FOXBORO - One of the brightest stars in Massachusetts' biotechnology industry could be threatened with bankruptcy if it cannot generate cash to continue operations beyond this fall.

Foxboro-based Cyberkinetics Neurotechnology reported that it has only enough cash on hand to keep going into October and may be forced to cease operations if it is unable to get an infusion of capital through FDA approval of its Andara device aimed at treating spinal cord injuries.

Cyberkinetics, formed in 2001, has been in the news for its groundbreaking research in developing the computerized Brain Gate interface, which allows quadriplegics to control various devices through brain waves.

With additional development, the device might one day allow the handicapped to regain control of paralyzed limbs.

Cyberkinetics is also attempting to commercialize its Andara technology, which has been shown to be helpful in restoring certain functions lost as a result of spinal cord injuries. The company has yet to receive government approval to market the device under a humanitarian exemption. According to a quarterly report filed by the company with the Securities and Exchange Commission, the company has only enough cash remaining to meet its projected operating expenses into October.

The firm is due to repay a $597,000 loan to General Electric Capital Corporation on Oct. 31.

In order to continue beyond October, the statement said, the company is actively seeking to raise capital through private equity or debt financing.

It is also exploring the sale of "intangible assets" related to its neural interface business, as well as seeking strategic partners and reducing the size of its workforce.

As of June, the company had 25 employees.

If the company is unable to secure additional funds by the end of October, the statement said, the company may be forced to halt operations or seek bankruptcy protection.

One development that could help the company would be approval by the Food and Drug Administration of a humanitarian device exemption that would allow it to market Andara. The approval would also trigger a payment of $1.25 million from technology parnter NeuroMetrix.

Cyberkinetics Neurotechnology did not return phone calls from a Sun Chronicle reporter.

The bankruptcy warning follows the abrupt shutdown earlier this summer of Spherics Pharmaceuticals, which made compounds to aid in the delivery of medicines. The company, which had received a $2.5 million state loan to relocate to the Cabot Business Park from Rhode Island, auctioned its plant equipment and assigned its patents and other intellectual property to be sold.