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Theranos lab, a start-up darling of Silicon Valley now worth $9 billion (2014 est.), is currently facing an uphill battle after a slew of controversies is causing a major rethink on the medical viability of its so-called Capillary Tube Nanocontainer (CTN) technology as US health regulators identified a number of serious deficiencies at its lab in Northern California.

Founded by then 19-year old Stanford drop out Elizabeth Holmes back in 2003, the unicorn company (private companies worth $1 billion and above) offered a promising breakthrough in the health sector from the time of its inception.

The deficiencies were revealed after the Centers for Medicare and Medicaid Services discovered some problems after conducting an inspection of its blood-testing facility in Newark, California that could potentially shut the company from Medicare program.

No details were available as of this time but full-blown report of the inspection results are expected to bring the issue to public knowledge.

Despite the news, the company remains confident of its technology citing record-breaking customer volume and referrals from health providers.

"[Theranos] does not have the report from last year's regularly scheduled CMS audit of its California lab...[The company] has continued its ongoing work to build best-in-class systems and engage in partnership with its regulators," said Theranos spokeswoman Brooke Buchanan as quoted by The Wall Street Journal.

Theranos became a disruptive force in healthcare innovation with the development of its prized finger stick technology as a viable alternative to the conventional blood testing method known as venipuncture as mentioned in a report by CNBC.

But the company came under intense scrutiny since last year after a series of accusations question the viability of its flagship CTN technology in blood testing.

Because of the recently announced deficiencies found by US health inspectors, Walgreens Boots Alliance- Theranos' main retail partner- is suspending its plans to expand its nationwide chain of drug and blood-drawing wellness centers as stated in article that appeared in Fortune.