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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2013	Mar. 27, 2014	Jun. 28, 2013
Document And Entity Information
Entity Registrant Name	Imprimis Pharmaceuticals, Inc.
Entity Central Index Key	0001360214
Document Type	10-K
Document Period End Date	Dec. 31, 2013
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Voluntary Filers	No
Entity Well-KnownSeasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 57,000,000
Entity Common Stock, Shares Outstanding		9,085,715
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2013

Consolidated Balance Sheets - USD ($)	Dec. 31, 2013	Dec. 31, 2012
Current assets
Cash and cash equivalents	$ 15,579,309	$ 10,035,615
Restricted short-term investment	50,097
Prepaid expenses and other current assets	105,067	61,552
Deferred offering costs		596,281
Total current assets	15,734,473	10,693,448
Furniture and equipment, net	26,892	12,548
TOTAL ASSETS	15,761,365	10,705,996
Current liabilities
Accounts payable and accrued expenses	311,924	691,168
Accrued payroll and related liabilities	338,703	18,391
Total current liabilities	650,627	709,559
Commitments and contingencies
STOCKHOLDERS' EQUITY
Common stock, $0.001 par value, 395,000,000 shares authorized, 8,970,364 and 6,772,066 shares issued and outstanding at December 31, 2013 and December 31, 2012, respectively	8,970	6,772
Additional paid-in capital	46,849,160	34,093,933
Deficit accumulated during the development stage	(31,747,392)	(24,104,268)
TOTAL STOCKHOLDERS' EQUITY	15,110,738	9,996,437
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 15,761,365	$ 10,705,996

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized shares	395,000,000	395,000,000
Common stock, issued shares	8,970,364	6,772,066
Common stock, outstanding shares	8,970,364	6,772,066

Consolidated Statements of Operations - USD ($)	12 Months Ended		185 Months Ended
Consolidated Statements of Operations - USD ($)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013
Revenues:
License revenues	$ 10,000	$ 100,000	$ 110,000
Operating Expenses:
Selling, general and administrative	6,080,797	2,980,374	18,634,498
Research and development	1,616,082	1,298,503	10,734,843
Loss from operations	(7,686,879)	(4,178,877)	(29,259,341)
Other income (expense):
Interest expense		(24,658)	(1,730,892)
Interest income	43,755	15,410	186,746
Loss on extinguishment of debt		(1,195,410)	(1,195,410)
Gain on settlement			375,000
Gain on forgiveness of liabilities			176,505
Total other income (expense), net	43,755	(1,204,658)	(2,188,051)
Net loss	(7,643,124)	(5,383,535)	(31,447,392)
Deemed dividend to preferred stockholders		(200,000)	(300,000)
Net loss attributable to common stockholders	$ (7,643,124)	$ (5,583,535)	$ (31,747,392)
Net loss attributable to common stockholders per share of common stock, basic and diluted:	$ (0.88)	$ (1.24)
Weighted average number of shares of common stock outstanding, basic and diluted	8,656,822	4,493,535

Consolidated Statements of Stockholders' Equity - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Deficit Accumulated During The Development Stage [Member]	Total
Balance at Jun. 23, 1998
Balance, share at Jun. 23, 1998
Estimated fair value of services contributed by stockholders			$ 100,000		$ 100,000
Net loss				$ (100,000)	(100,000)
Balance at Dec. 31, 1998			100,000	(100,000)
Estimated fair value of services contributed by stockholders			200,000		200,000
Net loss				(204,000)	(204,000)
Balance at Dec. 31, 1999			300,000	(304,000)	(4,000)
Estimated fair value of services contributed by stockholders			200,000		200,000
Issuance of common stock at $0.256 per share in May and June 2000		$ 23	5,977		6,000
Issuance of common stock at $0.256 per share in May and June 2000, shares		23,437
Net loss				(213,092)	(213,092)
Balance at Dec. 31, 2000		$ 23	505,977	(517,092)	(11,092)
Balance, share at Dec. 31, 2000		23,437
Estimated fair value of services contributed by stockholders			200,000		200,000
Net loss				(208,420)	(208,420)
Balance at Dec. 31, 2001		$ 23	705,977	(725,512)	(19,512)
Balance, share at Dec. 31, 2001		23,437
Estimated fair value of services contributed by stockholders			200,000		200,000
Net loss				(228,217)	(228,217)
Balance at Dec. 31, 2002		$ 23	905,977	(953,729)	(47,729)
Balance, share at Dec. 31, 2002		23,437
Estimated fair value of services contributed by stockholders			200,000		200,000
Net loss				(207,196)	(207,196)
Balance at Dec. 31, 2003		$ 23	1,105,977	(1,160,925)	(54,925)
Balance, share at Dec. 31, 2003		23,437
Estimated fair value of services contributed by stockholders			400,000		400,000
Net loss				(508,226)	(508,226)
Balance at Dec. 31, 2004		$ 23	1,505,977	(1,669,151)	(163,151)
Balance, share at Dec. 31, 2004		23,437
Estimated fair value of services contributed by stockholders				400,000	400,000
Issuance of common stock at $0.256 per share in May and June 2000, shares		61,718
Capital contributions			14,200		14,200
Issuance of common stock at $0.256 per share in August 2005		$ 61	15,639		15,700
Issuance of common stock at $0.256 per share in August 2005, shares		61,328
Exercise of stock options at $0.256 per share in August 2005		$ 1	99		100
Exercise of stock options at $0.256 per share in August 2005, shares		390
Net loss				(539,622)	(539,622)
Balance at Dec. 31, 2005		$ 85	1,935,915	(2,208,773)	(272,773)
Balance, share at Dec. 31, 2005		85,155
Estimated fair value of services contributed by stockholders			400,000		400,000
Issuance of common stock at $0.256 per share in May and June 2000, shares		9,375
Capital contributions			48,600		48,600
Exercise of stock options at $0.256 per share in June and July 2006		$ 9	2,391		2,400
Exercise of stock options at $0.256 per share in June and July 2006, shares		9,375
Net loss				(584,232)	(584,232)
Balance at Dec. 31, 2006		$ 94	2,386,906	(2,793,005)	(406,005)
Balance, share at Dec. 31, 2006		94,530
Estimated fair value of services contributed by stockholders			175,000		175,000
Issuance of common stock at $0.256 per share in May and June 2000, shares		100,585
Capital contributions			105,907		105,907
Exercise of stock options at $0.256 per share in August 2005, shares		195
Issuance of common stock at $0.256 per share during January and March 2007		$ 100	25,400		25,500
Issuance of common stock at $0.256 per share during January and March 2007, shares		99,609
Exercise of stock options and warrants at $0.256 per share in April and August 2007		$ 1	249		250
Exercise of stock options and warrants at $0.256 per share in April and August 2007		976
Forgiveness of notes payable and interest			241,701		241,701
Issuance of restricted common stock at $80.00 per share in August 2007		$ 5	(5)
Issuance of restricted common stock at $80.00 per share in August 2007, shares		4,882
Issuance of common stock in connection with merger on September 17, 2007		$ 46	(46)
Issuance of common stock in connection with merger on September 17, 2007, shares		46,249
Net proceeds from private placement offering issued at $100,000 per unit in September and October 2007		$ 52	3,837,739		3,837,791
Net proceeds from private placement offering issued at $100,000 per unit in September and October 2007, shares		51,795
Issuance of common stock related to conversion of senior convertible notes payable and accrued interest		$ 38	1,530,139		1,530,177
Issuance of common stock related to conversion of senior convertible notes payable and accrued interest, shares		38,254
Beneficial conversion feature upon conversion of senior convertible notes payable			1,530,177		1,530,177
Issuance of common stock and warrants for consulting services in September 2007 at a value of $80.00 per share for stock transaction and $100,000 per unit for stock and warrant transaction		$ 7	549,993		550,000
Issuance of common stock and warrants for consulting services in September 2007 at a value of $80.00 per share for stock transaction and $100,000 per unit for stock and warrant transaction, shares		6,875
Stock-based compensation			184,522		184,522
Net loss				(4,284,540)	(4,284,540)
Balance at Dec. 31, 2007		$ 343	10,567,682	(7,077,545)	3,490,480
Balance, share at Dec. 31, 2007		343,170
Stock-based compensation				562,442	562,442
Net proceeds from private placement offering issued at $110,000 per unit in May 2008 and final costs of 2007 private placement offering		$ 45	3,941,256		3,941,301
Net proceeds from private placement offering issued at $110,000 per unit in May 2008 and final costs of 2007 private placement offering, shares		45,454
Adjustment and issuance of common stock, warrant and stock options related to consulting services agreement			(117,993)		(117,993)
Adjustment and issuance of common stock, warrant and stock options related to consulting services agreement, shares		(347)
Issuance of restricted stock at $28.00 per share in November 2008		$ 1	(1)
Issuance of restricted stock at $28.00 per share in November 2008, shares		625
Net loss				(3,304,388)	(3,304,388)
Balance at Dec. 31, 2008		$ 389	14,953,386	(10,381,933)	4,571,842
Balance, share at Dec. 31, 2008		388,902
Issuance of common stock at $0.256 per share in May and June 2000					$ 50,356
Issuance of common stock at $0.256 per share in May and June 2000, shares					1,144
Issuance of common stock and stock options related to consulting agreements		$ 1	121,454		$ 121,455
Issuance of common stock and stock options related to consulting agreements, shares		1,144
Exercise of stock options at $39.60 per share August 2009		$ 1	49,499		49,500
Exercise of stock options at $39.60 per share August 2009, shares		1,250
Stock-based compensation			388,050		388,050
Net loss				(4,553,636)	(4,553,636)
Balance at Dec. 31, 2009		$ 391	15,512,389	(14,935,569)	577,211
Balance, share at Dec. 31, 2009		391,296
Issuance of common stock and stock options related to consulting agreements		$ 6	367,894		367,000
Issuance of common stock and stock options related to consulting agreements, shares		5,750
Issuance of restricted stock at $32.00 per share in October 2010		$ 1	(1)
Issuance of restricted stock at $32.00 per share in October 2010, shares		1,250
Stock-based compensation			547,895		547,895
Net loss				(2,531,228)	(2,531,228)
Balance at Dec. 31, 2010		$ 398	16,428,177	(17,466,797)	(1,038,222)
Balance, share at Dec. 31, 2010		398,296
Forfeiture of unvested restricted stock in May 2011			3,332		3,332
Forfeiture of unvested restricted stock in May 2011, shares		(781)
Issuance of Series A Preferred Stock at $10,000 per share in December 2011			100,000		100,000
Issuance of Series A Preferred Stock at $10,000 per share in December 2011, shares	10
Preferred stock beneficial conversion feature			100,000		100,000
Accretion of preferred stock discount				(100,000)	(100,000)
Estimated fair value of stock options granted to former employees in forgiveness of liabilities			11,400		11,400
Stock-based compensation				177,421	177,421
Net loss				(953,936)	(953,936)
Balance at Dec. 31, 2011		$ 398	16,820,330	(18,520,733)	(1,700,005)
Balance, share at Dec. 31, 2011	10	397,515
Capital contributions
Forgiveness of notes payable and interest
Issuance of restricted common stock at $80.00 per share in August 2007					139,444
Issuance of common stock related to conversion of senior convertible notes payable and accrued interest					1,905,137
Accretion of preferred stock discount
Loss from modification and extinguishment of debt			1,245,410		1,245,410
Conversion of convertible note at $0.68 per common share in February 2012		$ 1,836	1,196,854		1,198,690
Conversion of convertible note at $0.68 per common share in February 2012, shares		1,835,830
Round lot adjustment for reverse stock split, February 2012		$ 1	(1)
Round lot adjustment for reverse stock split, February 2012, shares		1,402
Line of Credit conversion in April 2012 into common stock and warrant units at $3.95 per unit		$ 193	762,341		762,534
Line of Credit conversion in April 2012 into common stock and warrant units at $3.95 per unit, shares		193,046
April Private Placement, issuance of common stock and warrant units at $3.95 per unit, net of costs, in April 2012		$ 2,011	7,931,834		7,933,845
April Private Placement, issuance of common stock and warrant units at $3.95 per unit, net of costs, in April 2012, shares		2,011,691
Series A Preferred Stock conversion in June 2012		$ 1,500	(1,500)	(200,000)	(200,000)
Series A Preferred Stock conversion in June 2012, shares	(10)	1,499,700
PCCA Purchase Agreement, sale of common stock at $4.80 per share, net of costs, in August 2012		$ 833	3,981,253		3,982,086
PCCA Purchase Agreement, sale of common stock at $4.80 per share, net of costs, in August 2012, shares		832,682
Exercise of stock options			800		800
Exercise of stock options, shares		200
Issuance of common stock upon vesting of RSUs					139,444
Stock-based compensation			2,156,612		2,156,612
Net loss				$ (5,383,535)	(5,383,535)
Balance at Dec. 31, 2012		$ 6,722	34,093,933	(24,104,268)	9,996,437
Balance, share at Dec. 31, 2012		6,772,066
Capital contributions
Forgiveness of notes payable and interest
Issuance of restricted common stock at $80.00 per share in August 2007					143,553
Issuance of common stock related to conversion of senior convertible notes payable and accrued interest
Issuance of common stock and stock options related to consulting agreements		$ 40	282,957		282,997
Issuance of common stock and stock options related to consulting agreements, shares		40,000
Accretion of preferred stock discount
Loss from modification and extinguishment of debt
Cancelled common stock at $5.25 per share related to reverse stock split, February 2013			(191)		(191)
Cancelled common stock at $5.25 per share related to reverse stock split, February 2013, shares		(35)
Public offering of common stock at $5.25 per share, net of costs of $596,281, in February and March 2013		$ 2,116	9,454,435		9,456,551
Public offering of common stock at $5.25 per share, net of costs of $596,281, in February and March 2013, shares		2,116,000
Cashless exercise of stock options, shares		219
Issuance of common stock upon vesting of RSUs		$ 40	(40)
Issuance of common stock upon vesting of RSUs, shares		40,000
Stock-based compensation		$ 2	3,018,066		3,018,068
Stock-based compensation, shares		2,114
Net loss				(7,643,124)	(7,643,124)
Balance at Dec. 31, 2013		$ 8,970	$ 46,849,160	$ (31,747,392)	$ 15,110,738
Balance, share at Dec. 31, 2013		8,970,364

Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2010	Dec. 31, 2008	Dec. 31, 2007
Statement of Stockholders' Equity [Abstract]
Equity price per share					$ 0.256
Exercise of stock options and warrants price per share					0.256
Issuance of restricted common stock price per share			$ 32.00	$ 28.00	80.00
Issuance share to private placement offering at per unt		$ 3.95		$ 110,000	100,000
Issuance of common stock and warrants for consulting services per share					80
Issuance of common stock and warrants for consulting services per unit					$ 100,000
Conversion of convertible price per share		0.68
Line of credit conversion price per share		3.95
Issuance of common stock for public offering price per share	$ 5.25
Sale of common stock price per share		$ 4.80
Cancelled common stock price per share	$ 5.25
Proceeds from public offering cost	$ 596,281

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended		185 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (7,643,124)	$ (5,383,535)	$ (31,447,392)
Adjustments to reconcile net loss to net cash used in operating activities:
Estimated fair value of contributed services			2,475,000
Gain on forgiveness of liabilities			(176,505)
Amortization of prepaid consulting fees	293,138		1,100,746
Depreciation	5,659	2,944	11,757
Loss on extinguishment of debt		1,195,410	1,195,410
Non-cash interest on notes payable		24,658	1,730,892
Stock-based compensation	2,841,835	2,156,612	7,127,263
Payments made on behalf of Company by related party			254,142
Changes in assets and liabilities:
Prepaid expenses and other current assets	(16,964)	(46,755)	(218,516)
Accounts payable and accrued expenses	(239,800)	231,435	412,032
Accrued payroll and related liabilities	320,312	18,391	425,294
Deferred revenue		(100,000)
NET CASH USED IN OPERATING ACTIVITIES	(4,438,944)	(1,900,840)	(17,109,877)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of restricted short-term investment	(50,000)		(50,000)
Purchases of furniture and equipment	(20,003)	(15,492)	(38,649)
NET CASH USED IN INVESTING ACTIVITIES	(70,003)	(15,492)	(88,649)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments for cancelled common stock	(191)		(191)
Proceeds from issuance of notes payable to a related party		450,000	976,300
Proceeds received in connection with debt modification		50,000	50,000
Proceeds from issuance of preferred stock			100,000
Proceeds from notes payable			2,500,000
Preferred stock deemed dividend paid at conversion		(200,000)	(200,000)
Cash advances from related party			27,537
Repayment of advances from related party			(281,679)
Capital contributions			168,707
Net proceeds from purchase of common stock and exercise of warrants and stock options		800	100,250
Proceeds from issuance of common stock and warrants for cash, net of offering costs	10,052,832	11,504,987	29,336,911
NET CASH PROVIDED BY FINANCING ACTIVITIES	10,052,641	11,805,787	32,777,835
NET CHANGE IN CASH AND CASH EQUIVALENTS	5,543,694	9,889,455	15,579,309
CASH AND CASH EQUIVALENTS, beginning of period	10,035,615	146,160
CASH AND CASH EQUIVALENTS, end of period	15,579,309	10,035,615	15,579,309
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for income taxes	1,600	1,600	13,600
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Issuance of and adjustment to common stock and warrants to consulting firms for prepaid consulting fees	319,786		751,793
Deferred offering costs in connection with equity offering recorded in account payable		185,337
Conversion of related party accounts payable into common stock		56,087	56,087
Conversion of notes payable and accrued interest into common stock		1,905,137	3,435,314
Forgiveness of notes payable and accrued interest to shareholders			241,701
Conversion of advances to notes payable to shareholders			196,300
Accretion of preferred stock discount			100,000
Related party acquisition of Phase 3 liabilities			56,087
Conversion of preferred stock into common stock		1,500	1,500
Reclassification of deferred offering costs to additional paid-in capital in connection with equity offering	596,281		596,281
Issuance of common stock for consulting services previously included in accounts payable and accrued expenses	$ 139,444		$ 13,944

Organization

12 Months Ended

Dec. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

NOTE 1. ORGANIZATION

Imprimis Pharmaceuticals, Inc. (“Imprimis” or the “Company”) is a company focused on meeting unmet patient needs through the development and commercialization of innovative proprietary sterile and topical drug formulations and technologies that are customized for patients. The Company expects to deliver its proprietary formulations to the market through one or more commercialization pathways, including through a network of compounding pharmacies that it seeks to establish by acquisition or commercial relationships and/or, to the extent there is a reasonable development pathway, through traditional marketing and selling channels following U.S. Food and Drug Administration approval of a drug formulation. The Company’s network of innovators includes inventive physicians and pharmacists who understand patient needs in clinical settings. Working collaboratively with inventors, we identify and evaluate intellectual property related to potential drug formulations and technologies, assess the relevant market, and seek to validate the clinical experience of a development candidate outside of the inventor’s medical or pharmacy practice before investing in commercialization activities. The Company has acquired formulations in ophthalmology, wound management and urology that it believes may offer competitive advantages over commercially available formulations, and is actively pursuing additional development opportunities.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

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+ Details

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

On February 28, 2012, the Company changed its name from Transdel Pharmaceuticals, Inc. to Imprimis Pharmaceuticals, Inc. All references to Transdel Pharmaceuticals, Inc. have been changed to Imprimis Pharmaceuticals, Inc. to reflect the Company’s current name. On February 28, 2012, the Company effected a one-for-eight reverse stock split and on February 7, 2013, the Company effected a one-for-five reverse stock split. All share and per share amounts in these consolidated financial statements and notes reflect the effects of these reverse stock splits.

