3.	Capital Availability

We incurred net losses of $9,385,000 and $31,612,000 for the three and nine months ended September 30, 2014 and $5,258,000 and $16,137,000 for the three and nine months ended September 30, 2013, respectively. We have an accumulated deficit of $332,517,000 as of September 30, 2014. Additionally, we have used net cash of $25,374,000 and $25,064,000 to fund our operating activities for the nine months ended September 30, 2014 and 2013, respectively. To date, these operating losses have been funded primarily from outside sources of invested capital and gross profits. On October 8, 2014, we entered into a Securities Purchase Agreement with certain institutional investors pursuant to which the Company raised net proceeds of approximately $12,500,000 through the sale of units consisting of Series A 3.6% convertible preferred stock and warrants to purchase common stock.

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.

We believe our plans to raise additional cash from outside sources coupled with our cost reduction initiatives recently implemented and, if necessary, further cost containment efforts are sufficient to allow us to continue operations for the next twelve months. This includes minimum liquidity requirements of the Loan and Security Agreement, entered into on June 28, 2013 (as amended, the "Loan Agreement"), with Oxford Finance LLC and Silicon Valley Bank (the "Lenders") which requires the Company to make principal and interest payments of $1.0 million per month beginning in April 2015 and to maintain at least three months of cash on hand to avoid an event of default under the Loan Agreement. Our financing plans include pursuing additional cash through strategic corporate partnerships and future sales of equity, as well as our gross profits. While we have an established history of raising capital through these platforms, and we are currently involved in negotiations with multiple parties, there is no guarantee that adequate funds will be available when needed from additional debt or equity financing, development and commercialization partnerships, increased results of operations, or from other sources, or on terms acceptable to us. If our efforts to obtain sufficient additional funds are not successful, we would be required to delay, scale back, or eliminate some or all of our research or product development, manufacturing operations, administrative operations, including our employee base, and clinical or regulatory activities, which could negatively affect our ability to achieve certain corporate goals.

The Company continues to seek additional capital through product revenues, strategic transactions, including extension opportunities under the awarded U.S. Department of Health and Human Service's Biomedical Advanced Research and Development Authority ("BARDA") contract, and from other financing alternatives.