In case anybody didn't have a chance to review the latest 10-Q, below is a cut and paste concerning current cash flow and possible dilution.
Liquidity and Capital Resources Our cash and cash equivalents were $4,900,285 at March 31, 2012, compared with $7,705,773 at December 31, 2011. The decrease of approximately $2.8 million was due primarily to no sales of common stock as well as no exercises of warrants and stock options and approximately $1.4 million less cash used in operating activities. By managing variable cash expenses due to minimal fixed costs, we believe our cash and cash equivalents on hand at March 31, 2012 will be sufficient to meet our current and planned operating needs until well into 2013 without consideration being given to additional cash inflows that might occur from the exercise of existing warrants or future sales of equity securities, although we may, in our sole discretion, direct Lincoln Park Capital Fund, LLC (the "Fund") to purchase up to an additional $29,950,000 of our common stock per an existing agreement with the Fund. We are seeking to improve our cash flow through both the licensure of PH-10 on the basis of our Phase 2 atopic dermatitis and psoriasis results, and the majority stake asset sale and licensure of our OTC products as well as other non-core assets. However, we cannot assure you that we will be successful in either licensing PH-10 or selling a majority stake of the OTC and other non-core assets via a spin-out transaction and licensing our existing non-core products. Moreover, even if we are successful in improving our current cash flow position, we nonetheless plan to seek additional funds to meet our long-term requirements in 2013 and beyond. We anticipate that these funds will otherwise come from the proceeds of private placements, the exercise of existing warrants outstanding, or public offerings of debt or equity securities. While we believe that we have a reasonable basis for our expectation that we will be able to raise additional funds, we cannot assure you that we will be able to complete additional financing in a timely manner. In addition, any such financing may result in significant dilution to shareholders.
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