Pernix Therapeutics 10-Q 12 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 08, 2013
Document Information [Line Items]	'	'
Entity Registrant Name	'PERNIX THERAPEUTICS HOLDINGS, INC.	'
Entity Central Index Key	'0001024126	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
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	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	37,164,476
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Current assets:	'	'
Cash and cash equivalents	$9,690,898	$23,022,821
Accounts receivable, net	23,336,704	36,647,087
Inventory, net	16,517,332	22,014,405
Prepaid expenses and other current assets	6,694,481	3,888,117
Note Receivable	4,711,700	'
Prepaid income taxes	847,382	2,024,411
Deferred income taxes	6,156,000	8,118,500
Total current assets	67,954,497	95,715,341
Property and equipment, net	7,249,810	6,946,944
Other assets:	'	'
Investments	'	5,710,526
Goodwill	53,825,276	37,160,911
Intangible assets, net	100,312,371	104,054,431
Note Receivable	4,483,500	'
Other long-term assets	1,226,329	1,858,534
Total assets	235,051,783	251,446,687
Current liabilities:	'	'
Accounts payable	7,089,259	5,045,488
Accrued personnel expense	3,419,925	2,881,967
Accrued allowances	29,196,317	30,054,551
Other accrued expenses	5,063,980	5,548,084
Put option and contingent consideration - Cypress acquisition	15,649,369	6,562,169
Other liabilities	1,300,793	1,568,495
Debt	13,883,224	2,286,513
Total current liabilities	75,602,867	53,947,267
Long-term liabilities:	'	'
Put option and contingent consideration - Cypress acquisition	4,494,800	7,765,511
Other liabilities	3,103,406	'
Debt	1,345,554	41,349,563
Deferred income taxes	34,918,000	35,535,500
Total liabilities	119,464,627	138,597,841
Commitments and contingencies	'	'
Temporary Equity	'	'
Common stock subject to repurchase (3,565,692 and 4,427,084 shares as of September 30, 2013 and December 31, 2012, respectively)	27,634,113	34,309,901
STOCKHOLDERS' EQUITY	'	'
Common stock, $.01 par value, 90,000,000 shares authorized, 39,903,469 and 34,994,828 issued and 37,783,578 and 34,030,351 outstanding at September 30, 2013 and December 31, 2012, respectively)	335,549	296,033
Treasury stock, at cost (2,119,891 and 2,072,810 shares held at September 30, 2013 and December 31, 2012, respectively)	-3,980,629	-3,772,410
Additional paid-in capital	91,229,563	58,606,942
Retained earnings	368,560	20,433,262
Accumulated other comprehensive income	'	2,975,118
Total equity	87,953,043	78,538,945
Total liabilities and stockholders' equity	$235,051,783	$251,446,687

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Temporary Equity	'	'
Common stock subject to repurchase	3,565,692	4,427,084
Stockholders Equity	'	'
Common stock par value	$0.01	$0.01
Common stock shares authorized	90,000,000	90,000,000
Common stock shares issued	39,903,469	34,994,828
Common stock shares outstanding	37,783,578	34,030,351
Treasury Stock held, at cost	2,119,891	2,072,810

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) (USD $) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Statement [Abstract]	'	'	'	'
Net revenues	$18,295,130	$18,134,158	$60,946,404	$43,115,517
Costs and operating expenses:	'	'	'	'
Cost of product sales	9,571,818	7,759,761	33,811,615	15,861,461
Selling, general and administrative expense	11,739,675	9,837,217	38,960,310	24,302,513
Research and development expense	633,419	332,971	3,632,719	511,694
Loss from the operations of the joint venture with SEEK	'	'	'	240,195
Depreciation and amortization expense	2,672,291	885,982	7,466,991	2,320,589
(Gain) loss on sale of assets	-3,601	'	1,279	'
Total costs and operating expenses	24,613,602	18,815,931	83,872,914	42,236,452
Loss from operations	-6,318,472	-681,773	-22,926,510	-120,935
Other income (expense):	'	'	'	'
Change in fair value of put right	-2,145,700	'	-6,116,489	'
Change in fair value of contingent consideration	522,000	'	805,000	'
Interest expense, net	-782,782	7,431	-3,491,966	-59,976
Gain on sale of investment	'	'	3,605,000	'
Total other (loss) income, net	-2,406,482	7,431	-5,198,192	-59,976
Loss before income taxes	-8,724,954	-674,342	-28,124,702	-180,911
Income tax (benefit) provision	-2,676,000	-404,000	-8,060,000	-170,000
Net Loss	-6,048,954	-270,342	-20,064,702	-10,911
Reclassification adjustment for net realized gain included in net income (loss), net of income tax	'	808,374	-2,975,118	2,286,874
Comprehensive (Loss) income	($6,048,954)	$538,032	($23,039,820)	$2,275,963
Net Loss per share, basic	($0.16)	($0.01)	($0.55)	$0
Net Loss per share, diluted	($0.16)	($0.01)	($0.55)	$0
Weighted-average common shares, basic	37,120,890	29,069,119	36,204,340	27,765,275
Weighted-average common shares, diluted	37,120,890	29,069,119	36,204,340	27,765,275

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) (USD $)	Common Stock	Additional Paid-In Capital	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive income	Total
Beginning Balance, Amount at Dec. 31, 2012	$296,033	$58,606,942	($3,772,410)	$20,433,262	$2,975,118	$78,538,945
Stock-based compensation	2,600	1,513,653	'	'	'	1,516,253
Cancelled/reclass par of unvested restricted stock	-9,477	9,477	'	'	'	'
Issuance of stock options for services from non-employees	'	426,030	'	'	'	426,030
Issuance of common stock upon the exercise of options	400	111,200	'	'	'	111,600
Issuance of common stock in connection with employee stock purchase plan	223	72,192	'	'	'	72,415
Forfeit of restricted common stock in payment of income tax liability	-394	'	-208,219	'	'	-208,613
Issuance of common stock in connection with the Somaxon acquisition	36,576	23,803,848	'	'	'	23,840,424
Issuance of restricted stock in lieu of cash payment	977	103,047	'	'	'	104,024
Cancellation of Put Shares	8,611	6,667,174	'	'	'	6,675,785
Income tax benefit on stock based awards	'	-84,000	'	'	'	-84,000
Net loss	'	'	'	-20,064,702	'	-20,064,702
Reclassification adjustment for net realized gain included in net income (loss), net of income tax	'	'	'	'	-2,975,118	-2,975,118
Ending Balance, Amount at Sep. 30, 2013	$335,549	$91,229,563	($3,980,629)	$368,560	'	$87,953,043

