Pernix Therapeutics 10-Q 9 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 06, 2018
Document Information [Line Items]
Entity Registrant Name	PERNIX THERAPEUTICS HOLDINGS, INC.
Entity Central Index Key	1,024,126
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		13,920,264
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,018

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 19,925	$ 32,820
Accounts receivable, net	35,275	45,317
Inventory, net	5,058	5,396
Prepaid expenses and other current assets	6,096	8,628
Income tax receivable	101	123
Total current assets	66,455	92,284
Property and equipment, net	681	752
Goodwill	12,100	12,100
Intangible assets, net	85,424	96,606
Other	1,973	2,263
Total assets	166,633	204,005
Current liabilities:
Accounts payable and accrued expenses	10,797	7,911
Accrued personnel expense	3,661	5,748
Accrued allowances	54,020	56,309
Other accrued expenses	3,324	6,909
Interest payable	10,524	10,612
Treximet Secured Notes - current, net	0	3,664
Other liabilities - current	3,765	2,648
Total current liabilities	86,091	93,801
Convertible notes - long-term, net	66,928	65,194
Exchangeable notes - long-term, net	9,016	7,975
Delayed draw term loan - long-term, net	28,183	27,248
Derivative liability	72	93
Contingent consideration	1,501	1,358
Treximet Secured Notes - long-term, net	162,853	163,887
Credit facility	14,185	14,185
Arbitration award	2,000	2,000
Other liabilities - long-term	822	2,521
Total liabilities	371,651	378,262
Commitments and contingencies (note 11)
Stockholders' deficit:
Preferred stock, $0.01 par value, authorized 10,000,000 shares; no shares issued and outstanding	0	0
Common stock, $.01 par value, 140,000,000 shares authorized, 12,065,487 and 11,841,173 shares issued and outstanding at June 30, 2018 and December 31, 2017	121	119
Additional paid-in capital	262,492	261,158
Accumulated other comprehensive loss	0	0
Accumulated deficit	(467,631)	(435,534)
Total stockholders' equity	(205,018)	(174,257)
Total liabilities and stockholders' equity	$ 166,633	$ 204,005

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Stockholders Equity
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock par value	$ 0.01	$ 0.01
Common stock shares authorized	140,000,000	140,000,000
Common stock shares issued	12,065,487	11,841,173
Common stock shares outstanding	12,065,487	11,841,173

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) GAIN (Unaudited) (USD $) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Net revenues	$ 21,088	$ 34,316	$ 49,227	$ 64,058
Costs and operating expenses:
Cost of product sales	5,569	10,493	14,530	20,533
Selling, general and administrative expense	18,257	19,018	35,540	39,293
Research and development expense	6	82	10	610
Depreciation and amortization expense	1,430	18,215	11,295	36,762
Change in fair value of contingent consideration	(120)	(886)	143	(540)
Restructuring costs	385	31	1,214	131
Total costs and operating expenses	25,527	46,953	62,732	96,789
Loss from operations	(4,439)	(12,637)	(13,505)	(32,731)
Other income (expense):
Interest expense	(9,530)	(9,209)	(18,990)	(18,168)
Gain on sale of assets	446	0	446	0
Change in fair value of derivative liability	40	270	21	(84)
Foreign currency transaction gain	(21)	0	(21)	0
Total other expense, net	(9,065)	(8,939)	(18,544)	(18,252)
Loss before income tax expense	(13,504)	(21,576)	(32,049)	(50,983)
Income tax expense	9	40	48	95
Net loss	(13,513)	(21,616)	(32,097)	(51,078)
Other comprehensive loss:
Unrealized gain during period, net of tax of $0 and $0, respectively	0	18	0	24
Comprehensive loss	$ (13,513)	$ (21,598)	$ (32,097)	$ (51,054)
Net Loss per share, basic	$ (1.13)	$ (2.16)	$ (2.70)	$ (5.10)
Net Loss per share, diluted	$ (1.13)	$ (2.16)	$ (2.70)	$ (5.10)
Weighted-average common shares, basic	11,913	10,016	11,907	10,016
Weighted-average common shares, diluted	11,913	10,016	11,907	10,016

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) GAIN (USD $) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Unrealized gains during period, tax	$ 0	$ 0	$ 0	$ 0

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Thousands	Preffered Stock	Common Stock	Additional Paid-In Capital	Treasury Stock	Retained Earnings (Deficit)	Accumulated Other Comprehensive Loss	Total
Beginning Balance, Amount at Dec. 31, 2016	$ 0	$ 100	$ 244,309	$ 0	$ (358,393)	$ (79)	$ (114,063)
Beginning Balance, Shares at Dec. 31, 2016	0	10,016
Conversion of restricted stock units, Amount	$ 0	$ 1	(113)	0	0	0	(112)
Conversion of restricted stock units, Shares		44
Compensation expense on share-based awards	0	$ 0	2,491	0	0	0	2,491
Issuance of convertible debt, Amount	0	$ 11	12,499	0	0	0	$ 12,510
Issuance of convertible debt, Shares		1,100
Issuance of common stock upon the exercise of stock options, Shares							0
Net proceeds from sale of shares, Amount	0	$ 7	1,972	0	0	0	$ 1,979
Net proceeds from sale of shares, Shares		681
Other comprehensive income (loss)	0	$ 0	0	0	0	79	79
Net loss	0	0	0	0	(77,141)	0	(77,141)
Ending Balance, Amount at Dec. 31, 2017	$ 0	$ 119	261,158	0	(435,534)	0	(174,257)
Ending Balance, Shares at Dec. 31, 2017	0	11,841
Conversion of restricted stock units, Amount	$ 0	$ 0	(2)	0	0	0	(2)
Conversion of restricted stock units, Shares		33
Compensation expense on share-based awards	0	$ 0	885	0	0	0	885
Net proceeds from sale of shares, Amount	0	$ 2	451	0	0	0	453
Net proceeds from sale of shares, Shares		191
Other comprehensive income (loss)	0	$ 0	0	0	0	0	0
Net loss	0	0	0	0	(32,097)	0	(32,097)
Ending Balance, Amount at Jun. 30, 2018	$ 0	$ 121	$ 262,492	$ 0	$ (467,631)	$ 0	$ (205,018)
Ending Balance, Shares at Jun. 30, 2018	0	12,065

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows used in operating activities:
Net loss	$ (32,097)	$ (51,078)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	169	185
Amortization of intangibles	11,182	36,637
Amortization of deferred financing costs	1,910	1,482
Accretion expense	2,468	2,702
PIK Interest	972	0
Stock compensation expense	885	1,404
Fair market value change in contingent consideration	143	(540)
Fair market value change in derivative liability	(21)	84
Gain on sale of assets	(446)	0
(Increase) decrease in operating assets:
Accounts receivable	10,042	5,483
Income tax receivable	22	962
Inventory	338	(707)
Prepaid expenses and other assets	2,532	851
Increase (decrease) in operating liabilities:
Accounts payable and accrued expenses	(1,739)	892
Accrued allowances	(2,289)	(5,222)
Interest payable	(458)	(595)
Other liabilities	(1,689)	(1,717)
Net cash used in operating activities	(8,076)	(9,177)
Cash flows from investing activities:
Proceeds from sale of non-core assets	446	0
Purchase of software and equipment	(98)	(3)
Net cash provided by (used in) investing activities	348	(3)
Cash flows from financing activities:
Payments on Treximet Secured Notes	(5,373)	(12,812)
Payment on financing costs	(221)	0
Payments on mortgages and capital leases	(24)	(42)
Proceeds from issuance of common stock, net of tax and costs	453	0
Shares withheld for the payment of taxes	(2)	0
Net cash used in financing activities	(5,167)	(12,854)
Net decrease in cash and cash equivalents	(12,895)	(22,034)
Cash and cash equivalents, beginning of period	32,820	36,375
Cash and cash equivalents, end of period	$ 19,925	$ 14,341

1. Company Overview

1. Company Overview	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
1. Company Overview	Note 1. Company Overview Pernix® Therapeutics Holdings, Inc. and subsidiaries (collectively, Pernix, the Company, we, our and us) is a specialty pharmaceutical company focused on the acquisition, development and commercialization of prescription drugs, primarily for the United States (U.S.) market. The Company is currently focused on the therapeutic areas of pain and neurology and has an interest in expanding into additional specialty segments. The Company promotes its branded products to health care professionals through its Pernix sales force and markets its generic portfolio through its wholly owned subsidiaries, Macoven™ Pharmaceuticals, LLC (Macoven) and Cypress Pharmaceuticals®, Inc. (Cypress). The Company's branded products include Zohydro® ER with BeadTek®, an extended-release opioid agonist indicated for the management of pain severe enough to require daily, around-the-clock, long-term opioid treatment and for which alternative treatment options are inadequate, Treximet® a medication indicated for the acute treatment of migraine attacks with and without aura, and Silenor® a non-controlled substance and approved medication for the treatment of insomnia characterized by difficulty with sleep maintenance. Subsequent Events Closing of Transactions Regarding Worldwide Rights to Contrave (naltrexone HCl / bupropion HCl) On April 17, 2018, a wholly owned subsidiary of the Company, Pernix Ireland Pain Designated Activity Company (PIP DAC) entered into a Commitment Letter (the Commitment Letter) pursuant to which PIP DAC committed to provide Nalpropion™ Pharmaceuticals, Inc. (Nalpropion) with $7.5 million in debt and/or equity capital to fund Nalpropion's purchase of certain assets of Orexigen® Therapeutics, Inc. (Orexigen) on the terms and conditions contained in the Commitment Letter. Nalpropion is a special purpose corporation jointly owned by PIP DAC and certain other co-investors. Nalpropion submitted a "stalking horse" bid to purchase certain assets of Orexigen, which filed a voluntary petition for relief under Chapter 11 of Title 11 of the United States Code, 11 U.S.C. §§ 101, et seq. in the United States Bankruptcy Court for the District of Delaware. On April 23, 2018, pursuant to a confidential non-binding term sheet agreement between the Company and its co-investors in Nalpropion (the Term Sheet), Nalpropion entered into a "stalking horse" asset purchase agreement to acquire certain assets of Orexigen, including worldwide rights to Contrave ® On June 22, 2018, the Company announced that no other bids for Orexigen's assets were received by the court-approved bid deadline and on July 27, 2018, Nalpropion acquired substantially all the assets and assumed certain liabilities of Orexigen. Concurrent with the closing of the transaction, Orexigen and Nalpropion entered into an amendment to the Asset Purchase Agreement that, among other things, reduced the purchase price to $73.5 million and provided for $5.0 million of the purchase price to be held back by Nalpropion to cover potential indemnification claims. On July 27, 2018, the Company funded PIP DAC's contribution of 10% of the capital required to fund the purchase price for Orexigen of $7.35 million and an incremental $1.82 million for working capital requirements, via its existing delayed draw term loan facility by and among PIP DAC, the lenders party thereto and Cantor Fitzgerald Securities, as agent (the Term Facility). The Company was also issued two purchase options that will enable it to acquire up to 49.9% and 100% of Nalpropion at specified time periods and purchase prices. The Company owns 10% of the equity and has one of three seats on the Board of Directors of Nalpropion. Nalpropion qualifies as a Variable Interest Entity (VIE) based on its governance structure and the Company will consolidate Nalpropion in its consolidated financial statements since the Company has the power to direct activities that most significantly impacts Nalpropion's economic performance. The Company will, for an initial term of two years, manage Nalpropion's operations and product distribution in the United States. As consideration for its efforts, the Company will receive a management fee equal to 5% of net sales derived by Nalpropion as well as reimbursement of certain shared services expenses at cost. The transaction is being accounted for using the acquisition method of accounting for business combinations in accordance with GAAP. Under this method, the total consideration transferred to consummate the acquisition is being allocated to the identifiable tangible and intangible assets acquired and liabilities assumed based on their respective fair values as of the closing date of the transaction. The acquisition method of accounting requires extensive use of estimates and judgments to allocate the consideration transferred to the identifiable tangible and intangible assets acquired and liabilities assumed. Accordingly, the allocation of the consideration transferred is preliminary and will be adjusted upon completion of the final valuation of the assets acquired and liabilities assumed. The final valuation is expected to be completed as soon as practicable but no later than 12 months after the closing date of the transaction. The consolidated financial statements for the three and six months ended June 30, 2018 and 2017 do not include the operations of Nalpropion. The results of operations for Nalpropion will be included in the Company's consolidated financial statements beginning on July 27, 2018. 2018 Exchange Transactions On August 1, 2018, the Company entered into an exchange agreement (2018 Exchange Agreement) with certain holders (Exchange Holders) of the Company's outstanding 12% Senior Secured Notes due 2020 (the Treximet Secured Notes) for newly issued shares of common stock of the Company (Common Stock) and shares of a newly created class of convertible preferred stock of the Company designated as 0% Series C Perpetual Convertible Preferred Stock (Convertible Preferred Stock) (Exchange Transactions). The Exchange Transactions included the following transactions: exchange of approximately $2.7 million aggregate principal amount of the Treximet Secured Notes for 1,204,586 shares of Common Stock, which included accrued and unpaid interest on the Treximet Secured Notes; and exchange of $8.0 million principal amount of the Treximet Secured Notes plus $100,000 of accrued and unpaid interest for 81,000 shares of Preferred Stock. These transactions closed on August 1, 2018. In addition, the 2018 Exchange Agreement affords the Exchange Holders the right to exchange up to an additional $65.1 million aggregate principal amount of the Treximet Secured Notes plus accrued and unpaid interest, until February 1, 2020. On August 1, 2018, the Company filed with the State Department of Assessments and Taxation of Maryland an Articles Supplementary (the Articles Supplementary) to the Company's Articles of Incorporation setting out the form and terms of the Convertible Preferred Stock. Exchange Holders of Convertible Preferred Stock have the right to convert their shares of Convertible Preferred Stock, in whole or in part, into shares of Common Stock at any time on or after August 1, 2018 (the Initial Issue Date). The Company has the right, at its option, to automatically convert all shares of Convertible Preferred Stock into shares of Common Stock, subject to the satisfaction of certain specified conditions. Upon any conversion of an Exchange Holder's Convertible Preferred Stock, the Company will deliver shares of Common Stock, calculated by multiplying the number of shares of Convertible Preferred Stock by 41.841 shares of Common Stock per share of Convertible Preferred Stock (the Conversion Rate). The Conversion Rate is initially equal to the number of shares of Common Stock convertible into Common Stock at a price $0.01 above the consolidated closing bid price on the Initial Issue Date, or $2.39 per share. Subsequent to the Initial Issue Date, an Exchange Holder is not able to convert Convertible Preferred Stock into Common Stock to the extent that the Common Stock held by such Exchange Holder and its affiliates would exceed 4.985% of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock. Moreover, at any time on or after the Initial Issue Date, the Company has the right to redeem the Convertible Preferred Stock, in whole or in part, at a redemption price equal to 100% of the liquidation preference of the shares to be redeemed, plus any accrued and unpaid dividends. Except as required by law or the Articles Supplementary, the Exchange Holders of Convertible Preferred Stock have no voting rights (other than with respect to certain matters regarding the Convertible Preferred Stock). In accordance with the Articles Supplementary, the Company will not authorize, declare or pay regular or special dividends or other distributions (whether in the form of cash, shares, indebtedness or any other property or asset, but excluding any purchase, redemption or other acquisition of shares) on the shares of the Common Stock, unless simultaneously with the authorization, declaration or payment, it authorizes, declares or pays, as applicable, dividends or other distributions on the Convertible Preferred Stock. The Equitization Exchange Agreements On August 1, 2018, the Company entered into separate Equitization Exchange Agreements (the Equitization Exchange Agreements) by and among Pernix and certain holders (each, an Equitization Holder, and collectively the Equitization Holders) of Pernix's Treximet Secured Notes. Pursuant to the Equitization Exchange Agreements, the Company issued 650,190 shares of its Common Stock in exchange for approximately $1.5 million aggregate principal amount of Treximet Secured Notes held by such Equitization Holders plus accrued and unpaid interest thereon (Equitization Transaction). Amended ABL Facility and Term Facility On August 1, 2018 the Company entered into an amendment of its ABL Facility (as defined below) (together with the Term Facility, the Credit Facilities), as well as an amendment to the Term Facility. These amendments were made to permit the exchange of the Treximet Secured Notes into Common Stock in the Exchange Transactions and Equitization Transaction, and to amend certain terms of the Credit Facilities, including (i) certain changes to the borrowing base calculation under the ABL Facility that are intended to improve the Company's borrowing capacity under the ABL Facility and that will also permit the Company, among other things, to include Contrave inventory owned by the Company in the calculation of the borrowing base, (ii) changes to permit the use of subsequent draws under the Term Facility for working capital or other general corporate purposes, (iii) a reduction in the commitments under the ABL Facility from $40.0 million to $32.5 million, and (iv) changes to the interest payment provisions under the Term Facility increasing the minimum percentage of interest that must be paid in cash to 6.00% per annum from 4.50% per annum.

