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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2015	Mar. 22, 2016	Jun. 30, 2015
Document And Entity Information
Entity Registrant Name	Imprimis Pharmaceuticals, Inc.
Entity Central Index Key	0001360214
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Entity Voluntary Filers	No
Entity Well-KnownSeasoned Issuer	No
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 58,000,000
Entity Common Stock, Shares Outstanding		13,105,678
Trading Symbol	IMMY
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2015

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 2,685	$ 8,211
Restricted short-term investments	150	150
Accounts receivable, net	840	81
Inventories	1,412	373
Prepaid expenses and other current assets	786	241
Total current assets	5,873	9,056
Intangible assets, net	3,135	611
Goodwill	2,466	332
Furniture and equipment, net	2,657	243
TOTAL ASSETS	14,131	10,242
Current liabilities
Accounts payable and accrued expenses	3,407	787
Accrued payroll and related liabilities	1,200	716
Deferred revenue and customer deposits	65	2
Current portion of deferred acquisition obligation and accrued interest	198
Current portion of contingent acquisition obligation	483	31
Current portion of capital lease obligations	21	24
Total current liabilities	5,374	1,560
Capital lease obligations, net of current portion	1	19
Contingent acquisition obligation		483
Deferred acquisition obligation, net of current portion	258
Accrued expenses, net of current portion	500	30
Deferred tax liability	1,047
Note payable and paid-in-kind interest, net of unamoritzed debt discount and issuance costs	8,336
TOTAL LIABILITIES	15,516	2,092
Commitments and contingencies
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock, $0.001 par value, 90,000,000 shares authorized, 9,755,678 and 9,258,231 shares issued and outstanding at December 31, 2015 and 2014, respectively	10	9
Additional paid-in capital	56,369	50,006
Accumulated deficit	(57,764)	(41,865)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)	(1,385)	8,150
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$ 14,131	$ 10,242

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
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	9,755,678	9,258,231
Common stock, shares outstanding	9,755,678	9,258,231

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenues:
Sales, net	$ 9,654	$ 1,652
License revenues	62	8
Total revenues	9,716	1,660
Cost of sales	(5,206)	(1,093)
Gross profit	4,510	567
Operating expenses:
Selling and marketing	6,496	2,390
General and administrative	12,504	8,087
Research and development	332	237
Total operating expenses	19,332	10,714
Loss from operations	(14,822)	(10,147)
Other income (expense):
Interest income (expense), net	(1,108)	29
Other income	31
Total other income (expense), net	(1,077)	29
Net loss	$ (15,899)	$ (10,118)
Basic and diluted net loss per share of common stock	$ (1.66)	$ (1.11)
Weighted average number of shares of common stock outstanding, basic and diluted	9,576,142	9,132,989

Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2013	$ 9	$ 46,849	$ (31,747)	$ 15,111
Balance, share at Dec. 31, 2013	8,970,364
Exercise of stock options, net of tax withholding		584		584
Exercise of stock options, net of tax withholding, shares	227,216
Issuance of common stock upon vesting of RSUs net of tax withholding		(13)		(13)
Issuance of common stock upon vesting of RSUs net of tax withholding , shares	1,954
Exercise of warrants		38		38
Exercise of warrants, shares	47,829
Issuance of common stock related to consulting agreements		29		29
Issuance of common stock related to consulting agreements, shares	4,000
Common stock issued in settlement of contract dispute		50		50
Common stock issued in settlement of contract dispute, shares	6,868
Stock-based compensation		2,469		2,469
Net loss			(10,118)	(10,118)
Balance at Dec. 31, 2014	$ 9	50,006	(41,865)	8,150
Balance, share at Dec. 31, 2014	9,258,231
Exercise of stock options, net of tax withholding, shares	227,216
Issuance of common stock upon vesting of RSUs net of tax withholding		(10)		(10)
Issuance of common stock upon vesting of RSUs net of tax withholding , shares	10,132
Exercise of warrants	$ 1	1,247		1,248
Exercise of warrants, shares	220,912
Stock-based compensation		3,457		3,457
Exercise of stock options
Exercise of stock options, shares	130,457
Sale of stock, net of offering costs		404		404
Sale of stock, net of offering costs, shares	72,421
The Park Acquisition		425		425
The Park Acquisition, shares	63,525
Relative fair value of warrants to purchase common stock issued in connection with note payable		840		840
Relative fair value of warrants to purchase common stock issued in connection with note payable, shares
Net loss			(15,899)	(15,899)
Balance at Dec. 31, 2015	$ 10	$ 56,369	$ (57,764)	$ (1,385)
Balance, share at Dec. 31, 2015	9,755,678

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (15,899)	$ (10,118)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization of furniture and equipment	255	37
Amortization of intangible assets	355	48
Amortization of debt issuance costs and discount	281
Paid-in-kind added to principal of note payable	130
Non-cash gain on contingent acquisition obligations	(31)
Stock-based compensation	3,441	2,615
Changes in assets and liabilities, net of effects from acquisitions:
Accounts receivable	(360)	(23)
Inventories	(314)	(160)
Prepaid expenses and other current assets	(545)	(132)
Accounts payable and accrued expenses	1,028	345
Accrued payroll and related liabilities	453	342
Deferred revenue and customer deposits	63	(11)
NET CASH USED IN OPERATING ACTIVITIES	(11,143)	(7,057)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Park Compounding, net of cash	(3,005)
Purchase of Central Allen Pharmacy, net of cash	(421)
Purchase of assets for ImprimisRx PA, Inc.	(524)
Purchase of restricted short-term investment		(100)
Purchase of Pharmacy Creations, LLC, net of cash and advances		(636)
Investment in patent and trademark assets	(185)
Purchases of furniture and equipment	(995)	(174)
NET CASH USED IN INVESTING ACTIVITIES	(5,130)	(910)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on capital lease obligations	(25)	(10)
Cancelled common stock		(13)
Payments on Park deferred acquisition obligation	(135)
Proceeds from note payable, net of issuance costs and fees	9,265
Net proceeds from ATM sales of common stock	404
Net proceeds from exercise of warrants and stock options	1,238	622
Deferred offering costs
NET CASH PROVIDED BY FINANCING ACTIVITIES	10,747	599
NET CHANGE IN CASH AND CASH EQUIVALENTS	(5,526)	(7,368)
CASH AND CASH EQUIVALENTS, beginning of year	8,211	15,579
CASH AND CASH EQUIVALENTS, end of period	2,685	8,211
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for income taxes	1	1
Cash paid for interest	637	4
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Relative fair value of warrants issued in connection with note payable	840
Issuance of common stock and deferred obligations in the purchase of Park Compounding	1,016
Issuance of stock options for consulting services included in accounts payable and accrued expenses	39
Final fee on notes payable recorded as debt discount and included in accrued expenses	500
Purchase of furniture and equipment with a capital lease		35
Purchase of furniture and equipment included in accounts payable and accrued expenses	$ 1,275

Organization

12 Months Ended

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

NOTE 1. ORGANIZATION

Imprimis Pharmaceuticals, Inc. (together with its subsidiaries, unless the context indicates or otherwise requires, the “Company” or “Imprimis”) is a national leader in the development, production and dispensing of novel compounded pharmaceuticals. The Company’s two business programs, Imprimis Cares and Custom Compounding Choice™, focus on patient outcomes and affordability by offering high quality customizable compounded drugs in all 50 states. Imprimis is headquartered in San Diego, California and operates four pharmacy facilities located in California, Texas, New Jersey and Pennsylvania.

On April 1, 2014, the Company acquired Pharmacy Creations, LLC (“PC”), a New Jersey based compounding pharmacy and on January 1, 2015, the Company acquired South Coast Specialty Compounding, Inc. D/B/A Park Compounding (“Park”), a California based compounding pharmacy. Effective with the acquisition of PC, the Company commenced sales and marketing efforts for Imprimis’ portfolio of proprietary and non-proprietary compounded drug formulations. On August 4, 2015, the Company acquired JT Pharmacy, Inc. d/b/a Central Allen Pharmacy (“CAP”), a Texas based compounding pharmacy whose name has been changed to ImprimisRx TX, Inc., and on October 15, 2015, the Company, through a wholly-owned subsidiary ImprimisRx PA, Inc. (“ImprimisRx PA”), acquired substantially all of the assets and tradenames of Thousand Oaks Holding Company’s wholly-owned subsidiaries Topical Apothecary Group, LLC (d/b/a TAG Pharmacy), Aerosol Science Laboratories, Inc. (d/b/a ASL Pharmacy), SinuTopic, Inc. (d/b/a Sinus Dynamics Pharmacy) and Mycotoxins, LLC (collectively “TOHC”).

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Imprimis has prepared the accompanying consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

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 and 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 include, among others, those related to allowance for doubtful accounts and contractual adjustments, realizability of inventories, valuation of deferred taxes, goodwill and intangible assets, recoverability of long-lived assets and goodwill, valuation of contingent acquisition obligations and deferred acquisition obligations, valuation of note payable and valuation of stock-based compensation issued to employees and non-employees. Actual results could differ from these estimates.

Liquidity

The Company has incurred significant operating losses and negative cash flows from operations since its inception. The Company incurred net losses of $15,899 and $10,118 for the years ended December 31, 2015 and 2014, respectively, and had an accumulated deficit of $57,764 and $41,865 as of December 31, 2015 and 2014, respectively. In addition, the Company used cash in operating activities of $11,143 and $7,057 for the years ended December 31, 2015 and 2014, respectively.

While there is no assurance, the Company believes its existing cash resources and restricted investments of approximately $2,835 at December 31, 2015 and net cash proceeds from the sale of the Company’s common stock of $11,100 and issuance of a convertible note of $3,000 subsequent to December 2015 (see Note 16), will be sufficient to sustain the Company’s planned level of operations for at least the next twelve months. However, estimates of operating expenses and working capital requirements could be incorrect, and the Company could use its cash resources faster than anticipated. Further, some or all of the ongoing or planned activities may not be successful and could result in further losses.

The Company may seek to increase liquidity and capital resources by one or more measures, to the extent necessary. These measures may include, but are not limited to, the following: obtaining financing through the issuance of equity, debt, or convertible securities; and working to increase revenue growth through pharmacy sales. There is no guarantee that the Company will be able to obtain capital when needed on terms it deems as acceptable, or at all.

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 include sales of certain of the Company’s proprietary compounded drug formulations and non-proprietary formulations and products.

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 revenues 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 license 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, compounded drug preparation and/or other deliverable is 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 that 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 other products sold, including active pharmaceutical ingredients, personnel costs, packaging, storage, royalties (see Note 14), shipping and handling costs and the write-off of obsolete inventory.

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 we have identified an alternative future use for the acquired rights. Patents and trademarks are recorded at cost and capitalized at a time when the future economic benefits of such patents and trademarks become more certain (see Goodwill and Intangible Assets). The Company began capitalizing certain costs associated with acquiring intellectual property rights during 2015, if costs are not capitalized they are expensed as incurred.

Income Taxes

As part of the process of preparing the Company’s consolidated financial statements, the Company must estimate the actual current tax liabilities and assess temporary differences resulting from differing treatment of items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within the consolidated balance sheet. The Company must assess the likelihood that the deferred tax assets will be recovered from future taxable income and, to the extent the Company believes that recovery is not likely, a valuation allowance must be established. To the extent the Company establishes a valuation allowance or increase or decrease this allowance in a period, the impact will be included in income tax expense in the consolidated statement of operations.

The Company accounts for income taxes under the provisions of Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) 740, “Income Taxes”, or ASC 740. As of December 31, 2015, there were no unrecognized tax benefits included in the 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 consolidated balance sheets at December 31, 2015 and 2014, and has not recognized interest and/or penalties in the consolidated statements of operations for the years ended December 31, 2015 and 2014. The Company is subject to taxation in the United States, California, New Jersey, Texas and Pennsylvania. 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 December 31, 2015, the Company had approximately $2.1 million in cash deposits in excess of FDIC limits.

Accounts Receivable

Accounts receivable are stated net of allowances for doubtful accounts and contractual adjustments. The accounts receivable balance primarily includes amounts due from customers the Company has invoiced or from third-party providers (e.g., insurance companies and governmental agencies), but for which payment has not been received. Charges to bad debt are based on both historical write-offs and specifically identified receivables. Contractual adjustments are determined by the amount expected to be collected from third-party providers. Accounts receivable are presented net of allowances for doubtful accounts and contractual adjustments in the amount of $180 and $4 as of December 31, 2015 and 2014, respectively.

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 and capital lease equipment 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.

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, 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 the Company has 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 estimates 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, statements of operations or cash flows in the period of the change in the estimate.

Goodwill and Intangible Assets

Patents and trademarks are recorded at cost and capitalized at a time when the future economic benefits of such patents and trademarks become more certain. At that time, the Company capitalizes third party legal costs and filing fees associated with obtaining and prosecuting claims related to its patents and trademarks. Once the patents have been issued, the Company amortizes these costs over the shorter of the legal life of the patent or its estimated economic life, generally 20 years, using the straight-line method. Trademarks are an indefinite life intangible asset and are assessed for impairment based on future projected cash flows as further described below.

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 amount 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, purchased intangibles subject to amortization and patents and trademarks, 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 years ended December 31, 2015 and 2014, the Company did not recognize any impairment of its long-lived assets.

Third Party Billing and Collection Agreements

In connection with its acquisition of Park, the Company entered into a billing and collection agreement with a third party to assist in the billing and collection of workers’ compensation claims. Under the terms of the agreement, the Company is obligated to pay a fixed fee to the third party equal to 55% of the amounts billed and collected under the workers’ compensation claims. The Company accrues for such fees in accounts payable and accrued expenses in the accompanying consolidated balance sheet. Total billing and collection management expense under this agreement for the year ended December 31, 2015 was $142, and is included in selling and marketing expenses in the accompanying consolidated statement of operations. The amount due under the agreement as of December 31, 2015 was $81.

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 and is included in accounts payable and accrued expenses.

Debt Issuance Costs and Debt Discount

Debt issuance costs and the debt discount are recorded net of note payable in the consolidated balance sheet. Amortization expense of debt issuance costs and the debt discount is calculated using the effective interest method over the term of the debt and is recorded in interest expense in the accompanying consolidated statement of operations.

