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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2018	Aug. 03, 2018
Document And Entity Information
Entity Registrant Name	Imprimis Pharmaceuticals, Inc.
Entity Central Index Key	0001360214
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		21,049,448
Trading Symbol	IMMY
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2018

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents, including restricted cash of $200	$ 4,170	$ 4,219
Accounts receivable, net	1,360	1,529
Inventories	2,216	2,249
Prepaid expenses and other current assets	982	714
Note receivable, current portion		95
Total current assets	8,728	8,806
Property, plant and equipment, net	5,966	6,215
Intangible assets, net	2,894	2,860
Note receivable, less current portion		302
Goodwill	2,227	2,227
TOTAL ASSETS	26,328	23,917
Current liabilities
Accounts payable and accrued expenses	4,663	3,885
Accrued payroll and related liabilities	1,796	1,209
Deferred revenue and customer deposits	34	29
Current portion of deferred acquisition obligation and accrued interest		53
Current portion of note payable, net of unamortized debt discount	992
Current portion of capital lease obligations, net of unamortized discount	674	598
Total current liabilities	8,159	5,774
Capital lease obligations, net of current portion and unamortized discount	363	720
Accrued expenses, net of current portion	800	800
Note payable, net of current portion and unamortized debt discount	13,274	14,008
TOTAL LIABILITIES	22,596	21,302
STOCKHOLDERS' EQUITY
Common stock, $0.001 par value, 90,000,000 shares authorized, 21,049,448 and 20,623,129 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively	21	21
Additional paid-in capital	93,538	91,430
Accumulated deficit	(89,827)	(88,836)
TOTAL STOCKHOLDERS' EQUITY	3,722	2,615
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	26,328	23,917
Surface Pharmaceuticals [Member]
Current assets
Investment in Eton Pharmaceuticals	5,218
Eton Pharmaceuticals [Member]
Current assets
Investment in Eton Pharmaceuticals	$ 1,295	$ 3,507

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Restricted cash	$ 200	$ 200
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	90,000,000	90,000,000
Common stock, shares issued	21,049,448	20,623,129
Common stock, shares outstanding	21,049,448	20,623,129

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues:
Product sales, net	$ 10,374	$ 6,849	$ 19,229	$ 12,938
License revenues	10	8	20	16
Total revenues	10,384	6,857	19,249	12,954
Cost of sales	(4,157)	(3,288)	(8,228)	(6,645)
Gross profit	6,227	3,569	11,021	6,309
Operating expenses:
Selling, general and administrative	6,779	6,485	13,267	13,296
Research and development	72	101	159	261
Total operating expenses	6,851	6,586	13,426	13,557
Loss from operations	(624)	(3,017)	(2,405)	(7,248)
Other income (expense):
Interest expense, net	(671)	(767)	(1,334)	(1,555)
Loss on sale of assets		(269)		(284)
Other expense, net	(255)		(255)
Total other income, net	3,146	4,473	1,414	3,670
Income (loss) before income taxes	2,522	1,456	(991)	(3,578)
Income tax benefit, net		28		56
Net income (loss)	$ 2,522	$ 1,484	$ (991)	$ (3,522)
Basic net income (loss) per share of common stock	$ 0.12	$ 0.07	$ (0.05)	$ (0.18)
Diluted net income (loss) per share of common stock	$ 0.11	$ 0.06	$ (0.05)	$ (0.18)
Weighted average number of shares of common stock outstanding, basic	21,190,794	20,209,821	21,070,664	19,572,051
Weighted average number of shares of common stock outstanding, diluted	23,175,431	23,177,881	21,070,664	19,572,051
Surface Pharmaceuticals [Member]
Other income (expense):
Investment losses	$ (102)		$ (102)
Gain on deconsolidation of Surface Pharmaceuticals	5,320		5,320
Eton Pharmaceuticals [Member]
Other income (expense):
Investment losses	(1,146)	(216)	(2,215)	(216)
Gain on deconsolidation of Surface Pharmaceuticals		$ 5,725		$ 5,725

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (991)	$ (3,522)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization of property, plant and equipment	800	659
Amortization of intangible assets	117	181
Deferred income taxes		(56)
Amortization of debt issuance costs and discount	314	632
Loss on write down of assets and note receivable	393	111
Loss on sale and disposal of assets		173
Stock-based compensation	1,359	1,617
Changes in assets and liabilities:
Accounts receivable	169	65
Inventories	33	(404)
Prepaid expenses and other current assets	(268)	202
Accounts payable and accrued expenses	885	(194)
Accrued payroll and related liabilities	587	(157)
Deferred revenue and customer deposits	5	(83)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	400	(6,285)
CASH FLOWS FROM INVESTING ACTIVITIES
Repayment of note receivable	4
Investment in patent and trademark assets	(154)	(143)
Purchase of Klarity license		(50)
Purchases of property, plant and equipment	(550)	(322)
NET CASH USED IN INVESTING ACTIVITIES	(700)	(515)
CASH FLOWS FROM FINANCING ACTIVITIES
Payments on capital lease obligations	(337)	(305)
Net proceeds from public equity offering		2,940
Payments on Park deferred acquisition obligation	(53)	(101)
Principal payments on LSAF note payable		(601)
Net proceeds from ATM sales of common stock	641
Net proceeds from exercise of warrants and stock options, net of taxes remitted for RSU's		179
NET CASH PROVIDED BY FINANCING ACTIVITIES	251	2,112
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(49)	(4,688)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period	4,219	9,053
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period	4,170	4,365
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD:
Cash and cash equivalents	3,970	4,165
Restricted cash	200	200
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD	4,170	4,365
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for income taxes	4
Cash paid for interest	1,006	901
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Issuance of stock options for consulting services included in accounts payable and accrued expenses	108
Eton Pharmaceuticals [Member]
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Gain on deconsolidation		(5,725)
Investment loss	2,215	216
Surface Pharmaceuticals [Member]
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Gain on deconsolidation	(5,320)
Investment loss	$ 102

Description of Business and Basis of Presentation

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business and Basis of Presentation

NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Company and Background

Imprimis Pharmaceuticals, Inc. (together with its subsidiaries, unless the context indicates or otherwise requires, the “Company” or “Imprimis”) is a pharmaceutical company specializing in the development, production and sale of innovative medications that offer unique competitive advantages and serve unmet needs in the marketplace. In addition to owning the nation’s leading ophthalmology pharmaceutical compounding business, ImprimisRx, the Company holds large equity positions in Eton Pharmaceuticals, Inc. (“Eton”), Surface Pharmaceuticals, Inc. (“Surface”) and Melt Pharmaceuticals, Inc. (“Melt”), companies originally founded as subsidiaries of Imprimis. The Company also owns royalty rights in certain 505(b)(2) drug candidates being developed by Eton, Surface and Melt.

Basis of Presentation

Imprimis has prepared the accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, all adjustments (consisting of only normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 or for any other period. For further information, refer to the Company’s audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

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

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following represents an update for the three and six months ended June 30, 2018 to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

Liquidity

The Company has incurred significant operating losses and negative cash flows from operations since its inception. The Company incurred net losses of $991 and $3,522 for the six months ended June 30, 2018 and 2017, respectively, and had an accumulated deficit of $89,827 and $88,836 as of June 30, 2018 and December 31, 2017, respectively. In addition, while during the six months ended June 30, 2018 the Company generated cash of $400 from operating activities, there is no guarantee that trend will continue, historically, the Company has used cash in operating activities and during the six months ended June 30, 2017 the Company used $6,285 in operating activities.

While there is no assurance, the Company believes its existing cash resources and restricted cash of $4,170 at June 30, 2018, along with proceeds from the Sales Agreement (see and defined in Note 15) 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.

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 10,245,280 and 9,404,755 at June 30, 2018 and 2017, respectively, and, except for the three months ended June 30, 2018 and 2017, are excluded from the calculation of diluted net (loss) per share for the periods presented, because the effect is anti-dilutive. 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 June 30, 2018 and 2017 was 168,513 and 105,621, respectively.

