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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2014	Nov. 11, 2014
Document And Entity Information
Entity Registrant Name	Imprimis Pharmaceuticals, Inc.
Entity Central Index Key	0001360214
Document Type	10-Q
Document Period End Date	Sep. 30, 2014
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		9,255,316
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2014

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2014	Dec. 31, 2013
Current assets
Cash and cash equivalents	$ 10,363,603	$ 15,579,309
Restricted short-term investments	150,208	50,097
Accounts receivable, net	68,311
Inventories	351,202
Prepaid expenses and other current assets	335,654	105,067
Total current assets	11,268,978	15,734,473
Intangible assets, net	627,843
Goodwill	331,621
Furniture and equipment, net	179,141	26,892
TOTAL ASSETS	12,407,583	15,761,365
Current liabilities
Accounts payable and accrued expenses	804,183	311,924
Accrued payroll and related liabilities	715,746	338,703
Customer deposits	2,006
Current portion of contingent acquisition obligations	31,466
Current portion of capital lease obligations	23,858
Total current liabilities	1,577,259	650,627
Capital lease obligations, net of current portion	25,092
Accrued expenses, net of current portion	38,173
Contingent acquisition obligations, net of current portion	483,156
TOTAL LIABILITIES	2,123,680	650,627
Commitments and contingencies
STOCKHOLDERS' EQUITY
Common stock, $0.001 par value, 90,000,000 shares authorized, 9,246,551 and 8,970,364 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively	9,247	8,970
Additional paid-in capital	49,394,871	46,849,160
Accumulated deficit	(39,120,215)	(31,747,392)
TOTAL STOCKHOLDERS' EQUITY	10,283,903	15,110,738
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 12,407,583	$ 15,761,365

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	90,000,000	90,000,000
Common stock, shares issued	9,246,551	8,970,364
Common stock, shares outstanding	9,246,551	8,970,364

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenues:
Sales, net	$ 439,369		$ 1,103,739
License revenues	1,661	2,500	6,402	7,500
Total revenues	441,030	2,500	1,110,141	7,500
Cost of sales	(238,951)		(715,500)
Gross profit	202,079	2,500	394,641	7,500
Operating expenses:
Selling and marketing	636,550		1,462,446
General and administrative	1,953,875	1,622,924	6,163,130	4,199,018
Research and development	70,098	469,480	165,821	1,601,927
Total operating expenses	2,660,523	2,092,404	7,791,397	5,800,945
Loss from operations	(2,458,444)	(2,089,904)	(7,396,756)	(5,793,445)
Other income (expense):
Interest expense	(993)		(2,558)
Interest income	7,502	12,440	26,491	32,448
Total other income, net	6,509	12,440	23,933	32,448
Net loss	$ (2,451,935)	$ (2,077,464)	$ (7,372,823)	$ (5,760,997)
Basic and diluted net loss per share of common stock	$ (0.27)	$ (0.23)	$ (0.81)	$ (0.67)
Weighted average number of shares of common stock outstanding, basic and diluted	9,154,172	8,961,678	9,092,065	8,551,159

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (7,372,823)	$ (5,760,997)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of furniture and equipment	19,545	3,481
Amortization of intangible assets	31,157
Stock-based compensation and payments	1,951,333	2,326,961
Changes in assets and liabilities, net of effects from acquisitions:
Accounts receivable	(9,891)
Inventories	(138,012)
Prepaid expenses and other current assets	(226,980)	(258,034)
Accounts payable and accrued expenses	372,210	229,563
Accrued payroll and related liabilities	379,741	256,367
Customer deposits	(10,310)
Deferred revenue		2,500
NET CASH USED IN OPERATING ACTIVITIES	(5,004,030)	(3,200,159)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of restricted short-term investments	(100,111)	(50,000)
Purchase of Pharmacy Creations, LLC, net of cash and advances	(636,374)
Purchases of furniture and equipment	(91,934)	(10,480)
NET CASH USED IN INVESTING ACTIVITIES	(828,419)	(60,480)
CASH FLOWS FROM FINANCING ACTIVITIES
Cancelled common stock		(191)
Payments on capital lease obligation	(4,561)
Net proceeds from exercise of warrants and stock options	621,304
Proceeds from issuance of common stock and warrants for cash, net of offering costs		10,052,832
NET CASH PROVIDED BY FINANCING ACTIVITIES	616,743	10,052,641
NET CHANGE IN CASH AND CASH EQUIVALENTS	(5,215,706)	6,792,002
CASH AND CASH EQUIVALENTS, beginning of period	15,579,309	10,035,615
CASH AND CASH EQUIVALENTS, end of period	10,363,603	16,827,617
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for income taxes	800	1,600
Cash paid for interest	2,558
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
Reclassification of deferred offering costs in connection with equity offering		596,281
Issuance of common stock for consulting services included in accounts payable and accrued expenses		319,786
Purchase of furniture and equipment with a capital lease	$ 35,350

Overview, Basis of Presentation and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Overview, Basis of Presentation and Summary of Significant Accounting Policies

NOTE 1. OVERVIEW, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Company and Background

Imprimis Pharmaceuticals, Inc. (together with its subsidiary, unless the context indicates or otherwise requires, “Imprimis” or the “Company”) is a specialty pharmaceutical company dedicated to delivering high quality and novel medicines to physicians and patients at accessible prices. Imprimis is pioneering a commercial pathway using compounding pharmacies for the formulation and the prescription fulfillment of its proprietary drug therapies, which include formulations in ophthalmology and urology.

On April 1, 2014, the Company acquired Pharmacy Creations, LLC (“PC”), a New Jersey based compounding pharmacy. Effective with this acquisition, the Company commenced sales and marketing efforts for Imprimis’ portfolio of proprietary and non-proprietary compounded drug formulations.

Basis of Presentation

Imprimis has prepared the accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, all adjustments (consisting of only normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014 or for any other period. For further information, refer to the Company’s audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013.

The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation.

Business Combinations

The Company accounts for business combinations by recognizing the assets acquired, liabilities assumed, contractual contingencies, and contingent consideration at their fair values on the acquisition date. The purchase price allocation process requires management to make significant estimates and assumptions at the acquisition date, especially with respect to intangible assets, estimated contingent consideration payments and pre-acquisition contingencies. Examples of critical estimates in valuing certain of the intangible assets we have acquired or may acquire in the future include but are not limited to:

	●	future expected cash flows from product sales, support agreements, consulting contracts, other customer contracts, and acquired developed technologies and patents; and

	●	discount rates utilized in valuation estimates.

Unanticipated events and circumstances may occur that may affect the accuracy or validity of such assumptions, estimates or actual results. Additionally, any change in the fair value of the acquisition-related contingent consideration subsequent to the acquisition date, including changes from events after the acquisition date, such as changes in our estimate of relevant revenue or other targets, will be recognized in earnings in the period of the estimated fair value change. A change in fair value of the acquisition-related contingent consideration or the occurrence of events that cause results to differ from our estimates or assumptions could have a material effect on the consolidated financial position, results of operations, or cash flows in the period of the change in the estimate.

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, 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 the Company has not identified an alternative future use for the acquired rights, and are capitalized in situations where the Company has identified an alternative future use for the acquired rights. 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 recognizes 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 began generating revenues upon the acquisition of PC in the second quarter of 2014, which includes sales of certain of our proprietary compounded drug formulations.

Product Revenues

Determination of criteria (3) and (4) is based on management’s judgments regarding the fixed nature of the selling prices of the products delivered and the collectability of those amounts. Estimated returns and allowances and other adjustments are provided for in the same period during which the related sales are recorded. The Company will defer any revenue received for a product that has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered and 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 fees that are not contingent on any future performance by the Company and require no consequential continuing involvement on the part of the Company, are recognized as revenue when the license term commences and the licensed data, technology and/or compounded drug preparation are delivered. Such deliverables may include physical quantities of compounded drug preparations, design of the compounded drug preparations and structure-activity relationships, the conceptual framework and mechanism of action, and rights to the patents or patent applications for such compounded drug preparations. The Company defers recognition of non-refundable fees if it has 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 and are separate and independent of the Company’s performance under the other elements of the arrangement. In addition, if the Company’s continued involvement is required, through research and development services that are related to its proprietary know-how and expertise of the delivered technology or can only be performed by the Company, then such non-refundable 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.

Cost of Sales

Cost of sales includes direct and indirect costs to manufacture formulations and products sold, including active pharmaceutical ingredients, personnel costs, packaging, storage, royalties (see Note 11), shipping and handling costs and the write-off of obsolete inventory.

Income Taxes

The Company accounts for income taxes under the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740, “Income Taxes”, or ASC 740. As of September 30, 2014, there were no unrecognized tax benefits included in the condensed consolidated balance sheet 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 condensed consolidated balance sheets at September 30, 2014 or December 31, 2013, and has not recognized interest and/or penalties in the condensed consolidated statements of operations for the periods ended September 30, 2014 and 2013. The Company is subject to taxation in the United States and California. The Company’s tax years since 2000 are subject to examination by the federal and state tax authorities due to the carryforward 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 up to $250,000 per owner. At September 30, 2014, the Company had approximately $10 million in cash deposits in excess of FDIC limits.

Accounts Receivable

The balance in accounts receivable consists of revenue amounts the Company has invoiced and recognized, but for which payment has not been received. Accounts receivable are presented net of an allowance for doubtful accounts in the amount of $3,957 as of September 30, 2014.

Inventories

Inventories are stated at the lower of cost or market. Cost is determined on a first-in, first-out basis. The Company evaluates the carrying value of inventories on a regular basis, based on the price expected to be obtained for products in their respective markets compared with historical cost. Write-downs of inventories are considered to be permanent reductions in the cost basis of inventories.

The Company also regularly evaluates its inventories for excess quantities and obsolescence (expiration), taking into account such factors as historical and anticipated future sales or use in production compared to quantities on hand and the remaining shelf life of products and active pharmaceutical ingredients on hand. The Company establishes reserves for excess and obsolete inventories as required based on its analyses.

Furniture and Equipment

Furniture and equipment is stated at cost less accumulated depreciation and amortization. Depreciation and amortization is calculated using the straight-line method over the estimated useful life of the asset. Leasehold improvements are amortized over the estimated useful life or remaining lease term, whichever is shorter. Computer software and hardware and furniture and equipment are depreciated over three to five years.

