The Company reported a net loss of $2,340,000 and a loss from operations of $2,311,000 for the three months ended June 30, 2015. At June 30, 2015 and March 31, 2015, the Company’s accumulated deficit amounted to $144,553,000 and $142,213,000, respectively. The Company had working capital of $10,534,000 and $7,066,000 as of June 30, 2015 and March 31, 2015, 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.

Pursuant to an At-the-Market Issuance Sales Agreement with MLV & Co. LLC dated April 2, 2014, the Company may issue and sell shares of common stock having an aggregate offering price of up to $9,159,000 from time to time through MLV acting as the Company’s sales agent. During the three months ended June 30, 2015, the Company sold 500,000 shares of common stock for gross proceeds of $907,000 and net proceeds of $879,000 after deducting commissions and other offering expenses. Shares of common stock sold subsequent to June 30, 2015 are disclosed in Note 12.

During the three months ended June 30, 2015, the Company sold the 1,650,000 shares of Ruthigen common stock for proceeds of $4,537,500. Additionally, during the three months ended June 30, 2015, the Company paid a banker a $165,000 a finder fee related to the sale transaction (Note 3).

The Company currently anticipates that its cash and cash equivalents will be sufficient to meet its working capital requirements to continue its sales and marketing and research and development efforts through at least twelve months. However, in order to execute the Company’s long-term Microcyn® product development strategy and to penetrate new and existing markets, the Company may need to raise additional funds through public or private equity offerings, debt financings, corporate collaborations or other means and potentially reduce operating expenditures.

Management believes that the Company has access to capital resources through possible public or private equity offerings, debt financings, corporate collaborations or other means. If the Company is unable to secure additional capital, it may be required to curtail its research and development initiatives and take additional measures to reduce costs in order to conserve its cash.