Fair Value Measurements

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

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

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

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

At December 31, 2015 and 2014, the Company did not have any financial assets or liabilities that are measured on a recurring basis. The Company’s financial instruments includes cash and cash equivalents, restricted short-term investments, accounts receivable, accounts payable and accrued expenses, accrued payroll and related liabilities, deferred revenue and customer deposits, contingent acquisition obligations, deferred acquisition obligations, note payable and capital leases. The carrying amount of these financial instruments, except for deferred acquisition obligations, note payable, 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 deferred acquisition obligations, note payable, and 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 consolidated financial statements based upon their estimated 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 estimated 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 of the equity instruments. The measurement date for the estimated 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 estimated fair value of the equity instrument is primarily recognized over the term of the consulting agreement. According to 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 estimated 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 deferred acquisition obligations, stock options, unvested RSUs and warrants were 3,313,169 and 3,024,217 at December 31, 2015 and 2014, respectively, and are excluded from the calculation of diluted net loss per share for all periods presented because the effect is anti-dilutive. Included in the basic and diluted net loss per share calculation were RSUs awarded to directors that had vested, but the issuance and delivery of the shares are deferred until the director resigns. The number of shares underlying these vested RSUs at December 31, 2015 and 2014 was 55,824 and 27,218, respectively,

The following table shows the computation of basic and diluted net loss per share of common stock for the years ended December 31, 2015 and 2014:

	For the			For the
	Year Ended			Year Ended
	December 31, 2015			December 31, 2014

Numerator – net loss	$	(15,899	)	$	(10,118	)
Denominator – weighted average number of shares outstanding, basic and diluted		9,576,142			9,132,989
Net loss per share, basic and diluted	$	(1.66	)	$	(1.11	)

Recently Adopted Accounting Pronouncements

In April 2015, the FASB issued Accounting Standard Update (“ASU”) 2015-03 Simplifying the Presentation of Debt Issuance Costs. This update requires capitalized debt issuance costs to be classified as a reduction to the carrying value of debt rather than a deferred charge, as is currently required. This update will be effective for the Company for all annual and interim periods beginning after December 15, 2015 and is required to be adopted retroactively for all periods presented, and early adoption is permitted. The Company has elected early adoption of this policy for the periods presented, and the Company is currently presenting debt issuance costs as a reduction in the carrying value of the note payable in accordance with this ASU.

In November 2015, the FASB issued ASU 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes, an update to accounting guidance to simplify the presentation of deferred income taxes. The guidance requires an entity to classify all deferred tax liabilities and assets, along with any valuation allowance, as noncurrent in the balance sheet. The guidance is effective for public companies with annual reporting periods beginning after December 15, 2016, including interim periods within these reporting periods. Early adoption is permitted. The Company has elected to early adopt ASU 2015-17 during the year ended December 31, 2015 with retrospective application. The adoption of ASU 2015-17 did not have a material impact on the Company’s consolidated financial statements.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases, which requires the lease rights and obligations arising from lease contracts, including existing and new arrangements, to be recognized as assets and liabilities on the balance sheet. ASU 2016-02 is effective for reporting periods beginning after December 15, 2018 with early adoption permitted. While the Company is still evaluating ASU 2016-02, the Company expects the adoption of ASU 2016-02 to have a material effect on the Company’s consolidated financial condition due to the recognition of the lease rights and obligations as assets and liabilities. The Company does not expect ASU 2016-02 to have a material effect on the Company’s results of operations and cash flows.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments: Recognition and Measurement of Financial Assets and Financial Liabilities, which addresses certain aspects of recognition, measurement, presentation and disclosure of financial statements. This guidance will be effective in the first quarter of fiscal year 2019 and early adoption is not permitted. The Company is currently evaluating the impact that this guidance will have on its consolidated financial statements.

In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, which eliminates the requirement to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. Measurement period adjustments are calculated as if they were known at the acquisition date, but are recognized in the reporting period in which they are determined. Additional disclosures are required about the impact on current-period income statement line items of adjustments that would have been recognized in prior periods if prior-period information had been revised. The guidance is effective for annual periods beginning after December 15, 2015 and is to be applied prospectively to adjustments of provisional amounts that occur after the effective date. Early application is permitted. The Company is evaluating the impact of adoption of this guidance on its financial position and results of operations.

In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory, which requires entities to measure most inventory “at the lower of cost and net realizable value (“NRV”),” thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. Under the new guidance, inventory is “measured at the lower of cost and net realizable value,” which eliminates the need to determine replacement cost and evaluate whether it is above the ceiling (NRV) or below the floor (NRV less a normal profit margin). The guidance defines NRV as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” The guidance is effective for annual periods beginning after December 15, 2016, and interim periods therein. Early application is permitted. The Company is evaluating the impact of adoption of this guidance on its financial position and results of operations.

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 consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. This updated guidance supersedes the current revenue recognition guidance, including industry-specific guidance. The updated guidance introduces a five-step model to achieve its core principal of the entity recognizing revenue to depict the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The updated guidance is effective for interim and annual periods beginning after December 15, 2016, and early adoption is not permitted. In July 2015, the FASB decided to delay the effective date of ASU 2014-09 until December 15, 2017. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. The Company is currently evaluating which transition method it will adopt and the expected impact of the updated guidance, but does not believe the adoption of the updated guidance will have a significant impact on its consolidated financial statements.

Acquisitions

12 Months Ended

Dec. 31, 2015

Business Combinations [Abstract]

Acquisitions

NOTE 3. ACQUISITIONS

Acquisition of Pharmacy Creations

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 “PC 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 through PC.

The transaction has been accounted for as a business combination and the financial results of PC have been included in the Company’s 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 PC Sellers an aggregate cash purchase price of $600. In addition, the PC Sellers were entitled to receive additional contingent consideration upon the satisfaction of certain conditions, as follows:

●	A contingent cash payment of $50, payable if PC earns revenues of over $3,500 for the 12 month period ended March 31, 2015 which was forfeited as the milestone was not met; and

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

	●	if PC earns revenue of between $3,500 and $7,500 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 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 transferred and to be transferred is estimated at approximately $1,114, as follows:

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

A $514 liability was recognized for the estimated acquisition date fair value of the future contingent common stock and cash payments. During the year ended December 31, 2015, the Company decreased the contingent liability amount related to the cash payment and recognized a gain in other income of $31 due to the revenue milestone not being met. Contingent acquisition obligations related to the PC Acquisition were $483 and $514 at December 31, 2015 and 2014, respectively.

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 the 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	$	5
Accounts receivable		58
Prepaid expenses and other assets		30
Inventory		213
Property and equipment		45
Intangible assets		659
Total identifiable assets acquired		1,010
Accounts payable and accrued liabilities		120
Other liabilities		107
Total liabilities assumed		227
Total identifiable assets less liabilities assumed		783
Goodwill		331

Net assets acquired	$	1,114

Results of Operations

The amount of revenues and operating loss of PC included in the Company’s consolidated statement of operations from the acquisition date through the period ended December 31, 2014 are as follows:

Total revenues		$	1,652
Operating loss		$	(663	)

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	10 - 15 years
Trade name		5	5 years
Non-competition covenant		50	4 years
State pharmacy licenses		8	25 years
	$	659

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 name represents 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 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.

Acquisition of Park

On January 1, 2015, the Company acquired all of the outstanding capital stock of Park (the “Park Acquisition”) from its previous owners (the “Sellers”), such that Park became a wholly owned subsidiary of the Company. The acquisition of Park permits the Company to make and distribute its patent-pending proprietary drug formulations and other novel pharmaceutical solutions through Park and introduces the Company to new geographic and compounded formulation markets.

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

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

Fair Value of Consideration Transferred

At the closing of the Park Acquisition, the Company paid to the Sellers an aggregate cash purchase price of $3,000, net of fees and expenses, and a $100 payment for cash remaining in a Park bank account, and the Company issued to the Sellers 63,525 shares of the Company’s restricted common stock, valued at $500 based on the average closing price of the Company’s common stock for the 10 trading days preceding the closing. In addition, the Company is obligated to make 12 quarterly cash payments to the Sellers collectively of $53 each over the three years following the closing of the Park Acquisition, totaling $638; provided that the Sellers will have the option to receive the last six of such payments, totaling up to an aggregate of $319, in the form of 6,749 shares of the Company’s common stock for each such payment. The convertible features of the deferred consideration provide for a rate of conversion that is at market value, and as a result no value was attributed to the conversion feature. The Company also recorded a deferred tax liability of $1,047 related to the Park acquisition.

Management applied a discount rate of 15% to the restricted common stock issued at the closing of the Park Acquisition due to a lack of marketability of such shares as a result of certain restrictions on their transfer. The total acquisition date fair value of the consideration transferred and to be transferred is estimated at approximately $5,163.

A $591 liability was recognized for the estimated acquisition date fair value of the deferred consideration and is included in the deferred acquisition obligations in the accompanying consolidated balance sheet at December 31, 2015.

The total acquisition date fair value of consideration transferred and to be transferred is estimated as follows:

Cash payment to Sellers at closing	$	3,100
Restricted common stock issuance to Sellers at closing		425
Deferred tax liability		1,047
Deferred consideration to Sellers		591
Total acquisition date fair value	$	5,163

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 January 1, 2015, the acquisition date. The excess of the acquisition date fair value of consideration transferred over the 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	$	95
Accounts receivable		399
Inventories		232
Furniture and equipment		252
Intangible assets		2,629
Total identifiable assets acquired		3,607
Accounts payable and accrued expenses		304
Other liabilities		35
Total liabilities assumed		339
Total identifiable assets less liabilities assumed		3,268
Goodwill		1,895
Net assets acquired	$	5,163

During the year ended December 31, 2015 the discount rate of the common stock issued at the time of the Park Acquisition was adjusted from 25% to 15% which resulted in an increase of $46 and $4 in goodwill and intangible assets, respectively, compared to the initial allocation of the purchase price. The final allocation was based on estimates and appraisals that was based on the Company’s final evaluation of Park’s assets and liabilities, including both tangible and intangible assets.

Results of Operations

The amount of revenues and net income of Park included in the Company’s consolidated statement of operations from the acquisition date through the period ended December 31, 2015 are as follows:

Total revenues		$	6,134
Net income		$	1,088

Intangible Assets

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

	Fair Value		Useful Life
Customer relationships	$	2,387	3 - 15 years
Trade name		10	5 years
Non-competition clause		224	3 years
State pharmacy licenses		8	25 years
	$	2,629

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

Goodwill

Of the total estimated purchase price for the Park Acquisition, $1,895 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 Park’s market channels and assembled workforce. Goodwill represents the excess of the purchase price of the acquired business over the fair value of the underlying net tangible and intangible assets acquired. Goodwill resulting from the business will be tested for impairment at least annually and more frequently if certain indicators 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.

Other 2015 Acquisitions

During 2015, the Company acquired CAP and purchased the assets of TOHC, primarily to expand its compounding pharmacy infrastructure and offerings. These acquisitions were not individually significant. The Company has included the financial results of the CAP acquisition in its consolidated financial statements from its acquisition date, August 4, 2015, and the results from this company were not individually material to the Company’s consolidated financial statements. The preliminary purchase price for these acquisitions totaled, collectively, approximately $945, which was paid entirely in cash. The Company has preliminarily recorded $641 of net tangible assets and $65 of identifiable intangible assets, based on their estimated fair values, and $239 of residual goodwill.

The initial purchase price calculation and related accounting for these acquisitions are preliminary. The preliminary fair value estimates for the assets acquired and liabilities assumed for these acquisitions were based upon preliminary calculations and valuations, and estimates and assumptions for these acquisitions are subject to change as the Company obtains additional information during the respective measurement periods (up to one year from the applicable acquisition date). The primary areas of these preliminary estimates that are not yet finalized relate to certain tangible assets and liabilities acquired and identifiable intangible assets.

Pro Forma Financial Information

The following table presents the Company’s unaudited pro forma results (including CAP, Park and PC) for the year ended December 31, 2014, as though the companies had been combined as of January 1, 2014. The acquisition of CAP was not individually significant and the 2015 results from this company were not individually material to our consolidated financial statements. 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 acquisitions 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, interest charges, acquisition costs, and eliminations of intercompany transactions.

	For the
	Year Ended
	December 31, 2014
Total revenues	$	7,847
Net loss	$	(9,850	)

The Company incurred approximately $201 in acquisition expenses related to the Park Acquisition, $135 in expenses related to the acquisition of the assets of TOHC and did not incur material acquisition expenses related to the PC Acquisition and the acquisition of CAP.

- 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
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-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1500-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1524-128463

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4934-128472

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
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-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4926-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1383-128463

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479

+ Details

Restricted Short-Term Investments

12 Months Ended

Dec. 31, 2015

Restricted Short-term Investments

Restricted Short-Term Investments

NOTE 4. RESTRICTED SHORT-TERM INVESTMENTS

The restricted short-term investments at December 31, 2015 consist of certificates of deposit, which are classified as held-to-maturity. At December 31, 2015 and 2014, the restricted short-term investments were recorded at amortized cost which approximates fair value.

At December 31, 2015 and 2014, the certificates of deposit of $150 were classified as a current asset. The 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 they automatically renew every twelve months.

Inventories

12 Months Ended

Dec. 31, 2015

Inventory Disclosure [Abstract]

Inventories

NOTE 5. INVENTORIES

Inventories are comprised of over-the-counter and prescription retail pharmacy products, commercial pharmaceutical products, related laboratory supplies and active pharmaceutical ingredients. The composition of inventories as of December 31, 2015 and 2014 was as follows:

	December 31, 2015		December 31, 2014
Raw materials	$	775	$	146
Work in progress		-		98
Finished goods		637		129
Total inventories	$	1,412	$	373

Prepaid Expenses and Other Current Assets

12 Months Ended

Dec. 31, 2015

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

Prepaid Expenses and Other Current Assets

NOTE 6. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets at December 31, 2015 and 2014 consisted of the following:

	December 31, 2015		December 31, 2014
Prepaid insurance	$	297	$	124
Other prepaid expenses		370		82
Deposits and other current assets		119		35
Total prepaid expenses and other current assets	$	786	$	241

Furniture and Equipment

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Furniture and Equipment

NOTE 7. FURNITURE AND EQUIPMENT

Furniture and equipment at December 31, 2015 and 2014 consisted of the following:

	December 31, 2015			December 31, 2014
Furniture and equipment, net:
Computer software and hardware	$	323		$	53
Furniture and equipment		350			153
Lab and pharmacy equipment		538			62
Leasehold improvements		1,746			20
		2,957			288
Accumulated depreciation and amortization		(300	)		(45	)
	$	2,657		$	243

The Company recorded depreciation and amortization expense of $255 and $37 during the years ended December 31, 2015 and 2014, respectively.

Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

NOTE 8. INTANGIBLE ASSETS AND GOODWILL

The Company’s intangible assets at December 31, 2015 consisted of the following:

	Amortization
	periods			Accumulated			Net
	(in years)	Cost		amortization			Carrying value
Patents	17-19 years	$	64	$	(1	)	$	63
Trademarks	Indefinite		121		-			121
Customer relationships	3-15 years		2,998		(297	)		2,701
Trade name	5 years		16		(4	)		12
Non-competition clause	3-4 years		294		(99	)		195
State pharmacy licenses	25 years		45		(2	)		43
		$	3,538	$	(403	)	$	3,135

The Company’s intangible assets at December 31, 2014 consisted of the following:

	Amortization
	periods			Accumulated			Net
	(in years)	Cost		amortization			Carrying value
Customer relationships	10-15 years	$	596	$	(37	)	$	559
Trade name	5 years		5		(1	)		4
Non-competition clause	4 years		50		(9	)		41
State pharmacy licenses	25 years		8		(1	)		7
		$	659	$	(48	)	$	611

Amortization expense for intangible assets for the years ended December 31, 2015 and 2014 was as follows:

	For the		For the
	Year Ended		Year Ended
	December 31, 2015		December 31, 2014
Patents	$	1	$	-
Customer relationships		260		37
Trade name		3		1
Non-competition clause		90		9
State pharmacy licenses		1		1
	$	355	$	48

Estimated future amortization expense for the Company’s intangible assets at December 31, 2015 is as follows:

Years ending December 31,
2016	$	365
2017		365
2018		219
2019		208
2020		206
Thereafter		1,772
	$	3,135

The changes in the carrying value of the Company’s goodwill during the years ended December 31, 2015 and 2014 were as follows:

Balance at January 1, 2014	$-
Acquistion of PC (see Note 3)		332
Balance at December 31, 2014		332
Acquisition of Park (see Note 3)		1,895
Acquisition of CAP (see Note 3)		239
Balance at December 31, 2015	$	2,466

- 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

12 Months Ended

Dec. 31, 2015

Payables and Accruals [Abstract]

Accounts Payable and Accrued Expenses

NOTE 9. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses at December 31, 2015 and 2014 consisted of the following:

	December 31, 2015			December 31, 2014
Accounts payable	$	3,185		$	699
Deferred rent		63			5
Accrued interest (see Note 10)		90			-
Accrued exit fee for note payable (see Note 10)		500			-
Building lease liability(1)		46			74
Other accrued expenses (2)		23			39
Total accounts payable and accrued expenses		3,907			817
Less: Current portion		(3,407	)		(787	)
Non-current total accrued expenses	$	500		$	30

	(1)	In September 2014, the Company relocated its corporate headquarters to a 7,565 square foot office facility in San Diego, California. In February 2015, the Company entered into an agreement to sublet 3,874 square feet of its previously occupied headquarters office space through the remaining term of the lease for a monthly rent amount of $8. The Company recognized a loss of approximately $117 during the year ended December 31, 2014 related to the estimated remaining lease liability, net of expected sublease income, of the previously occupied office space. The obligations were discounted based on current prevailing market rates.

	(2)	The amount consists of a $23 and $39 stock-based compensation accrual at December 31, 2015 and 2014 respectively, for stock options to be granted for services performed. The stock-based compensation expense related to the accruals was $23 and $39 during the years ended December 31, 2015 and 2014, respectively. The $39 was recorded to additional paid-in-capital upon issuance of the stock options in 2015.

Debt

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Debt

NOTE 10. DEBT

On May 11, 2015, the Company entered into a loan and security agreement (the “Loan Agreement”) with IMMY Funding LLC, (“LSAF”), an affiliate of Life Sciences Alternative Funding LLC, as lender and collateral agent. Pursuant to the terms of the Loan Agreement, as amended subsequent to December 31, 2015 (see Note 16), LSAF made available to the Company a term loan in the aggregate principal amount of up to $10,000, all of which was drawn on May 11, 2015. The term loan bears interest at a fixed per-annum rate of 12.5% and allows for 2% of the interest to be paid-in-kind until either February 2017 or May 2017, such date dependent upon the Company’s ability to meet certain revenue or cash balance measures. The Company is permitted to pay interest only for the first three years and after the end of the interest-only period, the Company will be required to pay interest, plus repayments of the principal amount of the term loan, in 36 equal monthly installments. The interest-only period may be reduced to 20 months if the Company does not meet certain minimum revenue or cash balance requirements, in which case the Company would be required to pay interest, plus repayments of the principal amount of the term loans, in 24 equal monthly installments. All amounts owed under the Loan Agreement, including a final fee of 5% of the aggregate principal amount of the term loan, will be due on the earlier of May 11, 2021, or 24 months after the end of the interest-only period. The Company incurred expenses of approximately $735 in connection with the Loan Agreement. The final fee and expenses are being amortized as interest expense over the term of the debt using the interest method and the related liability of $500 for the final fee is included in accrued expenses (see Note 9) in the accompanying consolidated balance sheet.

Pursuant to the terms of the Loan Agreement, the Company is bound by certain affirmative covenants setting forth actions that the Company must take during the term of the Loan Agreement, including, among others, certain information delivery requirements, obligations to maintain certain insurance and certain notice requirements. Additionally, the Company is bound by certain negative covenants setting forth actions that the Company may not take during the term of the Loan Agreement without LSAF’s consent, including, among others, disposing of certain of the Company’s or its subsidiaries’ business or property, incurring certain additional indebtedness, entering into certain merger, acquisition or change of control transactions, paying certain dividends or distributions on or repurchasing any of the Company’s capital stock, or incurring any lien or other encumbrance on the Company’s or its subsidiaries’ assets, subject to certain permitted exceptions. Upon the occurrence of an event of default under the Loan Agreement (subject to cure periods for certain events of default), all amounts owed by the Company thereunder may be declared immediately due and payable by LSAF. Events of default include, among others, the following: the occurrence of certain bankruptcy events; the failure to make payments under the Loan Agreement when due; the occurrence of a material adverse change in the business, operations or condition of the Company or any of its subsidiaries; the breach by the Company or its subsidiaries of certain of their material agreements with third parties; the initiation of certain regulatory enforcement actions against the Company or its subsidiaries; the rendering of certain types of fines or judgments against the Company or its subsidiaries; any breach by the Company or its subsidiaries of any covenant (subject to cure periods for certain covenants) made in the Loan Agreement; and the failure of any representation or warranty made by the Company or its subsidiaries in connection with the Loan Agreement to be correct in any material respect when made.

The Company’s obligations under the Loan Agreement are guaranteed on a secured basis by its wholly owned subsidiaries. Each of the Company and its subsidiaries has granted LSAF a security interest in substantially all of its personal property, rights and assets, including intellectual property rights and equity ownership, to secure the payment of all amounts owed under the Loan Agreement.

In connection with the Loan Agreement, the Company issued to LSAF a warrant to purchase up to 125,000 shares of the Company’s common stock, (the “Warrant”), which was exercisable immediately, had an exercise price of $7.85 per share upon issuance and has a term of ten years. The relative fair value of the Warrant was approximately $840 and was estimated using the Black-Scholes-Merton model with the following assumptions: fair value of the Company’s common stock at issuance of $7.97 per share; ten-year contractual term; 109% volatility; 0% dividend rate; and a risk-free interest rate of 1.25%. The relative fair value of the Warrant was recorded as a debt discount, decreasing notes payable and increasing additional paid-in capital on the accompanying consolidated balance sheet. The debt discount is being amortized to interest expense over the term of the debt using the interest method. For the year ended December 31, 2015, debt discount and issuance costs amortization was approximately $281.

Subsequent to December 31, 2015, the Loan Agreement was amended as further described in Note 16.

Note payable at December 31, 2015 were as follows:

	December 31, 2015
LSAF 12.5% note payable	$	10,000
Add: Interest paid-in-kind		130
Less: Discount on note for issuance costs
and relative fair value of warrants		(1,794	)
Less: Current portion		-
Long-term portion	$	8,336

Future minimum payments under notes payable outstanding at December 31, 2015 are as follows:

Years Ending December 31, 2015	Amount
2016	$	1,076
2017		1,214
2018		2,979
2019		4,183
2020		4,183
Thereafter		1,743
Total minimum payments		15,378
Less: amount representing interest and interest paid-in-kind		5,378
Note payable, gross		10,000
Add: interest paid-in-kind		130
Less: unamortized discount and issuance costs		(1,794	)
Note payable and interest paid-in-kind, net of unamortized debt discount and issuance costs	$	8,336

Stockholders' Equity (Deficit) and Stock-Based Compensation

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Stockholders' Equity (Deficit) and Stock-Based Compensation

NOTE 11. STOCKHOLDERS’ EQUITY (DEFICIT) AND STOCK-BASED COMPENSATION

Common Stock

On September 10, 2014, the Company decreased the number of authorized shares of its capital stock to 95,000,000.

At December 31, 2015 and 2014, the Company had 90,000,000 shares of common stock, $0.001 par value, authorized.

Issuances During the Year Ended December 31, 2014

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

In October 2014, the Company issued 4,000 shares of restricted common stock to a consultant, valued at $29 in consideration for consulting services provided. The fair value of the shares of common stock issued was recorded as stock-based compensation during the year ended December 31, 2014.

During the year ended December 31, 2014, the Company issued a total of 227,216 shares of common stock as a result of stock option exercises. Of these, the Company received net cash proceeds of $584 for the issuance of 160,777 shares of common stock upon the exercise of stock options to purchase the same number of shares of common stock with exercise prices ranging from $3.68 to $4.00 per share and the Company received no cash proceeds for the issuance of 66,439 shares of common stock upon the exercise pursuant to cashless exercise provisions of stock options to purchase 146,652 shares of common stock with exercise prices ranging from $3.60 to $6.00 per share.

During the year ended December 31, 2014, the Company issued 1,954 shares of common stock to employees related to the vesting of RSUs. In connection with these common stock issuances, the Company withheld 1,518 shares of common stock for payroll tax withholdings totaling $13.

During the year ended December 31, 2014, the Company issued a total of 47,829 shares of common stock as a result of warrant exercises. Of these, the Company received gross cash proceeds of $38 for the issuance of 6,391 shares of common stock upon the exercise of warrants to purchase the same number of shares of common stock with an exercise price of $5.925 and the Company received no cash proceeds for the issuance of 41,438 shares of common stock upon the exercise pursuant to cashless exercise provisions of warrants to purchase 123,715 shares of common stock with an exercise price of $5.25 per share.

During the year ended December 31, 2014, 27,218 shares of the Company’s common stock underlying RSUs issued to directors vested, but the issuance and delivery of these shares are deferred until the respective director resigns.

Issuances During the Year Ended December 31, 2015

During the year ended December 31, 2015, the Company issued a total of 130,457 shares of common stock as a result of option exercises. The Company received no cash proceeds for the issuance of the shares of common stock upon the exercise pursuant to cashless exercise provisions of stock options to purchase 255,600 shares of common stock with exercise prices ranging from $3.20 to $4.51 per share.

During the year ended December 31, 2015, the Company issued 1,611 shares of common stock to employees related to the vesting of RSUs, net of 1,241 shares of common stock withheld for payroll tax withholdings totaling $10.

Additionally, in January 2015, the Company issued 8,521 shares of its common stock in connection with RSUs that had been awarded to a non-employee director and had vested, but were not issued and settled until the resignation of the director on January 1, 2015.

During the year ended December 31, 2015, the Company issued a total of 220,912 shares of common stock as a result of warrant exercises. Of these, the Company received cash proceeds of $1,248 for the issuance of 209,980 shares of common stock upon the exercise on a cash basis of warrants to purchase the same number of shares of common stock with an exercise price of $5.925, and the Company received no cash proceeds for the issuance of 10,932 shares of common stock upon the exercise pursuant to cashless exercise provisions of warrants to purchase 30,457 shares of common stock with an exercise price of $5.25 per share.

In November 2015, the Company entered into a Controlled Equity Offering^SMsales agreement (the “Sales Agreement”) with Cantor Fitzgerald & Co., as agent (“Cantor Fitzgerald”), pursuant to which the Company may offer and sell, from time to time through Cantor Fitzgerald, shares of our common stock having an aggregate offering price as set forth in the Sales Agreement and a related prospectus supplement filed with the Securities and Exchange Commission. The Company agreed to pay Cantor Fitzgerald a cash commission of 3.0% of the aggregate gross proceeds from each sale of shares under the Sales Agreement and to reimburse Cantor Fitzgerald for certain fees and expenses in an amount not to exceed $50. During the fourth quarter of 2015, 72,421 shares of common stock were sold under the Sales Agreement for gross proceeds of approximately $529 and net proceeds, after deducting $16 in commission fees and $109 in offering expenses payable by the Company, of approximately $404. As of December 31, 2015, approximately $9,470 remained available for sale pursuant to this Sales Agreement, although such amount was subsequently reduced in March 2016 (see Note 16).

In January 2015, the Company issued 63,525 shares of restricted common stock, valued at $425, in connection with the Park Acquisition (see Note 3).

During the year ended December 31, 2015, 28,606 shares of the Company’s common stock underlying RSUs issued to directors vested, but the issuance and delivery of these shares are deferred until the director resigns.

Preferred Stock

At December 31, 2015 and 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 December 31, 2015, the Plan provides for the issuance of a maximum 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, RSUs and restricted stock. The Plan is administered by the Compensation Committee of the Company’s Board of Directors. The Company had 1,353,379 shares available for future issuances under the Plan at December 31, 2015.

Stock Options

A summary of the stock option activity under the Plan for the year ended December 31, 2015 is as follows:

	Number of shares			Weighted Avg. Exercise Price		Weighted Avg. Remaining Contractual Life		Aggregate Intrinsic Value
Options outstanding - January 1, 2015		1,029,240		$	5.74
Options granted		825,946		$	7.80
Options exercised		(255,600	)	$	3.86
Options cancelled/forfeit		(55,560	)	$	9.21
Options outstanding - December 31, 2015		1,544,026		$	7.03		5.81	$	1,216
Options exercisable		653,558		$	6.22		5.71	$	1,073
Options vested and expected to vest		1,454,979		$	6.99		5.81	$	1,202

The aggregate intrinsic value in the table above represents the total pre-tax amount of the proceeds, net of exercise price, which would have been received by option holders if all option holders had exercised and immediately sold all options with an exercise price lower than the market price on December 31, 2015, based on the closing price of the Company’s common stock of $6.93 on that date. The aggregate intrinsic value of stock options exercised during the year ended December 31, 2015 was approximately $1,023.

During 2015 and 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 three to 10 years. Vesting terms for options granted in 2015 and 2014 to employees, directors and consultants typically included one of the following vesting schedules: 25% of the shares subject to the option vest and become exercisable on the first anniversary of the grant date and the remaining 75% of the shares subject to the option vest and become exercisable quarterly in equal installments thereafter over three years; quarterly vesting over three years; 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. The expected volatility is based on the historical volatilities of the common stock of the Company and comparable publicly traded companies based on the Company’s belief that 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.

On July 31, 2015, the Company granted to its Chief Executive Officer, Mark Baum, an option (the “Baum Performance Option”) to purchase 600,000 shares of the Company’s common stock at an exercise price of $7.87 per share under the Plan subject to the satisfaction of certain market-based vesting criteria. The market-based vesting criteria are separated into five tranches and require that the Company achieve and maintain certain average stock price targets ranging from $9 per share to $15 per share during the five year period following the grant date. These market-based vesting conditions are as follows:

Tranche	Number of Shares	Target Share Price
Tranche 1	200,000 shares	$9.00 or greater
Tranche 2	100,000 shares	$10.00 or greater
Tranche 3	100,000 shares	$12.00 or greater
Tranche 4	100,000 shares	$14.00 or greater
Tranche 5	100,000 shares	$15.00 or greater

The Baum Performance Option terminates on the fifth anniversary of the grant date. The fair value of the Baum Performance Option was $2,784 using a Monte Carlo Simulation with a five-year life, 80% volatility and a risk free interest rate of 1.54 %.

