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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2018	Mar. 11, 2019	Jun. 29, 2018
Document And Entity Information
Entity Registrant Name	HARROW HEALTH, INC.
Entity Central Index Key	0001360214
Document Type	10-K
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Public Float			$ 42,000,000
Entity Common Stock, Shares Outstanding		24,685,594
Trading Symbol	HROW
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2018

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents, including restricted cash of $200	$ 6,838	$ 4,219
Investment in Eton Pharmaceuticals	21,420
Accounts receivable, net	1,914	1,529
Inventories	1,834	2,249
Prepaid expenses and other current assets	837	714
Note receivable, current portion		95
Total current assets	32,843	8,806
Property, plant and equipment, net	6,375	6,215
Intangible assets, net	3,059	2,860
Note receivable, less current portion		302
Goodwill	2,227	2,227
TOTAL ASSETS	49,451	23,917
Current liabilities
Accounts payable and accrued expenses	6,250	3,885
Accrued payroll and related liabilities	2,283	1,209
Deferred revenue and customer deposits	119	29
Current portion of deferred acquisition obligation and accrued interest		53
Current portion of note payable, net of unamortized debt discount	2,529
Current portion of capital lease obligations, net of unamortized discount	720	598
Total current liabilities	11,901	5,774
Capital lease obligations, net of current portion and unamortized discount		720
Accrued expenses, net of current portion	800	800
Note payable, net of current portion and unamortized debt discount	11,999	14,008
TOTAL LIABILITIES	24,700	21,302
STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value, 5,000,000 shares authorized, and no shares issued and outstanding at December 31, 2018 and 2017
Common stock, $0.001 par value, 50,000,000 and 90,000,000 shares authorized, 24,339,610 and 20,623,129 shares issued and outstanding	24	21
Additional paid-in capital	98,938	91,430
Accumulated deficit	(74,211)	(88,836)
TOTAL STOCKHOLDERS' EQUITY	24,751	2,615
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	49,451	23,917
Surface Pharmaceuticals [Member]
Current assets
Investment	4,947
Eton Pharmaceuticals [Member]
Current assets
Investment		$ 3,507

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Restricted cash	$ 200	$ 200
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	90,000,000
Common stock, shares issued	24,339,610	20,623,129
Common stock, shares outstanding	24,339,610	20,623,129

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Revenues:
Total revenues	$ 41,372	$ 26,774
Cost of sales	(16,521)	(13,505)
Gross profit	24,851	13,269
Operating expenses:
Selling, general and administrative	29,243	25,019
Research and development	825	413
Total operating expenses	30,068	25,432
Loss from operations	(5,217)	(12,163)
Other income (expense):
Interest expense, net	(2,728)	(3,026)
Loss on sale of assets	(393)	(354)
Other income (expense), net	103	(884)
Total other income (expense), net	19,842	(757)
Income (loss) before income taxes	14,625	(12,920)
Income tax benefit, net		935
Net income (loss)	$ 14,625	$ (11,985)
Basic net income (loss) per share of common stock	$ 0.67	$ (0.60)
Diluted net income (loss) per share of common stock	$ 0.61	$ (0.60)
Weighted average number of shares of common stock outstanding, basic	21,917,570	20,027,712
Weighted average number of shares of common stock diluted	23,812,045	20,027,712
Surface Pharmaceuticals [Member]
Other income (expense):
Investment gain	$ 4,947
Eton Pharmaceuticals [Member]
Other income (expense):
Investment gain	17,913	3,507
Product Sales, Net [Member]
Revenues:
Total revenues	41,334	26,684
License Revenues [Member]
Revenues:
Total revenues	$ 38	$ 90

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2016	$ 19	$ 83,264	$ (76,851)	$ 6,432
Balance, shares at Dec. 31, 2016	18,627,915
Exercise of warrants		179		179
Exercise of warrants, shares	100,000
Registered direct offering sale of stock, net of offering costs	$ 1	2,939		2,940
Registered direct offering sale of stock, net of offering costs, shares	1,312,500
Sale of stock, net of costs (ATM)	$ 1	1,123		1,124
Sale of stock, net of costs (ATM), shares	557,714
Stock-based payment for services provided		60		60
Stock-based payment for services provided, shares	25,000
Relative fair value of warrants to purchase common stock issued in connection with note payable		982		982
Stock-based compensation expense		2,883		2,883
Net income (loss)			(11,985)	(11,985)
Balance at Dec. 31, 2017	$ 21	91,430	(88,836)	2,615
Balance, shares at Dec. 31, 2017	20,623,129
Exercise of warrants	$ 3	4,230		4,233
Exercise of warrants, shares	3,275,162
Sale of stock, net of costs (ATM)		642		642
Sale of stock, net of costs (ATM), shares	305,619
Stock-based payment for services provided		150		150
Stock-based payment for services provided, shares	75,700
Stock-based compensation expense		2,486		2,486
Vesting of RSUs, net of tax withholding
Vesting of RSUs, net of tax withholding, shares	60,000
Net income (loss)			14,625	14,625
Balance at Dec. 31, 2018	$ 24	$ 98,938	$ (74,211)	$ 24,751
Balance, shares at Dec. 31, 2018	24,339,610

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 14,625	$ (11,985)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization of property, plant and equipment	1,608	1,401
Amortization of intangible assets	235	364
Deferred income taxes		(935)
Amortization of debt issuance costs and discount	613	978
Debt extinguishment		884
Loss on sale and disposal of assets and write down of assets and note receivable	393	354
Stock-based payment for services provided	150
Stock-based compensation	2,486	2,943
Changes in assets and liabilities:
Accounts receivable	(384)	1,392
Inventories	415	(821)
Prepaid expenses and other current assets	(123)	274
Accounts payable and accrued expenses	2,365	346
Accrued payroll and related liabilities	1,074	(429)
Deferred revenue and customer deposits	90	(62)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	687	(8,803)
CASH FLOWS FROM INVESTING ACTIVITIES
Repayment of note receivable	4
Proceeds on sale of assets		113
Investment in patent and trademark assets	(435)	(252)
Purchase of Klarity license		(50)
Purchases of property, plant and equipment	(1,768)	(772)
NET CASH USED IN INVESTING ACTIVITIES	(2,199)	(961)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on capital lease obligations	(691)	(626)
Net proceeds from public equity offering		2,940
Payments on Park deferred acquisition obligation	(53)	(206)
Proceeds from SWK debt, net of costs		15,518
Principal payments on LSAF note payable		(13,999)
Net proceeds from ATM sales of common stock	642	1,124
Net proceeds from exercises of warrants and stock options, net of taxes remitted for RSU's	4,233	179
NET CASH PROVIDED BY FINANCING ACTIVITIES	4,131	4,930
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	2,619	(4,834)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period	4,219	9,053
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period	6,838	4,219
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Cash and cash equivalents	6,638	4,019
Restricted cash	200	200
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD	6,838	4,219
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for income taxes	4	9
Cash paid for interest	2,097	1,543
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Final fee on note payable recorded as debt discount and included in accrued expenses		800
Estimated relative fair value of warrants issued in connection with note payable		982
Note receivable in connection with sale of assets		410
Eton Pharmaceuticals [Member]
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Investment gain	(17,913)	(3,507)
Surface Pharmaceuticals [Member]
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Investment gain	$ (4,947)

Organization

12 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

NOTE 1. ORGANIZATION

Harrow Health, Inc. (together with its subsidiaries, partially owned companies and royalty arrangements unless the context indicates or otherwise requires, the “Company” or “Harrow”) specializes in the development, production and sale of innovative medications that offer unique competitive advantages and serve unmet needs in the marketplace. Prior to 2017, the Company’s business was primarily focused on its ImprimisRx business, the nation’s leading ophthalmology pharmaceutical compounding business, and Park Compounding, Inc. (“Park”), a leading health and wellness compounding business. Since 2017, in addition to wholly-owning ImprimisRx and Park, the Company also has equity positions in Eton Pharmaceuticals, Inc. (“Eton”), Surface Pharmaceuticals, Inc. (“Surface”), and Melt Pharmaceuticals, Inc. (“Melt”). In 2018, the Company also founded its subsidiaries Mayfield Pharmaceuticals, Inc. (“Mayfield”) and Radley Pharmaceuticals, Inc. (“Radley”). The Company owns royalty rights in certain 505(b)(2) drug candidates being developed by Eton, Surface, Melt, Radley and Mayfield.

In December 2018, the Company amended its restated certificate of incorporation to change its corporate name from “Imprimis Pharmaceuticals, Inc.” to “Harrow Health, Inc.”.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Harrow 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 and majority 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 are, among others, allowance for doubtful accounts and contractual adjustments, realizability of inventories, valuation of investments in equity securities, deferred taxes, goodwill and intangible assets, recoverability of long-lived assets and goodwill, valuation of contingent acquisition obligations and deferred acquisition obligations, valuation of notes payable, and valuation of stock-based transactions with employees and non-employees. Actual results could differ from those estimates.

Liquidity

The Company has incurred significant operating losses and negative cash flows from operations since its inception. The Company incurred operating losses of $5,217 and $12,163 for the years ended December 31, 2018 and 2017, respectively, and had an accumulated deficit of $74,211 and $88,836 as of December 31, 2018 and 2017, respectively. In addition, cash provided by (used in) operating activities were $687 and $(8,803) for the years ended December 31, 2018 and 2017, respectively.

While there is no assurance, the Company believes its existing cash resources, restricted cash and marketable securities of approximately $28,258 at December 31, 2018 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 of the following which may include, but are not limited to: the sale of assets and/or businesses, obtaining financing through the issuance of equity, debt, or convertible securities; and working to increase revenue growth through 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 revenue at the time of transfer of promised goods to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. (see Note 3).

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 18), 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.

Debt Issuance Costs and Debt Discount

Debt issuance costs and the debt discount are recorded net of notes payable and capital lease obligations in the consolidated balance sheets. 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 statements of operations.

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 permanent and temporary differences that result from differing treatment of items for tax and accounting purposes. The temporary differences result in deferred tax assets and liabilities, which are included within the consolidated balance sheets. 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 more likely than not, a valuation allowance must be established which reduces the amount of deferred tax assets recorded on the consolidated balance sheets. 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, 2018, and 2017, there were no unrecognized tax benefits included in the consolidated balance sheets that would, if recognized, affect the effective tax rate. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had no accrual for interest or penalties in its consolidated balance sheets at December 31, 2018 and 2017, and has not recognized interest and/or penalties in the consolidated statements of operations for the years ended December 31, 2018 and 2017. The Company is subject to taxation in the United States, California, Florida, Georgia, Illinois, New Jersey, New York, and Wisconsin. The Company’s tax years since 2000 may be 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 per owner. From time to time the Company has cash deposits in excess of FDIC limits.

Investment in Eton Pharmaceuticals, Inc.

In April 2017, the Company formed Eton as a wholly owned subsidiary. In June 2017 the Company lost voting and ownership control of Eton and it ceased consolidating Eton’s financial statements. At the time of deconsolidation, the Company recorded a gain of $5,725 and adjusted the carrying value in Eton to reflect the increased valuation of Eton and the Company’s new ownership percent in accordance with ASC 810-10-40-4(c), Consolidation. At the time of deconsolidation, the Company used the equity method of accounting as management determined that the Company had the ability to exercise significant influence over the operating and financial decisions of Eton. Under this method, the Company recognized earnings and losses of Eton in its consolidated financial statements and adjusted the carrying amount of its investment in Eton accordingly. During the years ended December 31, 2018 and 2017, the Company recorded equity in net loss of Eton of $3,507 and $2,218, respectively.

In November 2018, Eton closed on an initial public offering of 4,140,000 shares of its common stock at $6.00 per share for gross proceeds of approximately $24,800 (the “Eton IPO”). Following the close of the Eton IPO, the Company’s common stock position in Eton equaled 19.98% of the equity and voting interests issued and outstanding of Eton, and it ceased using the equity method of accounting for its investment in Eton. The Company recognizes earnings and losses of Eton in its consolidated financial statements based on the fair market value of the shares owned and adjust the carrying amount of the Company’s investment in Eton accordingly. Eton’s common stock currently trades on the NASDAQ Global Market exchange. At December 31, 2018, the fair market value of Eton’s common stock was $6.12 per share, the closing share price of Eton common stock on that day. In accordance with ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, for the year ended December 31, 2018, the Company recorded a net investment gain from Eton of $17,913, which consisted of a gain of $21,420 related to the change in fair market value of the Company’s investment in Eton less an equity in net loss of Eton of $3,507. As of December 31, 2018, the fair market value of the Company’s investment in Eton was $21,420.

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. Accounts receivable are presented net of allowances for doubtful accounts and contractual adjustments in the amount of $270 and $275 as of December 31, 2018 and 2017, respectively.

Inventories

Inventories are stated at the lower of cost or net realizable value. 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.

Investment in Surface Pharmaceuticals, Inc.

In April 2017, the Company formed Surface as a wholly owned subsidiary. In May and July 2018, Surface entered into and closed on definitive stock purchase agreements with an institutional investor for the purchase of Surface’s Series A Preferred Stock (the “Surface Series A Stock”) that resulted in total proceeds to Surface of approximately $21,000. At the time of the first closing in May 2018, the Company lost voting and ownership control of Surface and it ceased consolidating Surface’s financial statements. The Surface Series A Stock (i) was issued at a purchase price of $3.30 per share; (ii) will vote together with the common stock and all other shares of stock of Surface having general voting power; (iii) will be entitled to the number of votes equal to the number of shares of preferred stock held; (iv) will hold liquidation preference over all other equity interests in Surface; and (v) will have mandatory conversion requirements into Surface common stock upon events including an underwritten initial public offering of Surface common stock or similar transaction.

At the time of deconsolidation, the Company recorded a gain of $5,320 and adjusted the carrying value in Surface to reflect the increased valuation of Surface and the Company’s new ownership percent in accordance with ASC 810-10-40-4(c).

The Company owns 3,500,000 common shares (which is approximately 30% of the equity interest as of December 31, 2018, and calculated after the second closing of the sale Series A Preferred Stock in July 2018) of Surface and uses the equity method of accounting for this investment, as management has determined that the Company has the ability to exercise significant influence over the operating and financial decisions of Surface. Under this method, the Company recognizes earnings and losses of Surface in its consolidated financial statements and adjusts the carrying amount of its investment in Surface accordingly. The Company’s share of earnings and losses are based on the shares of common stock and in-substance common stock of Surface held by the Company. Any intra-entity profits and losses are eliminated. During the year ended December 31, 2018, the Company recorded equity in net loss of Surface of $373 (which, net of the equity in net loss of Surface totaled an investment gain from Surface of $4,947 during the year ended December 31, 2018). As of December 31, 2018, the carrying value of the Company’s investment in Surface was $4,947.

Property, Plant and Equipment

Property, plant 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 property, plant 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 (See Note 9).

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 sheets. Total billing and collection management expense under this agreement for the years ended December 31, 2018 and 2017 was $1 and $0, respectively, and is included in selling and marketing expenses in the accompanying consolidated statements of operations. The amount due under the agreement as of December 31, 2018 and 2017 was $25 and $41, respectively.

Deferred Rent

The Company accounts for rent expense related to its operating leases by determining total minimum rent payments on the leases over their respective periods and recognizing the rent expense on a straight-line basis. The difference between the actual amount paid and the amount recorded as rent expense in each fiscal year and interim periods within each fiscal year is recorded as an adjustment to deferred rent (see Note 18).

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, 2017, the Company did not have any financial assets or liabilities that are measured on a recurring basis. At December 31, 2018, the Company measured its investment in Eton on a recurring basis. The Company’s investment in Eton is classified as Level 1 as the fair value is determined using quoted market prices in active markets for the same securities. As of December 31, 2018, the fair market value of the Company’s investment in Eton was $21,420.

