Other income/(expense). Other income (expense) amounted to net expense of
Interest expense principally includes interest on the 4.75% debentures, including amortization of discount in the amount of
The change in fair value of derivative liability is related to the embedded conversion feature in the Series B convertible preferred stock. The valuation of the derivative liability is dependent upon a number of factors beyond our control. As such, the amount of other income or expense that we report related to the change in the fair value of the derivative liability is somewhat unpredictable, but may be significant, and will continue to be reported until the holders of the Series B convertible preferred stock have converted their shares into shares of our common stock.
Net Loss. Net loss for the nine months ended
Liquidity and Capital Resources
Since our inception, we have financed our operations primarily through the issuance of debt or equity instruments. The following is a summary of our key liquidity measures at
August 31, 2013 August 31, 2012 Cash and cash equivalents
$ 178,121 $ 304,169Current assets $ 323,538 $ 314,462Current liabilities (1,231,563 ) (1,432,604 ) Working capital deficiency $ (908,025 ) $ (1,118,142 )
We will have to raise additional capital in order to initiate Phase IIb clinical trials for MCT-125, our therapeutic product for the treatment of fatigue in MS patients. Our management is evaluating several sources of financing for our clinical trial program. Additionally, with our strategic shift in focus to therapeutic programs and technologies, we expect our future cash requirements to increase significantly as we advance our therapeutic programs into clinical trials. Until we are successful in raising additional funds, we may have to prioritize our therapeutic programs and delays may be necessary in some of our development programs.