The following table shows the computation of basic net income (loss) per share of common stock for the three and six months ended June 30, 2018 and 2017:

	For the		For the		For the			For the
	Three Months Ended		Three Months Ended		Six Months Ended			Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018			June 30, 2017

Numerator – net income (loss)	$	2,522	$	1,484	$	(991	)	$	(3,522	)
Denominator – weighted average number of shares outstanding, basic		21,190,794		20,209,821		21,070,664			19,572,051
Net income (loss) per share, basic	$	0.12	$	0.07	$	(0.05	)	$	(0.18	)

For the three months ended June 30, 2018 and 2017, the Company had net income. As a result, the Company computed diluted net income per share using the weighted-average number of common shares and dilutive common equivalent shares outstanding during those periods. Diluted common equivalent shares for the three months ended June 30, 2018 and 2017, consisted of the following:

	June 30, 2018		June 30, 2017
	Shares		Shares
Diluted shares related to:
Warrants		1,093,006		2,912,374
Restricted stock units		883,546		-
Stock options		8,085		55,686
Dilutive common equivalent shares		1,984,637		2,968,060

The following table shows the computation of diluted net income (loss) per share of common stock for the three and six months ended June 30, 2018 and 2017:

	For the Three Months Ended		For the Three Months Ended		For the Six Months Ended			For the Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018			June 30, 2017

Numerator – net income (loss)	$	2,522	$	1,484	$	(991	)	$	(3,522	)
Denominator – weighted average number of shares outstanding, basic		21,190,794		20,209,821		21,070,664			19,572,051
Dilutive common equivalents		1,984,637		2,968,860		-			-
Number of shares used for diluted earnings per share computation		23,175,431		23,177,881		21,070,664			19,572,051
Net income (loss) per share, diluted	$	0.11	$	0.06	$	(0.05	)	$	(0.18	)

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, as of June 30, 2018, the Company owned approximately 35% of the issued and outstanding equity interests in Surface. 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 (“IPO”) 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 Accounting Standard Codification (“ASC”) 810-10-40-4(c), Consolidation.

The Company owns 3,500,000 common shares (which is approximately 30% of the equity interest as of the date of this Report, 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 three and six months ended June 30, 2018, the Company recorded equity in net loss of Surface of $102. As of June 30, 2018, the carrying value of the Company’s investment in Surface was $5,218.

Reclassification

Certain amounts in the 2017 condensed consolidated financial statements have been reclassified to conform to the classifications used to prepare the 2018 condensed 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 condensed consolidated financial statements (see Note 3).

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 condensed 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 June 30, 2018, the Company estimates that the right of use asset to be recorded on its consolidated balance sheet would be approximately $2,300 and that the related lease liability would be approximately $2,800 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 or before 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.

Revenue

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Revenue

NOTE 3. REVENUE

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 three and six months ended June 30, 2018 and 2017, consists of the following:

	For the Three months ended				For the Six months ended
	June 30,				June 30,
	2018		2017		2018		2017
Product sales, net	$	10,374	$	6,849	$	19,229	$	12,938
License revenues		10		8		20		16
Total revenues	$	10,384	$	6,857	$	19,249	$	12,954

Deferred revenue and customer deposits at June 30, 2018 and December 31, 2017, was $34 and $29, respectively.

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

6 Months Ended

Jun. 30, 2018

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

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

In June 2017, the Company and its subsidiary, Eton, entered into and closed on definitive stock purchase agreements related to the sale of Eton’s Series A preferred stock (the “Series A Stock”) that resulted in the Company losing voting and ownership control of Eton and it at that time, ceased consolidating Eton’s financial statements. The Series A Stock has mandatory conversion requirements into common stock of Eton upon events, including an underwritten IPO of Eton common stock. Under the terms of its Series A Stock, Eton is required to complete an IPO by December 31, 2018, subject to exceptions and extension upon certain conditions.

The Company owns 3,500,000 common shares (approximately 27% issued and outstanding equity interest as of the date of this Report) of Eton 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 Eton. Under this method, the Company recognizes earnings and losses of Eton in its consolidated financial statements and adjusts the carrying amount of its investment in Eton accordingly. The Company’s share of earnings and losses are based on the shares of common stock and in-substance common stock of Eton held by the Company. Any intra-entity profits and losses are eliminated. During the three and six months ended June 30, 2018, the Company recorded equity in net loss of Eton of $1,146 and $2,215, respectively. As of June 30, 2018, the carrying value of the Company’s investment in Eton was $1,295.

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) entered into consulting agreements and provided consulting services to Eton, these contracts concluded in April 2018.

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

	For the
	Six months ended
	June 30, 2018
Revenues, net	$	-
Loss from operations		7,424
Net loss	$	(7,424	)

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

	At June 30, 2018
Current assets	$	9,162
Non current assets		484
Total assets		9,646

Total liabilities		2,046
Total preferred stock and stockholders’ equity		7,600
Total liabilities and stockholders’ equity	$	9,646

Investment in Surface Pharmaceuticals Inc And Agreements - Related Party Transactions

6 Months Ended

Jun. 30, 2018

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. The 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.

During the three and six months ended June 30, 2018, the Company incurred expenses that are reimbursable by Surface totaling $75, and no payments were made by Surface to the Company. As of June 30, 2018, the Company was due $223 from Surface for reimbursable expenses and amounts due under the MSA and included in prepaid expenses and other current assets on the accompanying condensed consolidated balance sheets.

The Company owns 3,500,000 common shares (approximately 30% issued and outstanding equity interests as of the date of this Report) of Surface. The Company’s director, 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) entered into consulting agreements and provided consulting services to Surface. Surface is required to make royalty payments to Dr. Lindstrom of three percent (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 Six months
	June 30, 2018
Revenues, net	$	-
Loss from operations		409
Net loss	$	(409	)

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

	At June 30, 2018
Current assets	$	14,691
Non current assets		37
Total assets		14,728

Total liabilities		312
Total stockholders’ equity		14,416
Total liabilities and stockholders’ equity	$	14,728

Restricted Cash

6 Months Ended

Jun. 30, 2018

Cash and Cash Equivalents [Abstract]

Restricted Cash

NOTE 6. RESTRICTED CASH

The restricted cash at June 30, 2018 and December 31, 2017 consisted of funds held in a money market account. At June 30, 2018 and December 31, 2017, the restricted cash was recorded at amortized cost, which approximates fair value.

At June 30, 2018 and December 31, 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

6 Months Ended

Jun. 30, 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 June 30, 2018 and December 31, 2017 was as follows:

	June 30, 2018		December 31, 2017
Raw materials	$	1,080	$	956
Finished goods		1,136		1,293
Total inventories	$	2,216	$	2,249

Prepaid Expenses and Other Current Assets

6 Months Ended

Jun. 30, 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:

	June 30, 2018		December 31, 2017
Prepaid insurance	$	81	$	164
Other prepaid expenses		553		426
Amounts due from Surface Pharmaceuticals		223		-
Deposits and other current assets		125		124
Total prepaid expenses and other current assets	$	982	$	714

Property, Plant and Equipment

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

NOTE 9. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following:

	June 30, 2018			December 31, 2017
Property, plant and equipment, net:
Computer software and hardware	$	1,489		$	1,239
Furniture and equipment		378			377
Lab and pharmacy equipment		2,641			2,545
Leasehold improvements		5,014			4,810
		9,522			8,971
Accumulated depreciation and amortization		(3,556	)		(2,756	)
	$	5,966		$	6,215

For the three and six months ended June 30, 2018, depreciation related to the property, plant and equipment was $401 and $800, respectively.

Note Receivable

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Note Receivable

NOTE 10. NOTE RECEIVABLE

The Company recorded a loss of $393, which was recorded net in other expense, during the three and six months ended June 30, 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.

