Lipid Sciences, in compliance with Nasdaq Marketplace Rule 4350(b)(1)(B), received a going concern qualification from its independent registered public accounting firm, Deloitte & Touche; in addition to reporting losses for the fourth quarter and the fiscal year.
The company reported a larger loss in both the fourth quarter and year, which ended Dec. 31, 2007. Lipid reported that it lost $4.2 million in the fourth quarter, compared with a loss of $2.7 million in the same quarter a year ago. Revenue in the fourth quarter was $4,000, down from revenue of $21,000 in the same quarter of 2006, Lipid reported.
The loss does not represent any change or amendment to the company's financial statements or to its Form 10-K for the fiscal year, which ended Dec. 31, 2007, according to Pleasanton, Calif.-based Lipid. The company said it anticipates that sufficient capital is available to fund its operations, including current development projects, through the first half of 2008.
For 2007, Lipid said it lost $12.8 million on revenue of $306,000, compared to losing $11.2 million on revenue of $59,000.
The Nasdaq rule requires a separate disclosure of receipt of an audit opinion that contains a going concern qualification, which the company disclosed on its annual report on Form 10-K, filed with the Securities and Exchange Commission (SEC) on March 28.
Lipid Sciences is a development-stage biotechnology company, engaged in the research and development of products and processes to treat major medical indications, including lipids or fat components. The company is also working on treatments for atherosclerosis.