Note 8:

Subsequent Events

During the second quarter through May 8, 2012, the Company sold approximately 395,000 shares of our common stock under the Sales Agreement for net proceeds of approximately $1.1 million. These issuances triggered an adjustment of the exercise price and number of warrant shares under the Company's outstanding warrants, as a result of which, as of April 23, 2012 the 2007 Warrants are exercisable at $2.65 per share with 1.9 million warrants outstanding and the 2009 Warrants are exercisable at $2.65 with 1.0 million warrants outstanding. The net proceeds will be used for general corporate purposes, including, but not limited to, commercialization of our products, obtaining regulatory approvals, funding of our clinical trials, capital expenditures and working capital. As of May 8, 2012, the Company has approximately $33.6 million remaining under the program, assuming sufficient shares are available to be issued.

On April 5, 2012 the Company announced it had received CE Mark approval for the second generation hemofiltration cartridge of the Company's proprietary Hepatic CHEMOSAT® Delivery System. With the new hemofiltration cartridge, the CHEMOSAT system carries the same broad indication as the previous generation system, permitting physicians to use the product for the percutaneous intra-arterial administration of a chemotherapeutic agent (melphalan hydrochloride) to the liver to any patient who in their opinion may benefit.

On April 20, 2012, the Company entered into a four-year Loan and Security Agreement (the "Credit Agreement") with Silicon Valley Bank ("SVB"), as lender. The Credit Agreement consists of a revolving credit facility in an amount equal to the lesser of $20,000,000 and the Company's Borrowing Base (as defined in the Credit Agreement). In order to draw down on the facility, the Company will need to have at least the greater of (i) $15,000,000 in cash and cash equivalents in its account with SVB plus the amount of all outstanding obligations of the Company owed to SVB and (ii) trailing 3 months Cash Burn (as defined in the Credit Agreement) plus the amount of all outstanding obligations of the Company owed to SVB.

The Company completed an evaluation of the impact of any subsequent events through the date financial statements were issued and determined there were no other subsequent events requiring disclosure in or adjustment to these financial statements.