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

	2015		2014
Weighted-average fair value of options granted	$	6.22	$	5.22
Expected terms (in years)		5.81 - 6.11		5.81 - 6.91
Expected volatility		101 - 121%		96 - 102%
Risk-free interest rate		1.39 - 1.68%		1.37 - 1.65%
Dividend yield		-		-

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

	2015		2014
Weighted-average fair value of options granted	$	6.49	$	6.15
Expected terms (in years)		10		2.5 - 10
Expected volatility		108 - 109%		78 - 97%
Risk-free interest rate		1.06- 1.63%		0.10 - 1.68%
Dividend yield		-		-

The following table summarizes information about stock options outstanding and exercisable at December 31, 2015:

	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		125,000		6.07	$	2.40		125,000	$	2.40
$3.68 - $4.50		207,123		4.06	$	4.27		165,252	$	4.31
$5.49 - $7.99		958,316		6.02	$	7.55		159,222	$	6.66
$8.06 - $8.99		248,557		6.32	$	8.90		199,054	$	8.93
$42.80		5,030		4.62	$	42.80		5,030	$	42.80
		1,544,026		5.81	$	7.03		653,558	$	6.22

As of December 31, 2015, there was approximately $3,649 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 3.8 years. The stock-based compensation for all stock options was $1,747 and $1,138 during the years ended December 31, 2015 and 2014, respectively.

Restricted Stock Units

RSU awards are granted subject to certain vesting requirements and other restrictions, including performance and market based vesting criteria. The grant-date fair value of the RSUs, which has been determined based upon the market value of the Company’s 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.

Grants During the Year Ended December 31, 2014

During the year ended December 31, 2014, the Company granted an aggregate of 26,492 RSUs to its non-employee directors valued at $200. These RSUs vest in equal quarterly installments over a one year period subject to the director’s continued service at the vesting date, but the issuance and delivery of these shares are deferred until the director resigns.

Grants During the Year Ended December 31, 2015

During February 2015, the Company granted 30,000 RSUs to its Chief Financial Officer, Andrew R. Boll and 30,000 RSUs to its Chief Commercial Officer, John P. Saharek, valued at $442 in the aggregate. The RSUs were granted pursuant to the Plan and will vest on the third anniversary of the RSU grant date, subject to the applicable employee’s continued employment with the Company on such date and accelerated vesting of all unvested shares thereunder upon the occurrence of a change in control (as defined in the Plan).

During February 2015, the Company granted 157,500 RSUs to Mr. Boll, which are subject to the satisfaction of certain market-based and continued service conditions (the “Boll Performance Equity Award”). The market-based vesting criteria are separated into five tranches and require that the Company achieve and maintain certain stock price targets ranging from $10 per share to $30 per share during the three-year period following the grant date. With certain limited exceptions, Mr. Boll must be employed with the Company on the third anniversary of the grant date in order for the Boll Performance Equity Award to vest.

The market-based vesting conditions applicable to the Boll Performance Equity Award are as follows:

Tranche	Number of Shares	Target Share Price
Tranche 1	30,000 shares	$10.00 or greater
Tranche 2	30,000 shares	$15.00 or greater
Tranche 3	30,000 shares	$20.00 or greater
Tranche 4	30,000 shares	$25.00 or greater
Tranche 5	37,500 shares	$30.00 or greater

The initial fair value of the Boll Performance Equity Award was $228 using a Monte Carlo Simulation with a three-year life, 60% volatility and a risk free interest rate of 0.77%.

During the year ended December 31, 2015, the Company granted an aggregate of 34,166 RSUs to its non-employee directors valued at $270. These RSUs vest in equal quarterly installments over a one year period subject to the director’s continued service at the vesting date, but the issuance and delivery of these shares are deferred until the director resigns.

A summary of the Company’s RSU activity and related information for the year ended December 31, 2015 is as follows:

	Number of RSUs			Weighted Average Grant Date Fair Value
RSUs unvested - January 1, 2015		1,276,815		$	3.20
RSUs granted		251,666		$	3.74
RSUs vested		(31,458	)	$	7.40
RSUs cancelled/forfeit		(9,062	)	$	5.98
RSUs unvested at December 31, 2015		1,487,961		$	3.18

As of December 31, 2015, the total unrecognized compensation expense related to unvested RSUs was approximately $1,153 which is expected to be recognized over a weighted-average period of 0.60 years, based on estimated vesting schedules. The stock-based compensation for RSUs was $1,671 and $1,332 during the years ended December 31, 2015 and 2014, respectively.

Warrants

From time to time, the Company issues warrants to purchase shares of the Company’s common stock to investors, lenders (see Notes 10 and 16), underwriters and other non-employees for services rendered or to be rendered in the future.

In April 2015, warrants to purchase 334,819 shares of the Company’s common stock with an exercise price of $5.925 were cancelled following the expiration of their contractual term.

A summary of warrant activity during the year ended December 31, 2015 is as follows:

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

Warrants outstanding - January 1, 2015		690,944		$	6.05
Granted		125,000		$	7.85
Exercised		(240,437	)	$	5.45
Expired		(334,819	)	$	5.93
Warrants outstanding and exercisable - December 31, 2015		240,688		$	7.41
Weighted average remaining contractual life of the outstanding warrants in years - December 31, 2015		5.99

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 year ended December 31, 2015 was approximately $528.

All warrants outstanding as of December 31, 2015 are included in the following table:

	Warrants Outstanding					Warrants Exercisable
		Warrants		Exercise		Warrants		Expiration
Warrant Series	Issue Date	Outstanding		Price		Exercisable		Date
Lender warrants (see Notes 10 and 16)	5/11/2015		125,000	$	7.85		125,000		5/11/2025
Underwriter warrants	2/7/2013		55,688	$	5.25		55,688		2/7/2018
Warrants issued to investor relations consultant	7/19/2013		60,000	$	8.50		60,000		7/19/2018
			240,688	$	7.41		240,688

The stock-based compensation for warrants issued was $0 and $27 during the years ended December 31, 2015 and 2014, respectively.

The Company recorded stock-based compensation (including issuance of common stock for services and accrual for stock-based compensation) related to equity instruments granted to employees, directors and consultants as follows:

	For the		For the
	Year Ended		Year Ended
	December 31, 2015		December 31, 2014
Employees - selling and marketing	$	370	$	79
Employees - general and administrative		2,720		2,095
Directors - general and administrative		268		146
Consultants - selling and marketing		83		89
Consultants - general and administrative		-		147
Consultants - research and development		-		9
Total	$	3,441	$	2,565

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 12. INCOME TAXES

The Company is subject to taxation in the United States, California, New Jersey, Texas and Pennsylvania. The provision for income taxes for the years ended December 31, 2015 and 2014 are summarized below:

	December 31, 2015			December 31, 2014
Current:
Federal	$	-		$	-
State		5			3
Total current	$	5		$	3

Deferred:
Federal	$	3,141		$	3,023
State		988			871
Change in valuation allowance		(4,129	)		(3,894	)
Total deferred		-			-
Income tax provision	$	5		$	3

Income taxes for the years ended December 31, 2015 and 2014, are recorded in the general and administrative expenses line item in the accompanying consolidated statements of operations.

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

	December 31, 2015			December 31, 2014
U.S. federal statutory tax rate		35.00	%		35.00	%
Benefit of lower tax brackets		(1.00	)%		(1.00	)%
State tax benefit, net		(0.03	)%		(0.03	)%
Research and development credits		0.00	%		0.00	%
Employee stock based compensation		(0.67	)%		(1.03	)%
Loss on debt conversion		0.00	%		0.00	%
Other		(0.71	)%		(0.21	)%
Valuation allowance		(32.62	)%		(32.76	)%
Effective income tax rate		(0.03	)%		(0.03	)%

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

	December 31, 2015			December 31, 2014
Deferred tax assets (liabilities):
NOL’s	$	15,099		$	10,923
Depreciation and amortization		121			(7	)
Other		346			65
Research & development credits		556			556
Deferred stock compensation		3,237			2,646
Park stock purchase identifiable intangibles		(1,047	)		-
Unrealized gain or loss on investments		-			-
Total net deferred tax assets		18,312			14,183
Valuation allowance		(19,359	)		(14,183	)
Net deferred tax liabilities	$	(1,047	)	$	-

Realization of deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain. Accordingly, the net deferred tax assets have been fully offset by a valuation allowance. The valuation allowance increased by approximately $4,900 and $3,900 in 2015 and 2014, respectively.

As of December 31, 2015, the Company had net operating loss carryforwards for federal income tax purposes of approximately $38,289 which expire beginning in the year 2027 and federal research and development tax credits of approximately $354 which expire beginning in the year 2026. As of December 31, 2015, the Company had net operating loss carryforwards for state income tax purposes of approximately $35,114 which expire beginning in the year 2017 and state research and development tax credits of approximately $305 which do not expire.

The deferred tax asset at December 31, 2015 does not include approximately $1,030 and $1,030 of excess tax benefits from employee stock option exercises and RSU vests that are a component of the federal and California net operating loss carryover, respectively. The Company’s stockholders’ equity balance will be increased if and when such excess tax benefits are ultimately realized.

Utilization of the net operating losses may be subject to substantial annual limitation due to federal and state ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such annual limitations could result in the expiration of the net operating losses ad credits before their utilization.

The Company did not have any unrecognized tax benefits as of December 31, 2015 and 2014, all of which is offset by a full valuation allowance. These unrecognized tax benefits, if recognized, would not affect the effective tax rate.

Employee Savings Plan

12 Months Ended

Dec. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Employee Savings Plan

NOTE 13. 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 certain matching contributions to the plan in amounts up to 4% of the participants’ annual cash compensation, subject to annual limits. The Company contributed approximately $146 and $56 to the plan during the years ended December 31, 2015 and 2014, respectively.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE 14. COMMITMENTS AND CONTINGENCIES

Capital Leases

The Company leases equipment under capital leases with an interest rate of 4.25% per annum. At December 31, 2015, future payments under the Company’s capital leases were as follows:

Year ending December 31, 2015
2016		22
2017		1
Total minimum lease payments		23
Less amount representing interest		(1	)
Present value of future minimum lease payments		22
Less current portion		(21	)
Capital lease obligation, net of current portion	$	1

The value of the equipment under capital leases as of December 31, 2015 and 2014 was $60 and $53, respectively, with related accumulated depreciation of $28 and $9, respectively.

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 January 2015, the Company entered into a commercial lease agreement, for the lease to Park of approximately 4,500 square feet of laboratory and office space. The monthly rent amount is $10 and includes annual increases of approximately 3%. The current lease term expires on December 31, 2020.

In February 2015, the Company entered into a lease agreement for approximately 8,602 square feet of laboratory, warehouse and office space in Roxbury, New Jersey. The current lease term expires on July 31, 2022. The monthly rent amount is $10 and includes annual increases of approximately 3.75%, and the lease allows for the first five months of rent amounts to be abated. This facility is currently undergoing construction to serve as an outsourcing facility and pharmacy.

In August 2015, the Company entered into a lease agreement for approximately 1,100 square feet of laboratory, warehouse and office space in Allen, Texas. The lease term expired on April 30, 2016, and subsequent to December 31, 2015 the lease was extended through October 31, 2019. The monthly rent amount is $3 and includes annual increases of approximately 2%.

Rent expense for the years ended December 31, 2015 and 2014 was $641 and $306, respectively. The following represents future annual minimum lease payments, net of expected sublease income, as of December 31, 2015:

2016	$	570
2017		495
2018		496
2019		257
2020		266
Thereafter		213
Total	$	2,297

Legal

Urigen Litigation

The Company, as the plaintiff, filed civil action with the San Diego Superior Court against Urigen Pharmaceuticals, Inc. (“Urigen”), wherein the Company outlined serious concerns regarding material failures and inaccuracies of the representation and warranties provided by Urigen in the Urigen License Agreement (defined below), which have affected the Company’s ability to realize the expected benefit of the Urigen License Agreement. Urigen, as the defendant, has yet to file any responsive pleading to the case and the case is at a preliminary stage. Management believes the outcome of this claim may have a material effect on the Company’s consolidated financial position and results of operations, although such amount cannot be reasonably estimated at this time.

General and Other

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 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 incurred any payments for these obligations and, therefore, no liabilities have been recorded for these indemnities in the accompanying consolidated balance sheets.

Urigen License

On October 24, 2014 (the “Urigen Effective Date”), the Company entered into a license agreement (the “Urigen License”) with 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 (“HLA”), a heparin and alkalinized lidocaine compounded formulation, for the prevention or treatment of disorders of the lower urinary tract.

As consideration for the license granted under the Urigen License, the Company agreed to pay Urigen annual tiered royalties based on sales of HLA, subject to certain minimum annual royalty payments. The annual tiered royalties consist of the greater of (i) $0.50 per dose (dollar amount not presented in thousands), and (ii) 15%-20% of the Company’s net sales of HLA, with the royalty amount within such range depending on the Company’s aggregate sales of HLA during the period to which the royalty payment applies. The minimum annual royalty payment consists of (a) for the 2015 calendar year, 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, less the aggregate royalties paid to Urigen under the Existing Sublicenses during the 2015 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 HLA 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 HLA according to the terms of a diligence plan agreed to by the parties, which efforts will include, without limitation, the Company’s investment of $2,000 in commercialization efforts of HLA, which investment and timeline can be adjusted dependent on market circumstances, and is expected to be incurred over 18-24 months following the Urigen Effective Date. The Company has accrued an amount based on the terms of the agreement related to the minimum annual royalty.

The Urigen License was non-exclusive until April 24, 2015, when the Company exercised its option to convert the non-exclusive license to an exclusive license for the remaining term of the Urigen License. Legacy sublicensees, who previously had non-exclusive licensed rights to compound and sell HLA (the “Existing Sub-licensees”), were provided written notice of the Company’s intent to terminate those non-exclusive license agreements, on or about April 24, 2015. Over the following 60 to 90 days (the “Transition Period”) the Company entered into agreements with the Existing Sub-licensees to transfer existing refill prescriptions to the Company’s wholly owned pharmacies. These agreements required various one-time payments and limited future payments related to transferred prescriptions. Urigen agreed that any revenue received from the Existing Sub-licensees from HLA sales that are consistent with their respective agreements with Urigen, will be retained by the Company (without any related royalty obligation to Urigen). Beginning on April 24, 2015, the Company was due royalty payments on any HLA prescriptions filled by Existing Sub-licensees during the Transition Period and any additional period the sublicenses filled prescriptions for HLA. During the year ended December 31, 2015, the Company recognized $51 in royalty revenues related to HLA prescriptions filled by the Existing Sub-licensees.

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 terminates upon the first commercial sale of HLA by Urigen, its affiliates, or a third party after the U.S. Food and Drug Administration (the “FDA”) grants Urigen approval to market HLA 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 HLA following the FDA grants Urigen such market approval.

PCCA Commission Agreement

On December 21, 2015, the Company entered into a Commission Agreement (the “PCCA Commission Agreement) with Professional Compounding Centers of America, Inc. (“PCCA”). The PCCA Commission Agreement replaces a Strategic Alliance Agreement (the “PCCA Strategic Alliance Agreement”) entered into on February 18, 2013 and a License Agreement (the “PCCA License Agreement) entered into on August 30, 2012, in each case between the Company and PCCA. Upon the execution of the PCCA Commission Agreement, the Company and PCCA mutually agreed to terminate the PCCA Strategic Alliance Agreement and PCCA License Agreement. No amounts were due or paid under either the PCCA Strategic Alliance Agreement or PCCA License Agreement.

