Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Operating activities:
Net loss	$ (50,122)	$ (99)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	192	199
Stock-based compensation	2,934	38
Fair value of warrant liabilities in excess of proceeds from financing	0	946
Change in fair value of derivative liabilities	9,916	(5,730)
Deferred income tax	(15,267)	(52)
Loss on return of escrowed shares	1,686	584
Realized gain on sale of marketable securities	0	(1,359)
Impairment on IPR&D	38,665	0
Loss on sale of equipment	0	6
Changes in operating assets and liabilities:
Prepaid expenses and other current assets	(212)	9
Accounts payable and accrued expenses	1,891	(551)
Net cash used in operating activities	(10,317)	(6,009)
Investing activities
Cash acquired in acquisition of Biozone Pharmaceuticals, Inc.	0	589
Cash acquired in acquisition of RFS Pharma, Inc.	0	194
Purchase of property and equipment	(339)	(5)
Long term deposits	0	(3)
Proceeds from sale of marketable securities	0	7,900
Investment in mortgage note receivable	0	(2,626)
Principal payments received on mortgage note receivable	77	30
Net cash provided by (used in) investing activities	(262)	6,079
Financing activities
Proceeds from exercise of stock options	23	116
Proceeds from issuance of common stock and warrants	15,862	2,750
Net cash provided by financing activities	15,885	2,866
Net increase in cash and cash equivalents	5,306	2,936
Cash and cash equivalents, beginning of period	3,970	1,034
Cash and cash equivalents, end of period	9,276	3,970
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Cashless exercise of Warrants	14,265	0
Unrealized gain on marketable securities net of tax	0	236
Prepaid expenses and other current assets	0	5
Marketable securities	0	8,811
Accounts payable and accrued expenses	0	(410)
Derivative liabilities	0	(10,475)
Fair value of Series A preferred stock issued in acquisition of RFS Pharma, LLC	0	178,218
Fair value of stock options issued in acquisition of RFS Pharma, LLC	0	6,566
In-process research and development	0	184,966
Goodwill	0	65,195
Deferred tax liabilities	0	(65,195)
Prepaid expenses and other current assets	0	132
Accounts payable and accrued expenses	0	(532)
Property and equipment	0	14
Other long term assets	$ 0	$ 10