Goodwill and Intangible Assets

The Company reviews its goodwill and indefinite-lived intangible assets for impairment as of January 1 of each year and when an event or a change in circumstances indicates the fair value of a reporting unit may be below its carrying amount. Events or changes in circumstances considered as impairment indicators include but are not limited to the following:

	●	significant underperformance of the Company’s business relative to expected operating results;

	●	significant adverse economic and industry trends;

	●	significant decline in the Company’s market capitalization for an extended period of time relative to net book value; and

	●	expectations that a reporting unit will be sold or otherwise disposed.

The goodwill impairment test consists of a two-step process as follows:

Step 1. The Company compares the fair value of each reporting unit to its carrying amount, including the existing goodwill. The fair value of each reporting unit is determined using a discounted cash flow valuation analysis. The carrying value of each reporting unit is determined by specifically identifying and allocating the assets and liabilities to each reporting unit based on headcount, relative revenues, or other methods as deemed appropriate by management. If the carrying amount of a reporting unit exceeds its fair value, an indication exists that the reporting unit’s goodwill may be impaired and the Company then performs the second step of the impairment test. If the fair value of a reporting unit exceeds its carrying amount, no further analysis is required.

Step 2. If further analysis is required, the Company compares the implied fair value of the reporting unit’s goodwill, determined by allocating the reporting unit’s fair value to all of its assets and its liabilities in a manner similar to a purchase price allocation, to its carrying amount. If the carrying amount of the reporting unit’s goodwill exceeds its fair value, an impairment loss will be recognized in an amount equal to the excess.

Impairment of Long-Lived Assets

Long-lived assets, such as furniture and equipment and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the consolidated balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposal group classified as held-for-sale would be presented separately in the appropriate asset and liability sections of the consolidated balance sheet, if material.

During the three and nine months ended September 30, 2014 and 2013, the Company did not recognize any impairment of long-lived assets.

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 and interim periods within 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 September 30, 2014 and December 31, 2013, the Company did not have any financial assets or liabilities that are measured on a recurring basis. At September 30, 2014 and December 31, 2013, the Company’s financial instruments included cash and cash equivalents, restricted short-term investments, accounts receivable, accounts payable and accrued expenses, accrued payroll and related liabilities, customer deposits, and capital leases. The carrying amount of these financial instruments, except for the restricted short-term investments and the capital leases, approximates fair value due to the short-term maturities of these instruments. The Company’s restricted short-term investments are carried at amortized cost, which approximates fair value. Based on borrowing rates currently available to the Company, the carrying values of the capital leases approximate their respective fair values.

Stock-Based Compensation

All stock-based payments to employees, directors and consultants, including grants of stock options, warrants, restricted stock units (“RSUs”) and restricted stock, are recognized in the condensed 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 the vesting terms. The measurement date for the fair value of the equity instruments issued is 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.

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 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” method) from convertible notes, stock options, RSUs and warrants were 3,053,649 and 3,451,964 at September 30, 2014 and 2013, respectively, and are excluded from the calculation of diluted net loss per share for all periods presented because the effect is anti-dilutive. Common stock equivalents include 20,595 shares of common stock underlying RSUs at September 30, 2014, awarded to directors that have vested but the issuance and delivery of these shares are deferred until the director resigns.

The following table shows the computation of basic and diluted net loss per share of common stock for the three and nine months ended September 30, 2014 and 2013:

	For the			For the			For the			For the
	Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended
	September 30, 2014			September 30, 2013			September 30, 2014			September 30, 2013

Numerator – net loss	$	(2,451,935	)	$	(2,077,464	)	$	(7,372,823	)	$	(5,760,997	)
Denominator – weighted average number of shares outstanding, basic and diluted		9,154,172			8,961,678			9,092,065			8,551,159
Net loss per share, basic and diluted	$	(0.27	)	$	(0.23	)	$	(0.81	)	$	(0.67	)

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, allowance for doubtful accounts, valuation of deferred taxes, goodwill and intangible assets, recoverability of long-lived assets and goodwill, valuation of contingent acquisition obligations, 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 condensed consolidated financial statements for the three and nine months ended September 30, 2014. The Company has classified in these financial statements certain expenses as selling and marketing, whereas in prior periods certain of these expenses were included in an expense line item titled selling, general and administrative in the condensed consolidated statements of operations. 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 June 2014, the FASB issued ASU No. 2014-10, “Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities”. The amendments in this update 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 amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of operations, cash flows, and stockholder’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) disclose 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. These amendments are effective for annual reporting periods beginning after December 15, 2014, with early application of the amendments permitted. The Company’s pharmacy operations commenced on April 1, 2014. This change in the nature of the Company’s operations included the recognition of operating revenues; as a result, the Company is no longer defined as a development stage company for reporting dates beginning April 1, 2014. With the change in the Company’s operations, its revenue recognition and its immediate adoption of ASU No. 2014-10, the Company no longer presents or discloses any information required under ASC Topic 915.

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). The objective of ASU 2014-19 is to establish a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle of ASU 2014-09 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the new guidance, an entity will (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the contract’s performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 applies to all contracts with customers except those that are within the scope of other topics in the FASB ASC. The new guidance is effective for annual reporting periods, including interim periods within those periods, beginning after December 15, 2016 for public companies. Early adoption is not permitted. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its condensed consolidated financial statements.

In August 2014, the FASB issued new accounting guidance which defines management’s responsibility to assess an entity’s ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. This guidance will be effective for annual periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its condensed consolidated financial statements.

Acquisition - Pharmacy Creations, LLC

9 Months Ended

Sep. 30, 2014

Business Combinations [Abstract]

Acquisition - Pharmacy Creations, LLC

NOTE 2. ACQUISITION – PHARMACY CREATIONS, LLC

On April 1, 2014, the Company acquired all of the outstanding membership interests of PC (the “PC Acquisition”) from J. Scott Karolchyk and Bernard Covalesky (the “Sellers”), such that PC became a wholly-owned subsidiary of the Company. The acquisition of PC permits the Company to make and distribute its patent-pending proprietary drug formulations and other pharmaceutical preparations.

The transaction has been accounted for as a business combination and the financial results of PC have been included in the Company’s condensed consolidated financial statements for the period subsequent to its acquisition.

The estimated acquisition date fair value of consideration transferred, assets acquired and liabilities assumed for PC are presented below and represent the Company’s best estimates.

Fair Value of Consideration Transferred

At the closing of the PC Acquisition, the Company paid 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 PC 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 215,190 shares of the Company’s common stock, issuable only if the following revenue milestones are met:

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

	●	if the Company 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 Imprimis 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).

Although management estimates that certain of the contingent consideration will be paid, it has applied a discount rate to the contingent consideration amounts in determining fair value to represent the risk of these payments not being made. The total acquisition date fair value of the consideration to be transferred is estimated at approximately $1.1 million, as follows:

Cash payment to sellers at closing	$	600,000
Contingent common stock issuance to the Sellers		483,156
Contingent cash consideration to the Sellers		31,466
Total acquisition date fair value	$	1,114,622

A liability was recognized for the estimated acquisition date fair value of the future contingent common stock and cash payments and is included in the contingent acquisition obligations in the accompanying condensed consolidated balance sheet at September 30, 2014.

Allocation of Consideration Transferred

The identifiable assets acquired and liabilities assumed were recognized and measured as of the acquisition date based on their estimated fair values as of April 1, 2014, the acquisition date. The excess of the acquisition date fair value of consideration transferred over estimated fair value of the net tangible assets and intangible assets acquired was recorded as goodwill.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date.

Cash and cash equivalents	$	4,982
Accounts receivable		58,420
Prepaid expenses and other assets		30,256
Inventory		213,190
Property and equipment		44,510
Intangible assets		659,000
Total identifiable assets acquired		1,010,358
Accounts payable and accrued liabilities		120,049
Other liabilities		107,308
Total liabilities assumed		227,357
Total identifiable assets less liabilities assumed		783,001
Goodwill		331,621

Net assets acquired	$	1,114,622

The fair value adjustments made herein and the allocation of purchase price is preliminary. The final allocation will be based on estimates and appraisals that will be finalized within one year of the closing of the PC Acquisition and based on the Company’s final evaluation of PC’s assets and liabilities, including both tangible and intangible assets. The final allocation of purchase price and the resulting effect on net income (loss) may differ from the amounts included herein. If the Company’s final purchase price allocation differs from the allocation used in preparing these condensed consolidated financial statements, the Company’s tangible and intangible assets and net loss could be higher or lower than the amounts presented in these condensed consolidated financial statements.

Results of Operations

The amount of revenues and operating loss of PC included in the Company’s condensed consolidated statement of operations from the acquisition date through the period ended September 30, 2014 are as follows:

Total revenues		$	1,103,739
Operating loss		$	(549,960	)

Pro Forma Financial Information

The following table presents the Company’s unaudited pro forma results (including PC) for the three and nine months ended September 30, 2014 and 2013 as though the companies had been combined as of the beginning of each of the periods presented. The pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of each period presented, nor is it indicative of results of operations which may occur in the future. The unaudited pro forma results presented include amortization charges for intangible assets and eliminations of intercompany transactions.

	For the			For the			For the			For the
	Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended
	September 30, 2014			September 30, 2013			September 30, 2014			September 30, 2013
Total revenues	$	441,030		$	708,890		$	1,732,576		$	2,166,941
Net loss	$	(2,451,935	)	$	(1,936,759	)	$	(7,284,019	)	$	(5,276,808	)

The Company did not incur material acquisition expenses related to the PC Acquisition.

Intangible Assets

Management engaged a third-party valuation firm to assist in the determination of the fair value of the acquired intangible assets of PC. In determining the fair value of the intangible assets, the Company considered, among other factors, the best use of acquired assets, analyses of historical financial performance of PC and estimates of future performance of PC. The fair values of the identified intangible assets related to PC’s customer relationships, trade name, non-competition covenant, and state pharmacy licenses. The fair value of customer relationships and the non-competition covenant were calculated using the income approach. The fair value of the trade name and state pharmacy licenses were calculated using the cost approach. The following table sets forth the components of identified intangible assets associated with the PC acquisition and their estimated useful lives.

