Quarterly report pursuant to Section 13 or 15(d)

2. Liquidity and Financial Condition

2. Liquidity and Financial Condition
6 Months Ended
Sep. 30, 2016
Liquidity And Financial Condition  
Liquidity and Financial Condition

The Company reported a net loss of $4,517,000 for the six months ended September 30, 2016. At September 30, 2016 and March 31, 2016, the Company’s accumulated deficit amounted to $156,892,000 and $152,375,000, respectively. The Company had working capital of $5,240,000 and $9,337,000 as of September 30, 2016 and March 31, 2016, respectively. The Company expects to continue incurring losses for the foreseeable future and may need to raise additional capital to pursue its product development initiatives, penetrate markets for the sale of its products and continue as a going concern.


On October 27, 2016, the Company, along with its Mexican subsidiary and manufacturer Oculus Technologies of Mexico, S.A. de C.V., closed on an asset purchase agreement with Invekra, S.A.P.I de C.V., an affiliate of Laboratorios Sanfer S.A. de C.V., for the sale of certain of its Latin America assets. Specifically, the Company agreed to sell certain patents, patent applications, trademarks, and manufacturing equipment for Mexico, the Caribbean and South America, excluding the sale of dermatology products in Brazil.


The aggregate purchase price that Invekra will pay for the assets is $22,000,000, of which $18,000,000 was paid upon closing, $1,500,000 will be held in escrow until completion of its obligations to deliver certain equipment and technology, and $2,500,000 will be paid in Mexican currency in quarterly installments over a period of ten years from closing as consideration for the provision of certain services and providing technical assistance, calculated as three per cent on net sales of certain products in Latin America, excluding Mexico. Because the $2,500,000 is to be paid in foreign currency, we may receive more or less than $2,500,000 due to currency fluctuations (See Subsequent Events Note 11).


The Company currently anticipates that its cash and cash equivalents, including the proceeds from the sale to Invekra, will be sufficient to meet its working capital requirements to continue its sales and marketing and research and development efforts for at least 12 months from the date of filing this quarterly report.