PCCA has previously introduced to the Company certain PCCA members, which led to the Company’s acquisition of certain intellectual property (the “PCCA Member IP”) from such PCCA members. Under the terms of the PCCA Strategic Alliance Agreement, PCCA had the right to receive certain commissions based on the Company’s net sales, if any, of any products utilizing the PCCA Member IP. The primary purpose of the PCCA Commission Agreement is to specifically identify the PCCA Member IP subject to this arrangement and to revise the terms and the amount of the commission payments. As a result, pursuant to the terms of the PCCA Commission Agreement, PCCA continues to hold its right to receive commissions based on the Company’s net sales, if any, of any products utilizing the PCCA Member IP. No commission amounts were paid or accrued under this agreement for the year ended December 31, 2015.

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 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. No royalty amounts were paid or accrued under these agreements during the years ended December 31, 2015 and 2014.

Segment Information and Concentrations

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Information and Concentrations

NOTE 15. SEGMENT INFORMATION AND CONCENTRATIONS

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 2015 and 2014 are attributed to the United States. All long-lived assets at December 31, 2015 and 2014 are located in the United States.

The Company sells its compounded formulations to a large number of customers. No single customer contributed 10% or more of the Company’s total pharmacy sales in the years ended December 31, 2015 and 2014.

The Company receives its active pharmaceutical ingredients from three main suppliers. These suppliers collectively accounted for 43% and 84% of drug and chemical purchases during the years ended December 31, 2015 and 2014, respectively.

- 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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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 4: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Subsequent Events

12 Months Ended

Dec. 31, 2015

Subsequent Events [Abstract]

Subsequent Events

NOTE 16. SUBSEQUENT EVENTS

The Company has performed an evaluation of events occurring subsequent to December 31, 2015 through the filing date of this Annual Report on Form 10-K (the “Annual Report”). Based on its evaluation, nothing other than the events described below needs to be disclosed.

LSAF Note

On January 22, 2016, the Company entered into a note purchase agreement (the “NPA”) with, and issued an 8.00% Convertible Senior Secured Note in the principal amount of $3,000 (the “LSAF Note”) to, LSAF. Pursuant to the terms of the NPA, on the date thereof, the Company issued the LSAF Note to LSAF and, as consideration therefor, LSAF paid the Company in cash the full principal amount of the LSAF Note.

Pursuant to the terms of the LSAF Note, the Company is obligated to pay interest on the principal amount of the LSAF Note monthly in cash at a fixed per-annum rate of 8.00%, and the Company is obligated to repay the full principal amount of the LSAF Note in cash on May 11, 2021. The Company is permitted to redeem the LSAF Note prior to its maturity at any time on or after March 1, 2018 for cash purchase prices equal to 109% - 105% of the outstanding principal amount of the LSAF Note, depending on the date of redemption. The LSAF Note is convertible by the holder at any time into 169.4915 shares of the Company’s common stock, per $1 outstanding principal amount of the LSAF Note, subject to anti-dilution adjustment upon the Company’s first equity financing while the LSAF Note is outstanding in which it receives gross proceeds of at least $3,000, if such equity financing is completed at a per share price that is less than the conversion rate of the LSAF Note, and also subject to adjustment upon stock combinations or splits, certain recapitalizations, stock or cash dividends or other distributions of property or equity rights. Additionally, in the event of certain change of control events affecting the Company, the Company may be required, at the option of LSAF, to repurchase the LSAF Note in cash for the greater of 105% of the outstanding principal amount of the LSAF Note or the value of the shares of common stock issuable upon conversion of the LSAF Note.

In connection and concurrently with the execution of the NPA and the issuance of the LSAF Note, the Company and LSAF also entered into an amendment (the “Loan Agreement Amendment”) to the Loan Agreement (See Note 10). The Loan Agreement Amendment modifies the terms of the Loan Agreement in order to eliminate the potential borrowing of a second term loan thereunder and to permit the Company to issue the LSAF Note. Additionally, the Company and LSAF entered into an amendment (the “Warrant Amendment”) to the Warrant that was issued to LSAF in connection with the Loan Agreement. The Warrant Amendment modifies the terms of the Warrant in order to reduce the exercise price thereof to $5.90, which is consistent with the initial conversion rate of the LSAF Note, and to add an anti-dilution adjustment provision that is consistent with the same such provision in the LSAF Note.

On March 16, 2016, upon the closing of the Offering (as defined and described below), and pursuant to the anti-dilution adjustment provisions of the LSAF Note and the Warrant, the conversion rate of the LSAF Note was adjusted so that the note is convertible by the holder at any time into 277.77 shares of the Company’s common stock, per $1 outstanding principal amount of the LSAF Note, and the exercise price of the Warrant was adjusted to $3.60 per share.

Option Exercises

In February 2016, the Company issued 15,000 shares of common stock as a result of option exercises. The Company received $55 in cash proceeds for the issuance of the shares of common stock upon the exercise on a cash basis of stock options to purchase 15,000 shares of common stock with an exercise price of $3.68 per share.

Offering of Common Stock

On March 11, 2016, the Company entered into an Underwriting Agreement (the “Underwriting Agreement”) with National Securities Corporation (the “Representative”), as the representative of the several underwriters named therein (collectively, the “Underwriters”), pursuant to which the Company agreed to sell to the Underwriters, and the Underwriters agreed, severally and not jointly, to purchase from the Company, in a firm-commitment public offering (the “Offering”), 2,900,000 shares of the Company’s common stock and up to an additional 435,000 shares of the Company’s common stock within 45 days from the date of the Underwriting Agreement to cover over-allotments, if any. Pursuant to the terms of the Underwriting Agreement, the Underwriters purchased the shares of common stock from the Company at a price of $3.348 per share, and the Underwriters sold the shares of Common Stock to the public at a public offering price of $3.60 per share. The Offering, including the Underwriters’ exercise of the over-allotment option, closed on March 16, 2016. Upon the closing of the Offering, the Company received net proceeds of approximately $11,100, after deducting the underwriting discount and the estimated offering expenses payable by the Company. The Company intends to use the net proceeds from the Offering for working capital and general corporate purposes.

Sales Agreement

On March 16, 2016, in connection with the Offering, the Company reduced the amount available for sale pursuant to the Sales Agreement with Cantor Fitzgerald to shares of its common stock having an aggregate offering price of $2,625, leaving an aggregate of $2,100 available for future sales of shares thereunder as of March 23, 2016.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Use of Estimates

Use of Estimates

Liquidity

Liquidity

Revenue Recognition and Deferred Revenue

Revenue Recognition and Deferred Revenue

Product Revenues

License Revenues

Cost of Sales

Cost of Sales

Research and Development

Research and Development

Intellectual Property

Intellectual Property

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

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.

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 years ended December 31, 2015 and 2014, the Company did not recognize any impairment of its long-lived assets.

Third Party Billing and Collection Agreements

Third Party Billing and Collection Agreements

Deferred Rent

Deferred Rent

Debt Issuance Costs and Debt Discount

Debt Issuance Costs and Debt Discount

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 years ended December 31, 2015 and 2014:

	For the			For the
	Year Ended			Year Ended
	December 31, 2015			December 31, 2014

Numerator – net loss	$	(15,899	)	$	(10,118	)
Denominator – weighted average number of shares outstanding, basic and diluted		9,576,142			9,132,989
Net loss per share, basic and diluted	$	(1.66	)	$	(1.11	)

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2015

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 years ended December 31, 2015 and 2014:

	For the			For the
	Year Ended			Year Ended
	December 31, 2015			December 31, 2014

Numerator – net loss	$	(15,899	)	$	(10,118	)
Denominator – weighted average number of shares outstanding, basic and diluted		9,576,142			9,132,989
Net loss per share, basic and diluted	$	(1.66	)	$	(1.11	)

Acquisitions (Tables)

12 Months Ended

Dec. 31, 2015

Acquisition of Pharmacy Creations [Member]

Schedule of Acquisition Date Fair Value of Consideration

The total acquisition date fair value of the consideration transferred and to be transferred is estimated at approximately $1,114, as follows:

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

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	$	5
Accounts receivable		58
Prepaid expenses and other assets		30
Inventory		213
Property and equipment		45
Intangible assets		659
Total identifiable assets acquired		1,010
Accounts payable and accrued liabilities		120
Other liabilities		107
Total liabilities assumed		227
Total identifiable assets less liabilities assumed		783
Goodwill		331

Net assets acquired	$	1,114

Schedule of Result of Operation from Acquisition

The amount of revenues and operating loss of PC included in the Company’s consolidated statement of operations from the acquisition date through the period ended December 31, 2014 are as follows:

Total revenues		$	1,652
Operating loss		$	(663	)

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	10 - 15 years
Trade name		5	5 years
Non-competition covenant		50	4 years
State pharmacy licenses		8	25 years
	$	659

Acquisition of Park [Member]

Schedule of Acquisition Date Fair Value of Consideration

The total acquisition date fair value of consideration transferred and to be transferred is estimated as follows:

Cash payment to Sellers at closing	$	3,100
Restricted common stock issuance to Sellers at closing		425
Deferred tax liability		1,047
Deferred consideration to Sellers		591
Total acquisition date fair value	$	5,163

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	$	95
Accounts receivable		399
Inventories		232
Furniture and equipment		252
Intangible assets		2,629
Total identifiable assets acquired		3,607
Accounts payable and accrued expenses		304
Other liabilities		35
Total liabilities assumed		339
Total identifiable assets less liabilities assumed		3,268
Goodwill		1,895
Net assets acquired	$	5,163

Schedule of Result of Operation from Acquisition

The amount of revenues and net income of Park included in the Company’s consolidated statement of operations from the acquisition date through the period ended December 31, 2015 are as follows:

Total revenues		$	6,134
Net income		$	1,088

Schedule of Intangible Assets Acquisition

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

	Fair Value		Useful Life
Customer relationships	$	2,387	3 - 15 years
Trade name		10	5 years
Non-competition clause		224	3 years
State pharmacy licenses		8	25 years
	$	2,629

Schedule of Pro Forma Financial Information

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

	For the
	Year Ended
	December 31, 2014
Total revenues	$	7,847
Net loss	$	(9,850	)

Inventories (Tables)

12 Months Ended

Dec. 31, 2015

Inventory Disclosure [Abstract]

Schedule of Inventories

The composition of inventories as of December 31, 2015 and 2014 was as follows:

	December 31, 2015		December 31, 2014
Raw materials	$	775	$	146
Work in progress		-		98
Finished goods		637		129
Total inventories	$	1,412	$	373

Prepaid Expenses and Other Current Assets (Tables)

12 Months Ended

Dec. 31, 2015

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

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets at December 31, 2015 and 2014 consisted of the following:

	December 31, 2015		December 31, 2014
Prepaid insurance	$	297	$	124
Other prepaid expenses		370		82
Deposits and other current assets		119		35
Total prepaid expenses and other current assets	$	786	$	241

Furniture and Equipment (Tables)

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Schedule of Furniture and Equipment

Furniture and equipment at December 31, 2015 and 2014 consisted of the following:

	December 31, 2015			December 31, 2014
Furniture and equipment, net:
Computer software and hardware	$	323		$	53
Furniture and equipment		350			153
Lab and pharmacy equipment		538			62
Leasehold improvements		1,746			20
		2,957			288
Accumulated depreciation and amortization		(300	)		(45	)
	$	2,657		$	243

Intangible Assets and Goodwill (Tables)

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

The Company’s intangible assets at December 31, 2015 consisted of the following:

	Amortization
	periods			Accumulated			Net
	(in years)	Cost		amortization			Carrying value
Patents	17-19 years	$	64	$	(1	)	$	63
Trademarks	Indefinite		121		-			121
Customer relationships	3-15 years		2,998		(297	)		2,701
Trade name	5 years		16		(4	)		12
Non-competition clause	3-4 years		294		(99	)		195
State pharmacy licenses	25 years		45		(2	)		43
		$	3,538	$	(403	)	$	3,135

The Company’s intangible assets at December 31, 2014 consisted of the following:

	Amortization
	periods			Accumulated			Net
	(in years)	Cost		amortization			Carrying value
Customer relationships	10-15 years	$	596	$	(37	)	$	559
Trade name	5 years		5		(1	)		4
Non-competition clause	4 years		50		(9	)		41
State pharmacy licenses	25 years		8		(1	)		7
		$	659	$	(48	)	$	611

Schedule of Amortization Expenses for Intangible Assets

Amortization expense for intangible assets for the years ended December 31, 2015 and 2014 was as follows:

	For the		For the
	Year Ended		Year Ended
	December 31, 2015		December 31, 2014
Patents	$	1	$	-
Customer relationships		260		37
Trade name		3		1
Non-competition clause		90		9
State pharmacy licenses		1		1
	$	355	$	48

Schedule of Estimated Future Amortization Expense

Estimated future amortization expense for the Company’s intangible assets at December 31, 2015 is as follows:

Years ending December 31,
2016	$	365
2017		365
2018		219
2019		208
2020		206
Thereafter		1,772
	$	3,135

Schedule of Changes in Carrying Value of Goodwill

The changes in the carrying value of the Company’s goodwill during the years ended December 31, 2015 and 2014 were as follows:

Balance at January 1, 2014	$-
Acquistion of PC (see Note 3)		332
Balance at December 31, 2014		332
Acquisition of Park (see Note 3)		1,895
Acquisition of CAP (see Note 3)		239
Balance at December 31, 2015	$	2,466

Accounts Payable and Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2015

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses at December 31, 2015 and 2014 consisted of the following:

	December 31, 2015			December 31, 2014
Accounts payable	$	3,185		$	699
Deferred rent		63			5
Accrued interest (see Note 10)		90			-
Accrued exit fee for note payable (see Note 10)		500			-
Building lease liability(1)		46			74
Other accrued expenses (2)		23			39
Total accounts payable and accrued expenses		3,907			817
Less: Current portion		(3,407	)		(787	)
Non-current total accrued expenses	$	500		$	30

	(1)	In September 2014, the Company relocated its corporate headquarters to a 7,565 square foot office facility in San Diego, California. In February 2015, the Company entered into an agreement to sublet 3,874 square feet of its previously occupied headquarters office space through the remaining term of the lease for a monthly rent amount of $8. The Company recognized a loss of approximately $117 during the year ended December 31, 2014 related to the estimated remaining lease liability, net of expected sublease income, of the previously occupied office space. The obligations were discounted based on current prevailing market rates.

	(2)	The amount consists of a $23 and $39 stock-based compensation accrual at December 31, 2015 and 2014 respectively, for stock options to be granted for services performed. The stock-based compensation expense related to the accruals was $23 and $39 during the years ended December 31, 2015 and 2014, respectively. The $39 was recorded to additional paid-in-capital upon issuance of the stock options in 2015.