	Fair Value		Useful Life
Customer relationships	$	596,000	10 - 15 years
Trade Name		5,000	5 years
Non-competition covenant		50,000	4 years
State pharmacy licenses		8,000	25 years
	$	659,000

The Company determined the useful lives of intangible assets based on the expected future cash flows and contractual lives associated with the respective asset. Trade names represent the fair value of the brand and name recognition associated with the marketing of PC’s formulations and services. Customer relationships represent the expected benefit from customer contracts that, at the date of acquisition, were reasonably anticipated to continue given the history and operating practices of PC. The non-competition covenant represents the contractual period and expected degree of adverse economic impact that would exist in its absence. Licenses represent eight state pharmacy licenses PC held at the date of acquisition.

Goodwill

Of the total estimated purchase price, $331,621 was allocated to goodwill and is attributable to expected synergies between the combined companies, including access for the Company to fulfill prescriptions with its patent-pending proprietary drug formulations through PC’s market channels and assembled workforce. Goodwill represents the excess of the purchase price of the acquired business over the estimated fair value of the underlying net tangible and intangible assets acquired. Goodwill resulting from the PC Acquisition will be tested for impairment at least annually and more frequently if certain indicators of impairment are present. In the event the Company determines that the value of goodwill has become impaired, it will incur an accounting charge for the amount of the impairment during the fiscal quarter in which the determination is made. None of the goodwill is expected to be deductible for income tax purposes.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Restricted Short-Term Investment

9 Months Ended

Sep. 30, 2014

Restricted Short-term Investment

Restricted Short-Term Investment

NOTE 3. RESTRICTED SHORT-TERM INVESTMENTS

The restricted short-term investments at September 30, 2014 and December 31, 2013 consist of certificates of deposit, which are classified as held-to-maturity. At September 30, 2014 and December 31, 2013, the restricted short-term investments were recorded at amortized cost, which approximates fair value.

At September 30, 2014 and December 31, 2013, the certificates of deposit of $150,208 and $50,097, respectively, were classified as a current asset. These certificates of deposit are required as collateral under the Company’s corporate credit card agreement and additional security for the Company’s office space lease, and automatically renew every twelve months.

Inventories

9 Months Ended

Sep. 30, 2014

Inventory Disclosure [Abstract]

Inventories

NOTE 4. INVENTORIES

Inventories are comprised of over-the-counter (“OTC”) retail pharmacy products, commercial pharmaceutical products, related laboratory supplies and active pharmaceutical ingredients. The composition of inventories as of September 30, 2014 was as follows:

	September 30, 2014

Raw materials	$	176,131
Finished goods		175,071
Total inventory	$	351,202

Prepaid Expenses and Other Current Assets

9 Months Ended

Sep. 30, 2014

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepaid Expenses and Other Current Assets

NOTE 5. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consisted of the following:

	September 30, 2014		December 31, 2013

Prepaid stock-based consulting expenses	$	-	$	26,649
Prepaid rent		5,826		16,288
Prepaid insurance		202,954		39,166
Other prepaid expenses and deposits		126,874		22,964
Total prepaid expenses and other current assets	$	335,654	$	105,067

Intangible Assets and Goodwill

9 Months Ended

Sep. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

NOTE 6. INTANGIBLE ASSETS AND GOODWILL

The Company’s intangible assets at September 30, 2014 consisted of the following:

	Amortization				Accumulated			Net
	periods		Cost		amortization			Carrying value
Customer relationships		10-15 years	$	596,000	$	(23,337	)	$	572,663
Trade name		5 years		5,000		(500	)		4,500
Non-compete		4 years		50,000		(6,250	)		43,750
Licenses		25 years		8,000		(1,070	)		6,930
			$	659,000	$	(31,157	)	$	627,843

Amortization expense for intangible assets for the three and nine months ended September 30, 2014 was as follows:

	For the		For the
	Three Months Ended		Nine Months Ended
	September 30, 2014		September 30, 2014

Customer relationships	$	13,404	$	23,337
Trade name		250		500
Non-compete		-		6,250
Licenses		70		1,070
	$	13,724	$	31,157

Estimated future amortization expense for the Company’s intangible assets at September 30, 2014 is as follows:

Years ending December 31,
Remainder of 2014	$	16,849
2015		67,396
2016		67,396
2017		67,396
2018		58,021
Thereafter		350,785
	$	627,843

The changes in the carrying value of the Company’s goodwill during the nine months ended September 30, 2014 were as follows:

Balance at January 1, 2014
Goodwill	$	-
Acquisition of PC		331,621
Balance at September 30, 2014	$	331,621

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Accounts Payable and Accrued Expenses

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Accounts Payable and Accrued Expenses

NOTE 7. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of the following:

	September 30, 2014			December 31, 2013

Accounts payable	$	769,547		$	261,924
Building lease liability(1)		72,809			-
Other accrued expenses		-			50,000
Total accounts payable and accrued expenses		842,356			311,924
Less: Current portion		(804,183	)		(311,924	)
Non-current total accounts payable and accrued expenses	$	38,173		$	-

(1)

In September 2014, the Company relocated its primary operations to a 7,565 square foot office facility in San Diego, California. The Company is currently marketing its previous office space (3,874 square feet) as a sublease through its remaining lease term. The Company recognized a loss of approximately $84,000 related to the estimated remaining lease liability, net of expected sublease income. The obligations were discounted based on current prevailing market rates. This loss is included in rent expense for the three and nine months ended September 30, 2014 (See Note 11).

Debt

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Debt

NOTE 8. DEBT

PC entered into a working capital line of credit agreement with a financial institution on March 21, 2008 and subsequently renewed the agreement on September 6, 2013. The line of credit agreement allowed PC to borrow up to $75,000 and was secured by a first security interest on all of PC’s business assets. The line of credit agreement was terminated following the Company’s acquisition of PC, and no amounts were borrowed, paid or outstanding during the period ended September 30, 2014 following the Company’s acquisition of PC.

Stockholders' Equity and Stock-based Compensation

9 Months Ended

Sep. 30, 2014

Equity [Abstract]

Stockholders' Equity and Stock-based Compensation

NOTE 9. STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

Common Stock

During April 2014, the Company issued 6,868 shares of common stock, valued at $50,000, in connection with the resolution of a contract dispute.

During the nine months ended September 30, 2014, the Company issued a total of 225,264 shares of common stock as a result of stock option exercises. Of these, the Company received gross cash proceeds of $583,811 for the issuance of 159,879 shares of common stock upon the exercise on a cash basis of stock options to purchase the same number of shares of common stock with exercise prices ranging from $3.68 to $4.00 and the Company received no cash proceeds for the issuance of 65,385 shares of common stock upon the exercise pursuant to cashless exercise provisions of stock options to purchase 142,484 shares of common stock with exercise prices ranging from $3.60 to $4.50 per share.

During the nine months ended September 30, 2014, the Company issued a total of 44,055 shares of common stock as a result of warrant exercises. Of these, the Company received gross cash proceeds of $37,493 for the issuance of 6,328 shares of common stock upon the exercise on a cash basis of warrants to purchase the same number of shares of common stock with exercise prices of $5.925 and the Company received no cash proceeds for the issuance of 37,727 shares of common stock upon the exercise pursuant to cashless exercise provisions of warrants to purchase 114,415 shares of common stock with exercise prices of $5.25 per share.

During the nine months ended September 30, 2014, RSUs issued to directors vested, representing 20,595 shares of the Company’s common stock, but the issuance and delivery of these shares are deferred until the director resigns.

Preferred Stock

At September 30, 2014, the Company had 5,000,000 shares of preferred stock, $0.001 par value, authorized and no shares of preferred stock issued and outstanding.

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 September 30, 2014, 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, restricted stock units and restricted stock. The Plan is administered by the Compensation Committee of the Company’s Board of Directors.

Stock Options

A summary of activity under the Plan with respect to options to purchase common stock for the nine months ended September 30, 2014 is as follows:

	Number of shares			Weighted Avg. Exercise Price		Weighted Avg. Remaining Contractual Life		Aggregate Intrinsic Value
Options outstanding - January 1, 2014		1,328,790		$	5.31
Options granted		235,886		$	6.62
Options exercised		(302,363	)	$	3.87
Options cancelled/forfeit		(216,476	)	$	6.45
Options outstanding - September 30, 2014		1,045,837		$	5.79		6.31	$	2,359,188
Options exercisable		706,808		$	5.31		5.10	$	1,957,994
Options vested and expected to vest		1,011,934		$	5.75		6.24	$	2,319,069

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 September 30, 2014, based on the closing price of the Company’s common stock of $7.42 on that date. The aggregate intrinsic value of stock options exercised during the nine months ended September 30, 2014 was approximately $1,136,000.

During the nine months ended September 30, 2014, 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 securities exchange on which the common stock was then listed, at the grant date and have contractual terms ranging from five to 10 years. Vesting terms for options granted 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 75% or 67%, 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 three years; annual vesting over three years; 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 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, which would affect 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 by the Black-Scholes-Merton option pricing model with the following assumptions used for valuing options granted to employees and directors:

	2014
Weighted-average fair value of options granted	$	5.18
Expected terms (in years)		5.81 - 6.91
Expected volatility		99 - 102	%
Risk-free interest rate		1.37 - 1.68	%
Dividend yield		-

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 options granted to consultants:

	2014
Weighted-average fair value of options granted	$	6.15
Expected terms (in years)		2.5 - 10
Expected volatility		78 - 97	%
Risk-free interest rate		0.10 - 1.68	%
Dividend yield		-

The following table summarizes information about stock options outstanding and exercisable at September 30, 2014:

	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		4.82	$	2.80		250,000	$	2.80
$3.60 - $4.51		338,621		5.19	$	4.36		249,038	$	4.45
$5.49 - $8.00		187,225		8.89	$	6.58		52,779	$	6.21
$8.01 - $10.75		263,191		7.36	$	8.99		148,191	$	9.01
$28.00 - $80.00		6,800		5.38	$	40.86		6,800	$	40.86
		1,045,837		6.31	$	5.79		706,808	$	5.31

As of September 30, 2014, there was approximately $1,559,000 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 2.30 years. The stock-based compensation for all stock options was $240,057 and $883,174 during the three and nine months ended September 30, 2014, respectively.