The Company’s financial instruments included cash and cash equivalents, restricted short-term investments, investment in Eton, accounts receivable, accounts payable and accrued expenses, accrued payroll and related liabilities, deferred revenue and customer deposits, deferred acquisition obligations, notes payable and capital leases. The carrying amount of these financial instruments, except for deferred acquisition obligations, notes payable and 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, notes 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. 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 Income (Loss) per Common Share

Basic net income (loss) per common share is computed by dividing income (loss) attributable to common stockholders for the period by the weighted average number of common shares outstanding during the period. Diluted income (loss) per share is computed by dividing the income (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 income (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, convertible note payable, stock options, unvested restricted stock units (“RSUs”) and warrants were 6,201,355 and 9,980,454 at December 31, 2018 and 2017, respectively, and, for the year ended December 31, 2017 are excluded from the calculation of diluted net (loss) per share for the period presented, because the effect is anti-dilutive for that time period. Included in the basic and diluted net income (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 vested RSUs at December 31, 2018 and 2017 was 236,693 and 137,067, respectively.

The following table shows the computation of basic net income (loss) per share of common stock for the years ended December 31, 2018 and 2017:

	For the		For the
	Year Ended		Year Ended
	December 31, 2018		December 30, 2017

Numerator – net income (loss)	$	14,625	$	(11,985	)
Denominator – weighted average number of shares outstanding, basic		21,917,570		20,027,712
Net income (loss) per share, basic	$	0.67	$	(0.60	)

For the year end December 31, 2018, the Company computed diluted net income per share using the weighted-average number of common shares and dilutive common equivalent shares outstanding during that period. Diluted common equivalent shares for the year ended December 31, 2018, consisted of the following:

	For the Year Ended
	December 31, 2018
	Shares
Diluted shares related to:		21,917,570
Warrants		1,844,272
Restricted stock units		-
Stock options		50,203
Dilutive common equivalent shares		23,812,045

The following table shows the computation of diluted net income (loss) per share using the weighted-average number of common shares and dilutive common equivalent shares outstanding for the years ended December 31, 2018 and 2017:

	For the		For the
	Year Ended		Year Ended
	December 31, 2018		December 30, 2017

Numerator – net income (loss)	$	14,625	$	(11,985	)
Weighted average number of shares outstanding, basic		21,917,570		20,027,712
Dilutive common equivalents		1,894,475		-
Denominator – number of shares used for diluted earnings per share computation		23,812,045		20,027,712
Net income (loss) per share, diluted	$	0.61	$	(0.60	)

Reclassification

Certain amounts in the 2017 consolidated financial statements have been reclassified to conform to the classifications used to prepare the 2018 consolidated financial statements. These reclassifications had no material impact on the Company’s financial position, results of operations, or cash flow as previously reported.

Recently Adopted Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers and has subsequently issued several amendments to ASU 2014-09. 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 standard’s stated core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, ASU 2014-09 includes provisions within its five-step model that includes identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue when, or as, an entity satisfies a performance obligation. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.

The new standard became effective for the Company beginning January 1, 2018 and permits two methods of adoption: the full retrospective method, which requires the standard to be applied to each prior period presented, or the modified retrospective method, which requires the cumulative effect of adoption to be recognized as an adjustment to opening retained earnings in the period of adoption. The Company adopted the standard using the modified retrospective method. There was no effect for any adjustments to retained earnings upon adoption of the standard on January 1, 2018. Adoption of the new standard resulted in additional revenue-related disclosures in the footnotes to the Company’s consolidated financial statements (see Note 3).

In January 2016, the FASB issued ASU 2016-01 , which requires that investments in equity securities (excluding equity method investments) be measured at fair value with changes in fair value recognized in net earnings. Under previous guidelines, changes in fair value of available-for-sale equity securities are recorded in other comprehensive income. The Company adopted ASU 2016-01 as of January 1, 2018. As of that date, adoption of the standard did not have an effect on the Company’s financial position, results of operations and cash flows because the Company did not have any investments in equity securities (at January 1, 2018) that were not equity method investments.

In January 2017, the FASB issued ASU 2017-01, Business Combinations, Clarifying the Definition of a Business, which revises the definition of a business and provides new guidance in evaluating when a set of transferred assets and activities is a business. The Company adopted the standard on January 1, 2018. Adoption of the standard did not have an impact on the Company’s financial position, results of operations and cash flows.

In August 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Classification Restricted Cash, which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company adopted the standard on January 1, 2018 by using the retrospective transition method. Adoption of the standard effected the presentation of cash equivalents in Company’s consolidated statements of cash flows and related disclosures, restricted cash of $200 has been reclassified within that financial statement for the periods presented as a cash equivalent.

In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting. The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting under Topic 718. An entity should account for effects of a modification unless all of the following are met: (1) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The Company adopted this standard on January 1, 2018. Adoption of the standard did not have an effect on the Company’s financial position, results of operations and cash flows.

In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation: Improvements to Nonemployee Share-Based Payment Accounting which simplifies several aspects of the accounting for nonemployee share-based payment transactions resulting from expanding the scope of Topic 718, Compensation-Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. Some of the areas for simplification apply only to nonpublic entities. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted. The Company adopted this standard on July 1, 2018. Adoption of the standard did not have an effect on the Company’s financial position, results of operations and cash flows.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued new lease accounting guidance in ASU No. 2016-02, Leases (Topic 842). This new guidance was initiated as a joint project with the International Accounting Standards Board to simplify lease accounting and improve the quality of and comparability of financial information for users. This new guidance would eliminate the concept of off-balance sheet treatment for “operating leases” for lessees for the vast majority of lease contracts. Under ASU No. 2016-02, at inception, a lessee must classify all leases with a term of over one year as either finance or operating, with both classifications resulting in the recognition of a defined “right-of-use” asset and a lease liability on the balance sheet. However, recognition in the income statement will differ depending on the lease classification, with finance leases recognizing the amortization of the right-of-use asset separate from the interest on the lease liability and operating leases recognizing a single total lease expense. Lessor accounting under ASU No. 2016-02 would be substantially unchanged from the previous lease requirements under GAAP. ASU No. 2016-02 will take effect for public companies in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted and for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, lessees and lessors must apply a modified retrospective transition approach. During the year ended December 31, 2017, the Company evaluated this new accounting standard and engaged professionals in the new lease accounting implementation to assist in determining the effect of the new standard as of January 1, 2018 with respect to the Company’s real estate leases. The Company currently has three real estate leases and evaluated each of these leases in accordance with the new lease accounting standard under ASC Topic 842. As of December 31, 2018, the Company estimates that the right of use asset to be recorded on its consolidated balance sheet would be approximately $2,106 and that the related lease liability would be approximately $2,624 related to operating leases. The difference between the right of use asset and related lease liability is predominantly deferred rent and other related lease expenses under the new lease accounting standard. The Company will continue this effort with respect to equipment leases and any other leases contemplated under Topic 842 in a manner to be appropriately prepared for its implementation on January 1, 2019.

In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other. This guidance simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on the first step in the current two-step impairment test under ASC 350. The updated standard eliminates the requirement to calculate a goodwill impairment charge using Step 2. If a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for reporting periods beginning after December 31, 2019 on a prospective basis, and early adoption is permitted. The Company does not expect ASU 2017-04 to have a material effect on the Company’s financial position, results of operations and cash flows.

Revenues

12 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

Revenues

NOTE 3. REVENUES

On January 1, 2018, the Company adopted ASU 2014-09, using the modified retrospective transition method. There was no effect for any adjustments to retained earnings upon adoption of the standard on January 1, 2018. The Company has two primary streams of revenue: (1) revenue recognized from our sale of products within our pharmacy services and (2) revenue recognized from intellectual property license and asset purchase agreements.

Product Revenues from Pharmacy Services

The Company sells prescription drugs directly through our pharmacy and outsourcing facility network. Revenue from our pharmacy services divisions includes: (i) the portion of the price the client pays directly to us, net of any volume-related or other discounts paid back to the client, (ii) the price paid to us by individuals, and (iii) customer copayments made directly to the pharmacy network. Sales taxes are not included in revenue. Following the core principle of ASU 2014-09, we have identified the following:

1.	Identify the contract(s) with a customer: A contract exists with a customer at the time the prescription or order is received by the Company.

2.	Identify the performance obligations in the contract: The order received contains the performance obligations to be met, in almost all cases the product the customer is wishing to receive. If we are unable to be meet the performance obligation the customer is notified.

3.	Determine the transaction price: the transaction price is based on the product being sold to the customer, and any related customer discounts. These amounts are pre-determined and built into our order management software.

4.	Allocate the transaction price to the performance obligations in the contract: The transaction price associated with the product(s) being ordered is allocated according to the pre-determined amounts.

5.	Recognize revenue when (or as) the entity satisfies a performance obligation: At the time of shipment from the pharmacy or outsourcing facility the performance obligation has been met.

The following revenue recognition policy has been established for the pharmacy services division:

Revenues generated from prescription or office use drugs sold by our pharmacies and outsourcing facility are recognized when the prescription is shipped. At the time of shipment, the pharmacy services division has performed substantially all of its obligations under its client contracts and does not experience a significant level of returns or reshipments. 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. The Company records reductions to revenue for discounts at the time of the initial sale. Estimated returns and allowances and other adjustments are provided for in the same period during which the related sales are recorded and are based on actual returns history. The rate of returns is analyzed annually to determine historical returns experience. If the historical data we use to calculate these estimates do not properly reflect future returns, then a change in the allowance would be made in the period in which such a determination is made and revenues in that period could be materially affected. 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.

Intellectual Property License Revenues

The Company currently holds five intellectual property license and related agreements in which the Company has promised to grant a license or sale which provides a customer with right to access the Company’s intellectual property. 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, each of which revenue is recognized at the point of time the performance obligation is met.

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.

Revenue disaggregated by revenue source for the year ended December 31, 2018 and 2017, consists of the following:

	For the year ended
	December 31,
	2018		2017
Product sales, net	$	41,334	$	26,684
License revenues		38		90
Total revenues	$	41,372	$	26,774

Deferred revenue and customer deposits at December 31, 2018 and 2017, was $119 and $29, retrospectively. All deferred revenue and customer deposit amounts at December 31, 2017 were recognized as revenue during the year ended December 31, 2018.

Investment in Eton Pharmaceuticals, Inc. and Agreements - Related Party Transactions

12 Months Ended

Dec. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Investment in Eton Pharmaceuticals, Inc. and Agreements - Related Party Transactions

NOTE 4. INVESTMENT IN ETON PHARMACEUTICALS, INC. AND AGREEMENTS - RELATED PARTY TRANSACTIONS

In May 2017, the Company entered into two asset purchase and license agreements (the “Eton License Agreements”) with its previously wholly owned subsidiary, Eton. Pursuant to the terms of the Eton License Agreements, the Company assigned and licensed to Eton certain intellectual property and related rights to develop, formulate, make, sell, and sub-license formulations of synthetic corticotropin and injectable pentoxifylline (collectively, the “Eton Products”). Eton is required to make royalty payments to the Company of six percent (6%) of net sales of the Eton Products while any patent rights remain outstanding and then three percent (3%) of net sales in the event patent claims are not issued. In addition, Eton is required to make certain milestone payments to the Company including payments of $50 upon initial patent issuances for each Eton Product. The Eton License Agreements were conditioned upon Eton receiving net proceeds of the sale of its equity securities of not less than $10,000, which occurred in June 2017. See also Note 2, under the subheading Investment in Eton Pharmaceuticals, Inc.

On May 1, 2017, the Company and Eton entered into a Management Services Agreement (the “MSA”), whereby the Company provided to Eton certain administrative services and support, including bookkeeping, web services and human resources related activities, and Eton will pay the Company a monthly amount of $10. A 30-day notice of termination was delivered to the Company on August 29, 2017. Eton paid the Company $40 for services under the MSA.

As of December 31, 2018, the Company held 3.5 million shares in Eton at a fair market value of $6.12 per share. In November 2018, the Company entered into a lock-up agreement, that prohibits the sale of any of our Eton common stock until November 2019, without the approval of National Securities Corporation. As of December 31, 2018, the carrying value of the Company’s investment in Eton was $21,420.

The Company owns 19.98% of the voting interests in Eton (3,500,000 shares of Eton common stock). The Company’s Chief Executive Officer, Mark L. Baum, is a director of Eton, and several employees of the Company (including Mr. Baum and the Company’s Chief Financial Officer, Andrew R. Boll) previously entered into consulting agreements with Eton.

Investment in Surface Pharmaceuticals, Inc. and Agreements - Related Party Transactions

12 Months Ended

Dec. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Investment in Surface Pharmaceuticals Inc. and Agreements - Related Party Transactions

NOTE 5. INVESTMENT IN SURFACE PHARMACEUTICALS, INC. AND AGREEMENTS - RELATED PARTY TRANSACTIONS

In 2017 and amended in April 2018, the Company entered into two asset purchase and license agreements (the “Surface License Agreements”) with its previously wholly owned subsidiary, Surface. Pursuant to the terms of the Surface License Agreements, the Company assigned and licensed to Surface certain intellectual property and related rights to develop, formulate, make, sell, and sub-license formulations of certain topical eye drop formulations that utilize a proprietary delivery vehicle and a proprietary doxycycline capsule (collectively, the “Surface Products”). Surface is required to make royalty payments to the Company of four to six percent (4%-6%) of net sales of the Surface Products while any patent rights remain outstanding. Certain of the Surface License Agreements were conditioned upon Surface receiving net proceeds of the sale of its equity securities of not less than $10,000, which occurred in May 2018. See also Note 2, under the subheading Investment in Surface Pharmaceuticals, Inc.

In January 2018, the Company and Surface entered into an amended Management Services Agreement (the “MSA”), whereby the Company provided to Surface certain administrative services and support, including bookkeeping, web services and human resources related activities, and Surface paid the Company a monthly amount of $10. The MSA was terminated effective July 31, 2018.

As of December 31, 2018, the Company was due $50 from Surface for reimbursable expenses and amounts due under the MSA and included in prepaid expenses and other current assets on the accompanying consolidated balance sheets.

As of December 31, 2018, the Company owned 3,500,000 shares of Surface common stock (approximately 30% issued and outstanding equity interests). One of the Company’s directors, Richard L. Lindstrom, and the Company’s Chief Executive Officer, Mark L. Baum, are directors of Surface. In addition, the Company’s Chief Financial Officer, Andrew R. Boll, was a director of Surface and resigned as a director of Surface concurrent with the sale of the Surface Series A Stock. Several employees and a director of the Company (including Mr. Baum, Dr. Lindstrom and Mr. Boll) previously entered into consulting agreements and provided consulting services to Surface. Surface is required to make royalty payments to Dr. Lindstrom of 3% of net sales of certain Surface products while certain patent rights remain outstanding. Dr. Lindstrom is also a principal of Flying L Partners, an affiliate of the funding investor.

The unaudited condensed results of operations information of Surface is summarized below:

	For the Year Ended
	December 31, 2018
Revenues, net	$	-
Loss from operations		1,370
Net loss	$	(1,370	)

The unaudited condensed balance sheet information of Surface is summarized below:

	At
	December 31, 2018
Current assets	$	19,699
Non current assets		50
Total assets		19,749

Total liabilities		165
Total stockholders equity		19,584
Total liabilities and stockholders’ equity	$	19,749

Restricted Cash

12 Months Ended

Dec. 31, 2018

Cash and Cash Equivalents [Abstract]

Restricted Cash

NOTE 6. RESTRICTED CASH

The restricted cash at December 31, 2018 and 2017 consisted of funds held in a money market account. At December 31, 2018 and 2017, the restricted cash was recorded at amortized cost, which approximates fair value.

At December 31, 2018 and 2017, the funds held in a money market account of $200 were classified as a current asset. The money market account funds are required as collateral as additional security for the Company’s New Jersey facility lease.