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:	'	'
Net loss	($20,064,702)	($10,911)
Adjustments to reconcile net loss to net cash from operating activities:	'	'
Depreciation	488,187	162,814
Amortization of intangibles and interest accretion of contingent consideration	6,978,804	2,157,775
Amortization of deferred financing costs	1,120,390	'
Interest accretion on notes receivable	-28,200	'
Deferred income tax benefit	-10,230,000	-517,388
Gain on sale of investment	-3,605,000	'
Loss on disposal of assets	1,279	19,845
Stock compensation expense	1,516,253	1,901,568
Expense from stock options issued in exchange for services	426,030	540,252
Change in fair value of put right	6,116,489	'
Change in fair value of contingent consideration	-805,000	'
Loss from the operations of the joint venture with SEEK	'	240,195
Changes in operating assets and liabilities (net of effects of acquisitions):	'	'
Accounts receivable	14,507,263	855,760
Inventory	4,902,870	190,352
Prepaid expenses and other assets	-2,969,184	-147,639
Accounts payable	100,447	83,337
Income taxes	1,112,785	-2,299,606
Accrued expenses	-8,995,348	-2,502,663
Net cash from operating activities	-9,426,900	673,691
Cash flows from investing activities:	'	'
Proceeds from sale of investment	4,605,263	'
Acquisition of Cypress	-309,589	'
Acquisition of gastroenterology product license	'	-2,400,000
Proceeds from sale of certain Cypress intangible assets	19,588,137	'
Acquisition of Great Southern Laboratories ("GSL")	'	-4,666,964
Acquisition of license for non-codeine antitussive drug in development	'	-5,000,000
Other intangibles	'	-850,000
Proceeds from sale of property, plant and equipment	26,600	7,550
Purchase of property, plant and equipment	-509,957	-279,673
Net cash used in investing activities	23,400,454	-13,189,087
Cash flows from financing activities:	'	'
Cash acquired in connection with acquisition of Somaxon	2,880,837	'
Payments on original Midcap Loan	-12,497,196	'
Payments on term loan	-10,000,000	'
Net proceeds from revolving credit facility	-5,760,836	'
Payments on line of credit	'	-6,000,000
Payments on contracts payable	-1,700,000	-2,990,000
Proceeds from issuance of stock in additional offering, net of issuance costs of $846,202	'	23,751,032
Payments on mortgages and capital leases	-119,684	-80,732
Tax benefit on stock-based awards	-84,000	148,000
Proceeds from issuance of stock	184,015	172,973
Payment of employee income tax liability with surrender of employee restricted stock	-208,613	'
Net cash from financing activities	-27,305,477	15,001,273
Net (decrease) increase in cash and cash equivalents	-13,331,923	2,485,877
Cash and cash equivalents, beginning of period	23,022,821	34,551,180
Cash and cash equivalents, end of period	9,690,898	37,037,057
Supplemental Disclosure:	'	'
Cash paid for income taxes	1,370,379	2,446,643
Interest paid during the period	838,801	116,105
Non-cash transaction	'	'
Acquisition of Omeclamox license - contract payable	'	2,000,000
Accrued bonus paid in unrestricted common stock	'	199,770
Accrued bonus paid in restricted common stock	104,024	'
Assumption of mortgage in acquisition of GSL	'	1,641,668
Assumption of capital leases in acquisition of GSL	'	106,869
Acquisition of license and supply agreement - contract payable	500,000	850,000
Acquisition of Cypress and Somaxon - Purchase price adjustment (see Note 4)	5,916,121	'
Acquisition of Somaxon - Fair value of common stock	23,840,424	'
Non-cash intangible value of deferred tax liability related to intellectual property license acquired	'	$2,687,368

CONDENSED_CONSOLIDATED_STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) (Parenthetical) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Statement of Cash Flows [Abstract]	'	'
Proceeds from issuance of stock in additional offering	$0	$846,202

1_Company_Overview

1. Company Overview	9 Months Ended
	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
1. Company Overview	'
	Pernix Therapeutics Holdings, Inc. (“Pernix”, the “Company”, “we”, our”) is a specialty pharmaceutical company focused on the sales, marketing, manufacturing and development of branded, generic and over-the-counter, which we refer to herein as OTC, pharmaceutical products for pediatric and adult indications in a variety of therapeutic areas. Through the Company’s wholly-owned subsidiary, Pernix Sleep (formerly Somaxon Pharmaceuticals, Inc. “Somaxon”), the Company markets SILENOR® (doxepin), a non- controlled substance approved for the treatment of insomnia characterized by difficulty with sleep maintenance. The Company promotes branded pediatric and gastroenterology products through its sales force. The Company markets generic products in the areas of cough and cold, pain, vitamins, dermatology, antibiotics and gastroenterology through the Company’s wholly-owned subsidiaries, Macoven Pharmaceuticals and Cypress Pharmaceuticals. The Company’s wholly-owned subsidiary, Pernix Manufacturing, manufactures and packages products for the Company’s subsidiaries and for others in the pharmaceutical industry in a wide range of dosage forms.
	Business Combinations
	On March 6, 2013, the Company acquired all of the outstanding common stock of Somaxon Pharmaceuticals, Inc. pursuant to an agreement and plan of merger dated December 10, 2012. As a result of the merger, each outstanding share of Somaxon common stock was converted into the right to receive 0.477 shares of the Company’s common stock, with cash paid in lieu of fractional shares. As a result of the merger, the Company issued an aggregate of approximately 3,665,689 shares of its common stock to the former stockholders of Somaxon.. At the time of acquisition, Somaxon was only marketing Silenor. The company’s name was changed from Somaxon to Pernix Sleep, Inc.
	On December 31, 2012, the Company completed the acquisition of Cypress Pharmaceuticals, Inc., a generic pharmaceutical company, and its subsidiary Hawthorn Pharmaceuticals, Inc, a branded pharmaceutical company, both of which were privately owned companies, collectively referred to herein as Cypress. The Company paid $52 million in cash, issued 4,427,084 shares of our common stock (“the acquisition shares”) having an aggregate market value equal to approximately $34.3 million based on the closing price per share of $7.75 as reported on the NYSE MKT LLC on December 31, 2012, and agreed to pay up to $6.5 million in holdback and contingent payments, $4.5 million to be deposited in escrow on December 15, 2013 and $5.0 million in shares of our common stock upon the occurrence of a milestone event, for an aggregate purchase price of up to $102.3 million. The Company also granted a put right to the sellers pursuant to which the sellers may put the acquisition shares to the Company at approximately $5.38 per share, with such put right being exercisable from January 1, 2014 to January 31, 2014 under certain circumstances.  Cypress offers a wide array of branded and generic pharmaceutical products in the areas of cough and cold, nutritional supplements, analgesics, urinary tract, women’s health, pre-natal vitamins and dental health, as well as allergy, respiratory, iron deficiency, nephrology and pain management. See Note 4, Business Combinations and Other Acquisitions, and Note 12, Debt, for further discussion.
	Asset Dispositions
	Effective September 11, 2013, Pernix and Cypress entered into the Joinder Agreement and First Amendment to Asset Purchase Agreement (the “Purchase Agreement Amendment”) with Breckenridge Pharmaceutical, Inc., a Florida corporation (“Breckenridge”), to amend certain of the terms of the Asset Purchase Agreement (the “Purchase Agreement”) between the Company and Breckenridge dated August 5, 2013.  The Purchase Agreement Amendment amends the Purchase Agreement to, among other things, remove Arbinoxa, a currently marketed product, from the products being acquired by Breckenridge, add an additional product, Folic Acid 2.5 mg, an inactive product owned by Macoven, as a product to be acquired by Breckenridge, and provide for a reduction of the aggregate purchase price to $29,550,000 (which is net of a $150,000 prepayment by the Company of its share of expenses for the transfer of certain of the assets to Breckenridge).
	On September 11, 2013, the Company completed the sale (the “Closing”) of certain of its generic assets held by Cypress (the “Assets”) to Breckenridge. The acquisition was consummated pursuant to the terms of the Purchase Agreement, as amended.  Breckenridge paid the Company $2,000,000 in cash upon execution of the Purchase Agreement, and $17,850,000, before customary closing costs of approximately $173,000, in cash at Closing, and issued two promissory notes, each in an amount of $4,850,000, with one due on the first anniversary after Closing and the other due on the second anniversary after Closing, for an aggregate purchase price of up to $29,550,000. See Notes 5 and 12 for further discussion.