Restricted Stock Units

Restricted stock unit, or 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 common stock on the grant date, is expensed over the vesting period of the RSUs. Unvested portions of RSUs issued to consultants are remeasured on an interim basis until vesting criteria is met.

During March 2014, the Company terminated its agreement with a consultant that provided for the grant of 100,000 RSUs that had vesting criteria based on the satisfaction of certain market-based conditions subject to the consultant’s continued service, among other things. Upon termination of the agreement, all 100,000 RSUs were forfeited and deemed reconveyed to the Company.

A summary of the Company’s RSU activity and related information for the nine months ended September 30, 2014 is as follows:

	Number of RSUs			Weighted Average Grant Date Fair Value
RSUs outstanding - January 1, 2014		1,389,960		$	3.19
RSUs granted		26,492		$	7.55
RSUs vested		(20,595	)	$	7.92
RSUs cancelled/forfeit		(108,947	)	$	3.01
Balance at September 30, 2014		1,286,910		$	3.22

As of September 30, 2014, the total unrecognized compensation expense related to unvested RSUs was approximately $2,263,000, which is expected to be recognized over a weighted-average period of 1.56 years, based on vesting schedules of the applicable RSUs. The stock-based compensation for RSU’s during the three and nine months ended September 30, 2014 was $314,584 and $991,510, 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 other non-employees for services rendered or to be rendered in the future.

A summary of warrant activity for the nine months ended September 30, 2014 is as follows:

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

Warrants outstanding - January 1, 2014		821,050		$	5.94
Granted		-		$	-
Exercised		(120,743	)	$	5.29
Expired		-		$	-
Warrants outstanding and exercisable - September 30, 2014		700,307		$	6.05
Weighted average remaining contractual life of the outstanding warrants in years - September 30, 2014		1.14

The fair value of each warrant is estimated on the date of grant using the Black-Scholes-Merton option pricing model. The intrinsic value of warrants exercised during the nine months ended September 30, 2014 was approximately $304,000.

A list of the warrants outstanding as of September 30, 2014 is included in the table below:

	Warrants Outstanding						Warrants Exercisable
			Warrants		Exercise		Warrants		Expiration
Warrant Series	Issue Date		Outstanding		Price		Exercisable		Date
Warrants issued to a former major shareholder		4/25/2012		48,262	$	5.93		48,262		4/25/2015
Warrants issued in April 2012 private placement		4/25/2012		496,600	$	5.93		496,600		4/25/2015
Underwriter warrants		2/7/2013		65,445	$	5.25		65,445		2/7/2018
Warrants issued to investor relations consultant		2/28/2013		30,000	$	5.25		30,000		2/28/2016
Warrants issued to investor relations consultant		7/19/2013		60,000	$	8.50		60,000		7/19/2018
				700,307	$	6.05		700,307

The stock-based compensation for the warrants issued as compensation for services was $26,649 for the nine months ended September 30, 2014.

The Company recorded stock-based compensation (including the amortization of stock-based prepaid consulting fees) related to equity instruments granted to employees, directors and consultants as follows:

	For the			For the		For the		For the
	Three Months Ended			Three Months Ended		Nine Months Ended		Nine Months Ended
	September 30, 2014			September 30, 2013		September 30, 2014		September 30, 2013
Employees - selling and marketing	$	20,253		$	-	$	51,114	$	-
Employees - general and administrative		469,658			525,734		1,574,658		990,632
Employees - research and development		-			32,189		-		143,939
Directors - general and administrative		16,797			84,031		101,090		332,281
Consultants - selling and marketing		27,101			-		57,884		-
Consultants - general and administrative		20,960			160,088		107,799		665,615
Consultants - research and development		(128	)		76,535		8,788		194,494
Total	$	554,641		$	878,577	$	1,901,333	$	2,326,961

- 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
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Paragraph d
-Article 4

Reference 15: http://www.xbrl.org/2003/role/presentationRef
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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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+ Details

Employee Savings Plan

9 Months Ended

Sep. 30, 2014

Compensation and Retirement Disclosure [Abstract]

Employee Savings Plan

NOTE 10. EMPLOYEE SAVINGS PLAN

The Company has established an employee savings plan pursuant to Section 401(k) of the Internal Revenue Code, effective January 1, 2014. The plan allows participating employees to deposit into tax deferred investment accounts up to 100% of their salary, subject to annual limits. The Company makes contributions to the plan in an amount not less than 3% of the participants’ annual cash compensation, subject to annual limits. The Company contributed approximately $42,000 to the plan during the nine months ended September 30, 2014.

Commitments and Contingencies

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE 11. COMMITMENTS AND CONTINGENCIES

Capital Leases

The Company leases equipment under capital leases with an interest rate of 4.25% per annum. At September 30, 2014, future payments under the Company’s capital leases were as follows:

Year ending December 31,
Remainder of 2014	$	6,369
2015		25,477
2016		19,321
Total minimum lease payments		51,167
Less amount representing interest		(2,217	)
Present value of future minimum lease payments		48,950
Less current portion		(23,858	)
Capital lease obligations, net of current portion	$	25,092

The value of the equipment under capital leases as of September 30, 2014 was $52,687, with related accumulated depreciation of $4,135.

Operating Leases

In June 2014, the Company entered into a lease agreement for 7,565 square feet of office space that commenced on September 1, 2014 and continues until October 31, 2018. Monthly rent began on September 1, 2014 in the amount of $20,426, 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 two months at various times during the lease agreement.

In April 2013, the Company entered into a lease agreement for 3,874 square feet of office space that commenced on May 1, 2013 and continues until September 30, 2016. 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. The Company’s intention is to sublet the 3,874 square feet of its previously occupied offices through the remaining term of the lease, but has not secured such a sublease as of the filing date of this Quarterly Report (See Note 7).

In January 2010, PC entered into a lease agreement for 3,137 square feet of office and laboratory space that commenced on January 1, 2010 and continues until December 31, 2015. Monthly rent began on January 1, 2010 in the amount of $3,594.

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 disputes, contractual disputes and other commercial disputes. Any of these claims could subject the Company to litigation. Management believes the outcomes of currently pending claims are not likely to have a material effect on the Company’s condensed consolidated financial position and results of operations.

Indemnities

In addition to the indemnification provisions contained in the Company’s charter documents, the Company generally enters into separate indemnification agreements with each of 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 lessors in connection with its facility leases for certain claims arising from the use of the facilities. These 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 in the accompanying condensed consolidated balance sheets.

PCCA License Agreement

On August 30, 2012, the Company entered into a license agreement with Professional Compounding Centers of America (“PCCA”), pursuant to which 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 license agreement if the Company fails to commence efforts to research and develop future products within certain time periods, as set forth in the license agreement.

PCCA Strategic Alliance Agreement

On February 18, 2013, the Company entered into a strategic alliance agreement with PCCA. Under this 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 with respect to any potential development project the Company may pursue 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. This agreement automatically renewed for a one-year term on February 18, 2014.

Asset Purchase Agreements

The Company has acquired intellectual property rights related to certain proprietary innovations from certain inventors (the “Inventors”) through multiple asset purchase agreements. The asset purchase agreements provide that the Inventors 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 Inventors.

In consideration for the acquisition of the intellectual property rights, the Company is obligated to make payments to the Inventors 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 U.S. Food and Drug Administration (“FDA”) for the first product arising from the acquired intellectual property (if any); (3) for certain of the Inventors, 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 Inventors, has not filed an IND or, for the remaining Inventors, has not initiated a study where data is derived, or (b) has failed to generate royalty payments to the Inventors for any product based on the acquired intellectual property, the Inventors may terminate the applicable asset purchase agreement and request that the Company re-assign the acquired technology to the Inventors.

Novel Drug and Eye Care Northwest Asset Purchase Agreement – Related Party

On August 8, 2013, the Company acquired intellectual property rights related to certain proprietary innovations from the compounding pharmacy operations of Novel Drug Solutions, LLC (“NDS”) and from Eye Care Northwest, Inc. (together referred to as the “Sellers”) pursuant to an asset purchase agreement (as amended, the “ECN APA”). As part of this acquisition, the Company acquired intellectual property rights that include a provisional patent application related to injectable ophthalmological compositions having anti-bacterial and anti-inflammatory properties for the prevention of post-ophthalmic surgery complications. In addition, under the ECN APA, the Company has a right of first refusal on any of the Sellers’ additional intellectual property and drug development opportunities. The ECN APA provides that the Sellers will cooperate with the Company in obtaining patent protection for the acquired intellectual property, among other things, and that the Company will use commercially reasonable efforts to research, develop and commercialize a product based on the acquired intellectual property.

In consideration for the acquisition, the Company is obligated to make the following payments to NDS: (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 IND with the FDA for the first product arising from the acquired intellectual property (if any); (3) 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 of the date of the ECN APA, the Company either has not filed an IND or has failed to generate royalty payments to NDS for any product based on the acquired intellectual property, NDS may terminate the ECN APA and request that the Company re-assign the acquired technology to NDS.

NDS is owned by the former owners of PC. During the nine months ended September 30, 2014 the Company did not make any payments to NDS, and no amounts are due and payable to NDS at September 30, 2014.

Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Information

NOTE 12. SEGMENT INFORMATION

The Company operates the business on the basis of a single reportable segment, which is the business of developing proprietary drug therapies and providing such therapies through sterile and non-sterile pharmaceutical compounding services. The Company’s chief operating decision-maker is the Chief Executive Officer, who evaluates the Company as a single operating segment.

The Company categorizes revenues by geographic area based on selling location. All operations are currently located in the United States; therefore, total revenues for 2014 and 2013 are attributed to the United States. All long-lived assets at September 30, 2014 are located in the United States.

The Company sells its compounded formulations to a large number of customers. Less than 10% of the Company’s total pharmacy sales were derived from a single customer for the three and nine months ended September 30, 2014.

The Company receives its active pharmaceutical ingredients from three main suppliers. These suppliers accounted for 84% and 78%, respectively, of drug and chemical purchases during the three and nine months ended September 30, 2014.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Subsequent Events

9 Months Ended

Sep. 30, 2014

Subsequent Events [Abstract]

Subsequent Events

NOTE 13. SUBSEQUENT EVENTS

The Company has performed an evaluation of events occurring subsequent to September 30, 2014 through the filing date of this Quarterly Report. Based on its evaluation, nothing other than the events described below need to be disclosed.