Intangible Assets and Goodwill

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

NOTE 11. INTANGIBLE ASSETS AND GOODWILL

The Company’s intangible assets at June 30, 2018 consisted of the following:

	Amortization periods (in years)		Cost		Accumulated amortization			Impairment			Net Carrying value
Patents		17-19 years	$	498	$	(34	)	$	-		$	464
Licenses		20 years		50		-			-			50
Trademarks		Indefinite		293		-			-			293
Customer relationships		3-15 years		2,998		(913	)		(15	)		2,070
Trade name		5 years		16		(11	)		(1	)		4
Non-competition clause		3-4 years		294		(274	)		(20	)		-
State pharmacy licenses		25 years		45		(4	)		(28	)		13
			$	4,194	$	(1,236	)	$	(64	)	$	2,894

Amortization expense for intangible assets for the three and six months ended June 30, 2018 was as follows:

	For the		For the		For the		For the
	Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Patents	$	6	$	6	$	13	$	7
Licenses		-		-		-		-
Customer relationships		50		63		100		127
Trade name		1		1		3		2
Non-competition clause		-		22		1		44
State pharmacy licenses		-		-		-		1
	$	57	$	92	$	117	$	181

Estimated future amortization expense for the Company’s intangible assets at June 30, 2018 is as follows:

Remainder of 2018	$	113
2019		231
2020		229
2021		229
2022		229
Thereafter		1,863
	$	2,894

There have been no changes in the carrying value of the Company’s goodwill during the three and six months ended June 30, 2018.

Accounts Payable and Accrued Expenses

6 Months Ended

Jun. 30, 2018

Payables and Accruals [Abstract]

Accounts Payable and Accrued Expenses

NOTE 12. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of the following:

	June 30, 2018			December 31,2017
Accounts payable	$	4,054		$	3,241
Deferred rent		364			388
Accrued interest		245			256
Accrued exit fee for note payable		800			800
Total accounts payable and accrued expenses		5,463			4,685
Less: Current portion		(4,663	)		(3,885	)
Non-current total accrued expenses	$	800		$	800

Debt

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Debt

NOTE 13. DEBT

At June 30, 2018, future minimum payments under the Company’s note payable were as follows:

	Amount
Remainder of 2018	$	1,227
2019		3,657
2020		3,440
2021		3,214
2022		11,200
Total minimum payments		22,738
Less: amount representing interest		(6,738	)
Notes payable, gross		16,000
Less: unamortized discount		(1,734	)
Less: current portion, net of unamortized discount		(992	)
Note payable, net of current portion and unamortized debt discount	$	13,274

For the three and six months ended June 30, 2018, debt discount amortization related to note payable was $130 and $258, respectively.

Capital Lease Obligation

6 Months Ended

Jun. 30, 2018

Leases [Abstract]

Capital Lease Obligation

NOTE 14. CAPITAL LEASE OBLIGATION

At June 30, 2018, future payments under the Company’s capital leases were as follows:

	Amount
Remainder of 2018	$	387
2019		751
Total minimum lease payments		1,138
Less: amount representing interest payments		(48	)
Present value of future minimum lease payment		1,090
Less: unamortized discount		(53	)
		1,037
Less: current portion, net of unamortized discount		(674	)
Capital lease obligation net of current portion and unamortized discount	$	363

For the three and six months ended June 30, 2018, debt discount amortization related to the capital lease obligation was $25 and $56, respectively.

Stockholders' Equity and Stock-based Compensation

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Stockholders' Equity and Stock-based Compensation

NOTE 15. STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION

Common Stock

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 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 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 305,619 shares of common stock and received net proceeds of $641, after deducting $20 for sales commission and offering expenses, under the Sales Agreement during the six months ended June 30, 2018, leaving an aggregate of $7,378 available for future sales of shares thereunder as of June 30, 2018.

During the six months ended June 30, 2018, 31,446 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.

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 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 “Plans”). As of June 30, 2018, the 2017 Plan provides for the issuance of a maximum of 2,000,000 shares of the Company’s common stock. The purpose of the Plans are 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 Plans, 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 Plans are administered by the Compensation Committee of the Company’s Board of Directors.

Stock Options

A summary of stock option activity under the Plans for the six months ended June 30, 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		$	5.51
Options granted		281,000		$	1.75
Options exercised		-		$	-
Options cancelled/forfeit		(16,599	)	$	4.16
Options outstanding - June 30, 2018		2,524,380		$	5.10		6.04	$	188
Options exercisable		1,162,736		$	5.56		6.25	$	-
Options vested and expected to vest		2,387,300		$	5.11		6.04	$	170

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 June 30, 2018, based on the closing price of the Company’s common stock of $2.20 on that date.

During the six months ended June 30, 2018, the Company granted stock options to certain employees 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 of 10 years. Vesting terms for options granted to employees and consultants during the six months ended June 30, 2018 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; and 100% of the shares subject to the option vest on a quarterly basis in equal installments 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 term of options granted to employees and directors was determined in accordance with the “simplified approach,” as the Company has limited, relevant, historical data on employee exercises and post-vesting employment termination behavior. The expected risk-free interest rate is based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. The financial statement effect of forfeitures is estimated at the time of grant and revised, if necessary, if the actual effect differs from those estimates. For option grants to employees and directors, the Company assigns a forfeiture factor of 10%. These factors could change in the future, which would affect the determination of stock-based compensation expense in future periods. Utilizing these assumptions, the fair value is determined at the date of grant.

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

	2018
Weighted-average fair value of options granted	$	1.39
Expected terms (in years)		5.8 - 6.1
Expected volatility		88% - 126	%
Risk-free interest rate		2.05 - 3.00	%
Dividend yield		-

The following table summarizes information about stock options outstanding and exercisable at June 30, 2018:

	Options Outstanding						Options Exercisable
			Weighted
			Average		Weighted				Weighted
			Remaining		Average				Average
	Number		Contractual		Exercise		Number		Exercise
Range of Exercise Prices	Outstanding		Life in Years		Price		Exercisable		Price
$1.47 - $2.60		857,125		8.26	$	2.04		290,966	$	2.30
$3.20 - $4.50		539,906		7.44	$	3.97		357,398	$	3.98
$5.49 - $6.36		101,536		5.07	$	5.98		99,346	$	5.99
$6.64 - $8.99		1,020,783		3.54	$	7.98		409,996	$	8.16
$42.80		5,030		2.12	$	42.80		5,030	$	42.80
$1.47 - $42.80		2,524,380		6.04	$	5.10		1,162,736	$	5.56

As of June 30, 2018, there was approximately $2,397 of total unrecognized compensation expense related to unvested stock options granted under the Plans. That expense is expected to be recognized over the weighted-average remaining vesting period of 2.4 years. The stock-based compensation expense for all stock options was $354 and $771 during the three and six months ended June 30, 2018, 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.

During the three and six months ended June 30, 2018, the Company’s board of directors were granted 136,360 RSUs with a fair market value $300 which vests on a quarterly basis, over one year in equal installments

A summary of the Company’s RSU activity and related information for the six months ended June 30, 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		(91,446	)		3.94
RSUs cancelled/forfeit		-
RSUs unvested at June 30, 2018		1,343,860		$	2.16

As of June 30, 2018, the total unrecognized compensation expense related to unvested RSUs was approximately $1,050, which is expected to be recognized over a weighted-average period of 0.5 years, based on estimated and actual vesting schedules of the applicable RSUs. The stock-based compensation for RSUs during the three and six months ended June 30, 2018 was $254 and $577.

Warrants

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

	19

A summary of warrant activity for the six months ended June 30, 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		-
Expired		(55,688	)	$	5.25
Warrants outstanding and exercisable - June 30, 2018		6,208,527		$	1.90
Weighted average remaining contractual life of the outstanding warrants in years - June 30, 2018		2.05

A list of the warrants outstanding as of June 30, 2018 is 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
Warrants issued to investor relations consultant		7/19/2013		60,000	$	8.50		60,000		7/19/2018
Placement Agent Warrants		12/27/2016		210,313	$	1.79		210,313		12/27/2019
PIPE Investor Warrants		12/27/2016		5,157,828	$	1.79		5,157,828		12/27/2019
Lender warrants		7/19/2017		615,386	$	2.08		615,386		7/19/2024
				6,208,527	$	1.90		6,208,527

Subsidiary Stock-Based Transactions

During the six months ended June 30, 2018 the Company recognized $11 in stock-based compensation related to equity instruments granted by Surface to consultants, Imprimis employees and directors, including Mark Baum, CEO of the Company, Andrew Boll, CFO of the Company, and Richard Lindstrom, a director of the Company.

