For the three months ended June 30, 2010, general and administrative expenses decreased $214,000, as compared to the three months ended June 30, 2009. The decrease resulted primarily from the absence of certain severance costs incurred in 2009 related to the departure of two executive officers in 2009.  For the six months ended June 30, 2010, general and administrative expenses increased $98,000 as compared to the six months ended June 30, 2009.  The increase is primarily due to higher personnel costs, mainly for senior management and consultants.

AssetsThe company ended the second quarter with approximately $3.6 million in total assets, including $1.5 million in cash and cash equivalents.  This does not include the funds that the company raised from the sale of common stock and warrants in July 2010 of $7.2 million ($6.8 million after closing costs).  The company ended the first quarter 2010 with $4.9 million in total assets, including cash of $3.6 million, and working capital of $2.1 million.