3.	Capital Availability

We incurred net losses of $7,883,000 and $17,208,000 for the three and six months ended June 30, 2012 and $5,138,000 and $17,209,000 for the three and six months ended June 30, 2011, respectively. We have an accumulated deficit of $259,657,000 as of June 30, 2012. Additionally, we have used net cash of $15,958,000 and $19,532,000 to fund our operating activities for the six months ended June 30, 2012 and 2011, respectively. To date, these operating losses have been funded primarily from outside sources of invested capital.

We believe we have enough cash to fund operations into the first quarter of 2013, which factors in the minimum cash and cash liquidity requirements of the Amended and Restated Loan and Security Agreement with the Lenders, which requires that we maintain at least three months of cash on hand to avoid an event of default under the Loan and Security Agreement. We will continue to seek additional cash through strategic corporate partnership and future sales of equity in addition to our operating profits. We have an established history of raising capital through these platforms, and we are currently involved in negotiations with multiple parties. 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 future 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 market conditions and available financing opportunities as part of our normal course of business.