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

	For the		For the		For the		For the
	Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Employees - selling, general and administrative	$	573	$	617	$	1,166	$	1,452
Directors - selling, general and administrative		35		50		85		105
Consultants - selling, general and administrative		-		-		108		60
Total	$	608	$	667	$	1,359	$	1,617

Commitments and Contingencies

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE 16. COMMITMENTS AND CONTINGENCIES

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 our alleged transmittal of advertisements to our 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. The Company expects a ruling on the motion to certify the class to be determined in the fourth quarter of 2018. The Company believes the claims are frivolous and has 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 this litigation, it could result in substantial costs and a diversion of management’s resources and attention, which could harm the Company’s business and the value of its common stock.

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 the Company, primarily claiming violations under the federal Lanham Act and other state laws. The case is currently in discovery, with a trial date set for April 2019. The Company believes the claims are frivolous and has previously and will continue to dispute all asserted claims against it and intends to vigorously defend these allegations. Nonetheless, the Company cannot predict the eventual outcome of this this litigation, it could result in substantial costs 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 has been filed with the Court and in May 2018, Spectrum filed an answer with the Court. The matter is currently in the beginning stages of discovery. The Company intends to fully purse any and all legal remedies available to it 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. A decision on the Company’s motion to dismiss has not yet been determined. The Company believes the claims are frivolous and has previously and will continue to dispute all claims asserted against it and intend to vigorously defend these allegations. Nonetheless, the Company cannot predict the eventual outcome of this this litigation, it could result in substantial costs 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 our wholly owned subsidiary, Park Compounding, Inc. (“Park”) related to a compounded formulation the Company believes was legally dispensed and was, without the Company’s knowledge, inappropriately administered to a patient unknown to the Company, by the prescribing healthcare professional. The Company has filed its response to the accusation and has requested a formal hearing. The Company disputes all claims against it and intends to vigorously defend against the allegations. Nonetheless, the Company cannot predict the outcome of this matter, it could result in substantial costs, suspension or revocation of Park’s pharmacy license 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 May 2018, the Company filed demurrer challenging certain allegations and a motion to strike punitive damages, these motions will be heard by the Court on August 10, 2018. The Company believes the claims are frivolous and has previously and will continue to dispute all asserted claims against it and intends to vigorously defend these allegations. Nonetheless, the Company cannot predict the eventual outcome of this this litigation, it could result in substantial costs 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 the Company may, from time to time, make claims or take legal actions to assert the Company’s rights, including intellectual property disputes, contractual disputes and other commercial disputes. Any of these claims could subject the Company to litigation. Management believes the outcomes of currently pending claims are not likely to have a material effect on the Company’s consolidated financial position and results of operations.

Indemnities

In addition to the indemnification provisions contained in the Company’s charter documents, the Company generally enters into separate indemnification agreements with each of the Company’s directors and officers. These agreements require the Company, among other things, to indemnify the director or officer against specified expenses and liabilities, such as attorneys’ fees, judgments, fines and settlements, paid by the individual in connection with any action, suit or proceeding arising out of the individual’s status or service as the Company’s director or officer, other than liabilities arising from willful misconduct or conduct that is knowingly fraudulent or deliberately dishonest, and to advance expenses incurred by the individual in connection with any proceeding against the individual with respect to which the individual may be entitled to indemnification by the Company. The Company also indemnifies its lessors in connection with its facility leases for certain claims arising from the use of the facilities. These indemnities do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has not incurred any payments for these obligations and, therefore, no liabilities have been recorded for these indemnities in the accompanying condensed consolidated balance sheets.

Klarity License Agreement – Related Party

In April 2017 and as amended in April 2018, 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 used 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% - 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 are payable at the Company’s election in cash or shares of the Company’s restricted common stock. Payments totaling $103 were made during the three and six months ended June 30, 2018, and $7 was due to Dr. Lindstrom at June 30, 2018.

Sales and Marketing Agreements

During 2017, the Company entered various sales and marketing agreements with certain organizations, to provide exclusive sales and marketing representation services to Imprimis in select geographies in the U.S., in connection with our 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. No stock-based payments were made and $343 and $558 were incurred under these agreements for commission expenses during the three and six months ended June 30, 2018, respectively.

Segment Information and Concentrations

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Segment Information and Concentrations

NOTE 17. SEGMENT INFORMATION AND CONCENTRATIONS

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

The Company categorizes revenues by geographic area based on selling location. All operations are currently located in the U.S.; therefore, total revenues for 2018 and 2017 are attributed to the U.S. All long-lived assets at June 30, 2018 and December 31, 2017 are located in the U.S.

The Company sells its compounded formulations to a large number of customers. Less than 10% of the Company’s total pharmacy sales were derived from a single customer for the three and six months ended June 30, 2018 and 2017.

The Company receives its active pharmaceutical ingredients from three main suppliers. These suppliers collectively accounted for 54% and 52% of active pharmaceutical ingredient purchases during the three and six months ended June 30, 2018, respectively, and 72% and 77% during the three and six months ended June 30, 2017, respectively.

Subsequent Events

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Subsequent Events

NOTE 18. SUBSEQUENT EVENTS

The Company has performed an evaluation of events occurring subsequent to June 30, 2018 through the filing date of this Quarterly Report. Based on its evaluation, no other events need to be disclosed.

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Liquidity

Liquidity

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 three and six months ended June 30, 2018 and 2017:

	For the		For the		For the			For the
	Three Months Ended		Three Months Ended		Six Months Ended			Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018			June 30, 2017

Numerator – net income (loss)	$	2,522	$	1,484	$	(991	)	$	(3,522	)
Denominator – weighted average number of shares outstanding, basic		21,190,794		20,209,821		21,070,664			19,572,051
Net income (loss) per share, basic	$	0.12	$	0.07	$	(0.05	)	$	(0.18	)

	June 30, 2018		June 30, 2017
	Shares		Shares
Diluted shares related to:
Warrants		1,093,006		2,912,374
Restricted stock units		883,546		-
Stock options		8,085		55,686
Dilutive common equivalent shares		1,984,637		2,968,060

The following table shows the computation of diluted net income (loss) per share of common stock for the three and six months ended June 30, 2018 and 2017:

	For the Three Months Ended		For the Three Months Ended		For the Six Months Ended			For the Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018			June 30, 2017

Numerator – net income (loss)	$	2,522	$	1,484	$	(991	)	$	(3,522	)
Denominator – weighted average number of shares outstanding, basic		21,190,794		20,209,821		21,070,664			19,572,051
Dilutive common equivalents		1,984,637		2,968,860		-			-
Number of shares used for diluted earnings per share computation		23,175,431		23,177,881		21,070,664			19,572,051
Net income (loss) per share, diluted	$	0.11	$	0.06	$	(0.05	)	$	(0.18	)

Investment in Surface Pharmaceuticals, Inc.

Investment in Surface Pharmaceuticals, Inc.

Reclassification

Reclassification

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

- Definition

Disclosure of accounting policy for investments in financial assets, including marketable securities (debt and equity securities with readily determinable fair values), investments accounted for under the equity method and cost method, securities borrowed and loaned, and repurchase and resale agreements. For marketable securities, the disclosure may include the entity's accounting treatment for transfers between investment categories and how the fair values for such securities are determined. Also, for all investments, an entity may describe its policy for assessing, recognizing and measuring impairment of the investment.