During October 2014 the Company issued 4,000 shares of restricted common stock to a consultant, valued at $29,160 for services provided.

In October 2014, the Company received no cash proceeds for the issuance of 1,054 shares of common stock upon the exercise pursuant to cashless exercise provisions of stock options to purchase 4,164 shares of common stock with an exercise price of $6.00 per share.

In November 2014, the Company received no cash proceeds for the issuance of 3,711 shares of common stock upon the exercise pursuant to cashless exercise provisions of warrants to purchase 9,300 shares of common stock with an exercise price of $5.25 per share.

Urigen License

On October 24, 2014, (the “Effective Date”), the Company entered into a license agreement (the “Urigen License”) with Urigen Pharmaceuticals, Inc. (“Urigen”), pursuant to which Urigen granted to the Company a license under certain U.S. patents and patent applications to develop and sell in the U.S. Urigen’s URG101 product (the “Product”), a lidocaine and heparin compounded formulation, for the prevention or treatment of disorders of the lower urinary tract. Such license is non-exclusive; provided that, between the six-month anniversary of the Effective Date and the 12-month anniversary of the Effective Date, the Company will have the right, at its option, to convert such non-exclusive license to an exclusive license for the remaining term of the Urigen License, subject only to certain specified existing sublicenses (the “Existing Sublicenses”).

As consideration for the license granted under the Urigen License, the Company has agreed to pay Urigen annual tiered royalties based on its sales of the Product, subject to certain minimum annual royalty payments. The annual tiered royalties consist of the greater of (i) a minimum amount per dose, and (ii) 15% - 20% of the Company’s net sales of the Product, with such royalty range depending on the Company’s aggregate sales of Product during the period to which the royalty payment applies. The minimum annual royalty payment consists of (a) for the calendar year during with the license grant may convert from a non-exclusive license to an exclusive license as described above, the greater of (i) 110% of the aggregate royalties paid to Urigen under the Existing Sublicenses during the preceding 12 months, on a prorated basis, and (ii) $800,000, less the aggregate royalties paid to Urigen under the Existing Sublicenses during such calendar year, and (b) for each calendar year thereafter, 110% of the aggregate amount owed by the Company to Urigen under the Urigen License during the prior calendar year. The Company is obligated to pay such royalties beginning with its first commercial sale of the Product and continuing until the expiration of the patents subject to the license granted under the Urigen License. The Company has also agreed to use commercially reasonable efforts to develop and commercialize the Product according to the terms of a diligence plan agreed to by the parties, which efforts will include, without limitation, the Company’s investment of $2 million in commercialization efforts of the Product, which investment and timeline can be adjusted dependent market circumstances.

Subject to certain conditions and each party’s right to terminate the Urigen License earlier under certain circumstances, the Urigen License will continue in effect until the expiration of the Company’s royalty obligations under the Urigen License. The Urigen License between the Company and Urigen terminates upon the first commercial sale of the Product by Urigen, its affiliates, or a third party after the U.S. Food and Drug Administration (the “FDA”) grants Urigen approval to market the Product in the U.S., if market approval is granted. The Company shall have the option, at its discretion, to become a non-exclusive distributor of the Product following the FDA granting Urigen such market approval.

Overview, Basis of Presentation and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Company and Background

Company and Background

Basis of Presentation

Basis of Presentation

Business Combinations

Business Combinations

	●	future expected cash flows from product sales, support agreements, consulting contracts, other customer contracts, and acquired developed technologies and patents; and

	●	discount rates utilized in valuation estimates.

Research and Development

Research and Development

Intellectual Property

Intellectual Property

Revenue Recognition and Deferred Revenue

Revenue Recognition and Deferred Revenue

Product Revenues

License Revenues

Cost of Sales

Cost of Sales

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

Accounts Receivable

Accounts Receivable

Inventories

Inventories

Furniture and Equipment

Furniture and Equipment

Goodwill and Intangible Assets

Goodwill and Intangible Assets

	●	significant underperformance of the Company’s business relative to expected operating results;

	●	significant adverse economic and industry trends;

	●	significant decline in the Company’s market capitalization for an extended period of time relative to net book value; and

	●	expectations that a reporting unit will be sold or otherwise disposed.

The goodwill impairment test consists of a two-step process as follows:

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

During the three and nine months ended September 30, 2014 and 2013, the Company did not recognize any impairment of long-lived assets.

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.

Stock-Based Compensation

Stock-Based Compensation

Basic and Diluted Net Loss per Common Share

Basic and Diluted Net Loss per Common Share

The following table shows the computation of basic and diluted net loss per share of common stock for the three and nine months ended September 30, 2014 and 2013:

	For the			For the			For the			For the
	Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended
	September 30, 2014			September 30, 2013			September 30, 2014			September 30, 2013

Numerator – net loss	$	(2,451,935	)	$	(2,077,464	)	$	(7,372,823	)	$	(5,760,997	)
Denominator – weighted average number of shares outstanding, basic and diluted		9,154,172			8,961,678			9,092,065			8,551,159
Net loss per share, basic and diluted	$	(0.27	)	$	(0.23	)	$	(0.81	)	$	(0.67	)

Use of Estimates

Use of Estimates

Reclassifications

Reclassifications

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

Overview, Basis of Presentation and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Schedule of Basic and Diluted Earnings Per Common Share

The following table shows the computation of basic and diluted net loss per share of common stock for the three and nine months ended September 30, 2014 and 2013:

	For the			For the			For the			For the
	Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended
	September 30, 2014			September 30, 2013			September 30, 2014			September 30, 2013

Numerator – net loss	$	(2,451,935	)	$	(2,077,464	)	$	(7,372,823	)	$	(5,760,997	)
Denominator – weighted average number of shares outstanding, basic and diluted		9,154,172			8,961,678			9,092,065			8,551,159
Net loss per share, basic and diluted	$	(0.27	)	$	(0.23	)	$	(0.81	)	$	(0.67	)

Acquisition - Pharmacy Creations, LLC (Tables)

9 Months Ended

Sep. 30, 2014

Business Combinations [Abstract]

Schedule of Acquisition Date Fair Value of Consideration

The total acquisition date fair value of the consideration to be transferred is estimated at approximately $1.1 million, as follows:

Cash payment to sellers at closing	$	600,000
Contingent common stock issuance to the Sellers		483,156
Contingent cash consideration to the Sellers		31,466
Total acquisition date fair value	$	1,114,622

Schedule of Estimated Fair Value of Assets Acquired and Liabilities Assumed

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date.

Cash and cash equivalents	$	4,982
Accounts receivable		58,420
Prepaid expenses and other assets		30,256
Inventory		213,190
Property and equipment		44,510
Intangible assets		659,000
Total identifiable assets acquired		1,010,358
Accounts payable and accrued liabilities		120,049
Other liabilities		107,308
Total liabilities assumed		227,357
Total identifiable assets less liabilities assumed		783,001
Goodwill		331,621

Net assets acquired	$	1,114,622

Schedule of Result of Operation from Acquisition

Total revenues		$	1,103,739
Operating loss		$	(549,960	)

Schedule of Pro Forma Financial Information

The unaudited pro forma results presented include amortization charges for intangible assets and eliminations of intercompany transactions.

	For the			For the			For the			For the
	Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended
	September 30, 2014			September 30, 2013			September 30, 2014			September 30, 2013
Total revenues	$	441,030		$	708,890		$	1,732,576		$	2,166,941
Net loss	$	(2,451,935	)	$	(1,936,759	)	$	(7,284,019	)	$	(5,276,808	)

Schedule of Intangible Assets Acquisition

The following table sets forth the components of identified intangible assets associated with the PC acquisition and their estimated useful lives.

	Fair Value		Useful Life
Customer relationships	$	596,000	10 - 15 years
Trade Name		5,000	5 years
Non-competition covenant		50,000	4 years
State pharmacy licenses		8,000	25 years
	$	659,000

Inventories (Tables)

9 Months Ended

Sep. 30, 2014

Inventory Disclosure [Abstract]

Schedule of Inventories

The composition of inventories as of September 30, 2014 was as follows:

	September 30, 2014

Raw materials	$	176,131
Finished goods		175,071
Total inventory	$	351,202

Prepaid Expenses and Other Current Assets (Tables)

9 Months Ended

Sep. 30, 2014

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following:

	September 30, 2014		December 31, 2013

Prepaid stock-based consulting expenses	$	-	$	26,649
Prepaid rent		5,826		16,288
Prepaid insurance		202,954		39,166
Other prepaid expenses and deposits		126,874		22,964
Total prepaid expenses and other current assets	$	335,654	$	105,067

Intangible Assets and Goodwill (Tables)

9 Months Ended

Sep. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

The Company’s intangible assets at September 30, 2014 consisted of the following:

	Amortization				Accumulated			Net
	periods		Cost		amortization			Carrying value
Customer relationships		10-15 years	$	596,000	$	(23,337	)	$	572,663
Trade name		5 years		5,000		(500	)		4,500
Non-compete		4 years		50,000		(6,250	)		43,750
Licenses		25 years		8,000		(1,070	)		6,930
			$	659,000	$	(31,157	)	$	627,843

Schedule of Amortization Expenses for Intangible Assets

Amortization expense for intangible assets for the three and nine months ended September 30, 2014 was as follows:

	For the		For the
	Three Months Ended		Nine Months Ended
	September 30, 2014		September 30, 2014

Customer relationships	$	13,404	$	23,337
Trade name		250		500
Non-compete		-		6,250
Licenses		70		1,070
	$	13,724	$	31,157

Schedule of Estimated Future Amortization Expense

Estimated future amortization expense for the Company’s intangible assets at September 30, 2014 is as follows:

Years ending December 31,
Remainder of 2014	$	16,849
2015		67,396
2016		67,396
2017		67,396
2018		58,021
Thereafter		350,785
	$	627,843

Schedule of Changes in Carrying Value of Goodwill

The changes in the carrying value of the Company’s goodwill during the nine months ended September 30, 2014 were as follows:

Balance at January 1, 2014
Goodwill	$	-
Acquisition of PC		331,621
Balance at September 30, 2014	$	331,621

Accounts Payable and Accrued Expenses (Tables)

