Protagenic Therapeutics Inc. (PTIX)

[soupoftheday]

For periods subsequent to September 30, 2011, the Company expects to continue to incur losses and negative cash flows as it continues to incur expenditures to develop the Kazaa digital music service, acquire subscribers for the Kazaa service, and is not able to reduce other operating expenses and overhead sufficiently to a level in line with its level of revenues. If the Company is unable to increase revenues sufficiently or decrease its expenditures to a sustainable level, its financial position, results of operations, cash flows and liquidity will continue to be materially adversely affected. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

For the nine months ended September 30, 2011, the Company incurred a net loss of $14.2 million, and used $7.8 million of cash in operations.

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