Imprimis has prepared the accompanying consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

Principles of Consolidation

On September 17, 2007, Imprimis entered into an Agreement of Merger and Plan of Reorganization (the “Merger Agreement”) by and among Imprimis, Transdel Pharmaceuticals Holdings, Inc., a privately held Nevada corporation (“Transdel Holdings”), and Trans-Pharma Acquisition Corp., a newly formed, wholly-owned Delaware subsidiary of Imprimis (“Acquisition Sub”). Upon closing of the merger transaction contemplated under the Merger Agreement (the “Merger”), Acquisition Sub merged with and into Transdel Holdings, and Transdel Holdings, as the surviving corporation, became a wholly-owned subsidiary of Imprimis. As a result of the Merger, the former owners of Transdel Holdings became the controlling stockholders of Imprimis. Accordingly, the merger of Transdel Holdings and Imprimis is a reverse merger that has been accounted for as a recapitalization of Transdel Holdings.

Effective on September 17, 2007, and for all reporting periods thereafter, Imprimis’ operating activities, including any prior comparative period, include only those of Transdel Holdings. All references to share and per share amounts in the accompanying consolidated financial statements and notes have been restated to reflect the aforementioned Merger. All significant intercompany accounts and transactions have been eliminated in consolidation.

On June 20, 2011, Transdel Holdings was merged with Imprimis Pharmaceuticals, Inc., at which time Transdel Holdings ceased as a corporation, and Imprimis Pharmaceuticals, Inc. remains as the sole surviving corporation.

Development Stage Enterprise

The Company is a development stage company as defined under Financial Accounting Standards Board (“FASB”) guidance. All losses accumulated since inception have been considered as part of the Company’s development stage activities.

These consolidated financial statements contemplate the realization of assets and the satisfaction of liabilities in the normal course of business. The Company is a development stage enterprise and has incurred recurring operating losses, has had negative operating cash flows and has not recognized any significant revenues since July 24, 1998 (Inception). In addition, the Company has a deficit accumulated during the development stage of approximately $31.7 million at December 31, 2013, and anticipates incurring further losses in the 2014 fiscal year. The Company has not yet generated significant sales revenue and has funded its operating losses to date through debt and equity offerings and borrowings under a prior line of credit. The Company believes that its existing cash and cash equivalents will be sufficient to cover its cash flow requirements for at least the next twelve months.

Research and Development

The Company expenses all costs related to research and development as they are incurred. Research and development expenses consist of expenses incurred in performing research and development activities including salaries and benefits, and other overhead expenses, and costs related to clinical trials, contract services and outsourced contracts.

Intellectual Property

The costs of acquiring intellectual property rights to be used in the research and development process, including licensing fees and milestone payments, are charged to research and development expense as incurred in situations where we have not identified an alternative future use for the acquired rights, and are capitalized in situations where we have identified an alternative future use. No costs associated with acquiring intellectual property rights have been capitalized to date. Costs of maintaining intellectual property rights are expensed as incurred.

Revenue Recognition and Deferred Revenue

The Company will recognize revenues when all of the following criteria have been met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. The Company believes it will not generate significant revenues until the Company is able to commercialize one or more of its compounded formulations, which will require, among other things, effective sales and marketing support.

Product Revenues

Determination of criteria (3) and (4) will be based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments will be provided for in the same period the related sales are recorded. The Company will defer any revenue for which the product has not been delivered or for which services have not been rendered or are subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or services have been rendered or no refund will be required.

License Revenues

License arrangements may consist of non-refundable upfront license fees, data transfer fees, research reimbursement payments, exclusive licensed rights to patented or patent pending compounds, technology access fees, and various performance or sales milestones. These arrangements can be multiple element arrangements.

Non-refundable, up-front fees that are not contingent on any future performance by us, and require no consequential continuing involvement on our part, are recognized as revenue when the license term commences and the licensed data, technology and/or compound is delivered. Such deliverables may include physical quantities of compounds, design of the compounds and structure-activity relationships, the conceptual framework and mechanism of action, and rights to the patents or patents pending for such compounds. We defer recognition of non-refundable upfront fees if we have continuing performance obligations without which the technology, right, product or service conveyed in conjunction with the non-refundable fee has no utility to the licensee that is separate and independent of our performance under the other elements of the arrangement. In addition, if we have required continuing involvement through research and development services that are related to our proprietary know-how and expertise of the delivered technology, or can only be performed by us, then such up-front fees are deferred and recognized over the period of continuing involvement. Guaranteed minimum annual royalties are recognized on a straight-line basis over the applicable term.

During the year ended December 31, 2013, the Company recorded $10,000, in revenues, for non-refundable royalty advances. In January 2013, the Company entered into a license agreement with ResolutionMD, LLC granting ResolutionMD, LLC rights to its Accudel delivery technology to be used for anti-cellulite formulations. Under the license agreement, the Company received $10,000 as a guaranteed minimum royalty amount for fiscal 2013 and, if applicable, additional royalty payments based on a percent (generally, 5%-7%) of net sales of any products covered under the license agreement. The Company did not earn or receive additional royalties in 2013. The license agreement with ResolutionMD, LLC, unless terminated earlier, has a term of ten years following the first commercial sale of a product that is covered under the license agreement.

During the year ended December 31, 2012, the Company recorded $100,000 in revenues for non-refundable royalty advances under a license agreement that was terminated in January 2012, which amounts were received in December 2010 and April 2011 and recorded as deferred revenue.

Income Taxes

The Company accounts for income taxes under the provisions of Accounting Standards Codification (“ASC”) 740, “Income Taxes”, or ASC 740. As of December 31, 2013, there were no unrecognized tax benefits included in the consolidated balance sheets that would, if recognized, affect the effective tax rate. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had no accrual for interest or penalties in its consolidated balance sheets at December 31, 2013 and 2012, and has not recognized interest and/or penalties in the consolidated statements of operations for the years ended December 31, 2013 and 2012. The Company is subject to taxation in the United States and California. The Company’s tax years for 2000 and forward are subject to examination by the federal and state tax authorities due to the carry forward of unutilized net operating losses.

Cash and Cash Equivalents

Cash equivalents include short-term, highly liquid investments with maturities of three months or less at the time of acquisition.

Concentrations of Credit Risk

The Company places its cash with financial institutions deemed by management to be of high credit quality. The Federal Deposit Insurance Corporation (“FDIC”) provides basic deposit coverage with limits to $250,000 per owner. At December 31, 2013, the Company had approximately $15.3 million in cash deposits in excess of FDIC limits.

Deferred Offering Costs

On July 25, 2012, the Company filed with the Securities and Exchange Commission a registration statement on Form S-1 (as amended, the “Registration Statement”) in connection with an underwritten public offering of its common stock (the “Public Offering”). At December 31, 2012, the Company had deferred offering costs of $596,281 for legal, accounting and other expenses directly related to the Public Offering. The Public Offering closed on February 13, 2013 (see Note 6), and these deferred offering costs and any other costs directly associated with the Public Offering subsequent to December 31, 2012 were netted against the cash proceeds to the Company arising from the Public Offering. As a result, there were no deferred offering costs at December 31, 2013.

Furniture and Equipment

Furniture and equipment is stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over an estimated useful life ranging from three to five years. During the years ended December 31, 2013 and 2012, the Company recorded depreciation expense of $5,659 and $2,944, respectively.

Deferred Rent

The Company accounts for rent expense related to its operating leases by determining total minimum rent payments on the leases over their respective periods and recognizing the rent expense on a straight-line basis. The difference between the actual amount paid and the amount recorded as rent expense in each fiscal year is recorded as an adjustment to deferred rent.

Fair Value Measurements

Fair value measurements are determined based on the assumptions that market participants would use in pricing an asset or liability. GAAP establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The established fair value hierarchy prioritizes the use of inputs used in valuation methodologies into the following three levels:

●		Level 1: Applies to assets or liabilities for which there are quoted prices (unadjusted) for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and must be used to measure fair value whenever available.

●		Level 2: Applies to assets or liabilities for which there are significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

●		Level 3: Applies to assets or liabilities for which there are significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. For example, level 3 inputs would relate to forecasts of future earnings and cash flows used in a discounted future cash flows method.

At December 31, 2013 and 2012, the Company did not have any financial assets or liabilities which are measured on a recurring basis. At December 31, 2013 and 2012, the Company’s financial instruments include cash and cash equivalents, a restricted short-term investment, accounts payable and accrued expenses, and accrued payroll and related liabilities. The carrying amount of these financial instruments, except for the restricted short-term investment, approximates fair value due to the short-term maturities of these instruments. The Company’s restricted short-term investment is carried at amortized cost which approximates fair value.

Beneficial Conversion Features and Debt Discounts

The convertible features of debt can provide for a rate of conversion that is below market value. Such feature is normally characterized as a “beneficial conversion feature” (“BCF”). The relative fair values of the BCF were recorded as discounts from the face amount of the applicable debt instrument. The Company amortized the discount using the effective interest method through maturity of such instruments.

Stock-Based Compensation

All stock-based payments to employees and consultants, including grants of stock options, warrants, restricted stock units (“RSUs”) and restricted stock, are recognized in the consolidated financial statements based upon their fair values. The Company uses the Black-Scholes-Merton option pricing model and Monte Carlo Simulation to estimate the fair value of stock-based awards. The fair value is determined at the date of grant. The financial statement effect of forfeitures is estimated at the time of grant and revised, if necessary, if the actual effect differs from those estimates.

The Company’s accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows FASB guidance. As such, the value of the applicable stock-based compensation is periodically remeasured and income or expense is recognized during their vesting terms. The measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is primarily recognized over the term of the consulting agreement. In accordance with FASB guidance, an asset acquired in exchange for the issuance of fully vested, nonforfeitable equity instruments should not be presented or classified as an offset to equity on the grantor’s balance sheet once the equity instrument is granted for accounting purposes. Accordingly, the Company records the fair value of nonforfeitable equity instruments issued for future consulting services as prepaid stock-based consulting expenses in its consolidated balance sheets.

The Company recorded stock-based compensation expense related to equity instruments granted to employees, directors and consultants as follows:

					For the Period From
	For the Years Ended				July 24, 1998 (Inception)
	December 31,				through December 31,
	2013		2012		2013
Employees - selling, general and administrative	$	1,520,746	$	384,859	$	3,297,058
Employees - research and development		156,568		250,380		1,021,619
Directors - selling, general and administrative		399,986		1,225,350		1,748,028
Consultants - selling, general and administrative		843,301		137,745		1,788,654
Consultants - research and development		214,372		158,278		372,650
Total	$	3,134,973	$	2,156,612	$	8,228,009

Basic and Diluted Net Loss per Common Share

Basic net loss per common share is computed by dividing net loss attributable to common stockholders for the period by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss attributable to common stockholders for the period by the weighted average number of common and common equivalent shares, such as stock options and warrants outstanding during the period.

Basic and diluted net loss applicable to common stock per share is computed using the weighted average number of shares of common stock outstanding during the period. Common stock equivalents (using the treasury stock or, “if converted” methods) from convertible notes, preferred stock, stock options, unvested RSUs and warrants were 3,539,800 and 1,682,678 at December 31, 2013 and 2012, respectively, and are excluded from the calculation of diluted net loss per share for all periods presented because the effect is anti-dilutive.

The following table shows the computation of basic and diluted loss per share of common stock for the years ended December 31, 2013 and 2012:

	For the			For the
	Year Ended			Year Ended
	December 31, 2013			December 31, 2012

Net loss	$	(7,643,124	)	$	(5,383,535	)
Deemed dividend to preferred stockholders		-			(200,000	)
Numerator – net loss attributable to common stockholders	$	(7,643,124	)	$	(5,583,535	)
Denominator – weighted average number of shares outstanding, basic and diluted		8,656,822			4,493,535
Net loss per share, basic and diluted	$	(0.88	)	$	(1.24	)

F-10

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting periods. Significant estimates made by management are, among others, valuation of deferred taxes, realization of long-lived assets, and valuation of stock-based compensation issued to employees and non-employees. Actual results could differ from those estimates.

Reclassifications

Certain prior period items and amounts have been reclassified to conform to the classifications used to prepare the 2013 consolidated financial statements. These reclassifications had no material impact on the Company’s financial position, results of operations, or cash flows as previously reported.

Recently Adopted Accounting Pronouncements

In December 2011, the FASB issued Accounting Standards Update (“ASU”) ASU 2011-11, “Disclosures about Offsetting Assets and Liabilities.” This pronouncement was issued to enhance disclosure requirements surrounding the nature of an entity’s right to offset and related arrangements associated with its financial instruments and derivative instruments. This new guidance requires companies to disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to master netting arrangements. This pronouncement is effective for reporting periods beginning on or after January 1, 2013. The adoption of ASU 2011-11 did not have a material impact on our consolidated financial statements.

In January 2013, the FASB issued ASU 2013-01, “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” This pronouncement was issued to address implementation issues about the scope of ASU 2011-11 and to clarify the scope of the offsetting disclosures and address any unintended consequences. This pronouncement is effective for reporting periods beginning on or after January 1, 2013. The adoption of ASU 2013-01 did not have a material impact on our consolidated financial statements.

Recently Announced Accounting Pronouncements

In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” ASU 2013-11 provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The guidance is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013, with an option for early adoption. The Company intends to adopt this guidance at the beginning of its first quarter of fiscal year 2014, and is currently evaluating the impact on its consolidated financial statements and disclosures.

Proposed Amendments to Current Accounting Standards. The FASB is currently developing amendments to existing accounting standards governing a number of areas including, but not limited to, revenue recognition and lease accounting.

In June 2010, the FASB issued an exposure draft, Revenue from Contracts with Customers, which would supersede most of the existing guidance on revenue recognition in Accounting Standards Codification (“ASC”) Topic 605, Revenue Recognition. In November 2011, the FASB re-exposed this draft and it expects a final standard to be issued in the year ended December 31, 2014. As the standard-setting process is still ongoing, the Company is unable to determine the impact this proposed change in accounting will have in the Company’s consolidated financial statements at this time.

In August 2010, the FASB issued an exposure draft, Leases, which would result in significant changes to the accounting requirements for both lessees and lessors in ASC Topic 840, Leases. In May 2013, the FASB re-exposed this draft and the comment period was closed in September 2013. As the standard-setting process is still ongoing, the Company is unable to determine the impact this proposed change in accounting will have in the Company’s consolidated financial statements at this time.

In November 2013, the FASB issued an exposure draft, Development Stage Entities, the amendments in this proposed update would remove the definition of a development stage entity from ASC Topic 915, Development Stage Entities, thereby removing the distinction between development stage entities and other reporting entities from GAAP. In addition, the proposed amendments would eliminate the requirements for development stage entities to (1) present inception-to-date information on the statements of income, cash flows, and shareholder’s equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclosed in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. The comment period for this exposure draft was closed in December 2013. As the standard setting process is still ongoing, the Company is unable to determine the impact this proposed change will have in the Company’s consolidated financial statements at this time.