Inventories

12 Months Ended

Dec. 31, 2018

Inventory Disclosure [Abstract]

Inventories

NOTE 7. INVENTORIES

Inventories are comprised of finished compounded formulations, 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, 2018 and 2017 was as follows:

	December 31, 2018		December 31, 2017
Raw materials	$	1,119	$	956
Work in progress		6		-
Finished goods		709		1,293
Total inventories	$	1,834	$	2,249

Prepaid Expenses and Other Current Assets

12 Months Ended

Dec. 31, 2018

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

Prepaid Expenses and Other Current Assets

NOTE 8. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consisted of the following:

	December 31, 2018		December 31, 2017
Prepaid insurance	$	328	$	164
Other prepaid expenses		334		426
Receivable due from Surface		50		-
Deposits and other current assets		125		124
Total prepaid expenses and other current assets	$	837	$	714

Asset Sales and Note Receivable

12 Months Ended

Dec. 31, 2018

Asset Sales And Note Receivable

Asset Sales and Note Receivable

NOTE 9. ASSET SALES AND NOTE RECEIVABLE

On June 27, 2017, the Company entered into an Asset Purchase Agreement (the “PA Agreement”) with Creative Pharmacy Solutions Central, LLC (the “Buyers”), which closed in July 2017. Under the terms of the PA Agreement, the Company sold substantially all its assets associated with its sinus related business, including but not limited to, certain intellectual property rights, trademarks, copyrights, inventories, equipment, customer lists, databases, permits, licenses, and assignment of the Company’s lease obligation for its Pennsylvania based pharmacy (the “PA Assets”), for a total purchase price of approximately $450.

Under the terms of the PA Agreement, the Buyers, upon closing, paid to the Company an aggregate cash amount of $40. In addition, the Buyers are obligated to pay the remaining $410 pursuant to a note bearing interest at 6% per annum (the “Sellers Note”). The Buyers are required to make forty-eight monthly cash payments to the Company of $10 following the closing, totaling $462; provided however, that the Buyer had the option to make a one-time payment of $365 any time prior to December 31, 2017, and the Company would waive any remaining amounts due on the Sellers Note. The principal amount of the Sellers Note was also subject to post-closing adjustment through December 31, 2017, if certain criteria were met, however, that period ended and no adjustments were made. There was $397 due under the Sellers Note as of December 31, 2017, which has not yet been paid.

The Company recorded a loss of $69 during the year ended December 31, 2017, related to the sale of the PA Assets.

The Company recorded a loss of $393, which was recorded in other expense, net, during the year ended December 31, 2018, related to the impairment and write-off of all amounts owed to it under its note receivable. The write-off is due to the Company’s estimate of collectability of the asset.

In June 2017, in a separate transaction, the Company entered into an agreement to sell certain equipment to a third party for amount of $60 and closed the transaction in July 2017. The Company recorded a loss related to equipment of $52 during the year ended December 31, 2017.

Assets sold during the year ended December 31, 2017 consisted of the following:

	December 31, 2017
Inventories	$	413
Furniture and equipment		226
		639
Loss on asset sale		(127	)
Assets sold	$	512

In February 2017, the Company entered into a stock purchase agreement (the “SPA”) with Livernois & London, LLC (“Livernois”). Pursuant to the terms of the SPA, the Company sold to Livernois 100% of the issued and outstanding shares of common stock of its Texas based subsidiary, ImprimisRx TX, Inc. dba ImprimisRx (“Imprimis TX”). The SPA did not transfer to Livernois any of the Company’s rights to intellectual property, products, clients, nor any of its existing business operations. As consideration for the purchase of Imprimis TX, Livernois paid the Company $10 and the Company assigned, and Livernois assumed, the remaining lease obligation totaling $113 for the Texas based facility. The Company recorded a loss of $173 from the sale of Imprimis TX for the year ended December 31, 2017, which is included in the accompanying consolidated statements of operations.

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

NOTE 10. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment at December 31, 2018 and 2017 consisted of the following:

	December 31, 2018			December 31, 2017
Property, plant and equipment, net:
Computer software and hardware	$	1,662		$	1,239
Furniture and equipment		397			377
Lab and pharmacy equipment		3,184			2,545
Leasehold improvements		5,496			4,810
		10,739			8,971
Accumulated depreciation and amortization		(4,364	)		(2,756	)
	$	6,375		$	6,215

The Company recorded depreciation and amortization expense of $1,608 and $1,401 during the years ended December 31, 2018 and 2017, respectively.

Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

NOTE 11. INTANGIBLE ASSETS AND GOODWILL

The Company’s intangible assets at December 31, 2018 consisted of the following:

	Amortization
	periods			Accumulated						Net
	(in years)	Cost		amortization			Impairment			Carrying value
Patents	17-19 years	$	755	$	(49	)	$	-		$	706
Licenses	20 years		50		-			-			50
Trademarks	Indefinite		320		-			-			320
Customer relationships	3-15 years		2,998		(1,014	)		(15	)		1,969
Trade name	5 years		16		(13	)		(1	)		2
Non-competition clause	3-4 years		294		(274	)		(20	)		-
State pharmacy licenses	25 years		45		(5	)		(28	)		12
		$	4,478	$	(1,355	)	$	(64	)	$	3,059

Amortization expense for intangible assets for the year ended December 31 was as follows:

	For the		For the
	Year Ended		Year Ended
	December 31, 2018		December 31, 2017
Patents	$	28	$	15
Licenses		-		-
Customer relationships		201		257
Trade name		4		3
Non-competition clause		1		87
State pharmacy licenses		2		2
	$	235	$	364

Estimated future amortization expense for the Company’s intangible assets at December 31, 2018 is as follows:

Years ending December 31,
2019	$	244
2020		242
2021		242
2022		242
Thereafter		2,089
	$	3,059

There have been no changes in the carrying value of the Company’s goodwill during the year ended December 31, 2018.

Accounts Payable and Accrued Expenses

12 Months Ended

Dec. 31, 2018

Payables and Accruals [Abstract]

Accounts Payable and Accrued Expenses

NOTE 12. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses at December 31, 2018 and 2017 consisted of the following:

	December 31, 2018			December 31, 2017
Accounts payable	$	5,606		$	3,241
Deferred rent		388			388
Accrued interest (see Note 13)		256			256
Accrued exit fee for note payable (see Note 13)		800			800
Total accounts payable and accrued expenses		7,050			4,685
Less: Current portion		(6,250	)		(3,885	)
Non-current total accrued expenses	$	800		$	800

Debt

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Debt

NOTE 13. DEBT

LSAF Senior Note

During 2015 and 2016, the Company entered into a loan and security agreement (the “Loan Agreement”) with IMMY Funding LLC, an affiliate of Life Sciences Alternative Funding LLC (“LSAF”), as lender and collateral agent. Pursuant to the terms of the Loan Agreement, as amended in January 2016 and December 2016, 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 bore interest at a fixed per-annum rate of 12.5% and allowed for 2% of the interest to be paid-in-kind until December 2016. The Loan Agreement included a final fee of 5% of the aggregate principal amount of the term loan and prepayment fees of up to 1% of the principal balance were due on January 1, 2019. In connection with the Loan Agreement, the Company issued a warrant to purchase up to 125,000 shares of the Company’s common stock to LSAF. The Company then entered into subsequent amendments and related note payable agreements with LSAF related to the Loan Agreement and its warrants during 2016, including a convertible note agreement and note exchange agreement. Beginning January 1, 2017, the Company owed LSAF $13,332 under the Loan Agreement, its subsequent amendments and related agreements, including any interest that has been paid in kind of the principal balance, in aggregate.

SWK Senior Note and LSAF Payoff – 2017

In July 2017, the Company entered into a term loan and security agreement in the principal amount of $16,000 (the “SWK Loan Agreement” or “SWK Loan”) with SWK Funding LLC and its partners (“SWK”), as lender and collateral agent. The SWK Loan Agreement was fully funded at closing with a five-year term, however, such term may be reduced to four years if certain revenue requirements are not achieved. Concurrently with the funding, the Company utilized a portion of the SWK Loan funds as full payment to an affiliate of LSAF to terminate all amounts due to LSAF in connection with the LSAF Agreement. In total, including previously made principal payments, the Company made payments of $13,999 to pay-off the LSAF Agreement and expenses, which also included the previously accrued exit fee, interest paid in kind and other expenses related to the payoff. The Company also recorded a loss on early extinguishment of debt during the year ended December 31, 2017 of $884 related to the pay-off.

The SWK Loan bears interest at a variable rate equal to the three-month London Inter-Bank Offered Rate (subject to a minimum of 1.50% and maximum of 3.00%), plus an applicable margin of 10.50%. The SWK Loan Agreement permits the Company to pay interest only on the principal amount loaned thereunder for the first six payments (payments are due on a quarterly basis), which interest-only period could have been reduced to four payments if the Company had not met certain minimum revenue requirements. Following the interest-only period, the Company will be required to pay interest, plus repayments of the principal amount loaned under the SWK Loan Agreement, in quarterly payments, which shall not exceed $750 per quarter. All amounts owed under the SWK Loan Agreement, including a final fee equal to 5% of the aggregate principal amount loaned thereunder, will be due and payable on July 19, 2022. The Company may elect to prepay all, but not less than all, of the amounts owed under the SWK Loan Agreement prior to the maturity date at any time after July 19, 2019. The Company is also obligated under the SWK Loan Agreement to pay for certain expenses incurred by the SWK Lender through and after the date of the SWK Loan Agreement, including certain fees and expenses relating to the preparation and administration of the SWK Loan Agreement. The Company incurred expenses and final fee of approximately $1,282 in connection with the SWK Loan Agreement. The final fee and expenses are being amortized as interest expense over the term of the SWK Loan using the effective interest rate method and the related liability of $800 for the final fee is included in accrued expenses (see Note 12) in the accompanying consolidated balance sheets as of December 31, 2018 and 2017.

In connection with the SWK Loan Agreement, the Company issued to SWK warrants to purchase up to 415,586 shares of the Company’s common stock (the “Lender Warrants”) with an exercise price of $3.08. In August 2017, the Company and SWK amended the warrants, to allow for the purchase up to 615,386 warrants with an exercise price of $2.08. The Lender Warrants are exercisable immediately, and have a term of 7 years. The Lender Warrants are subject to a cashless exercise feature, with the exercise price and number of shares issuable upon exercise subject to change in connection with stock splits, dividends, reclassifications and other conditions. The relative fair value of the Lender Warrants was approximately $982 and was estimated using the Black-Scholes-Merton option pricing model with the following assumptions: fair value of the Company’s common stock at issuance of $2.08 per share; seven-year contractual term; 113.5% volatility; 0% dividend rate; and a risk-free interest rate of 1.77%.

For the years ended December 31, 2018 and 2017, debt discount amortization related to notes payable were $520 and $811, respectively.

Notes payable at December 31, 2018 were as follows:

	December 31, 2018
SWK note	$	16,000
Less: Discount on note		(1,472	)
Less: Current portion		(2,529	)
Long-term portion	$	11,999

Future minimum payments under notes payable outstanding at December 31, 2018 are as follows:

	Amount
2019	$	5,018
2020		4,402
2021		4,033
2022		7,410
Total minimum payments		20,863
Less: amount representing interest		(4,863	)
Notes payable, gross		16,000
Less: unamortized discount		(1,472	)
Less: current portion, net of unamortized discount		(2,529	)
Note payable, net of current portion and unamortized debt discount	$	11,999

Capital Lease Obligation

12 Months Ended

Dec. 31, 2018

Leases [Abstract]

Capital Lease Obligation

NOTE 14. CAPITAL LEASE OBLIGATION

On August 9, 2016, the Company entered into a commercial lease agreement (the “Lease Agreement”) with Essex Capital Corporation (“Essex”). Pursuant to the terms of the Lease Agreement, the Company sold certain equipment (the “Equipment”) to Essex for a total purchase price of approximately $2,000, which was then leased back to the Company under a thirty-six month term net basis lease with monthly payments of approximately $64. The fair value of equipment sold and then leased under the Lease Agreement totaled approximately $2,000. The lease term may be extended for an additional twelve month period in the event the Company achieves certain financial milestones. The Company has the right to purchase the Equipment from Essex upon the expiration of the Lease Agreement for a purchase price equal to the Equipment’s then fair market value, with such fair market value not to exceed fifteen percent of the original Equipment value on August 9, 2016. If the Equipment is not purchased at the end of the term, the Company may automatically extend the lease on a month-to-month basis or return the Equipment and terminate the Lease Agreement. The Company expects to purchase the Equipment at the end of the term of the lease and has accrued the final payment amount of $300. The Company also incurred expenses of approximately $67 in connection with the Lease Agreement. The issuance costs were recorded as a discount. The discount is being amortized as interest expense over the term of the lease using the effective interest method. The Company used an interest rate of 16.8% for calculation of the present value of the future minimum payments under the Lease Agreement. For the years ended December 31, 2018 and 2017, debt discount amortization related to the Lease Agreement was $93 and $167, respectively, and is included in interest expense in the accompanying consolidated statement of operations.

At December 31, 2018, future payments under the Company’s capital lease were as follows:

	Amount
2019	$	751
Total minimum lease payments		751
Less: amount representing interest payments		(15	)
Present value of future minimum lease payment		736
Less: unamortized discount		(16	)
		720
Less: current portion, net of unamortized discount		(720	)
Capital lease obligation net of current portion and unamortized discount	$	-

The cost of the equipment under capital leases as of December 31, 2018 and 2017 was $2,070, with related accumulated depreciation of $729 and $444, respectively.

Stockholders' Equity and Stock-Based Compensation

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Stockholders' Equity and Stock-Based Compensation

NOTE 15. STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

Common Stock

At December 31, 2018 and 2017, the Company had 50,000,000 and 90,000,000 shares of common stock, $0.001 par value, authorized, respectively. On July 10, 2018, the Company amended its amended and restated certificate of incorporation to reduce the number of authorized shares of common stock from 90,000,000 to 50,000,000.

Issuances During the Year Ended December 31, 2017

In March 2017, we entered into securities purchase agreements with two accredited investors, which provided for the sale by the Company of 1,312,500 shares of its common stock, at a price of $2.40 per share (the “Registered Offering”). We received net proceeds of $2,940 after deducting the underwriter discount of 6% of the gross proceeds from the Registered Offering and other related expenses.

In March 2017, the Company issued 25,000 shares of its restricted common stock, with a fair value of $60, as payment for investor relations related services.

In April 2017, the Company issued 100,000 shares of common stock as a result of warrant exercises. The Company received cash proceeds of $179 upon the exercise of the warrants with an exercise price of $1.79.

In November 2015, the Company entered into a Controlled Equity Offering^SM sales 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. The Company sold 557,714 shares of common stock and received net proceeds of $1,124, after deducting $35 for sales commission and offering expenses, under the Sales Agreement during the year ended December 31, 2017.

During the year ended December 31, 2017, 56,822 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.

Issuances During the Year Ended December 31, 2018

In January 2018, the Company issued 25,273 shares of its restricted common stock, with a fair value of $44, in lieu of a cash payment for accrued royalty expenses.

RSUs granted in February 2015 to Andrew R. Boll, the Company’s Chief Financial Officer, vested, and in February 2018, 30,000 shares the Company’s common stock were issued to Mr. Boll.

RSUs granted in February 2015 to John P. Saharek, the President of ImprimisRx (formerly, the Company’s Chief Commercial Officer), vested, and in February 2018, 30,000 shares the Company’s common stock were issued to Mr. Saharek.

In March 2018, the Company issued 35,427 shares of its restricted common stock, with a fair value of $64, in lieu of a cash payment for accrued royalty expenses.

In December 2018, the Company issued 15,000 shares of its restricted common stock, with a fair value of $42, related to a milestone payment due under a sales and marketing agreement.

The Company sold 305,619 shares of common stock and received net proceeds of $642, after deducting $20 for sales commission and offering expenses, under the Sales Agreement during the nine months ended September 30, 2018. In November 2018, the Company terminated the Sales Agreement.

During the year ended December 31, 2018, the Company issued 2,364,889 shares of its common stock related to the exercise of common stock warrants with an exercise price of $1.79, and received net proceeds of $4,233.

During the year ended December 31, 2018, the Company issued 910,273 shares of its common stock related to the cashless exercise of 1,576,665 common stock warrants with an exercise price of $1.79.