2. Basis of Presentation and Su

2. Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
2. Basis of Presentation and Summary of Significant Accounting Policies	Note 2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements included herein have been prepared by the Company in accordance with generally accepted accounting principles in the United States (GAAP) and under the rules and regulations of the United States Securities and Exchange Commission (SEC) for interim reporting. In management's opinion, the interim financial data presented includes all adjustments (consisting solely of normal recurring items) necessary for fair presentation. All intercompany accounts and transactions have been eliminated. Certain information required by GAAP has been condensed or omitted in accordance with rules and regulations of the SEC. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for any future period or for the year ending December 31, 2018. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and the notes thereto for the year ended December 31, 2017, included in Pernix's 2017 Annual Report on Form 10-K filed with the SEC. The preparation of the unaudited condensed consolidated financial statements requires management to make estimates and assumptions relating to reporting of the assets and liabilities and the disclosure of contingent assets and liabilities to prepare these unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period in conformity with GAAP. Significant estimates of the Company include: revenue recognition, sales allowances such as returns on product sales, government program rebates, customer coupon redemptions, wholesaler/pharmacy discounts, product service fees, rebates and chargebacks, sales commissions, amortization, stock-based compensation, the determination of fair values of assets and liabilities in connection with business combinations, and deferred income taxes. Actual results could differ from these estimates. Certain prior period amounts have been reclassified to conform to the current period presentation including reclassifying capitalized debt issuance costs of approximately $1.5 million from "Prepaid expenses and other current assets" to the Company's long-term debt instruments within "Total liabilities" except for those related to revolving credit facilities. This reclassification had no effect on previously reported results of operations, financial position or cash flows. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers The Company's new revenue recognition policy is as follows: Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company generally enters into contracts to sell approved branded and generic pharmaceutical drugs. Product Sales Product sales revenue is recognized at the estimated consideration to be received when control has transferred to the customer, which is typically on delivery to the customer or, in the case of products that are subject to consignment agreements, when the customer removes product from the Company's consigned inventory location for shipment directly to a patient. Payment terms vary by customer and the products or services offered and is generally required in a term ranging from 30 to 90 days from date of shipment or satisfaction of the performance obligation. Significant Judgments Product sales contracts provide the customer with the right to return the product and also provide for a variety of discounts and allowances including, specialty distributor fees, wholesaler fees, prompt payment discounts, government rebates, government chargebacks, coupon programs and rebates under managed care plans which are accounted for as variable consideration. Returns are estimated through comparison of historical return data to their related sales on a production lot basis. Historical rates of return are determined for each product and are adjusted for known or expected changes in the marketplace specific to each product, when appropriate. Judgment is required to estimate the appropriate adjustments for variable consideration which is based on sales or invoice data, contractual terms, historical utilization rates, new information regarding changes in these programs' regulations and guidelines that would impact the amount of the actual rebates, the Company's expectations regarding future utilization rates for these programs and channel inventory data. Contract Balances The timing of customer invoicing generally does not differ from the timing of revenue recognition. The Company records provisions for returns, specialty distributor fees, wholesaler fees, government rebates, coupon programs and rebates under managed care plans are included within current liabilities in the Company's consolidated balance sheets. Provision for prompt payment discounts are generally shown as a reduction in accounts receivable. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting, In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business In August 2016, the FASB issued ASU 2016-15 Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities Recently Issued Accounting Standards, Not Adopted as of June 30, 2018 In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the Company's consolidated financial statements. Significant Customers The Company's customers consist of drug wholesalers, specialty pharmacies, retail drug stores, mass merchandisers and grocery store pharmacies in the United States. The Company primarily sells its products directly to large national drug wholesalers, which in turn resell the products to smaller or regional wholesalers, retail pharmacies, chain drug stores, and other third parties. The following tables list the Company's customers that individually comprised greater than 10% of total gross product sales for the three and six months ended June 30, 2018 and 2017, or 10% of total accounts receivable as of June 30, 2018 and December 31, 2017. Gross Product Sales: Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 McKesson Corporation 32% 34% 33% 34% AmerisourceBergen Drug Corporation 27% 33% 27% 31% Cardinal Health, Inc. 21% 23% 24% 25% Total 80% 90% 84% 90% Accounts Receivable, net: June 30, December 31, 2018 2017 Cardinal Health, Inc. 38% 31% McKesson Corporation 30% 29% AmerisourceBergen Drug Corporation 23% 27% Total 91% 87%

3 Earnings per Share

3 Earnings per Share	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
3. Earnings per Share	Note 3. Earnings per Share Basic net income (loss) per common share is the amount of net income (loss) for the period divided by the weighted average shares of Common Stock outstanding during the reporting period. Diluted income (loss) per common share is the amount of income (loss) for the period plus interest expense on convertible debt divided by the sum of weighted average shares of Common Stock outstanding during the reporting period and weighted average shares that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares. The following table sets forth the computation of basic and diluted net loss per share (in thousands except per share data): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Numerator: Net loss $ (13,513) $ (21,616) $ (32,097) $ (51,078) Denominator: Weighted-average common shares, basic 11,913 10,016 11,907 10,016 Dilutive effect of stock options - - - - Weighted-average common shares, diluted $ 11,913 $ 10,016 $ 11,907 $ 10,016 Net loss per share, basic and diluted $ (1.13) $ (2.16) $ (2.70) $ (5.10) The following table sets forth the potential common shares that could potentially dilute basic income per share in the future that were not included in the computation of diluted income (loss) per share because to do so would have been anti-dilutive for the periods presented (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 4.25% Convertible Notes 682 1,133 682 1,133 Exchangeable Notes 6,499 - 6,499 - Stock options and restricted stock units 1,303 615 1,295 581 Warrants 4 33 4 33 Total potential dilutive effect 8,488 1,781 8,480 1,747

4. Fair Value Measurement

4. Fair Value Measurement	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
4. Fair Value Measurement	Note 4. Fair Value Measurement The Company's financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels are as follows: Level 1- Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2- Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). Level 3- Inputs are unobservable and reflect the Company's assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available. Summary of Assets Recorded at Fair Value The Company's cash equivalents are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices or broker or dealer quotations for similar assets. The Company had no financial assets that are required to be measured at fair value as of June 30, 2018 and December 31, 2017. There were no transfers of assets or liabilities between Level 1 and Level 2 during the three and six months ended June 30, 2018 and 2017. The carrying amounts reflected in the unaudited condensed consolidated balance sheets for certain short-term financial instruments including accounts receivable, accounts payable, accrued expenses, and other liabilities approximate fair value due to their short-term nature. Summary of Liabilities Recorded at Carrying Value and Fair Value The 4.25% Convertible Notes, Exchangeable Notes, Delayed Draw Term Loan and the Treximet Secured Notes (each, as defined below in Note 8) are recorded at carrying value. The derivative liability and contingent consideration are recorded at fair value. Within the hierarchy of fair value measurements, the derivative liability and contingent consideration are Level 3 fair values. The fair and carrying value of our debt instruments are detailed as follows (in thousands): As of June 30, 2018 As of December 31, 2017 Fair Carrying Fair Carrying Value Value Value Value 4.25% Convertible Notes $ 37,473 $ 66,928 $ 36,208 $ 65,194 Exchangeable Notes 21,207 9,016 21,375 7,975 Delayed draw term loan 30,601 28,183 30,300 27,248 Derivative liability 72 72 93 93 Contingent consideration 1,501 1,501 1,358 1,358 Treximet Secured Notes 139,395 162,853 139,201 167,551 Total $ 230,249 $ 268,553 $ 228,535 $ 269,419 4.25% Convertible Notes, Exchangeable Notes and Delayed Draw Term Loan The fair values of the 4.25% Convertible Notes, the Exchangeable Notes and the Delayed Draw Term Loan were estimated using the (i) terms of the agreements; (ii) rights, preferences, privileges, and restrictions of the underlying security; (iii) time until any restriction(s) are released; (iv) fundamental financial and other characteristics of the Company; (v) trading characteristics of the underlying security (exchange, volume, price, and volatility); (vi) valuation of derivative liability; and (vii) precedent sale transactions. Given the nature and the variable interest rates under the ABL Facility (as defined below), the fair value of borrowings under this facility approximated their carrying value as of June 30, 2018. Derivative Liability The fair value of the derivative liability was determined using a "with and without" conversion scenario. Under this methodology, valuations are performed on the 4.25% Convertible Notes inclusive of all terms as well as for a convertible note that has identical terms and features but excluding the conversion option. The difference between the two valuations is equal to the fair value of the conversion option. Significant increases or decreases in these inputs would result in a significant change in the fair value of the derivative liability. Contingent Consideration The fair value of contingent consideration is based on two components - a regulatory milestone and commercial milestone. For the regulatory milestone, the expected regulatory earn out payment was discounted taking into account (a) the Company's cost of debt, (b) the expected timing of the payment and (c) subordinate nature of the earn out obligation. The fair value of the commercial milestone was determined using a Monte Carlo simulation. This simulation assumed a risk-neutral framework, whereby future net revenue was simulated over the earn out period using the Geometric Brownian Motion. For each simulation path, the earn out payments were calculated based on the achievement of the revenue milestone and then were discounted to the valuation date. Significant increases or decreases in these unobservable inputs and/or the probability of achievement of these milestones would result in a significant change in the fair value of the contingent consideration. Treximet Secured Notes The fair value of the Company's Treximet Secured Notes was estimated using a discounted cash flow model. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the Company's assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following table provides a reconciliation of the beginning and ending balances for each category therein, and gains or losses recognized during the periods (in thousands). As of and for the As of and for the Six months Ended Six months Ended June 30, 2018 June 30, 2017 Derivative liability: Balance at beginning of year $ 93 $ 230 Remeasurement adjustments - loss (gains) included in earnings (21) 84 Ending Balance $ 72 $ 314 Contingent consideration: Balance at beginning of year $ 1,358 $ 2,403 Remeasurement adjustments - loss (gains) included in earnings 143 (540) Ending Balance $ 1,501 $ 1,863

5. Inventory

5. Inventory	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
5. Inventory	Note 5. Inventory Inventories are stated at the lower of cost or market. Inventories consist of the following (in thousands): June 30, December 31, 2018 2017 Raw materials $ 656 $ 727 Work-in-process - 238 Finished goods 5,868 5,889 Inventory, gross 6,524 6,854 Reserve for obsolescence (1,466) (1,458) Inventory, net $ 5,058 $ 5,396