Restricted Short-Term Investment

12 Months Ended

Dec. 31, 2013

Restricted Short-Term Investment

Restricted Short-Term Investment

NOTE 3. RESTRICTED SHORT-TERM INVESTMENT

The restricted short-term investment at December 31, 2013 consists of a certificate of deposit, which is classified as held-to-maturity. At December 31, 2013, the restricted short-term investment was recorded at amortized cost which approximates fair value.

At December 31, 2013, the certificate of deposit of $50,097 was classified as a current asset. The certificate of deposit is required as collateral under the Company’s corporate credit card agreement and automatically renews every twelve months.

Accounts Payable and Accrued Expenses

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Accounts Payable and Accrued Expenses

NOTE 4. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of the following at:

	December 31, 2013		December 31, 2012
Accounts payable	$	261,924	$	342,470
Accrued offering costs		-		185,337
Deferred rent		-		2,477
Other accrued expenses		50,000		21,440
Stock-based compensation accrual		-		139,444
Total accounts payable and accrued expenses	$	311,924	$	691,168

There were 20,000 shares of the Company’s restricted common stock underlying the stock-based compensation accrual at December 31, 2012. The stock-based compensation expense related to restricted common stock issuances and accruals was $143,553 and $139,444 during the years ended December 31, 2013 and 2012, respectively.

Notes Payable

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Notes Payable

NOTE 5. NOTES PAYABLE

Convertible Notes – August 2005

In August 2005, the Company issued seven convertible promissory notes in the aggregate amount of $226,300 to various stockholders (collectively, the “Stockholders’ Notes”). The Stockholders’ Notes bore interest at 4% per annum and were to mature on August 25, 2010. In connection with the issuance of the Stockholders’ Notes, the Company granted warrants that were exercisable into an aggregate of 884 shares of the Company’s common stock. The warrants were determined to have an insignificant fair value at the time of the grant.

In May 2007, the holders of the Stockholders’ Notes and related warrants forgave the amounts due and forfeited the related warrants. In connection with the forgiveness, the Company recorded additional paid-in capital of $241,701 equal to the value of the Stockholders’ Notes and related accrued interest. Interest expense on the Stockholders’ Notes was $15,401 for the period from Inception through December 31, 2007.

Convertible Notes – May and June 2007

In May and June 2007, the Company issued convertible notes payable to various lenders for an aggregate amount of $1,500,000 (collectively, the “2007 Notes”). Each of the 2007 Notes included interest at 7% per annum and were to mature on December 16, 2007 (“Maturity Date”). However, as a result of the Merger and Private Placement (see Note 6), the entire outstanding principal amount and accrued interest was converted into the Company’s common stock at a conversion price equal to $40.00 per share, which resulted in the issuance of 38,254 shares. Also, the Company recorded a debt discount of $1,530,177, which was amortized immediately to interest expense upon the conversion of the 2007 Notes. Excluding the debt discount, interest expense on the 2007 Notes was $30,177 for the period from Inception through December 31, 2008.

Convertible Note – April 2010 – Former Related Party

On April 5, 2010, the Company issued a Senior Convertible Promissory Note (the “Note”) to Alexej Ladonnikov in a private placement. The Note included an annual interest rate of 7.5% and (unless converted or prepaid, as noted below) all principal and interest was due and payable on its maturity date of April 5, 2012 (“Maturity Date”). At any time prior to the Maturity Date, the investor had the right to convert all or a portion of the outstanding principal and accrued interest at a conversion ratio of one share of the Company’s common stock for each $40 (the fair market value of the Company’s common stock on April 5, 2010) owed. Also, at any time prior to the Maturity Date, the Company had the option to prepay the outstanding principal and accrued interest. The Company received gross proceeds from the issuance of the Note in the aggregate amount of $1,000,000. There were no discounts or commissions paid in connection with this private placement. There was no accrued interest on the Note at December 31, 2012, and interest expense on the Note for the year ended December 31, 2012 was $12,124. Following the Company’s bankruptcy petition filed June 26, 2011, as well as the change in ownership control following the issuance of Series A Convertible Preferred Stock (“Series A Preferred Stock”) to DermaStar International, LLC (“Derma Star”), the entire unpaid principal sum of this Note, together with its accrued and unpaid interest became immediately due and payable.

In January 2012, Derma Star acquired 80% of the Note in a private transaction with Mr. Ladonnikov. On January 25, 2012, the Board of Directors of the Company approved, and the Company entered into, separate waiver and settlement agreements with Derma Star and Mr. Ladonnikov, the two parties holding the Note.

In connection with each of the waiver and settlement agreements, the holders of the Note each agreed to forever waive their rights to (i) accelerate the entire unpaid principal sum of the Note and all accrued interest pursuant to Section 1 of the Note related to the Company’s bankruptcy petition filed June 26, 2011, (ii) Section 7 of the Senior Convertible Note Purchase Agreement dated April 5, 2010, regarding the designation and creation of the Series A Preferred Stock and (iii) certain conversion rights pursuant to Section 3 of the Note related to the change of control that resulted from the sale of the Series A Preferred Stock.

Pursuant to the terms of the waiver and settlement agreement by and between the Company and DermaStar, DermaStar and the Company agreed to the mandatory conversion of the eighty percent (80%) of the principal and accrued and unpaid interest of the Note held by DermaStar, at such time as (and not until) the Company has a sufficient number of authorized shares of common stock to effect such a conversion, into common stock of the Company at a conversion price of approximately $0.6668 (“DermaStar Conversion Price”). Additionally, Derma Star agreed to a mandatory conversion of an additional $56,087 of accounts payable of the Company (“AP Conversion”) held by DermaStar, at such time as (and not until) the Company had a sufficient number of authorized common shares for such conversion. The AP Conversion was made at the DermaStar Conversion Price.

On February 28, 2012, the Company issued 1,454,962 shares of common stock to DermaStar as payment in full for its 80% ownership of the Note ($800,000), its related accrued interest ($114,082) and $56,087 in the Company’s accounts payable. The Company determined this to be a substantial modification to the debt instruments and applied debt extinguishment accounting to record a loss on extinguishment of debt of $856,087 for the year ended December 31, 2012.

Pursuant to the terms of the waiver and settlement agreement by and between the Company and Mr. Ladonnikov, Mr. Ladonnikov and the Company agreed to the mandatory conversion of the twenty percent (20%) of the principal and accrued and unpaid interest of the Note held by Mr. Ladonnikov, at such time as (and not until) the Company had a sufficient number of authorized shares of common stock to effect such conversion, into common stock of the Company at a conversion price of $0.60. Additionally, Mr. Ladonnikov agreed to make a one-time payment to the Company, at such time as the Note was converted into the Company’s common stock, of $50,000.

On February 28, 2012, the Company received payment from Mr. Ladonnikov of $50,000 and issued 380,868 shares of common stock to Mr. Ladonnikov as payment in full for his 20% ownership of the Note ($200,000) and its related accrued interest ($28,521). The Company determined this to be a substantial modification to the debt instrument and applied debt extinguishment accounting to record a loss on extinguishment of debt of $150,000 ($200,000 Note principal balance less $50,000 cash payment received) for the year ended December 31, 2012.

Secured Line of Credit – Former Related Party

On November 21, 2011, the Company entered into a Secured Line of Credit Letter Agreement (the “Line of Credit Agreement”) with DermaStar. The Line of Credit Agreement became effective on December 10, 2011. The line of credit was secured by a blanket security interest in all of the Company’s assets, including its intellectual property. The Line of Credit Agreement provided for advances to the Company of up to an aggregate of $750,000 (each an “Advance” and collectively the “Loan”), subject to the satisfaction by the Company of certain conditions in connection with the initial Advance and each subsequent Advance. Each Advance was made pursuant to a promissory note in favor of DermaStar. The Company received advances totaling $750,000 up to April 25, 2012 (the date of the conversion thereof). The promissory notes accrued interest at 10% annually and had maturity dates of one year after the effective dates of the applicable Advance. There was no accrued interest on the promissory notes at December 31, 2012 and interest expense for the year ended December 31, 2012 was $12,534.

As of April 20, 2012, the aggregate principal balance owed under the Line of Credit was $750,000. Effective April 20, 2012, the Company and DermaStar entered into a Promissory Note Conversion Agreement (the “Conversion Agreement”) wherein the parties agreed that the entire outstanding principal balance of the promissory notes issued in favor of DermaStar pursuant to the Line of Credit Agreement and all related accrued interest, totaling $762,534, would be converted into shares of common stock and a warrant to purchase common stock. Pursuant to the Conversion Agreement, on April 25, 2012 and upon conversion of the outstanding principal balance and unpaid interest under the Line of Credit Agreement, DermaStar was issued a total of 193,046 shares of the Company’s common stock and a related warrant to purchase up to an additional 48,262 shares of the Company’s common stock. The warrant has an exercise price of $5.925 per share and a three year term. The Line of Credit Agreement has been terminated.

The addition of a conversion feature to the Line of Credit Agreement resulted in terms that were substantially different from the terms of the original agreement, and therefore, the conversion resulted in an extinguishment of debt. The relative fair value of the warrant issued to DermaStar was determined to be $137,383 using the Black-Scholes-Merton option pricing model. The variables used in this pricing model included: (1) discount rate of 0.4% (2) expected warrant life of 3 years, (3) expected volatility of 350% and (4) zero expected dividends. In addition, the value of the effective BCF resulting from the Conversion Agreement was determined to be $51,940. The value of the debt discount was recorded as additional paid-in capital and as the Line of Credit was immediately convertible, the debt discount of $189,323 was immediately expensed as a loss on extinguishment of debt.

DermaStar is a former control person of the Company and had the ability to direct or cause direction of management and policies of the Company through its ownership of the Company’s capital stock. Also, Dr. Robert Kammer, a director and the Chairman of the Board of the Company, and Mark L. Baum, Chief Executive Officer and a director of the Company, were managing members and partial owners of DermaStar. In July 2012, the Company was informed by DermaStar that it had dissolved and distributed all of its shares of the Company’s capital stock held by it to its members. As a result of that dissolution and distribution, DermaStar is no longer a control person of the Company.

Stockholders' Equity

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Stockholders' Equity

NOTE 6. STOCKHOLDERS’ EQUITY

Common Stock Issuances

On February 28, 2012, the Company increased the number of authorized shares of capital stock to 400,000,000, and the number of authorized shares of common stock to 395,000,000 and effected a one-for-eight reverse stock split. In connection with the Public Offering, after the effectiveness of the Registration Statement on February 7, 2013, the Company effected a one-for-five reverse stock split of its common stock and on February 8, 2013, the Company’s common stock began trading on The NASDAQ Capital Market on a split-adjusted basis.

The following is a summary of common stock and capital contribution transactions from inception through December 31, 2013:

In fiscal year 1998, the Company recorded capital contributions of $100,000 (the estimated fair value of the services contributed) in connection with services contributed by stockholders, which is recorded respectively in selling, general and administrative and research and development expenses in the accompanying consolidated statements of operations.

In fiscal year 1999, the Company recorded capital contributions of $200,000 (the estimated fair value of the services contributed) in connection with services contributed by stockholders, which is recorded respectively in selling, general and administrative and research and development expenses in the accompanying consolidated statements of operations.

In fiscal year 2000, the Company issued 23,437 shares of common stock at a price of $0.256 per share for proceeds of $6,000. Also, recorded capital contributions of $200,000 (the estimated fair value of the services contributed) in connection with services contributed by stockholders, which is recorded respectively in selling, general and administrative and research and development expenses in the accompanying consolidated statements of operations.

In fiscal year 2001, the Company recorded capital contributions of $200,000 (the estimated fair value of the services contributed) in connection with services contributed by stockholders, which is recorded respectively in selling, general and administrative and research and development expenses in the accompanying consolidated statements of operations.

In fiscal year 2002, the Company recorded capital contributions of $200,000 (the estimated fair value of the services contributed) in connection with services contributed by stockholders, which is recorded respectively in selling, general and administrative and research and development expenses in the accompanying consolidated statements of operations.

In fiscal year 2003, the Company recorded capital contributions of $200,000 (the estimated fair value of the services contributed) in connection with services contributed by stockholders, which is recorded respectively in selling, general and administrative and research and development expenses in the accompanying consolidated statements of operations.

In fiscal year 2004, the Company recorded capital contributions of $400,000 (the estimated fair value of the services contributed) in connection with services contributed by stockholders, which is recorded respectively in selling, general and administrative and research and development expenses in the accompanying consolidated statements of operations.

In fiscal year 2005, the Company issued 61,718 shares of common stock at a price of $0.256 per share for gross proceeds of $15,800 for common stock purchases and stock option exercises. The Company received additional capital contributions in cash of $14,200 from the Company’s stockholders and recorded capital contributions of $400,000 (the estimated fair value of the services contributed) in connection with services contributed by stockholders, which is recorded respectively in selling, general and administrative and research and development expenses in the accompanying consolidated statements of operations.

In fiscal year 2006, the Company issued 9,375 shares of common stock at a price of $0.256 per share for gross proceeds of $2,400. The Company received additional capital contributions in cash of $48,600 from the Company’s stockholders and recorded capital contributions of $400,000 (the estimated fair value of the services contributed) in connection with services contributed by stockholders, which is recorded respectively in selling, general and administrative and research and development expenses in the accompanying consolidated statements of operations.

Prior to the Merger during fiscal year 2007, the Company issued 100,585 shares of its common stock at a price of $0.256 per share for proceeds of $25,750, which includes the issuance of 781 shares upon the exercise of a warrant and 195 shares upon exercise of stock options. Also, prior to the Merger, the Company received capital contributions of $105,907 from the Company’s stockholders and recorded capital contributions of $175,000 (the estimated fair value of the services contributed) in connection with services contributed by stockholders, which is recorded respectively in selling, general and administrative and research and development expenses in the accompanying consolidated statements of operations.

Prior to the Merger during fiscal year 2007, the Company recorded additional paid-in capital of $241,701 related to the forgiveness of Stockholders’ Notes (see Note 5).

In August 2007, the Company issued a restricted stock grant to an executive of the Company for 4,882 shares of the Company’s common stock.

In connection with the Merger in 2007, 46,249 shares of common stock remained outstanding (see Note 2).

Concurrent with the Merger in 2007, the Company sold 51,795 shares of common stock for net proceeds of $3,837,791 ($4,143,667 gross) through a private placement (the “Private Placement”). In addition, the investors received warrants to purchase 12,949 shares of common stock for a period of five years at a cash and cashless exercise price of $160.00 and $200.00 per share, respectively. In connection with the Private Placement, the Company incurred placement agent fees and other related expenses totaling $342,105 (of which $36,229 was paid in fiscal year 2008 and netted with the 2008 private placement discussed below) and issued warrants to purchase up to 844 shares of common stock for a period of three years at cash and cashless exercise price of $160.00 and $200.00 per share, respectively.

Concurrent with the Merger in 2007, the Company issued 38,254 shares of common stock related to the conversion of the 2007 Notes and accrued interest of $1,530,177. Also, the Company recorded a debt discount of $1,530,177 related to the 2007 Notes (see Note 5).

In September 2007, the Company entered into three, one-year consulting agreements with three separate firms to provide services related to investor communications. In the aggregate, 6,875 shares of common stock were issued in accordance with the terms of the agreements along with a warrant to purchase 469 shares of common stock for a period of five years at a cash and cashless exercise price of $160.00 and $200.00, respectively. The fair value of the stock and warrants were valued at $550,000. The estimated costs of the consulting agreements, including the stock, warrants and non-refundable fee were amortized over the one-year terms.

On May 12, 2008, the Company sold 45,454 shares of common stock for net proceeds of $3,941,301 ($4,000,000 gross) through a follow-on private placement (the “Follow-on Private Placement”) to accredited investors. In addition, the investors received warrants to purchase 5,682 shares of common stock for a period of five years at a cash and cashless exercise price of $176.00 and $220.00 per share, respectively. In connection with the Follow-On Private Placement, the Company incurred expenses of $22,470, which was recorded as a reduction of additional paid-in capital, and the gross proceeds were also netted with $36,229 related to the 2007 Private Placement that was paid in 2008.

In 2008, in connection with the termination of certain consulting agreements entered into in 2007 and 2008, 2,064 shares of common stock were forfeited at a value that was reversed of $135,136. The Company also decreased additional paid-in capital and consulting expense by $70,000 because of the remeasurement of certain consulting agreements. Additionally, during 2008, the Company entered into an agreement with an investor relations firm (“IR Firm”). Pursuant to the agreement with the IR Firm, the Company issued 1,717 shares of common stock during 2008 at a value of $85,833. In a separate agreement, the Company entered into a consulting agreement in which the Company issued a three-year warrant to purchase 125 shares of the Company’s common stock at a cash and cashless price of $80.00 per share. The net amount of shares forfeited during 2008 from consulting agreements and the IR Firm was (347) and the net expense reversed and charged to additional paid-in capital was ($117,993).

On November 21, 2008, the Company issued a restricted stock grant to a director of the Company for 625 shares of the Company’s common stock. The restricted stock grant vested over a one-year period.