During the year ended December 31, 2018, 99,626 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, 2018 and 2017, 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 “2007 Plan”). The 2007 Plan reached its term in September 2017, and we can no longer issue additional awards under this plan, however, options still outstanding and previously issued under the 2007 Plan will remain outstanding until they are exercised, reach their maturity or are otherwise cancelled/forfeited. On June 13, 2017, the Company’s Board of Directors and stockholders adopted the Company’s 2017 Incentive Stock and Awards Plan (the “2017 Plan” together with the 2007 Plan, the “Plan”). As of December 31, 2018, the 2017 Plan provide for the issuance of a maximum of 2,000,000 shares of the Company’s common stock. The purpose of the Plan is to attract and retain directors, officers, consultants, advisors and employees whose services are considered valuable, to encourage a sense of proprietorship and to stimulate an active interest of such persons in the Company’s development and financial success. Under the Plan, the Company is authorized to issue incentive stock options intended to qualify under Section 422 of the Internal Revenue Code, non-qualified stock options, restricted stock units and restricted stock. The Plan is administered by the Compensation Committee of the Company’s Board of Directors. The Company had 1,572,640 shares available for future issuances under the 2017 Plan at December 31, 2018.

Stock Options

A summary of stock option activity under the Plan for the year ended December 31, 2018 is as follows:

	Number of shares			Weighted Avg. Exercise Price		Weighted Avg. Remaining Contractual Life		Aggregate Intrinsic Value
Options outstanding - January 1, 2018		2,259,979		$	5.50
Options granted		296,500		$	1.80
Options exercised		-		$	-
Options cancelled/forfeit		(74,470	)	$	4.29
Options outstanding - December 31, 2018		2,482,009		$	5.10		5.51	$	3,990
Options exercisable		1,337,780		$	4.94		6.22	$	3,525
Options vested and expected to vest		2,368,925		$	5.09		5.53	$	3,805

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, 2018, based on the closing price of the Company’s common stock of $5.69 on that date.

During 2018 and 2017, the Company granted stock options to certain employees, directors and consultants. The stock options were granted with an exercise price equal to the current market price of the Company’s common stock, as reported by the securities exchange on which the common stock was then listed, at the grant date and have contractual terms ranging from five to 10 years. Vesting terms for options granted in 2018 and 2017 to employees 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. 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. Beginning on April 1, 2018, the Company began calculating expected volatility based solely on the historical volatilities of the common stock of the Company. In the past, the expected volatility was based on the historical volatilities of the common stock of the Company and comparable publicly traded companies, the Company previously utilized this methodology based on its estimate that it had limited relevant historical data regarding the volatility of its stock price on which to base a meaningful estimate of expected volatility. 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.

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:

	2018			2017
Weighted-average fair value of options granted	$	1.42		$	2.04
Expected terms (in years)		5.77 - 6.11			5.81 - 6.11
Expected volatility		76 - 126	%		112 - 117	%
Risk-free interest rate		2.05 - 3.00	%		1.77 - 2.01	%
Dividend yield		-			-

The following table summarizes information about stock options outstanding and exercisable at December 31, 2018:

			Weighted
			Average		Weighted				Weighted
			Remaining		Average				Average
Range of	Number		Contractual		Exercise		Number		Exercise
Exercise Prices	Outstanding		Life in Years		Price		Exercisable		Price
$1.47 - $2.60		837,375		7.74	$	2.04		420,774	$	2.16
$3.04 - $4.50		536,622		6.97	$	3.96		415,784	$	3.98
$5.49 - $6.36		99,350		4.52	$	5.97		97,784	$	5.97
$6.64 - $8.99		1,003,632		2.98	$	7.98		398,408	$	8.16
$42.80		5,030		1.62	$	42.80		5,030	$	42.80
$1.47 - $42.80		2,482,009		5.51	$	5.10		1,337,780	$	4.94

As of December 31, 2018, there was approximately $1,888 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 1.9 years. The stock-based compensation for all stock options was $1,317 and $1,672 during the years ended December 31, 2018 and 2017, 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, 2017

During the year ended December 31, 2017, the Company granted an aggregate of 62,892 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.

A summary of the Company’s RSU activity and related information for the year ended December 31, 2017 is as follows:

	Number of RSUs			Weighted Average Grant Date Fair Value
RSUs unvested - January 1, 2017		1,292,876		$	2.43
RSUs granted		62,892			3.18
RSUs vested		(56,822	)		3.94
RSUs cancelled/forfeit		-
RSUs unvested at December 31, 2017		1,298,946		$	2.42

Grants During the Year Ended December 31, 2018

During the year ended December 31, 2018, the Company granted an aggregate of 136,360 RSUs to its non-employee directors valued at $300. 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, 2018 is as follows:

	Number of RSUs			Weighted Average Grant Date Fair Value
RSUs unvested - January 1, 2018		1,298,946		$	2.42
RSUs granted		136,360			2.20
RSUs vested		(159,626	)		3.94
RSUs cancelled/forfeit		-
RSUs unvested at December 31, 2018		1,275,680		$	2.16

As of December 31, 2018, the total unrecognized compensation expense related to unvested RSUs was approximately $441 which is expected to be recognized over a weighted-average period of 0.1 years, based on estimated vesting schedules. The stock-based compensation for RSUs was $1,149 and $1,211 during the years ended December 31, 2018 and 2017, respectively.

Subsidiary Stock-Based Transactions

During the year ended December 31, 2018 the Company recognized $21 in stock-based compensation related to equity instruments granted by Surface and Melt to consultants, the Company’s employees and directors, including its CEO, Mark Baum, CFO, Andrew Boll, and a director, Richard Lindstrom,.

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, 2018		December 31, 2017
Employees - selling and marketing	$	82	$	449
Employees - general and administrative		2,169		2,229
Directors - general and administrative		235		205
Consultants - selling and marketing		150		60
Total	$	2,636	$	2,943

Warrants

From time to time, the Company issues warrants to purchase shares of the Company’s common stock to investors, lenders (see Note 13), underwriters and other non-employees for services rendered or to be rendered in the future.

A summary of warrant activity during the year ended December 31, 2018 is as follows:

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

Warrants outstanding - January 1, 2018		6,264,215		$	1.91
Granted		-
Exercised		(3,941,554	)		1.79
Expired		(115,688	)		6.94
Warrants outstanding and exercisable - December 31, 2018		2,206,973		$	1.91
Weighted average remaining contractual life of the outstanding warrants in years - December 31, 2018		2.60

The table below illustrates the fair value per share determined by the Black-Scholes-Merton option pricing model with the following assumptions used for valuing warrants granted during the year ended December 31, 2017 related to loan agreements:

	2017
Weighted-average fair value of warrants granted	$	1.70
Expected terms (in years)		7.00
Expected volatility		113.5	%
Risk-free interest rate		1.77	%
Dividend yield		-

All warrants outstanding as of December 31, 2018 are included in the following table:

	Warrants Outstanding				Warrants Exercisable
		Warrants		Exercise	Warrants	Expiration
Warrant Series	Issue Date	Outstanding		Price	Exercisable	Date
Lender warrants	5/11/2015	125,000	$	1.79	125,000	5/11/2025
Settlement warrants	8/16/2016	40,000	$	3.75	40,000	8/16/2021
PIPE Investor and Placement Agent Warrants	12/27/2016	1,426,587	$	1.79	1,426,587	12/27/2019
Lender warrants (see Note 13)	7/19/2017	615,386	$	2.08	615,386	7/19/2024
		2,206,973	$	1.91	2,206,973

Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 16. 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, 2018 and 2017 are summarized below:

	December 31, 2018			December 31, 2017
Current:
Federal	$	-		$	-
State		6			5
Total current	$	6		$	5

Deferred:
Federal	$	3,294		$	6,474
State		440			(283	)
Change in valuation allowance		(3,734	)		(7,126	)
Total deferred		-			(935	)
Income tax provision (benefit)	$	6		$	(931	)

Income tax expense for the years ended December 31, 2018 and 2017, 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, 2018			December 31, 2017
U.S. federal statutory tax rate		21.00	%		35.00	%
Benefit of lower tax brackets		0.00	%		(1.00	)%
State tax benefit, net		0.04	%		1.60	%
Research and development credits		(0.14	)%		0.00	%
Employee stock-based compensation		0.46	%		(0.84	)%
Loss on debt conversion		0.00	%		(2.39	)%
Change in Rate		0.00	%		(62.97	)%
Other		0.13	%		3.04	%
Valuation allowance		(21.93	)%		34.82	%
Effective income tax rate		(0.44	)%		7.27	%

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, 2018			December 31, 2017
Deferred tax assets (liabilities):
NOL’s	$	19,726		$	17,405
Depreciation and amortization		30			58
Other		602			351
Research & development credits		617			596
Deferred stock compensation		3,036			2,534
Basis Difference in Surface		(1,464	)		-
Basis Difference in Eton		(6,340	)		(985	)
Park stock purchase identifiable intangibles		(484	)		(501	)
Total deferred tax assets, net		15,723			19,457
Valuation allowance		(15,723	)		(19,457	)
Net deferred tax liabilities	$	-		$	-

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 decreased by approximately $3,700 and increased by approximately $7,100 during 2018 and 2017, respectively.

As of December 31, 2018, the Company had net operating loss carryforwards for federal income tax purposes of approximately $67,463 and federal research and development tax credits of approximately $375. Under new tax law, federal NOLs can be carried forward indefinitely. The federal research credits will expire beginning in the year 2026. As of December 31, 2018, the Company had net operating loss carryforwards for state income tax purposes of approximately $64,629 which expire beginning in the year 2017 and state research and development tax credits of approximately $305 which do not expire.

In March 2016, the FASB issued ASU 2016-09, Improvement to Employee Share – Based Payment Accounting. The new standard contains several amendments that will simplify the accounting for employee share-based payment transactions. The changes in the new standard eliminate the accounting for excess tax benefits to be recognized in additional paid-in capital and tax deficiencies recognized either in income tax provision or in additional paid-in capital. The Company’s deferred tax asset at December 31, 2018 did not include any excess tax benefits from employee stock option exercises, which are a component of the federal and state net operating loss carryforwards and on a go forward basis the excess tax benefits will be recognized as a component of income tax expense.

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.

In June 2006, the FASB issued interpretation ASC 740-10-50, Accounting for Uncertainty in Income Tax. This pronouncement clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with ASC 740-10-50, Accounting for Income Taxes. This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in the tax return. ASC 740 also provides guidance on derecognition of tax benefits, classification on the balance sheet, interest and penalties, accounting in interim periods, disclosure and transaction. The Company adopted ASC 740-10-50 effective January 1, 2009. In accordance with ASC 740-10-50, the Company is classifying interest and penalties as a component of tax expense.

The Company did not have any unrecognized tax benefits as of December 31, 2018 and 2017, all of which is offset by a full valuation allowance. These unrecognized tax benefits, if recognized, would not affect the effective tax rate. There was no interest or penalties accrued at the adoption date and at December 31, 2017.

A reconciliation of the change in the UTB balance from January 1, 2018 to December 31, 2017 is as follows:

		Fed & State Tax
Balance at January 1, 2018	$	-
Additions for tax positions related to current year		-
Additions/(reductions) for tax positions related to prior years		-

Balance at December 31, 2018		-

Total unrecognized tax benefits as of December 31, 2018	$	-

On December 27, 2017, the United States Government passed new tax legislation that, among other provisions, will lower the corporate tax rate from 35% to 21%. In addition to applying the new lower corporate tax rate in 2018 and thereafter to any taxable income the Company may have, the legislation affects the way the Company can use and carryforward net operating losses previously accumulated and results in a revaluation of deferred tax assets and liabilities recorded on our consolidated balance sheet. Given the current deferred tax assets are offset by a full valuation allowance, these changes will have no net impact on the consolidated balance sheet. However, when the Company become profitable, it will receive a reduced benefit from such deferred tax assets. The effect of the legislation was a reduction in the deferred tax assets and the corresponding valuation allowance of approximately $8,059.

Employee Savings Plan

12 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

Employee Savings Plan

NOTE 17. 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 $248 and $288 to the plan during the years ended December 31, 2018 and 2017, respectively.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE 18. COMMITMENTS AND CONTINGENCIES

Operating Leases

In May 2014, the Company entered into a lease agreement for 7,565 square feet of office space that commenced on September 1, 2014. In May 2017, the Company entered into an amended lease agreement, to lease an additional 2,635 square feet (10,200 square feet in total). Monthly rent following the amendment is $29, 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 and expires on December 31, 2021, and includes an option to extend the lease through December 31, 2027.

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 and includes 2 options that allow for the lease term to be extended 10 additional years beyond the stated expiration date.

In February 2015, the Company entered into a lease agreement for approximately 8,600 square feet of laboratory, warehouse and office space in Ledgewood, New Jersey. The Company amended the lease agreement in July 2017, to add approximately 7,000 square feet of additional space and amended the lease agreement again in September 2018, to add approximately 9,400 square feet. The lease term expires on July 31, 2024, and includes 2 options that allow for the lease term to be extended 10 additional years beyond the stated expiration date. The monthly rent amount is $25 and includes annual increases of approximately 3.75%, and the lease allowed for the first five months of rent amounts to be abated.

Rent expense for the years ended December 31, 2018 and 2017 was $725 and $649, respectively. The following represents future annual minimum lease payments, as of December 31, 2018:

2019	$	797
2020		857
2021		742
2022		320
2023		330
2024		196
Total	$	3,242

Legal

Dr. Sobol

In December 2016, Louis L. Sobol, M.D. (“Sobol”) filed a lawsuit in the U.S. District Court for the Eastern District of Michigan, Southern Division against the Company, asserting claims on behalf of himself and an as-yet-uncertified class of consumers. The claims allege violations under the Telephone Consumer Protection Act, 47 U.S.C. § 227 via the Company’s alleged transmittal of advertisements to its clients via facsimile. In June 2018, Sobol filed a motion for class certification and in July 2018 the Company filed a response in opposition to the motion for class certification. A hearing on class certification was heard in October 2018, however, prior to a decision regarding class certification was made, in February 2019, the Company entered into a proposed settlement agreement to award the proposed class up to $1,400 in damages. Due to the nature of the lawsuit and claims, the Company expects total damages related to this lawsuit will total approximately $640. The Company expects the Court will rule to accept the settlement agreement in the spring of 2019. The Company accrued an expense of $640, its estimated damages related to the settlement agreement, during the year ended December 31, 2018.

Allergan USA

In September 2017, Allergan USA, Inc. (“Allergan”) filed a lawsuit in the U.S. District Court for the Central District of California against Imprimis Pharmaceuticals, Inc., primarily claiming violations under the federal Lanham Act and California’s Sherman Act. The parties have each filed a motion for summary judgment and Imprimis also filed a motion to stay. The parties’ motions is scheduled to be heard on March 26, 2019. The trial date is currently set for April 2019. The Company believes the claims are frivolous, and we have previously and will continue to dispute all claims asserted against it and intends to vigorously defend these allegations. Nonetheless, the Company cannot predict the eventual outcome of this litigation, it could result in substantial costs, losses and a diversion of management’s resources and attention, which could harm the Company’s business and the value of its common stock.

Spectrum

In February 2018, the Company filed a complaint against Spectrum Laboratory Products, Inc., Spectrum Chemical Manufacturing Corp. and Spectrum Pharmacy Products, Inc. (collectively “Spectrum”) in the Los Angeles County Superior Court asserting claims for breach of contract, breach of implied covenant of good faith and fair dealing, violation of California Commercial Code Section 2101 and fraud. The claims stem from prior business dealings between the Company and Spectrum and allege false representation by Spectrum regarding their products, fraudulent labeling and misrepresentations of approved product usages. The complaint was filed with the Court and in May 2018, Spectrum filed an answer with the Court. In November 2018, we dismissed, without prejudice, the Company lawsuit against Spectrum.

Novel Drug Solutions et al.