Debt (Tables)

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Summary of Notes Payable

Note payable at December 31, 2015 were as follows:

	December 31, 2015
LSAF 12.5% note payable	$	10,000
Add: Interest paid-in-kind		130
Less: Discount on note for issuance costs
and relative fair value of warrants		(1,794	)
Less: Current portion		-
Long-term portion	$	8,336

Summary of Future Minimum Payments

Future minimum payments under notes payable outstanding at December 31, 2015 are as follows:

Years Ending December 31, 2015	Amount
2016	$	1,076
2017		1,214
2018		2,979
2019		4,183
2020		4,183
Thereafter		1,743
Total minimum payments		15,378
Less: amount representing interest and interest paid-in-kind		5,378
Note payable, gross		10,000
Add: interest paid-in-kind		130
Less: unamortized discount and issuance costs		(1,794	)
Note payable and interest paid-in-kind, net of unamortized debt discount and issuance costs	$	8,336

Stockholders' Equity and Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2015

Equity [Abstract]

Schedule of Stock Option Plan Activity

A summary of the stock option activity under the Plan for the year ended December 31, 2015 is as follows:

	Number of shares			Weighted Avg. Exercise Price		Weighted Avg. Remaining Contractual Life		Aggregate Intrinsic Value
Options outstanding - January 1, 2015		1,029,240		$	5.74
Options granted		825,946		$	7.80
Options exercised		(255,600	)	$	3.86
Options cancelled/forfeit		(55,560	)	$	9.21
Options outstanding - December 31, 2015		1,544,026		$	7.03		5.81	$	1,216
Options exercisable		653,558		$	6.22		5.71	$	1,073
Options vested and expected to vest		1,454,979		$	6.99		5.81	$	1,202

Market-based Vesting Conditions for Stock Option Units Granted

These market-based vesting conditions are as follows:

Tranche	Number of Shares	Target Share Price
Tranche 1	200,000 shares	$9.00 or greater
Tranche 2	100,000 shares	$10.00 or greater
Tranche 3	100,000 shares	$12.00 or greater
Tranche 4	100,000 shares	$14.00 or greater
Tranche 5	100,000 shares	$15.00 or greater

Schedule of Fair Value Assumption

	2015		2014
Weighted-average fair value of options granted	$	6.22	$	5.22
Expected terms (in years)		5.81 - 6.11		5.81 - 6.91
Expected volatility		101 - 121%		96 - 102%
Risk-free interest rate		1.39 - 1.68%		1.37 - 1.65%
Dividend yield		-		-

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

	2015		2014
Weighted-average fair value of options granted	$	6.49	$	6.15
Expected terms (in years)		10		2.5 - 10
Expected volatility		108 - 109%		78 - 97%
Risk-free interest rate		1.06- 1.63%		0.10 - 1.68%
Dividend yield		-		-

Schedule of Shares Outstanding and Exercisable

The following table summarizes information about stock options outstanding and exercisable at December 31, 2015:

	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		125,000		6.07	$	2.40		125,000	$	2.40
$3.68 - $4.50		207,123		4.06	$	4.27		165,252	$	4.31
$5.49 - $7.99		958,316		6.02	$	7.55		159,222	$	6.66
$8.06 - $8.99		248,557		6.32	$	8.90		199,054	$	8.93
$42.80		5,030		4.62	$	42.80		5,030	$	42.80
		1,544,026		5.81	$	7.03		653,558	$	6.22

Market-based Vesting Conditions for Restricted Stock Units Granted

The market-based vesting conditions applicable to the Boll Performance Equity Award are as follows:

Tranche	Number of Shares	Target Share Price
Tranche 1	30,000 shares	$10.00 or greater
Tranche 2	30,000 shares	$15.00 or greater
Tranche 3	30,000 shares	$20.00 or greater
Tranche 4	30,000 shares	$25.00 or greater
Tranche 5	37,500 shares	$30.00 or greater

Schedule of Restricted Stock Units Activity

A summary of the Company’s RSU activity and related information for the year ended December 31, 2015 is as follows:

	Number of RSUs			Weighted Average Grant Date Fair Value
RSUs unvested - January 1, 2015		1,276,815		$	3.20
RSUs granted		251,666		$	3.74
RSUs vested		(31,458	)	$	7.40
RSUs cancelled/forfeit		(9,062	)	$	5.98
RSUs unvested at December 31, 2015		1,487,961		$	3.18

Schedule of Warrants Activity

A summary of warrant activity during the year ended December 31, 2015 is as follows:

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

Warrants outstanding - January 1, 2015		690,944		$	6.05
Granted		125,000		$	7.85
Exercised		(240,437	)	$	5.45
Expired		(334,819	)	$	5.93
Warrants outstanding and exercisable - December 31, 2015		240,688		$	7.41
Weighted average remaining contractual life of the outstanding warrants in years - December 31, 2015		5.99

Schedule of Warrants Outstanding and Warrants Exercisable

All warrants outstanding as of December 31, 2015 are included in the following table:

	Warrants Outstanding					Warrants Exercisable
		Warrants		Exercise		Warrants		Expiration
Warrant Series	Issue Date	Outstanding		Price		Exercisable		Date
Lender warrants (see Notes 10 and 16)	5/11/2015		125,000	$	7.85		125,000		5/11/2025
Underwriter warrants	2/7/2013		55,688	$	5.25		55,688		2/7/2018
Warrants issued to investor relations consultant	7/19/2013		60,000	$	8.50		60,000		7/19/2018
			240,688	$	7.41		240,688

Schedule of Stock Based Compensation Granted to Employees Directors Consultants

	For the		For the
	Year Ended		Year Ended
	December 31, 2015		December 31, 2014
Employees - selling and marketing	$	370	$	79
Employees - general and administrative		2,720		2,095
Directors - general and administrative		268		146
Consultants - selling and marketing		83		89
Consultants - general and administrative		-		147
Consultants - research and development		-		9
Total	$	3,441	$	2,565

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

	December 31, 2015			December 31, 2014
Current:
Federal	$	-		$	-
State		5			3
Total current	$	5		$	3

Deferred:
Federal	$	3,141		$	3,023
State		988			871
Change in valuation allowance		(4,129	)		(3,894	)
Total deferred		-			-
Income tax provision	$	5		$	3

Schedule of Income Tax Reconciliation

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

	December 31, 2015			December 31, 2014
U.S. federal statutory tax rate		35.00	%		35.00	%
Benefit of lower tax brackets		(1.00	)%		(1.00	)%
State tax benefit, net		(0.03	)%		(0.03	)%
Research and development credits		0.00	%		0.00	%
Employee stock based compensation		(0.67	)%		(1.03	)%
Loss on debt conversion		0.00	%		0.00	%
Other		(0.71	)%		(0.21	)%
Valuation allowance		(32.62	)%		(32.76	)%
Effective income tax rate		(0.03	)%		(0.03	)%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets are as follows:

	December 31, 2015			December 31, 2014
Deferred tax assets (liabilities):
NOL’s	$	15,099		$	10,923
Depreciation and amortization		121			(7	)
Other		346			65
Research & development credits		556			556
Deferred stock compensation		3,237			2,646
Park stock purchase identifiable intangibles		(1,047	)		-
Unrealized gain or loss on investments		-			-
Total net deferred tax assets		18,312			14,183
Valuation allowance		(19,359	)		(14,183	)
Net deferred tax liabilities	$	(1,047	)	$	-

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Schedule of Lease Equipment Under Capital Lease

The Company leases equipment under capital leases with an interest rate of 4.25% per annum. At December 31, 2015, future payments under the Company’s capital leases were as follows:

Year ending December 31, 2015
2016		22
2017		1
Total minimum lease payments		23
Less amount representing interest		(1	)
Present value of future minimum lease payments		22
Less current portion		(21	)
Capital lease obligation, net of current portion	$	1

Schedule of Future Payments Under Leases

The following represents future annual minimum lease payments, net of expected sublease income, as of December 31, 2015:

2016	$	570
2017		495
2018		496
2019		257
2020		266
Thereafter		213
Total	$	2,297

Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Net loss	$ (15,899)	$ (10,118)
Accumulated deficit	(57,764)	(41,865)
Net cash used in operating activity	(11,143)	(7,057)
Cash resources and restricted investments	2,835
Proceeds from sale of common stock	404
Deposit coverage limits by FDIC, per owner	250,000
Cash deposits in excess of FDIC limits	2,100,000
Accounts receivable, net of allowance for doubtful accounts	180	4
Impairment of long-lived assets	$ 0	$ 0
Common stock equivalents, dilutive instruments	3,313,169	3,024,217
Number of restricted stock included in common stock equivalents	55,824	27,218
Billing And Collection Agreement [Member] \| Third Party [Member]
Percentage of billing and collection amount	55.00%
Billing and collection management expense	$ 142
Due to related party	$ 81
Patents [Member]
Patent estimated useful life	20 years
Subsequent to December 2015 [Member]
Proceeds from sale of common stock	$ 11,100
Proceeds from sale of convertible note	$ 3,000

Summary of Significant Accounting Policies - Schedule of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Accounting Policies [Abstract]
Numerator - net loss	$ (15,899)	$ (10,118)
Denominator - weighted average number of shares outstanding, basic and diluted	9,576,142	9,132,989
Net loss per share, basic and diluted	$ (1.66)	$ (1.11)

- Definition

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

+ References + Details

Acquisitions (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
Acquisitions (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash payment	$ 421
Contingent consideration		483
Goodwill	2,466	332
Pharmacy Creations, LLC [Member]
Cash payment	600
Contingent consideration	50
Revenues	$ 3,500
Maximum contingent stock payment, shares	215,190
Cash payment and recognized a gain in other income	$ 31
Contingent acquisition obligations	483	$ 514
Deferred tax liability	514
Total acquisition date fair value	1,114
Goodwill	331
Business acquisition puchase price	331
Net tangible assets	45
Identifiable intangible assets	659
Pharmacy Creations, LLC [Member] \| March 31, 2016 [Member]
Revenues	$ 7,500
Maximum contingent stock payment, shares	18.5882
Pharmacy Creations, LLC [Member] \| March 31, 2016 [Member] \| Minimum [Member]
Revenues	$ 3,500
Pharmacy Creations, LLC [Member] \| March 31, 2016 [Member] \| Maximum [Member]
Revenues	7,500
Park [Member]
Cash paid for business acquisition, net of fees	3,000
Payment of cash remaining in bank account	100
Total acquisition date fair value	$ 5,163
Acquisition adjusted description	Acquisition was adjusted from 25% to 15%
Increase of goodwill	$ 46
Increase of intangible assets	4
Goodwill	1,895
Net tangible assets	252
Identifiable intangible assets	2,629
Acquisition expenses	201
Park [Member] \| Sellers [Member]
Cash payment	53
Cash paid for business acquisition, net of fees	638
Issuance of common stock for payment	$ 319
Issuance of common stock shares for payment	6,749
Deferred tax liability	$ 1,047
Deferred acquisition obligations	$ 591
Park [Member] \| Restricted Stock [Member]
Number of common stock shares sold	63,525
Number of common stock sold	$ 500
Percentage of discount rate	15.00%
Other 2015 Acquisitions [Member]
Cash payment	$ 945
Goodwill	239
Net tangible assets	641
Identifiable intangible assets	65
Acquisition expenses	$ 135

Acquisitions - Schedule of Acquisition Date Fair Value of Consideration (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash payment to Sellers at closing	$ 3,005
Pharmacy Creations, LLC [Member]
Cash payment to Sellers at closing	600
Restricted common stock issuance to Sellers at closing	483
Deferred tax liability
Deferred consideration to Sellers	31
Total acquisition date fair value	1,114
Park [Member]
Cash payment to Sellers at closing	3,100
Restricted common stock issuance to Sellers at closing	425
Deferred tax liability	1,047
Deferred consideration to Sellers	591
Total acquisition date fair value	$ 5,163

Acquisitions - Schedule of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Goodwill	$ 2,466	$ 332
Pharmacy Creations, LLC [Member]
Cash and cash equivalents	5
Accounts receivable	58
Prepaid expenses and other assets	30
Inventories	213
Property / Furniture and equipment	45
Intangible assets	659
Total identifiable assets acquired	1,010
Accounts payable and accrued expenses	120
Other liabilities	107
Total liabilities assumed	227
Total identifiable assets less liabilities assumed	783
Goodwill	331
Net assets acquired	1,114
Park [Member]
Cash and cash equivalents	95
Accounts receivable	399
Prepaid expenses and other assets
Inventories	232
Property / Furniture and equipment	252
Intangible assets	2,629
Total identifiable assets acquired	3,607
Accounts payable and accrued expenses	304
Other liabilities	35
Total liabilities assumed	339
Total identifiable assets less liabilities assumed	3,268
Goodwill	1,895
Net assets acquired	$ 5,163

Acquisitions - Schedule of Result of Operation from Acquisition (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015 USD ($)
Pharmacy Creations, LLC [Member]
Total revenues	$ 1,652
Operating loss	(663)
Park [Member]
Total revenues	6,134
Operating loss	$ 1,088

Acquisitions - Schedule of Intangible Assets Acquisition (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015 USD ($)
Pharmacy Creations, LLC [Member]
Intangible Assets Fair Value	$ 659
Pharmacy Creations, LLC [Member] \| Customer Relationships [Member]
Intangible Assets Fair Value	$ 596
Pharmacy Creations, LLC [Member] \| Customer Relationships [Member] \| Minimum [Member]
Useful Life	10 years
Pharmacy Creations, LLC [Member] \| Customer Relationships [Member] \| Maximum [Member]
Useful Life	15 years
Pharmacy Creations, LLC [Member] \| Trade Name [Member]
Intangible Assets Fair Value	$ 5
Useful Life	5 years
Pharmacy Creations, LLC [Member] \| Non-Competition Clause [Member]
Intangible Assets Fair Value	$ 50
Useful Life	4 years
Pharmacy Creations, LLC [Member] \| State Pharmacy Licenses [Member]
Intangible Assets Fair Value	$ 8
Useful Life	25 years
Park [Member]
Intangible Assets Fair Value	$ 2,629
Park [Member] \| Customer Relationships [Member]
Intangible Assets Fair Value	$ 2,387
Park [Member] \| Customer Relationships [Member] \| Minimum [Member]
Useful Life	3 years
Park [Member] \| Customer Relationships [Member] \| Maximum [Member]
Useful Life	15 years
Park [Member] \| Trade Name [Member]
Intangible Assets Fair Value	$ 10
Useful Life	5 years
Park [Member] \| Non-Competition Clause [Member]
Intangible Assets Fair Value	$ 224
Useful Life	3 years
Park [Member] \| State Pharmacy Licenses [Member]
Intangible Assets Fair Value	$ 8
Useful Life	25 years

Acquisitions - Schedule of Pro Forma Financial Information (Details) - Park [Member] $ in Thousands	12 Months Ended
	Dec. 31, 2015 USD ($)
Total revenues	$ 7,847
Net loss	$ (9,850)

Restricted Short-Term Investments (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Restricted Short-term Investments
Certificate of deposit	$ 150	$ 150

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 775	$ 146
Work in progress		98
Finished goods	637	129
Total inventories	$ 1,412	$ 373

Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid insurance	$ 297	$ 124
Other prepaid expenses	370	82
Deposits and other current assets	119	35
Total prepaid expenses and other current assets	$ 786	$ 241

Furniture and Equipment (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Depreciation and amortization of furniture and equipment	$ 255	$ 37

Furniture and Equipment - Schedule of Furniture and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Computer software and hardware	$ 323	$ 53
Furniture and equipment	350	153
Lab and pharmacy equipment	538	62
Leasehold improvements	1,746	20
Furniture and equipment, gross	2,957	288
Accumulated depreciation and amortization	(300)	(45)
Furniture and equipment, Net	$ 2,657	$ 243