During 2009, in connection with the agreement with the IR Firm, the Company issued 1,144 shares of common stock valued at $50,356. In a separate agreement, the Company entered into a consulting agreement in which the Company issued a stock option to purchase 1,250 shares of the Company’s common stock at an exercise price of $39.60 per share. The fair value of the option, determined based on the Black-Scholes-Merton pricing model, was recorded as $14,434. In another agreement, the Company entered into a consulting agreement in which the Company issued stock options to purchase 1,188 shares of the Company’s common stock at an exercise price of $64.00 per share. The fair value of the options, determined based on the Black-Scholes-Merton pricing model, was recorded at $56,665. The total value of common stock, warrants and options recorded during 2009 was $121,455.

In August 2009, the Company issued 1,250 shares of common stock at a price of $39.60 per share for gross proceeds of $49,500 for stock option exercises.

In June 2010, the Company entered into two separate agreements with an investor relations firm and a financial advisory services firm (collectively “the firms”) in order to provide certain investor relations and advisory services to the Company for a period of one year. In exchange for such services, the Company issued 5,000 shares, in the aggregate, of its unregistered common stock, of which all shares were nonforfeitable (valued at $208,000 and recorded as prepaid consulting fees upon issuance) to the firms as a prepayment of services to be received over a three-month period. The Company agreed to suspend the services related to these agreements, therefore, at this time no additional shares of common stock will be issued to the firms. For the year ended December 31, 2010, the Company recorded stock-based compensation related to the stock of $208,000. On August 13, 2010, the Company entered into a consulting agreement in which the Company issued stock options to purchase 5,030 shares of the Company’s common stock at an exercise price of $42.80 per share. The fair value of the options, determined based on the Black-Scholes-Merton pricing model, was recorded at $132,300. In September 2010, the Company entered an agreement with an investor relations firm in order to provide certain investor relations services to the Company for a period of six months. In exchange for such services, the Company issued 750 shares, in the aggregate, of its unregistered common stock, of which all shares were nonforfeitable (valued at $27,600 and recorded as prepaid consulting fees upon issuance) to the investor relations firm as a prepayment of services to be received for the initial three-month period of the agreement. The agreement was terminated by the Company during November 2010. For the year ended December 31, 2010, the Company recorded stock-based compensation related to the restricted stock of $27,600. The total number of shares of common stock issued to consultants during 2010 was 5,750 and the total value of common stock and options issued to consultants during 2010 was $367,900.

On October 20, 2010, the Company appointed John N. Bonfiglio, Ph.D. as Chief Executive Officer and President of the Company. Dr. Bonfiglio was also appointed as a director on the Company’s Board. The Board granted Dr. Bonfiglio a stock option for 10,000 shares of common stock and issued 1,250 shares of restricted common stock in accordance with the Company’s 2007 Incentive Stock and Awards Plan. The stock option and the restricted common stock vested as follows: 25% of the option shares and the restricted stock vested immediately upon grant, with the balance of the option shares and the restricted stock vesting in equal monthly installments over the next 36 months beginning 30 days after the grant date. The restricted stock was valued at $32.00 per share, the reported closing price of the Company’s common stock on October 20, 2010. For the year ended December 31, 2010, the Company recorded stock-based compensation expense related to the issuance and partial vesting of the restricted stock award of $12,083.

On May 13, 2011, the Board of Directors accepted the resignation of Dr. Bonfiglio, Ph.D. as Chief Executive Officer and President of the Company and as a director on the Board of Directors. As a result of Dr. Bonfiglio’s resignation, of the 1,250 shares of restricted stock awarded to him, 469 shares had vested and 781 shares were returned to treasury and cancelled effective his date of resignation. For the year ended December 31, 2011, the Company recorded stock-based compensation expense related to the issuance and partial vesting of the restricted stock award of $3,332.

On February 28, 2012, the Company issued 380,868 shares of common stock to Alexej Ladonnikov as payment in full for his 20% ownership of the Note ($200,000) and its related accrued interest ($28,521). See Note 5.

On April 20, 2012, the Company entered into a Securities Purchase Agreement with certain accredited investors relating to the sale and issuance of an aggregate of 2,011,691 shares of its common stock and warrants to purchase up to 502,928 shares of its common stock at an exercise price of $5.925 per share, for an aggregate purchase price of approximately $7,950,000 (the “April Private Placement”). The April Private Placement closed on April 25, 2012, and the Company received proceeds, net of offering costs, of approximately $7,930,000.

On April 25, 2012, the Company converted debt totaling $762,534 (including accrued interest of $12,534) owed to DermaStar, a related party, into 193,046 shares of the Company’s common stock and a related warrant to purchase 48,262 shares of the Company’s common stock at an exercise price of $5.925 per share (see Note 5).

On August 30, 2012, the Company entered into a License Agreement (the “PCCA License Agreement”) and a Stock Purchase Agreement (the “PCCA Purchase Agreement”) in a strategic transaction with Professional Compounding Centers of America, Inc. (“PCCA”) (the “PCCA Transaction”). Pursuant to the terms of the PCCA Purchase Agreement, on August 31, 2012, the Company issued and sold to PCCA 832,682 shares of its common stock at a per share purchase price of $4.8038, for aggregate proceeds, net of offering costs, of approximately $3,980,000.

On December 11, 2012, the Company issued 200 shares of common stock at a price of $4.00 per share for gross proceeds of $800 for stock option exercises.

In February 2013, the Company issued 219 shares of common stock to net settle common stock options to purchase 1,030 shares of common stock with an exercise price of $4.00 per share pursuant to a cashless exercise provision.

During February and March 2013, the Company made payments totaling $191 in connection with cancelled, fractional share amounts of common stock (35 common stock share equivalents) in connection with the one-for-five reverse stock split effected February 7, 2013.

On February 13, 2013, the Company closed the Public Offering and issued an aggregate of 1,840,000 shares of its common stock at a per share price to the public of $5.25, and received net proceeds of $8,140,435 after deducting underwriter fees and commissions and other offering expenses. The underwriters also exercised their option to purchase an additional 276,000 shares of common stock from the Company at $5.25 per share to cover over-allotments on March 14, 2013. Net cash proceeds from the exercise of the over-allotment option were $1,316,116. On February 7, 2013, the Company entered into an Underwriting Agreement (the “Underwriting Agreement”) with MDB Capital Group, LLC in connection with the Public Offering. As contemplated by the Underwriting Agreement, at the closing of the Public Offering and the over-allotment exercise, the underwriters received warrants (the “Underwriter Warrants”) to purchase an aggregate of 179,860 shares, or 8.5% of the number of shares sold in the offering (including 8.5% of shares sold pursuant to their over-allotment option). The Underwriter Warrants are exercisable at $5.25 per share (100% of the price of the common stock sold in the offering), commencing on the effective date of the offering and expire five years from the effective date of the offering.

During June 2013, the Company issued 40,000 shares of common stock to Mark Baum, the Company’s Chief Executive Officer and a director, related to vesting of RSUs.

During the year ended December 31, 2013, the Company issued 40,000 restricted shares of common stock to Dr. Robert Kammer, a director, valued at $282,997, in consideration for consulting services provided during the years ended December 31, 2013 and 2012.

During September 2013, the Company issued 2,114 restricted shares of common stock to a consultant, valued at $10,750, in consideration for consulting services provided during the year ended December 31, 2013. The fair value of the shares of common stock issued was recorded as stock-based compensation during the year ended December 31, 2013.

Preferred Stock

At December 31, 2013 and 2012, the Company had 5,000,000 shares of preferred stock, $0.001 par value, authorized and no shares issued and outstanding.

Series A Preferred Stock – Converted – Former Related Party

The Series A Preferred Stock had the rights and preferences identified in the Certificate of Designation to the Company’s Amended and Restated Certificate of Incorporation filed with the Delaware Secretary of State on December 9, 2011. Among other things, the Certificate of Designation (i) authorizes 10 shares of the Company’s preferred stock to be designated as “Series A Convertible Preferred Stock”; (ii) grants the holders of the Series A Preferred Stock the right to convert into the Company’s common stock at a conversion price of approximately $0.06668, as adjusted; (iii) grants a liquidation preference of $10,000 per share of Series A Preferred Stock; (iv) provides that the holders of Series A Preferred Stock shall vote with the holders of the Company’s common stock on an “as converted basis”; and (v) provides that the affirmative vote of a majority of the outstanding shares of the Series A Preferred Stock is required to approve certain corporate matters including, among other things, changes to the rights of the holders of the Series A Preferred Stock, amendments to the Company’s Amended and Restated Certificate of Incorporation or Bylaws, issuance of priority or parity securities, issuance of debt securities, entry into certain fundamental transactions and increase or decrease in the size of the Company’s Board of Directors.

In partial consideration for and in connection with the Line of Credit Agreement described in Note 5, on November 21, 2011, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with DermaStar, a former related party, pursuant to which the Company agreed to issue ten (10) shares of newly-designated Series A Preferred Stock to DermaStar for an aggregate purchase price of $100,000. The Purchase Agreement, as amended, became effective on December 9, 2011. On December 12, 2011, the Company and DermaStar consummated the transactions contemplated by the Purchase Agreement. On December 31, 2011 and made effective November 21, 2011, the Company entered into a First Amendment to Securities Purchase Agreement (the “Amendment”). Pursuant to the terms of the Amendment, DermaStar agreed not to convert more than five (5) shares of Series A Preferred Stock into common stock until such time as the Company has a sufficient number of authorized shares of common stock to enable the conversion of all ten shares of Series A Preferred Stock held by DermaStar. The five shares of preferred stock could be converted into 749,850 shares of common stock, which represented approximately 65% of the capital stock of the Company on an as-converted basis at the time of issuance.

The Company recorded a BCF of $100,000 to the preferred stock purchase and recorded a preferred stock discount. As the preferred stock did not have a stated redemption date, the associated discount was amortized from the date of issuance to the earliest possible conversion date, which is the date of issuance and recognized as a deemed dividend to the preferred stockholders using the effective yield method. Accordingly, the Company recorded non-cash accretion of preferred stock deemed dividend totaling $100,000 in 2011, which represents an increase to reported net loss in arriving at net loss attributable to common stockholders and additional paid-in capital by a corresponding $100,000. The non-cash accretion of the preferred stock deemed dividend did not have an effect on cash flows for the year ended December 31, 2011.

On June 29, 2012, DermaStar converted the 10 shares of Series A Preferred Stock held by it into 1,499,700 shares of the Company’s common stock. In connection with the conversion, the Company paid to DermaStar $200,000 as partial consideration for the conversion pursuant to a conversion agreement. Immediately following the conversion of the Series A Preferred Stock, all 10 shares were retired to the Company’s treasury and cancelled. The Company recognized the $200,000 payment as additional consideration transferred in the transaction in excess of the fair value of the consideration issuable in accordance with the original conversion terms. As a result, the cash payment to DermaStar was recorded as a deemed preferred stock dividend. Accordingly, the Company recorded a deemed preferred stock dividend at the date of conversion, June 29, 2012, totaling $200,000, which represents an increase to reported net loss in arriving at net loss attributable to common stockholders.

Stock Option Plan

On September 17, 2007, the Company’s Board of Directors and stockholders adopted the Company’s 2007 Incentive Stock and Awards Plan, which was subsequently amended on November 5, 2008, February 26, 2012, July 18, 2012, May 2, 2013 and September 27, 2013 (as amended, the “Plan”). As of December 31, 2013, the Plan provides for the issuance of a maximum of an aggregate of 5,000,000 shares of the Company’s common stock. The purpose of the Plan is to provide an incentive to attract and retain directors, officers, consultants, advisors and employees whose services are considered valuable, to encourage a sense of proprietorship and to stimulate an active interest of such persons in the Company’s development and financial success. Under the Plan, the Company is authorized to issue incentive stock options intended to qualify under Section 422 of the Internal Revenue Code, non-qualified stock options and restricted stock. The Plan is administered by the Compensation Committee of the Company’s Board of Directors. The Company had 2,276,688 shares available for future issuances under the Plan at December 31, 2013.

A summary of the Plan activity with respect to options to purchase common stock for the year ended December 31, 2013 is as follows:

	Number of shares			Weighted Avg. Exercise Price		Weighted Avg. Remaining Contractual Life		Aggregate Intrinsic Value
Options outstanding - January 1, 2013		905,806		$	5.26
Options granted		697,453		$	6.41
Options exercised		(1,030	)	$	4.00
Options cancelled/forfeited		(273,439	)	$	7.95
Options outstanding - December 31, 2013		1,328,790		$	5.31		5.91	$	140,000
Options exercisable		878,891		$	4.53		4.30	$	140,000
Options vested and expected to vest		1,283,800		$	5.26		5.80	$	140,000

The aggregate intrinsic value in the table above represents the total pre-tax amount of the proceeds, net of exercise price, which would have been received by option holders if all option holders had exercised and immediately sold all options with an exercise price lower than the market price on December 31, 2013, based on the closing price of the Company’s common stock of $3.36 on that date.

During fiscal years 2013 and 2012, the Company granted stock options to certain employees, directors and consultants. The stock options were granted with an exercise price equal to the current market price of the Company’s common stock, as reported by the applicable quotation system of securities exchange on which the common stock was then quoted or listed, at the grant date and have contractual terms ranging from 3 to 10 years. Vesting terms for options granted in fiscal year 2012 to employees, directors and consultants typically included monthly vesting over periods ranging from 12-36 months or quarterly vesting over 12 months. Vesting terms for options granted in fiscal year 2013 to employees, directors and consultants typically included one of the following vesting schedules: 25% or 33% of the shares subject to the option vest and become exercisable on the first anniversary of the grant date and the remaining 67% or 75%, respectively, of the shares subject to the option vest and become exercisable quarterly in equal installments thereafter over two or three years, respectively; quarterly vesting over a three year period; or monthly, quarterly or 100% vesting associated with the provision or completion of services provided under contracts with consultants. Certain option awards provide for accelerated vesting if there is a change in control (as defined in the Plan) and in the event of certain modifications to the option award agreement.

The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton option pricing model. Prior to April 1, 2013, expected volatilities were based on historical volatility of the Company’s common stock and other factors. Following April 1, 2013, the expected volatility is based on the historical volatilities of the common stock of comparable publicly traded companies based on the Company’s belief that it has significantly changed its business operations and focus, and as a result, it currently has limited relevant historical data regarding the volatility of its stock price on which to base a meaningful estimate of expected volatility. The expected term of options granted was determined in accordance with the “simplified approach” as the Company has limited, relevant, historical data on employee exercises and post-vesting employment termination behavior. The expected risk-free interest rate is based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. The financial statement effect of forfeitures is estimated at the time of grant and revised, if necessary, if the actual effect differs from those estimates. For option grants to employees and directors, the Company assigns a forfeiture factor of 10%. These factors could change in the future, affecting the determination of stock-based compensation expense in future periods. Utilizing these assumptions, the fair value is determined at the date of grant.

The table below illustrates the fair value per share determined using the Black-Scholes-Merton option pricing model with the following assumptions used for valuing options granted to employees and directors:

	Year Ended		Year Ended
	December 31, 2013		December 31, 2012
Weighted-average fair value of options granted	$	6.04	$	3.20
Expected terms (in years)		5.8 - 7		2.5 - 5.5
Expected volatility		102 - 123%		219 - 360%
Risk-free interest rate		0.86 - 2.05%		0.31 - 1.03%
Dividend yield		-		-

The table below illustrates the fair value per share determined using the Black-Scholes-Merton option pricing model with the following assumptions used for valuing options granted to consultants:

	Year Ended		Year Ended
	December 31, 2013		December 31, 2012
Weighted-average fair value of options granted	$	5.63	$	7.48
Expected terms (in years)		2.33 - 10		4.25 - 5
Expected volatility		80 - 366%		306 - 361%
Risk-free interest rate		0.30 - 2.45%		0.48 - 1.03%
Dividend yield		-		-

The following table summarizes information about stock options outstanding and exercisable at December 31, 2013:

	Options Outstanding						Options Exercisable
			Weighted
			Average		Weighted				Weighted
			Remaining		Average				Average
	Number		Contractual		Exercise		Number		Exercise
Range of Exercise Prices	Outstanding		Life in Years		Price		Exercisable		Price
$2.40-3.20		250,000		5.57	$	2.80		250,000	$	2.80
$3.60 - $4.51		662,116		4.47	$	4.13		518,335	$	4.13
$6.00 - $9.00		402,271		8.49	$	8.11		96,153	$	8.17
$10.75		7,603		3.96	$	10.75		7,603	$	10.75
28.00 - $80.00		6,800		6.13	$	40.86		6,800	$	40.86
		1,328,790		5.91	$	5.31		878,891	$	4.53

As of December 31, 2013, there was approximately $1,680,000 of total unrecognized compensation expense related to unvested stock options granted under the Plan. That expense is expected to be recognized over the weighted-average remaining vesting period of 2.6 years. The stock-based compensation for all stock options was $1,689,756 and $1,792,993 during the years ended December 31, 2013 and 2012, respectively.

Restricted Stock Units

RSU awards are granted subject to certain vesting requirements and other restrictions, including performance and market based vesting criteria. The grant-date fair value of the RSUs, which has been determined based upon the market value of the Company’s shares on the grant date, is expensed over the vesting period. Unvested portions of RSUs issued to consultants are remeasured on an interim basis until vesting criteria is met. On May 2, 2013, the Board of Directors of the Company amended and restated the Plan to provide for the issuance of RSUs under the Plan.

