Aradigm Corporation (the "Company," "our company," "we," "our," or "us") are an emerging specialty pharmaceutical company focused on the development and commercialization of products for the treatment and prevention of severe respiratory diseases. Over the last decade, we invested a large amount of capital to develop drug delivery technologies, particularly the development of a significant amount of expertise in respiratory (pulmonary) drug delivery as incorporated in our lead product candidate that recently completed two Phase 3 clinical trials, Linhaliq inhaled ciprofloxacin, formerly known as Pulmaquin®. The key asset we have focused our efforts on in recent years is our inhaled ciprofloxacin formulations.
We believe that our cash and cash equivalents of approximately $7.1 million as of December 31, 2017, will only be sufficient to fund our operations for the first quarter of 2018. We will not be able to maintain our current level of regulatory and product development activity and there is substantial doubt about our company's ability to continue as a going concern unless we raise additional capital in early 2018. Accordingly, we need to raise additional capital through the issuance of debt or equity securities, royalty financing transactions, strategic transactions or otherwise to enable us to maintain our business operations and to continue development of our lead product candidate Linhaliq and other products, and if we are unable to do so we will need to dispose of our assets or technology or cease operations. The discussion of future prospects of our business below is based on the assumption that we are able to obtain the necessary capital to continue to operate our business as described below.
On February 9, 2018, our Board of Directors approved temporary measures intended to preserve our cash resources until additional sources of capital can be identified. These cash preservation measures include, among other things, the termination of the Amended and Restated Aradigm Corporation Executive Officer Severance Benefit Plan, the reduction of the annual base salary of certain executive officers to 50% of their then current annual base salaries, and the reduction of cash compensation paid to members of the Board for services on the Board or committees of the Board to 50% of the then current cash compensation.