Intangible Assets and Goodwill - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cost	$ 3,538	$ 659
Accumulated amortization	(403)	(48)
Net Carrying value	$ 3,135	611
Patents [Member]
Amortization periods (in years)	20 years
Cost	$ 64
Accumulated amortization	(1)
Net Carrying value	$ 63
Patents [Member] \| Minimum [Member]
Amortization periods (in years)	17 years
Patents [Member] \| Maximum [Member]
Amortization periods (in years)	19 years
Trademarks [Member]
Amortization periods description	Indefinite
Cost	$ 121
Accumulated amortization
Net Carrying value	121
Customer Relationships [Member]
Cost	2,998	596
Accumulated amortization	(297)	(37)
Net Carrying value	$ 2,701	$ 559
Customer Relationships [Member] \| Minimum [Member]
Amortization periods (in years)	3 years	10 years
Customer Relationships [Member] \| Maximum [Member]
Amortization periods (in years)	15 years	15 years
Trade Name [Member]
Amortization periods (in years)	5 years	5 years
Cost	$ 16	$ 5
Accumulated amortization	(4)	(1)
Net Carrying value	12	$ 4
Non-Competition Clause [Member]
Amortization periods (in years)		4 years
Cost	294	$ 50
Accumulated amortization	(99)	(9)
Net Carrying value	$ 195	$ 41
Non-Competition Clause [Member] \| Minimum [Member]
Amortization periods (in years)	3 years
Non-Competition Clause [Member] \| Maximum [Member]
Amortization periods (in years)	4 years
State Pharmacy Licenses [Member]
Amortization periods (in years)	25 years	25 years
Cost	$ 45	$ 8
Accumulated amortization	(2)	(1)
Net Carrying value	$ 43	$ 7

Intangible Assets and Goodwill - Schedule of Amortization Expenses for Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Amortization of intangible assets	$ 355	$ 48
Patents [Member]
Amortization of intangible assets	1
Customer Relationships [Member]
Amortization of intangible assets	260	37
Trade Name [Member]
Amortization of intangible assets	3	1
Non-Competition Clause [Member]
Amortization of intangible assets	90	9
State Pharmacy Licenses [Member]
Amortization of intangible assets	$ 1	$ 1

Intangible Assets and Goodwill - Schedule of Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
2016	$ 365
2017	365
2018	219
2019	208
2020	206
Thereafter	1,772
Intangible assets	$ 3,135	$ 611

Intangible Assets and Goodwill - Schedule of Changes in Carrying Value of Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill, Beginning	$ 332
Acquistion of PC (see Note 3)		332
Acquisition of Park (see Note 3)	1,895
Acquisition of CAP (see Note 3)	239
Goodwill, Ending	$ 2,466	$ 332

Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($)
$ in Thousands

Dec. 31, 2015

Dec. 31, 2014

Payables and Accruals [Abstract]

Accounts payable

$ 3,185

$ 699

Deferred rent

Accrued interest (see Note 10)

Accrued exit fee for note payable (see Note 10)

500

Building lease liability (1)

^[1]

Other accrued expenses (2)

^[2]

Total accounts payable and accrued expenses

3,907

817

Less: Current portion

(3,407)

(787)

Non-current total accrued expenses

$ 500

$ 30

[1]

In September 2014, the Company relocated its primary operations to a 7,565 square foot office facility in San Diego, California. In February 2015, the Company entered into a sublease agreement to sublet 3,874 square feet of its previously occupied offices through the remaining term of the lease at a monthly rent amount of $8. The Company recognized a loss of approximately $117 during the year ended December 31, 2014 related to the estimated remaining lease liability, net of expected sublease income, of the previously occupied offices. The obligations were discounted based on current prevailing market rates.

[2]

The amount consists of a $23 and $39 stock-based compensation accrual at December 31, 2015 and 2014 respectively, for stock options to be granted for services performed. The stock-based compensation expense related to the accruals was $23 and $39 during the years ended December 31, 2015 and 2014, respectively. The $39 was recorded to additional paid-in-capital upon issuance of the stock options in 2015.

Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Expenses (Details) (Parenthetical) $ in Thousands	1 Months Ended	12 Months Ended
	Feb. 28, 2015 USD ($) ft²	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Sep. 30, 2014 ft²
Payables and Accruals [Abstract]
Area of office space \| ft²				7,565
Area of previous office space \| ft²	3,874
Monthly rent amount	$ 8
Recognized lease losses related to estimated remaining lease liability			$ 117
Stock based compensation accrual		$ 23	$ 39
Additional paid-in-capital		$ 39

Debt (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	May 11, 2015	Dec. 31, 2015	Dec. 31, 2014
Liability of final fee included in accrued expenses		$ 500
Debt discount		$ 281
Loan Agreement [Member] \| Life Sciences Alternative Funding LLC [Member]
Principal amount of loan	$ 10,000
Loans bear interest	12.50%
loans bear interest rate description	The term loans bear interest at a fixed per-annum rate of 12.5% and allows for 2% of the interest to be paid-in-kind until either February 2017 or May 2017.
Loan installments	36 months
Percentage of loan agreement final fee	5.00%
Loan due date	May 11, 2021
Incurred expenses loan	$ 735
Liability of final fee included in accrued expenses	$ 500
Issuance of warrants to purchase maximum number of shares	125,000
Common stock exercise price per share	$ 7.85
Issuance of warrants to purchase of common stock expiration year	10 years
Fair value of warrants	$ 840
Fair value of common stock	$ 7.97
Fair value of contractual term	10 years
Common stock volatility rate	109.00%
Fair value of dividend rate	0.00%
Fair value of risk-free interest rate	1.25%
Loan Agreement [Member] \| Life Sciences Alternative Funding LLC [Member] \| Minimum Revenue or Cash Balance [Member]
Loan installments	24 months

Debt - Summary of Notes Payable (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
LSAF 12.5% note payable	$ 8,336
12.5 Note Payable [Member]
LSAF 12.5% note payable	10,000
Add: Interest paid-in-kind	130
Less: Discount on note for issuance costs and relative fair value of warrants	(1,794)
Less: Current portion
Long-term portion	$ 8,336

Debt - Summary of Future Minimum Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Note payable, gross	$ 8,336
12.5 Note Payable [Member]
2016	1,076
2017	1,214
2018	2,979
2019	4,183
2020	4,183
Thereafter	1,743
Total minimum payments	15,378
Less: amount representing interest and interest paid-in-kind	5,378
Note payable, gross	10,000
Add: interest paid-in-kind	130
Less: unamortized discount and issuance costs	(1,794)
Note payable and interest paid-in-kind, net of unamortized debt discount and issuance costs	$ 8,336

Stockholders' Equity and Stock-Based Compensation (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended						3 Months Ended	12 Months Ended
	Jul. 31, 2015	Nov. 30, 2015	Apr. 30, 2015	Feb. 28, 2015	Jan. 31, 2015	Oct. 31, 2014	Apr. 30, 2014	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Sep. 10, 2014
Capital stock, shares authorized											95,000,000
Common stock, shares authorized								90,000,000	90,000,000	90,000,000
Common stock, par value								$ 0.001	$ 0.001	$ 0.001
Issuance of restricted common stock, shares							6,868
Issuance of restricted common stock							$ 50
Shares issued upon exercise of stock options										$ 584
Additional shares issued upon exercise of stock options, shares										160,777
Common stock issued shares										66,439
Exercise of common stock option to purchase of common stock									255,600	146,652
Common stock exercise price per share									$ 5.25
Issuance of common stock upon vesting of RSUs net of tax withholding , shares									1,611
Number of common stock held for payroll tax									1,241	1,518
Issuance of common stock upon vesting of RSUs net of tax withholding									$ (10)	$ (13)
Shares issued upon warrants exercise										47,829
Shares issued upon exercise of warrant										$ 38
Warrants and shares issued upon excise of common stock									5.925	6,391
Warrants to purchase common stock exercise price per share										$ 5.925
Number of warrants shares issued									10,932	41,438
Exercise of warrant to purchase of common stock										123,715
Warrants shares exercise price per share										$ 5.25
Issuance of common stock shares for vested awards									130,457
Issuance of common stock shares of warrant exercise									220,912
Proceeds from issuance of stock option exercise									$ 1,248
Issuance of common stock exercise on cash basis of warrant to purchase shares									209,980
Issuance of warrant purchase of common stock exercise, shares			334,819						30,457
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
Common stock market price per share								$ 6.93	$ 6.93
Intrinsic value of stock option exercised									$ 1,023
Stock options granted with exercise price contractual terms									10 years
Stock options granted vesting terms									Vesting terms for options granted in 2015 and 2014 to employees, directors and consultants typically included one of the following vesting schedules: 25% of the shares subject to the option vest and become exercisable on the first anniversary of the grant date and the remaining 75% of the shares subject to the option vest and become exercisable quarterly in equal installments thereafter over three years; quarterly vesting over three years; 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.
Stock-based compensation									$ 3,441	$ 2,615
Common Stock [Member]
Shares issued upon exercise of stock options, shares									227,216	227,216
Shares issued upon exercise of stock options
Issuance of common stock upon vesting of RSUs net of tax withholding
Warrant [Member]
Stock-based compensation									0	27
Intrinsic value of warrants exercised								$ 528	528
Stock Options [Member]
Unrecognized compensation expense related to unvested stock options granted under the Plan								$ 3,649	$ 3,649
Expense expected to recognize over the weighted-average remaining vesting period									3 years 9 months 18 days
Stock-based compensation									$ 1,747	$ 1,138
Mr. Mark Baum [Member]
Weighted Avg. Exercise Price, Options exercised	$ 7.87
Number of stock option granted, shares	600,000
Initial fair value of stock option	$ 2,784
Fair value assumptions, life term	5 years
Fair value assumptions, volatility	80.00%
Fair value assumptions, risk free interest rate	1.54%
2007 Incentive Stock and Awards Plan [Member]
Maximum number of common stock issuance under the plan								5,000,000	5,000,000
Available for future issuances under the Plan								1,353,379	1,353,379
Park Compounding [Member]
Issuance of restricted common stock, shares					63,525
Issuance of restricted common stock					$ 425
Sales Agreement [Member]
Percentage of cash commission		3.00%
Certain fess and expenses		$ 50
Number of shares sold under the agreement								72,421
Gross proceeds of approximately								$ 529
Deducting amount								16
Commission fees								109
Offering expenses payable								404	$ 404
Remined available for sale pursuant								9,470	$ 9,470
Restricted Stock Units One [Member]
Issuance of restricted common stock, shares									28,606
Issuance of common stock upon vesting of RSUs net of tax withholding , shares										1,954
Common stock shares issued for services										27,218
Restricted Stock Units (RSUs) [Member]
Unrecognized compensation expense related to unvested stock options granted under the Plan								$ 1,153	$ 1,153
Expense expected to recognize over the weighted-average remaining vesting period									7 months 6 days
Stock-based compensation									$ 1,671	$ 1,332
Restricted Stock Units (RSUs) [Member] \| Andrew R. Boll [Member]
Number of stock option granted, shares				30,000
Restricted Stock Units (RSUs) [Member] \| Andrew R. Boll [Member] \| Boll Performance Equity Award [Member]
Number of stock option granted, shares				157,500
Stock option targeted price range lower limit				$ 10
Stock option targeted price range upper limit				$ 30
Restricted Stock Units (RSUs) [Member] \| John P. Saharek [Member]
Number of stock option granted, shares				30,000
Number of stock option granted				$ 442
Baum Performance Equity Award [Member] \| Monte Carlo Simulation [Member]
Initial fair value of stock option									$ 228
Fair value assumptions, life term									3 years
Fair value assumptions, volatility									60.00%
Fair value assumptions, risk free interest rate									0.77%
Minimum [Member]
Stock option purchase of exercise price										$ 3.68
Common stock exercise price per share									$ 3.20	3.60
Minimum [Member] \| Mr. Mark Baum [Member]
Stock price	$ 9.00
Maximum [Member]
Stock option purchase of exercise price										4.00
Common stock exercise price per share									$ 4.51	$ 6.00
Maximum [Member] \| Mr. Mark Baum [Member]
Stock price	$ 15.00
Consultant [Member]
Issuance of restricted common stock, shares						4,000
Issuance of restricted common stock						$ 29
Non-Employee Director [Member] \| Restricted Stock Units (RSUs) [Member]
Issuance of restricted common stock, shares									34,166	26,492
Issuance of restricted common stock									$ 270	$ 200
Issuance of common stock shares for vested awards					8,521
Employees And Directors [Member]
Percentage of forfeiture factor									10.00%

Stockholders' Equity and Stock-Based Compensation - Schedule of Stock Option Plan Activity (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015 USD ($) $ / shares shares
Weighted Avg. Exercise Price, Exercisable Ending Balance	$ 7.03
Weighted Avg. Remaining Contractual Life, Options exercisable	10 years
Stock Option Plan [Member]
Number of shares, Outstanding, Beginning balance \| shares	1,029,240
Number of shares, Options granted \| shares	825,946
Number of shares, Options exercised \| shares	(255,600)
Number of shares, Options cancelled/forfeit \| shares	(55,560)
Number of shares, Outstanding, Ending balance \| shares	1,544,026
Number of shares, Options exercisable \| shares	653,558
Number of shares, Options vested and expected to vest \| shares	1,454,979
Weighted Avg. Exercise Price, Outstanding, Beginning balance	$ 5.74
Weighted Avg. Exercise Price, Options granted	7.80
Weighted Avg. Exercise Price, Options exercised	3.86
Weighted Avg. Exercise Price, Options cancelled/forfeit	9.21
Weighted Avg. Exercise Price, Outstanding, Ending balance	7.03
Weighted Avg. Exercise Price, Exercisable Ending Balance	6.22
Weighted Avg. Exercise Price, Vested and expected to vest - end of period	$ 6.99
Weighted Avg. Remaining Contractual Life, Options outstanding	5 years 9 months 22 days
Weighted Avg. Remaining Contractual Life, Options exercisable	5 years 8 months 16 days
Weighted Avg. Remaining Contractual Life, Options vested and expected to vest	5 years 9 months 22 days
Aggregate Intrinsic Value, Options outstanding \| $	$ 1,216
Aggregate Intrinsic Value, Options exercisable \| $	1,073
Aggregate Intrinsic Value, Options vested and expected to vest \| $	$ 1,202

Stockholders' Equity and Stock-Based Compensation - Market-based Vesting Conditions for Restricted Stock Units Granted (Details)	12 Months Ended
	Dec. 31, 2015 shares
Tranche One [Member] \| Mr. Mark Baum [Member]
Number of Shares	200,000
Target Share Price	$9.00 or greater
Tranche One [Member] \| Mr. Boll [Member]
Number of Shares	30,000
Target Share Price	$10.00 or greater
Tranche Two [Member] \| Mr. Mark Baum [Member]
Number of Shares	100,000
Target Share Price	$10.00 or greater
Tranche Two [Member] \| Mr. Boll [Member]
Number of Shares	30,000
Target Share Price	$15.00 or greater
Tranche Three [Member] \| Mr. Mark Baum [Member]
Number of Shares	100,000
Target Share Price	$12.00 or greater
Tranche Three [Member] \| Mr. Boll [Member]
Number of Shares	30,000
Target Share Price	$20.00 or greater
Tranche Four [Member] \| Mr. Mark Baum [Member]
Number of Shares	100,000
Target Share Price	$14.00 or greater
Tranche Four [Member] \| Mr. Boll [Member]
Number of Shares	30,000
Target Share Price	$25.00 or greater
Tranche Five [Member] \| Mr. Mark Baum [Member]
Number of Shares	100,000
Target Share Price	$15.00 or greater
Tranche Five [Member] \| Mr. Boll [Member]
Number of Shares	37,500
Target Share Price	$30.00 or greater