On May 2, 2013, the Company entered into an amended and restated employment agreement with its CEO, Mark Baum. Among other things, the amended and restated employment agreement provides for the issuance of 1,250,000 RSUs to Mr. Baum, pursuant to the Plan. Of these RSUs, 200,000 vest on the third anniversary of the RSU grant based on continued service to the Company and the remaining 1,050,000 RSUs will vest based on the satisfaction of certain market-based and continued service conditions (the “Baum Performance Equity Award”). The Baum Performance Equity Award vests three years from the date of grant contingent upon the satisfaction of certain market-based vesting criteria during the three year period. The market-based vesting criteria are separated into five equal tranches and require that the Company achieve and maintain certain stock price targets ranging from $10 per share to $30 per share during the three year period following the grant date. With certain limited exceptions, Mr. Baum must be employed with the Company on the third anniversary of the grant date in order for the Baum Performance Equity Award to vest. These market-based vesting conditions are further described below:

Tranche	Number of Shares	Target Share Price
Tranche 1	19.05% of the Baum Performance Equity Award granted	$10.00 or greater
Tranche 2	19.05% of the Baum Performance Equity Award granted	$15.00 or greater
Tranche 3	19.05% of the Baum Performance Equity Award granted	$20.00 or greater
Tranche 4	19.05% of the Baum Performance Equity Award granted	$25.00 or greater
Tranche 5	23.80% of the Baum Performance Equity Award granted	$30.00 or greater

Under the terms of the employment agreement with Mr. Baum, the earning and issuance of any shares under the Baum Performance Equity Award that would exceed the number of shares available for grant and/or the applicable annual per person grant limit for performance-based restricted stock units under the Plan are subject to approval by the Board of Directors and the Company’s stockholders of an increase in the number of shares available for grant and the applicable annual per person grant limit for performance-based restricted stock units under the Plan. At the time of grant in May 2013, the per person grant limit under the Plan for grants of performance-based restricted stock units was 600,000 shares. The Board approved an amendment to the Plan to increase to the number of shares available for grant from 2,400,000 to 5,000,000 shares and the applicable annual per person grant limit from 600,000 to 1,250,000 shares on May 2, 2013. The amendment to the Plan was required to be approved by the Company’s stockholders. On September 27, 2013, a majority of the Company’s stockholders approved the Plan amendment and the remaining 450,000 RSUs were granted on that date pursuant to the Baum Performance Equity Award.

Concurrent with the issuance of the 450,000 RSUs, Mr. Baum agreed to cancel 120,000 unvested RSUs previously granted to Mr. Baum in July 2012. As a result, the Company has treated the issuance of the 450,000 RSUs as a modification of the RSU grant made to Mr. Baum in July 2012. The total compensation cost to be recognized by the Company is equal to the original grant date fair value of the canceled RSUs plus any incremental cost calculated as the excess of the fair value of the 450,000 RSUs over the fair value of the canceled 120,000 RSUs on the modification date, which is September 27, 2013. The initial fair value of the 450,000 RSUs pursuant to the Baum Performance Equity Award granted to Mr. Baum was $189,000. No incremental cost was associated with the exchange of RSUs as the fair value prior to modification was more than after the modification. As of December 31, 2013, the amount of unamortized stock based compensation that has not been expensed related to the unvested 450,000 RSUs grant is $156,508. The 450,000 RSUs pursuant to the Baum Performance Equity Award were valued using a Monte Carlo Simulation with a three year life, 75% volatility and a risk free interest rate of 0.64%.

The initial fair value of the 200,000 RSUs and 600,000 RSUs pursuant to the Baum Performance Equity Award granted to Mr. Baum was $3,515,090 and as of December 31, 2013, the amount of unamortized stock based compensation that has not been expensed related to the unvested RSUs grants is $2,773,914. The 600,000 RSUs pursuant to the Baum Performance Equity Award were valued using a Monte Carlo Simulation with a three year life, 75% volatility and a risk free interest rate of 0.30%.

F-20

On May 24, 2013, the Company granted 100,000 RSUs to a consultant that will vest based on the satisfaction of certain market-based conditions subject to the consultant’s continued service, among other things. These market-based vesting conditions are further described below:

Tranche	Number of Shares	Target Share Price
Tranche 1	20,000 shares	$10.00 or greater
Tranche 2	20,000 shares	$15.00 or greater
Tranche 3	20,000 shares	$20.00 or greater
Tranche 4	20,000 shares	$25.00 or greater
Tranche 5	20,000 shares	$30.00 or greater

For each respective tranche to vest the following conditions must be met: (i) the Company’s common stock must have an official closing price at or above the Target Share Price for the respective tranche (each such date a “Trigger Date”); (ii) during the period that includes the Trigger Date and the immediately following 19 trading days (the “Measurement Period”), the arithmetic mean of the 20 closing prices during the Measurement Period must be at or above the Target Share Price for such tranche ((i) and (ii), the “Stock Price Conditions”); and (iii) with certain limited exceptions, 50% of the RSUs subject to a tranche will vest on the quarterly anniversary of the grant date following the satisfaction of the Stock Price Conditions with respect to that tranche, subject to the consultant being in continuous service with the Company on such quarterly anniversary and the remaining 50% shall vest on the second anniversary of the grant date if (a) the Stock Price Conditions have been satisfied with respect to that tranche prior to the second anniversary of the grant date and (b) the consultant is and has been in continuous service with the Company on the second anniversary of the grant date. All unvested RSUs will be forfeited on the second anniversary of the grant date.

The initial value of the 100,000 RSUs with market-based vesting conditions granted to the consultant was $288,000, and as of December 31, 2013 the remeasured fair value of those RSUs was $10,080. The amount of unamortized stock-based compensation that has not been expensed related to the unvested RSU grant is $7,140. The 100,000 RSUs are valued using a Monte Carlo Simulation with a 2 year life (based on the grant date), 75%-85% volatility and risk free interest rates of 0.13%-0.36%.

In June 2013, the Board of Directors approved a one-time grant of 6,865 RSUs (or an aggregate of 34,325 RSUs) to non-employee directors with an aggregate fair value of $271,854. The RSUs vest in full 13 months from the date of grant subject to the director being in continuous service with the Company and have certain deferral features intended to be compliant with Internal Revenue Code Section 409A. Once vesting conditions have been achieved, receipt of the shares underlying the RSUs will be deferred until the directors resign.

In September and October 2013, two directors resigned and forfeited all 6,865 (13,730 RSUs total) unvested RSUs previously held.

In October 2013, the Company issued 8,947 RSUs to Peter C. Kenny, for his service to the Company as a director, with an aggregate fair value of $39,814. The RSUs vest in full 13 months from the date of grant subject to the director being in continuous service with the Company and have certain deferral features intended to be compliant with Internal Revenue Code Section 409A.

In November 2013, the Company issued 10,418 RSUs to certain employees with an aggregate fair value of $42,498. The RSUs have a three year vesting term, whereby they vest in equal installments on an annual basis.

A summary of the Company’s RSU activity and related information for the year ended December 31, 2013 is as follows:

	Number of RSUs			Weighted Average Grant Date Fair Value
RSUs outstanding - January 1, 2013		200,000		$	3.25
RSUs granted		1,403,690		$	3.24
RSUs vested		(40,000	)	$	3.25
RSUs cancelled/forfeit		(173,730	)	$	3.62
Balance at December 31, 2013		1,389,960		$	3.19

On July 18, 2012, a consultant was issued 40,000 RSUs valued at $130,000, and on September 30, 2013, these RSUs were cancelled.

As of December 31, 2013, the total unrecognized compensation expense related to unvested RSUs was approximately $3,105,000 (including recognized and unrecognized expenses of the remeasured fair value of consultant RSUs) which are expected to be recognized over a weighted-average period of 2.23 years, based on estimated vesting schedules. The stock-based compensation for RSU’s was $822,137 and $363,619 during the years ended December 31, 2013 and 2012, respectively.

Warrants

From time to time, the Company issues warrants to purchase shares of the Company’s common stock to investors, note holders, underwriters and to non-employees for services rendered or to be rendered in the future.

In February 2013, the Company issued a warrant to purchase 30,000 shares of the Company’s common stock to a consultant with an exercise price of $5.25 per share. The warrants expire three years following the issuance date, and vest as follows: 10,000 shares vested immediately upon execution of the consulting agreement, and the remaining shares will vest in 4,000 share installments on each of the five monthly periods following the date of the consulting agreement provided the consultant continues to provide services to the Company as of the applicable vesting date.

In July 2013, the Company issued a warrant to purchase 60,000 shares of the Company’s common stock to a consultant with an exercise price of $8.50 per share, in consideration for services to be provided over a six month term. The warrants expire five years following the issuance date, vest immediately, are non-forfeitable, and become exercisable in January 2014. The Company recorded an initial stock-based prepaid consulting expense for the fair value of the warrants totaling $319,786, which is being amortized over the length of the consulting service term.

A summary of the activity of the warrants for the year ended December 31, 2013 is as follows:

	Number of Shares Subject to Warrants Outstanding			Weighted Avg. Exercise Price

Warrants outstanding - January 1, 2013		556,872		$	7.66
Granted		269,860		$	5.97
Exercised		-
Expired		(5,682	)	$	176.00
Warrants outstanding and exercisable - December 31, 2013		821,050		$	5.94
Weighted average remaining contractual life of the outstanding warrants in years - December 31, 2013		2.19

The fair value of each warrant is estimated on the date of grant using the Black-Scholes-Merton option pricing model. The table below illustrates the fair value per share determined by the Black-Scholes-Merton option pricing model with the following assumptions used for valuing the warrants issued to consultants:

	Year Ended
	December 31, 2013
Weighted-average fair value of warrants granted	$	5.12
Expected terms (in years)		2.6-5
Expected volatility		85%-346%
Risk-free interest rate		0.32%-1.31%
Dividend yield		-

A list of the warrants outstanding as of December 31, 2013 is included in the table below:

	Warrants Outstanding					Warrants Exercisable
		Warrants		Exercise		Warrants		Expiration
Warrant Series	Issue Date	Outstanding		Price		Exercisable		Date
DermaStar	4/25/2012		48,262	$	5.93		48,262		4/25/2015
April PPM	4/25/2012		502,928	$	5.93		502,928		4/25/2015
Underwriter Warrants	2/7/2013		179,860	$	5.25		179,860		2/7/2018
IR Consultant	2/28/2013		30,000	$	5.25		30,000		2/28/2016
IR Consultant	7/19/2013		60,000	$	8.50		-		7/19/2018
			821,050	$	5.94		761,050

The stock-based compensation for warrants was $468,777 and $0 during the years ended December 31, 2013 and 2012.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
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-Paragraph d
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
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-Section 02
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
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Reference 17: http://www.xbrl.org/2003/role/presentationRef
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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-Article 3

+ Details

Income Taxes

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 7. INCOME TAXES

The Company is subject to taxation in the United States and California. The provision for income taxes for the years ended December 31, 2013 and 2012 are summarized below:

	December 31, 2013			December 31, 2012
Current:
Federal	$	-		$	-
State		-			1,600
Total current	$	-		$	1,600

Deferred:
Federal	$	8,075,342		$	6,184,420
State		2,233,726			1,128,730
Change in valuation allowance		(10,309,068	)		(7,313,150	)
Total deferred		-			-
Income tax provision (benefit)	$	-		$	1,600

Income taxes for the years ended December 31, 2013 and 2012, are recorded in selling, general, and administrative expenses line item in the accompanying consolidated statements of operations.

A reconciliation of income taxes computed by applying the statutory U.S. income tax rate to the Company’s loss before income taxes to the income provision is as follows:

	December 31, 2013			December 31, 2012
U.S. federal statutory tax rate		35.00	%		35.00	%
Benefit of lower tax brackets		(1.00	)%		(1.00	)%
State tax benefit, net		0.00	%		(0.02	)%
Research and development credits		0.43	%		0.00	%
Employee stock based compensation		(4.72	)%		(2.59	)%
Loss on debt conversion		0.00	%		(7.55	)%
Other		(0.08	)%		(0.04	)%
Valuation allowance		(29.63	)%		(21.03	)%
Effective income tax rate		0.00	%		2.77	%

Deferred tax assets and liabilities reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets are as follows:

	December 31, 2013			December 31, 2012
Deferred tax assets:
NOL’s	$	7,364,058		$	5,438,500
Depreciation and amortization		(340	)		-
Other		129,191			33,570
Research & development credits		563,485			473,500
Deferred stock compensation		2,252,674			1,367,580
Unrealized gain or loss on investments		-			-
Total deferred tax assets		10,309,068			7,313,150
Valuation allowance		(10,309,068	)		(7,313,150	)
Net deferred tax assets	$	-		$	-

Realization of deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain. Accordingly, the net deferred tax assets have been fully offset by a valuation allowance. The valuation allowance increased by approximately $3,000,000 and $1,100,000 in 2013 and 2012, respectively.

As of December 31, 2013, the Company had net operating loss carryforwards for federal income tax purposes of $18,950,992 which expire beginning in the year 2027 and federal research and development tax credits of $358,720 which expire beginning in the year 2026. As of December 31, 2013, the Company had net operating loss carryforwards for state income tax purposes of $15,780,906 which expire beginning in the year 2017 and state research and development tax credits of $310,249 which do not expire.

The deferred tax asset at December 31, 2013 does not include approximately $40,000 and $40,000 of excess tax benefits from employee stock option exercises and RSU vests that are a component of the federal and California net operating loss carryover, respectively. The Company’s stockholders’ equity balance will be increased if and when such excess tax benefits are ultimately realized.

Utilization of the net operating losses may be subject to substantial annual limitation due to federal and state ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such annual limitations could result in the expiration of the net operating losses ad credits before their utilization. The Company has not performed an analysis to determine the limitation of the net operating loss and research development credit carryforwards.

In June 2006, the FASB issued interpretation ASC 740-10-50 “Accounting for Uncertainty in Income Tax”. This pronouncement clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with ASC 7410-10-50. This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in the tax return. ASC 740 also provides guidance on decrecognition of tax benefits, classification on the balance sheet, interest and penalties, accounting in interim periods, disclosure and transaction. The Company adopted ASC 740-10-50 effective January 1, 2009. In accordance with ASC 740-10-50, the Company is classifying interest and penalties as a component of tax expense. There was no interest or penalties accrued at the adoption date and at December 31, 2013 and 2012.

The Company did not have any unrecognized tax benefits of as of December 31, 2013 and 2012, all of which is offset by a full valuation allowance. These unrecognized tax benefits, if recognized, would not affect the effective tax rate.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE 8. COMMITMENTS AND CONTINGENCIES

Commitments

In April 2013, the Company entered into a lease agreement for 3,874 square feet of office space from May 1, 2013 to September 30, 2016, effective May 1, 2013. Monthly rent began on May 1, 2013 in the amount of $10,406, with a 3% increase in the base rent amount on an annual basis. The lease agreement allows for the monthly rent amount to be abated for five months at various times during the lease agreement. Rent expense for the years ended December 31, 2013, 2012 and the period from Inception through December 31, 2013 was $103,191, $32,467 and $379,613, respectively. The following represents future annual minimum lease payments as of December 31, 2013:

2014	$	95,168
2015		109,131
2016		100,351
Total	$	304,650

The Company previously leased an office facility under a noncancelable operating lease, which had an expiry date of February 28, 2014, with $3,715 due monthly until expiration. In August 2013, the Company made a one-time payment of $7,000 as consideration to terminate this lease prior to its expiration date and as a result no future amounts are due under this lease.

Legal

In the ordinary course of business, the Company may face various claims brought by third parties and the Company may, from time to time, make claims or take legal actions to assert the Company’s rights, including intellectual property rights, contractual disputes and other commercial disputes. Any of these claims could subject the Company to litigation. Management believes the outcomes of currently pending claims will not likely have a material effect on the Company’s consolidated financial position and results of operations.

Indemnities and Guarantees

In addition to the indemnification provisions contained in the Company’s charter documents, the Company generally enters into separate indemnification agreements with the Company’s directors and officers. These agreements require the Company, among other things, to indemnify the director or officer against specified expenses and liabilities, such as attorneys’ fees, judgments, fines and settlements, paid by the individual in connection with any action, suit or proceeding arising out of the individual’s status or service as the Company’s director or officer, other than liabilities arising from willful misconduct or conduct that is knowingly fraudulent or deliberately dishonest, and to advance expenses incurred by the individual in connection with any proceeding against the individual with respect to which the individual may be entitled to indemnification by the Company. The Company also indemnifies its lessor in connection with its facility lease for certain claims arising from the use of the facility. These guarantees and indemnities do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has not been obligated nor incurred any payments for these obligations and, therefore, no liabilities have been recorded for these indemnities and guarantees in the accompanying consolidated balance sheets.

PCCA License Agreement

Pursuant to the terms of the PCCA License Agreement, PCCA has granted to the Company and its affiliates certain exclusive rights under PCCA’s proprietary formulations, other technologies and data, and the Company has agreed to pay to PCCA certain royalties on net sales relating to the sale of certain future products, which royalties range from 4.5% to 9% for each product, subject to certain minimum royalty payments. PCCA may terminate the PCCA License Agreement if the Company fails to commence efforts to research and develop future products within certain time periods, as set forth in the PCCA License Agreement.

