PositiveID Corp., which carrying a mounting deficit, just issued three notes for a combined $234,500 in order to raise working capital.

The Delray Beach, Florida-based company, which operates through subsidiary MicroFluidic Systems, develops molecular diagnostic systems for bio-threat detection, diagnostic testing and other biological threats. The company developed a product called M-Band (Microfluidic Bio-agent Autonomous Networked Detector), which is a system for the homeland defense industry to detect biological weapons of mass destruction. PositiveID is also developing a product called Firefly Dx, which is a handheld automated pathogen detection system.

PositiveID closed a securities purchase agreement with Blue Citi LLC for a $161,000 note and warrants for 1 million shares of PositiveID company stock. The company also closed a securities purchase agreement with LG Capital Funding LLC for two notes, each worth $36,750.

PositiveID has struggled. The company is using proceeds from the notes for working capital, according to an Oct. 31 filing with the U.S. Securities and Exchange Commission.

As of June 30, the company had a $6.8 million working capital deficiency and accumulated deficit of $128.5 million. The company says that operating losses are the result of research and development expenses, and that it expects losses to continue for at least another 12 months.

Those financial problems have raised substantial doubt about PositiveID's ability to continue as a going concern, or without the threat of liquidation, the company says in an Aug. 14 SEC filing. For PositiveID, staying in business is a matter of being able to raise financing to meet working capital requirements. In 2013, before Aug. 14, the company had already raised $1.4 million from issuing preferred stock and convertible det.

PositiveID had already closed several other notes in order to raise money for operations.

Earlier in October, the company closed an agreement with KBM Worldwide Inc. for a $53,000 note, and JSJ Investment Inc. for a $100,000 note. In September, PositiveID closed agreements with Union Capital LLC and Auctus Private Equity Fund LLC for $100,000 and $54,750 in notes, respectively. Also in September, the company closed a $111,250 note with JMJ Financial.

For the previous edition of Turnaround Tuesday, see Troubled Digital Marketing Group Viggle Raises Cash. For more struggling companies, see Mergers & Acquisitions Distressed Company Watch List

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