6. Goodwill and Intangible Asse

6. Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
6. Goodwill and Intangible Assets	Note 6. Goodwill and Intangible Assets Goodwill consists of the following (in thousands): Amount Balance at December 31, 2016 $ 30,600 Goodwill impairment (18,500) Balance at December 31, 2017 12,100 Goodwill impairment - Balance at June 30, 2018 $ 12,100 The Company performs an impairment test of goodwill annually in the fourth quarter of each fiscal year unless there are triggering events that would require such analysis during an interim period. There were no triggering events during the six months ended June 30, 2018. For the year ended December 31, 2017, the carrying value of the reporting unit exceeded its fair value by $18.5 million and accordingly an impairment charge of $18.5 million was recorded in 2017. The decline in the estimated fair value of the reporting unit resulted from management's review of its then-current forecast. As a result of this review, management lowered its forecast for Zohydro ER. The lower projected operating results reflected changes in assumptions related to revenue, market trends, cost structure, and other expectations about the anticipated short-term and long-term operating results of the business. Intangible assets consist of the following (dollars in thousands): As of June 30, 2018 Weighted Average Gross Carrying Accumulated Net Carrying Life Remaining Amount Impairment Amortization Amount Unamortized intangible assets: In-process research and development Indefinite $ 11,000 $ - $ - $ 11,000 Total unamortized intangible assets 11,000 - - 11,000 Amortized intangible assets: Product licenses 5.0 years 2,846 - (1,756) 1,090 Supplier contracts 2.8 years 583 - (253) 330 Acquired developed technologies 14.7 years 364,686 - (291,682) 73,004 Total amortized intangible assets 368,115 - (293,691) 74,424 Total intangible assets $ 379,115 $ - $ (293,691) $ 85,424 As of December 31, 2017 Weighted Average Gross Carrying Accumulated Net Carrying Life Remaining Amount Impairment Amortization Amount Unamortized intangible assets: In-process research and development Indefinite $ 11,000 $ - $ - $ 11,000 Total unamortized intangible assets 11,000 - - 11,000 Amortized intangible assets: Product licenses 5.4 years 2,846 - (1,623) 1,223 Supplier contracts 3.3 years 583 - (194) 389 Acquired developed technologies 13.7 years 364,686 - (280,692) 83,994 Total amortized intangible assets 368,115 - (282,509) 85,606 Total intangible assets $ 379,115 $ - $ (282,509) $ 96,606 As of June 30, 2018, the weighted average remaining life for our definite-lived intangible assets in total was approximately 14.5 years. In process research and development (IPR&D) will be amortized on a straight-line basis over its useful life once the receipt of regulatory approval is obtained. Estimated amortization expense related to intangible assets with definite lives for each of the five succeeding years and thereafter is as follows (in thousands): Amount 2018 (July - December) $ 2,754 2019 5,507 2020 5,420 2021 5,325 2022 5,286 Thereafter 50,132 Total $ 74,424 Amortization expense was $1.4 million and $11.2 million for the three months and six months ended June 30, 2018, respectively, of which, $27,000 and $56,000 are included in cost of product sales in the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2018, respectively. Amortization expense was $18.1 million and $36.6 million for the three and six months ended June 30, 2017, respectively, of which, $29,000 and $58,000 are included in cost of product sales in the unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2017, respectively

7. Accrued Allowances

7. Accrued Allowances	6 Months Ended
	Jun. 30, 2018
Accrued Liabilities [Abstract]
7. Accrued Allowances	Note 7. Accrued Allowances Accrued allowances consist of the following (in thousands): June 30, December 31, 2018 2017 Accrued returns allowance $ 25,218 $ 21,681 Accrued price adjustments 11,450 10,766 Accrued managed care rebates 11,358 17,221 Accrued government program rebates 5,994 6,641 Total $ 54,020 $ 56,309

8. Debt and Lines of Credit

8. Debt and Lines of Credit	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
8. Debt and Lines of Credit	Note 8. Debt and Lines of Credit Debt, net of discounts and deferred financing costs, consists of the following (in thousands): As of June 30, 2018 As of December 31, 2017 Principal Note Discount Deferred Financing Costs Net of Discount and Deferred Financing Costs Principal Note Discount Deferred Financing Costs Net of Discount and Deferred Financing Costs 4.25% Convertible Notes $ 78,225 $ (9,588) $ (1,709) $ 66,928 $ 78,225 $ (11,060) $ (1,971) $ 65,194 Exchangeable Notes 35,743 (23,450) (3,277) 9,016 35,743 (24,363) (3,405) 7,975 Delayed Draw Term Loan 30,601 - (2,418) 28,183 30,000 - (2,752) 27,248 Treximet Secured Notes - Long Term 166,697 - (3,844) 162,853 166,697 - (2,810) 163,887 Treximet Secured Notes - Short Term - - - - 5,373 - (1,709) 3,664 ABL Credit Agreement 14,185 - - 14,185 14,185 - - 14,185 Total outstanding debt $ 325,451 $ (33,038) $ (11,248) $ 281,165 $ 330,223 $ (35,423) $ (12,647) $ 282,153 Less: Current portion of long-term debt - 3,664 Long-term debt outstanding, net $ 281,165 $ 278,489 Convertible Notes: 4.25% Convertible Notes On April 22, 2015, the Company issued $130.0 million aggregate principal amount 4.25% Convertible Notes. The 4.25% Convertible Notes mature on April 1, 2021, unless earlier converted, redeemed or repurchased. Interest on the 4.25% Convertible Notes is payable on April 1 and October 1 of each year, beginning October 1, 2015. The 4.25% Convertible Notes are governed by the terms of an indenture, between the Company and Wilmington Trust, National Association, each of which were entered into on April 22, 2015. The Company may not redeem the 4.25% Convertible Notes prior to April 6, 2019. However, the holders may convert their 4.25% Convertible Notes at any time prior to the close of business on the business day immediately preceding January 1, 2021 only under certain circumstances. The effective interest rate on the 4.25% Convertible Notes, including debt issuance costs and bifurcated conversion option derivative (discussed below), is 10.4%. The Company is required to separate the conversion option in the 4.25% Convertible Notes under Accounting Standards Codification (ASC) 815, Derivatives and Hedging Interest expense was $1.7 million and $3.4 million for the three and six months ended June 30, 2018, respectively, and $2.5 million and $5.0 million for the three and six months ended June 30, 2017, respectively, related to the 4.25% Convertible Notes. Interest expense includes amortization of deferred financing costs and accretion of debt discount. Change in fair value of derivative liability was a benefit of $40,000 and $21,000 for the three and six months ended June 30, 2018, respectively, and a benefit of $270,000 and an expense of $84,000 for the three and six months ended June 30, 2017, respectively. Accrued interest on the 4.25% Convertible Notes was approximately $831,000 as of June 30, 2018 and December 31, 2017. As a result of the Exchangeable Notes transaction during the third quarter of 2017, the Company recorded $14.7 million as gain from exchange of debt for the three months ended September 30, 2017. Exchangeable Notes On July 20, 2017, the Company entered into an exchange agreement (the 2017 Exchange Agreement) with certain holders of its 4.25% Convertible Notes (Holders) pursuant to which $51.8 million of aggregate principal amount of its 4.25% Convertible Notes held by the Holders were exchanged for (i) $36.2 million aggregate principal amount of 4.25%/5.25% Exchangeable Senior Notes due 2022 (the Exchangeable Notes), issued by PIP DAC pursuant to an Indenture, dated July 21, 2017 (the Exchangeable Notes Indenture), among PIPL, the guarantors party thereto (the Guarantors), and Wilmington Trust, National Association, as Trustee and (ii) 1,100,498 shares of Common Stock. The Exchangeable Notes issued under the Exchangeable Notes Indenture are guaranteed by the Company and each other subsidiary thereof. The Exchangeable Notes are senior, unsecured obligations of PIP DAC. Interest on the Exchangeable Notes will be paid in cash or a combination of cash and in-kind interest at PIP DAC's election. Interest paid in cash (the All Cash Method) will accrue at a rate of 4.25% per annum, while interest paid in a combination of cash and in-kind will accrue at a rate of 5.25% per annum, with 2.25% per annum (plus additional interest, if any) capitalized to the principal amount of the Exchangeable Notes, and the balance paid in cash. The maturity date of the Exchangeable Notes Indenture is July 15, 2022. The Exchangeable Notes initially are exchangeable into shares of Common Stock at an exchange price per share of $5.50 (the Exchange Price). The 2017 Exchange Agreement allowed the Company to reduce the principal amount of its outstanding indebtedness through the exchange of the Holders' 4.25% Convertible Notes for a smaller principal amount of the Exchangeable Notes. The principal amount of the Exchangeable Notes may be reduced if the Holders thereof exchange their Exchangeable Notes for shares of Common Stock. The Exchangeable Notes Indenture will provide capacity to refinance up to an additional $25.0 million principal amount of the 4.25% Convertible Notes, which refinancing could also provide an opportunity to further reduce the principal amount of the Company's outstanding indebtedness. The outstanding borrowings of the Exchangeable Notes were paid down by $500,000 in November 2017 with a portion of the proceeds from the sale of certain non-core assets. Interest expense was $1.0 million and $2.0 million for the three and six months ended June 30, 2018, respectively, and included amortization of deferred financing costs and accretion of debt discount. Accrued interest on the Exchangeable Notes was approximately $860,000 and $675,000 as of June 30, 2018 and December 31, 2017, respectively. Term Facility: On July 21, 2017 PIP DAC entered into a term loan credit agreement (the Delayed Draw Term Loan, the Term Facility or DDTL) with Cantor Fitzgerald Securities, as agent Securities, as agent, and the lenders party thereto to obtain the DDTL. $30.0 million under the DDTL was drawn on July 21, 2017 in connection with the closing of several refinancing transactions and the remaining $15.0 million will be available for subsequent draws for certain specified purposes, including to finance certain acquisitions, subject to conditions set forth in the Term Credit Agreement. The DDTL includes an incremental feature that allows PIP DAC, with the consent of the requisite lenders under the Term Facility, to obtain up to an additional $20.0 million in term loan commitments. Interest on the loans will accrue either in cash or a combination of cash and in kind interest, at PIP DAC's election. Cash interest will accrue at a rate of 7.50% per annum, while the combination of cash and in-kind interest will accrue at a rate of 8.50% per annum, with up to 4.00% per annum added to the principal amount of loans and the balance paid in cash. The DDTL will mature on July 21, 2022. During the first quarter of 2018, PIP DAC elected the PIK option in lieu of making scheduled interest payments. The election increased the principal due on the DDTL by $601,000 as of June 30, 2018. On July 27, 2018, PIP DAC drew $9.2 million under the DDTL. The proceeds were used to fund the Company's investment in Nalpropion for Nalpropion's purchase of certain assets of Orexigen and for working capital requirements. PIP DAC also entered into a mortgage debenture with Cantor Fitzgerald Securities as agent, pursuant to which PIP DAC's obligations under the DDTL will be secured by substantially all of the assets of PIP DAC and its future-acquired subsidiaries. Interest expense was approximately $816,000 and $1.6 million for the three and six months ended June 30, 2018 related to the DDTL and includes amortization of deferred financing costs. Accrued interest on the DDTL was approximately $489,000 and $484,000 as of June 30, 2018 and December 31, 2017, respectively. On August 1, 2018 the Company entered into an amendment of its Term Facility. These amendments were made to permit the exchange of the Treximet Secured Notes into Common Stock in the Exchange Transactions and Equitization Transaction, and to amend certain terms of the Credit Facilities, including (i) changes to permit the use of subsequent draws under the Term Facility for working capital or other general corporate purposes, and (ii) changes to the interest payment provisions under the Term Facility increasing the minimum percentage of interest that must be paid in cash to 6.00% per annum from 4.50% per annum. Secured Notes: Treximet Note Offering On August 19, 2014, the Company issued $220.0 million aggregate principal amount of its Treximet Secured Notes pursuant to an Indenture (the August 2014 Indenture) dated as of August 19, 2014 among the Company, certain of its subsidiaries (the Treximet Guarantors) and U.S. Bank National Association (the August 2014 Trustee), as trustee and collateral agent. On April 13, 2015, the Company amended the August 2014 Indenture to allow the Company to, among other things, incur up to $42.2 million of additional debt. On December 29, 2017, the Company and the August 2014 Trustee entered into a third supplemental indenture to amend the August 2014 Indenture to clarify the definition of "Net Sales", as such term is defined in the August 2014 Indenture and resulted in the deferral of $3.2 million of principal payments until maturity of the notes. The Treximet Secured Notes mature on August 1, 2020 and bear interest at a rate of 12% per annum, payable in arrears on February 1 and August 1 of each year (each, a Payment Date), beginning on February 1, 2015. On each Payment Date, commencing August 1, 2015, the Company began paying installments of principal of the Treximet Secured Notes in an amount equal to 50% of net sales of Treximet for the two consecutive fiscal quarters immediately preceding such Payment Date (less the amount of interest paid on the Treximet Secured Notes on such Payment Date). At each month-end beginning with January 2015, the net sales of Treximet will be calculated, the monthly interest accrual amount will then be deducted from the net sales and this resulting amount will be recorded as the current portion of the Treximet Secured Notes. If the Treximet net sales less the interest due at the end of each six-month period does not result in any excess over the interest due, no principal payment must be paid at that time. The remaining balance outstanding on the Treximet Secured Notes will be due on the maturity date, which is August 1, 2020. As of December 31, 2017, the Company classified $5.4 million, of the Treximet Secured Notes as a current liability and $166.7 million as a non-current liability at both June 30, 2018 and December 31, 2017. The Treximet Secured Notes are secured by a continuing first-priority security interest in substantially all of the assets of the Company and the Treximet Guarantors related to Treximet other than inventory and certain inventory related assets, including accounts arising from the sale of the inventory. Interest expense related to the Treximet Secured Notes was $5.5 million and $11.0 million for the three and six months ended June 30, 2018, respectively, and was $5.7 million and $11.6 million for the three and six months ended June 30, 2017, respectively. Interest expense includes amortization of deferred financing costs. Accrued interest on the Treximet Secured Notes was approximately $8.3 million and $8.6 million as of June 30, 2018 and December 31, 2017, respectively. On August 1, 2018, the Company entered into the 2018 Exchange Agreement with the Exchange Holders for newly issued shares of Common Stock and shares of Convertible Preferred Stock. The exchange transactions closed on August 1, 2018 and were as follows: exchange of approximately $2.7 million aggregate principal amount of the Treximet Secured Notes for 1,204,586 shares of Common Stock which includes accrued and unpaid interest on the Treximet Secured Notes; exchange of $8.0 million principal amount of the Treximet Secured Notes plus $100,000 of accrued and unpaid interest for 81,000 shares of Convertible Preferred Stock. The 2018 Exchange Agreement affords the Exchange Holders the right to exchange up to an additional $65.1 million aggregate principal amount of the Treximet Secured Notes plus accrued and unpaid interest, until February 1, 2020. On August 1, 2018, the Company entered into separate Equitization Exchange Agreements by and among Pernix and certain Equitization Holders of Treximet Secured Notes. Pursuant to the Equitization Exchange Agreements, the Company issued 650,190 shares of its Common Stock in exchange for approximately $1.5 million aggregate principal amount of Treximet Secured Notes held by such Equitization Holders plus accrued and unpaid interest thereon. This transaction closed on August 1, 2018. Credit Facility : Cantor Fitzgerald On July 21, 2017, Pernix and certain subsidiaries of Pernix as borrowers and guarantors (the ABL Borrowers) and PIP DAC, Pernix Ireland Limited, Pernix Holdco 1, LLC, Pernix Holdco 2, LLC and Pernix Holdco 3, LLC as additional guarantors (the ABL Guarantors), entered into an asset-based revolving credit agreement (the ABL Credit Agreement) with Cantor Fitzgerald Securities, as agent (the ABL Agent) and the lenders party thereto to obtain a five-year $40 million asset-based revolving credit facility (the ABL Facility). On April 23, 2018, the Company entered into an amendment, effective as of April 12, 2018, to modify the borrowing base formula which determines the Company's capacity to draw on the ABL Facility, which could increase such capacity. The amendment also removed concentration limits for accounts receivable due from individual customers or other account debtors that may be included in the borrowing base. The ABL Borrowers' obligations under the ABL Credit Agreement are guaranteed by the ABL Borrowers and the ABL Guarantors are secured by, among other things, the ABL Borrowers' cash, inventory and accounts receivable, in each case pursuant to a guaranty and security agreement between the ABL Borrowers, ABL Guarantors and Cantor Fitzgerald Securities as agent. Borrowings under the ABL Credit Agreement bear interest at the rate of LIBOR plus 7.50%, payable monthly, in addition to a commitment fee on any undrawn commitments at a rate per annum of 0.25%, payable monthly. The ABL Credit Agreement contains representations and warranties, affirmative and negative covenants, and events of default applicable to the Company, the other ABL Borrowers, the ABL Guarantors and their respective subsidiaries that are customary for credit facilities of this type. The ABL Credit Agreement will mature on July 21, 2022. Interest expense was $499,000 and $978,000 for the three and six months ended June 30, 2018 related to the ABL Credit Agreement and includes amortization of deferred financing costs. Accrued interest on the ABL Credit Agreement was approximately $9,000 and $19,000 as of June 30, 2018 and December 31, 2017, respectively. As of June 30, 2018, unamortized debt issuance costs of $581,000 and $1.8 million are recorded on the unaudited consolidated balance sheets in Prepaid expenses and other currents assets and Other assets, respectively, and are being amortized to interest expense over the life of the agreement. As of December 31, 2017, $581,000 and $2.1 million of unamortized debt issuance costs are recorded on the unaudited consolidated balance sheets in Prepaid expenses and other currents assets and Other assets, respectively. On August 1, 2018 the Company entered into an amendment of the ABL Facility. The amendment provides for (i) certain changes to the borrowing base calculation under the ABL Facility that are intended to improve the Company's borrowing capacity under the ABL Facility and that will also permit the Company, among other things, to include Contrave inventory owned by the Company in the calculation of the borrowing base, and (ii) a reduction in the commitments under the ABL Facility from $40.0 million to $32.5 million. Wells Fargo On August 21, 2015, the Company entered into the Credit Agreement with Wells Fargo, as Administrative Agent and the lenders party thereto for a $50.0 million, three-year senior secured revolving credit facility (the Wells Fargo Credit Facility). The ABL Facility entered into on July 21, 2017 replaced the Wells Fargo Credit Facility and the Company used the proceeds from the ABL Facility to repay the outstanding obligation of the Wells Fargo Credit Facility. Interest expense including amortization of deferred financing costs related to the Wells Fargo Credit Facility amounted to $478,000 and $606,000, for the three and six months ending June 30, 2017, respectively. The following table represents the future maturity schedule of the outstanding debt and line of credit at June 30, 2018 (in thousands): Amount 2018 (July - December) $ - 2019 - 2020 166,697 2021 78,225 2022 80,529 Thereafter - Total maturities 325,451 Less: Note discount (33,038) Deferred financing costs (11,248) Total outstanding debt, net $ 281,165