In April 2018, Novel Drug Solutions, LLC and Eyecare Northwest, PA, (collectively “NDS”) filed a lawsuit against the Company in the U.S. District Court of Delaware asserting claims for breach of contract. The claims stem from an asset purchase agreement between the Company and NDS entered into in 2013. In July 2018, NDS filed a first amended complaint which added a claim for fraudulent inducement. In July 2018, the Company filed a motion to dismiss certain causes of action found in the complaint, and the Company motion to dismiss was denied. In October 2018, the Company filed counterclaims alleging breach of contract and breach of covenant of good faith and fair dealing and named certain individual defendants. The lawsuit is currently in the discovery phase. The Company believe the claims are frivolous and have previously and will continue to dispute all claims asserted against it and intends to vigorously defend these allegations. Nonetheless, the Company cannot predict the eventual outcome of this litigation, it could result in substantial costs, losses and a diversion of management’s resources and attention, which could harm the Company’s business and the value of its common stock.

California Board of Pharmacy

In March 2018, the California Board of Pharmacy filed an accusation against Park related to a compounded formulation the Company believes was legally dispensed and was, without its knowledge, inappropriately administered to a patient unknown to the Company, by the prescribing healthcare professional. The Company filed its response to the accusation and has requested a formal hearing. The Company believes the claims are frivolous and have previously and will continue to dispute all claims asserted against it and intends to vigorously defend these allegations. Nonetheless, the Company cannot predict the eventual outcome of this litigation, it could result in substantial costs, losses and a diversion of management’s resources and attention, which could harm the Company’s business and the value of its common stock.

Product and Professional Liability

Product and professional liability litigation represents an inherent risk to all firms in the pharmaceutical and pharmacy industry. The Company utilizes traditional third-party insurance policies with regard to its product and professional liability claims. Such insurance coverage at any given time reflects current market conditions, including cost and availability, when the policy is written.

John Erick et al.

In January 2018, John Erick and Deborah Ferrell, successors-in-interest and heirs of Jade Erick, (collectively “Erick”) filed a lawsuit in the San Diego County Superior against Kim Kelly, ND, MPH asserting claims related to death of Jade Erick. In April 2018, Erick filed an amendment to the lawsuit, naming the Company as a co-defendant. In September 2018, co-defendant Dr. Kelly filed a cross-complaint against the Company and various Spectrum entities. The cross-complaint seeks indemnity and contribution from the Company and Spectrum. The Company answered the claims filed by Dr. Kelly in October 2018. The case is currently in the discovery phase. The Company believe the claims are frivolous and have previously and will continue to dispute all claims asserted against it and intends to vigorously defend these allegations. Nonetheless, the Company cannot predict the eventual outcome of this litigation, it could result in substantial costs, losses and a diversion of management’s resources and attention, which could harm the Company’s business and the value of its common stock.

General and Other

In the ordinary course of business, the Company may face various claims brought by third parties and it may, from time to time, make claims or take legal actions to assert its rights, including intellectual property disputes, contractual disputes and other commercial disputes. Any of these claims could subject the Company to litigation.

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.

Klarity License Agreement – Related Party

In April 2017, the Company entered into a license agreement (the “Klarity License Agreement”) with Richard L. Lindstrom, M.D., a member of its Board of Directors. Pursuant to the terms of the Klarity License Agreement, the Company licensed certain intellectual property and related rights from Dr. Lindstrom to develop, formulate, make, sell, and sub-license the topical ophthalmic solution Klarity designed to protect and rehabilitate the ocular surface (the “Klarity Product”).

Under the terms of the Klarity License Agreement, the Company is required to make royalty payments to Dr. Lindstrom ranging from 3% to 6% of net sales, dependent upon the final formulation of the Klarity Product sold. In addition, the Company is required to make certain milestone payments to Dr. Lindstrom including: (i) an initial payment of $50 upon execution of the Klarity License Agreement, (ii) a second payment of $50 following the first $50 in net sales of the Klarity Product; and (iii) a final payment of $50 following the first $100 in net sales of the Klarity Product. All of the above referenced milestone payments were payable at the Company’s election in cash or shares of the Company’s restricted common stock. Dr. Lindstrom was paid $122 and $50 in cash during the years ended December 31, 2018 and 2017, respectively, and was due an additional $15 and $19 at December 31, 2018 and 2017, respectively. The Company incurred $118 and $183 for royalty expenses related to the Klarity License Agreement during the years ended December 31, 2018 and 2017, respectively. Dr. Lindstrom is a member of the Company’s Board of Directors.

Sales and Marketing Agreements

During 2017 and 2018, the Company entered various sales and marketing agreements with certain organizations, to provide sales and marketing representation services to ImprimisRx in select geographies in the U.S., in connection with the Company’s ophthalmic compounded formulations.

Under the terms of the sales and marketing agreements, the Company is required to make commission payments to equal to 10% - 14% of net sales for products above and beyond the initial existing sales amounts. In addition, the Company is required to make periodic milestone payments to certain organizations in shares of the Company’s restricted common stock if net sales in the assigned territory reach certain future levels by the end of their terms, as applicable. The Company accrued $42 related to stock-based payments for these agreements during the year ended December 31, 2018, and $1,511 and $183 were incurred under these agreements for commission expenses during the years ended December 31, 2018 and 2017, respectively.

Asset Purchase, License and Related Agreements

The Company has acquired and sourced intellectual property rights related to certain proprietary innovations from certain inventors and related parties (the “Inventors”) through multiple asset purchase agreements, license agreements, strategic agreements and commission agreements. In general, these 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. $245 and $108 were accrued in accounts payable and accrued expenses under these agreements during the years ended December 31, 2018 and 2017, respectively, and $561 and $153 were incurred under these agreements as royalty expenses for the years ended December 31, 2018 and 2017, respectively.

Segment Information and Concentrations

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segment Information and Concentrations

NOTE 19. 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 and drug development. While the Company is described as having certain individual businesses, in general, those business operations often overlap, decisions and resources may be intermingled between components and discrete financial information about the businesses, on an individual basis, is not available. 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 2018 and 2017 are attributed to the United States. All long-lived assets at December 31, 2018 and 2017 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, 2018 and 2017.

The Company receives its active pharmaceutical ingredients from three main suppliers during the years ended December 31, 2018 and 2017. These suppliers collectively accounted for 51% and 68% of drug and chemical purchases during the years ended December 31, 2018 and 2017, respectively.

Subsequent Events

12 Months Ended

Dec. 31, 2018

Subsequent Events [Abstract]

Subsequent Events

NOTE 20. SUBSEQUENT EVENTS

The Company has performed an evaluation of events occurring subsequent to December 31, 2018 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.

From January 1, 2019 through the date of the filing of the Annual Report, the Company issued 52,000 shares of its common stock related to the exercise of common stock warrants with an exercise price of $1.79 and received net proceeds of $93.

From January 1, 2019 through the date of the filing of the Annual Report, the Company issued 293,984 shares of its common stock related to the cashless exercise of 419,800 common stock warrants with an exercise price of $1.79.

Mayfield and Elle Pharmaceuticals

On February 1, 2019, the Company entered into an Asset Purchase Agreement (the “May Asset Purchase Agreement”) with Elle Pharmaceutical, LLC (“Elle”), where the Company acquired intellectual property and related rights from Elle to develop, formulate, make, sell, and sub-license lidocaine-based gel formulations (collectively, the “May Products”). As consideration, the Company agreed to pay Elle $25 at the time of signing the May Asset Purchase Agreement and make royalty payments to Elle up to seven and a half percent (7.5%) of net sales of the Products as compounded drug formulations.

In connection with the May Asset Purchase Agreement, the Company assigned the May Products to Mayfield, and Mayfield entered into a separate Royalty Agreement with Elle (the “Elle Royalty Agreement”). Pursuant to the terms of the Elle Royalty Agreement, Mayfield, is required to make royalty payments to Elle up to seven and a half percent (7.5%) of net sales of the May Products as commercially available drugs (e.g. a market approved drug via the U.S. Food and Drug Administration 505(b)(2) pathway), while any patent rights remain outstanding, as well as other conditions. In addition, Mayfield agreed to pay Elle $175 upon Mayfield receiving third-party financing equal to or greater than $10,000 of gross proceeds. In connection with the May Asset Purchase Agreement and Elle Royalty Agreement Mayfield issued to Elle 1,000,000 of its common stock.

Segment of Business Operations

Beginning on January 1, 2019, the Company began evaluating performance of the Company based on operating segments. Segment performance for its two operating segments will be based on segment contribution. Our reportable segments consist of (i) our commercial stage pharmaceutical compounding business (Pharmaceutical Compounding), generally including the operations of our ImprimisRx and Park Compounding businesses; and (ii) our start-up operations associated with pharmaceutical drug development business (Pharmaceutical Drug Development). Segment contribution for our segments represents net revenues less cost of sales, research and development, selling and marketing expenses, and select general and administrative expenses. The Company does not evaluate the following items at the segment level:

	●	Operating expenses within selling, general and administrative expenses that result from the impact of corporate initiatives. Corporate initiatives primarily include integration, restructuring, acquisition and other shared costs.

	●	Selling, general and administrative expenses that result from shared infrastructure, including certain expenses associated with legal matters, our board of directors and principal executive officers, investor relations and other like shared expenses.

	●	Other select revenues and operating expenses including R&D expenses, amortization, and asset sales and impairments, net as not all such information has been accounted for at the segment level, or such information has not been used by all segments.

	●	Total assets including capital expenditures.

For periods beginning on and after January 1, 2019, results of operations, including segment net revenues, segment operating expenses and segment contribution, the Company expects to present segment information in a format similar to the table below:

Pharmaceutical

Compounding

Drug Development

Total

Net revenues

Cost of sales

Gross profit

Operating expenses:

Selling, general and administrative

Research and development

Segment contribution

Corporate

Research and development

Amortization

Asset sales and impairments, net

Operating loss

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

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

Cost of Sales

Cost of Sales

Research and Development

Research and Development

Debt Issuance Costs and Debt Discount

Debt Issuance Costs and Debt Discount

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

Investment in Eton Pharmaceuticals, Inc.

Investment in Eton Pharmaceuticals, Inc.

Accounts Receivable

Accounts Receivable

Inventories

Inventories

Investment in Surface Pharmaceuticals, Inc.

Investment in Surface Pharmaceuticals, Inc.

Property, Plant and Equipment

Property, Plant 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

Third Party Billing and Collection Agreements

Third Party Billing and Collection Agreements

Deferred Rent

Deferred Rent

Fair Value Measurements

Fair Value Measurements

●	Level 1: Applies to assets or liabilities for which there are quoted prices (unadjusted) for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and must be used to measure fair value whenever available.
●	Level 2: Applies to assets or liabilities for which there are significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
●	Level 3: Applies to assets or liabilities for which there are significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. For example, Level 3 inputs would relate to forecasts of future earnings and cash flows used in a discounted future cash flows method.

Stock-Based Compensation

Stock-Based Compensation

Basic and Diluted Net Income (Loss) Per Common Share

Basic and Diluted Net Income (Loss) per Common Share

The following table shows the computation of basic net income (loss) per share of common stock for the years ended December 31, 2018 and 2017:

	For the		For the
	Year Ended		Year Ended
	December 31, 2018		December 30, 2017

Numerator – net income (loss)	$	14,625	$	(11,985	)
Denominator – weighted average number of shares outstanding, basic		21,917,570		20,027,712
Net income (loss) per share, basic	$	0.67	$	(0.60	)

	For the Year Ended
	December 31, 2018
	Shares
Diluted shares related to:		21,917,570
Warrants		1,844,272
Restricted stock units		-
Stock options		50,203
Dilutive common equivalent shares		23,812,045

	For the		For the
	Year Ended		Year Ended
	December 31, 2018		December 30, 2017

Numerator – net income (loss)	$	14,625	$	(11,985	)
Weighted average number of shares outstanding, basic		21,917,570		20,027,712
Dilutive common equivalents		1,894,475		-
Denominator – number of shares used for diluted earnings per share computation		23,812,045		20,027,712
Net income (loss) per share, diluted	$	0.61	$	(0.60	)

Reclassification

Reclassification

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, 2018

Accounting Policies [Abstract]

Schedule of Basic Earnings Per Common Share

The following table shows the computation of basic net income (loss) per share of common stock for the years ended December 31, 2018 and 2017:

	For the		For the
	Year Ended		Year Ended
	December 31, 2018		December 30, 2017

Numerator – net income (loss)	$	14,625	$	(11,985	)
Denominator – weighted average number of shares outstanding, basic		21,917,570		20,027,712
Net income (loss) per share, basic	$	0.67	$	(0.60	)

Schedule of Diluted Common Equivalent Shares

	For the Year Ended
	December 31, 2018
	Shares
Diluted shares related to:		21,917,570
Warrants		1,844,272
Restricted stock units		-
Stock options		50,203
Dilutive common equivalent shares		23,812,045

Schedule of Diluted Earnings Per Common Share

	For the		For the
	Year Ended		Year Ended
	December 31, 2018		December 30, 2017

Numerator – net income (loss)	$	14,625	$	(11,985	)
Weighted average number of shares outstanding, basic		21,917,570		20,027,712
Dilutive common equivalents		1,894,475		-
Denominator – number of shares used for diluted earnings per share computation		23,812,045		20,027,712
Net income (loss) per share, diluted	$	0.61	$	(0.60	)

Revenues (Tables)

12 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregated Revenue

Revenue disaggregated by revenue source for the year ended December 31, 2018 and 2017, consists of the following:

	For the year ended
	December 31,
	2018		2017
Product sales, net	$	41,334	$	26,684
License revenues		38		90
Total revenues	$	41,372	$	26,774

Investment in Surface Pharmaceuticals, Inc. and Agreements - Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Schedule of Condensed Income Statement

The unaudited condensed results of operations information of Surface is summarized below:

	For the Year Ended
	December 31, 2018
Revenues, net	$	-
Loss from operations		1,370
Net loss	$	(1,370	)

Schedule of Condensed Balance Sheet

The unaudited condensed balance sheet information of Surface is summarized below:

	At
	December 31, 2018
Current assets	$	19,699
Non current assets		50
Total assets		19,749

Total liabilities		165
Total stockholders equity		19,584
Total liabilities and stockholders’ equity	$	19,749

Inventories (Tables)

12 Months Ended

Dec. 31, 2018

Inventory Disclosure [Abstract]

Schedule of Inventories

The composition of inventories as of December 31, 2018 and 2017 was as follows:

	December 31, 2018		December 31, 2017
Raw materials	$	1,119	$	956
Work in progress		6		-
Finished goods		709		1,293
Total inventories	$	1,834	$	2,249

Prepaid Expenses and Other Current Assets (Tables)

12 Months Ended

Dec. 31, 2018

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

Schedule of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following:

	December 31, 2018		December 31, 2017
Prepaid insurance	$	328	$	164
Other prepaid expenses		334		426
Receivable due from Surface		50		-
Deposits and other current assets		125		124
Total prepaid expenses and other current assets	$	837	$	714

Asset Sales and Note Receivable (Tables)

12 Months Ended

Dec. 31, 2018

Asset Sales And Note Receivable

Schedule of Assets Sales and Note Receivable

Assets sold during the year ended December 31, 2017 consisted of the following:

	December 31, 2017
Inventories	$	413
Furniture and equipment		226
		639
Loss on asset sale		(127	)
Assets sold	$	512

Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

Property, plant and equipment at December 31, 2018 and 2017 consisted of the following:

	December 31, 2018			December 31, 2017
Property, plant and equipment, net:
Computer software and hardware	$	1,662		$	1,239
Furniture and equipment		397			377
Lab and pharmacy equipment		3,184			2,545
Leasehold improvements		5,496			4,810
		10,739			8,971
Accumulated depreciation and amortization		(4,364	)		(2,756	)
	$	6,375		$	6,215

Intangible Assets and Goodwill (Tables)

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

The Company’s intangible assets at December 31, 2018 consisted of the following:

