NEWARK (KCBS) – Another road block for the Silicon Valley company that said it would revolutionize the blood-testing business.

According to the Wall Street Journal, federal health inspectors have reported finding what they say are “serious deficiencies” at Theranos Incorporated’s Newark lab.

The announcement from inspectors is the latest in a series of setbacks for Theranos in its efforts to roll out what it has promised will be a faster, cheaper way to run routine blood tests.

The finding is impacting the company’s deal with Walgreens to test blood drawn at centers at about 40 stores in California and Arizona.

Walgreens has reportedly suspended plans to expand the program for now.