Note 2. Going Concern	6 Months Ended
Jun. 30, 2012
Going Concern Note	Note 2 Going Concern As of June 30, 2012, the Company was in the development stage as it continues to develop its products and intends to transition from the development stage to operational status depending upon the timing and its success in achieving its business development milestones. The Company’s consolidated financial statements are presented on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company has never been profitable and has incurred significant losses and cash flow deficits. For the six months ended June 30, 2012 and 2011, and the period from September 22, 2006 (inception) to June 30, 2012, the Company reported net losses of $15.4 million, $15.5 million, and $155.1 million, respectively, and negative cash flows from operating activities of $8.1 million, $9.6 million, and $93.2 million, respectively. As of June 30, 2012, the Company had an aggregate accumulated deficit of $136.6 million. The Company anticipates that it will continue to report losses and negative cash flows during the remainder of 2012. As a result of these net losses, cash flow deficits, and other factors, there is a substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company’s ability to continue as a going concern is dependent upon generating sufficient cash flows from operations and obtaining additional capital and financing. The Company has been, and continues to be, wholly dependent on funding from its principal stockholder. The Company had unrestricted cash and cash equivalents of $3.3 million as of June 30, 2012; however, if the Company is unable to raise additional funding (including from its principal stockholder), the Company will be unable to continue in business.

Note 2. Going Concern

6 Months Ended

Jun. 30, 2012

Note 2 Going Concern

As of June 30, 2012, the Company was in the development stage as it continues to develop its products and intends to transition from the development stage to operational status depending upon the timing and its success in achieving its business development milestones. The Company’s consolidated financial statements are presented on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business.

The Company has never been profitable and has incurred significant losses and cash flow deficits. For the six months ended June 30, 2012 and 2011, and the period from September 22, 2006 (inception) to June 30, 2012, the Company reported net losses of $15.4 million, $15.5 million, and $155.1 million, respectively, and negative cash flows from operating activities of $8.1 million, $9.6 million, and $93.2 million, respectively. As of June 30, 2012, the Company had an aggregate accumulated deficit of $136.6 million. The Company anticipates that it will continue to report losses and negative cash flows during the remainder of 2012. As a result of these net losses, cash flow deficits, and other factors, there is a substantial doubt about the Company’s ability to continue as a going concern.

The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company’s ability to continue as a going concern is dependent upon generating sufficient cash flows from operations and obtaining additional capital and financing. The Company has been, and continues to be, wholly dependent on funding from its principal stockholder. The Company had unrestricted cash and cash equivalents of $3.3 million as of June 30, 2012; however, if the Company is unable to raise additional funding (including from its principal stockholder), the Company will be unable to continue in business.

Parabel Inc. 10-Q