PCCA Strategic Alliance Agreement

On February 18, 2013, the Company entered into a Strategic Alliance Agreement (the “Agreement”) with PCCA. Under the Agreement, PCCA has agreed that during the term of the Agreement, it will not introduce any of PCCA’s members or customers meeting certain criteria (the “Member/Customers”) to any third party whereby such third party licenses or otherwise acquires the intellectual property rights of such Member/Customer, without first presenting such an opportunity to the Company. PCCA may, but is not required to, present such opportunities to the Company, use reasonable efforts to facilitate an introductory meeting between the Member/Customer and the Company, and to further provide certain key technical assistance to a potential development project associated with the Member/Customer’s intellectual property rights. In the event the Company and a Member/Customer introduced to the Company by PCCA enter into a commercial agreement for the license or acquisition of the intellectual property rights owned by the Member/Customer, PCCA will be entitled to receive certain cash fees up to an aggregate of $100,000, as well as a commission based on net sales, if any, generated by the Company as a result of the acquired intellectual property rights. The Agreement has a term of one year and is automatically extended for successive one year periods unless either party gives the other written notice of non-renewal.

Asset Purchase Agreements

The Company has acquired intellectual property rights related to certain proprietary innovations from certain inventors (the “Pharmacies”) through multiple asset purchase agreements. The asset purchase agreements provide that the Pharmacies will cooperate with the Company in obtaining patent protection for the acquired intellectual property and that the Company will use commercially reasonable efforts to research, develop and commercialize a product based on the acquired intellectual property. In addition, the Company has acquired a right of first refusal on additional intellectual property and drug development opportunities presented by these Pharmacies.

In consideration for the acquisition of the intellectual property rights, the Company is obligated to make payments to the Pharmacies based on the completion of certain milestones, generally consisting of: (1) a payment payable within 30 days after the issuance of the first patent in the United States arising from the acquired intellectual property (if any); (2) a payment payable within 30 days after the Company files the first Investigational New Drug application (“IND”) with the FDA for the first product arising from the acquired intellectual property (if any); (3) for certain of the Pharmacies, a payment payable within 30 days after the Company files the first New Drug application with the FDA for the first product arising from the acquired intellectual property (if any); and (4) certain royalty payments based on the net receipts received by the Company in connection with the sale or licensing of any product based on the acquired intellectual property (if any), after deducting (among other things) the Company’s development costs associated with such product. If, following five years after the date of the applicable asset purchase agreement, the Company either (a) for certain of the Pharmacies, has not filed an IND or, for the remaining Pharmacies, has not initiated a study where data is derived, or (b) has failed to generate royalty payments to the Pharmacies for any product based on the acquired intellectual property, the Pharmacies may terminate the applicable asset purchase agreement and request that the Company re-assign the acquired technology to the Pharmacies.

Subsequent Events

12 Months Ended

Dec. 31, 2013

Subsequent Events [Abstract]

Subsequent Events

NOTE 9. SUBSEQUENT EVENTS

The Company has performed an evaluation of events occurring subsequent to December 31, 2013 through the issuance date of this Annual Report. Based on the Company’s evaluation, nothing other than the events described below need to be disclosed.

During January, February and March of 2014, the Company issued a total of 112,187 shares of common stock for gross proceeds of $330,854 for stock option exercises.

During March 2014, the Company issued 3,164 shares of common stock for gross proceeds of $18,747 for warrant exercises.

Pharmacy Creations Acquisition

On February 10, 2014, the Company entered into a Membership Interest Purchase Agreement (the “PC Purchase Agreement”) to acquire all of the outstanding membership interests of Pharmacy Creations, LLC (“Pharmacy Creations”) from J. Scott Karolchyk and Bernard Covalesky (the “Sellers”, and such transaction, the “PC Acquisition”). The acquisition of Pharmacy Creations, a compounding pharmacy located in Randolph, New Jersey, permits the Company to make and dispense its proprietary drug formulations and other novel pharmaceutical solutions in those states in which Pharmacy Creations is authorized to operate. The Company expects to close the PC Acquisition on April 1, 2014.

Under the PC Purchase Agreement, the Company at closing is obligated to pay to the Sellers an aggregate cash purchase price of $600,000. In addition, the Sellers are entitled to receive additional contingent consideration upon the satisfaction of certain conditions, as follows:

	●		A contingent cash payment of $50,000, payable if Pharmacy Creations earns revenue of over $3,500,000 for the 12 month period ending March 31, 2015.

	●		A contingent stock payment of up to an aggregate of 215,910 shares of our common stock, issuable only if the following revenue milestones are met:

	●		if Pharmacy Creations earns revenue of over $7,500,000 during the 12 month period ending March 31, 2016, all 215,190 shares;

	●		if Pharmacy Creations earns revenue of between $3,500,000 and $7,500,000 during the 12 month period ending March 31, 2016, an aggregate of that number of shares of our common stock equal to the amount that such revenue exceeds $3,500,000 divided by 18.5882, rounded down to the lower whole number (not to exceed 215,190 shares).

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Imprimis has prepared the accompanying consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

Principles of Consolidation

Principles of Consolidation

Development Stage Enterprise

Development Stage Enterprise

Research and Development

Research and Development

Intellectual Property

Intellectual Property

Revenue Recognition and Deferred Revenue

Revenue Recognition and Deferred Revenue

Product Revenues

License Revenues

Income Taxes

Income Taxes

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash equivalents include short-term, highly liquid investments with maturities of three months or less at the time of acquisition.

Concentrations of Credit Risk

Concentrations of Credit Risk

Deferred Offering Costs

Deferred Offering Costs

Furniture and Equipment

Furniture and Equipment

Deferred Rent

Deferred Rent

Fair Value Measurements

Fair Value Measurements

●		Level 1: Applies to assets or liabilities for which there are quoted prices (unadjusted) for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and must be used to measure fair value whenever available.

●		Level 2: Applies to assets or liabilities for which there are significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

●		Level 3: Applies to assets or liabilities for which there are significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. For example, level 3 inputs would relate to forecasts of future earnings and cash flows used in a discounted future cash flows method.

Beneficial Conversion Features and Debt Discounts

Beneficial Conversion Features and Debt Discounts

Stock-Based Compensation

Stock-Based Compensation

The Company recorded stock-based compensation expense related to equity instruments granted to employees, directors and consultants as follows:

					For the Period From
	For the Years Ended				July 24, 1998 (Inception)
	December 31,				through December 31,
	2013		2012		2013
Employees - selling, general and administrative	$	1,520,746	$	384,859	$	3,297,058
Employees - research and development		156,568		250,380		1,021,619
Directors - selling, general and administrative		399,986		1,225,350		1,748,028
Consultants - selling, general and administrative		843,301		137,745		1,788,654
Consultants - research and development		214,372		158,278		372,650
Total	$	3,134,973	$	2,156,612	$	8,228,009

Basic and Diluted Loss per Common Share

Basic and Diluted Net Loss per Common Share

The following table shows the computation of basic and diluted loss per share of common stock for the years ended December 31, 2013 and 2012:

	For the			For the
	Year Ended			Year Ended
	December 31, 2013			December 31, 2012

Net loss	$	(7,643,124	)	$	(5,383,535	)
Deemed dividend to preferred stockholders		-			(200,000	)
Numerator – net loss attributable to common stockholders	$	(7,643,124	)	$	(5,583,535	)
Denominator – weighted average number of shares outstanding, basic and diluted		8,656,822			4,493,535
Net loss per share, basic and diluted	$	(0.88	)	$	(1.24	)

Use of Estimates

Use of Estimates

Reclassifications

Reclassifications

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Recently Announced Accounting Pronouncements

Recently Announced Accounting Pronouncements

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Schedule of Stock Based Compensation and Equity Instruments

The Company recorded stock-based compensation expense related to equity instruments granted to employees, directors and consultants as follows:

					For the Period From
	For the Years Ended				July 24, 1998 (Inception)
	December 31,				through December 31,
	2013		2012		2013
Employees - selling, general and administrative	$	1,520,746	$	384,859	$	3,297,058
Employees - research and development		156,568		250,380		1,021,619
Directors - selling, general and administrative		399,986		1,225,350		1,748,028
Consultants - selling, general and administrative		843,301		137,745		1,788,654
Consultants - research and development		214,372		158,278		372,650
Total	$	3,134,973	$	2,156,612	$	8,228,009

Schedule of Basic and Diluted Earnings Per Common Share

The following table shows the computation of basic and diluted loss per share of common stock for the years ended December 31, 2013 and 2012:

	For the			For the
	Year Ended			Year Ended
	December 31, 2013			December 31, 2012

Net loss	$	(7,643,124	)	$	(5,383,535	)
Deemed dividend to preferred stockholders		-			(200,000	)
Numerator – net loss attributable to common stockholders	$	(7,643,124	)	$	(5,583,535	)
Denominator – weighted average number of shares outstanding, basic and diluted		8,656,822			4,493,535
Net loss per share, basic and diluted	$	(0.88	)	$	(1.24	)

Accounts Payable and Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following at:

	December 31, 2013		December 31, 2012
Accounts payable	$	261,924	$	342,470
Accrued offering costs		-		185,337
Deferred rent		-		2,477
Other accrued expenses		50,000		21,440
Stock-based compensation accrual		-		139,444
Total accounts payable and accrued expenses	$	311,924	$	691,168

Stockholder's Equity (Tables)

12 Months Ended

Dec. 31, 2013

Equity [Abstract]

Schedule of Stock Option Plan Activity

A summary of the Plan activity with respect to options to purchase common stock for the year ended December 31, 2013 is as follows:

	Number of shares			Weighted Avg. Exercise Price		Weighted Avg. Remaining Contractual Life		Aggregate Intrinsic Value
Options outstanding - January 1, 2013		905,806		$	5.26
Options granted		697,453		$	6.41
Options exercised		(1,030	)	$	4.00
Options cancelled/forfeited		(273,439	)	$	7.95
Options outstanding - December 31, 2013		1,328,790		$	5.31		5.91	$	140,000
Options exercisable		878,891		$	4.53		4.30	$	140,000
Options vested and expected to vest		1,283,800		$	5.26		5.80	$	140,000

Schedule of Fair Value Assumption

	Year Ended		Year Ended
	December 31, 2013		December 31, 2012
Weighted-average fair value of options granted	$	6.04	$	3.20
Expected terms (in years)		5.8 - 7		2.5 - 5.5
Expected volatility		102 - 123%		219 - 360%
Risk-free interest rate		0.86 - 2.05%		0.31 - 1.03%
Dividend yield		-		-

The table below illustrates the fair value per share determined using the Black-Scholes-Merton option pricing model with the following assumptions used for valuing options granted to consultants:

	Year Ended		Year Ended
	December 31, 2013		December 31, 2012
Weighted-average fair value of options granted	$	5.63	$	7.48
Expected terms (in years)		2.33 - 10		4.25 - 5
Expected volatility		80 - 366%		306 - 361%
Risk-free interest rate		0.30 - 2.45%		0.48 - 1.03%
Dividend yield		-		-

Schedule of Shares Outstanding and Exercisable

The following table summarizes information about stock options outstanding and exercisable at December 31, 2013:

	Options Outstanding						Options Exercisable
			Weighted
			Average		Weighted				Weighted
			Remaining		Average				Average
	Number		Contractual		Exercise		Number		Exercise
Range of Exercise Prices	Outstanding		Life in Years		Price		Exercisable		Price
$2.40-3.20		250,000		5.57	$	2.80		250,000	$	2.80
$3.60 - $4.51		662,116		4.47	$	4.13		518,335	$	4.13
$6.00 - $9.00		402,271		8.49	$	8.11		96,153	$	8.17
$10.75		7,603		3.96	$	10.75		7,603	$	10.75
28.00 - $80.00		6,800		6.13	$	40.86		6,800	$	40.86
		1,328,790		5.91	$	5.31		878,891	$	4.53

Market Based Vesting Conditions for Restricted Stock Units Granted

These market-based vesting conditions are further described below:

Tranche	Number of Shares	Target Share Price
Tranche 1	19.05% of the Baum Performance Equity Award granted	$10.00 or greater
Tranche 2	19.05% of the Baum Performance Equity Award granted	$15.00 or greater
Tranche 3	19.05% of the Baum Performance Equity Award granted	$20.00 or greater
Tranche 4	19.05% of the Baum Performance Equity Award granted	$25.00 or greater
Tranche 5	23.80% of the Baum Performance Equity Award granted	$30.00 or greater

Tranche	Number of Shares	Target Share Price
Tranche 1	20,000 shares	$10.00 or greater
Tranche 2	20,000 shares	$15.00 or greater
Tranche 3	20,000 shares	$20.00 or greater
Tranche 4	20,000 shares	$25.00 or greater
Tranche 5	20,000 shares	$30.00 or greater

Schedule of Restricted Stock Units Activity

A summary of the Company’s RSU activity and related information for the year ended December 31, 2013 is as follows:

	Number of RSUs			Weighted Average Grant Date Fair Value
RSUs outstanding - January 1, 2013		200,000		$	3.25
RSUs granted		1,403,690			3.02
RSUs vested		(40,000	)		3.25
RSUs cancelled/forfeit		(173,730	)		3.62
Balance at December 31, 2013		1,389,960		$	3.19

Schedule of Warrants Activity

A summary of the activity of the warrants for the year ended December 31, 2013 is as follows:

	Number of Shares Subject to Warrants Outstanding			Weighted Avg. Exercise Price

Warrants outstanding - January 1, 2013		556,872		$	7.66
Granted		269,860			5.97
Exercised		-
Expired		(5,682	)		176.00
Warrants outstanding and exercisable - December 31, 2013		821,050		$	5.94
Weighted average remaining contractual life of the outstanding warrants in years - December 31, 2013		2.19

Schedule of Warrants Issued

	Year Ended
	December 31, 2013
Weighted-average fair value of warrants granted	$	5.12
Expected terms (in years)		2.6-5
Expected volatility		85%-346%
Risk-free interest rate		0.32%-1.31%
Dividend yield		-

Schedule of Warrants Outstanding and Warrants Exercisable

A list of the warrants outstanding as of December 31, 2013 is included in the table below:

	Warrants Outstanding					Warrants Exercisable
		Warrants		Exercise		Warrants		Expiration
Warrant Series	Issue Date	Outstanding		Price		Exercisable		Date
DermaStar	4/25/2012		48,262	$	5.93		48,262		4/25/2015
April PPM	4/25/2012		502,928	$	5.93		502,928		4/25/2015
Underwriter Warrants	2/7/2013		179,860	$	5.25		179,860		2/7/2018
IR Consultant	2/28/2013		30,000	$	5.25		30,000		2/28/2016
IR Consultant	7/19/2013		60,000	$	8.50		-		7/19/2018
			821,050	$	5.94		761,050

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

The Company is subject to taxation in the United States and California. The provision for income taxes for the years ended December 31, 2013 and 2012 are summarized below:

	December 31, 2013			December 31, 2012
Current:
Federal	$	-		$	-
State		-			1,600
Total current	$	-		$	1,600

Deferred:
Federal	$	8,075,342		$	6,184,420
State		2,233,726			1,128,730
Change in valuation allowance		(10,309,068	)		(7,313,150	)
Total deferred		-			-
Income tax provision (benefit)	$	-		$	1,600

Schedule of Income Tax Reconciliation

A reconciliation of income taxes computed by applying the statutory U.S. income tax rate to the Company’s loss before income taxes to the income provision is as follows:

	December 31, 2013			December 31, 2012
U.S. federal statutory tax rate		35.00	%		35.00	%
Benefit of lower tax brackets		(1.00	)%		(1.00	)%
State tax benefit, net		0.00	%		(0.02	)%
Research and development credits		0.43	%		0.00	%
Employee stock based compensation		(4.72	)%		(2.59	)%
Loss on debt conversion		0.00	%		(7.55	)%
Other		(0.08	)%		(0.04	)%
Valuation allowance		(29.63	)%		(21.03	)%
Effective income tax rate		0.00	%		2.77	%

Schedule of Deferred Tax Assets and Liabilities

	December 31, 2013			December 31, 2012
Deferred tax assets:
NOL’s	$	7,364,058		$	5,438,500
Depreciation and amortization		(340	)		-
Other		129,191			33,570
Research & development credits		563,485			473,500
Deferred stock compensation		2,252,674			1,367,580
Unrealized gain or loss on investments		-			-
Total deferred tax assets		10,309,068			7,313,150
Valuation allowance		(10,309,068	)		(7,313,150	)
Net deferred tax assets	$	-		$	-

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Payments Under Leases

The following represents future annual minimum lease payments as of December 31, 2013:

2014	$	95,168
2015		109,131
2016		100,351
Total	$	304,650

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended		185 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013
Accumulated deficit during development stage	$ 31,700,000		$ 31,700,000
Revenue	10,000	$ 100,000	110,000
License revenues	10,000	100,000	110,000
Deposit coverage limits by FDIC	250,000
Cash deposits in excess of FDIC limits	15,300,000
Unrecognized tax benefits	0		0
Deferred offering costs		596,281
Depreciation expense	$ 5,659	$ 2,944	$ 11,757
Common stock equivalents, dilutive instruments	3,539,800	1,682,678	3,539,800
Minimum [Member]
Additional royalty payments based on percent of net sales	5.00%
Maximum [Member]
Additional royalty payments based on percent of net sales	7.00%