+ References + Details

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 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 three and six months ended June 30, 2018 and 2017:

	For the		For the		For the			For the
	Three Months Ended		Three Months Ended		Six Months Ended			Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018			June 30, 2017

Numerator – net income (loss)	$	2,522	$	1,484	$	(991	)	$	(3,522	)
Denominator – weighted average number of shares outstanding, basic		21,190,794		20,209,821		21,070,664			19,572,051
Net income (loss) per share, basic	$	0.12	$	0.07	$	(0.05	)	$	(0.18	)

Schedule of Diluted Common Equivalent Shares

Diluted common equivalent shares for the three months ended June 30, 2018 and 2017, consisted of the following:

	June 30, 2018		June 30, 2017
	Shares		Shares
Diluted shares related to:
Warrants		1,093,006		2,912,374
Restricted stock units		883,546		-
Stock options		8,085		55,686
Dilutive common equivalent shares		1,984,637		2,968,060

Schedule of Diluted Earnings Per Common Share

The following table shows the computation of diluted net income (loss) per share of common stock for the three and six months ended June 30, 2018 and 2017:

	For the Three Months Ended		For the Three Months Ended		For the Six Months Ended			For the Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018			June 30, 2017

Numerator – net income (loss)	$	2,522	$	1,484	$	(991	)	$	(3,522	)
Denominator – weighted average number of shares outstanding, basic		21,190,794		20,209,821		21,070,664			19,572,051
Dilutive common equivalents		1,984,637		2,968,860		-			-
Number of shares used for diluted earnings per share computation		23,175,431		23,177,881		21,070,664			19,572,051
Net income (loss) per share, diluted	$	0.11	$	0.06	$	(0.05	)	$	(0.18	)

Revenue (Tables)

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregated Revenue

Revenue disaggregated by revenue source for the three and six months ended June 30, 2018 and 2017, consists of the following:

	For the Three months ended				For the Six months ended
	June 30,				June 30,
	2018		2017		2018		2017
Product sales, net	$	10,374	$	6,849	$	19,229	$	12,938
License revenues		10		8		20		16
Total revenues	$	10,384	$	6,857	$	19,249	$	12,954

Investment in Eton Pharmaceuticals, Inc. and Agreements - Related Party Transactions (Tables) - Eton Pharmaceuticals [Member]

6 Months Ended

Jun. 30, 2018

Schedule of Condensed Income Statement

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

	For the
	Six months ended
	June 30, 2018
Revenues, net	$	-
Loss from operations		7,424
Net loss	$	(7,424	)

Schedule of Condensed Balance Sheet

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

	At June 30, 2018
Current assets	$	9,162
Non current assets		484
Total assets		9,646

Total liabilities		2,046
Total preferred stock and stockholders’ equity		7,600
Total liabilities and stockholders’ equity	$	9,646

Investment in Surface Pharmaceuticals Inc And Agreements - Related Party Transactions (Tables) - Surface Pharmaceuticals [Member]

6 Months Ended

Jun. 30, 2018

Schedule of Condensed Income Statement

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

	For the Six months
	June 30, 2018
Revenues, net	$	-
Loss from operations		409
Net loss	$	(409	)

Schedule of Condensed Balance Sheet

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

	At June 30, 2018
Current assets	$	14,691
Non current assets		37
Total assets		14,728

Total liabilities		312
Total stockholders’ equity		14,416
Total liabilities and stockholders’ equity	$	14,728

Inventories (Tables)

6 Months Ended

Jun. 30, 2018

Inventory Disclosure [Abstract]

Schedule of Inventories

The composition of inventories as of June 30, 2018 and December 31, 2017 was as follows:

	June 30, 2018		December 31, 2017
Raw materials	$	1,080	$	956
Finished goods		1,136		1,293
Total inventories	$	2,216	$	2,249

Prepaid Expenses and Other Current Assets (Tables)

6 Months Ended

Jun. 30, 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:

	June 30, 2018		December 31, 2017
Prepaid insurance	$	81	$	164
Other prepaid expenses		553		426
Amounts due from Surface Pharmaceuticals		223		-
Deposits and other current assets		125		124
Total prepaid expenses and other current assets	$	982	$	714

Property, Plant and Equipment (Tables)

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

Property, plant and equipment consisted of the following:

	June 30, 2018			December 31, 2017
Property, plant and equipment, net:
Computer software and hardware	$	1,489		$	1,239
Furniture and equipment		378			377
Lab and pharmacy equipment		2,641			2,545
Leasehold improvements		5,014			4,810
		9,522			8,971
Accumulated depreciation and amortization		(3,556	)		(2,756	)
	$	5,966		$	6,215

Intangible Assets and Goodwill (Tables)

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

The Company’s intangible assets at June 30, 2018 consisted of the following:

	Amortization periods (in years)		Cost		Accumulated amortization			Impairment			Net Carrying value
Patents		17-19 years	$	498	$	(34	)	$	-		$	464
Licenses		20 years		50		-			-			50
Trademarks		Indefinite		293		-			-			293
Customer relationships		3-15 years		2,998		(913	)		(15	)		2,070
Trade name		5 years		16		(11	)		(1	)		4
Non-competition clause		3-4 years		294		(274	)		(20	)		-
State pharmacy licenses		25 years		45		(4	)		(28	)		13
			$	4,194	$	(1,236	)	$	(64	)	$	2,894

Schedule of Amortization Expenses for Intangible Assets

Amortization expense for intangible assets for the three and six months ended June 30, 2018 was as follows:

	For the		For the		For the		For the
	Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Patents	$	6	$	6	$	13	$	7
Licenses		-		-		-		-
Customer relationships		50		63		100		127
Trade name		1		1		3		2
Non-competition clause		-		22		1		44
State pharmacy licenses		-		-		-		1
	$	57	$	92	$	117	$	181

Schedule of Estimated Future Amortization Expense

Estimated future amortization expense for the Company’s intangible assets at June 30, 2018 is as follows:

Remainder of 2018	$	113
2019		231
2020		229
2021		229
2022		229
Thereafter		1,863
	$	2,894

Accounts Payable and Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2018

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following:

	June 30, 2018			December 31,2017
Accounts payable	$	4,054		$	3,241
Deferred rent		364			388
Accrued interest		245			256
Accrued exit fee for note payable		800			800
Total accounts payable and accrued expenses		5,463			4,685
Less: Current portion		(4,663	)		(3,885	)
Non-current total accrued expenses	$	800		$	800

Debt (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Summary of Future Minimum Payments

At June 30, 2018, future minimum payments under the Company’s note payable were as follows:

	Amount
Remainder of 2018	$	1,227
2019		3,657
2020		3,440
2021		3,214
2022		11,200
Total minimum payments		22,738
Less: amount representing interest		(6,738	)
Notes payable, gross		16,000
Less: unamortized discount		(1,734	)
Less: current portion, net of unamortized discount		(992	)
Note payable, net of current portion and unamortized debt discount	$	13,274

Capital Lease Obligation (Tables)

6 Months Ended

Jun. 30, 2018

Leases [Abstract]

Schedule of Future Payment Under Capital Lease

At June 30, 2018, future payments under the Company’s capital leases were as follows:

	Amount
Remainder of 2018	$	387
2019		751
Total minimum lease payments		1,138
Less: amount representing interest payments		(48	)
Present value of future minimum lease payment		1,090
Less: unamortized discount		(53	)
		1,037
Less: current portion, net of unamortized discount		(674	)
Capital lease obligation net of current portion and unamortized discount	$	363

Stockholders' Equity and Stock-based Compensation (Tables)

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Schedule of Stock Option Plan Activity

A summary of stock option activity under the Plans for the six months ended June 30, 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		$	5.51
Options granted		281,000		$	1.75
Options exercised		-		$	-
Options cancelled/forfeit		(16,599	)	$	4.16
Options outstanding - June 30, 2018		2,524,380		$	5.10		6.04	$	188
Options exercisable		1,162,736		$	5.56		6.25	$	-
Options vested and expected to vest		2,387,300		$	5.11		6.04	$	170

Schedule of Fair Value Assumption

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

	2018
Weighted-average fair value of options granted	$	1.39
Expected terms (in years)		5.8 - 6.1
Expected volatility		88% - 126	%
Risk-free interest rate		2.05 - 3.00	%
Dividend yield		-

Schedule of Shares Outstanding and Exercisable

The following table summarizes information about stock options outstanding and exercisable at June 30, 2018:

