The Company is engaged in ongoing litigation with CRG, and is currently pursuing recovery of million and other damages. The Company was also engaged in litigation with Platinum-Montaur, an affiliate of Platinum, in which Platinum-Montaur was 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 an 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 is 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. On the Company issued million shares of common stock of Navidea to Dr. Goldberg, million of which were placed in escrow in accordance with the Agreement.  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 (a).

 

The Company is currently engaged in litigation with CRG and Dr. Goldberg.  In addition, the Company has experienced recurring net losses and has used significant cash to fund its operations. The Company has 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 Annual Report on Form -K.