MetaMorphix: accumulated deficit $185.1 million through June 30, seeking funding

Charlotte, N.C., Oct. 3 - MetaMorphix, Inc. said its current assets will not be sufficient to fund operations in 2006 and the company is seeking more funding, according to a 10QSB filing Tuesday with the Securities and Exchange Commission.

For the second quarter ended June 30, MetaMorphix sustained operating losses and negative cash flows from operations and said it expects its losses to continue. As of June 30, the company reported a working capital deficit of $25.24 million and an accumulated deficit of $185.08 million.

The company, which develops genetic markers in Beltsville, Md., repeated its warning from previous financial statements that there is substantial doubt about the company's ability to continue as a going concern.

In June 2005, the company's board of directors authorized management to seek financings through the issuance of a new private placement of promissory notes.

But while the company said it is working with an investment banker to secure a note offering with terms acceptable to the company, MetaMorphix said that to date no final offering has been completed.

"While we anticipate that the proceeds from additional financings will be sufficient to fund our operations until we can generate positive cash flow from operations, they may be insufficient," the company said in its financial statement.

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