Going concern, page-52

Timber7, I agree with most of your thoughts, but I think Amgen and Orbimed see more value in owning part of an independent company with many customers rather that a company substantially owned by Amgen.

I think Orbimend and Amgen control most of our options to raise capital other than from product sales or upfront payments. I don’t think we could sell a platform, issue additional stock or get a loan from another lender without their cooperation. I also think that when Amgen came on board and Orbimed amended the terms of our loan that all parties knew we would need more capital to reach production, so our current situation is no surprise to anyone. Recently Amgen waived their right to declare a default for failing to file the 10Q. Amgen did not have to amend their right and if they wanted to take over the company they would not have done so. My belief is that the Amgen-Orbimed duo will either loan us additional money, Amgen will accelerate the future money due in January 2017 and 18, amend their agreements to allow us to issue additional stock, sell a platform, seek a new loan or the parties all know that we will receive money from product sales or up fronts. Still very unsettling times.