Quarterly report pursuant to Section 13 or 15(d)

INTERIM FINANCIAL STATEMENTS

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INTERIM FINANCIAL STATEMENTS
6 Months Ended
Jun. 30, 2014
INTERIM FINANCIAL STATEMENTS [Abstract]  
INTERIM FINANCIAL STATEMENTS

INTERIM FINANCIAL STATEMENTS

 

The accompanying financial statements of Venaxis, Inc. (the “Company,”  “we,” or “Venaxis”) have been prepared in accordance with the instructions to quarterly reports on Form 10-Q. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in financial position at June 30, 2014 and for all periods presented have been made. Certain information and footnote data necessary for fair presentation of financial position and results of operations in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted. It is therefore suggested that these financial statements be read in conjunction with the summary of significant accounting policies and notes to financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. The results of operations for the period ended June 30, 2014 are not necessarily an indication of operating results for the full year.

 

Management's plans and basis of presentation:

 

The Company has experienced recurring losses and negative cash flows from operations.  At June 30, 2014, the Company had approximate balances of cash and liquid investments of $29,101,000, working capital of $27,803,000, stockholders' equity of $28,263,000 and an accumulated deficit of $91,921,000. To date, the Company has in large part relied on equity financing to fund its operations.  The Company expects to continue to incur losses from operations for the near-term and these losses could be significant as product development, clinical and regulatory activities, consulting expenses and other product development related expenses are incurred. The Company believes that its current working capital position, including the proceeds of the April 2014 public offering, will be sufficient to meet its estimated cash needs into 2015. If the Company does not obtain United States Food and Drug Administration (“FDA”) clearance of its products, the Company would potentially be required to change the scope of its product development activities, change its strategic focus or cease operations.  The Company continues to explore obtaining additional financing.  The Company is closely monitoring its cash balances, cash needs and expense levels.  

 

Management's strategic plans include the following:

 

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continuing commercialization of the Company's principal product, APPY1;

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monitoring additional capital raising opportunities;

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continuing to explore prospective partnering or licensing opportunities with complementary opportunities and technologies; and

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continuing to monitor and implement cost control initiatives to conserve cash.