Summary of Significant Accounting Policies - Schedule of Stock Based Compensation and Equity Intruments (Details) - USD ($)	12 Months Ended		185 Months Ended	186 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2013
Compensation Expenses	$ 3,134,973	$ 2,156,612	$ 8,228,009
Employees - Selling, General And Administrative [Member]
Compensation Expenses	1,520,746	384,859		$ 3,297,058
Employees - Research And Development [Member]
Compensation Expenses	156,568	250,380		1,021,619
Directors - Selling, General And Administrative [Member]
Compensation Expenses	399,986	1,225,350		1,748,028
Consultants - Selling, General And Adminstrative [Member]
Compensation Expenses	843,301	137,745		1,788,654
Consultants - Research And Development [Member]
Compensation Expenses	$ 214,372	$ 158,278		$ 372,650

Summary of Significant Accounting Policies - Schedule of Basic and Diluted Earnings Per Common Share (Details) - USD ($)	6 Months Ended	12 Months Ended															185 Months Ended
	Dec. 31, 1998	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007	Dec. 31, 2006	Dec. 31, 2005	Dec. 31, 2004	Dec. 31, 2003	Dec. 31, 2002	Dec. 31, 2001	Dec. 31, 2000	Dec. 31, 1999	Dec. 31, 2013
Accounting Policies [Abstract]
Net loss	$ (100,000)	$ (7,643,124)	$ (5,383,535)	$ (953,936)	$ (2,531,228)	$ (4,553,636)	$ (3,304,388)	$ (4,284,540)	$ (584,232)	$ (539,622)	$ (508,226)	$ (207,196)	$ (228,217)	$ (208,420)	$ (213,092)	$ (204,000)	$ (31,447,392)
Deemed dividend to preferred stockholders			(200,000)														(300,000)
Numerator - net loss attributable to common stockholders		$ (7,643,124)	$ (5,583,535)														$ (31,747,392)
Denominator - weighted average number of shares outstanding, basic and diluted		8,656,822	4,493,535
Net loss per share, basic and diluted		$ (0.88)	$ (1.24)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=31042434&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

Restricted Short-Term Investment (Details Narrative)	Dec. 31, 2013 USD ($)
Restricted Short-Term Investment
Certificate of deposit	$ 50,097

Accounts Payable and Accrued Expenses (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Debt Disclosure [Abstract]
Restricted common stock underlying the stock-based compensation accrual		20,000
Stock-based compensation related to restricted common stock issuances and accruals	$ 143,553	$ 139,444

Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($)	Dec. 31, 2013	Dec. 31, 2012
Debt Disclosure [Abstract]
Accounts payable	$ 261,924	$ 342,470
Accrued offering costs		185,337
Deferred rent		2,477
Other accrued expenses	50,000	21,440
Stock-based compensation accrual		139,444
Total accounts payable and accrued expenses	$ 311,924	$ 691,168

Notes Payable (Details Narrative) - USD ($)									1 Months Ended					2 Months Ended	12 Months Ended				114 Months Ended	185 Months Ended
Notes Payable (Details Narrative) - USD ($)	Dec. 11, 2012	Aug. 31, 2012	Apr. 25, 2012	Apr. 20, 2012	Apr. 20, 2012	Feb. 28, 2012	Nov. 21, 2011	Apr. 05, 2010	Feb. 28, 2013	Jan. 31, 2012	Aug. 31, 2009	Sep. 30, 2007	Aug. 31, 2005	Jun. 30, 2007	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2009	Dec. 31, 2007	Dec. 31, 2007	Dec. 31, 2013	Dec. 31, 2008	May 31, 2007
Proceeds form issuance of convertible notes								$ 1,000,000					$ 226,300
Notes bearing interest rate								7.50%					4.00%
Warrants issued to exercise common stock				48,262									884
Additional paid-in capital															$ 46,849,160	$ 34,093,933		$ 241,701	$ 241,701	$ 46,849,160		$ 241,701
Interest expense on notes																12,124			$ 15,401
Notes maturity date								Apr. 05, 2012
Common stock conversion price per share								$ 40
Debt discount amortized																		$ 1,530,177
Accrued interest				$ 762,534	$ 762,534
Loss on extinguishment of debt				189,323												(1,195,410)				$ (1,195,410)
Proceeds from conversion agreement				51,940
Proceeds form line of credit							$ 750,000
Line of Credit				$ 750,000	$ 750,000
Common stock issued during the period	200	832,682		193,046	2,011,691				219		1,250	6,875					1,144
Warrants exercise price per share				$ 5.925	$ 5.925
Discount rate				0.40%
Expected warrant life				3 years
Expected volatility rate				350.00%
Expected dividends				0.00%
DermaStar [Member]
Proceeds form issuance of convertible notes						$ 1,454,962
Warrants issued to exercise common stock			48,262
Common stock conversion price per share										$ .6668
Convertible notes			$ 762,534
Percentage of notes acquired										80.00%
Accounts payable						56,087				$ 56,087
Accrued interest			$ 12,534			$ 114,082
Loss on extinguishment of debt																856,087
Percentage of ownership of the notes						80.00%
Note principal balance						$ 800,000
Common stock issued during the period			193,046
Warrants exercise price per share			$ 5.925
Mr. Ladonnikov [Member]
Proceeds form issuance of convertible notes																50,000
Interest expense on notes																12,534
Accrued interest						28,521
Loss on extinguishment of debt						150,000
Stock issued in payment of notes						$ 50,000
Stock issued in payment of notes, shares						380,868
Percentage of ownership of the notes						20.00%
Note principal balance						$ 200,000										$ 200,000
2007 Notes [Member]
Proceeds form issuance of convertible notes														$ 1,500,000
Notes bearing interest rate														7.00%
Notes maturity date														Dec. 16, 2007
Common stock conversion price per share														$ 40.00
Common stock issued in result of notes														38,254
Debt discount amortized														$ 1,530,177
Convertible notes																					$ 30,177

Stockholders' Equity (Details Narrative) - USD ($)																				1 Months Ended													2 Months Ended		3 Months Ended	12 Months Ended										185 Months Ended
Stockholders' Equity (Details Narrative) - USD ($)	Sep. 27, 2013	May 24, 2013	May 02, 2013	Feb. 13, 2013	Feb. 07, 2013	Dec. 11, 2012	Aug. 31, 2012	Jul. 18, 2012	Jun. 29, 2012	Apr. 25, 2012	Apr. 20, 2012	Apr. 20, 2012	Feb. 28, 2012	May 13, 2011	Oct. 20, 2010	Aug. 13, 2010	Apr. 05, 2010	Nov. 21, 2008	May 12, 2008	Nov. 30, 2013	Oct. 31, 2013	Sep. 30, 2013	Jul. 31, 2013	Jun. 30, 2013	Feb. 28, 2013	Jul. 31, 2012	Sep. 30, 2010	Jun. 30, 2010	Aug. 31, 2009	Sep. 30, 2007	Aug. 31, 2007	Aug. 31, 2005	Oct. 31, 2013	Mar. 31, 2013	Mar. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007	Dec. 31, 2006	Dec. 31, 2005	Dec. 31, 2000	Dec. 31, 2013	Jan. 31, 2012	Dec. 09, 2011	Nov. 21, 2011	May 31, 2007	Dec. 31, 2004	Dec. 31, 2003	Dec. 31, 2002	Dec. 31, 2001	Dec. 31, 1999	Dec. 31, 1998
Capital stock, shares authorized													400,000,000
Common stock, shares authorized													395,000,000																							395,000,000	395,000,000									395,000,000
capital contributions																																										$ 175,000	$ 400,000	$ 400,000	$ 200,000						$ 400,000	$ 200,000	$ 200,000	$ 200,000	$ 200,000	$ 100,000
Common stock issued shares						200	832,682				193,046	2,011,691													219				1,250	6,875										1,144
Proceeds form common stock																																				$ 10,052,832	$ 11,504,987									$ 29,336,911
Common stock price per share				$ 5.25		$ 4.00	$ 4.8038																		$ 4.00				$ 39.60									$ 10,000				$ 0.256		$ 0.256	$ 0.256
Capital contribution received from shareholders																																										$ 105,907
Shares issued upon exercise of stock options																																			112,187
Additional paid in capital																																				$ 46,849,160	$ 34,093,933					$ 241,701				$ 46,849,160				$ 241,701
Restricted stock shares granted to an executive																		625													4,882
Common stock, shares outstanding																																				8,970,364	6,772,066					46,249				8,970,364
Common stock sold at private placement, shares																			45,454																							51,795
Net proceeds from private placement										$ 7,930,000		$ 7,950,000							$ 3,941,301																							$ 3,837,791
Gross proceeds form issuance of private placement																			$ 4,000,000																							$ 4,143,667
Warrant issued to purchase number of common stock											502,928	502,928							5,682											469											844	12,949
Warrants exercise price											$ 5.925	$ 5.925
Placement agent fees and other related expenses																			$ 22,470																						$ 36,229	$ 342,105
Stock issued in conversion of debt																																										$ 1,530,177
Stock issued in conversion of debt, shares																																										38,254
Debt discount																																										$ 1,530,177
Fair value of warrants																														$ 550,000										$ 121,455
Common stock shares issued for services																												5,000
Common stock issued for services																												$ 208,000								$ 139,444										$ 13,944
Stock issued during period, value						$ 800	$ 3,980,000																						$ 49,500											50,356					$ 6,000
Stock-based compensation for stock options																												$ 208,000								2,841,835	2,156,612	$ 177,421		$ 388,050						$ 7,127,263
Granted restricted stock units	450,000	100,000																						6,865		450,000
Restricted stock vested immediately			200,000
Accrued interest											$ 762,534	$ 762,534
Proceeds form issuance of convertible notes																	$ 1,000,000															$ 226,300
Warrants issued to exercise common stock											48,262																					884
Common stock issued settle cashless exercise provision, shares																									1,030
Payment made on cancellation of common stock																																		$ 191
Payment made on cancellation of common stock, shares																																		35
Number of underwritten public offering common stock shares closed				1,840,000
Proceeds from public offerings				$ 8,140,435																																$ 596,281
Additional shares purchased by underwriters				276,000
Net cash proceeds from the exercise of the over-allotment option				$ 1,316,116
Stock issued during period value issued to underwriters																																		$ 179,860
Underwriting agreement description					<p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">On February 7, 2013, the Company entered into an Underwriting Agreement (the “Underwriting Agreement”) with MDB Capital Group, LLC. As contemplated by the Underwriting Agreement, at the closing of the Public Offering and the over-allotment exercise, the underwriters received warrants (the “Underwriter Warrants”) to purchase an aggregate of 179,860 shares, or 8.5% of the number of shares sold in the offering (including 8.5% of shares sold pursuant to their over-allotment option). The Underwriter Warrants are exercisable at $5.25 per share (100% of the price of the common stock sold in the offering), commencing on the effective date of the offering and expiring five years from the effective date of the offering.</font></p>
Preferred stock, authorized shares																																				5,000,000										5,000,000
Preferred stock, par value																																				$ 0.001										$ 0.001
Preferred stock, shares issued																																				0										0
Preferred stock, shares outstanding																																				0										0
Conversion price per share																	$ 40
Preferred stock dividend																																						100,000
Closing price of common stock																																				$ 3.36										$ 3.36
Unrecognized compensation expense related to unvested stock options																																				$ 17,109										$ 17,109
Restricted stock units issued			$ 1,250,000					$ 40,000												$ 10,418	$ 8,947			$ 34,325									$ 13,730			143,553	139,444
Restricted stock vest in future			1,050,000
Number of granted restricted stock units agreed to cancel																										120,000
Fair value of restricted stock units	$ 189,000							$ 130,000												$ 42,498	$ 39,814			$ 271,854
Simulation period											3 years
Volatility rate											350.00%
Stock option vesting period description			<p style="margin: 0pt"></p> <p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Of these RSUs, 200,000 vest on the third anniversary of the RSU grant based on continued service to the Company and the remaining 1,050,000 RSUs will vest based on the satisfaction of certain market-based and continued service conditions (the “Baum Performance Equity Award”).</font></p>
Remeasured fair value of restricted stock units																																				21,366										21,366
Number of restricted stock, forfeited																																	6,865
Warrants expire																								5 years	3 years
Warrants vesting period description																									<p style="margin: 0pt"></p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The warrants expire three years following the issuance date, and vest as follows: 10,000 shares vested immediately upon execution of the consulting agreement, and the remaining shares will vest in 4,000 share installments on each of the five monthly periods following the date of the consulting agreement provided the consultant continues to provide services to the Company as of the applicable vesting date.</p>
Warrant [Member]
Stock-based compensation for stock options																																				$ 468,777
Series A Convertible Preferred Stock [Member]
Preferred stock, authorized shares																																																10
Conversion price per share																																																$ 0.06668
Liquidation preference, per share																																																$ 10,000
Series A Preferred Stock [Member]
Aggregare purchase price																																																	$ 100,000
Number of stock converted into preferred stock																																																	749,850
Preferred stock dividend									$ 200,000
Number of stock converted									10
Restricted Stock Units [Member]
Number of shares, options cancelled/forfeit																																				(166,865)
Common stock shares issued for services																								40,000												40,000
Common stock issued for services																																				$ 282,997
Stock-based compensation for stock options																																				$ 484,826
Number of shares, options granted																																				3,515,090
Fair value of restricted stock units																																				$ 3,515,090
Unrecognized compensation expense related to restricted stock units																																				$ 2,773,914
Stock option vesting period description																																				<p style="margin: 0pt"></p> <p style="margin: 0pt"><font style="font-size: 10pt">The initial fair value of the 200,000 RSUs and 600,000 RSUs pursuant to the Baum Performance Equity Award granted to Mr. Baum was $3,515,090 and as of December 31, 2013, the amount of unamortized stock based compensation that has not been expensed related to the unvested RSUs grants is $2,773,914.</font></p>
Restricted Shares [Member]
Common stock shares issued for services																						2,114
Common stock issued for services																						$ 10,750
Stock Option Plan [Member]
Shares issued upon exercise of stock options																																				(1,030)
Number of shares, options cancelled/forfeit																																				(273,439)
Stock-based compensation for stock options																																				$ 1,689,756
Number of shares, options granted																																				697,453
Weighted-average remaining vesting period																																				2 years 7 months 6 days
Percentage of forfeiture of stock option grants to employees and directors																																				10.00%
Unrecognized compensation expense related to unvested stock options																																				$ 1,680,000										1,680,000
Stock Option Plan [Member]
Stock-based compensation for stock options																																					1,792,993
450,000 Restricted Stock [Member]
Unrecognized compensation expense related to restricted stock units																																				$ 156,508
Simulation period																																				3 years
Volatility rate																																				75.00%
Risk free interest rate																																				0.64%
600,000 Restricted Stock [Member]
Simulation period																																				3 years
Volatility rate																																				75.00%
Risk free interest rate																																				0.30%
100,000 Restricted Stock [Member]
Granted restricted stock units																																				100,000
Fair value of restricted stock units																																				$ 288,000
Unrecognized compensation expense related to restricted stock units																																				$ 7,140
Simulation period																																				2 years
Remeasured fair value of restricted stock units																																				$ 10,080										$ 10,080
Restricted Stock Units One [Member]
Stock-based compensation for stock options																																				822,137	363,619
Unrecognized compensation expense related to restricted stock units																																				$ 3,105,000
Simulation period																																				2 years 2 months 23 days
Warrant [Member]
Warrant issued to purchase number of common stock																							60,000		30,000
Warrants exercise price																							$ 8.50		$ 5.25
Fair value of warrants																							$ 319,786
Stock-based compensation for stock options																																					0
Warrants expire																							5 years
Warrant [Member]
Warrants expire																									3 years
Warrants vesting period description																									<p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">The warrants expire three years following the issuance date, and vest as follows: 10,000 shares vested immediately upon execution of the consulting agreement, and the remaining shares will vest in 4,000 share installments on each of the five monthly periods following the date of the consulting agreement provided the consultant continues to provide services to the Company as of the applicable vesting date.</p>
Mr. Ladonnikov [Member]
Stock issued in payment of notes, shares													380,868
Percentage of ownership of the notes													20.00%
Note principal balance													$ 200,000																								200,000
Accrued interest													$ 28,521
Proceeds form issuance of convertible notes																																					$ 50,000
DermaStar [Member]
Common stock issued shares										193,046
Warrants exercise price										$ 5.925
Percentage of ownership of the notes													80.00%
Note principal balance													$ 800,000
Accrued interest										$ 12,534			114,082
Proceeds form issuance of convertible notes													1,454,962
Accounts payable													$ 56,087																																		$ 56,087
Convertible debt										$ 762,534
Warrants issued to exercise common stock										48,262
Conversion price per share																																															$ .6668
John N Bonfiglio [Member]
Stock-based compensation for stock options																																						$ 3,332	$ 12,083
Number of shares, options granted															10,000
Granted restricted stock units														1,250	1,250
Percentage of option and restricted stock vested immediately															25.00%
Restricted stock, per share															$ 32
Restricted stock vested immediately														469
Number of stock returned to treasury and cancelled														781
Consulting Agreement [Member]
Warrant issued to purchase number of common stock																																									125
Warrants exercise price																																									$ 80
Number of shares, options cancelled/forfeit																																									2,064
Shares, options cancelled/forteited value																																									$ 135,136
Decrease value of additional paid in capital and consulting expense																																									$ 70,000
Common stock shares issued for services																											750												5,750		1,717
Common stock issued for services																											$ 27,600												$ 367,900		$ 85,833
Expense charged to additional paid in capital																																									$ (117,993)
Option issue to purchase number of common stock																5,030
Stock options exercise price																$ 42.80
Fair value of Black-Scholes Merton pricing model																$ 132,300
Stock-based compensation for stock options																																							$ 27,600
Consulting Agreement One [Member]
Option issue to purchase number of common stock																																								1,250
Stock options exercise price																																								$ 39.60
Fair value of Black-Scholes Merton pricing model																																								$ 14,434
Consulting Agreement Two [Member]
Option issue to purchase number of common stock																																								1,188
Stock options exercise price																																								$ 64.00
Fair value of Black-Scholes Merton pricing model																																								$ 56,665
Minimum [Member]
Warrants exercise price																			$ 176											$ 160											$ 160	$ 160
Granted restricted stock units			2,400,000
Weighted-average remaining vesting period																																				3 years
Target ranging price			$ 10
Granted restricted stock units per person			600,000
Minimum [Member] \| 100,000 Restricted Stock [Member]
Volatility rate																																				75.00%
Risk free interest rate																																				0.13%
Maximum [Member]
Warrants exercise price																			$ 220											$ 200											$ 200	$ 200
Granted restricted stock units			5,000,000
Weighted-average remaining vesting period																																				10 years
Target ranging price			$ 30
Granted restricted stock units per person			1,250,000
Maximum [Member] \| 100,000 Restricted Stock [Member]
Volatility rate																																				85.00%
Risk free interest rate																																				0.36%
Common Stock [Member]
Common stock issued shares																																										100,585	9,375	61,718	23,437
Proceeds form common stock																																										$ 25,750	$ 2,400	$ 15,800	$ 6,000
Common stock price per share																																										$ .256	$ .256	$ .256	$ 0.256
Additional capital contributions in cash																																											$ 48,600	$ 14,200
Shares issued upon exercise of stock options																																										195		390
Shares issued upon warrants exercise																																										781
Restricted stock shares granted to an executive																																										4,882
Net proceeds from private placement																																										$ 52
Stock issued during period, value																																													$ 23
Number of stock converted									1,499,700																												1,499,700
Aggregate number of shares																																				5,000,000										5,000,000
Common stock available for future issuance																																				2,276,688										2,276,688
Restricted stock units issued																																										$ 5
Number of restricted stock, forfeited																																						(781)