	Options Outstanding						Options Exercisable
			Weighted
			Average		Weighted				Weighted
			Remaining		Average				Average
	Number		Contractual		Exercise		Number		Exercise
Range of Exercise Prices	Outstanding		Life in Years		Price		Exercisable		Price
$1.47 - $2.60		857,125		8.26	$	2.04		290,966	$	2.30
$3.20 - $4.50		539,906		7.44	$	3.97		357,398	$	3.98
$5.49 - $6.36		101,536		5.07	$	5.98		99,346	$	5.99
$6.64 - $8.99		1,020,783		3.54	$	7.98		409,996	$	8.16
$42.80		5,030		2.12	$	42.80		5,030	$	42.80
$1.47 - $42.80		2,524,380		6.04	$	5.10		1,162,736	$	5.56

Schedule of Restricted Stock Units Activity

A summary of the Company’s RSU activity and related information for the six months ended June 30, 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		(91,446	)		3.94
RSUs cancelled/forfeit		-
RSUs unvested at June 30, 2018		1,343,860		$	2.16

Schedule of Warrants Activity

A summary of warrant activity for the six months ended June 30, 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		-
Expired		(55,688	)	$	5.25
Warrants outstanding and exercisable - June 30, 2018		6,208,527		$	1.90
Weighted average remaining contractual life of the outstanding warrants in years - June 30, 2018		2.05

Schedule of Warrants Outstanding and Warrants Exercisable

A list of the warrants outstanding as of June 30, 2018 is 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
Warrants issued to investor relations consultant		7/19/2013		60,000	$	8.50		60,000		7/19/2018
Placement Agent Warrants		12/27/2016		210,313	$	1.79		210,313		12/27/2019
PIPE Investor Warrants		12/27/2016		5,157,828	$	1.79		5,157,828		12/27/2019
Lender warrants		7/19/2017		615,386	$	2.08		615,386		7/19/2024
				6,208,527	$	1.90		6,208,527

Schedule of Stock Based Compensation Granted to Employees Directors Consultants

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

	For the		For the		For the		For the
	Three Months Ended		Three Months Ended		Six Months Ended		Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Employees - selling, general and administrative	$	573	$	617	$	1,166	$	1,452
Directors - selling, general and administrative		35		50		85		105
Consultants - selling, general and administrative		-		-		108		60
Total	$	608	$	667	$	1,359	$	1,617

- 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

Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Net loss	$ 2,522	$ 1,484	$ (991)	$ (3,522)
Accumulated deficit	89,827		89,827		$ 88,836
Net cash used in operating activities			400	$ (6,285)
Cash resources and restricted investments	$ 4,170		$ 4,170
Antidilutive securities	23,175,431	23,177,881	21,070,664	19,572,051
Right of use asset	$ 2,300		$ 2,300
Lease liability	$ 2,800		2,800
Reclassification of restricted cash			200	$ 200
Surface Pharmaceuticals Inc [Member]
Net loss			$ (409)
Ownership percentage	30.00%		30.00%
Gain on deconsolidation of Surface Pharmaceuticals			$ 5,320
Number of shares owned	3,500,000		3,500,000
Investment losses	$ 102		$ 102
Investment in surface	$ 5,218		$ 5,218
Surface Series A Stock [Member] \| Surface Pharmaceuticals Inc [Member]
Ownership percentage	35.00%		35.00%
Share purchase price	$ 3.30		$ 3.30
Surface Series A Stock [Member] \| May and July 2018 [Member]
Proceeds from issuance of preferred stock			$ 21,000
Restricted Stock Units [Member]
Number of shares vested during the period			168,513	105,621
Deferred Acquisition Obligations, Convertible Note Payable, Stock Options, Unvested RSUs and Warrants [Member]
Antidilutive securities			10,245,280	9,404,755

Summary of Significant Accounting Policies - Schedule of Basic Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Accounting Policies [Abstract]
Numerator - net income (loss)	$ 2,522	$ 1,484	$ (991)	$ (3,522)
Denominator - weighted average number of shares outstanding, basic	21,190,794	20,209,821	21,070,664	19,572,051
Net income (loss) per share, basic	$ 0.12	$ 0.07	$ (0.05)	$ (0.18)

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=109256448&loc=d3e4984-109258

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+ Details

- 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) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Dilutive common equivalent shares	1,984,637	2,968,860
Warrant [Member]
Dilutive common equivalent shares	1,093,006	2,912,374
Restricted Stock Units [Member]
Dilutive common equivalent shares	883,546
Stock Options [Member]
Dilutive common equivalent shares	8,085	55,686

Summary of Significant Accounting Policies - Schedule of Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Accounting Policies [Abstract]
Numerator - net income (loss)	$ 2,522	$ 1,484	$ (991)	$ (3,522)
Denominator - weighted average number of shares outstanding, basic	21,190,794	20,209,821	21,070,664	19,572,051
Dilutive common equivalents	1,984,637	2,968,860
Number of shares used for diluted earnings per share computation	23,175,431	23,177,881	21,070,664	19,572,051
Net income (loss) per share, diluted	$ 0.11	$ 0.06	$ (0.05)	$ (0.18)

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
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+ Details

- Definition

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

+ References + Details

Revenue (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Revenue from Contract with Customer [Abstract]
Deferred revenue and customer deposits	$ 34	$ 29

Revenue - Schedule of Disaggregated Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Total Revenues	$ 10,384	$ 6,857	$ 19,249	$ 12,954
Product Sales, Net [Member]
Total Revenues	10,374	6,849	19,229	12,938
License Revenues [Member]
Total Revenues	$ 10	$ 8	$ 20	$ 16

Investment in Eton Pharmaceuticals, Inc. and Agreements - Related Party Transactions (Details Narrative) - Eton Pharmaceuticals, Inc. [Member] $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018 USD ($) shares	Jun. 30, 2018 USD ($) shares
Number of shares owned \| shares	3,500,000	3,500,000
Ownership percentage	27.00%	27.00%
Investment net loss	$ 1,146	$ 2,215
Carrying value of investment	$ 1,295	$ 1,295

Investment in Eton Pharmaceuticals, Inc. and Agreements - Related Party Transactions - Schedule of Condensed Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues, net	$ 10,384	$ 6,857	$ 19,249	$ 12,954
Loss from operations	(624)	(3,017)	(2,405)	(7,248)
Net loss	$ 2,522	$ 1,484	(991)	$ (3,522)
Eton Pharmaceuticals, Inc. [Member]
Revenues, net
Loss from operations			7,424
Net loss			$ (7,424)

- Definition

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

+ References + Details

Investment in Eton Pharmaceuticals, Inc. and Agreements - Related Party Transactions - Schedule of Condensed Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets	$ 8,728	$ 8,806
Total assets	26,328	23,917
Total liabilities	22,596	21,302
Total liabilities and stockholders' equity	26,328	$ 23,917
Eton Pharmaceuticals, Inc. [Member]
Current assets	9,162
Non current assets	484
Total assets	9,646
Total liabilities	2,046
Total preferred stock and stockholders' equity	7,600
Total liabilities and stockholders' equity	$ 9,646

- 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.

+ References

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+ Details

Investment in Surface Pharmaceuticals, Inc. and Agreements - Related Party Transactions (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
	Jan. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Reimbursable expenses		$ 223
Surface Pharmaceuticals Inc [Member]
Expenses incurred		$ 75
Number of shares owned		3,500,000
Ownership percentage		30.00%
Surface Pharmaceuticals Inc [Member] \| Dr. Lindstrom [Member]
Royalty payments, percentage		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		$ 223

Investment in Surface Pharmaceuticals, Inc. and Agreements - Related Party Transactions - Schedule of Condensed Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues, net	$ 10,384	$ 6,857	$ 19,249	$ 12,954
Loss from operations	(624)	(3,017)	(2,405)	(7,248)
Net loss	$ 2,522	$ 1,484	(991)	$ (3,522)
Surface Pharmaceuticals Inc [Member]
Revenues, net
Loss from operations			409
Net loss			$ (409)

- 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	Jun. 30, 2018	Dec. 31, 2017
Current assets	$ 8,728	$ 8,806
Total assets	26,328	23,917
Total liabilities	22,596	21,302
Total stockholders' equity	3,722	2,615
Total liabilities and stockholders' equity	26,328	$ 23,917
Surface Pharmaceuticals Inc [Member]
Current assets	14,691
Non current assets	37
Total assets	14,728
Total liabilities	312
Total stockholders' equity	14,416
Total liabilities and stockholders' equity	$ 14,728

- 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.