2_Basis_of_Presentation_and_Si

2. Basis of Presentation and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
2. Basis of Presentation and Significant Accounting Policies	'
	Interim Financial Statements
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.
	In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of these financial statements. Operating results for three and nine-months period ended September 30, 2013 are not necessarily indicative of the results for future periods or the full year.
	Principles of Consolidation
	The condensed consolidated financial statements include the accounts of Pernix’s wholly-owned subsidiaries: Pernix Therapeutics, LLC, GTA GP, Inc., GTA LP, Inc., Gaine, Inc., Macoven, Pernix Manufacturing (acquired July 1, 2012), Respicopea, Inc. (acquired May 14, 2012), Cypress (acquired December 31, 2012) and Pernix Sleep, Inc. (acquired March 6, 2013). Respicopea, Pernix Manufacturing, Cypress and Pernix Sleep are included only for the periods subsequent to their acquisitions.  Transactions between and among the Company and its consolidated subsidiaries are eliminated.
	Management’s Estimates and Assumptions
	The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. The Company reviews all significant estimates affecting the condensed consolidated financial statements on a recurring basis and records the effect of any necessary adjustments prior to their issuance. Significant estimates of the Company include: revenue recognition, sales allowances such as returns on product sales, government program rebates, managed care rebates, customer coupon redemptions, wholesaler/pharmacy discounts, product service fees, rebates and chargebacks, sales commissions, amortization, depreciation, stock-based compensation, the determination of fair values of assets and liabilities in connection with business combinations, and deferred income taxes.
	Fair Value of Financial Instruments
	A financial instrument is defined as cash equivalent, evidence of an ownership interest in an entity, or a contract that creates a contractual obligation or right to deliver or receive cash or another financial instrument from another party. The Company’s financial instruments consist primarily of cash equivalents (including our Regions Trust Account which invests in short-term securities consisting of sweep accounts, money market accounts and money market mutual funds), an investment in equity securities (TherapeuticsMD) (which was divested on June 14, 2013), contingent consideration and a put right in connection with the acquisition of Cypress.
	Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value as follows:
	Level 1	Quoted prices in active markets for identical assets or liabilities as of the reporting date.
	Level 2	Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities as of the reporting date.
	Level 3	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
	Revenue Recognition
	The Company’s consolidated net revenues represent the Company’s net product sales and collaboration revenues. The Company records all of its revenue from product sales and collaboration or co-promotion agreements when realized or realizable and earned. Revenue is realized or realizable and earned when all of the following criteria are met: (1) existence of persuasive evidence of an arrangement; (2) occurrence of delivery or rendering of services; (3) the seller’s price to the buyer is fixed or determinable; and (4) reasonable assurance of collectability. The Company records revenue from product sales when the customer takes ownership and assumes risk of loss. Royalty revenue is recognized upon shipment from the manufacturer to the purchaser. Co-promotion revenue is recognized in the period in which the product subject to the arrangement is sold. At the time of sale, estimates for a variety of sales deductions, such as returns on product sales, government program rebates, price adjustments and prompt pay discounts are recorded.
	The following table sets forth the computation of basic and diluted net income per share:
			Three Months Ended						Nine months ended
			September 30,						September 30,
			2013			2012			2013			2012
	Numerator:
	Net loss		$	(6,048,954	)	$	(270,342	)	$	(20,064,702	)	$	-10,911
	Denominator:
	Weighted-average common shares, basic			37,120,890			29,069,119			36,204,340			27,765,275
	Dilutive effect of stock options		─			─			─				─
	Weighted-average common shares, diluted			37,120,890			29,069,119			36,204,340			27,765,275
	Net loss per share, basic and diluted		$	(0.16	)	$	(0.01	)	$	(0.55	)	$	─
	The Company’s customers for its products consist of drug wholesalers, 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 nine months ended September 30, 2013 and 2012, or 10% of total accounts receivable as of September 30, 2013 and December 31, 2012.
			Three Months Ended						Nine months ended
			September 30,						September 30,
			2013			2012			2013			2012
	McKesson Corporation			30%			29%			34%			29%
	AmerisourceBergen Drug Corporation			26%			7%			17%			11%
	Cardinal Health, Inc.			22%			41%			27%			36%
	Walgreens Corporation			5%			11%			6%			7%
	Total			83%			88%			84%			83%
			Accounts Receivable
			September 30,			December 31,
			2013			2012
	AmerisourceBergen Drug Corporation			36%			6%
	McKesson Corporation			29%			17%
	Cardinal Health, Inc.			14%			43%
	Walgreens Corporation			3%			11%
	Total			82%			77%
	Other Revenue Sharing Arrangements
	The Company enters into collaborative arrangements to develop and commercialize drug candidates. Collaborative activities might include research and development, marketing and selling (including promotional activities and physician detailing), manufacturing, and distribution. These collaborations often require royalty or profit share payments, contingent upon the occurrence of certain future events linked to the success of the product. Revenues related to products sold by the Company pursuant to these arrangements are included in product sales, while other sources of revenue such as royalties and profit share receipts are included in collaboration, royalty and other revenue as further discussed below. Operating expenses for costs incurred pursuant to these arrangements are reported in their respective expense line item.
	The Company seeks to enter into co-promotion agreements to enhance the promotional efforts and sales of products. The Company may enter into co-promotion agreements whereby it obtains rights to market other parties’ products in return for certain commissions or percentages of revenue on the sales Pernix generates. Alternatively, Pernix may enter into co-promotion agreements with respect to its products whereby it grants another party certain rights to market or otherwise promote one or more of its products. Typically, the Company will enter into this type of co-promotion arrangement when a particular product is not aligned with its product focus or it lacks sufficient sales force representation in a particular geographic area. Co-promotion revenue is included in net revenues. Expense from co-promotion agreements is included in cost of product sales.
	As previously reported, in December 2010, we entered into a joint venture (JV) with infirst+ (formerly SEEK) for the development of BC 1036. On May 14, 2012, the Company acquired the exclusive rights from SEEK, its former joint venture partner, to commercialize and market products utilizing the joint venture’s intellectual property (IP) in the areas of cough, cold, sinus and allergy in the United States and Canada. Effective August 30, 2013, we re-licensed all of our rights to these assets in the United States and licensed the Dr. Cocoa trademark and logo to infirst+ in exchange for a royalty of 5% of net sales in the United States through 2019 and 2.5% of net sales in the United States and Canada from 2020 through 2029.  Through our subsidiary, Pernix Manufacturing, we are currently working with infirst+ on a supply agreement to supply certain of infirst+’s manufactured product in the United States.  As a result of this transaction, we no longer have any rights to a royalty for products utilizing the IP outside of the United States and Canada.
	In September 2013, the Company amended the terms of our co-promotion agreement with ParaPRO. ParaPRO will assume responsibility for distribution of NATROBA and related activities, and the Company and its subsidiaries will no longer purchase quantities of NATROBA at a discount for sale to customers. The Company will continue to provide promotion services for NATROBA in its assigned territories for co-promotion fees based on prescriptions generated by its sales force. With respect to generic products covered by the agreement, the Company will continue to provide distribution and co-promotion services for fees based on units distributed and prescriptions dispensed in defined territories. The Company’s management expects the Company’s gross product sales for NATROBA to decrease based on the removal of the distribution-related revenue from the terms of the co-promotion arrangement. However, the Company’s management expects that the corresponding decreases in cost of goods and gross-to-net deductions and other distribution costs will substantially offset this decrease in gross product sales.
	Cost of Product Sales
	Cost of product sales is comprised of (1) costs to manufacture or acquire products sold to customers; (2) royalty, co-promotion and other revenue sharing payments under license and other agreements granting the Company rights to sell related products; (3) direct and indirect distribution costs incurred in the sale of products; and (4) the value of any write-offs of obsolete or damaged inventory that cannot be sold. The Company acquired the rights to sell certain of its commercial products through license and assignment agreements with the original developers or other parties with interests in these products.  These agreements obligate the Company to make payments under varying payment structures based on our net revenue from related products.
	As part of the acquisitions of Cypress and Somaxon, the Company adjusted the predecessor cost basis increasing inventory to fair value as required by ASC 820.  As a result, $8,600,000 and $695,000, respectively, was recorded to adjust inventory to fair value.  For the three and nine months ended September 30, 2013, approximately $412,000 and $5,123,000, respectively, of the increase in the basis of the inventory was included in cost of product sales.
	Net Revenues
	Product Sales
	The Company recognizes revenue from its product sales in accordance with its revenue recognition policy discussed above.  The Company sells its products primarily to large national wholesalers, which have the right to return the products they purchase, and accordingly the Company estimates the amount of future returns at the time of revenue recognition.  The Company recognizes product sales net of estimated allowances for product returns, government program rebates, price adjustments, and prompt pay discounts.
	Product Returns
	Consistent with industry practice, the Company offers contractual return rights that allow its customers to return short-dated or expiring products within an 18-month period, commencing from six months prior to and up to twelve months subsequent to the product expiration date. The Company’s products have a 15 to 36-month expiration period from the date of manufacture. The Company adjusts its estimate of product returns if it becomes aware of other factors that it believes could significantly impact its expected returns. These factors include its estimate of inventory levels of its products in the distribution channel, the shelf life of the product shipped, review of consumer consumption data as reported by external information management companies, actual and historical return rates for expired lots, the forecast of future sales of the product, competitive issues such as new product entrants and other known changes in sales trends. The Company estimates returns at percentages up to 10% of sales of branded and generic products and, from time to time, higher return percentages on new product launches.  Returns estimates are based upon historical data and other facts and circumstances that may impact future expected returns to derive an average return percentage for our products.  The returns reserve may be further adjusted as sales history and returns experience is accumulated on our portfolio of products or as our portfolio of products changes. The Company reviews and adjusts these reserves quarterly. There is a time lag between the date we determine the estimated allowance and when we receive product returns and issue credits to customers. Changes in facts and circumstances arising during this interval may result in adjustments to our estimated allowance being recorded over several periods, which would impact our operating results in those periods.
	Government Program Rebates
	The liability for Medicaid, Medicare and other government program rebates is estimated based on historical and current rebate redemption and utilization rates contractually submitted by each state’s program administrator and assumptions regarding future government program utilization for each product sold.
	Price Adjustments
	The Company’s estimates of price adjustments, which include customer rebates, managed care rebates, service fees, chargebacks, shelf stock adjustments, coupon redemptions and other fees and discounts, are based on our estimated mix of sales to various third-party payors who are entitled, either contractually or statutorily, to discounts from the listed prices of our products and contracted service fees with our wholesalers. In the event that the sales mix to third-party payors or the contract fees paid to the wholesalers are different from the Company’s estimates, the Company may be required to pay higher or lower total price adjustments and/or incur chargebacks that differ from its original estimates and such difference may be significant.
