, and general economic conditions.