Stockholders' Equity and Stock-Based Compensation - Schedule of Fair Value Assumption (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Options Granted To Employees And Directors [Member]
Weighted-average fair value of options granted	$ 6.22	$ 5.22
Expected volatility, minimum	101.00%
Expected volatility, maximum	121.00%
Risk-free interest rate, minimum	1.39%
Risk-free interest rate, maximum	1.68%
Dividend yield
Options Granted To Employees And Directors [Member] \| Minimum [Member]
Expected terms (in years)	5 years 9 months 22 days	5 years 9 months 22 days
Expected volatility, minimum		96.00%
Expected volatility, maximum		102.00%
Risk-free interest rate, minimum		1.37%
Risk-free interest rate, maximum		1.65%
Options Granted To Employees And Directors [Member] \| Maximum [Member]
Expected terms (in years)	6 years 1 month 10 days	6 years 10 months 28 days
Options Granted To Consultants [Member]
Weighted-average fair value of options granted	$ 6.49	$ 6.15
Expected terms (in years)	10 years
Expected volatility, minimum	108.00%	78.00%
Expected volatility, maximum	109.00%	97.00%
Risk-free interest rate, minimum	1.06%	0.10%
Risk-free interest rate, maximum	1.63%	1.68%
Dividend yield
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)	12 Months Ended	24 Months Ended
	Dec. 31, 2015 $ / shares shares	Dec. 31, 2015 $ / shares shares
Number of Options Outstanding \| shares	1,544,026	1,544,026
Weighted Average Remaining Contractual Life in Years	5 years 9 months 22 days
Weighted Average Exercise Price	$ 7.03	$ 7.03
Number Exercisable \| shares	653,558	653,558
Weighted Average Exercisable Exercise Price	$ 6.22	$ 6.22
Range One [Member]
Range of Exercise Prices, minimum	$ 2.40
Number of Options Outstanding \| shares	125,000	125,000
Weighted Average Remaining Contractual Life in Years	6 years 26 days
Weighted Average Exercise Price	$ 2.40	$ 2.40
Number Exercisable \| shares	125,000	125,000
Weighted Average Exercisable Exercise Price	$ 2.40	$ 2.40
Range Two [Member]
Range of Exercise Prices, minimum		3.68
Range of Exercise Prices, maximum		$ 4.50
Number of Options Outstanding \| shares	207,123	207,123
Weighted Average Remaining Contractual Life in Years		4 years 22 days
Weighted Average Exercise Price	$ 4.27	$ 4.27
Number Exercisable \| shares	165,252	165,252
Weighted Average Exercisable Exercise Price	$ 4.31	$ 4.31
Range Three [Member]
Range of Exercise Prices, minimum	5.49
Range of Exercise Prices, maximum	$ 7.99
Number of Options Outstanding \| shares	958,316	958,316
Weighted Average Remaining Contractual Life in Years	6 years 7 days
Weighted Average Exercise Price	$ 7.55	$ 7.55
Number Exercisable \| shares	159,222	159,222
Weighted Average Exercisable Exercise Price	$ 6.66	$ 6.66
Range Four [Member]
Range of Exercise Prices, minimum	8.06
Range of Exercise Prices, maximum	$ 8.99
Number of Options Outstanding \| shares	248,557	248,557
Weighted Average Remaining Contractual Life in Years	6 years 3 months 26 days
Weighted Average Exercise Price	$ 8.90	$ 8.90
Number Exercisable \| shares	199,054	199,054
Weighted Average Exercisable Exercise Price	$ 8.93	$ 8.93
Range Five [Member]
Range of Exercise Prices, minimum	$ 42.80
Number of Options Outstanding \| shares	5,030	5,030
Weighted Average Remaining Contractual Life in Years	4 years 7 months 13 days
Weighted Average Exercise Price	$ 42.80	$ 42.80
Number Exercisable \| shares	5,030	5,030
Weighted Average Exercisable Exercise Price	$ 42.80	$ 42.80

Stockholders' Equity and Stock-Based Compensation - Schedule of Restricted Stock Units Activity (Details) - Restricted Stock Units (RSUs) [Member]	12 Months Ended
	Dec. 31, 2015 $ / shares shares
Number of RSUs, Outstanding, Beginning balance \| shares	1,276,815
Number of RSUs granted \| shares	251,666
Number of RSUs vested \| shares	(31,458)
Number of RSUs cancelled/forfeited \| shares	(9,062)
Number of RSUs, Outstanding, Ending balance \| shares	1,487,961
Weighted Average Grant Date Fair Value, Beginning balance \| $ / shares	$ 3.20
Weighted Average Grant Date Fair Value, RSUs granted \| $ / shares	3.74
Weighted Average Grant Date Fair Value, RSUs vested \| $ / shares	7.40
Weighted Average Grant Date Fair Value, RSUs cancelled/forfeited \| $ / shares	5.98
Weighted Average Grant Date Fair Value, Ending balance \| $ / shares	$ 3.18

Stockholders' Equity and Stock-Based Compensation - Schedule of Warrants Activity (Details) - Warrant [Member]	12 Months Ended
	Dec. 31, 2015 $ / shares shares
Number of shares, Outstanding, Beginning balance \| shares	690,944
Number of Shares Subject to Warrants Outstanding, Granted \| shares	125,000
Number of Shares Subject to Warrants Outstanding, Exercised \| shares	(240,437)
Number of Shares Subject to Warrants Outstanding, Expired \| shares	(334,819)
Number of shares, Outstanding, Ending balance \| shares	240,688
Weighted average remaining contractual life of the outstanding warrants in years	5 years 11 months 27 days
Weighted Avg. Exercise Price, Outstanding, Beginning balance \| $ / shares	$ 6.05
Weighted Avg. Exercise Price, Granted \| $ / shares	7.85
Weighted Avg. Exercise Price, Exercised \| $ / shares	5.45
Weighted Avg. Exercise Price, Expired \| $ / shares	5.93
Weighted Avg. Exercise Price, Outstanding, Ending balance \| $ / shares	$ 7.41

Stockholders' Equity and Stock-Based Compensation - Schedule of Warrants Outstanding and Warrants Exercisable (Details)	12 Months Ended
	Dec. 31, 2015 $ / shares shares
Warrant [Member]
Warrants Outstanding	240,688
Exercise Price \| $ / shares	$ 7.41
Warrants Exercisable	240,688
Lender Warrants [Member]
Issue Date	May 11, 2015
Warrants Outstanding	125,000
Exercise Price \| $ / shares	$ 7.85
Warrants Exercisable	125,000
Expiration Date	May 11, 2025
Underwriter Warrants [Member]
Issue Date	Feb. 07, 2013
Warrants Outstanding	55,688
Exercise Price \| $ / shares	$ 5.25
Warrants Exercisable	55,688
Expiration Date	Feb. 07, 2018
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 ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Stock based compensation related to equity instruments granted to related parties	$ 3,441	$ 2,565
Employees [Member] \| Selling And Marketing [Member]
Stock based compensation related to equity instruments granted to related parties	370	79
Employees [Member] \| General And Administrative [Member]
Stock based compensation related to equity instruments granted to related parties	2,720	2,095
Directors [Member] \| General And Administrative [Member]
Stock based compensation related to equity instruments granted to related parties	268	146
Consultant [Member] \| Selling And Marketing [Member]
Stock based compensation related to equity instruments granted to related parties	83	89
Consultant [Member] \| General And Administrative [Member]
Stock based compensation related to equity instruments granted to related parties		147
Consultant [Member] \| Research And Development [Member]
Stock based compensation related to equity instruments granted to related parties		$ 9

Income Taxes (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Income Taxes Details Narrative
Deferred tax asset valuation allowance	$ 4,900	$ 3,900
Federal net operating loss carryforwards	$ 38,289
Federal net operating loss expiration date	2027
Federal research and development tax credits		354
Federal research and development tax credits expiration date	2026
State net operating loss carryforwards	$ 35,114
State net operating loss expiration date	2017
State research and development tax credits		305
Deferrerd tax asset excess tax benefits	$ 1,030	1,030
Unrecognized tax benefits

Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Federal
State	5	3
Total current	5	3
Federal	3,141	3,023
State	988	871
Change in valuation allowance	(4,129)	(3,894)
Total deferred
Income tax provision	$ 5	$ 3

Income Taxes - Schedule of Income Tax Reconciliation (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
U.S. federal statutory tax rate	35.00%	35.00%
Benefit of lower tax brackets	(1.00%)	(1.00%)
State tax benefit, net	(0.03%)	(0.03%)
Research and development credits	0.00%	0.00%
Employee stock based compensation	(0.67%)	(1.03%)
Loss on debt conversion	0.00%	0.00%
Other	(0.71%)	(0.21%)
Valuation allowance	(32.62%)	(32.76%)
Effective income tax rate	(0.03%)	(0.03%)

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2013
Income Tax Disclosure [Abstract]
NOL's	$ 15,099	$ 10,923
Depreciation and amortization	121	(7)
Other	346	65
Research & development credits	556	556
Deferred stock compensation	3,237	2,646
Park stock purchase identifiable intangibles	(1,047)
Unrealized gain or loss on investments
Total net deferred tax assets	18,312	14,183
Valuation allowance	(19,359)	(14,183)
Net deferred tax liabilities	$ (1,047)

Employee Savings Plan (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Percentage of salary deposits in tax deferred investment account	100.00%
Percentage of contributions made by the company	4.00%
Contributions by the company	$ 146	$ 56

Commitments and Contingencies (Details Narrative) $ in Thousands		1 Months Ended				12 Months Ended
	Oct. 24, 2014 USD ($)	Aug. 31, 2015 ft²	Feb. 28, 2015 USD ($) ft²	Jan. 31, 2015 USD ($) ft²	Jun. 30, 2014 USD ($) ft²	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Sep. 30, 2014 ft²
Leases equipment under capital lease with interest rate						4.25%
Equipment under capital leases net						$ 60
Related accumulated depreciation						28
Lease agreement for office space (Square feet) \| ft²								7,565
Operating lease, monthly rental						641	$ 306
Royalty amount
Minimum [Member]
Royalties range percentage							15.00%
Maximum [Member]
Royalties range percentage							20.00%
Urigen Pharmaceuticals, Inc [Member]
License agreement commitments description	The annual tiered royalties consist of the greater of (i) $0.50 per dose (dollar amount not presented in thousands), and (ii) 15%-20% of the Company’s net sales of HLA, with the royalty amount within such range depending on the Company’s aggregate sales of HLA during the period to which the royalty payment applies. The minimum annual royalty payment consists of (a) for the 2015 calendar year, 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, less the aggregate royalties paid to Urigen under the Existing Sublicenses during the 2015 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 HLA 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 HLA according to the terms of a diligence plan agreed to by the parties, which efforts will include, without limitation, the Company’s investment of $2,000 in commercialization efforts of HLA, which investment and timeline can be adjusted dependent on market circumstances, and is expected to be incurred over 18-24 months following the Urigen Effective Date. The Company has accrued an amount based on the terms of the agreement related to the minimum annual royalty.
Minimum royalties to be paid each calendar year	$ 800
Value of product development investment	2,000
Royalty revenues	$ 51
Lease Agreement [Member]
Equipment under capital leases net					$ 53
Related accumulated depreciation					$ 9
Lease agreement for office space (Square feet) \| ft²		1,100	8,602		7,565
Operating lease Expiry		Apr. 30, 2016	Jul. 31, 2022		Oct. 31, 2018	Oct. 31, 2019
Operating lease, monthly rental			$ 10		$ 20,426	$ 3
Operating lease, rent increase percentage			3.75%		3.00%	2.00%
Commercial Lease Agreement [Member] \| Park Compounding [Member]
Lease agreement for office space (Square feet) \| ft²				4,500
Operating lease Expiry				Dec. 31, 2020
Operating lease, monthly rental				$ 10
Operating lease, rent increase percentage				3.00%

Commitments and Contingencies - Schedule of Lease Equipment Under Capital Lease (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]
2016	$ 22
2017	1
Total minimum lease payments	23
Less amount representing interest	(1)
Present value of future minimum lease payments	22
Less current portion	(21)	$ (24)
Capital lease obligation, net of current portion	$ 1	$ 19

Commitments and Contingencies - Schedule of Future Payments Under Leases (Details) $ in Thousands	Dec. 31, 2015 USD ($)
Compensation and Retirement Disclosure [Abstract]
2016	$ 570
2017	495
2018	496
2019	257
2020	266
Thereafter	213
Total	$ 2,297

Segment Information and Concentrations (Details Narrative)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 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	43.00%	84.00%

Sebsequent Events (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands				1 Months Ended	12 Months Ended
	Mar. 16, 2016	Mar. 11, 2016	Jan. 22, 2016	Feb. 29, 2016	Dec. 31, 2015	Dec. 31, 2014
Proceeds form issuance of common stock					$ 404
Sold shares of common stock public offering price per share					$ 6.93
Sales Agreement [Member]
Aggregate of available for furture sales					$ 9,470
Subsequent Event [Member]
Shares issued upon exercise of stock options, shares				15,000
Proceeds form issuance of common stock				$ 55
Number of cash basis of stock options to purchase shares of common stock, shares				15,000
Stock option exercise price per share				$ 3.68
Subsequent Event [Member] \| Cantor Fitzgerald [Member] \| Sales Agreement [Member]
Aggregate offering price	$ 2,625
Aggregate of available for furture sales	2,100
Subsequent Event [Member] \| Underwriting Agreement [Member] \| Underwriters [Member]
Number of shars firm-commitment public offering		$ 2,900,000
Additional shares of common stock offering during period		435,000
Common stock price per share		$ 3.348
Sold shares of common stock public offering price per share		$ 3.60
Received net proceeds of approximately	$ 11,100
Subsequent Event [Member] \| LSAF Note [Member]
Percentage of issued convertible senior secured note			8.00%
Convertible Senior Secured Note in the principal amount			$ 3,000
Percentage of note monthly fixed per-annum rate			8.00%
Debt instrument maturity term			any time on or after March 1, 2018
Note convertible by holder, number of shares	277.77		169.4915
Outstanding principal amount per price	$ 1		$ 1
Outstanding receives gross proceeds value			$ 3,000
Maximum percentage of outstanding principal amount			105.00%
Warrant exercise price			$ 5.90
Warrant adjusted pirce per shares	$ 3.60
Subsequent Event [Member] \| LSAF Note [Member] \| Minimum [Member]
Percentage of cash purchase prices equal to outstanding principal amount			109.00%
Subsequent Event [Member] \| LSAF Note [Member] \| Maximum [Member]
Percentage of cash purchase prices equal to outstanding principal amount			105.00%