	The Company’s estimates of discounts are applied pursuant to the contracts negotiated with certain customers and are primarily based on sales volumes. The Company, from time to time, offers certain promotional product-related incentives to its customers. These programs include sample cards to retail consumers, certain product incentives to pharmacy customers and other sales stocking allowances. For example, the Company has initiated coupon programs for certain of its promoted products whereby the Company offers a point-of-sale subsidy to retail consumers. The Company estimates its liabilities for these coupon programs based on redemption information provided by a third party claims processing organization. The Company accounts for the coupon redemption costs of these special promotional programs as price adjustments, resulting in a reduction in gross revenue.  The administrative fees related to these programs are accounted for in selling, general and administrative expenses.
	Any price adjustments that are not contractual or are non-recurring but that are offered at the time of sale or when a specific triggering event occurs, such as sales stocking allowances or price protection adjustments, are recorded as a reduction in revenue when the sales order is recorded or when the triggering event occurs. These allowances may be offered at varying times throughout the year or may be associated with specific events such as a new product launch, the reintroduction of a product or product price changes.
	Prompt Payment Discount
The Company typically requires its customers to remit payments within the first 30 days for branded products and within 60 to 120 days for generics, depending on the customer and the products purchased. The Company offers wholesale distributors a prompt payment discount if they make payments within these deadlines. This discount is generally 2-3%, but may be higher in some instances due to product launches and/or industry expectations. Because the Company’s wholesale customers typically take the prompt pay discount, we accrue 100% of prompt pay discounts. These discounts are based on the gross amount of each invoice at the time of our original sale to them. Earned discounts are applied at the time of payment. This allowance is recorded as a reduction of accounts receivable.
Segment Information
The Company currently markets two major product lines: a branded pharmaceuticals product line and a generic pharmaceuticals product line. These product lines qualify for reporting as a single segment in accordance with GAAP because they are similar in the nature of the products and services, production processes, types of customers, distribution methods and regulatory environment. The Company has a manufacturing subsidiary but the majority of its revenue is currently generated through intercompany sales and is eliminated in consolidation. Accordingly, it is deemed immaterial for segment reporting purposes.  The Company initiated an OTC division in 2012 but this division has not marketed any products to date and, therefore, has no revenue and is currently deemed immaterial for segment reporting purposes.
Earnings per Share
Earnings per common share is presented under two formats: basic earnings per common share and diluted earnings per common share. Basic earnings per common share is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period, plus the potentially dilutive impact of restricted stock and common stock equivalents (i.e. stock options). Dilutive common share equivalents consist of the incremental common shares issuable upon exercise of stock options and vesting of restricted stock.
The following table sets forth the computation of basic and diluted net income per share:
		Three Months Ended						Nine months ended
		September 30,						September 30,
		2013			2012			2013			2012
Numerator:
Net loss		$	(6,048,954	)	$	(270,342	)	$	(20,064,702	)	$	-10,911
Denominator:
Weighted-average common shares, basic			37,120,890			29,069,119			36,204,340			27,765,275
Dilutive effect of stock options		─			─			─				─
Weighted-average common shares, diluted			37,120,890			29,069,119			36,204,340			27,765,275
Net loss per share, basic and diluted		$	(0.16	)	$	(0.01	)	$	(0.55	)	$	─
At September 30, 2013, the Company had 662,788 shares of unvested restricted stock and 1,647,333 total outstanding options of which 837,994 are vested and exercisable.  Options and restricted stock not included above are anti-dilutive.  See Note 15, Employee Compensation and Benefits, for information regarding the Company’s outstanding options.
Investments in Marketable Securities and Other Comprehensive Income
The Company held investments in marketable equity securities as available-for-sale and the change in the market value gives rise to other comprehensive income.  The components of other comprehensive income are recorded in the condensed consolidated statements of  comprehensive income, net of the related income tax effect.  As of September 30, 2013, the Company has liquidated its investments in marketable equity securities as described below.
On October 5, 2011, the Company acquired 2.6 million shares of TherapeuticsMD for a purchase price of $1.0 million, or $0.38 per share, representing approximately 3.2% of TherapeuticsMD’s outstanding common stock at that time.  The Company’s purchase was contingent upon TherapeuticsMD’s acquisition of VitaMedMD, which occurred on October 4, 2011. In connection with the Company’s purchase of shares of TherapeuticsMD, the Company also entered into a software license agreement with VitaMedMD pursuant to which VitaMedMD granted the Company an exclusive license to use certain of its physician, patient and product data gathering software in the field of pediatric medicine for a period of five years for a monthly fee of $21,700.  As of September 30, 2013, the Company has not activated this software license agreement and has not paid monthly fees pursuant thereto.  Cooper Collins, the Company’s then Chief Executive Officer, was appointed to the board of Therapeutics MD on February 29, 2012.
On June 14, 2013, the Company sold all its shares of TherapeuticsMD for approximately $4,605,000 in cash proceeds, recognizing a gain on the investment of approximately $3,605,000.  Approximately $2,300,000 of the proceeds were utilized to pay down its term loan (See Note 12, Debt).
Reclassifications
Certain reclassifications have been made to prior period amounts in our consolidated statements of comprehensive (loss) income to conform to the current period presentation.  These reclassifications related to the classification of the cost of samples as a selling expense instead of being included in cost of product sales and the classification of coupon processing and program administrative fees as selling expense instead of being included in net sales.  These reclassifications had no effect on net loss as previously reported.
Recent Accounting Pronouncements
In July 2013, the Financial Accounting Standards Board issued a clarification regarding the presentation of an unrecognized tax benefit related to a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. Under this new standard, the liability related to an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset if available under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position. Otherwise, the unrecognized tax benefit should be presented in the financial statements as a separate liability. The assessment is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date. The provisions of the new standard are effective on a prospective basis beginning in 2014 for annual and interim reporting periods. Early adoption is permitted. While we are still determining the impact of this standard on the presentation of both our deferred tax assets and income taxes payable, implementation of the standard will have no impact on our consolidated statements of operations.
There have been no other recent accounting pronouncements that have not yet been adopted by us that are expected to have a material impact on our condensed consolidated financial statements from the accounting pronouncements previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2012.
Liquidity and Capital Resources
The Company’s operations have been financed primarily through revenue from sales of its marketed products, the sale of equity securities, its credit facilities, the proceeds from its sale of assets to Breckinridge and the proceeds from the exercise of warrants and stock options. The Company has incurred losses from operations and negative operating cash flows since June 2012, and it expects to continue to incur losses for the foreseeable future as it continues its commercial activities, commercializes any other products to which it obtains rights or receives regulatory approvals and pursues the development of or acquisition of rights to other products or product candidates.
In addition, the Company faces the potential for significant cash outflows in the near term based on the contingent consideration and put rights related to our acquisition of Cypress. The Company has initiated the indemnity claim process with the Cypress selling stockholders to obtain financial relief under the original securities purchase agreement which may offset or reduce the amounts of contingent liabilities the Company faces relating to the Cypress acquisition. The Company believes that its claims are well-supported. In the event that the Company is unsuccessful in obtaining a satisfactory outcome with respect to such claims, including any future related litigation that may be undertaken, the Company may be unable to meet certain contingent obligations relating to this matter and the Company's liquidity may be impaired.
With respect to the Company’s operating obligations that are not related to the Cypress acquisition, the Company intends to rely upon its cash on hand and accounts receivable generated through sales of its products (including those generated during the cold and flu season, when sales of the Company’s cough and cold products have historically trended upward), as well as potential continued cost reductions in its business. However, based on our recurring losses, negative cash flows from operations, financial obligations and working capital levels, the Company may need to raise additional funds to finance its operations. If the Company is unable to maintain sufficient financial resources, including by raising additional funds when needed, the Company’s business, financial condition and results of operations will be materially and adversely affected.
The Company intends to obtain any additional funding it may require through public or private equity or debt financings, strategic relationships, including the divestiture of non-core assets, assigning receivables, milestone payments or royalty rights, or other arrangements and the Company cannot assure such funding will be available on reasonable terms, or at all. Additional equity financing will be dilutive to stockholders, and debt financing, if available, may involve restrictive covenants. Any exploration of strategic alternatives may not result in an agreement or transaction and, if completed, any agreement or transaction may not be successful or on attractive terms. The inability to enter into a strategic transaction, or a strategic transaction that is not successful or on attractive terms, could accelerate our need for cash and make securing funding on reasonable terms more difficult. In addition, if the Company raises additional funds through collaborations or other strategic transactions, it may be necessary to relinquish potentially valuable rights to its potential products or proprietary technologies, or grant licenses on terms that are not favorable to the Company.
The Company has an effective shelf registration statement on Form S-3 filed with the SEC under which it may offer from time to time any combination of debt securities, common and preferred stock and warrants. However, the rules and regulations of the SEC or other regulatory agencies may restrict its ability to conduct certain types of financing activities, or may affect the timing of and the amounts it can raise by undertaking such activities. For example, under current SEC regulations, because the aggregate market value of our common stock held by non-affiliates (“public float”) is less than $75 million, the amount that it can raise through primary public offerings of securities in any twelve-month period using one or more registration statements on Form S-3 is limited to an aggregate of one-third of our public float.
If our efforts in raising additional funds when needed are unsuccessful, the Company may be required to delay, scale-back or eliminate plans or programs relating to our business, relinquish some or all rights to our products or renegotiate less favorable terms with respect to such rights than it would otherwise choose or cease operating as a going concern. In addition, if the Company does not meet its payment obligations to third parties as they come due, the Company may be subject to litigation claims. Even if the Company were successful in defending against these potential claims, litigation could result in substantial costs and be a distraction to management, and may result in unfavorable results that could further adversely impact our financial condition.
If the Company is unable to continue as a going concern, the Company may have to liquidate its assets and may receive less than the value at which those assets are carried on its financial statements, and it is likely that investors will lose all or a part of their investments. These financial statements do not include any adjustments that might result from the outcome of this uncertainty.