9. Stockholders' Equity

9. Stockholders' Equity	6 Months Ended
	Jun. 30, 2018
Stockholders Equity
9. Stockholders' Equity	Note 9. Stockholders' Equity Convertible Preferred Stock In connection with the 2018 Exchange Agreement, the Company reclassified and designated 1,500,000 shares of the authorized but unissued preferred stock of the Company to the Convertible Preferred Stock, see Note 1, Company Overview for more information. Controlled Equity Offering On November 7, 2014, the Company entered into a controlled equity offering sales agreement (the Sales Agreement) with Cantor Fitzgerald & Co. (Cantor) pursuant to which the Company could issue and sell shares of its Common Stock having an aggregate offering price of up to one hundred million dollars, pursuant to an effective registration statement on Form S-3 (No. 333-200005), from time to time through Cantor, acting as agent On November 22, 2017, the Company filed a registration statement on Form S-3 (No. 333-221717) to replace the previously-filed registration statement, which was subsequently declared effective by the SEC on December 18, 2017.. The Company will pay Cantor a commission rate of 3.0% of the gross sales price per share of the Common Stock sold through Cantor as agent under the Sales Agreement. During the six months ended June 30, 2018, the Company sold 191,170 shares of Common Stock under the Sales Agreement at an average price of approximately $2.51 per share for gross proceeds of $480,000 and net proceeds of $453,000, after deducting commission and fees. The Company did not sell any shares of Common Stock during the six months ended June 30, 2017. As of June 30, 2018, approximately $77.0 million of Common Stock remained available to be sold under this facility, subject to certain limitation to the extent the Company continues to have a public float of less than $75.0 million. Warrants As of June 30, 2018, the Company has approximately 4,380 outstanding Common Stock warrants in connection with the acquisition of Somaxon Pharmaceuticals, Inc. (Somaxon) in March 2013, with exercise prices ranging from $83.73 to $258.21 and expiration dates ranging from August 2021 through December 2021. Share-Based Compensation Plans In November 2017, the Company's shareholders approved the 2017 Omnibus Incentive Plan (the 2017 Plan) for future equity awards granted by the Company. Subject to the adjustments described below, the maximum number of shares of Common Stock that will be available for issuance under the 2017 Omnibus Incentive Plan will be equal to the sum of (i) one million (1,000,000) shares of Common Stock stock plus (ii) the number of shares of our Common Stock available for future awards under the 2015 Omnibus Incentive Plan and the 2009 Stock Incentive Plan as of November 15, 2017, plus (iii) the number of shares of Common Stock related to awards outstanding under such plans as of November 15, 2017 that terminate after such date by expiration or forfeiture, cancellation, or otherwise without the issuance of such shares of Common Stock. On May 22, 2018, the Company's stockholders approved an amendment to the 2017 Plan to increase the number of shares reserved under the 2017 Plan from 642,294 shares of Common Stock to 1,242,294 shares of Common Stock. Stock-Based Compensation Stock-based compensation expense is recognized, net of an estimated forfeiture rate, on a straight-line basis over the requisite service period, which is the vesting period. The Company uses the Black-Scholes option pricing model to determine the fair value of its stock options. The weighted average fair value of stock options granted during the periods and the assumptions used to estimate those values using the Black-Scholes option pricing mode were as follows: Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Weighted average expected stock price volatility 86.3% 86.9% 86.4% 85.4% Estimated dividend yield - - - - Risk-free interest rate 3.0% 1.9% 2.7% 2.1% Expected life of option (in years) 6.3 6.2 6.3 6.2 Weighted average grant date fair value per option $ 1.95 $ 3.09 $ 1.86 $ 2.12 The Company measures the grant date fair value of restricted stock units (RSUs) using the Company's closing Common Stock price on the grant date. The accounting policy with respect to stock options and RSUs is described in the audited consolidated financial statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2017. Stock-based compensation expense was $0.5 million and $0.9 million for the three and six months ended June 30, 2018, respectively and was $0.7 million and $1.4 million for the three and six months ended June 30, 2017. Stock-based compensation expense for the periods presented is included within the selling, general and administrative expense in the unaudited condensed consolidated statements of operations. Stock Options The following table shows the option activity, described above, during the six months ended June 30, 2018 (shares and intrinsic value in thousands): Weighted Average Average Remaining Aggregate Exercise Contractual Life Intrinsic Shares Price (years) Value Options Outstanding at December 31, 2017 1,042 $ 13.80 8.8 Granted 440 2.50 Exercised - - Cancelled (199) 11.48 Expired - - Options outstanding at June 30, 2018 1,283 $ 10.29 8.8 $ 4 Options vested and expected to vest as of June 30, 2018 812 $ 14.47 8.4 $ 3 Options vested and exercisable as of June 30, 2018 233 $ 34.84 7.0 $ 1 As of June 30, 2018, there was approximately $1.7 million of total unrecognized compensation cost related to non-vested stock options issued to employees and directors of the Company, which is expected to be recognized ratably over a weighted-average period of 2 years. The total intrinsic value of options exercised during each of the three and six months ended June 30, 2018 and 2017 was $0. Options issued subsequent to January 2014 have a graded vesting schedule over either three or four years. The Company's stock option grants expire ten years from the date of grant. Restricted Stock The following table shows the Company's non-vested restricted stock activity during the six months ended June 30, 2018 (shares in thousands): Weighted Average Grant Date Fair Shares Value Non-vested restricted stock outstanding at December 31, 2017 135 $ 3.17 Granted 62 2.46 Vested (2) 2.33 Forfeited (1) 2.78 Non-vested restricted stock outstanding at June 30, 2018 194 $ 2.95 The total fair value of RSUs vested in the six months ended 2018 and 2017, were $6,000 and $0, respectively. As of June 30, 2018, there was $0.2 million total unrecognized compensation cost related to non-vested restricted stock issued to employees and directors of the Company which is expected to be recognized ratably over a weighted-average period of 2.1 years.

10. Income Taxes

10. Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
10. Income Taxes	Note 10. Income Taxes On December 22, 2017, the TCJA (or Tax Act) was enacted reducing the corporate Federal tax rate from 35% to 21% effective for tax years beginning on or after January 1, 2018. ASC 740, Income Taxes, Under the TCJA, the Corporate Alternative Minimum Tax (AMT) was repealed. The Company's previously recorded AMT credits of approximately $0.2 million are now refundable subject to budgetary sequestration over a four-year period beginning in 2018, and the previously recorded valuation allowance for these AMT credits was reversed during the year ended December 31, 2017. The Company's Irish subsidiaries have accumulated deficits in earnings and profits and thus the Company will not be subject to the one-time transition tax. The TCJA creates a new requirement that certain income (i.e., Global intangible low taxed income or GILTI) earned by foreign subsidiaries must be included currently in the gross income of the U.S. shareholder. Due to the complexity of the new GILTI tax rules, the Company is continuing to evaluate this provision of the Tax Act and the application of ASC 740. Under U.S. GAAP, the Company is permitted to make an accounting policy election to either treat taxes due on future inclusions in U.S. taxable income related to GILTI as a current-period expense when incurred or to factor such amounts into the Company's measurement of its deferred taxes. The Company has not yet completed its analysis of the GILTI tax rules and is not yet able to reasonably estimate the effect of this provision of the Tax Act or make an accounting policy election for the ASC 740 treatment of the GILTI tax. Therefore, the Company has not recorded any amounts related to potential GILTI tax in its consolidated financial statements and has not yet made a policy decision regarding whether to record deferred taxes on GILTI. The Company reported an income tax expense of approximately $9,000 and $48,000 for the three and six months ended June 30, 2018, respectively and an income tax expense of approximately $40,000 and $95,000 for the three and six months ended June 30, 2017, respectively. The Company's effective tax rate was (0.1%) for the six months ended June 30, 2018, compared to an estimated annual effective rate of (0.2%) for the six months ended June 30, 2017. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. All deferred tax assets were subject to a full valuation allowance as of June 30, 2018 and December 31, 2017. The Company evaluates the realizability of its U.S. net deferred tax assets based on all available evidence, both positive and negative, on a quarterly basis. The realization of net deferred tax assets is dependent on the Company's ability to generate sufficient future taxable income during periods prior to the expiration of tax attributes to fully utilize these assets. The Company weighed both positive and negative evidence and determined that due to recent losses there is a continued need for a full valuation allowance against all of the Company's deferred tax assets as of June 30, 2018 and December 31, 2017. As of June 30, 2018, the Company's gross deferred tax assets are comprised primarily of U.S. Federal net operating losses and accruals, and its gross deferred tax liabilities are comprised primarily of differences in the financial statement and tax bases of intangible assets. The Company files income tax returns with both federal and state-level taxing authorities in the U.S., and with the taxing authorities of various foreign jurisdictions. The associated tax filings remain subject to examination by applicable tax authorities for a certain length of time following the tax year to which those filings relate. As of June 30, 2018, the Company's 2014 and 2015 Federal tax returns are under examination by the Internal Revenue Service. Other years subject to potential examination include 2016 and 2017.

