Liquidity (Notes) |
12 Months Ended | ||||
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Dec. 31, 2015 | |||||
| Liquidity [Abstract] | |||||
| Substantial Doubt about Going Concern [Text Block] |
As of December 31, 2015, the Company had cash and cash equivalents of $8.3 million and net accounts receivable of $2.8 million. Historically, the Company has collected approximately 56% of cumulative gross billings from its diagnostics business. As of December 31, 2015, the Company had gross billings outstanding of $15.3 million. In 2015, on a consolidated basis the Company’s net loss from continuing operations before tax was $44.2 million and cash used in operating activities was $19.8 million.
As a result of the sale of the Commercial Services business in December 2015, which generated net cash proceeds of $26.8 million, the Company focused its resources and strategic initiatives on the molecular diagnostics business, which, while still at an early stage of commercial development, has begun to generate growth momentum. As with many companies in a similar stage, sufficient capital is required before achieving profitability.
The Company will most likely require additional capital in 2016 to fund the Company's operations. There is no guarantee that additional capital will be raised that is sufficient to fund the Company's operations in 2016 and beyond, but the Company intends to meet its capital needs by driving revenue growth of our commercial molecular diagnostic tests, streamlining operations, reducing costs, raising capital and/or potentially seeking other financing options and alternatives.
Management can take additional steps to further reduce the Company's future operating expenses as needed. However, the Company cannot provide any assurance that the Company will be able to raise additional capital as needed. The accompanying financial statements have been prepared on a basis that assumes that the Company will continue as a going concern and that contemplates the continuity of operations, the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. If the Company is unsuccessful in executing strategic alternatives for the business to continue operations, when needed, then it may be forced to seek protection under the U.S. Bankruptcy Code, or be forced into liquidation or substantially altering or restructuring its business operations.
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