	Amortization
	periods			Accumulated						Net
	(in years)	Cost		amortization			Impairment			Carrying value
Patents	17-19 years	$	755	$	(49	)	$	-		$	706
Licenses	20 years		50		-			-			50
Trademarks	Indefinite		320		-			-			320
Customer relationships	3-15 years		2,998		(1,014	)		(15	)		1,969
Trade name	5 years		16		(13	)		(1	)		2
Non-competition clause	3-4 years		294		(274	)		(20	)		-
State pharmacy licenses	25 years		45		(5	)		(28	)		12
		$	4,478	$	(1,355	)	$	(64	)	$	3,059

Schedule of Amortization Expenses for Intangible Assets

Amortization expense for intangible assets for the year ended December 31 was as follows:

	For the		For the
	Year Ended		Year Ended
	December 31, 2018		December 31, 2017
Patents	$	28	$	15
Licenses		-		-
Customer relationships		201		257
Trade name		4		3
Non-competition clause		1		87
State pharmacy licenses		2		2
	$	235	$	364

Schedule of Estimated Future Amortization Expense

Estimated future amortization expense for the Company’s intangible assets at December 31, 2018 is as follows:

Years ending December 31,
2019	$	244
2020		242
2021		242
2022		242
Thereafter		2,089
	$	3,059

Accounts Payable and Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2018

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses at December 31, 2018 and 2017 consisted of the following:

	December 31, 2018			December 31, 2017
Accounts payable	$	5,606		$	3,241
Deferred rent		388			388
Accrued interest (see Note 13)		256			256
Accrued exit fee for note payable (see Note 13)		800			800
Total accounts payable and accrued expenses		7,050			4,685
Less: Current portion		(6,250	)		(3,885	)
Non-current total accrued expenses	$	800		$	800

Debt (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Summary of Notes Payable

Notes payable at December 31, 2018 were as follows:

	December 31, 2018
SWK note	$	16,000
Less: Discount on note		(1,472	)
Less: Current portion		(2,529	)
Long-term portion	$	11,999

Summary of Future Minimum Payments

Future minimum payments under notes payable outstanding at December 31, 2018 are as follows:

	Amount
2019	$	5,018
2020		4,402
2021		4,033
2022		7,410
Total minimum payments		20,863
Less: amount representing interest		(4,863	)
Notes payable, gross		16,000
Less: unamortized discount		(1,472	)
Less: current portion, net of unamortized discount		(2,529	)
Note payable, net of current portion and unamortized debt discount	$	11,999

Capital Lease Obligation (Tables)

12 Months Ended

Dec. 31, 2018

Leases [Abstract]

Schedule of Future Payment Under Capital Lease

At December 31, 2018, future payments under the Company’s capital lease were as follows:

	Amount
2019	$	751
Total minimum lease payments		751
Less: amount representing interest payments		(15	)
Present value of future minimum lease payment		736
Less: unamortized discount		(16	)
		720
Less: current portion, net of unamortized discount		(720	)
Capital lease obligation net of current portion and unamortized discount	$	-

Stockholders' Equity and Stock-based Compensation (Tables)

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Schedule of Stock Option Plan Activity

A summary of stock option activity under the Plan for the year ended December 31, 2018 is as follows:

	Number of shares			Weighted Avg. Exercise Price		Weighted Avg. Remaining Contractual Life		Aggregate Intrinsic Value
Options outstanding - January 1, 2018		2,259,979		$	5.50
Options granted		296,500		$	1.80
Options exercised		-		$	-
Options cancelled/forfeit		(74,470	)	$	4.29
Options outstanding - December 31, 2018		2,482,009		$	5.10		5.51	$	3,990
Options exercisable		1,337,780		$	4.94		6.22	$	3,525
Options vested and expected to vest		2,368,925		$	5.09		5.53	$	3,805

Schedule of Fair Value Assumptions

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:

	2018			2017
Weighted-average fair value of options granted	$	1.42		$	2.04
Expected terms (in years)		5.77 - 6.11			5.81 - 6.11
Expected volatility		76 - 126	%		112 - 117	%
Risk-free interest rate		2.05 - 3.00	%		1.77 - 2.01	%
Dividend yield		-			-

	2017
Weighted-average fair value of warrants granted	$	1.70
Expected terms (in years)		7.00
Expected volatility		113.5	%
Risk-free interest rate		1.77	%
Dividend yield		-

Schedule of Shares Outstanding and Exercisable

The following table summarizes information about stock options outstanding and exercisable at December 31, 2018:

			Weighted
			Average		Weighted				Weighted
			Remaining		Average				Average
Range of	Number		Contractual		Exercise		Number		Exercise
Exercise Prices	Outstanding		Life in Years		Price		Exercisable		Price
$1.47 - $2.60		837,375		7.74	$	2.04		420,774	$	2.16
$3.04 - $4.50		536,622		6.97	$	3.96		415,784	$	3.98
$5.49 - $6.36		99,350		4.52	$	5.97		97,784	$	5.97
$6.64 - $8.99		1,003,632		2.98	$	7.98		398,408	$	8.16
$42.80		5,030		1.62	$	42.80		5,030	$	42.80
$1.47 - $42.80		2,482,009		5.51	$	5.10		1,337,780	$	4.94

Schedule of Restricted Stock Units Activity

A summary of the Company’s RSU activity and related information for the year ended December 31, 2017 is as follows:

	Number of RSUs			Weighted Average Grant Date Fair Value
RSUs unvested - January 1, 2017		1,292,876		$	2.43
RSUs granted		62,892			3.18
RSUs vested		(56,822	)		3.94
RSUs cancelled/forfeit		-
RSUs unvested at December 31, 2017		1,298,946		$	2.42

A summary of the Company’s RSU activity and related information for the year ended December 31, 2018 is as follows:

	Number of RSUs			Weighted Average Grant Date Fair Value
RSUs unvested - January 1, 2018		1,298,946		$	2.42
RSUs granted		136,360			2.20
RSUs vested		(159,626	)		3.94
RSUs cancelled/forfeit		-
RSUs unvested at December 31, 2018		1,275,680		$	2.16

Schedule of Stock Based Compensation Granted to Employees Directors Consultants

	For the		For the
	Year Ended		Year Ended
	December 31, 2018		December 31, 2017
Employees - selling and marketing	$	82	$	449
Employees - general and administrative		2,169		2,229
Directors - general and administrative		235		205
Consultants - selling and marketing		150		60
Total	$	2,636	$	2,943

Schedule of Warrants Activity

A summary of warrant activity during the year ended December 31, 2018 is as follows:

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

Warrants outstanding - January 1, 2018		6,264,215		$	1.91
Granted		-
Exercised		(3,941,554	)		1.79
Expired		(115,688	)		6.94
Warrants outstanding and exercisable - December 31, 2018		2,206,973		$	1.91
Weighted average remaining contractual life of the outstanding warrants in years - December 31, 2018		2.60

Schedule of Warrants Outstanding and Warrants Exercisable

All warrants outstanding as of December 31, 2018 are included in the following table:

	Warrants Outstanding				Warrants Exercisable
		Warrants		Exercise	Warrants	Expiration
Warrant Series	Issue Date	Outstanding		Price	Exercisable	Date
Lender warrants	5/11/2015	125,000	$	1.79	125,000	5/11/2025
Settlement warrants	8/16/2016	40,000	$	3.75	40,000	8/16/2021
PIPE Investor and Placement Agent Warrants	12/27/2016	1,426,587	$	1.79	1,426,587	12/27/2019
Lender warrants (see Note 13)	7/19/2017	615,386	$	2.08	615,386	7/19/2024
		2,206,973	$	1.91	2,206,973

- Definition

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

+ References + Details

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Provision for Income Taxes

	December 31, 2018			December 31, 2017
Current:
Federal	$	-		$	-
State		6			5
Total current	$	6		$	5

Deferred:
Federal	$	3,294		$	6,474
State		440			(283	)
Change in valuation allowance		(3,734	)		(7,126	)
Total deferred		-			(935	)
Income tax provision (benefit)	$	6		$	(931	)

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, 2018			December 31, 2017
U.S. federal statutory tax rate		21.00	%		35.00	%
Benefit of lower tax brackets		0.00	%		(1.00	)%
State tax benefit, net		0.04	%		1.60	%
Research and development credits		(0.14	)%		0.00	%
Employee stock-based compensation		0.46	%		(0.84	)%
Loss on debt conversion		0.00	%		(2.39	)%
Change in Rate		0.00	%		(62.97	)%
Other		0.13	%		3.04	%
Valuation allowance		(21.93	)%		34.82	%
Effective income tax rate		(0.44	)%		7.27	%

Schedule of Deferred Tax Assets and Liabilities

	December 31, 2018			December 31, 2017
Deferred tax assets (liabilities):
NOL’s	$	19,726		$	17,405
Depreciation and amortization		30			58
Other		602			351
Research & development credits		617			596
Deferred stock compensation		3,036			2,534
Basis Difference in Surface		(1,464	)		-
Basis Difference in Eton		(6,340	)		(985	)
Park stock purchase identifiable intangibles		(484	)		(501	)
Total deferred tax assets, net		15,723			19,457
Valuation allowance		(15,723	)		(19,457	)
Net deferred tax liabilities	$	-		$	-

Schedule of Change in Unrecognized Tax Benefits

A reconciliation of the change in the UTB balance from January 1, 2018 to December 31, 2017 is as follows:

		Fed & State Tax
Balance at January 1, 2018	$	-
Additions for tax positions related to current year		-
Additions/(reductions) for tax positions related to prior years		-

Balance at December 31, 2018		-

Total unrecognized tax benefits as of December 31, 2018	$	-

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Payments Under Leases

The following represents future annual minimum lease payments, as of December 31, 2018:

2019	$	797
2020		857
2021		742
2022		320
2023		330
2024		196
Total	$	3,242

Subsequent Events (Tables)

12 Months Ended

Dec. 31, 2018

Subsequent Events [Abstract]

Schedule of Operating Segment

Pharmaceutical

Compounding

Drug Development

Total

Net revenues

Cost of sales

Gross profit

Operating expenses:

Selling, general and administrative

Research and development

Segment contribution

Corporate

Research and development

Amortization

Asset sales and impairments, net

Operating loss

Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended				12 Months Ended
	Nov. 30, 2018	Jul. 31, 2018	May 31, 2018	Jun. 30, 2017	Dec. 31, 2018	Dec. 31, 2017
Loss from operations					$ (5,217)	$ (12,163)
Accumulated deficit					(74,211)	(88,836)
Net cash used in operating activities					687	(8,803)
Cash resources and restricted investments, marketable securities					28,258
FDIC insured amount					250
Stock issed during period value						2,940
Accounts receivable, net of allowance for doubtful accounts					$ 270	$ 275
Intangible assets estimated useful life					20 years
Antidilutive securities					22,539,793	20,027,712
Restricted cash					$ 200	$ 200
Right of use asset					2,106
Lease liability					$ 2,624
Restricted Stock Units [Member]
Number of shares issued					99,626
Number of shares vested during the period					236,693	137,067
Deferred Acquisition Obligations, Convertible Note Payable, Stock Options, Unvested RSUs and Warrants [Member]
Antidilutive securities					6,201,355	9,980,454
Billing and Collection Agreement [Member] \| Third Party [Member]
Percentage of billing and collection amount					55.00%
Billing and collection management expense					$ 1	$ 0
Due to related party					$ 25	41
Minimum [Member]
Property and equipment estimated useful life					3 years
Maximum [Member]
Property and equipment estimated useful life					5 years
Surface Series A Stock [Member]
Proceeds from issuance of preferred stock		$ 21,000	$ 21,000
Eton Pharmaceuticals, Inc. [Member]
Gain on deconsolidation amount				$ 5,725
Investment gain loss					$ 3,507	$ 2,218
Ownership percentage					19.98%
Share purchase price					$ 6.12
Gain on investment					$ 17,913
Loss on investment					3,507
Fair market value of investments					$ 21,420
Number of shares owned					3,500,000
Eton Pharmaceuticals, Inc. [Member] \| IPO [Member]
Number of shares issued	4,140,000
Stock issed price per shares	$ 6
Stock issed during period value	$ 24,800
Surface Pharmaceuticals Inc [Member]
Loss from operations					$ 1,370
Gain on deconsolidation amount					$ 5,320
Ownership percentage					30.00%
Gain on investment					$ 4,947
Loss on investment					373
Fair market value of investments					$ 4,947
Number of shares owned					3,500,000
Surface Pharmaceuticals Inc [Member] \| Surface Series A Stock [Member]
Share purchase price					$ 3.30

Summary of Significant Accounting Policies - Schedule of Basic Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Numerator - net income (loss)	$ 14,625	$ (11,985)
Denominator - weighted average number of shares outstanding, basic	21,917,570	20,027,712
Net loss per share, basic	$ 0.67	$ (0.60)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

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

+ References + Details

Summary of Significant Accounting Policies - Schedule of Diluted Common Equivalent Shares (Details)	12 Months Ended
	Dec. 31, 2018 shares
Dilutive common equivalent shares	23,812,045
Stock Option [Member]
Dilutive common equivalent shares	50,203
Restricted Stock Units [Member]
Dilutive common equivalent shares
Warrant [Member]
Dilutive common equivalent shares	1,844,272

Summary of Significant Accounting Policies - Schedule of Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Numerator - net income (loss)	$ 14,625	$ (11,985)
Weighted average number of shares outstanding, basic	21,917,570	20,027,712
Dilutive common equivalents	1,894,475
Denominator - number of shares used for diluted earnings per share computation	23,812,045	20,027,712
Net income (loss) per share, diluted	$ 0.61	$ (0.60)

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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- Definition

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

+ References + Details

Revenues (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Revenue from Contract with Customer [Abstract]
Deferred revenue and customer deposits	$ 119	$ 29

Revenue - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Total Revenues	$ 41,372	$ 26,774
Product Sales, Net [Member]
Total Revenues	41,334	26,684
License Revenues [Member]
Total Revenues	$ 38	$ 90

Investment in Eton Pharmaceuticals, Inc. and Agreements - Related Party Transactions (Details Narrative) - Eton Pharmaceuticals, Inc. [Member] - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	12 Months Ended
	May 02, 2017	May 31, 2017	Dec. 31, 2018
Number of shares owned			3,500,000
Share purchase price			$ 6.12
Carry value of investments			$ 21,420
Ownership percentage			19.98%
Eton License Agreements [Member]
Royalty payment percentage on net sales		6.00%
Royalty payment percentage on net sales patent claims not issued		3.00%
Payment on issuances of patent		$ 50
Proceeds from sale of equity securities			$ 10,000
Management Services Agreement [Member]
Monthly payment	$ 10
Amount paid for services	$ 40

Investment in Surface Pharmaceuticals, Inc. and Agreements - Related Party Transactions (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2018	Dec. 31, 2018
Surface Pharmaceuticals Inc [Member]
Number of shares owned		3,500,000
Ownership percentage		30.00%
Surface Pharmaceuticals Inc [Member] \| Dr. Lindstrom [Member]
Royalty payment percentage on net sales		3.00%
Surface License Agreements [Member]
Royalty payment description		Surface is required to make royalty payments to the Company of four to six percent (4%-6%) of net sales of the Surface Products while any patent rights remain outstanding.
Proceeds from the sale of equity securities		$ 10,000
Management Services Agreement [Member] \| Surface Pharmaceuticals Inc [Member]
Administrative expenses	$ 10
Reimbursable expenses due		$ 50

Investment in Surface Pharmaceuticals, Inc. and Agreements - Related Party Transactions - Schedule of Condensed Income Statement (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Revenues, net	$ 41,372	$ 26,774
Loss from operations	(5,217)	(12,163)
Net loss	14,625	$ (11,985)
Surface Pharmaceuticals Inc [Member]
Revenues, net
Loss from operations	1,370
Net loss	$ (1,370)

- Definition

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

+ References + Details

Investment in Surface Pharmaceuticals, Inc. and Agreements - Related Party Transactions - Schedule of Condensed Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current assets	$ 32,843	$ 8,806
Total assets	49,451	23,917
Total liabilities	24,700	21,302
Total stockholders' equity	24,751	2,615	$ 6,432
Total liabilities and stockholders' equity	49,451	$ 23,917
Surface Pharmaceuticals Inc [Member]
Current assets	19,699
Non current assets	50
Total assets	19,749
Total liabilities	165
Total stockholders' equity	19,584
Total liabilities and stockholders' equity	$ 19,749

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold or consumed after one year or beyond the normal operating cycle, if longer.

