and Capital Resources
refers to the liquid financial assets available to fund our business operations and pay for near-term obligations. These liquid
financial assets consist of cash and cash equivalents. At June 30, 2018 we had $12.0 million of cash and equivalents. We had working
capital of $8.0 million as of June 30, 2018 and a working capital deficit of $20.3 million as of December 31, 2017. The increase
in working capital was primarily driven by the warrant exercise in March 2018.
following table summarizes our cash flow by operating, investing and financing activities for the six months ended June 30, 2018
and 2017 (in thousands):
Months Ended June 30,|| |
|Cash flow used in operating
|Cash flow used in investing activities||
|Cash flow provided by (used in) financing
|| ||9,893|| ||
cash used in operating activities. We used approximately $1.5 million and $3.4 million of cash for operating activities during
the six months ended June 30, 2018 and 2017, respectively. The decrease in cash used in operating activities was driven by reduced
operating losses as well as lower use of working capital.
cash used in investing activities. We used approximately $57,000 of cash during the six month period ended June 30, 2018 for
the purchases of equipment, and approximately $4,000 for purchases of equipment for the six month period ended June 30, 2017.
cash provided by (used in) financing activities. We generated approximately $10 million of cash for the six month period ended
June 30, 2018, compared to approximately $81,000 used for the six month period ended June 30, 2017. The cash generated for the
six months ended June 30, 2018 was primarily driven by the warrant exercise in March 2018. The cash used for the six months ended
June 30, 2017 was driven by payments of deferred financing costs.
Company believes the cash on hand at June 30, 2018 will be sufficient to meet its obligations as they become due in the ordinary
course of business for at least 12 months following the date these financial statements are issued. The Company has sustained
operating losses throughout its corporate history and expects that its 2018 expenses will exceed its 2018 gross margin. The Company
expects to continue to incur operating losses and negative cash flows until revenues reach a level sufficient to support ongoing
operations or expense reductions are in place. The Company’s liquidity needs will be largely determined by the success of
clinical adoption within the installed base of Niobe systems as well as by new placements of capital systems.
we can generate significant cash flow from our operations, we expect to continue to fund our operations with cash resources primarily
generated from the proceeds of our past and future public offerings, private sales of our equity securities and working capital,
and equipment financing loans. In the future, we may finance cash needs through the sale of other equity securities or non-core
assets, strategic collaboration agreements, debt financings, or through distribution rights. We cannot assure you that such additional
financing will be available on a timely basis on terms acceptable to us or at all, that we will be able to engage in equity financings
because our common stock is no longer listed on a national securities exchange, or that such financing will not be dilutive to
our stockholders. If adequate funds are not available to us, we could be required to delay development or commercialization of
new products, to license to third parties the rights to commercialize products or technologies that we would otherwise seek to
commercialize ourselves or to reduce the sales, marketing, customer support, or other resources devoted to our products, any of
which could have a material adverse effect on our business, financial condition, and results of operations. In addition, we could
be required to cease operations.
of June 30, 2018, our borrowing facilities were comprised of a revolving line of credit maintained with our primary lender, Silicon
Line of Credit
Company has had a working capital line of credit with its primary lender, Silicon Valley Bank, since 2004. The revolving line
of credit is secured by substantially all of the Company’s assets. The maximum available under the line is $5.0 million
subject to the value of collateralized assets. The Company is required under the revolving line of credit to maintain its primary
operating account and the majority of its cash and investment balances in accounts with its primary lender.