+ References

+ Details

Restricted Cash (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Cash and Cash Equivalents [Abstract]
Money market account	$ 200	$ 200

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 1,080	$ 956
Finished goods	1,136	1,293
Total inventories	$ 2,216	$ 2,249

Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid insurance	$ 81	$ 164
Other prepaid expenses	553	426
Amounts due from Surface Pharmaceuticals	223
Deposits and other current assets	125	124
Total prepaid expenses and other current assets	$ 982	$ 714

Property, Plant and Equipment (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Property, Plant and Equipment [Abstract]
Depreciation of property, plant and equipment	$ 401	$ 800

Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Computer software and hardware	$ 1,489	$ 1,239
Furniture and equipment	378	377
Lab and pharmacy equipment	2,641	2,545
Leasehold improvements	5,014	4,810
Property, plant and equipment, gross	9,522	8,971
Accumulated depreciation and amortization	(3,556)	(2,756)
Property, plant and equipment, Net	$ 5,966	$ 6,215

Note Receivable (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Jun. 30, 2017
Debt Disclosure [Abstract]
Loss on write down of assets and note receivable	$ (393)	$ (393)	$ (111)

Intangible Assets and Goodwill - Schedule of Intangible Assets (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($)
Cost	$ 4,194
Accumulated amortization	(1,236)
Impairment	(64)
Net Carrying value	2,894
Patents [Member]
Cost	498
Accumulated amortization	(34)
Impairment
Net Carrying value	$ 464
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	$ 293
Accumulated amortization
Impairment
Net Carrying value	293
Customer Relationships [Member]
Cost	2,998
Accumulated amortization	(913)
Impairment	(15)
Net Carrying value	$ 2,070
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	(11)
Impairment	(1)
Net Carrying value	4
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
State Pharmacy Licenses [Member]
Cost	$ 45
Accumulated amortization	(4)
Impairment	(28)
Net Carrying value	$ 13

Intangible Assets and Goodwill - Schedule of Amortization Expenses for Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Amortization of intangible assets	$ 57	$ 92	$ 117	$ 181
Patents [Member]
Amortization of intangible assets	6	6	13	7
Licenses [Member]
Amortization of intangible assets
Customer Relationships [Member]
Amortization of intangible assets	50	63	100	127
Trade Name [Member]
Amortization of intangible assets	1	1	3	2
Non-Competition Clause [Member]
Amortization of intangible assets		22	1	44
State Pharmacy Licenses [Member]
Amortization of intangible assets				$ 1

Intangible Assets and Goodwill - Schedule of Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2018	$ 113
2019	231
2020	229
2021	229
2022	229
Thereafter	1,863
Intangible assets	$ 2,894	$ 2,860

Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Accounts payable	$ 4,054	$ 3,241
Deferred rent	364	388
Accrued interest	245	256
Accrued exit fee for note payable	800	800
Total accounts payable and accrued expenses	5,463	4,685
Less: Current portion	(4,663)	(3,885)
Non-current total accrued expenses	$ 800	$ 800

Debt (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
Debt (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2018
Debt Disclosure [Abstract]
Amortization of debt discount	$ 130	$ 258

Debt - Summary of Future Minimum Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Less: unamortized discount	$ (53)
Less: current portion, net of unamortized discount	(992)
Note payable, net of current portion and unamortized debt discount	13,274	$ 14,008
Note Payable [Member]
Remainder of 2018	1,227
2019	3,657
2020	3,440
2021	3,214
2022	11,200
Total minimum payments	22,738
Less: amount representing interest	(6,738)
Notes payable, gross	16,000
Less: unamortized discount	(1,734)
Less: current portion, net of unamortized discount	(992)
Note payable, net of current portion and unamortized debt discount	$ 13,274

Capital Lease Obligation (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Debt discount amortization	$ 130	$ 258
Capital Lease Obligations [Member]
Debt discount amortization	$ 25	$ 56

Capital Lease Obligation - Schedule of Future Payment Under Capital Lease (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Leases [Abstract]
Remainder of 2018	$ 387
2019	751
Total minimum lease payments	1,138
Less: amount representing interest payments	(48)
Present value of future minimum lease payment	1,090
Less: unamortized discount	(53)
Present value of future net minimum lease payments	1,037
Less: current portion, net of unamortized discount	(674)	$ (598)
Capital lease obligation, net of current portion and unamortized discount	$ 363	$ 720

Stockholders' Equity and Stock-based Compensation (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended		3 Months Ended		6 Months Ended
	Feb. 28, 2018	Jan. 31, 2018	Nov. 30, 2015	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2018	Jun. 30, 2017
Shares issued of restricted common stock, shares		25,273			35,427
Accrued royalty expense		$ 44			$ 64
Stock-based compensation						$ 1,359	$ 1,617
2007 Incentive Stock and Awards Plan [Member]
Maximum number of common stock issuance under the plan				2,000,000		2,000,000	2,000,000
Consultants Employees and Directors [Member]
Stock-based compensation						$ 11
Restricted Stock Units [Member]
Shares issued of restricted common stock, shares						31,446
Restricted Stock Units [Member] \| Andrew R. Boll [Member]
Shares issued of restricted common stock, shares	30,000
Restricted Stock Units [Member] \| John P. Saharek [Member]
Shares issued of restricted common stock, shares	30,000
Restricted Stock Units [Member] \| Board of Directors [Member]
Shares issued of restricted common stock, shares				136,360		136,360
Fair market value of restricted shares				$ 300		$ 300
Stock Option Plan [Member]
Closing price of common stock price per share				$ 2.20		$ 2.20
Stock options granted with exercise price contractual terms						6 years 2 months 30 days
Forfeiture factor, percentage						10.00%
Unrecognized compensation expense related to unvested stock options granted under the plan				$ 2,397		$ 2,397
Expense expected to recognize over the weighted-average remaining vesting period						2 years 4 months 24 days
Stock-based compensation				354		$ 771
Stock Option Plan [Member] \| Employees and Consultants [Member]
Stock options granted with exercise price contractual terms						10 years
Stock options granted vesting terms						Vesting terms for options granted to employees and consultants during the six months ended June 30, 2018 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; and 100% of the shares subject to the option vest on a quarterly basis in equal installments 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.
Unvested RSUs [Member]
Unrecognized compensation expense related to unvested stock options granted under the plan				1,050		$ 1,050
Expense expected to recognize over the weighted-average remaining vesting period						6 months
Stock-based compensation				$ 254		$ 577
Sales Agreement [Member]
Number of shares sold under the agreement						305,619
Proceeds from sale of common stock approximately						$ 641
Sales commission and offering expenses						20
Available future sales						$ 7,378
Cantor Fitzgerald & Co [Member] \| Sales Agreement [Member]
Cash commission, percentage			3.00%

Stockholders' Equity and Stock-based Compensation - Schedule of Stock Option Plan Activity (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($) $ / shares shares
Weighted Avg. Exercise Price, Exercisable Ending Balance	$ 5.10
Stock Option Plan [Member]
Number of shares, Outstanding, Beginning balance \| shares	2,259,979
Number of shares, Options granted \| shares	281,000
Number of shares, Options exercised \| shares
Number of shares, Options cancelled/forfeit \| shares	(16,599)
Number of shares, Outstanding, Ending balance \| shares	2,524,380
Number of shares, Options exercisable \| shares	1,162,736
Number of shares, Options vested and expected to vest \| shares	2,387,300
Weighted Avg. Exercise Price, Outstanding, Beginning balance	$ 5.51
Weighted Avg. Exercise Price, Options granted	1.75
Weighted Avg. Exercise Price, Options exercised
Weighted Avg. Exercise Price, Options cancelled/forfeit	4.16
Weighted Avg. Exercise Price, Outstanding, Ending balance	5.10
Weighted Avg. Exercise Price, Exercisable Ending Balance	5.56
Weighted Avg. Exercise Price, Vested and expected to vest	$ 5.11
Weighted Avg. Remaining Contractual Life, Options outstanding	6 years 15 days
Weighted Avg. Remaining Contractual Life, Options exercisable	6 years 2 months 30 days
Weighted Avg. Remaining Contractual Life, Options vested and expected to vest	6 years 15 days
Aggregate Intrinsic Value, Options outstanding \| $	$ 188
Aggregate Intrinsic Value, Options exercisable \| $
Aggregate Intrinsic Value, Options vested and expected to vest \| $	$ 170