3_Fair_Value_Measurement

3. Fair Value Measurement	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
3. Fair Value Measurement	'
	The following tables summarize the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring and nonrecurring basis as of September 30, 2013 and December 31, 2012 (in thousands):
			30-Sep-13
			Level 1			Level 2		Level 3		Total
	Liabilities
	Contingent consideration(1)		$	─		$	─	$	10,662	$	10,662
	Put right(2)			─			─		9,482		9,482
	Total Liabilities		$	─		$	─	$	20,144	$	20,144
			31-Dec-12
			Level 1			Level 2		Level 3		Total
	Assets
	Investments in TherapeuticsMD		$	─		$	─	$	5,711	$	5,711
	Total Assets		$	─		$	─	$	5,711	$	5,711
	Liabilities
	Contingent consideration(1)		$	─		$	─	$	10,962	$	10,962
	Put right(2)			─			─		3,365		3,365
	Total Liabilities		$	─		$	─	$	14,327	$	14,327
	(1)	Contingent consideration consists of certain holdback payments, contingent cash and equity payments and future cash to be placed in escrow with respect to our acquisition of Cypress. The fair value of the contingent consideration is included in other liabilities on the accompanying condensed consolidated balance sheets. The fair value of contingent consideration has been estimated using probability weighted discounted cash flow models (DCF). The DCF incorporates Level 3 inputs including estimated discount rates that the Company believes market participants would consider relevant in pricing and the projected timing and amount of cash flows, which are estimated and developed, in part, based on the requirements specific to the Cypress acquisition agreement. The Company analyzes and evaluates these fair value measurements quarterly to determine whether valuation inputs continue to be relevant and appropriate or whether current period developments warrant adjustments to valuation inputs and related measurements. Any increases or decreases in discount rates would have an inverse impact on the value of related fair value measurements, while increases or decreases in expected cash flows would result in a corresponding increase or decrease in fair value measurements.
	-2	The fair value of the put right is included in other current liabilities.  The fair value of the put right was $9.5 million as of September 30, 2013, calculated using a Black-Scholes valuation model with assumptions for the following variables: term, closing Pernix stock price on the acquisition date, risk-free interest rates and expected volatility, with the volatility factor being the input subject to the most variation.  Therefore, as pertaining to the put right, the Company is exposed to market risk in regards to the rate and magnitude of change of our stock price and corresponding variations to the volatility factor used in the Black-Scholes valuation model.  We evaluated this risk by estimating the potential adverse impact of a 10% increase in the volatility factor and determined that such a change in the volatility factor would have resulted in an approximately $16,000 increase to the put right liability and a corresponding reduction to pre-tax income (loss) for the three and nine months ended September 30, 2013.  See Note 6, Derivative Instruments.
		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 nine months ended September 30, 2013.
	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Assets:		Investment in Therapeutics MD
	Beginning balance at January 1, 2013		$	5,710,526
	Net realized and unrealized gains (losses)
	Included in earnings (in other income)			3,605,263
	Included in accumulated other comprehensive income (pre-tax) (1)			(4,710,526	)
	Sale of Investment in TherapeuticsMD			(4,605,263	)
	Ending balance at September 30, 2013		$	─
	Liabilities:		Contingent
			Liability
			Consideration
	Beginning balance at January 1, 2013		$	14,327,680
	Interest accretion of Cypress contingent consideration			505,000
	Change in fair value of Cypress contingent consideration			-805,000	)
	Change in fair value of Cypress put right			6,116,489
	Ending balance at September 30, 2013		$	20,144,169
	(1)	Recorded as a component of other comprehensive income within stockholders’ equity, net of tax.
	The Company believes the carrying amount of its debt, contracts payable, and capital lease obligations are a reasonable estimate of their fair value due to the remaining maturity of these items and/or their fluctuating interest rates.

