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, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating activities:
Net loss	$ (74,874)	$ (50,122)	$ (99)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	201	192	199
Stock-based compensation	548	2,934	38
Change in fair value of derivative liabilities	(2,603)	9,916	(5,730)
Deferred income tax	(29,413)	(15,267)	(52)
Loss on return of escrowed shares		1,686	584
Impairment on mortgage note receivable	1,177
Realized gain on sale of marketable securities			(1,359)
Impairment on IPR&D	92,396	38,665
Loss on sale of equipment			6
Changes in operating assets and liabilities:
Accounts receivable	11
Prepaid expenses and other current assets	(76)	(212)	9
Accounts payable and accrued expenses	(2,022)	1,891	(551)
Deposits			(3)
Deferred rent	2
Net cash used in operating activities	(14,655)	(10,317)	(6,012)
Investing activities
Cash acquired in acquisition of Biozone Pharmaceuticals, Inc.			589
Cash acquired in acquisition of RFS Pharma, Inc.			194
Purchase of property and equipment	(51)	(339)	(5)
Proceeds from sale of marketable securities			7,900
Investment in mortgage note receivable			(2,626)
Interest earned on mortgage note receivable	33
Principal payments received on mortgage note receivable	21	77	30
Net cash provided by (used in) investing activities	3	(262)	6,082
Financing activities
Proceeds from exercise of stock options	3	23	116
Proceeds from issuance of common stock and warrants	9,013	15,862	2,750
Net cash provided by financing activities	9,016	15,885	2,866
Net (decrease) increase in cash and cash equivalents	(5,636)	5,306	2,936
Cash and cash equivalents at beginning of period	9,276	3,970	1,034
Cash and cash equivalents at end of period	3,640	9,276	3,970
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Cashless exercise of warrants	35	14,265
Unrealized gain on marketable securities, net of tax			236
Prepaid expenses and other current assets			5
Marketable securities			8,811
Accounts payable and accrued expenses			(410)
Derivative liabilities			(10,475)
Fair value of Series A preferred stock issued in acquisition of RFS Pharma, LLC			178,218
Fair value of stock options issued in acquisition of RFS Pharma, LLC			6,566
In-process research and development			184,966
Goodwill			65,195
Deferred tax liabilities			(65,195)
Prepaid expenses and other current assets			132
Accounts payable and accrued expenses			(532)
Property and equipment			14
Other long term assets			$ 10