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Liquidity
12 Months Ended
Dec. 31, 2013
Liquidity [Abstract]  
Liquidity

2. LIQUIDITY

 

We have incurred losses from operations and negative cash flows in every year since inception and have utilized the proceeds from the sales of our equity securities to fund our operations.   For the year ended December 31, 2013, we incurred a net loss of approximately $27.9 million and negative cash flows from operations of approximately $18.9 million.  At December 31, 2013, we had an accumulated deficit of approximately $290.0 million and working capital of approximately $15.2 million.  We expect that revenue for 2014 will not be sufficient to cover our operational expenses for 2014, and that our expected continued losses and use of cash will be funded from available working capital.  In addition, we expect that available working capital will be used for initial production start-up costs, including test programs and production tooling, and for litigation expenses to defend our intellectual property. 

 

Our current capital resources include cash and available for sale securities of approximately $17.2 million at December 31, 2013 and approximately $11.9 million in proceeds from the sale of equity securities in March 2014 (see Note 9)These current capital resources are sufficient to support our liquidity requirements through 2014 and beyond.

 

Our future business plans call for continued investment in sales, marketing, customer support and product development for our technologies and products, as well as investment in continued protection of our intellectual property including prosecution of new patents and defense of existing patents.  Our ability to generate revenues sufficient to offset costs is subject to securing new product and licensing customers for our technologies, successfully supporting our customers in completing their product designs,  and/or successfully protecting or defending our intellectual property. 

 

The long-term continuation of our business plan beyond 2014 is dependent upon the generation of sufficient revenues from our technologies and/or products to offset expenses.  In the event that we do not generate sufficient revenues, we will be required to obtain additional funding through public or private financing and/or reduce operating costs.  Failure to generate sufficient revenues, raise additional capital through debt or equity financings, and/or reduce operating costs could have a material adverse effect on our ability to meet our long-term liquidity needs and achieve our intended long-term business objectives.