Note 2 - Going Concern	6 Months Ended
Jun. 30, 2013
Going Concern Note [Abstract]
Going Concern Note	Note 2 Going Concern As of June 30, 2013, the Company is in the development stage as it continues to develop its products and has not yet recognized any significant revenues. The Company intends to transition from the development stage to the commercialization stage 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, 2013 and 2012, and the period from September 22, 2006 (inception) to June 30, 2013, the Company reported net losses of $12.7 million, $15.4 million, and $181.2 million, respectively, and negative cash flows from operating activities of $4.6 million, $8.1 million, and $104.4 million, respectively. As of June 30, 2013, the Company had an aggregate accumulated deficit of $159.5 million. The Company anticipates that it will continue to report losses and negative cash flows during 2013. As a result of these net losses, cash flow deficits, and substantial debt that is due on June 30, 2017, there is 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 principal amount of related party debt obligations as of June 30, 2013 was $87.4 million. The principal balance of notes payable – related party and the $21.9 million of interest payable thereon is due June 30, 2017. The principal amount of unrelated party debt obligations as of June 30, 2013 was $15.2 million. The principal balance of notes payable – unrelated party and the $0.3 million of interest payable thereon is due on January 29, 2018. The Company had cash and cash equivalents (on a consolidated basis) of $10.4 million as of June 30, 2013 and believes it has sufficient working capital to continue its operations through the end of 2013.

Note 2 - Going Concern

6 Months Ended

Jun. 30, 2013

Note 2 Going Concern

As of June 30, 2013, the Company is in the development stage as it continues to develop its products and has not yet recognized any significant revenues. The Company intends to transition from the development stage to the commercialization stage 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, 2013 and 2012, and the period from September 22, 2006 (inception) to June 30, 2013, the Company reported net losses of $12.7 million, $15.4 million, and $181.2 million, respectively, and negative cash flows from operating activities of $4.6 million, $8.1 million, and $104.4 million, respectively. As of June 30, 2013, the Company had an aggregate accumulated deficit of $159.5 million. The Company anticipates that it will continue to report losses and negative cash flows during 2013. As a result of these net losses, cash flow deficits, and substantial debt that is due on June 30, 2017, there is 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 principal amount of related party debt obligations as of June 30, 2013 was $87.4 million. The principal balance of notes payable – related party and the $21.9 million of interest payable thereon is due June 30, 2017. The principal amount of unrelated party debt obligations as of June 30, 2013 was $15.2 million. The principal balance of notes payable – unrelated party and the $0.3 million of interest payable thereon is due on January 29, 2018.

The Company had cash and cash equivalents (on a consolidated basis) of $10.4 million as of June 30, 2013 and believes it has sufficient working capital to continue its operations through the end of 2013.

Parabel Inc. 10-Q