3.	Capital Availability

We incurred net losses of $9,325,000 and $12,072,000 for the three months ended March 31, 2012 and 2011, respectively. We have an accumulated deficit of $251,774,000 as of March 31, 2012. Additionally, we have used net cash of $7,714,000 and $10,564,000 to fund our operating activities for the three months ended March 31, 2012 and 2011, respectively. To date, these operating losses have been funded primarily from outside sources of invested 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, we expanded our commercialization activities while simultaneously pursuing available financing sources to support operations and growth. We have had, and we will likely continue to have, an ongoing need to raise additional cash from outside sources to fund our operations for remainder of 2012 and beyond. 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.