9 Months Ended

Sep. 30, 2014

Debt Disclosure [Abstract]

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following:

	September 30, 2014			December 31, 2013

Accounts payable	$	769,547		$	261,924
Building lease liability(1)		72,809			-
Other accrued expenses		-			50,000
Total accounts payable and accrued expenses		842,356			311,924
Less: Current portion		(804,183	)		(311,924	)
Non-current total accounts payable and accrued expenses	$	38,173		$	-

(1)

Stockholders' Equity and Stock-based Compensation (Tables)

9 Months Ended

Sep. 30, 2014

Equity [Abstract]

Schedule of Stock Option Plan Activity

A summary of activity under the Plan with respect to options to purchase common stock for the nine months ended September 30, 2014 is as follows:

	Number of shares			Weighted Avg. Exercise Price		Weighted Avg. Remaining Contractual Life		Aggregate Intrinsic Value
Options outstanding - January 1, 2014		1,328,790		$	5.31
Options granted		235,886		$	6.62
Options exercised		(302,363	)	$	3.87
Options cancelled/forfeit		(216,476	)	$	6.45
Options outstanding - September 30, 2014		1,045,837		$	5.79		6.31	$	2,359,188
Options exercisable		706,808		$	5.31		5.10	$	1,957,994
Options vested and expected to vest		1,011,934		$	5.75		6.24	$	2,319,069

Schedule of Fair Value Assumption

	2014
Weighted-average fair value of options granted	$	5.18
Expected terms (in years)		5.81 - 6.91
Expected volatility		99 - 102	%
Risk-free interest rate		1.37 - 1.68	%
Dividend yield		-

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 options granted to consultants:

	2014
Weighted-average fair value of options granted	$	6.15
Expected terms (in years)		2.5 - 10
Expected volatility		78 - 97	%
Risk-free interest rate		0.10 - 1.68	%
Dividend yield		-

Schedule of Shares Outstanding and Exercisable

The following table summarizes information about stock options outstanding and exercisable at September 30, 2014:

	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		4.82	$	2.80		250,000	$	2.80
$3.60 - $4.51		338,621		5.19	$	4.36		249,038	$	4.45
$5.49 - $8.00		187,225		8.89	$	6.58		52,779	$	6.21
$8.01 - $10.75		263,191		7.36	$	8.99		148,191	$	9.01
$28.00 - $80.00		6,800		5.38	$	40.86		6,800	$	40.86
		1,045,837		6.31	$	5.79		706,808	$	5.31

Schedule of Restricted Stock Units Activity

A summary of the Company’s RSU activity and related information for the nine months ended September 30, 2014 is as follows:

	Number of RSUs			Weighted Average Grant Date Fair Value
RSUs outstanding - January 1, 2014		1,389,960		$	3.19
RSUs granted		26,492		$	7.55
RSUs vested		(20,595	)	$	7.92
RSUs cancelled/forfeit		(108,947	)	$	3.01
Balance at September 30, 2014		1,286,910		$	3.22

Schedule of Warrants Activity

A summary of warrant activity for the nine months ended September 30, 2014 is as follows:

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

Warrants outstanding - January 1, 2014		821,050		$	5.94
Granted		-		$	-
Exercised		(120,743	)	$	5.29
Expired		-		$	-
Warrants outstanding and exercisable - September 30, 2014		700,307		$	6.05
Weighted average remaining contractual life of the outstanding warrants in years - September 30, 2014		1.14

Schedule of Warrants Outstanding and Warrants Exercisable

A list of the warrants outstanding as of September 30, 2014 is included in the table below:

	Warrants Outstanding						Warrants Exercisable
			Warrants		Exercise		Warrants		Expiration
Warrant Series	Issue Date		Outstanding		Price		Exercisable		Date
Warrants issued to a former major shareholder		4/25/2012		48,262	$	5.93		48,262		4/25/2015
Warrants issued in April 2012 private placement		4/25/2012		496,600	$	5.93		496,600		4/25/2015
Underwriter warrants		2/7/2013		65,445	$	5.25		65,445		2/7/2018
Warrants issued to investor relations consultant		2/28/2013		30,000	$	5.25		30,000		2/28/2016
Warrants issued to investor relations consultant		7/19/2013		60,000	$	8.50		60,000		7/19/2018
				700,307	$	6.05		700,307

Schedule of Stock Based Compensation Granted to Employees Directors Consultants

	For the			For the		For the		For the
	Three Months Ended			Three Months Ended		Nine Months Ended		Nine Months Ended
	September 30, 2014			September 30, 2013		September 30, 2014		September 30, 2013
Employees - selling and marketing	$	20,253		$	-	$	51,114	$	-
Employees - general and administrative		469,658			525,734		1,574,658		990,632
Employees - research and development		-			32,189		-		143,939
Directors - general and administrative		16,797			84,031		101,090		332,281
Consultants - selling and marketing		27,101			-		57,884		-
Consultants - general and administrative		20,960			160,088		107,799		665,615
Consultants - research and development		(128	)		76,535		8,788		194,494
Total	$	554,641		$	878,577	$	1,901,333	$	2,326,961

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2014

Compensation and Retirement Disclosure [Abstract]

Schedule of Lease Equipment Under Capital Lease

At September 30, 2014, future payments under the Company’s capital leases were as follows:

Year ending December 31,
Remainder of 2014	$	6,369
2015		25,477
2016		19,321
Total minimum lease payments		51,167
Less amount representing interest		(2,217	)
Present value of future minimum lease payments		48,950
Less current portion		(23,858	)
Capital lease obligations, net of current portion	$	25,092

Overview, Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Deposit coverage limits by FDIC, per owner	$ 250,000
Cash deposits in excess of FDIC limits	10,000,000
Accounts receivable, net of allowance for doubtful accounts	3,957
Impairment of long-lived assets	$ 0	$ 0
Common stock equivalents, dilutive instruments	3,053,649	3,451,964
Number of restricted stock included in common stock equivalents	20,595
Minimum [Member]
furniture and equipment depreciated useful life	3 years
Maximum [Member]
furniture and equipment depreciated useful life	5 years

Overview, Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Basic and Diluted Earnings Per Common Share (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Accounting Policies [Abstract]
Numerator - net loss	$ (2,451,935)	$ (2,077,464)	$ (7,372,823)	$ (5,760,997)
Denominator - weighted average number of shares outstanding, basic and diluted	9,154,172	8,961,678	9,092,065	8,551,159
Net loss per share, basic and diluted	$ (0.27)	$ (0.23)	$ (0.81)	$ (0.67)

Acquisition - Pharmacy Creations, Llc (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash paid for business acquisition	$ 636,374
Pharmacy Creations, LLC [Member]
Cash paid for business acquisition	600,000
Contingent cash payment	50,000
Expected revenue	$ 3,500,000
Expected revenue date	Mar. 31, 2015
Maximum number of common stock applied for contingent stock payment	215,190
Condition for contingent stock payment	<p style="margin: 0pt"></p> <p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">if the Company earns revenue of over $7,500,000 during the 12 month period ending March 31, 2016, all 215,190 shares;</font></p> <p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif"> </font></p> <p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">if the Company 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 Imprimis 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>
Business acquisition, total fair value transferred	$ 1,114,622
Business combination purchase price allocation for good will	331,621
Pharmacy Creations, LLC [Member] \| Maximum [Member] \| Period Ending March 31, 2016
Expected revenue	$ 7,500,000
Expected revenue date	Mar. 31, 2016
Pharmacy Creations, LLC [Member] \| Minimum [Member] \| Period Ending March 31, 2016
Expected revenue	$ 3,500,000
Expected revenue date	Mar. 31, 2016

Acquisition - Pharmacy Creations, Llc - Schedule of Acquisition Date Fair Value of Consideration (Details) - USD ($)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash payment to sellers at closing	$ 636,374
Pharmacy Creations, LLC [Member]
Cash payment to sellers at closing	600,000
Contingent common stock issuance to the Sellers	483,156
Contingent cash consideration to the Sellers	31,466
Total acquisition date fair value	$ 1,114,622

Acquisition - Pharmacy Creations, Llc - Schedule of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($)	Sep. 30, 2014	Dec. 31, 2013
Goodwill	$ 331,621
Pharmacy Creations, LLC [Member]
Cash and cash equivalents	4,982
Accounts receivable	58,420
Prepaid expenses and other assets	30,256
Inventory	213,190
Property and equipment	44,510
Intangible assets	659,000
Total identifiable assets acquired	1,010,358
Accounts payable and accrued liabilities	120,049
Other liabilities	107,308
Total liabilities assumed	227,357
Total identifiable assets less liabilities assumed	783,001
Goodwill	331,621
Net assets acquired	$ 1,114,622

Acquisition - Pharmacy Creations, Llc - Schedule of Result of Operation from Acquisition (Details) - Pharmacy Creations, LLC [Member]	9 Months Ended
	Sep. 30, 2014 USD ($)
Total revenues	$ 1,103,739
Operating loss	$ (549,960)

Acquisition - Pharmacy Creations, Llc - Schedule of Pro Forma Financial Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Business Combinations [Abstract]
Total revenues	$ 441,030	$ 708,890	$ 1,732,576	$ 2,166,941
Net loss	$ (2,451,935)	$ (1,936,759)	$ (7,284,019)	$ (5,276,808)

Acquisition - Pharmacy Creations, Llc - Schedule of Intangible Assets Acquisition (Details)	9 Months Ended
	Sep. 30, 2014 USD ($)
Fair Value	$ 659,000
Customer Relationships [Member]
Fair Value	$ 596,000
Customer Relationships [Member] \| Minimum [Member]
Useful Life	10 years
Customer Relationships [Member] \| Maximum [Member]
Useful Life	15 years
Trade Name [Member]
Fair Value	$ 5,000
Useful Life	5 years
Non-Compete Covenant [Member]
Fair Value	$ 50,000
Useful Life	4 years
State Pharmacy Licensing [Member]
Fair Value	$ 8,000
Useful Life	25 years

Restricted Short-Term Investment (Details Narrative) - USD ($)	Sep. 30, 2014	Dec. 31, 2013
Restricted Short-term Investment
Certificate of deposit	$ 150,208	$ 50,097