4_Business_Combinations_and_Ot

4. Business Combinations and Other Acquisitions	9 Months Ended
	Sep. 30, 2013
Business Combinations [Abstract]	'
Business Combinations and Other Acquisitions	'
	Consideration paid by the Company for the businesses it purchases is allocated to the assets and liabilities acquired based upon their estimated fair values as of the date of the acquisition. The excess of the purchase price over the estimated fair values of the assets acquired and liabilities assumed is recorded as goodwill.
	Somaxon Acquisition
	On March 6, 2013, Pernix completed an acquisition of Somaxon pursuant to an agreement and plan of merger dated December 10, 2012.  As a result of the transaction, each outstanding share of Somaxon common stock was converted into the right to receive 0.477 shares of Pernix common stock. Somaxon stockholders received approximately 3.66 million shares of Pernix common stock which was calculated based on a value weighted average price of Pernix stock and a common stock value consideration of $25 million. Upon completion of the merger all unexercised and unexpired warrants to purchase Somaxon common stock were assumed by Pernix and were estimated to have a fair value of $0.9 million at the closing date.
	The Somaxon acquisition broadened the Company’s product portfolio and provides the opportunity for OTC development of Silenor, a non-controlled substance approved for the treatment of insomnia characterized by difficulty with sleep maintenance.
	The Somaxon acquisition was accounted for as a business combination in accordance with Accounting Standards Codification (“ASC”) No. 805 “Business Combinations” (“ASC 805”) which, among other things, requires assets acquired and liabilities assumed to be measured at their acquisition date fair values. The purchase price allocation is preliminary with respect to taxes and certain accruals and includes the use of estimates based on information currently available. The Company believes the estimates used are reasonable and the significant effects of the Somaxon acquisition are properly reflected.  However, the estimates are subject to change as additional information becomes available and is assessed by the Company.  During the three months ended September 30, 2013, the Company made adjustments to recognize previously unrecorded liabilities of approximately $0.6 million. During the nine months ended September 30, 2013, the Company made adjustments to increase intangible asset values by $0.3 million and to recognize previously unrecorded liabilities of approximately $1.7 million. Additional changes to the purchase price allocation may result in a corresponding change to the goodwill in the period of change.
	The following table summarizes the consideration paid to acquire Somaxon and the estimated values of assets acquired and liabilities assumed in the accompanying unaudited condensed consolidated balance sheet based on their fair values on March 6, 2013 (in thousands, except stock price):
			March 6,				Measurement Period Adjustment (i)			March 6,
			2013							2013
			(as initially reported)							(As adjusted)
	Consideration (ii) :
	Shares of Pernix common stock issued to Somaxon’ stockholders			3,665			─				3,665
	Pernix common stock price		$	6.26		$	─			$	6.26
	Fair value of common stock issued		$	22,945		$	─			$	22,945
	Fair value of warrants (iii)			895			─				895
	Total consideration		$	23,840		$	─			$	23,840
	Estimated Fair Value of Liabilities Assumed:
	Current liabilities		$	8,764			$	1,607		$	10,371
	Long-term liabilities			3,403				─			3,403
	Long-term deferred tax liability (iv)			11,342				111			11,453
	Amount attributable to liabilities assumed		$	23,509			$	1,718		$	25,227
	Total purchase price plus liabilities assumed		$	47,349			$	1,718		$	49,067
	Estimated Fair Value of Assets Acquired:
	Current assets, excluding inventory		$	4,782			$	─		$	4,782
	Inventory (v)			1,090				─			1,090
	Intangible assets (vi)			30,729				300			31,029
	Amount attributable to assets acquired		$	36,601			$	300		$	36,901
	Goodwill (vii)		$	10,748			$	1,418		$	12,166
	(i)	After the March 31, 2013 condensed consolidated financial statements were filed, the Company updated certain estimates used in the purchase price allocation, primarily with respect to fair value of the consideration, deferred tax amounts and other accruals due to more current information. The adjustments are based on updated assumptions and information related to facts and circumstances that existed as of the acquisition date as well as confirmatory information related to accruals.
	(ii)	Under the terms of the merger agreement, consideration paid by Pernix consisted of approximately 0.477 shares of Pernix common stock for each share of Somaxon common stock and assumption of Somaxon’ s warrants. The fair value of the total purchase price was based upon the price of Pernix common stock on the day immediately prior to the closing date of the transaction, March 6, 2013. The Company issued a total of 3.66 million shares of its common stock to former Somaxon stockholders in exchange for their shares of Somaxon common stock and assumed approximately 469,000 outstanding warrants.
	(iii)	The $0.9 million fair value of the assumed warrants was calculated using a Black-Scholes valuation model with assumptions for the following variables: price of Pernix stock on the closing date of the merger; risk-free interest rates; and expected volatility. The assumed warrants have been classified as equity.
	(iv)	The Company received carryover tax basis in Somaxon’s assets and liabilities because the acquisition was not a taxable transaction under the United States Internal Revenue Code of 1986, as amended. Based upon the preliminary purchase price allocation, an increase in financial reporting carrying value related to the intangible assets and the inventory acquired from Somaxon is expected to result in a deferred tax liability of approximately $11.3 million (subsequently increased by $.1 million to $11.4 million).
	(v)	As of the effective date of the acquisition, inventories are required to be measured at fair value. The estimated increase is preliminary and could vary materially from the actual values; the fair value of inventory was estimated based on estimated percentage of completion of work-in-progress inventory and selling costs left to incur.
	(vi)	As of the effective date of the Somaxon acquisition, identifiable intangible assets are required to be measured at fair value and these acquired assets could include assets that are not intended to be used or sold or that are intended to be used in a manner other than their highest and best use. For purposes of the valuation, it is assumed that all assets will be used and that all assets will be used in a manner that represents the highest and best use of those assets, but it is not assumed that any market participant synergies will be achieved. The consideration of synergies has been excluded because they are not considered to be factually supportable.
		The fair value of identifiable intangible assets is determined primarily using the income method, which starts with a forecast of all the expected future net cash flows. Some of the more significant assumptions inherent in the development of intangible asset values, from the perspective of a market participant, include: the amount and timing of projected future cash flows (including revenue, cost of sales, research and development costs, sales and marketing expenses, capital expenditures and working capital requirements) as well as estimated contributory asset charges; the discount rate selected to measure the risks inherent in the future cash flows; and the assessment of the asset’s life cycle and the competitive trends impacting the asset, among other factors.
		The consolidated financial statements include estimated identifiable intangible assets representing in-process research and development, or IPR&D, intangibles valued at $22.3 million and core technology intangibles valued at $7.7 million. The IPR&D are considered indefinite-lived intangible assets until the completion or abandonment of the associated research and development efforts. Accordingly, during the development period, these assets are not amortized but are subject to impairment review. The core technology intangible assets represent developed technology of products approved for sale in the market, which we refer to as marketed products, and have finite useful lives. They are amortized on a straight line basis over a weighted average period of 4 years.
	(vii)	Goodwill is calculated as the difference between the acquisition date fair value of the consideration transferred and the values assigned to the assets acquired and liabilities assumed. Goodwill is not amortized but tested for impairment on an annual basis or when indications of impairment exist. Goodwill is not deductible for tax purposes. Goodwill specifically includes the expected synergies and other benefits that the Company believes will result from combining its operations with those of Somaxon and other intangible assets that do not qualify for separate recognition, such as assembled workforce in place at the date of acquisition.
	Cypress Acquisition
