3. Capital Availability

We incurred net losses of $5,138,000 and $17,209,000 for the three and six months ended June 30, 2011 and $5,377,000 and $7,827,000 for the three and six months ended June 30, 2010, respectively. We have an accumulated deficit of $227,207,000 as of June 30, 2011. Additionally, we have used net cash of $19,532,000 and $11,901,000 to fund our operating activities for the six months ended June 30, 2011 and 2010, respectively. To date these operating losses have been funded primarily from outside sources of invested or borrowed capital.

Management recognizes the need to generate positive cash flows in future periods and/or to obtain additional capital from various sources. In the continued absence of positive cash flows from operations, no assurance can be given that we can generate sufficient revenue to cover operating costs or that additional financing will be available to us and, if available, on terms acceptable to us in the future.

During 2011 and 2010, we expanded our commercialization activities while simultaneously pursuing available financing sources to support operations and growth. We have had, and we may continue to have, an ongoing need to raise additional cash from outside sources to fund our operations. If we cannot do so when required, we would need to reduce our research, development, and administrative operations, including reductions of our employee base, in order to offset lack of available funding. We continue to evaluate available financing opportunities as part of our normal course of business. See note 19 for additional information on capital raised subsequent to June 30, 2011.