Stockholders' Equity and Stock-based Compensation - Schedule of Fair Value Assumption (Details) - Options Granted to Employees [Member]	6 Months Ended
	Jun. 30, 2018 $ / shares
Weighted-average fair value of options granted	$ 1.39
Expected volatility, minimum	88.00%
Expected volatility, maximum	126.00%
Risk-free interest rate, minimum	2.05%
Risk-free interest rate, maximum	3.00%
Dividend yield
Minimum [Member]
Expected terms (in years)	5 years 9 months 18 days
Maximum [Member]
Expected terms (in years)	6 years 1 month 6 days

Stockholders' Equity and Stock-based Compensation - Schedule of Shares Outstanding and Exercisable (Details)	6 Months Ended
	Jun. 30, 2018 $ / shares shares
Range of Exercise Prices, minimum	$ 1.47
Range of Exercise Prices, maximum	$ 42.80
Number of Options Outstanding \| shares	2,524,380
Weighted Average Remaining Contractual Life in Years	6 years 15 days
Weighted Average Exercise Price	$ 5.10
Number Exercisable \| shares	1,162,736
Weighted Average Exercisable Exercise Price	$ 5.56
Range One [Member]
Range of Exercise Prices, minimum	1.47
Range of Exercise Prices, maximum	$ 2.60
Number of Options Outstanding \| shares	857,125
Weighted Average Remaining Contractual Life in Years	8 years 3 months 4 days
Weighted Average Exercise Price	$ 2.04
Number Exercisable \| shares	290,966
Weighted Average Exercisable Exercise Price	$ 2.30
Range Two [Member]
Range of Exercise Prices, minimum	3.20
Range of Exercise Prices, maximum	$ 4.50
Number of Options Outstanding \| shares	539,906
Weighted Average Remaining Contractual Life in Years	7 years 5 months 9 days
Weighted Average Exercise Price	$ 3.97
Number Exercisable \| shares	357,398
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	101,536
Weighted Average Remaining Contractual Life in Years	5 years 26 days
Weighted Average Exercise Price	$ 5.98
Number Exercisable \| shares	99,346
Weighted Average Exercisable Exercise Price	$ 5.99
Range Four [Member]
Range of Exercise Prices, minimum	6.64
Range of Exercise Prices, maximum	$ 8.99
Number of Options Outstanding \| shares	1,020,783
Weighted Average Remaining Contractual Life in Years	3 years 6 months 14 days
Weighted Average Exercise Price	$ 7.98
Number Exercisable \| shares	409,996
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	2 years 1 month 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]	6 Months Ended
	Jun. 30, 2018 $ / shares shares
Number of RSUs unvested, Outstanding, Beginning balance	1,298,946
Number of RSUs granted	136,360
Number of RSUs vested	(91,446)
Number RSUs cancelled/forfeit
Number of RSUs unvested, Outstanding, Ending balance	1,343,860
Weighted Average Grant Date Fair Value, Beginning balance \| $ / shares	$ 2.42
Weighted Average Grant Date Fair Value, RSUs granted \| $ / shares	2.20
Weighted Average Grant Date Fair Value, RSUs vested \| $ / shares	3.94
Weighted Average Grant Date Fair Value, Ending balance \| $ / shares	$ 2.16

Stockholders' Equity and Stock-based Compensation - Schedule of Warrants Activity (Details) - Warrant [Member]	6 Months Ended
	Jun. 30, 2018 $ / shares shares
Number of shares, outstanding, beginning balance	6,264,215
Number of shares subject to warrants outstanding, granted
Number of shares subject to warrants outstanding, exercised
Number of shares subject to warrants outstanding, expired	(55,688)
Number of shares, outstanding and exercisable , ending balance	6,208,527
Weighted average remaining contractual life of the outstanding warrants in years	2 years 18 days
Weighted avg. Exercise price, outstanding, beginning balance \| $ / shares	$ 1.91
Weighted avg. Exercise price, expired \| $ / shares	5.25
Weighted avg. Exercise price, outstanding and exercisable, ending balance \| $ / shares	$ 1.90

Stockholders' Equity and Stock-based Compensation - Schedule of Warrants Outstanding and Warrants Exercisable (Details)	6 Months Ended
	Jun. 30, 2018 $ / shares shares
Warrant [Member]
Warrants Outstanding	6,208,527
Exercise Price \| $ / shares	$ 1.90
Warrants Exercisable	6,208,527
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
Warrants Issued to Investor Relations Consultant [Member]
Issue Date	Jul. 19, 2013
Warrants Outstanding	60,000
Exercise Price \| $ / shares	$ 8.50
Warrants Exercisable	60,000
Expiration Date	Jul. 19, 2018
Placement Agent Warrants [Member]
Issue Date	Dec. 27, 2016
Warrants Outstanding	210,313
Exercise Price \| $ / shares	$ 1.79
Warrants Exercisable	210,313
Expiration Date	Dec. 27, 2019
PIPE Investor Warrants [Member]
Issue Date	Dec. 27, 2016
Warrants Outstanding	5,157,828
Exercise Price \| $ / shares	$ 1.79
Warrants Exercisable	5,157,828
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

Stockholders' Equity and Stock-based Compensation - Schedule of Stock Based Compensation Granted to Employees Directors Consultants (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Stock based compensation related to equity instruments granted to related parties	$ 608	$ 667	$ 1,359	$ 1,617
Employees [Member] \| Selling, General and Administrative [Member]
Stock based compensation related to equity instruments granted to related parties	573	617	1,166	1,452
Directors [Member] \| Selling, General and Administrative [Member]
Stock based compensation related to equity instruments granted to related parties	35	50	85	105
Consultants [Member] \| Selling, General and Administrative [Member]
Stock based compensation related to equity instruments granted to related parties			$ 108	$ 60

Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended
	Jan. 31, 2018	Apr. 30, 2017	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2018
Royalty payments	$ 44			$ 64
Klarity License Agreement [Member]
Royalty payments			$ 103		$ 103
Klarity License Agreement [Member] \| Richard L. Lindstrom, M.D [Member]
Royalty payment description		Under the terms of the Klarity License Agreement, the Company is required to make royalty payments to Dr. Lindstrom ranging from 3% - 6% of net sales, dependent upon the final formulation of the Klarity Product sold.
Royalty payments					7
Klarity License Agreement [Member] \| Richard L. Lindstrom, M.D [Member] \| Initial Payment [Member]
Royalty payments		$ 50
Klarity License Agreement [Member] \| Richard L. Lindstrom, M.D [Member] \| Second Payment [Member]
Royalty payments		50
Net sales		50
Klarity License Agreement [Member] \| Richard L. Lindstrom, M.D [Member] \| Final Payment [Member]
Royalty payments		50
Net sales		$ 100
Sales and Marketing Agreements [Member]
Commission expense incurred			$ 343		$ 558
Sales and Marketing Agreements [Member] \| Minimum [Member]
Commission payments, percentage					10.00%
Sales and Marketing Agreements [Member] \| Maximum [Member]
Commission payments, percentage					14.00%

Segment Information and Concentrations (Details Narrative) - Segment	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting [Abstract]
Number of reportable segment			1
Maximum percentage of sales derived from large number of customer	10.00%	10.00%	10.00%	10.00%
Percentage of drug and chemical purchases from three main suppliers	54.00%	72.00%	52.00%	77.00%