11. Commitments and Contingenci

11. Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
11. Commitments and Contingencies	Note 11. Commitments and Contingencies Legal Proceedings Pernix Ireland Pain Limited (n/k/a Pernix Ireland Pain Designated Activity Company) and Pernix Therapeutics, LLC v. Actavis Laboratories FL, Inc. (Actavis), Pernix Ireland Pain Limited. and Pernix Therapeutics, LLC v. Alvogen Malta Operations, Ltd. (Alvogen), PIP DAC is the owner of (a) U.S. Patent No. 9,265,760 (the '760 Patent), issued on February 23, 2016, (b) U.S. Patent No. 9,326,982 (the '982 Patent), issued on May 3, 2016, (c) U.S. Patent No. 9,333,201 (the '201 Patent), issued on May 10, 2016, and (d) U.S. Patent No. 9,339,499 (the '499 Patent), issued on May 17, 2016 (collectively, the Pernix Zohydro ER Patents). The Pernix Zohydro ER Patents are listed in the United States Food and Drug Administration's (FDA) Orange Book: Approved Drug Products with Therapeutic Equivalence Evaluations (the Orange Book) as covering Zohydro ER. Pernix Therapeutics, LLC (Pernix LLC) is the sole distributor of Zohydro ER in the United States. Pernix LLC and Pernix Ireland Pain Limited n/k/a PIP DAC (collectively for the purpose of this paragraph, Pernix) brought suit against Actavis and Alvogen in the District of Delaware on March 4, 2016, seeking declaratory judgment of infringement of the '760 Patent. The Complaints relating to the '760 Patent were served on March 7, 2016. Pernix filed and served First and Second Amended Complaints on May 13, 2016 and May 31, 2016 against Alvogen and Actavis, respectively, adding allegations of infringement with respect to the '982, '201, and '499 Patents. Actavis and Alvogen filed Motions to Dismiss the Complaints under Rule 12(b)(6), asserting that the claims of the Pernix Zohydro ER Patents are invalid under 35 U.S.C. 101. Briefing regarding the Motion to Dismiss was completed on July 11, 2016. United States Patent Nos. 9,421,200 (the '200 Patent) and 9,433,619 (the '619 Patent) issued on August 23, 2016 and September 5, 2016, respectively. Pernix filed and served Second and Third Amended Complaints, against Alvogen and Actavis respectively, on October 12, 2016, adding allegations of infringement with respect to the '200 and '619 Patents. Actavis and Alvogen filed their respective Answers on November 30, 2016, denying Pernix's infringement allegations, and raising Counterclaims of non-infringement and invalidity as to each of the asserted patents. Pernix and Actavis entered into a settlement agreement on January 29, 2018. Under the terms of the agreement, Pernix will grant Actavis a license to begin selling a generic version of Zohydro ER on March 1, 2029, or earlier under certain circumstances. Other details of the settlement are confidential. The launch of Actavis's generic product is contingent upon Actavis receiving final approval from the FDA of its ANDA for a generic version of Zohydro ER. For the Alvogen case, trial testimony was heard from June 11-13, 2018, post-trial briefing was completed on July 12, 2018, and trial will conclude with the parties' closing arguments, to be heard on July 25, 2018 and the judge's final decision rendered on a date thereafter. Medicine to Go Pharmacies, Inc. v. Macoven Pharmaceuticals, LLC and Pernix Therapeutics Holdings, Inc., District Court of New Jersey Case No. 2:16-cv-07717. On October 23, 2016, Medicine to Go Pharmacies, Inc. (Plaintiff) filed an action against Pernix and its subsidiary, Macoven and unidentified individuals seeking redress for sending allegedly unlawful advertisements to facsimile machines in violation of the Telephone Consumer Protection Act, 47 U.S.C. 227. On December 2, 2016, the Company filed its answers in defense of the allegations. The December 2013 fax campaign that is the subject of this litigation was administered by a third party, Odyssey Services, Inc. (Odyssey), which was not initially named as a defendant in this litigation. On June 22, 2017, the Company filed a third-party complaint against Odyssey, seeking indemnity and contribution for any amounts that the Company may be liable to pay to the Plaintiff. Odyssey answered the third-party complaint and, in addition, filed a counterclaim for indemnification against the Company, alleging that the Company, not Odyssey, was responsible for the content of the facsimiles transmitted, and thus is liable to Odyssey for any costs or judgments associated with this action. Odyssey filed a motion for summary judgment, seeking to dismiss the third-party claims against it; the Company has moved for summary judgment to hold Odyssey liable to indemnify the Company. Those motions are currently pending before the Court. The Company therefore may not be able to secure indemnification from Odyssey for costs that it might incur relative to this matter, and insurance defense and indemnity do not appear available to the Company. While in the process of attempting to quantify its potential liability and during the pendency of court decisions relative to the outstanding motions, the Company also entered into discussions with counsel for Plaintiff seeking a reduced settlement demand. A settlement conference was conducted by the Court on July 12, 2018 during which counsel for Plaintiff and the Company agreed in principle that for purposes of settlement the defendants will create a settlement fund and the Company will contribute a total of $1.2 million to said fund, which amount shall be final and includes any and all costs of the settlement, including payment of claims submitted by class members, class notice, settlement administration, Plaintiff's attorneys' fees and costs, and any incentive award to Plaintiff. Further, the Company will not oppose Plaintiff's request that a Rule 23(b)(3) settlement class consisting of all persons and entities with fax numbers who received a copy of the December 2013 "Dear Pharmacist" fax be certified by the Court and the Company will agree that any unclaimed amounts of the settlement fund shall be distributed to one or more cy pres Opioids Litigation Beginning in 2014 and continuing to the present, a number of pharmaceutical companies have been named in numerous lawsuits brought by certain state and local governments related to the marketing of opioid pain medications. The claims are generally based on alleged misrepresentations and/or omissions in connection with the sale and marketing of prescription opioid pain medications and/or an alleged failure to take adequate steps to prevent abuse and diversion. The suits generally seek penalties and/or injunctive and monetary relief. These cases are in early stages of litigation. In May 2018, the Company was notified that the State of Arkansas has named approximately 65 companies and individuals, including the Company, in an ongoing lawsuit relative to the marketing and sale of opioid pain medications. During the second quarter of 2018, the Company was also served with two additional lawsuits in which it was included as a defendant, both of which were filed in Philadelphia County, PA ( UFCW Local 23 Health Fund v. Endo Pharmaceuticals, Inc., et al. Iron Workers Dist. Council of Philadelphia & Vicinity, Benefit Fund v. Abbott Laboratories, Inc., et al. The Company intends to vigorously defend against the claims asserted against it in these litigations but is unable to predict probable outcomes at this time. Other Commitments and Contingencies In July 2012 and January 2013, Somaxon settled two patent litigation claims with parties seeking to market generic equivalents of Silenor. As of June 30, 2018, remaining payment obligations of the Company owed under these settlement agreements are $500,000. The balance is payable in equal annual installments of $250,000 through 2019. The current portion is recorded in other liabilities - current and the non-current portion is recorded in other liabilities - long-term on the Company's unaudited condensed consolidated balance sheets as of June 30, 2018. During the first quarter of 2014, the Company settled all claims arising from certain actions by Cypress under the Texas Medicaid Fraud Prevention Act prior to its acquisition by the Company. As part of the settlement, the Company agreed to pay $12.0 million, payable in annual amounts of $2.0 million until the settlement is paid in full. As of June 30, 2018, the net present value of remaining payment obligations owed under this settlement agreement is $1.9 million and is recorded within other liabilities - current on the Company's unaudited condensed consolidated balance sheets as of June 30, 2018. GlaxoSmithKline (GSK) Arbitration Pursuant to Amendment No. 2, the Company agreed that if on or before September 30, 2019, the Company (x) redeems or repurchases its 4.25% Convertible Notes for greater than 31.00 cents for every one dollar of principal amount outstanding or (y) exchange such notes for new notes or similar instruments that have a face value providing such exchanging holders a recovery that is greater than 31.00 cents for every one dollar of 4.25% Convertible Notes exchanged by such holders, the Company shall, no later than five business days thereafter, distribute to GSK additional cash or notes, as applicable, equal to such excess recovery, but in no event to exceed $2.0 million. GSK has agreed that for so long as the Company complies with the payment terms set forth in the Amendment No. 2, enforcement of the award will be stayed and GSK shall not seek to enforce or exercise any other remedies in respect of the award, and that the outstanding balance of the Award shall be unconditionally and irrevocably forgiven upon satisfaction of such terms. As of June 30, 2018 and December 31, 2017, the Company has recorded $2.0 million as contingent consideration for the potential payment due by September 30, 2019 and is recorded in Arbitration Award on the Company's consolidated balance sheets. Also, the Company recorded $10.5 million as a gain from legal settlement for the year ended December 31, 2017 pursuant to Amendment No. 2 in the consolidated statements of operations and comprehensive loss.

12. Restructuring

12. Restructuring	6 Months Ended
	Jun. 30, 2018
Restructuring and Related Activities [Abstract]
12. Restructuring	Note 12. Restructuring On January 4, 2018, the Company committed to and commenced a realignment plan to reduce operating costs and better align our workforce with the needs of our business in anticipation of the expiration of certain patents related to Treximet® (2018 Restructuring). The Company completed the realignment plan on January 5, 2018, resulting in a reduction of our workforce by 41 employees, the majority of which were associated with our sales force and commercial infrastructure. As of June 30, 2018, the Company has incurred $0.8 million in costs related to the 2018 Restructuring, consisting of $0.7 million related to employee termination benefits and $0.1 million related to contract termination costs. On July 7, 2016, the Company announced a restructuring of its sales force and operations (2016 Restructuring). The 2016 Reorganization included a reduction of 54 sales positions, primarily from the Company's Neurology sales team and reduced its administrative staff by 6 employees. To date, the Company has incurred $2.8 million in costs related to the 2016 Restructuring, consisting of $1.4 million related to employee termination benefits and $1.4 million related to contract termination costs. All associated contract termination cost payments are expected to be made by 2020. A summary of accrued restructuring costs, included as a component of accounts payable and accrued expenses on the unaudited condensed consolidated balance sheets, is as follows (in thousands): December 31, 2017 Charges Cash Non-cash June 30, 2018 2018 Restructuring $ - $ 774 $ (774) $ - $ - December 31, 2017 Charges Cash Non-cash June 30, 2018 2016 Restructuring $ 265 $ 440 $ (210) $ - $ 495

13. Business Combinations_Dives

13. Business Combinations/Divestitures	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
13. Business Combinations/Divestitures	Note 13. Business Combinations/Divestitures There were no acquisitions during the six months ended June 30, 2018. Sale of Non-Core Assets On May 29, 2018, the Company received proceeds of $446,000 from the sale of certain obsolete equipment and was recorded as a Gain on sale of assets line in the consolidated statement of operations and comprehensive loss for the three months ended June 30, 2018. On November 6, 2017 the Company announced the sale of a non-core product, Cedax (ceftibuten capsules and ceftibuten for oral suspension), a third-generation cephalosporin antibiotic for the treatment of acute bacterial exacerbations of chronic bronchitis and middle ear infection, to SI Pharmaceuticals, LLC, for $2.0 million in gross cash proceeds. Cedax was discontinued by Pernix in 2016 and the Company has not generated any sales from this product in 2017. This was recorded on the gain on sale of assets line on the consolidated statement of operations and comprehensive loss for the three months ended September 2017.

14. Supplemental Cash Flow Info

14. Supplemental Cash Flow Information	6 Months Ended
	Jun. 30, 2018
Supplemental Cash Flow Elements [Abstract]
14. Supplemental Cash Flow Information	Note 14. Supplemental Cash Flow Information Supplemental cash flow information is as follows (in thousands): Six Months Ended June 30, 2018 2017 Cash (received) paid for income taxes, net $ 26 $ (878) Cash paid for interest 14,095 14,415 Supplemental disclosures of Non-cash Investing and Financing Activities: Amount added to principal of term loan for Payment-in-kind (PIK) interest $ 601 $ -