Stockholders' Equity - Schedule of Stock Option Plan Activity (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Dec. 31, 2009	Dec. 31, 2006	Dec. 31, 2005
Number of shares, Outstanding, Beginning balance	1,328,790
Number of shares, Options exercised	112,187
Number of shares, Outstanding, Ending balance		1,328,790
Weighted Avg. Exercise Price, Options exercised			$ 39.60	$ 0.256	$ 0.256
Weighted Avg. Remaining Contractual Life, Options outstanding		5 years 10 months 28 days
Stock Option Plan [Member]
Number of shares, Outstanding, Beginning balance	1,328,790	905,806
Number of shares, Options granted		697,453
Number of shares, Options exercised		(1,030)
Number of shares, Options cancelled/forfeit		(273,439)
Number of shares, Outstanding, Ending balance		1,328,790
Number of shares, Options exercisable		878,891
Number of shares, Options vested and expected to vest		1,283,800
Weighted Avg. Exercise Price, Outstanding, Beginning balance	$ 5.31	$ 5.26
Weighted Avg. Exercise Price, Options granted		6.41
Weighted Avg. Exercise Price, Options exercised		4.00
Weighted Avg. Exercise Price, Options cancelled/forfeit		7.95
Weighted Avg. Exercise Price, Outstanding, Ending balance		5.31
Exercisable Ending Balance		4.53
Vested and expected to vest - end of period		$ 5.26
Weighted Avg. Remaining Contractual Life, Options outstanding		5 years 10 months 28 days
Weighted Avg. Remaining Contractual Life, Options exercisable		4 years 3 months 18 days
Weighted Avg. Remaining Contractual Life, Options vested and expected to vest		5 years 9 months 18 days
Aggregate Intrinsic Value, Options outstanding		$ 140,000
Aggregate Intrinsic Value, Options exercisable		140,000
Aggregate Intrinsic Value, Options vested and expected to vest		$ 140,000

Stockholders' Equity - Schedule of Fair Value Assumption (Details) - $ / shares	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Options Granted To Employees [Member]
Weighted-average fair value of options granted	$ 6.04	$ 3.20
Expected volatility, minimum	102.00%	219.00%
Expected volatility, maximum	123.00%	360.00%
Risk-free interest rate, minimum	0.86%	0.31%
Risk-free interest rate, maximum	2.05%	1.03%
Dividend yield	0.00%	0.00%
Options Granted To Employees [Member] \| Minimum [Member]
Expected terms (in years)	5 years 9 months 18 days	2 years 6 months
Options Granted To Employees [Member] \| Maximum [Member]
Expected terms (in years)	7 years	5 years 6 months
Options Granted To Consultants [Member]
Weighted-average fair value of options granted	$ 5.63	$ 7.48
Expected volatility, minimum	80.00%	306.00%
Expected volatility, maximum	366.00%	361.00%
Risk-free interest rate, minimum	0.30%	0.48%
Risk-free interest rate, maximum	2.45%	1.03%
Dividend yield	0.00%
Options Granted To Consultants [Member] \| Minimum [Member]
Expected terms (in years)	2 years 3 months 29 days	4 years 3 months
Options Granted To Consultants [Member] \| Maximum [Member]
Expected terms (in years)	10 years	5 years

Stockholders' Equity - Schedule of Shares Outstanding and Exercisable (Details)	12 Months Ended
	Dec. 31, 2013 $ / shares shares
Number of Options Outstanding \| shares	1,328,790
Weighted Average Remaining Contractual Life in Years	5 years 10 months 28 days
Weighted Average Exercise Price	$ 5.31
Number Exercisable \| shares	878,891
Weighted Average Exercisable Exercise Price	$ 4.53
Range One [Member]
Range of Exercise Prices, minimum	2.40
Range of Exercise Prices, maximum	$ 3.20
Number of Options Outstanding \| shares	250,000
Weighted Average Remaining Contractual Life in Years	5 years 6 months 26 days
Weighted Average Exercise Price	$ 2.8
Number Exercisable \| shares	250,000
Weighted Average Exercisable Exercise Price	$ 2.80
Range Two [Member]
Range of Exercise Prices, minimum	3.60
Range of Exercise Prices, maximum	$ 4.51
Number of Options Outstanding \| shares	662,116
Weighted Average Remaining Contractual Life in Years	4 years 5 months 19 days
Weighted Average Exercise Price	$ 4.13
Number Exercisable \| shares	518,335
Weighted Average Exercisable Exercise Price	$ 4.13
Range Three [Member]
Range of Exercise Prices, minimum	6.00
Range of Exercise Prices, maximum	$ 9.00
Number of Options Outstanding \| shares	402,271
Weighted Average Remaining Contractual Life in Years	8 years 5 months 27 days
Weighted Average Exercise Price	$ 8.11
Number Exercisable \| shares	96,153
Weighted Average Exercisable Exercise Price	$ 8.17
Range Four [Member]
Range of Exercise Prices, minimum
Range of Exercise Prices, maximum	$ 10.75
Number of Options Outstanding \| shares	7,603
Weighted Average Remaining Contractual Life in Years	3 years 11 months 16 days
Weighted Average Exercise Price	$ 10.75
Number Exercisable \| shares	7,603
Weighted Average Exercisable Exercise Price	$ 10.75
Range Five [Member]
Range of Exercise Prices, minimum	28.00
Range of Exercise Prices, maximum	$ 80.00
Number of Options Outstanding \| shares	6,800
Weighted Average Remaining Contractual Life in Years	6 years 1 month 17 days
Weighted Average Exercise Price	$ 40.86
Number Exercisable \| shares	6,800
Weighted Average Exercisable Exercise Price	$ 40.86

Stockholders' Equity - Market-based Vesting Conditions for Restricted Stock Units Granted (Details)	12 Months Ended
	Dec. 31, 2013 shares
Tranche 1 CEO [Member]
Percentage of Number of Shares Granted	19.05%
Target Share Price	$10.00 or greater
Tranche 2 CEO [Member]
Percentage of Number of Shares Granted	19.05%
Target Share Price	$15.00 or greater
Tranche 3 CEO [Member]
Percentage of Number of Shares Granted	19.05%
Target Share Price	$20.00 or greater
Tranche 4 CEO [Member]
Percentage of Number of Shares Granted	19.05%
Target Share Price	$25.00 or greater
Tranche 5 CEO [Member]
Percentage of Number of Shares Granted	23.80%
Target Share Price	$30.00 or greater
Consultant Tranche 1 [Member]
Number of Shares	20,000
Target Share Price	$10.00 or greater
Consultant Tranche 2 [Member]
Number of Shares	20,000
Target Share Price	$15.00 or greater
Consultant Tranche 3 [Member]
Number of Shares	20,000
Target Share Price	$20.00 or greater
Consultant Tranche 4 [Member]
Number of Shares	20,000
Target Share Price	$25.00 or greater
Consultant Tranche 5 [Member]
Number of Shares	20,000
Target Share Price	$30.00 or greater

Stockholders' Equity - Schedule of Restrited Stock Units Activity (Details) - Restricted Stock Units [Member]	12 Months Ended
	Dec. 31, 2013 $ / shares shares
Number of RSUs, Outstanding, Beginning balance \| shares	200,000
Number of RSUs granted \| shares	1,403,690
Number of RSUs vested \| shares	(40,000)
Number of RSUs cancelled/forfeit \| shares	(173,730)
Number of RSUs, Outstanding, Ending balance \| shares	1,389,960
Weighted Average Grant Date Fair Value, Beginning balance \| $ / shares	$ 3.25
Weighted Average Grant Date Fair Value, RSUs granted \| $ / shares	3.24
Weighted Average Grant Date Fair Value, RSUs vested \| $ / shares	3.25
Weighted Average Grant Date Fair Value, RSUs cancelled/forfeit \| $ / shares	3.62
Weighted Average Grant Date Fair Value, Ending balance \| $ / shares	$ 3.19

Stockholders' Equity - Schedule of Warrants Activity (Details) - Warrant [Member]	12 Months Ended
	Dec. 31, 2013 $ / shares shares
Number of shares, Outstanding, Beginning balance \| shares	556,872
Number of Shares Subject to Warrants Outstanding, Granted \| shares	269,860
Number of Shares Subject to Warrants Outstanding, Exercised \| shares
Number of Shares Subject to Warrants Outstanding, Expired \| shares	(5,682)
Number of shares, Outstanding, Ending balance \| shares	821,050
Weighted average remaining contractual life of the outstanding warrants in years	2 years 2 months 9 days
Weighted Avg. Exercise Price, Outstanding, Beginning balance \| $ / shares	$ 7.66
Weighted Avg. Exercise Price, Granted \| $ / shares	5.97
Weighted Avg. Exercise Price, Exercised \| $ / shares
Weighted Avg. Exercise Price, Expired \| $ / shares	176.00
Weighted Avg. Exercise Price, Outstanding, Ending balance \| $ / shares	$ 5.94

Stockholders' Equity - Schedule of Warrants Issued (Details) - Warrant [Member]	12 Months Ended
	Dec. 31, 2013 $ / shares
Weighted-average fair value of awards granted	$ 5.12
Expected volatility, minimum	85.00%
Expected volatility, maximum	346.00%
Risk-free interest rate, minimum	0.32%
Risk-free interest rate, maximum	1.31%
Dividend yield
Minimum [Member]
Expected terms	2 years 7 months 6 days
Maximum [Member]
Expected terms	5 years

Stockholders' Equity - Schedule of Warrants Outstanding and Warrants Exercisable (Details)	Dec. 31, 2013 $ / shares shares
DermaStar [Member]
Issue Date	Apr. 25, 2012
Warrants Outstanding	48,262
Exercise Price \| $ / shares	$ 5.93
Warrants Exercisable	48,262
Expiration Date	Apr. 25, 2015
April PPM [Member]
Issue Date	Apr. 25, 2012
Warrants Outstanding	502,928
Exercise Price \| $ / shares	$ 5.93
Warrants Exercisable	502,928
Expiration Date	Apr. 25, 2015
Underwriter Warrants [member]
Issue Date	Feb. 07, 2013
Warrants Outstanding	179,860
Exercise Price \| $ / shares	$ 5.25
Warrants Exercisable	179,860
Expiration Date	Feb. 07, 2018
IR Consultant 1 [Member]
Issue Date	Feb. 28, 2013
Warrants Outstanding	30,000
Exercise Price \| $ / shares	$ 5.25
Warrants Exercisable	30,000
Expiration Date	Feb. 28, 2016
IR Consultant 2 [Member]
Issue Date	Jul. 19, 2013
Warrants Outstanding	60,000
Exercise Price \| $ / shares	$ 8.50
Warrants Exercisable
Expiration Date	Jul. 19, 2018
Warrant [Member]
Warrants Outstanding	821,050
Exercise Price \| $ / shares	$ 5.94
Warrants Exercisable	761,050

Income Taxes (Details Narrative) - USD ($)	12 Months Ended
Income Taxes (Details Narrative) - USD ($)	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Deferred tax asset valuation allowance	$ 3,000,000	$ 1,100,000
Federal net operating loss carryforwards	18,950,922
State net operating loss carryforwards	$ 15,780,906
Federal net operating loss expiration date	2027
State net operating loss expiration date	2017
Federal research and development tax credits	$ 358,720
State research and development tax credits	$ 310,249
Federal research and development tax credits expiration date	2026
Deferrerd tax asset	$ 40,000
Deferrerd tax asset excess tax benefits	$ 40,000

Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Federal
State		1,600
Total current		1,600
Federal	8,075,342	6,184,420
State	2,233,726	1,128,730
Change in valuation allowance	(10,309,068)	(7,313,150)
Total deferred
Income tax provision (benefit)		$ 1,600

Income Taxes - Schedule of Income Tax Teconciliation (Details)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
U.S. federal statutory tax rate	(35.00%)	(35.00%)
Benefit of lower tax brackets	(1.00%)	(1.00%)
State tax benefit, net	0.00%	(0.02%)
Research and development credits	0.43%	0.00%
Employee stock based compensation	(4.72%)	(2.59%)
Loss on debt conversion	0.00%	7.55%
Other	0.08%	(0.04%)
Valuation allowance	(29.63%)	21.03%
Effective income tax rate	0.00%	2.77%

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
NOL's	$ 7,364,058	$ 5,438,500
Depreciation and amortization	(340)
Other	129,191	33,570
Research & development credits	563,485	473,500
Deferred stock compensation	2,252,674	1,367,580
Unrealized gain or loss on investments
Total deferred tax assets	10,309,068	7,313,150
Valuation allowance	(10,309,068)	(7,313,150)
Net deferred tax assets

Commitments and Contingencies (Details Narrative)	1 Months Ended		12 Months Ended		185 Months Ended
Commitments and Contingencies (Details Narrative)	Aug. 31, 2013 USD ($)	Apr. 30, 2013 USD ($) ft²	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2013 USD ($)	Feb. 18, 2013 USD ($)
Lease agreement for office space (Square feet) \| ft²		3,874
Operating lease Expiry		Sep. 30, 2016	Feb. 28, 2014
Operating lease, monthly rental		$ 10,406	$ 3,715
Operating lease, rent increase percentage		3.00%
Rent expense			$ 103,191	$ 32,467	$ 379,613
One time payment for acquire lease	$ 7,000
Maximum aggregate value of cash fees						$ 100,000
Minimum [Member]
Royalties range percentage			4.50%		4.50%
Maximum [Member]
Royalties range percentage			9.00%		9.00%

Commitments and Contingencies - Schedule of Future Payments Under Leases (Details)	Dec. 31, 2013 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2014	$ 95,168
2015	109,131
2016	100,351
Total	$ 304,650

Subsequent Events (Details Narrative) - USD ($)			3 Months Ended	12 Months Ended
Subsequent Events (Details Narrative) - USD ($)	Mar. 31, 2014	Feb. 10, 2014	Mar. 31, 2014	Dec. 31, 2013	Dec. 31, 2005
Shares issued upon exercise of stock options			$ 330,854		$ 100
Shares issued upon exercise of stock options			112,187
Payment of cash to contigent				$ 50,000
Minimum revenue for contingent payment				$ 3,500,000
Contigent stock payment				215,910
Contingencies One [Member]
Condition for contigent stock payment				<p style="margin: 0"><font style="font-size: 10pt">if Pharmacy Creations earns revenue of over $7,500,000 during the 12 month period ending March 31, 2016, all 215,190 shares;</font></p>
Contingencies Two [Member]
Condition for contigent stock payment				<p style="margin: 0"><font style="font-size: 10pt">if Pharmacy Creations earns revenue of between $3,500,000 and $7,500,000 during the 12 month period ending March 31, 2016, an aggregate of that number of shares of our common stock equal to the amount that such revenue exceeds $3,500,000 divided by 18.5882, rounded down to the lower whole number (not to exceed 215,190 shares).</font></p>
Subsequent Event [Member]
Payement of cash purchase price		$ 600,000
Warrant [Member]
Shares issued upon exercise of stock options	$ 18,747
Shares issued upon exercise of stock options	3,164