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Nature of Business and Liquidity
3 Months Ended
Apr. 01, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Business and Liquidity

 

Nature of business: The Company is a natural products company that discovers, acquires, develops and commercializes patented and proprietary ingredient technologies that address the dietary supplement, food, beverage, skin care and pharmaceutical markets. With the recent acquisition of Healthspan Research, LLC, the Company now has a direct to consumer (“DTC”) product, which the Company plans to further develop. Along with our ingredients segment that includes our DTC business, the Company also has a core standards and contract services segment, which focuses on natural product fine chemicals (known as “phytochemicals”) and chemistry and analytical testing services, and a regulatory consulting segment. As a result of the Company’s relationships with leading universities and research institutions, the Company is able to discover and license early stage, intellectual property-backed ingredient technologies. The Company then utilizes our business to develop commercially viable proprietary ingredients. The Company’s proprietary ingredient portfolio is backed with clinical and scientific research, as well as extensive intellectual property protection. 

 

Liquidity: The Company has incurred loss from operations of approximately $1,891,000 and net loss of approximately $1,929,000 for the three-month period ended April 1, 2017. As of April 1, 2017, the cash and cash equivalents totaled approximately $1,185,000.

 

Subsequent to the period ended April 1, 2017, the Company entered into a Securities Purchase Agreement with certain purchasers named therein, pursuant to which the Company agreed to sell and issue up to $25.0 million of its Common Stock. The first tranche closed on April 27, 2017 and the Company received $3.5 million.

 

While we anticipate that our current cash, cash equivalents, cash to be generated from operations and the funds from the financing transaction described above will be sufficient to meet our projected operating plans through at least May 12, 2018, we may require additional funds, either through additional equity or debt financings or collaborative agreements or from other sources. We have no commitments to obtain such additional financing, and we may not be able to obtain any such additional financing on terms favorable to us, or at all. If adequate financing is not available, the Company will further delay, postpone or terminate product and service expansion and curtail certain selling, general and administrative operations. The inability to raise additional financing may have a material adverse effect on the future performance of the Company.