Liquidity (Notes) |
9 Months Ended | ||||
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Sep. 30, 2015 | |||||
| Liquidity [Abstract] | |||||
| Substantial Doubt about Going Concern [Text Block] |
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.
As of September 30, 2015, the Company had cash and cash equivalents of $9.0 million, accounts receivable of $12.3 million and unbilled costs and accrued profits on contracts in progress of $5.2 million. Historically, the Interpace Diagnostics' segment has collected approximately 56% of cumulative gross billings.
For the nine months ended September 30, 2015, on a consolidated basis including the Company's outsourced product commercialization and promotion solutions business (the Commercial Services segment), the Company’s net loss was $15.7 million and cash used in operating activities was $13.5 million.
As a result of the proposed sale of the Commercial Services segment, the Company will focus its resources and strategic initiatives on the Interpace Diagnostics segment. The Company's Interpace Diagnostics segment is still at an early stage of commercial development. As with many companies in a similar stage, sufficient capital is required before achieving profitability. The Company will require additional capital in 2016 to fund its operations. There is no guarantee that additional capital will be raised that is sufficient to fund the Company’s operations in 2016.
In addition to continuing its strategic business plan on generating revenue, the Company intends to explore various other alternatives, including strategic partnerships, equity financing, a credit revolver utilizing Interpace Diagnostics accounts receivables, debt or other financing alternatives. Management can also take steps to reduce the Company’s future operating expenses as needed. However, the Company cannot provide any assurance that it will be able to raise additional capital as needed. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of the uncertainty should the Company be unable to raise additional needed capital.
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