Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities:
Net income (loss)	$ (19,165,000)	$ 4,357,000
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation	88,000	107,000
Deferred income taxes	52,000
Stock based compensation	$ 1,311,000	20,000
Fair value of warrant liabilities in excess of proceeds from financing		946,000
Change in fair value of derivative liabilities	$ 11,528,000	(7,744,000)
Realized loss (gain) on marketable securities	$ 1,685,000	(480,000)
Loss on sale of equipment		2,000
Changes in operating assets and liabilities, net of effects of reverse Merger with Biozone Pharmaceuticals, Inc. and the merger with RFS Pharma, LLC:
Prepaid expenses and other current assets	$ (115,000)	(14,000)
Accounts payable and accrued expenses	526,000	(312,000)
Net cash used in operating activities	$ (4,090,000)	(3,118,000)
Investing activities:
Cash acquired in reverse merger with Biozone Pharmaceuticals, Inc.		$ 589,000
Purchase of fixed assets	$ (18,000)
Long term deposits		$ (12,000)
Proceeds from sale of marketable securities		5,400,000
Investment in mortgage note receivable		$ (2,626,000)
Principal payments received on mortgage notes receivable	$ 37,000
Net cash provided by investing activities	19,000	$ 3,351,000
Financing activities
Proceeds from exercise of stock options	20,000	57,000
Proceeds from issuance of common stock and warrants	15,862,000	2,750,000
Net cash provided by financing activities	15,882,000	2,807,000
Net increase in cash and cash equivalents	11,811,000	3,040,000
Cash and cash equivalents at beginning of period	3,970,000	1,034,000
Cash and cash equivalents at end of period	15,781,000	4,074,000
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Unrealized gain (loss) on marketable securities net of tax	(236,000)	$ 1,827,000
Estimated fair value of warrants exchanged for common shares	$ 13,862,000
Assets acquired and liabilities assumed in reverse Merger with Biozone Pharmaceuticals, Inc.
Prepaid expenses and other current assets		$ 3,000
Marketable securities		8,811,000
Accounts payable and accrued expenses		410,000
Derivative liabilities		$ 10,475,000