	On December 31, 2012, the Company completed the acquisition of Cypress  by purchasing all the outstanding capital stock of Cypress from the former stockholders of Cypress. The Company paid $52.0 million in cash and issued 4,427,084 shares of the Company’s common stock with a market value equal to approximately $34.3 million based on the closing price per share of $7.75 as reported on the NYSE MKT LLC on December 31, 2012. In addition, the Company agreed to pay a holdback payment up to $5.5 million on December 15, 2013, a $1.0 million payment contingent on Cypress’ 2013 gross sales, $4.5 million to be deposited in escrow on December 15, 2013 and $5.0 million in shares of Company’s common stock upon the occurrence of a milestone event, for an aggregate purchase price up to $102.3 million, with a fair value, including the value of the put right (see Note 1), of approximately $100.6 million.
	The Cypress acquisition significantly increased and broadened the Company’s branded and generic product portfolio and provided the Company with in-house product development and regulatory expertise. Since 2008, Cypress has been awarded nine ANDA and three NDA approvals (REZIRA, ZUTRIPRO and VITUZ) and currently has nine ANDAs on file with the FDA for future approvals.  See Note 5, Disposition of Certain Cypress Assets, for discussion of the sale of certain of the generic assets and ANDAs which were acquired in the Cypress acquisition.
	The Cypress acquisition was accounted for as a business combination in accordance with ASC No. 805 “Business Combinations” (“ASC 805”) which, among other things, requires assets acquired and liabilities assumed to be measured at their acquisition date fair values.
	A preliminary allocation of the purchase price as of December 31, 2012 was prepared in connection with the Company's annual financial statements filed on Form 10-K for the period ended December 31, 2012. Concurrent with the sale of the Cypress assets to Breckenridge (see Note 1) in September 2013, the Company obtained an updated valuation summary of the purchase consideration which was compared to the preliminary fair value estimates that were used to prepare the initial purchase price allocation. With the information, the Company updated the assets acquired, as well as certain other estimates used in the initial purchase price allocation related to deferred tax amounts and other accruals based on the updated valuation. That allocation is still preliminary with respect to final tax amounts, pending completion of the 2013 Cypress tax return and certain accruals and includes the use of estimates based on information that was available to management at the time these unaudited condensed consolidated financial statements were prepared. The Company believes the estimates used are reasonable and the significant effects of the acquisition are properly reflected. However, the estimates are subject to change as additional information becomes available and is assessed by the Company.  Additional changes to the purchase price allocation may result in a corresponding change to the goodwill in the period of change.  During the three and nine months ended September 30, 2013, approximately $541,000 and $4,498,000, respectively, in re-measurement adjustments were made, primarily with respect to fair value of the consideration, deferred tax amounts and other accruals due to more current information. The adjustments are based on updated assumptions and information related to facts and circumstances that existed as of the acquisition date as well as confirmatory information related to accruals.
	See Note 5, Disposition of Certain Cypress Assets, for more information regarding the sale of certain intangibles assets.
	Pro Forma Impact of Acquisitions (Unaudited)
	The following unaudited pro forma combined results of operations are provided for the three and nine months ended September 30, 2013 and 2012 as though the Somaxon and the Cypress acquisitions had been completed as of January 1, 2012. The pro forma combined results of operations for the three and nine months ended September 30, 2013 have been prepared by adjusting historical results of the Company to include the historical results of Somaxon and the pro forma combined results of operations for the three and nine months ended September 30, 2012 have been prepared by adjusting the historical results of the Company to include the historical results of Somaxon and Cypress. These supplemental pro forma results of operations are provided for illustrative purposes only and do not purport to be indicative of the actual results that would have been achieved by the combined company for the periods presented or that may be achieved by the combined company in the future.  The pro forma results of operations do not include any cost savings or other synergies that resulted, or may result, from the Somaxon and Cypress acquisitions or any estimated costs that will be incurred to integrate Somaxon and Cypress.  Future results may vary significantly from the results reflected in this pro forma financial information because of future events and transactions, as well as other factors.
		Three Months ended September 30,								Nine Months ended September 30,
		(unaudited, in thousands)								(unaudited, in thousands)
			2013				2012			2013			2012
			(Pro forma)				(Pro forma)			(Pro forma)			(Pro forma)
	Revenue		$	18,295			$	30,436		$	62,675		$	85,393
	Net loss		$	(6,049	)		$	(5,972	)	$	(22,282	)	$	(13,490	)
	Pro forma net income (loss) per common share
	Basic		$	(0.16	)		$	(0.16	)	$	(0.62	)	$	(0.38	)
	Diluted		$	(0.16	)		$	(0.16	)	$	(0.62	)	$	(0.38	)
	The Company’s historical financial information was adjusted to give effect to the pro forma events that were directly attributable to the Somaxon and the Cypress acquisitions and factually supportable. The unaudited pro forma consolidated results include the historical revenues and expenses of assets acquired and liabilities assumed in the acquisitions with the following adjustments:
	●	Adjustment to recognize incremental amortization expense based on the fair value of intangibles acquired;
	●	Eliminate historical interest expense for Cypress debt that was extinguished;
	●	Adjustment to recognize interest expense for debt issued in connection with the Cypress transaction;
	●	Eliminate transaction costs and non-recurring charges directly related to the Somaxon acquisition that were included in the historical results of operations for Pernix and Somaxon;
	●	Adjustment to recognize pro forma income tax based on 28.3% rate;
	●	Adjustment to recognize the issuance of 4.4 million shares of the Company’s common stock as consideration for the Cypress acquisition; and
	●	Adjustment to recognize the issuance of 3.6 million shares of the Company’s common stock as consideration for the Somaxon acquisition.
	For the three months and nine months ended September 30, 2013, the Company recognized net revenue for Somaxon subsequent to the closing on March 6, 2013 in the amount of $1.6 million and $5.1 million, respectively. Non-recurring transaction costs of $3.2 million related to the Somaxon acquisition for the nine months ended September 30, 2013 are included in the consolidated statement of operations in selling, general and administrative expenses.  These non-recurring transaction costs have been excluded from the pro forma results in the above table.
	Acquisition of GSL
On July 2, 2012, the Company acquired the business assets of Great Southern Laboratories, or GSL, a pharmaceutical contract manufacturing company located in Houston, Texas. The Company closed on the related real estate on August 30, 2012. Upon the final closing, the Company paid an aggregate of approximately $4.9 million (including $300,000 deposited to an escrow that was subsequently refunded to the Company as payment for unrecorded liabilities), and assumed certain liabilities totaling approximately $5.9 million for substantially all of GSL’s assets including the land and buildings in which GSL operates. GSL has an established manufacturing facility for the pharmaceutical industry, which was expected to provide the Company with potential cost savings going forward. The Company acquired the GSL assets through a wholly-owned subsidiary, Pernix Manufacturing, LLC. The results of operations of Pernix Manufacturing have been included in the Company’s consolidated financial statements since the acquisition date.
The GSL Acquisition was accounted for as a business combination in accordance with ASC No. 805 “Business Combinations” (“ASC 805”) which, among other things, requires assets acquired and liabilities assumed to be measured at their acquisition date fair values. The purchase price allocation was preliminary and was based on estimates of fair values at the date of the acquisition. The Company evaluated the preliminary purchase price allocation, which was adjusted as additional information relative to the fair value of assets and liabilities became available.
Pro forma combined results of operations for the three months and nine months ended September  30, 2012 as though the GSL acquisition had been completed as of January 31, 2012 are omitted from this quarterly report on Form 10-Q. The Company determined that it is impractical to include such pro forma information given the immateriality of the transaction and the difficulty in obtaining the historical financial information of GSL. Inclusion of such information would require the Company to make estimates and assumptions regarding GSL’s historical financial results that we believe may ultimately prove inaccurate.