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-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(14))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(10))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

+ Details

Restricted Cash (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Cash and Cash Equivalents [Abstract]
Restricted cash	$ 200	$ 200

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 1,119	$ 956
Work in progress	6
Finished goods	709	1,293
Total inventories	$ 1,834	$ 2,249

Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid insurance	$ 328	$ 164
Other prepaid expenses	334	426
Receivable due from Surface	50
Deposits and other current assets	125	124
Total prepaid expenses and other current assets	$ 837	$ 714

Asset Sales and Note Receivable (Details Narrative) - USD ($) $ in Thousands		1 Months Ended		12 Months Ended
	Jun. 27, 2017	Jun. 30, 2017	Feb. 28, 2017	Dec. 31, 2018	Dec. 31, 2017	Feb. 28, 2018
Loss on sale of assets				$ 393	$ 354
Pharmacy Solutions Central, LLC [Member]
Payment to closing cash amount	$ 410
Debt interest rate	6.00%
Debt monthly payment	$ 10
Debt annual principal payment	462
Pharmacy Solutions Central, LLC [Member] \| December 31, 2017 [Member]
Debt monthly payment	365
Imprimis TX [Member]
Loss on sale of assets					173
Asset Purchase Agreement [Member]
Note due amount					397
Loss on sale of assets				$ 393	69
Loss from sale of equipment		$ 60
Loss on equipment					$ 52
Asset Purchase Agreement [Member] \| Pharmacy Solutions Central, LLC [Member]
Total purchase price	450
Payment to closing cash amount	$ 40
Stock Purchase Agreement [Member] \| Livernois [Member]
Sale of stock percentage			100.00%
Payment of consideration amount			$ 10
Lease obligation						$ 113

Asset Sales and Note Receivable - Schedule of Assets Sales and Note Receivable (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Asset Sales And Note Receivable
Inventories	$ 413
Furniture and equipment	226
Asset held for sale	639
Loss on asset sale	(127)
Assets sold	$ 512

Property, Plant and Equipment (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Depreciation and amortization of property, plant and equipment	$ 1,608	$ 1,401

Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Computer software and hardware	$ 1,662	$ 1,239
Furniture and equipment	397	377
Lab and pharmacy equipment	3,184	2,545
Leasehold improvements	5,496	4,810
Property, plant and equipment, gross	10,739	8,971
Accumulated depreciation and amortization	(4,364)	(2,756)
Property, plant and equipment, Net	$ 6,375	$ 6,215

Intangible Assets and Goodwill - Schedule of Intangible Assets (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)
Amortization periods (in years)	20 years
Cost	$ 4,478
Accumulated amortization	(1,355)
Impairment	(64)
Net Carrying value	3,059
Patents [Member]
Cost	755
Accumulated amortization	(49)
Impairment
Net Carrying value	$ 706
Patents [Member] \| Minimum [Member]
Amortization periods (in years)	17 years
Patents [Member] \| Maximum [Member]
Amortization periods (in years)	19 years
Licenses [Member]
Amortization periods (in years)	20 years
Cost	$ 50
Accumulated amortization
Impairment
Net Carrying value	$ 50
Trademarks [Member]
Amortization periods description	Indefinite
Cost	$ 320
Accumulated amortization
Impairment
Net Carrying value	320
Customer Relationships [Member]
Cost	2,998
Accumulated amortization	(1,014)
Impairment	(15)
Net Carrying value	$ 1,969
Customer Relationships [Member] \| Minimum [Member]
Amortization periods (in years)	3 years
Customer Relationships [Member] \| Maximum [Member]
Amortization periods (in years)	15 years
Trade Name [Member]
Amortization periods (in years)	5 years
Cost	$ 16
Accumulated amortization	(13)
Impairment	(1)
Net Carrying value	2
Non-Competition Clause [Member]
Cost	294
Accumulated amortization	(274)
Impairment	(20)
Net Carrying value
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
Cost	$ 45
Accumulated amortization	(5)
Impairment	(28)
Net Carrying value	$ 12

Intangible Assets and Goodwill - Schedule of Amortization Expenses for Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Amortization of intangible assets	$ 235	$ 364
Patents [Member]
Amortization of intangible assets	28	15
Licenses [Member]
Amortization of intangible assets
Customer Relationships [Member]
Amortization of intangible assets	201	257
Trade Name [Member]
Amortization of intangible assets	4	3
Non-Competition Clause [Member]
Amortization of intangible assets	1	87
State Pharmacy Licenses [Member]
Amortization of intangible assets	$ 2	$ 2

Intangible Assets and Goodwill - Schedule of Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
2019	$ 244
2020	242
2021	242
2022	242
Thereafter	2,089
Intangible assets	$ 3,059	$ 2,860

Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Accounts payable	$ 5,606	$ 3,241
Deferred rent	388	388
Accrued interest	256	256
Accrued exit fee for note payable	800	800
Total accounts payable and accrued expenses	7,050	4,685
Less: Current portion	(6,250)	(3,885)
Non-current total accrued expenses	$ 800	$ 800

Debt (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		12 Months Ended
	Aug. 31, 2017	Jul. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Principal amount of loan			$ 23,459
Percentage of loan agreement prepayment fee				1.00%
Loan due date			May 11, 2021
Loss on extinguishment				$ (884)
Liability of final fee included in accrued expenses			800	800
Fair value warrant adjustments			$ 982
Fair value assumptions, measurement input, per share			$ 2.08
Amortization of debt discount			$ 520	$ 811
Warrant [Member]
Warrant exercise price per share			$ 1.91
Expected Term [Member] \| Warrant [Member]
Fair value assumptions, measurement input, term	7 years
Volatility [Member] \| Warrant [Member]
Fair value assumptions, measurement input, percentages	113.50%
Dividend Rate [Member] \| Warrant [Member]
Fair value assumptions, measurement input, percentages	0.00%
Risk Free Interest Rate [Member] \| Warrant [Member]
Fair value assumptions, measurement input, percentages	1.77%
Lender Warrants [Member]
Warrant to purchase of common stock		415,586
Warrant exercise price per share		$ 3.08
Warrant term		7 years
SWK Warrants [Member]
Warrant to purchase of common stock	615,386
Warrant exercise price per share	$ 2.08
London Inter-Bank Offered Rate [Member]
Loan bear interest		10.50%
Maximum [Member] \| London Inter-Bank Offered Rate [Member]
Loan bear interest		3.00%
Minimum [Member] \| London Inter-Bank Offered Rate [Member]
Loan bear interest		1.50%
Loan Agreement [Member] \| Life Sciences Alternative Funding LLC [Member]
Principal amount of loan					$ 10,000	$ 10,000
Loan bear interest					12.50%	12.50%
Loans bear interest rate description					The term loan bore interest at a fixed per-annum rate of 12.5% and allowed for 2% of the interest to be paid-in-kind until December 2016. The Loan Agreement included a final fee of 5% of the aggregate principal amount of the term loan and prepayment fees of up to 1% of the principal balance were due on January 1, 2019.	The term loan bore interest at a fixed per-annum rate of 12.5% and allowed for 2% of the interest to be paid-in-kind until December 2016. The Loan Agreement included a final fee of 5% of the aggregate principal amount of the term loan and prepayment fees of up to 1% of the principal balance were due on January 1, 2019.
Percentage of loan agreement final fee					5.00%	5.00%
Loan due date					Jan. 01, 2019	Jan. 01, 2019
Warrant to purchase of common stock					125,000	125,000
Debt principal amount			$ 13,332
Incurred expense debt						$ 1,066
Loan Agreement [Member] \| Life Sciences Alternative Funding LLC [Member] \| Maximum [Member]
Percentage of loan agreement prepayment fee						1.00%
SWK Loan Agreement [Member]
Debt principal amount		$ 16,000
Loan agreement term		5 years
Repayment of debt		$ 750
Debt due date description		All amounts owed under the SWK Loan Agreement, including a final fee equal to 5% of the aggregate principal amount loaned thereunder, will be due and payable on July 19, 2022. The Company may elect to prepay all, but not less than all, of the amounts owed under the SWK Loan Agreement prior to the maturity date at any time after July 19, 2019.
Incurred expense debt			$ 1,282
LSAF Loan [Member]
Debt principal amount		$ 13,999

Debt - Summary of Notes Payable (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Less: Discount on notes	$ (16)
Less: Current portion	(2,529)
Long-term portion	11,999	$ 14,008
Notes Payable [Member]
SWK note	16,000
Less: Discount on notes	(1,472)
Less: Current portion	(2,529)
Long-term portion	$ 11,999

Debt - Summary of Future Minimum Payments (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Total minimum payments	$ 23,459
Less: unamortized discount	(16)
Less: current portion, net of unamortized discount	(2,529)
Note payable, net of current portion and unamortized debt discount	11,999	$ 14,008
Note Payable [Member]
2019	5,018
2020	4,402
2021	4,033
2022	7,410
Total minimum payments	20,863
Less: amount representing interest	(4,863)
Notes payable, gross	16,000
Less: unamortized discount	(1,472)
Less: current portion, net of unamortized discount	(2,529)
Note payable, net of current portion and unamortized debt discount	$ 11,999

Capital Lease Obligation (Details Narrative) - USD ($) $ in Thousands		12 Months Ended
	Aug. 09, 2016	Dec. 31, 2018	Dec. 31, 2017
Property and equipment purchase price		$ 1,768	$ 772
Debt discount amortization		520	811
Capital leases of equipment		2,070	2,070
Capital leases of accumulated depreciation		729	444
Lease Agreement [Member]
Property and equipment purchase price	$ 2,000	2,000
Lease monthly payments	$ 64
Lease future payment		300
Lease incurred expenses		$ 67
Capital lease future minimum payments percentage		16.80%
Debt discount amortization		$ 93	$ 167

Capital Lease Obligation - Schedule of Future Payment Under Capital Lease (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Leases [Abstract]
2019	$ 751
Total minimum lease payments	751
Less: amount representing interest payments	(15)
Present value of future minimum lease payment	736
Less: unamortized discount	(16)
Present value of future net minimum lease payments	720
Less: current portion, net of unamortized discount	(720)	$ (598)
Capital lease obligation net of current portion and unamortized discount		$ 720

Stockholders' Equity and Stock-based Compensation (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended						9 Months Ended	12 Months Ended
	Feb. 28, 2018	Dec. 31, 2018	Mar. 31, 2018	Jan. 31, 2018	Apr. 30, 2017	Mar. 31, 2017	Nov. 30, 2015	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Jul. 10, 2018
Common stock, shares authorized		50,000,000							50,000,000	90,000,000
Common stock, par value		$ 0.001							$ 0.001	$ 0.001
Proceeds from issuance of warrant									$ 4,233	$ 179
Shares issued of restricted common stock, shares		15,000	35,427	25,273
Accrued royalty expense			$ 64	$ 44
Fair value of restricted common stock issued		$ 42
Preferred stock, shares authorized		5,000,000							5,000,000	5,000,000
Preferred stock, par value		$ 0.001							$ 0.001	$ 0.001
Preferred stock, shares issued
Preferred stock, shares outstanding
Stock-based compensation									$ 2,486	$ 2,943
2017 Incentive Stock and Awards Plan [Member]
Maximum number of common stock issuance under the plan		2,000,000							2,000,000
Number of shares available for sales		1,572,640							1,572,640
Restricted Stock [Member]
Number of shares issued investor relations related services						25,000
Number of shares issued investor relations related services, value						$ 60
Number of common stock issued for warrant exercises					100,000
Proceeds from issuance of warrant					$ 179
Warrants exercise price					$ 1.79
Restricted Stock Units [Member]
Number of shares issued									99,626
Shares issued of restricted common stock, shares										56,822
Stock Option Plan [Member]
Closing price of common stock price per share		$ 5.69							$ 5.69
Forfeiture factor, percentage									10.00%
Unrecognized compensation expense related to unvested stock options granted under the plan		$ 1,888							$ 1,888
Expense expected to recognize over the weighted-average remaining vesting period									1 year 10 months 25 days
Stock-based compensation									$ 1,317	$ 1,672
Unvested RSUs [Member]
Unrecognized compensation expense related to unvested stock options granted under the plan		$ 441							$ 441
Expense expected to recognize over the weighted-average remaining vesting period									1 month 6 days
Stock-based compensation									$ 1,149	$ 1,211
Andrew R. Boll [Member] \| Restricted Stock Units [Member]
Shares issued of restricted common stock, shares	30,000
John P. Saharek [Member] \| Restricted Stock Units [Member]
Shares issued of restricted common stock, shares	30,000
Employees and Consultants [Member] \| Stock Option Plan [Member]
Stock options granted vesting terms									Vesting terms for options granted in 2018 and 2017 to employees 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. 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.
Employees and Consultants [Member] \| Stock Option Plan [Member] \| Minimum [Member]
Stock options granted with exercise price contractual terms									5 years
Employees and Consultants [Member] \| Stock Option Plan [Member] \| Maximum [Member]
Stock options granted with exercise price contractual terms									10 years
Non Employee Directors [Member] \| Restricted Stock Units [Member]
Shares issued of restricted common stock, shares									136,360	62,892
Fair value of restricted common stock issued									$ 300	$ 200
Stock options granted vesting terms									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.
Consultants, Employees and Directors [Member]
Stock-based compensation									$ 21
Common Stock Warrants [Member]
Number of shares issued									2,364,889
Proceeds from issuance of warrant									$ 4,233
Warrants exercise price		$ 1.79							$ 1.79
Common Stock Warrant One [Member]
Number of shares issued									910,273
Warrants exercise price		$ 1.79							$ 1.79
Number of warrants exercised									1,576,665
Amended and Restated Certificate of Incorporation [Member] \| Previously Authorized Shares [Member]
Common stock, shares authorized											90,000,000
Securities Purchase Agreements [Member] \| Two Accredited Investors [Member]
Number of shares issued						1,312,500
Price per share						$ 2.40
Net proceeds of registered offering						$ 2,940
Gross proceeds, percentage						6.00%
Sales Agreement [Member]
Number of shares sold under the agreement								305,619
Proceeds from sale of common stock approximately								$ 642
Sales commission and offering expenses								$ 20
Sales Agreement [Member] \| Cantor Fitzgerald & Co [Member]
Cash commission, percentage							3.00%
Number of shares sold under the agreement										557,714
Proceeds from sale of common stock approximately										$ 1,124
Sales commission and offering expenses										$ 35

Stockholders' Equity and Stock-based Compensation - Schedule of Stock Option Plan Activity (Details) - Stock Option Plan [Member] $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) $ / shares shares
Number of shares, Outstanding, Beginning balance \| shares	2,259,979
Number of shares, Options granted \| shares	296,500
Number of shares, Options exercised \| shares
Number of shares, Options cancelled/forfeit \| shares	(74,470)
Number of shares, Outstanding, Ending balance \| shares	2,482,009
Number of shares, Options exercisable \| shares	1,337,780
Number of shares, Options vested and expected to vest \| shares	2,368,925
Weighted Avg. Exercise Price, Outstanding, Beginning balance \| $ / shares	$ 5.50
Weighted Avg. Exercise Price, Options granted \| $ / shares	1.80
Weighted Avg. Exercise Price, Options exercised \| $ / shares
Weighted Avg. Exercise Price, Options cancelled/forfeit \| $ / shares	4.29
Weighted Avg. Exercise Price, Outstanding, Ending balance \| $ / shares	5.10
Weighted Avg. Exercise Price, Exercisable Ending Balance \| $ / shares	4.94
Weighted Avg. Exercise Price, Vested and expected to vest \| $ / shares	$ 5.09
Weighted Avg. Remaining Contractual Life, Options outstanding	5 years 6 months 3 days
Weighted Avg. Remaining Contractual Life, Options exercisable	6 years 2 months 19 days
Weighted Avg. Remaining Contractual Life, Options vested and expected to vest	5 years 6 months 10 days
Aggregate Intrinsic Value, Options outstanding \| $	$ 3,990
Aggregate Intrinsic Value, Options exercisable \| $	3,525
Aggregate Intrinsic Value, Options vested and expected to vest \| $	$ 3,805