2. Basis of Presentation and 22

2. Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements included herein have been prepared by the Company in accordance with generally accepted accounting principles in the United States (GAAP) and under the rules and regulations of the United States Securities and Exchange Commission (SEC) for interim reporting. In management's opinion, the interim financial data presented includes all adjustments (consisting solely of normal recurring items) necessary for fair presentation. All intercompany accounts and transactions have been eliminated. Certain information required by GAAP has been condensed or omitted in accordance with rules and regulations of the SEC. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for any future period or for the year ending December 31, 2018. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and the notes thereto for the year ended December 31, 2017, included in Pernix's 2017 Annual Report on Form 10-K filed with the SEC. The preparation of the unaudited condensed consolidated financial statements requires management to make estimates and assumptions relating to reporting of the assets and liabilities and the disclosure of contingent assets and liabilities to prepare these unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period in conformity with GAAP. Significant estimates of the Company include: revenue recognition, sales allowances such as returns on product sales, government program rebates, customer coupon redemptions, wholesaler/pharmacy discounts, product service fees, rebates and chargebacks, sales commissions, amortization, stock-based compensation, the determination of fair values of assets and liabilities in connection with business combinations, and deferred income taxes. Actual results could differ from these estimates. Certain prior period amounts have been reclassified to conform to the current period presentation including reclassifying capitalized debt issuance costs of approximately $1.5 million from "Prepaid expenses and other current assets" to the Company's long-term debt instruments within "Total liabilities" except for those related to revolving credit facilities. This reclassification had no effect on previously reported results of operations, financial position or cash flows.
Interim Financial Statements	The accompanying unaudited condensed consolidated financial statements included herein have been prepared by the Company in accordance with generally accepted accounting principles in the United States (GAAP) and under the rules and regulations of the United States Securities and Exchange Commission (SEC) for interim reporting. In management's opinion, the interim financial data presented includes all adjustments (consisting solely of normal recurring items) necessary for fair presentation. All intercompany accounts and transactions have been eliminated. Certain information required by GAAP has been condensed or omitted in accordance with rules and regulations of the SEC. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for any future period or for the year ending December 31, 2018.
Management's Estimates and Assumptions	The preparation of the unaudited condensed consolidated financial statements requires management to make estimates and assumptions relating to reporting of the assets and liabilities and the disclosure of contingent assets and liabilities to prepare these unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period in conformity with GAAP. Significant estimates of the Company include: revenue recognition, sales allowances such as returns on product sales, government program rebates, customer coupon redemptions, wholesaler/pharmacy discounts, product service fees, rebates and chargebacks, sales commissions, amortization, stock-based compensation, the determination of fair values of assets and liabilities in connection with business combinations, and deferred income taxes. Actual results could differ from these estimates.
Reclassifications	Certain prior period amounts have been reclassified to conform to the current period presentation including reclassifying capitalized debt issuance costs of approximately $1.5 million from "Prepaid expenses and other current assets" to the Company's long-term debt instruments within "Total liabilities" except for those related to revolving credit facilities. This reclassification had no effect on previously reported results of operations, financial position or cash flows.
Principles of Consolidation	The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers The Company's new revenue recognition policy is as follows: Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company generally enters into contracts to sell approved branded and generic pharmaceutical drugs. Product Sales Product sales revenue is recognized at the estimated consideration to be received when control has transferred to the customer, which is typically on delivery to the customer or, in the case of products that are subject to consignment agreements, when the customer removes product from the Company's consigned inventory location for shipment directly to a patient. Payment terms vary by customer and the products or services offered and is generally required in a term ranging from 30 to 90 days from date of shipment or satisfaction of the performance obligation. Significant Judgments Product sales contracts provide the customer with the right to return the product and also provide for a variety of discounts and allowances including, specialty distributor fees, wholesaler fees, prompt payment discounts, government rebates, government chargebacks, coupon programs and rebates under managed care plans which are accounted for as variable consideration. Returns are estimated through comparison of historical return data to their related sales on a production lot basis. Historical rates of return are determined for each product and are adjusted for known or expected changes in the marketplace specific to each product, when appropriate. Judgment is required to estimate the appropriate adjustments for variable consideration which is based on sales or invoice data, contractual terms, historical utilization rates, new information regarding changes in these programs' regulations and guidelines that would impact the amount of the actual rebates, the Company's expectations regarding future utilization rates for these programs and channel inventory data. Contract Balances The timing of customer invoicing generally does not differ from the timing of revenue recognition. The Company records provisions for returns, specialty distributor fees, wholesaler fees, government rebates, coupon programs and rebates under managed care plans are included within current liabilities in the Company's consolidated balance sheets. Provision for prompt payment discounts are generally shown as a reduction in accounts receivable. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting, In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business In August 2016, the FASB issued ASU 2016-15 Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities
Recent Issued Accounting Pronouncements	Recently Issued Accounting Standards, Not Adopted as of June 30, 2018 In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the Company's consolidated financial statements.
Revenue Recognition	The Company's new revenue recognition policy is as follows: Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company generally enters into contracts to sell approved branded and generic pharmaceutical drugs. Product Sales Product sales revenue is recognized at the estimated consideration to be received when control has transferred to the customer, which is typically on delivery to the customer or, in the case of products that are subject to consignment agreements, when the customer removes product from the Company's consigned inventory location for shipment directly to a patient. Payment terms vary by customer and the products or services offered and is generally required in a term ranging from 30 to 90 days from date of shipment or satisfaction of the performance obligation. Significant Judgments Product sales contracts provide the customer with the right to return the product and also provide for a variety of discounts and allowances including, specialty distributor fees, wholesaler fees, prompt payment discounts, government rebates, government chargebacks, coupon programs and rebates under managed care plans which are accounted for as variable consideration. Returns are estimated through comparison of historical return data to their related sales on a production lot basis. Historical rates of return are determined for each product and are adjusted for known or expected changes in the marketplace specific to each product, when appropriate. Judgment is required to estimate the appropriate adjustments for variable consideration which is based on sales or invoice data, contractual terms, historical utilization rates, new information regarding changes in these programs' regulations and guidelines that would impact the amount of the actual rebates, the Company's expectations regarding future utilization rates for these programs and channel inventory data. Contract Balances The timing of customer invoicing generally does not differ from the timing of revenue recognition. The Company records provisions for returns, specialty distributor fees, wholesaler fees, government rebates, coupon programs and rebates under managed care plans are included within current liabilities in the Company's consolidated balance sheets. Provision for prompt payment discounts are generally shown as a reduction in accounts receivable.
Significant Customers	Significant Customers The Company's customers consist of drug wholesalers, specialty pharmacies, retail drug stores, mass merchandisers and grocery store pharmacies in the United States. The Company primarily sells its products directly to large national drug wholesalers, which in turn resell the products to smaller or regional wholesalers, retail pharmacies, chain drug stores, and other third parties.
Earnings per Share	Basic net income (loss) per common share is the amount of net income (loss) for the period divided by the weighted average shares of Common Stock outstanding during the reporting period. Diluted income (loss) per common share is the amount of income (loss) for the period plus interest expense on convertible debt divided by the sum of weighted average shares of Common Stock outstanding during the reporting period and weighted average shares that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares.

2. Significant Customers (Table

2. Significant Customers (Tables)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Significant Customers	The following tables list the Company's customers that individually comprised greater than 10% of total gross product sales for the three and six months ended June 30, 2018 and 2017, or 10% of total accounts receivable as of June 30, 2018 and December 31, 2017. Gross Product Sales: Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 McKesson Corporation 32% 34% 33% 34% AmerisourceBergen Drug Corporation 27% 33% 27% 31% Cardinal Health, Inc. 21% 23% 24% 25% Total 80% 90% 84% 90% Accounts Receivable, net: June 30, December 31, 2018 2017 Cardinal Health, Inc. 38% 31% McKesson Corporation 30% 29% AmerisourceBergen Drug Corporation 23% 27% Total 91% 87%

3. Earnings per Share (Tables)

3. Earnings per Share (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Earnings per Share	The following table sets forth the computation of basic and diluted net loss per share (in thousands except per share data): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Numerator: Net loss $ (13,513) $ (21,616) $ (32,097) $ (51,078) Denominator: Weighted-average common shares, basic 11,913 10,016 11,907 10,016 Dilutive effect of stock options - - - - Weighted-average common shares, diluted $ 11,913 $ 10,016 $ 11,907 $ 10,016 Net loss per share, basic and diluted $ (1.13) $ (2.16) $ (2.70) $ (5.10)
Antidilutive securitites	The following table sets forth the potential common shares that could potentially dilute basic income per share in the future that were not included in the computation of diluted income (loss) per share because to do so would have been anti-dilutive for the periods presented (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 4.25% Convertible Notes 682 1,133 682 1,133 Exchangeable Notes 6,499 - 6,499 - Stock options and restricted stock units 1,303 615 1,295 581 Warrants 4 33 4 33 Total potential dilutive effect 8,488 1,781 8,480 1,747

4. Fair Value Measurement (Tabl

4. Fair Value Measurement (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring and nonrecurring basis	The fair and carrying value of our debt instruments are detailed as follows (in thousands): As of June 30, 2018 As of December 31, 2017 Fair Carrying Fair Carrying Value Value Value Value 4.25% Convertible Notes $ 37,473 $ 66,928 $ 36,208 $ 65,194 Exchangeable Notes 21,207 9,016 21,375 7,975 Delayed draw term loan 30,601 28,183 30,300 27,248 Derivative liability 72 72 93 93 Contingent consideration 1,501 1,501 1,358 1,358 Treximet Secured Notes 139,395 162,853 139,201 167,551 Total $ 230,249 $ 268,553 $ 228,535 $ 269,419
Fair Value Measurements Using Significant Unobservable Input (Tables)	For the Company's assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following table provides a reconciliation of the beginning and ending balances for each category therein, and gains or losses recognized during the periods (in thousands). As of and for the As of and for the Six months Ended Six months Ended June 30, 2018 June 30, 2017 Derivative liability: Balance at beginning of year $ 93 $ 230 Remeasurement adjustments - loss (gains) included in earnings (21) 84 Ending Balance $ 72 $ 314 Contingent consideration: Balance at beginning of year $ 1,358 $ 2,403 Remeasurement adjustments - loss (gains) included in earnings 143 (540) Ending Balance $ 1,501 $ 1,863

5. Inventory (Tables)

5. Inventory (Tables)	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories are stated at the lower of cost or market. Inventories consist of the following (in thousands): June 30, December 31, 2018 2017 Raw materials $ 656 $ 727 Work-in-process - 238 Finished goods 5,868 5,889 Inventory, gross 6,524 6,854 Reserve for obsolescence (1,466) (1,458) Inventory, net $ 5,058 $ 5,396

6. Goodwill and Intangible As27

6. Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in the carrying amount of goodwill	Goodwill consists of the following (in thousands): Amount Balance at December 31, 2016 $ 30,600 Goodwill impairment (18,500) Balance at December 31, 2017 12,100 Goodwill impairment - Balance at June 30, 2018 $ 12,100
Intangible assets	Intangible assets consist of the following (dollars in thousands): As of June 30, 2018 Weighted Average Gross Carrying Accumulated Net Carrying Life Remaining Amount Impairment Amortization Amount Unamortized intangible assets: In-process research and development Indefinite $ 11,000 $ - $ - $ 11,000 Total unamortized intangible assets 11,000 - - 11,000 Amortized intangible assets: Product licenses 5.0 years 2,846 - (1,756) 1,090 Supplier contracts 2.8 years 583 - (253) 330 Acquired developed technologies 14.7 years 364,686 - (291,682) 73,004 Total amortized intangible assets 368,115 - (293,691) 74,424 Total intangible assets $ 379,115 $ - $ (293,691) $ 85,424 As of December 31, 2017 Weighted Average Gross Carrying Accumulated Net Carrying Life Remaining Amount Impairment Amortization Amount Unamortized intangible assets: In-process research and development Indefinite $ 11,000 $ - $ - $ 11,000 Total unamortized intangible assets 11,000 - - 11,000 Amortized intangible assets: Product licenses 5.4 years 2,846 - (1,623) 1,223 Supplier contracts 3.3 years 583 - (194) 389 Acquired developed technologies 13.7 years 364,686 - (280,692) 83,994 Total amortized intangible assets 368,115 - (282,509) 85,606 Total intangible assets $ 379,115 $ - $ (282,509) $ 96,606
Intangible Assets Estimated Amortization Expenses	Estimated amortization expense related to intangible assets with definite lives for each of the five succeeding years and thereafter is as follows (in thousands): Amount 2018 (July - December) $ 2,754 2019 5,507 2020 5,420 2021 5,325 2022 5,286 Thereafter 50,132 Total $ 74,424

7. Accrued Allowances (Tables)

7. Accrued Allowances (Tables)	6 Months Ended
	Jun. 30, 2018
Accrued Liabilities [Abstract]
Accrued allowances	Accrued allowances consist of the following (in thousands): June 30, December 31, 2018 2017 Accrued returns allowance $ 25,218 $ 21,681 Accrued price adjustments 11,450 10,766 Accrued managed care rebates 11,358 17,221 Accrued government program rebates 5,994 6,641 Total $ 54,020 $ 56,309

8. Debt and Lines of Credit (Ta

8. Debt and Lines of Credit (Tables)	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Debt consists	Debt, net of discounts and deferred financing costs, consists of the following (in thousands): As of June 30, 2018 As of December 31, 2017 Principal Note Discount Deferred Financing Costs Net of Discount and Deferred Financing Costs Principal Note Discount Deferred Financing Costs Net of Discount and Deferred Financing Costs 4.25% Convertible Notes $ 78,225 $ (9,588) $ (1,709) $ 66,928 $ 78,225 $ (11,060) $ (1,971) $ 65,194 Exchangeable Notes 35,743 (23,450) (3,277) 9,016 35,743 (24,363) (3,405) 7,975 Delayed Draw Term Loan 30,601 - (2,418) 28,183 30,000 - (2,752) 27,248 Treximet Secured Notes - Long Term 166,697 - (3,844) 162,853 166,697 - (2,810) 163,887 Treximet Secured Notes - Short Term - - - - 5,373 - (1,709) 3,664 ABL Credit Agreement 14,185 - - 14,185 14,185 - - 14,185 Total outstanding debt $ 325,451 $ (33,038) $ (11,248) $ 281,165 $ 330,223 $ (35,423) $ (12,647) $ 282,153 Less: Current portion of long-term debt - 3,664 Long-term debt outstanding, net $ 281,165 $ 278,489
Future maturity schedule of the outstanding debt and line of credit	The following table represents the future maturity schedule of the outstanding debt and line of credit at June 30, 2018 (in thousands): Amount 2018 (July - December) $ - 2019 - 2020 166,697 2021 78,225 2022 80,529 Thereafter - Total maturities 325,451 Less: Note discount (33,038) Deferred financing costs (11,248) Total outstanding debt, net $ 281,165

9. Stockholders_ Equity (Tables

9. Stockholders’ Equity (Tables)	6 Months Ended
	Jun. 30, 2018
Stockholders Equity Tables
Stock option assumptions	The weighted average fair value of stock options granted during the periods and the assumptions used to estimate those values using the Black-Scholes option pricing mode were as follows: Three Months Ended Six Months Ended June 30, June 30, 2018 2017 2018 2017 Weighted average expected stock price volatility 86.3% 86.9% 86.4% 85.4% Estimated dividend yield - - - - Risk-free interest rate 3.0% 1.9% 2.7% 2.1% Expected life of option (in years) 6.3 6.2 6.3 6.2 Weighted average grant date fair value per option $ 1.95 $ 3.09 $ 1.86 $ 2.12
Stock option activity	The following table shows the option activity, described above, during the six months ended June 30, 2018 (shares and intrinsic value in thousands): Weighted Average Average Remaining Aggregate Exercise Contractual Life Intrinsic Shares Price (years) Value Options Outstanding at December 31, 2017 1,042 $ 13.80 8.8 Granted 440 2.50 Exercised - - Cancelled (199) 11.48 Expired - - Options outstanding at June 30, 2018 1,283 $ 10.29 8.8 $ 4 Options vested and expected to vest as of June 30, 2018 812 $ 14.47 8.4 $ 3 Options vested and exercisable as of June 30, 2018 233 $ 34.84 7.0 $ 1
Restricted stock activity	The following table shows the Company's non-vested restricted stock activity during the six months ended June 30, 2018 (shares in thousands): Weighted Average Grant Date Fair Shares Value Non-vested restricted stock outstanding at December 31, 2017 135 $ 3.17 Granted 62 2.46 Vested (2) 2.33 Forfeited (1) 2.78 Non-vested restricted stock outstanding at June 30, 2018 194 $ 2.95