Inventories - Schedule of Inventories (Details) - USD ($)	Sep. 30, 2014	Dec. 31, 2013
Inventory Disclosure [Abstract]
Raw materials	$ 176,131
Finished goods	175,071
Total inventories	$ 351,202

Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($)	Sep. 30, 2014	Dec. 31, 2013
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid stock-based consulting expenses		$ 26,649
Prepaid rent	5,826	16,288
Prepaid insurance	202,954	39,166
Other prepaid expenses and deposits	126,874	22,964
Total prepaid expenses and other current assets	$ 335,654	$ 105,067

Intangible Assets and Goodwill - Schedule of Intangible Assets (Details)	9 Months Ended
	Sep. 30, 2014 USD ($)
Cost	$ 659,000
Accumulated amortization	(31,157)
Net Carrying value	627,843
Customer Relationships [Member]
Cost	596,000
Accumulated amortization	(23,337)
Net Carrying value	$ 572,663
Customer Relationships [Member] \| Minimum [Member]
Amortization periods (in years)	10 years
Customer Relationships [Member] \| Maximum [Member]
Amortization periods (in years)	15 years
Trade Name [Member]
Amortization periods (in years)	5 years
Cost	$ 5,000
Accumulated amortization	(500)
Net Carrying value	$ 4,500
Non-Compete Covenant [Member]
Amortization periods (in years)	4 years
Cost	$ 50,000
Accumulated amortization	(6,250)
Net Carrying value	$ 43,750
State Pharmacy Licensing [Member]
Amortization periods (in years)	25 years
Cost	$ 8,000
Accumulated amortization	(1,070)
Net Carrying value	$ 6,930

Intangible Assets and Goodwill - Schedule of Amortization Expenses for Intangible Assets (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2013
Amortization of intangible assets	$ 13,724	$ 31,157
Customer Relationships [Member]
Amortization of intangible assets	13,404	23,337
Trade Name [Member]
Amortization of intangible assets	250	500
Non-Compete Covenant [Member]
Amortization of intangible assets		6,250
State Pharmacy Licensing [Member]
Amortization of intangible assets	$ 70	$ 1,070

Intangible Assets and Goodwill - Schedule of Estimated Future Amortization Expense (Details) - USD ($)	Sep. 30, 2014	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2014	$ 16,849
2015	67,396
2016	67,396
2017	67,396
2018	58,021
Thereafter	350,785
Intangible assets	$ 627,843

Intangible Assets and Goodwill - Schedule of Changes in Carrying Value of Goodwill (Details)	9 Months Ended
	Sep. 30, 2014 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill, Beginning
Goodwill
Acquisition of PC	331,621
Goodwill, Ending	$ 331,621

Accounts Payable and Accrued Expenses (Details Narratvie)	9 Months Ended
	Sep. 30, 2014 USD ($) ft²	Apr. 30, 2013 ft²
Accounts Payable And Accrued Expenses Details Narratvie
Area of office space	7,565	3,874
Area of previous office space	3,874
Recognized lease losses related to estimated remaining lease liability \| $	$ 84,000

Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($)	Sep. 30, 2014	Dec. 31, 2013
Debt Disclosure [Abstract]
Accounts payable	$ 769,547	$ 261,924
Building lease liability(1)	72,809
Other accrued expenses		50,000
Total accounts payable and accrued expenses	842,356	311,924
Less: Current portion	(804,183)	(311,924)
Non-current total accounts payable and accrued expenses	$ 38,173

Debt (Details Narrative) - Pharmacy Creations, LLC [Member]	Sep. 30, 2014 USD ($)
Line of credits borrowing limit maximum	$ 75,000
Borrowed term loan	$ 0

Stockholders' Equity and Stock-based Compensation (Details Narrative) - USD ($)		1 Months Ended		3 Months Ended	9 Months Ended
	Apr. 02, 2013	Apr. 30, 2014	Mar. 31, 2014	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2013
Common stock issued shares		6,868			65,385
Common stock issued shares value		$ 50,000
Shares issued upon exercise of stock options, shares					225,264
Shares issued upon exercise of stock options					$ 583,811
Additional shares issued upon exercise of stock options, shares					159,879
Proceeds from issuance of common stock						$ 10,052,832
Exercise of common stock option to purchase of common stock					142,484
Shares issued upon warrants exercise					44,055
Shares issued upon exercise of warrant					$ 37,493
Warrants and shares issued upon excise of common stock					6,328
Warrants to purchase common stock exercise price per share					$ 5.925
Proceeds from issuance of warrants
Number of warrants shares issued					37,727
Exercise of warrant to purchase of common stock					114,415
Warrants shares exercise price per share					$ 5.25
Preferred stock, shares authorized				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
Stock option exercise price					$ 7.42
Intrinsic value of stock options exercised					$ 1,136,000
Stock options granted vesting terms					<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">Vesting terms for options granted 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 75% or 67%, 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 three years; annual vesting over three years; or monthly, quarterly or 100% vesting associated with the provision or completion of services provided under contracts with consultants.</font></p>
Total unrecognized compensation expense related to unvested stock options granted under the Plan				$ 1,559,000	$ 1,559,000
Expense expected to recognize over the weighted-average remaining vesting period					2 years 3 months 18 days
Stock-based compensation				240,057	$ 883,174
Intrinsic value of warrants exercised					$ 304,000
Employees And Directors [Member]
Percentage of forfeiture factor	10.00%
Restricted Stock Units [Member]
Common stock shares issued for services					20,595
Total unrecognized compensation expense related to unvested stock options granted under the Plan				2,263,000	$ 2,263,000
Expense expected to recognize over the weighted-average remaining vesting period					1 year 6 months 22 days
Stock-based compensation				$ 314,584	$ 991,510
RSUs were forfeited			$ 100,000
2007 Incentive Stock And Awards Plan [Member]
Maximum number of common stock issuance under the plan				5,000,000	5,000,000
Warrant [Member]
Stock-based compensation					$ 26,649
Minimum [Member]
Stock option purchase of exercise price					$ 3.68
Common stock exercise price per share					$ 3.60
Contractual term of stock options granted					5 years
Maximum [Member]
Stock option purchase of exercise price					$ 4.00
Common stock exercise price per share					$ 4.50
Contractual term of stock options granted					10 years

Stockholders' Equity and Stock-based Compensation - Schedule of Stock Option Plan Activity (Details)	9 Months Ended
	Sep. 30, 2014 USD ($) $ / shares shares
Number of shares, Outstanding, Beginning balance
Number of shares, Options exercised	225,264
Number of shares, Outstanding, Ending balance	1,045,837
Weighted Avg. Remaining Contractual Life, Options outstanding	6 years 3 months 22 days
Stock Option Plan [Member]
Number of shares, Outstanding, Beginning balance	1,328,790
Number of shares, Options granted	235,886
Number of shares, Options exercised	(302,363)
Number of shares, Options cancelled/forfeit	(216,476)
Number of shares, Outstanding, Ending balance	1,045,837
Number of shares, Options exercisable	706,808
Number of shares, Options vested and expected to vest	1,011,934
Weighted Avg. Exercise Price, Outstanding, Beginning balance \| $ / shares	$ 5.31
Weighted Avg. Exercise Price, Options granted \| $ / shares	6.62
Weighted Avg. Exercise Price, Options exercised \| $ / shares	3.87
Weighted Avg. Exercise Price, Options cancelled/forfeit \| $ / shares	6.45
Weighted Avg. Exercise Price, Outstanding, Ending balance \| $ / shares	5.79
Weighted Avg. Exercise Price, Exercisable Ending Balance \| $ / shares	5.31
Weighted Avg. Exercise Price, Vested and expected to vest - end of period \| $ / shares	$ 5.75
Weighted Avg. Remaining Contractual Life, Options outstanding	6 years 3 months 22 days
Weighted Avg. Remaining Contractual Life, Options exercisable	5 years 1 month 6 days
Weighted Avg. Remaining Contractual Life, Options vested and expected to vest	6 years 2 months 27 days
Aggregate Intrinsic Value, Options outstanding \| $	$ 2,359,188
Aggregate Intrinsic Value, Options exercisable \| $	1,957,994
Aggregate Intrinsic Value, Options vested and expected to vest \| $	$ 2,319,069

Stockholders' Equity and Stock-based Compensation - Schedule of Fair Value Assumption (Details)	9 Months Ended
	Sep. 30, 2014 $ / shares
Options Granted To Employees [Member]
Weighted-average fair value of options granted	$ 5.18
Expected volatility, minimum	99.00%
Expected volatility, maximum	102.00%
Risk-free interest rate, minimum	1.37%
Risk-free interest rate, maximum	1.68%
Dividend yield	0.00%
Options Granted To Employees [Member] \| Minimum [Member]
Expected terms (in years)	5 years 9 months 22 days
Options Granted To Employees [Member] \| Maximum [Member]
Expected terms (in years)	6 years 10 months 28 days
Options Granted To Consultants [Member]
Weighted-average fair value of options granted	$ 6.15
Expected volatility, minimum	78.00%
Expected volatility, maximum	97.00%
Risk-free interest rate, minimum	0.10%
Risk-free interest rate, maximum	1.68%
Dividend yield	0.00%
Options Granted To Consultants [Member] \| Minimum [Member]
Expected terms (in years)	2 years 6 months
Options Granted To Consultants [Member] \| Maximum [Member]
Expected terms (in years)	10 years

Stockholders' Equity and Stock-based Compensation - Schedule of Shares Outstanding and Exercisable (Details)	9 Months Ended
	Sep. 30, 2014 $ / shares shares
Number of Options Outstanding \| shares	1,045,837
Weighted Average Remaining Contractual Life in Years	6 years 3 months 22 days
Weighted Average Exercise Price	$ 5.79
Number Exercisable \| shares	706,808
Weighted Average Exercisable Exercise Price	$ 5.31
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	4 years 9 months 26 days
Weighted Average Exercise Price	$ 2.80
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	338,621
Weighted Average Remaining Contractual Life in Years	5 years 2 months 9 days
Weighted Average Exercise Price	$ 4.36
Number Exercisable \| shares	249,038
Weighted Average Exercisable Exercise Price	$ 4.45
Range Three [Member]
Range of Exercise Prices, minimum	5.49
Range of Exercise Prices, maximum	$ 8.00
Number of Options Outstanding \| shares	187,225
Weighted Average Remaining Contractual Life in Years	8 years 10 months 21 days
Weighted Average Exercise Price	$ 6.58
Number Exercisable \| shares	52,779
Weighted Average Exercisable Exercise Price	$ 6.21
Range Four [Member]
Range of Exercise Prices, minimum	8.01
Range of Exercise Prices, maximum	$ 10.75
Number of Options Outstanding \| shares	263,191
Weighted Average Remaining Contractual Life in Years	7 years 4 months 10 days
Weighted Average Exercise Price	$ 8.99
Number Exercisable \| shares	148,191
Weighted Average Exercisable Exercise Price	$ 9.01
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	5 years 4 months 17 days
Weighted Average Exercise Price	$ 40.86
Number Exercisable \| shares	6,800
Weighted Average Exercisable Exercise Price	$ 40.86

