As disclosed in the Company’s Annual Report on Form -K and other filings, the Company is engaged in ongoing litigation with Capital Royalty Partners II L.P. (“CRG”), and is currently pursuing recovery of million and other damages. The Company was also engaged in litigation with Platinum-Montaur Life Sciences LLC (“Platinum-Montaur”), an affiliate of Platinum Management (NY) LLC, Platinum Partners Value Arbitrage Fund L.P. (“PPVA”), Platinum Partners Liquid Opportunity Master Fund L.P., Platinum Liquid Opportunity Management (NY) LLC, and Montsant Partners LLC (collectively, “Platinum”), in which Platinum-Montaur is seeking damages of approximately million plus interest.  On the Court granted judgment for Navidea and dismissed all claims in the Platinum-Montaur case. See Notes and

 

Effective Dr. Michael Goldberg resigned as the Chief Executive Officer and President, and from the Board of Directors, of the Company.  In connection with Dr. Goldberg’s resignation, Navidea and Dr. Goldberg entered into a binding agreement (the “Agreement”), with the intent of entering into or more additional definitive agreements (the “Definitive Agreements”), that set forth the terms of the separation from service.  The Agreement provides that Dr. Goldberg will be entitled to receive a severance of payable in equal installments over years, along with a -time payment of approximately which represents the cost of continuing his existing health care coverage for a period of months.  The Agreement also provides that Dr. Goldberg will be entitled to million shares of common stock of Navidea, representing in part payment of accrued bonuses and payment of the balance of the Platinum Note.  See Note

 

On the Company entered into a Stock Purchase Agreement with an investor, pursuant to which the Company issued shares of the Company’s common stock in exchange for million in cash (the “Private Placement”). The Company plans to use the proceeds from the Private Placement for general working capital purposes, including, without limitation, research and development, and other operating expenses. See Note

 

The Company has experienced recent unfavorable court rulings and is currently still engaged in lawsuits with CRG. In addition, the Company has experienced recurring net losses and has used significant cash to fund its operations. Our projected cash burn factors in certain cost cutting initiatives that have been approved by the Board of Directors and implemented, including reductions in the workforce and a reduction in facilities expenses. Additionally, we have considerable discretion over the extent of development project expenditures and have the ability to curtail the related cash flows as needed. The Company also has funds remaining under outstanding grant awards, and continues working to establish new sources of funding, including collaborations, potential equity investments, and additional grant funding that can augment the balance sheet. However, based on our current working capital and our projected cash burn, and without definitive agreements in place for additional funding, management believes that there is substantial doubt about the Company’s ability to continue as a going concern for at least months following the issuance of this Quarterly Report on Form -Q.