Stockholders' Equity and Stock-based Compensation - Schedule of Fair Value Assumptions (Details) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Warrant [Member]
Weighted-average fair value of options granted		$ 1.70
Expected terms (in years)		7 years
Expected volatility		113.50%
Risk-free interest rate		1.77%
Dividend yield
Options Granted to Employees [Member]
Weighted-average fair value of options granted	$ 1.42	$ 2.04
Expected volatility, minimum	76.00%	112.00%
Expected volatility, maximum	126.00%	117.00%
Risk-free interest rate, minimum	2.05%	1.77%
Risk-free interest rate, maximum	3.00%	2.01%
Dividend yield
Options Granted to Employees [Member] \| Minimum [Member]
Expected terms (in years)	5 years 9 months 7 days	5 years 9 months 22 days
Options Granted to Employees [Member] \| Maximum [Member]
Expected terms (in years)	6 years 1 month 9 days	6 years 1 month 9 days

Stockholders' Equity and Stock-based Compensation - Schedule of Shares Outstanding and Exercisable (Details)	12 Months Ended
	Dec. 31, 2018 $ / shares shares
Range of Exercise Prices, minimum	$ 1.47
Range of Exercise Prices, maximum	$ 42.80
Number of Options Outstanding \| shares	2,482,009
Weighted Average Remaining Contractual Life in Years	5 years 6 months 3 days
Weighted Average Exercise Price	$ 5.10
Number Exercisable \| shares	1,337,780
Weighted Average Exercisable Exercise Price	$ 4.94
Range One [Member]
Range of Exercise Prices, minimum	1.47
Range of Exercise Prices, maximum	$ 2.60
Number of Options Outstanding \| shares	837,375
Weighted Average Remaining Contractual Life in Years	7 years 8 months 26 days
Weighted Average Exercise Price	$ 2.04
Number Exercisable \| shares	420,774
Weighted Average Exercisable Exercise Price	$ 2.16
Range Two [Member]
Range of Exercise Prices, minimum	3.04
Range of Exercise Prices, maximum	$ 4.50
Number of Options Outstanding \| shares	536,622
Weighted Average Remaining Contractual Life in Years	6 years 11 months 19 days
Weighted Average Exercise Price	$ 3.96
Number Exercisable \| shares	415,784
Weighted Average Exercisable Exercise Price	$ 3.98
Range Three [Member]
Range of Exercise Prices, minimum	5.49
Range of Exercise Prices, maximum	$ 6.36
Number of Options Outstanding \| shares	99,350
Weighted Average Remaining Contractual Life in Years	4 years 6 months 7 days
Weighted Average Exercise Price	$ 5.97
Number Exercisable \| shares	97,784
Weighted Average Exercisable Exercise Price	$ 5.97
Range Four [Member]
Range of Exercise Prices, minimum	6.64
Range of Exercise Prices, maximum	$ 8.99
Number of Options Outstanding \| shares	1,003,632
Weighted Average Remaining Contractual Life in Years	2 years 11 months 23 days
Weighted Average Exercise Price	$ 7.98
Number Exercisable \| shares	398,408
Weighted Average Exercisable Exercise Price	$ 8.16
Range Five [Member]
Range of Exercise Prices, minimum	$ 42.80
Number of Options Outstanding \| shares	5,030
Weighted Average Remaining Contractual Life in Years	1 year 7 months 13 days
Weighted Average Exercise Price	$ 42.80
Number Exercisable \| shares	5,030
Weighted Average Exercisable Exercise Price	$ 42.80

Stockholders' Equity and Stock-based Compensation - Schedule of Restricted Stock Units Activity (Details) - Restricted Stock Units [Member] - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Number of RSUs unvested, Outstanding, Beginning balance	1,298,946	1,292,876
Number of RSUs granted	136,360	62,892
Number of RSUs vested	(159,626)	(56,822)
Number RSUs cancelled/forfeit
Number of RSUs unvested, Outstanding, Ending balance	1,275,680	1,298,946
Weighted Average Grant Date Fair Value, Beginning balance	$ 2.42	$ 2.43
Weighted Average Grant Date Fair Value, RSUs granted	2.20	3.18
Weighted Average Grant Date Fair Value, RSUs vested	3.94	3.94
Weighted Average Grant Date Fair Value, Ending balance	$ 2.16	$ 2.42

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, 2018	Dec. 31, 2017
Stock based compensation related to equity instruments granted to related parties	$ 2,636	$ 2,943
Employees [Member] \| Selling and Marketing [Member]
Stock based compensation related to equity instruments granted to related parties	82	449
Employees [Member] \| General and Administrative [Member]
Stock based compensation related to equity instruments granted to related parties	2,169	2,229
Directors [Member] \| General and Administrative [Member]
Stock based compensation related to equity instruments granted to related parties	235	205
Consultants [Member] \| Selling and Marketing [Member]
Stock based compensation related to equity instruments granted to related parties	$ 150	$ 60

Stockholders' Equity and Stock-based Compensation - Schedule of Warrants Activity (Details) - Warrant [Member]	12 Months Ended
	Dec. 31, 2018 $ / shares shares
Number of Shares Subject to Warrants, Outstanding, beginning balance	6,264,215
Number of Shares Subject to Warrants Outstanding, Granted
Number of Shares Subject to Warrants Outstanding, Exercised	(3,941,554)
Number of Shares Subject to Warrants Outstanding, Expired	(115,688)
Number of Shares Subject to Warrants, Outstanding, ending balance	2,206,973
Weighted average remaining contractual life of the outstanding warrants in years	2 years 7 months 6 days
Weighted avg. Exercise Price, outstanding, beginning balance \| $ / shares	$ 1.91
Weighted avg. Exercise Price, exercised \| $ / shares	1.79
Weighted avg. Exercise Price, expired \| $ / shares	6.94
Weighted avg. Exercise Price, outstanding and exercisable, ending balance \| $ / shares	$ 1.91

Stockholders' Equity and Stock-based Compensation - Schedule of Warrants Outstanding and Warrants Exercisable (Details)	12 Months Ended
	Dec. 31, 2018 $ / shares shares
Warrant [Member]
Warrants Outstanding	2,206,973
Exercise Price \| $ / shares	$ 1.91
Warrants Exercisable	2,206,973
Lender Warrants [Member]
Issue Date	May 11, 2015
Warrants Outstanding	125,000
Exercise Price \| $ / shares	$ 1.79
Warrants Exercisable	125,000
Expiration Date	May 11, 2025
Settlement Warrants [Member]
Issue Date	Aug. 16, 2016
Warrants Outstanding	40,000
Exercise Price \| $ / shares	$ 3.75
Warrants Exercisable	40,000
Expiration Date	Aug. 16, 2021
PIPE Investor and Placement Agent Warrants [Member]
Issue Date	Dec. 27, 2016
Warrants Outstanding	1,426,587
Exercise Price \| $ / shares	$ 1.79
Warrants Exercisable	1,426,587
Expiration Date	Dec. 27, 2019
Lender Warrants One [Member]
Issue Date	Jul. 19, 2017
Warrants Outstanding	615,386
Exercise Price \| $ / shares	$ 2.08
Warrants Exercisable	615,386
Expiration Date	Jul. 19, 2024

Income Taxes (Details Narrative) - USD ($) $ in Thousands		12 Months Ended
Income Taxes (Details Narrative) - USD ($) $ in Thousands	Dec. 27, 2017	Dec. 31, 2018	Dec. 31, 2017
Deferred tax asset valuation allowance	$ 8,059	$ 3,700	$ 7,100
Federal net operating loss carryforwards		$ 67,463
Federal research and development tax credits expiration date		2026
Federal research and development tax credits		$ 375
State net operating loss carryforwards		$ 64,629
State net operating loss expiration date		2017
State research and development tax credits		$ 305
Corporate tax rate, percentage		0.00%	(62.97%)
Minimum [Member] \| Tax Reform [Member]
Corporate tax rate, percentage	21.00%

Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Current: Federal
Current: State	6	5
Total current	6	5
Deferred: Federal	3,294	6,474
Deferred: State	440	(283)
Deferred: Change in valuation allowance	(3,734)	(7,126)
Total deferred		(935)
Income tax provision (benefit)		$ (935)

Income Taxes - Schedule of Income Tax Reconciliation (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
U.S. federal statutory tax rate	21.00%	35.00%
Benefit of lower tax brackets	0.00%	(1.00%)
State tax benefit, net	0.04%	1.60%
Research and development credits	(0.14%)	(0.00%)
Employee stock based compensation	0.46%	(0.84%)
Loss on debt conversion	0.00%	(2.39%)
Change in Rate	0.00%	(62.97%)
Other	0.13%	3.04%
Valuation allowance	(21.93%)	34.82%
Effective income tax rate	(0.44%)	7.27%

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
NOL's	$ 19,726	$ 17,405
Depreciation and amortization	30	58
Other	602	351
Research & development credits	617	596
Deferred stock compensation	3,036	2,534
Basis Difference in Surface	(1,464)
Basis Difference in Eton	(6,340)	(985)
Park stock purchase identifiable intangibles	(484)	(501)
Total deferred tax assets, net	15,723	19,457
Valuation allowance	(15,723)	(19,457)
Net deferred tax liabilities

Income Taxes - Schedule of Change in Unrecognized Tax Benefits (Details)	12 Months Ended
	Dec. 31, 2018 USD ($)
Income Tax Disclosure [Abstract]
UTB, Beginning balance
Additions for tax positions related to current year
Additions/(reductions) for tax positions related to prior years
UTB, Ending balance

Employee Savings Plan (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Retirement Benefits [Abstract]
Percentage of salary deposits in tax deferred investment account	100.00%	100.00%
Percentage of contributions made by the company	4.00%	4.00%
Contributions by the company	$ 248	$ 288

Commitments and Contingencies (Details Narrative) $ in Thousands		1 Months Ended					12 Months Ended
	May 31, 2017 USD ($) ft²	Mar. 31, 2018 USD ($)	Jan. 31, 2018 USD ($)	Apr. 30, 2017 USD ($)	Feb. 28, 2015 USD ($) ft²	Jan. 31, 2015 USD ($) ft²	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Sep. 30, 2018 ft²	Jul. 31, 2017 ft²	May 31, 2014 ft²
Lease agreement for office space (square feet) \| ft²	10,200
Operating lease, monthly rental							$ 725	$ 649
Operating lease, rent increase percentage	3.00%
Accrued expenses							800	800
Royalty payments		$ 64	$ 44
Stock based payments							2,486	2,943
Accounts payable and accrued expenses							245	108
Incurred royalty expenses							561	153
February 2019 [Member]
Damages in lawsuit							640
February 2019 [Member] \| Maximum [Member]
Damages in lawsuit							$ 1,400
Lease Agreement [Member]
Lease agreement for office space (square feet) \| ft²					8,600				9,400	7,000	7,565
Operating lease, monthly rental					$ 25
Operating lease, rent increase percentage					3.75%
Operating lease expiry					Jul. 31, 2024		Dec. 31, 2021
Operating lease expiration, description					extended 10 additional years beyond the stated expiration date.		extend the lease through December 31, 2027.
Amended Lease Agreement [Member]
Lease agreement for office space (square feet) \| ft²	2,635
Operating lease, monthly rental	$ 29
Commercial Lease Agreement [Member]
Lease agreement for office space (square feet) \| ft²						4,500
Operating lease, monthly rental						$ 10
Operating lease, rent increase percentage						3.00%
Operating lease expiry						Dec. 31, 2020
Operating lease expiration, description						extended 10 additional years beyond the stated expiration date.
Settlement Agreement [Member]
Accrued expenses							$ 640
Klarity License Agreement [Member] \| Richard L. Lindstrom, M.D [Member]
Royalty payment description				The Company is required to make royalty payments to Dr. Lindstrom ranging from 3% to 6% of net sales, dependent upon the final formulation of the Klarity Product sold.
License Agreement [Member]
Royalty payments							118	183
License Agreement [Member] \| Richard L. Lindstrom, M.D [Member]
Royalty payments							15	19
License Agreement [Member] \| Initial Payment [Member] \| Richard L. Lindstrom, M.D [Member]
Royalty payments				$ 50
License Agreement [Member] \| Second Payment [Member] \| Richard L. Lindstrom, M.D [Member]
Royalty payments				50
Net sales				50
License Agreement [Member] \| Final Payment [Member] \| Richard L. Lindstrom, M.D [Member]
Royalty payments				50			122	50
Net sales				$ 100
Sales and Marketing Agreements [Member]
Stock based payments							42
Commission expense incurred							$ 1,511	$ 183
Sales and Marketing Agreements [Member] \| Maximum [Member]
Commission payments, percentage							14.00%	14.00%
Sales and Marketing Agreements [Member] \| Minimum [Member]
Commission payments, percentage							10.00%	10.00%

Commitments and Contingencies - Schedule of Future Payments Under Leases (Details) $ in Thousands	Dec. 31, 2018 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2019	$ 797
2020	857
2021	742
2022	320
2023	330
2024	196
Total	$ 3,242

Segment Information and Concentrations (Details Narrative) - Segment	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Number of reportable segment	1
Maximum percentage of sales derived from large number of customer	10.00%	10.00%
Three Main Suppliers [Member]
Percentage of drug and chemical purchases from three main suppliers	51.00%	68.00%

Subsequent Events (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		2 Months Ended	12 Months Ended
	Mar. 31, 2018	Jan. 31, 2018	Mar. 12, 2019	Dec. 31, 2018	Dec. 31, 2017
Net proceeds from issuance of common stock				$ 642	$ 1,124
Payments for Royalty	$ 64	$ 44
Subsequent Event [Member]
Number of shares issued			52,000
Common stock issued exercise price per share			$ 1.79
Net proceeds from issuance of common stock			$ 93
Subsequent Event [Member] \| May Asset Purchase Agreement [Member] \| Elle Pharmaceutical, LLC [Member]
Payment to asset purchase			$ 25
Royalty percentage			7.50%
Subsequent Event [Member] \| Elle Royalty Agreement [Member] \| Mayfield Pharmaceutical, LLC [Member]
Payments for Royalty			$ 175
Gross proceeds from royalty			$ 10,000
Subsequent Event [Member] \| May Asset Purchase And Elle Royalty Agreement [Member] \| Mayfield Pharmaceutical, LLC [Member]
Number of shares issued			1,000,000
Subsequent Event [Member] \| Cashless Warrants Exercise [Member]
Number of shares issued			293,984
Common stock issued exercise price per share			$ 1.79
Number of warrants exercised			419,800

Subsequent Events - Schedule of Operating Segment (Details) - USD ($) $ in Thousands	2 Months Ended	12 Months Ended
	Mar. 12, 2019	Dec. 31, 2018	Dec. 31, 2017
Total revenues		$ 41,372	$ 26,774
Cost of sales		(16,521)	(13,505)
Gross profit		24,851	13,269
Selling, general and administrative		29,243	25,019
Research and development		825	413
Operating loss		$ (5,217)	$ (12,163)
Subsequent Event [Member]
Total revenues
Cost of sales
Gross profit
Selling, general and administrative
Research and development
Corporate
Amortization
Asset sales and impairments, net
Operating loss
Subsequent Event [Member] \| Corporate [Member]
Segment contribution
Subsequent Event [Member] \| Research and Development Expense [Member]
Segment contribution
Pharmaceutical Compounding [Member] \| Subsequent Event [Member]
Selling, general and administrative
Research and development
Pharmaceutical Drug Development [Member] \| Subsequent Event [Member]
Selling, general and administrative
Research and development