Stockholders' Equity and Stock-based Compensation - Schedule of Restricted Stock Units Activity (Details) - Restricted Stock Units [Member]	9 Months Ended
	Sep. 30, 2014 $ / shares shares
Number of RSUs, Outstanding, Beginning balance \| shares	1,389,960
Number of RSUs granted \| shares	26,492
Number of RSUs vested \| shares	(20,595)
Number of RSUs cancelled/forfeit \| shares	(108,947)
Number of RSUs, Outstanding, Ending balance \| shares	1,289,960
Weighted Average Grant Date Fair Value, Beginning balance \| $ / shares	$ 3.19
Weighted Average Grant Date Fair Value, RSUs granted \| $ / shares	7.55
Weighted Average Grant Date Fair Value, RSUs vested \| $ / shares	7.92
Weighted Average Grant Date Fair Value, RSUs cancelled/forfeit \| $ / shares	3.01
Weighted Average Grant Date Fair Value, Ending balance \| $ / shares	$ 3.22

Stockholders' Equity and Stock-based Compensation - Schedule of Warrants Activity (Details) - Warrant [Member]	9 Months Ended
	Sep. 30, 2014 $ / shares shares
Number of shares, Outstanding, Beginning balance \| shares	821,050
Number of Shares Subject to Warrants Outstanding, Granted \| shares
Number of Shares Subject to Warrants Outstanding, Exercised \| shares	(120,743)
Number of Shares Subject to Warrants Outstanding, Expired \| shares
Number of shares, Outstanding, Ending balance \| shares	700,307
Weighted Average Remaining Contractual Life Of The Outstanding Warrants In Years	1 year 1 month 21 days
Weighted Avg. Exercise Price, Outstanding, Beginning balance \| $ / shares	$ 5.94
Weighted Avg. Exercise Price, Granted \| $ / shares
Weighted Avg. Exercise Price, Exercised \| $ / shares	5.29
Weighted Avg. Exercise Price, Expired \| $ / shares
Weighted Avg. Exercise Price, Outstanding, Ending balance \| $ / shares	$ 6.05

Stockholders' Equity and Stock-based Compensation - Schedule of Warrants Outstanding and Warrants Exercisable (Details)	9 Months Ended
	Sep. 30, 2014 $ / shares shares
Warrant [Member]
Warrants Outstanding	700,307
Exercise Price \| $ / shares	$ 6.05
Warrants Exercisable	700,307
Warrants Issued To Former Major Shareholder [Member]
Issue Date	Apr. 25, 2012
Warrants Outstanding	48,262
Exercise Price \| $ / shares	$ 5.93
Warrants Exercisable	48,262
Expiration Date	Apr. 25, 2015
Warrants Issued In April 2012 Private Placement [Member]
Issue Date	Apr. 25, 2012
Warrants Outstanding	496,600
Exercise Price \| $ / shares	$ 5.93
Warrants Exercisable	496,600
Expiration Date	Apr. 25, 2015
Underwriter Warrants [Member]
Issue Date	Feb. 07, 2013
Warrants Outstanding	65,445
Exercise Price \| $ / shares	$ 5.25
Warrants Exercisable	65,445
Expiration Date	Feb. 07, 2018
Warrants Issued To Investor Relations Consultant [Member]
Issue Date	Feb. 28, 2013
Warrants Outstanding	30,000
Exercise Price \| $ / shares	$ 5.25
Warrants Exercisable	30,000
Expiration Date	Feb. 28, 2016
Warrants Issued To Investor Relations Consultant [Member]
Issue Date	Jul. 19, 2013
Warrants Outstanding	60,000
Exercise Price \| $ / shares	$ 8.50
Warrants Exercisable	60,000
Expiration Date	Jul. 19, 2018

Stockholders' Equity and Stock-Based Compensation - Schedule of Stock Based Compensation Granted to Employees Directors Consultants (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Stock based compensation related to equity instruments granted to related parties	$ 554,641	$ 878,577	$ 1,901,333	$ 2,326,961
Employees [Member] \| Selling And Marketing [Member]
Stock based compensation related to equity instruments granted to related parties	20,253		51,114
Employees [Member] \| General And Administrative [Member]
Stock based compensation related to equity instruments granted to related parties	469,658	525,734	1,574,658	990,632
Employees [Member] \| Research And Development [Member]
Stock based compensation related to equity instruments granted to related parties		32,189		143,939
Directors [Member] \| General And Administrative [Member]
Stock based compensation related to equity instruments granted to related parties	16,797	84,031	101,090	332,281
Consultants [Member] \| Selling And Marketing [Member]
Stock based compensation related to equity instruments granted to related parties	27,101		57,884
Consultants [Member] \| General And Administrative [Member]
Stock based compensation related to equity instruments granted to related parties	20,960	160,088	107,799	665,615
Consultants [Member] \| Research And Development [Member]
Stock based compensation related to equity instruments granted to related parties	$ (128)	$ 76,535	$ 8,788	$ 194,494

Employee Savings Plan (Details Narrative)	9 Months Ended
Employee Savings Plan (Details Narrative)	Sep. 30, 2014 USD ($)
Compensation and Retirement Disclosure [Abstract]
Percentage of salary deposits in tax deferred investment account	100.00%
Percentage of contributions made by the company	3.00%
Contributions by the company	$ 42,000

Commitments and Contingencies (Details Narrative)	1 Months Ended
Commitments and Contingencies (Details Narrative)	Sep. 30, 2014 USD ($) ft²	Apr. 30, 2013 USD ($) ft²	Jan. 31, 2010 USD ($) ft²	Feb. 18, 2013 USD ($)
Leases equipment under capital lease with interest rate	4.25%
Equipment under capital leases net	$ 52,687
Related accumulated depreciation	$ 4,135
Lease agreement for office space (Square feet) \| ft²	7,565	3,874
Operating lease Expiry	Oct. 31, 2018	Sep. 30, 2016
Operating lease, monthly rental	$ 20,426	$ 10,406
Operating lease, rent increase percentage	3.00%	3.00%
Maximum aggregate value of cash fees				$ 100,000
Minimum [Member]
Royalties range percentage	4.50%
Maximum [Member]
Royalties range percentage	9.00%
Pharmacy Creations, LLC [Member]
Lease agreement for office space (Square feet) \| ft²			3,137
Operating lease Expiry			Dec. 31, 2015
Operating lease, monthly rental			$ 3,594

Commitments and Contingencies - Schedule of Lease Equipment Under Capital Lease (Details) - USD ($)	Sep. 30, 2014	Dec. 31, 2013
Compensation and Retirement Disclosure [Abstract]
Remainder of 2014	$ 6,369
2015	25,477
2016	19,321
Total minimum lease payments	51,167
Less amount representing interest	(2,217)
Present value of future minimum lease payments	48,950
Less current portion	(23,858)
Capital lease obligation, net of current portion	$ 25,092

Segment Information (Details Narrative)	3 Months Ended	9 Months Ended
Segment Information (Details Narrative)	Sep. 30, 2014	Sep. 30, 2014
Segment Reporting [Abstract]
Maximum percentage of sales derived from single customer	10.00%	10.00%
Percentage of drug and chemical purchases from three main suppliers	84.00%	78.00%

Subsequent Events (Details Narrative) - USD ($)		1 Months Ended		9 Months Ended
Subsequent Events (Details Narrative) - USD ($)	Oct. 24, 2014	Nov. 30, 2014	Oct. 31, 2014	Sep. 30, 2014	Sep. 30, 2013
Stock issued during period resticted common stock issued					$ 319,786
Proceeds from issuance of common stock					$ 10,052,832
Shares issued upon exercise of stock options, shares				225,264
Proceeds from issuance of warrants
Number of stcok issued for cashless exercise provision of warrants				37,727
Exercise of warrant to purchase of common stock				114,415
Subsequent Event [Member]
Proceeds from issuance of common stock
Number of stcok issued for cashless exercise provision of options			1,054
Shares issued upon exercise of stock options, shares			4,164
Stock option purchase of exercise price			$ 6.00
Proceeds from issuance of warrants
Number of stcok issued for cashless exercise provision of warrants		3,711
Exercise of warrant to purchase of common stock		9,300
Warrants shares exercise price per share		$ 5.25
Subsequent Event [Member] \| Urigen Pharmaceuticals, Inc [Member]
License agreement commitments description	<p style="margin: 0pt"><font style="font: 10pt Times New Roman, Times, Serif">The annual tiered royalties consist of the greater of (i) a minimum amount per dose, and (ii) 15% - 20% of the Company’s net sales of the Product, with such royalty range depending on the Company’s aggregate sales of Product during the period to which the royalty payment applies. The minimum annual royalty payment consists of (a) for the calendar year during with the license grant may convert from a non-exclusive license to an exclusive license as described above, the greater of (i) 110% of the aggregate royalties paid to Urigen under the Existing Sublicenses during the preceding 12 months, on a prorated basis, and (ii) $800,000, less the aggregate royalties paid to Urigen under the Existing Sublicenses during such calendar year, and (b) for each calendar year thereafter, 110% of the aggregate amount owed by the Company to Urigen under the Urigen License during the prior calendar year.</font></p>
Minimum royalties to be paid each calendar year	$ 800,000
Value of product development investment	$ 2,000,000
Subsequent Event [Member] \| Restricted Stock [Member]
Stock issued during period resticted common stock issued, shares			4,000
Stock issued during period resticted common stock issued			$ 29,160