12. Restructuring (Tables)

12. Restructuring (Tables)	6 Months Ended
	Jun. 30, 2018
Restructuring and Related Activities [Abstract]
Accrued restructuring costs	A summary of accrued restructuring costs, included as a component of accounts payable and accrued expenses on the unaudited condensed consolidated balance sheets, is as follows (in thousands): December 31, 2017 Charges Cash Non-cash June 30, 2018 2018 Restructuring $ - $ 774 $ (774) $ - $ - December 31, 2017 Charges Cash Non-cash June 30, 2018 2016 Restructuring $ 265 $ 440 $ (210) $ - $ 495

14. Schedule of Cash Flow, Supp

14. Schedule of Cash Flow, Supplemental Disclosures (Tables)	6 Months Ended
	Jun. 30, 2018
Schedule Of Cash Flow Supplemental Disclosures Tables
Schedule of cash flow, supplemental disclosures	Supplemental cash flow information is as follows (in thousands): Six Months Ended June 30, 2018 2017 Cash (received) paid for income taxes, net $ 26 $ (878) Cash paid for interest 14,095 14,415 Supplemental disclosures of Non-cash Investing and Financing Activities: Amount added to principal of term loan for Payment-in-kind (PIK) interest $ 601 $ -

2. Significant Customers (Detai

2. Significant Customers (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Company's customers that individually comprised greater than 10% of total gross product sales
Percentage of gross product sales	80.00%	90.00%	84.00%	90.00%
McKesson Corporation
Company's customers that individually comprised greater than 10% of total gross product sales
Percentage of gross product sales	32.00%	34.00%	33.00%	34.00%
Amerisource Bergen Drug Corporation
Company's customers that individually comprised greater than 10% of total gross product sales
Percentage of gross product sales	27.00%	33.00%	27.00%	31.00%
Cardinal Health Inc
Company's customers that individually comprised greater than 10% of total gross product sales
Percentage of gross product sales	21.00%	23.00%	24.00%	25.00%

2. Significant Customers (Det34

2. Significant Customers (Details 1)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Accounts Receivable
Cardinal Health, Inc.	38.00%	31.00%
McKesson Corporation	30.00%	29.00%
AmerisourceBergen Drug Corporation	23.00%	27.00%
Total	91.00%	87.00%

3. Earnings per Share (Details)

3. Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Numerator:
Net loss	$ (13,513)	$ (21,616)	$ (32,097)	$ (51,078)	$ (77,141)
Denominator:
Weighted-average common shares, basic	11,913	10,016	11,907	10,016
Dilutive effect of stock options	0	0	0	0
Weighted-average common shares, diluted	11,913	10,016	11,907	10,016
Net loss per share, basic and diluted	$ (1.13)	$ (2.16)	$ (2.70)	$ (5.10)

3. Earnings Per Share Potential

3. Earnings Per Share Potentially Diluted Shares Excluded (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Anti-dilutive shares	8,488	1,781	8,480	1,747
4.25% Convertible Notes
Anti-dilutive shares	682	1,133	682	1,133
Exchangeable Notes
Anti-dilutive shares	6,499	0	6,499	0
Stock Options and Restricted Stock
Anti-dilutive shares	1,303	615	1,295	581
Warrants
Anti-dilutive shares	4	33	4	33

4. Fair Value Measurement (Debt

4. Fair Value Measurement (Debt Instruments) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Debt instruments, fair value	$ 230,249	$ 228,535
Debt instruments, carrying value	268,553	269,419
4.25% Convertible Notes
Debt instruments, fair value	37,473	36,208
Debt instruments, carrying value	66,928	65,194
Exchangeable Notes
Debt instruments, fair value	21,207	21,375
Debt instruments, carrying value	9,016	7,975
Delayed Draw Term Loan
Debt instruments, fair value	30,601	30,300
Debt instruments, carrying value	28,183	27,248
Derivative Liability
Debt instruments, fair value	72	93
Debt instruments, carrying value	72	93
Contingent Consideration
Debt instruments, fair value	1,501	1,358
Debt instruments, carrying value	1,501	1,358
Treximet Secured Notes
Debt instruments, fair value	139,395	139,201
Debt instruments, carrying value	$ 162,853	$ 167,551

4. Fair Value Measurements Usin

4. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Derivative Liability
Beginning balance	$ 93	$ 230
Remeasurement adjustments - loss (gains) included in earnings	(21)	84
Ending balance	72	314
Contingent Consideration
Beginning balance	1,358	2,403
Remeasurement adjustments - loss (gains) included in earnings	143	(540)
Ending balance	$ 1,501	$ 1,863

5. Inventory (Details)

5. Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 656	$ 727
Work-in-process	0	238
Finished goods	5,868	5,889
Inventory gross	6,524	6,854
Reserve for obsolescence	(1,466)	(1,458)
Inventory, net	$ 5,058	$ 5,396

6. Goodwill and Intangible As40

6. Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2016	Dec. 31, 2017
Goodwill And Intangible Assets - Goodwill Details
Goodwill	$ 12,100	$ 30,600	$ 12,100
Goodwill impairment	$ 0	$ (18,500)

6. Goodwill and Intangible As41

6. Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Goodwill	$ 12,100	$ 12,100	$ 30,600

6. Goodwill and Intangible As42

6. Goodwill and Intangible Assets (Details 1) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Intangible assets consist of the following
Gross Carrying Amount	$ 379,115	$ 379,115
Impairment	0	0
Accumulated Amortization	(293,691)	(282,509)
Net Carrying Amount	85,424	96,606
In Process Research And Development Member
Intangible assets consist of the following
Gross Carrying Amount	11,000	11,000
Impairment	0	0
Accumulated Amortization	0	0
Net Carrying Amount	11,000	11,000
Total Indefinite Lived
Intangible assets consist of the following
Gross Carrying Amount	11,000	11,000
Impairment	0	0
Accumulated Amortization	0	0
Net Carrying Amount	$ 11,000	$ 11,000
Product Licenses Member
Intangible assets consist of the following
Weighted Average Life Remaining	5 years	5 years 144 days
Gross Carrying Amount	$ 2,846	$ 2,846
Impairment	0	0
Accumulated Amortization	(1,756)	(1,623)
Net Carrying Amount	$ 1,090	$ 1,223
Supplier Contracts Member
Intangible assets consist of the following
Weighted Average Life Remaining	2 years 288 days	3 years 108 days
Gross Carrying Amount	$ 583	$ 583
Impairment	0	0
Accumulated Amortization	(253)	(194)
Net Carrying Amount	$ 330	$ 389
Acquired Developed Technology Member
Intangible assets consist of the following
Weighted Average Life Remaining	14 years 252 days	13 years 216 days
Gross Carrying Amount	$ 364,686	$ 364,686
Impairment	0	0
Accumulated Amortization	(291,682)	(280,692)
Net Carrying Amount	73,004	83,994
Total Definite Lived
Intangible assets consist of the following
Gross Carrying Amount	368,115	368,115
Impairment	0	0
Accumulated Amortization	(293,691)	(282,509)
Net Carrying Amount	$ 74,424	$ 85,606

6. Goodwill and Intangible As43

6. Goodwill and Intangible Assets (Details 2) $ in Thousands	Jun. 30, 2018USD ($)
Estimated amortization expense related to intangible assets
2018 (July – December)	$ 2,754
2,019	5,507
2,020	5,420
2,021	5,325
2,022	5,286
Thereafter	50,132
Total	$ 74,424

6. Goodwill and Intangible As44

6. Goodwill and Intangible Assets (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 1,400	$ 18,100	$ 11,200	$ 36,600

7. Accrued Allowances (Details)

7. Accrued Allowances (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Accrued allowances consist of the following
Accrued returns allowance	$ 25,218	$ 21,681
Accrued price adjustments	11,450	10,766
Accrued managed care rebates	11,358	17,221
Accrued government program rebates	5,994	6,641
Total	$ 54,020	$ 56,309

