Quarterly report pursuant to Section 13 or 15(d)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)
 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Operating activities:    
Net income (loss) $ (19,673,000) $ 1,808,000
Adjustments to reconcile net income (loss) to net cash used in operating activities:    
Depreciation 133,000 $ 154,000
Deferred income taxes 52,000
Stock based compensation $ 2,049,000 $ 25,000
Fair value of warrant liabilities in excess of proceeds from financing 946,000
Change in fair value of derivative liabilities $ 8,494,000 (6,952,000)
Loss on return of escrowed shares 584,000
Realized loss (gain) on marketable securities $ 1,686,000 (480,000)
Loss on sale of equipment 6,000
Interest receivable (16,000)
Changes in operating assets and liabilities, net of effects of reverse Merger with BiozonePharmaceuticals, Inc. and the merger with RFS Pharma, LLC:    
Prepaid expenses and other current assets $ (380,000) 26,000
Accounts payable and accrued expenses 362,000 (358,000)
Net cash used in operating activities $ (7,277,000) (4,257,000)
Investing activities:    
Cash acquired in reverse merger with Biozone Pharmaceuticals, Inc. 589,000
Purchase of fixed assets $ (217,000) (4,000)
Long term deposits (3,000)
Proceeds from sale of marketable securities 5,400,000
Investment in mortgage note receivable (2,626,000)
Principal payments received on mortgage notes receivable $ 55,000 8,000
Net cash (used in) provided by investing activities (162,000) 3,364,000
Financing activities    
Proceeds from exercise of stock options 20,000 115,000
Proceeds from issuance of common stock and warrants 15,862,000 2,750,000
Net cash provided by financing activities 15,882,000 2,865,000
Net increase in cash and cash equivalents 8,443,000 1,972,000
Cash and cash equivalents at beginning of period 3,970,000 1,034,000
Cash and cash equivalents at end of period $ 12,413,000 $ 3,006,000