Liquidity and Capital Resources
Total assets at December 31, 2012 were $6.08 million, compared to $6.35 at December 31, 2012. The decrease in the total assets is primarily related to the long term customer contracts and relationships which decreased by $0.63 million while current assets increased by $0.62. The total liabilities at December 31, 2013 were $6.4 million consisting primarily of Promissory Notes, Accounts Payable and Deferred Revenue $1.41 million, $0.59 million and $2.61 million respectively. At December 31, 2012, total liabilities were $6.35 million consisting primarily of Promissory Notes, Accounts Payable and Deferred Revenue $1.80 million, $0.54 million and $2.34 million respectively. Total liabilities increased by $0.61 million due to an increase in deferred revenue by $0.62 million. The net impact of these changes resulted in total liabilities exceeding total assets by $0.37 million for the period ending December 31, 2013.
At December 31, 2013, the company had $0.71 million in cash, an increase by $0.32 million or 80% from the prior comparative period of 2012. The Company currently collects cash receipts from operations through Cord and its subsidiary Bio. Cash flows from operations are currently sufficient to fund operations as net cash used provided by operating activities for the year ended December 31, 2013, increased $0.41 million or 509% from the prior comparative period of 2012, and resulted in Company operations generating $0.50 of cash for the year ending 2013. During the last 12 months of 2013 there was no increase in notes payable for purposes of working capital or investment in affiliate companies. As a result, net cash used in investing activities decreased by $0.26 million and net cash provided by financing activities decreased from $0.43 million for the year ended December 31, 2013 to $0.00 million for the year ended 2013.
Since inception, the Company has financed cash flow requirements through the issuance of common stock and warrants for cash, services and loans. Over the past twelve months, the Company has reduced operating expenses, ended investment in its unconsolidated affiliates, and received no additional funding from outside sources for working capital. The Company plans to continue to operate on its cash flows from operations by aligning its expenses with its revenues. If cash flows from operations are significantly less than projected, then the company would need to either cut back on its budgeted spending, look to outside sources for additional funding or a combination of the two. The Company currently does not have any financing agreements in place for additional funding. If the Company is unable to access sufficient funds when needed, obtain additional external funding or generate sufficient revenue from the sale of its products, the Company could be forced to curtail or possibly cease operations.