8. Debt and Lines of Credit (De

8. Debt and Lines of Credit (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Total gross long-term debt	$ 325,451	$ 330,223
Less unamortized discount	(33,038)	(35,423)
Less unamortized deferred financing costs	(11,248)	(12,647)
Total net long-term debt	281,165	282,153
Less current portion of long-term debt	0	3,664
Long-term debt outstanding, net	281,165	278,489
4.25% Convertible Notes
Total gross long-term debt	78,225	78,225
Less unamortized discount	(9,588)	(11,060)
Less unamortized deferred financing costs	(1,709)	(1,971)
Total net long-term debt	$ 66,928	65,194
Debt, Description	4.25% Convertible Notes On April 22, 2015, the Company issued $130.0 million aggregate principal amount 4.25% Convertible Notes. The 4.25% Convertible Notes mature on April 1, 2021, unless earlier converted, redeemed or repurchased. Interest on the 4.25% Convertible Notes is payable on April 1 and October 1 of each year, beginning October 1, 2015. The 4.25% Convertible Notes are governed by the terms of an indenture, between the Company and Wilmington Trust, National Association, each of which were entered into on April 22, 2015. The Company may not redeem the 4.25% Convertible Notes prior to April 6, 2019. However, the holders may convert their 4.25% Convertible Notes at any time prior to the close of business on the business day immediately preceding January 1, 2021 only under certain circumstances. The effective interest rate on the 4.25% Convertible Notes, including debt issuance costs and bifurcated conversion option derivative (discussed below), is 10.4%. The Company is required to separate the conversion option in the 4.25% Convertible Notes under Accounting Standards Codification (ASC) 815, Derivatives and Hedging Interest expense was $1.7 million and $3.4 million for the three and six months ended June 30, 2018, respectively, and $2.5 million and $5.0 million for the three and six months ended June 30, 2017, respectively, related to the 4.25% Convertible Notes. Interest expense includes amortization of deferred financing costs and accretion of debt discount. Change in fair value of derivative liability was a benefit of $40,000 and $21,000 for the three and six months ended June 30, 2018, respectively, and a benefit of $270,000 and an expense of $84,000 for the three and six months ended June 30, 2017, respectively. Accrued interest on the 4.25% Convertible Notes was approximately $831,000 as of June 30, 2018 and December 31, 2017. As a result of the Exchangeable Notes transaction during the third quarter of 2017, the Company recorded $14.7 million as gain from exchange of debt for the three months ended September 30, 2017.
Exchangeable Notes
Total gross long-term debt	$ 35,743	35,743
Less unamortized discount	(23,450)	(24,363)
Less unamortized deferred financing costs	(3,277)	(3,405)
Total net long-term debt	$ 9,016	7,975
Debt, Description	Exchangeable Notes On July 20, 2017, the Company entered into an exchange agreement (the 2017 Exchange Agreement) with certain holders of its 4.25% Convertible Notes (Holders) pursuant to which $51.8 million of aggregate principal amount of its 4.25% Convertible Notes held by the Holders were exchanged for (i) $36.2 million aggregate principal amount of 4.25%/5.25% Exchangeable Senior Notes due 2022 (the Exchangeable Notes), issued by PIP DAC pursuant to an Indenture, dated July 21, 2017 (the Exchangeable Notes Indenture), among PIPL, the guarantors party thereto (the Guarantors), and Wilmington Trust, National Association, as Trustee and (ii) 1,100,498 shares of Common Stock. The Exchangeable Notes issued under the Exchangeable Notes Indenture are guaranteed by the Company and each other subsidiary thereof. The Exchangeable Notes are senior, unsecured obligations of PIP DAC. Interest on the Exchangeable Notes will be paid in cash or a combination of cash and in-kind interest at PIP DAC's election. Interest paid in cash (the All Cash Method) will accrue at a rate of 4.25% per annum, while interest paid in a combination of cash and in-kind will accrue at a rate of 5.25% per annum, with 2.25% per annum (plus additional interest, if any) capitalized to the principal amount of the Exchangeable Notes, and the balance paid in cash. The maturity date of the Exchangeable Notes Indenture is July 15, 2022. The Exchangeable Notes initially are exchangeable into shares of Common Stock at an exchange price per share of $5.50 (the Exchange Price). The 2017 Exchange Agreement allowed the Company to reduce the principal amount of its outstanding indebtedness through the exchange of the Holders' 4.25% Convertible Notes for a smaller principal amount of the Exchangeable Notes. The principal amount of the Exchangeable Notes may be reduced if the Holders thereof exchange their Exchangeable Notes for shares of Common Stock. The Exchangeable Notes Indenture will provide capacity to refinance up to an additional $25.0 million principal amount of the 4.25% Convertible Notes, which refinancing could also provide an opportunity to further reduce the principal amount of the Company's outstanding indebtedness. The outstanding borrowings of the Exchangeable Notes were paid down by $500,000 in November 2017 with a portion of the proceeds from the sale of certain non-core assets. Interest expense was $1.0 million and $2.0 million for the three and six months ended June 30, 2018, respectively, and included amortization of deferred financing costs and accretion of debt discount. Accrued interest on the Exchangeable Notes was approximately $860,000 and $675,000 as of June 30, 2018 and December 31, 2017, respectively.
Delayed Draw Term Loan
Total gross long-term debt	$ 30,601	30,000
Less unamortized discount	0	0
Less unamortized deferred financing costs	(2,418)	(2,752)
Total net long-term debt	$ 28,183	27,248
Debt, Description	Term Facility: On July 21, 2017 PIP DAC entered into a term loan credit agreement (the Delayed Draw Term Loan, the Term Facility or DDTL) with Cantor Fitzgerald Securities, as agent Securities, as agent, and the lenders party thereto to obtain the DDTL. $30.0 million under the DDTL was drawn on July 21, 2017 in connection with the closing of several refinancing transactions and the remaining $15.0 million will be available for subsequent draws for certain specified purposes, including to finance certain acquisitions, subject to conditions set forth in the Term Credit Agreement. The DDTL includes an incremental feature that allows PIP DAC, with the consent of the requisite lenders under the Term Facility, to obtain up to an additional $20.0 million in term loan commitments. Interest on the loans will accrue either in cash or a combination of cash and in kind interest, at PIP DAC's election. Cash interest will accrue at a rate of 7.50% per annum, while the combination of cash and in-kind interest will accrue at a rate of 8.50% per annum, with up to 4.00% per annum added to the principal amount of loans and the balance paid in cash. The DDTL will mature on July 21, 2022. During the first quarter of 2018, PIP DAC elected the PIK option in lieu of making scheduled interest payments. The election increased the principal due on the DDTL by $601,000 as of June 30, 2018. On July 27, 2018, PIP DAC drew $9.2 million under the DDTL. The proceeds were used to fund the Company's investment in Nalpropion for Nalpropion's purchase of certain assets of Orexigen and for working capital requirements. PIP DAC also entered into a mortgage debenture with Cantor Fitzgerald Securities as agent, pursuant to which PIP DAC's obligations under the DDTL will be secured by substantially all of the assets of PIP DAC and its future-acquired subsidiaries. Interest expense was approximately $816,000 and $1.6 million for the three and six months ended June 30, 2018 related to the DDTL and includes amortization of deferred financing costs. Accrued interest on the DDTL was approximately $489,000 and $484,000 as of June 30, 2018 and December 31, 2017, respectively. On August 1, 2018 the Company entered into an amendment of its Term Facility. These amendments were made to permit the exchange of the Treximet Secured Notes into Common Stock in the Exchange Transactions and Equitization Transaction, and to amend certain terms of the Credit Facilities, including (i) changes to permit the use of subsequent draws under the Term Facility for working capital or other general corporate purposes, and (ii) changes to the interest payment provisions under the Term Facility increasing the minimum percentage of interest that must be paid in cash to 6.00% per annum from 4.50% per annum.
Treximet Secured Notes
Total gross long-term debt	$ 166,697	166,697
Less unamortized discount	0	0
Less unamortized deferred financing costs	(3,844)	(2,810)
Total net long-term debt	$ 162,853	163,887
Debt, Description	Treximet Note Offering On August 19, 2014, the Company issued $220.0 million aggregate principal amount of its Treximet Secured Notes pursuant to an Indenture (the August 2014 Indenture) dated as of August 19, 2014 among the Company, certain of its subsidiaries (the Treximet Guarantors) and U.S. Bank National Association (the August 2014 Trustee), as trustee and collateral agent. On April 13, 2015, the Company amended the August 2014 Indenture to allow the Company to, among other things, incur up to $42.2 million of additional debt. On December 29, 2017, the Company and the August 2014 Trustee entered into a third supplemental indenture to amend the August 2014 Indenture to clarify the definition of "Net Sales", as such term is defined in the August 2014 Indenture and resulted in the deferral of $3.2 million of principal payments until maturity of the notes. The Treximet Secured Notes mature on August 1, 2020 and bear interest at a rate of 12% per annum, payable in arrears on February 1 and August 1 of each year (each, a Payment Date), beginning on February 1, 2015. On each Payment Date, commencing August 1, 2015, the Company began paying installments of principal of the Treximet Secured Notes in an amount equal to 50% of net sales of Treximet for the two consecutive fiscal quarters immediately preceding such Payment Date (less the amount of interest paid on the Treximet Secured Notes on such Payment Date). At each month-end beginning with January 2015, the net sales of Treximet will be calculated, the monthly interest accrual amount will then be deducted from the net sales and this resulting amount will be recorded as the current portion of the Treximet Secured Notes. If the Treximet net sales less the interest due at the end of each six-month period does not result in any excess over the interest due, no principal payment must be paid at that time. The remaining balance outstanding on the Treximet Secured Notes will be due on the maturity date, which is August 1, 2020. As of December 31, 2017, the Company classified $5.4 million, of the Treximet Secured Notes as a current liability and $166.7 million as a non-current liability at both June 30, 2018 and December 31, 2017. The Treximet Secured Notes are secured by a continuing first-priority security interest in substantially all of the assets of the Company and the Treximet Guarantors related to Treximet other than inventory and certain inventory related assets, including accounts arising from the sale of the inventory. Interest expense related to the Treximet Secured Notes was $5.5 million and $11.0 million for the three and six months ended June 30, 2018, respectively, and was $5.7 million and $11.6 million for the three and six months ended June 30, 2017, respectively. Interest expense includes amortization of deferred financing costs. Accrued interest on the Treximet Secured Notes was approximately $8.3 million and $8.6 million as of June 30, 2018 and December 31, 2017, respectively. On August 1, 2018, the Company entered into the 2018 Exchange Agreement with the Exchange Holders for newly issued shares of Common Stock and shares of Convertible Preferred Stock. The exchange transactions closed on August 1, 2018 and were as follows: exchange of approximately $2.7 million aggregate principal amount of the Treximet Secured Notes for 1,204,586 shares of Common Stock which includes accrued and unpaid interest on the Treximet Secured Notes; exchange of $8.0 million principal amount of the Treximet Secured Notes plus $100,000 of accrued and unpaid interest for 81,000 shares of Convertible Preferred Stock. The 2018 Exchange Agreement affords the Exchange Holders the right to exchange up to an additional $65.1 million aggregate principal amount of the Treximet Secured Notes plus accrued and unpaid interest, until February 1, 2020. On August 1, 2018, the Company entered into separate Equitization Exchange Agreements by and among Pernix and certain Equitization Holders of Treximet Secured Notes. Pursuant to the Equitization Exchange Agreements, the Company issued 650,190 shares of its Common Stock in exchange for approximately $1.5 million aggregate principal amount of Treximet Secured Notes held by such Equitization Holders plus accrued and unpaid interest thereon. This transaction closed on August 1, 2018.
Treximet Secured - Short Term
Total gross long-term debt	$ 0	5,373
Less unamortized discount	0	0
Less unamortized deferred financing costs	0	(1,709)
Total net long-term debt	0	3,664
ABL Credit Agreement
Total gross long-term debt	14,185	14,185
Less unamortized discount	0	0
Less unamortized deferred financing costs	0	0
Total net long-term debt	$ 14,185	$ 14,185
Line of Credit Facility, Description	Cantor Fitzgerald On July 21, 2017, Pernix and certain subsidiaries of Pernix as borrowers and guarantors (the ABL Borrowers) and PIP DAC, Pernix Ireland Limited, Pernix Holdco 1, LLC, Pernix Holdco 2, LLC and Pernix Holdco 3, LLC as additional guarantors (the ABL Guarantors), entered into an asset-based revolving credit agreement (the ABL Credit Agreement) with Cantor Fitzgerald Securities, as agent (the ABL Agent) and the lenders party thereto to obtain a five-year $40 million asset-based revolving credit facility (the ABL Facility). On April 23, 2018, the Company entered into an amendment, effective as of April 12, 2018, to modify the borrowing base formula which determines the Company's capacity to draw on the ABL Facility, which could increase such capacity. The amendment also removed concentration limits for accounts receivable due from individual customers or other account debtors that may be included in the borrowing base. The ABL Borrowers' obligations under the ABL Credit Agreement are guaranteed by the ABL Borrowers and the ABL Guarantors are secured by, among other things, the ABL Borrowers' cash, inventory and accounts receivable, in each case pursuant to a guaranty and security agreement between the ABL Borrowers, ABL Guarantors and Cantor Fitzgerald Securities as agent. Borrowings under the ABL Credit Agreement bear interest at the rate of LIBOR plus 7.50%, payable monthly, in addition to a commitment fee on any undrawn commitments at a rate per annum of 0.25%, payable monthly. The ABL Credit Agreement contains representations and warranties, affirmative and negative covenants, and events of default applicable to the Company, the other ABL Borrowers, the ABL Guarantors and their respective subsidiaries that are customary for credit facilities of this type. The ABL Credit Agreement will mature on July 21, 2022. Interest expense was $499,000 and $978,000 for the three and six months ended June 30, 2018 related to the ABL Credit Agreement and includes amortization of deferred financing costs. Accrued interest on the ABL Credit Agreement was approximately $9,000 and $19,000 as of June 30, 2018 and December 31, 2017, respectively. As of June 30, 2018, unamortized debt issuance costs of $581,000 and $1.8 million are recorded on the unaudited consolidated balance sheets in Prepaid expenses and other currents assets and Other assets, respectively, and are being amortized to interest expense over the life of the agreement. As of December 31, 2017, $581,000 and $2.1 million of unamortized debt issuance costs are recorded on the unaudited consolidated balance sheets in Prepaid expenses and other currents assets and Other assets, respectively. On August 1, 2018 the Company entered into an amendment of the ABL Facility. The amendment provides for (i) certain changes to the borrowing base calculation under the ABL Facility that are intended to improve the Company's borrowing capacity under the ABL Facility and that will also permit the Company, among other things, to include Contrave inventory owned by the Company in the calculation of the borrowing base, and (ii) a reduction in the commitments under the ABL Facility from $40.0 million to $32.5 million.
Wells Fargo Credit Facility
Line of Credit Facility, Description	Wells Fargo On August 21, 2015, the Company entered into the Credit Agreement with Wells Fargo, as Administrative Agent and the lenders party thereto for a $50.0 million, three-year senior secured revolving credit facility (the Wells Fargo Credit Facility). The ABL Facility entered into on July 21, 2017 replaced the Wells Fargo Credit Facility and the Company used the proceeds from the ABL Facility to repay the outstanding obligation of the Wells Fargo Credit Facility. Interest expense including amortization of deferred financing costs related to the Wells Fargo Credit Facility amounted to $478,000 and $606,000, for the three and six months ending June 30, 2017, respectively.

8. Debt (Details 1)

8. Debt (Details 1) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Debt And Lines Of Credit Details 1
2018 (July - December)	$ 0
2,019	0
2,020	166,697
2,021	78,225
2,022	80,529
Thereafter	0
Total maturities	325,451	$ 330,223
Less: note discount	(33,038)	(35,423)
Less: deferred financing costs	(11,248)	$ (12,647)
Total outstanding debt	$ 281,165

9. Stockholders_ Equity (Detail

9. Stockholders’ Equity (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Weighted average of the assumptions used to value stock options on the date of grant
Weighted average expected stock price volatility	86.30%	86.90%	86.40%	85.40%
Estimated dividend yield	0.00%	0.00%	0.00%	0.00%
Risk-free interest rate	3.00%	1.90%	2.70%	2.10%
Expected life of option (in years)	6 years 108 days	6 years 72 days	6 years 108 days	6 years 72 days
Weighted average grant date fair value per option	$ 1.95	$ 3.09	$ 1.86	$ 2.12

9. Stockholders_ Equity (Deta49

9. Stockholders’ Equity (Details 1) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares
Option Shares
Outstanding at December 31, 2017 | shares	1,042
Granted | shares	440
Exercised | shares	0
Cancelled | shares	(199)
Expired | shares	0
Outstanding at June 30, 2018 | shares	1,283
Options vested and expected to vest, as of June 30, 2018 | shares	812
Options vested and exercisable, as of June 30, 2018 | shares	233
Option Average Exercise Price
Outstanding at December 31, 2017 | $ / shares	$ 13.80
Granted | $ / shares	2.50
Exercised | $ / shares	0
Cancelled | $ / shares	11.48
Expired | $ / shares	0
Outstanding at June 30, 2018 | $ / shares	10.29
Options vested and expected to vest, as of June 30, 2018 | $ / shares	14.47
Options vested and exercisable, as of June 30, 2018 | $ / shares	$ 34.84
Option Weighted Average Remaining Contractual Life Years
Options outstanding at June 30, 2018	8 years 288 days
Options vested and expected to vest, as of June 30, 2018	8 years 144 days
Options vested and exercisable, as of June 30, 2018	7 years
Option Aggregate Intrinsic Value
Options outstanding at June 30, 2018 | $	$ 4
Options vested and expected to vest as of June 30, 2018 | $	3
Options vested and exercisable as of June 30, 2018 | $	$ 1

9. Stockholders_ Equity (Deta50

9. Stockholders’ Equity (Details 2) - Restricted shares $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares
Non-vested restricted stock outstanding at December 31, 2017 | shares	135
Granted | shares	62
Vested | shares	(2)
Forfeited | shares	(1)
Non-vested restricted stock outstanding at June 30, 2018 | shares	194
Weighted Average Grant Date Fair Value | $ / shares	$ 3.17
Granted | $ / shares	2.46
Vested | $ / shares	2.33
Forfeited | $ / shares	2.78
Weighted Average Grant Date Fair Value | $ / shares	$ 2.95
Unrecognized compensation cost related to non-vested retricted stock | $	$ 200
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 36 days

11. Commitments and Contingen51

11. Commitments and Contingencies (Details Narrative)	6 Months Ended
	Jun. 30, 2018
Texas Medicaid Fraud Prevention Act
Settlement description	During the first quarter of 2014, the Company settled all claims arising from certain actions by Cypress under the Texas Medicaid Fraud Prevention Act prior to its acquisition by the Company. As part of the settlement, the Company agreed to pay $12.0 million, payable in annual amounts of $2.0 million until the settlement is paid in full. As of June 30, 2018, the net present value of remaining payment obligations owed under this settlement agreement is $1.9 million and is recorded within other liabilities - current on the Company's unaudited condensed consolidated balance sheets as of June 30, 2018.
Somaxon [Member]
Settlement description	In July 2012 and January 2013, Somaxon settled two patent litigation claims with parties seeking to market generic equivalents of Silenor. As of June 30, 2018, remaining payment obligations of the Company owed under these settlement agreements are $500,000. The balance is payable in equal annual installments of $250,000 through 2019. The current portion is recorded in other liabilities - current and the non-current portion is recorded in other liabilities - long-term on the Company's unaudited condensed consolidated balance sheets as of June 30, 2018.

12. Restructuring (Details)

12. Restructuring (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Restructuring charges	$ 385	$ 31	$ 1,214	$ 131
Patent termination
Accrued restructuring costs	0		0		$ 0
Restructuring charges			774
Restructuring cash			(774)
Restructuring noncash			0
Employee termination
Accrued restructuring costs	$ 495		495		$ 265
Restructuring charges			440
Restructuring cash			$ (210)

14. Supplemental Cash Flow In53

14. Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Supplemental disclosures of Cash Flow Information:
Cash (received) paid for income taxes, net	$ 26	$ (878)
Cash paid for interest	14,095	14,415
Supplemental disclosures of Non-cash Investing and Financing Activities:
Amount added to principal of term loan for Payment-in-kind (PIK) interest	$ 601	$ 0