5_Disposition_Of_Certain_Cypre

5. Disposition Of Certain Cypress Assets	9 Months Ended
	Sep. 30, 2013
Disposition Of Certain Cypress Assets	'
Disposition of Certain Cypress Assets	'
	As discussed in Note 1, on September 11, 2013, the Company completed the sale of certain of its generic assets held by Cypress to Breckenridge pursuant to the Purchase Agreement, as amended. The assets included seven previously marketed products, eight Abbreviated New Drug Applications (ANDAs) filed at the FDA, and certain other ANDAs in various stages of development and the transfer of $1.0 million in inventory.
	Breckenridge paid the Company $2,000,000 in cash upon execution of the Purchase Agreement, $17,850,000, before customary closing costs of approximately $173,000, in cash at Closing, and issued two promissory notes, each in an amount of $4,850,000, with one due on the first anniversary after Closing and the other due on the second anniversary after Closing, for an aggregate purchase price of up to $29,550,000.
	The following unaudited pro forma combined results of operations are provided for the three and nine months ended September 30, 2013 and 2012 as though the disposition had occurred on January 1, 2012.
	The unaudited pro forma condensed consolidated statements of operations for the three and nine months ended September 30, 2013 reflect the following pro forma adjustments:
	(1)	Eliminates the revenues and cost of goods sold as if the transaction occurred on January 1, 2012.
	(2)	Reflects the reduction in amortization resulting from excluding the assets that were sold from intangible assets, net as if the transaction occurred on January 1, 2012.
	(3)	Reduces interest expense resulting from applying a portion of the net proceeds as the repayment of the term loan balance outstanding at September 11, 2013 under the Company’s Credit Agreement.
	(4)	Reflects an adjustment to income tax expense as a result of the adjustments described above.
	The unaudited pro forma condensed consolidated financial information is provided for illustrative purposes only and does not purport to represent what the actual results of operations would have been had the transaction occurred on the respective date assumed, nor is it necessarily indicative of the Company’s future operating results. However, the pro forma adjustments reflected in the accompanying unaudited pro forma condensed consolidated financial information reflect estimates and assumptions that the Company’s management believes to be reasonable.
	Pro forma adjustments related to the unaudited pro forma condensed consolidated statements of operations for the three and nine months ended September 30, 2013 were computed assuming the transaction was consummated on January 1, 2012 and include adjustments which give effect to events that are (i) directly attributable to the transaction, (ii) expected to have a continuing impact on the Company, and (iii) factually supportable.
		Three Months ended							Nine Months ended
		September 30,							September 30,
			(unaudited, in thousands)						(unaudited, in thousands)
			2013			2012			2013			2012
			(Pro forma)			(Pro forma)			(Pro forma)			(Pro forma)
	Revenue		$	17,400		$	29,541		$	56,260		$	79,785
	Net loss		$	(5,886	)	$	(6,011	)	$	(21,036	)	$	(15,282	)
	Pro forma net income (loss) per common share
	Basic		$	(0.16	)	$	(0.17	)	$	(0.58	)	$	-0.43
	Diluted		$	(0.16	)	$	(0.17	)	$	(0.58	)	$	-0.43

6_Derivative_Instruments

6. Derivative Instruments	9 Months Ended
	Sep. 30, 2013
Derivative Instruments and Hedges, Assets [Abstract]	'
Derivative Instruments	'
	In connection with the acquisition of Cypress effective December 31, 2012, the Company issued a put right to Cypress’ former shareholders.  The put right, which expires on January 31, 2014, is exercisable during the thirty-day period immediately following the one-year anniversary date of the business acquisition, which if exercised would enable them to sell any of the shares they still hold (3,565,692 as of September 30, 2013 from the underlying 4,427,084 shares of the Company’s common stock they received as part of the purchase consideration), back to the Company at a price of $5.38 per share, which represents a 30% discount off of the per-share value established on the effective date of the closing of the acquisition.  In accordance with the relevant authoritative accounting literature a portion of the total purchase consideration was allocated to this put liability based on its initial fair value, which was determined to be $3.4 million using a Black-Scholes model. The inputs used in the valuation of the put right include term, stock price volatility, current stock price, exercise price, and the risk free rate of return. At September 30, 2013, the fair value of the put right liability was re-measured and was determined to have increased $2.1 million and $6.1 million during the three and nine month periods then ended, respectively, with such amounts reflected as a loss included in other non-operating income in the accompanying Condensed Consolidated Statement of Comprehensive (Loss) Income. As of September 30, 2013, the aggregate fair value of this derivative instrument, which is included in current liabilities in the Condensed Consolidated Balance Sheet, was $9.5 million. The Company has classified the put right, for which the fair value is re-measured on a recurring basis at each reporting date as a Level 3 instrument (i.e. wherein fair value is partially determined and based on unobservable inputs that are supported by little or no market activity), which the Company believes is the most appropriate level within the fair value hierarchy based on the inputs used to determine its fair value at the measurement date.

7_Accounts_Receivable

7. Accounts Receivable	9 Months Ended
	Sep. 30, 2013
Accounts Receivable, Net [Abstract]	'
Accounts Receivable	'
	Accounts receivable consist of the following:
		September 30,			December 31,
		2013			2012
	Trade accounts receivable	$	22,614,182		$	35,723,488
	Less allowance for prompt pay discounts		(473,625	)		(727,714	)
	Total trade receivables		22,140,557			34,995,774
	Receivables from third parties – revenue sharing arrangements		1,683,078			1,690,544
	Less allowance for doubtful accounts		(486,931	)		(39,231	)
	Total account receivables		23,336,704			36,647,087
	The Company typically requires customers to remit payments within the first 30 days for brand purchases or 60 to 120 days for generic purchases (depending on the customer and the products purchased). The Company offers wholesale distributors a prompt payment discount, which is typically 2-3%, as an incentive to remit payment within these deadlines. Accounts receivable are stated net of the estimated prompt pay discount. The Company’s management evaluates accounts receivable to determine if a provision for an allowance for doubtful accounts is appropriate.

8_Inventories

8. Inventories	9 Months Ended
	Sep. 30, 2013
Inventory Disclosure [Abstract]	'
Inventories	'
	Inventories consist of the following:
		September 30,			December 31,
		2013			2012
	Raw materials	$	2,034,008		$	1,550,736
	Packaging materials		940,282			866,674
	Samples		836,021			792,702
	Finished goods		14,208,577			19,860,995
			18,018,888			23,071,107
	Reserve for obsolescence		(1,501,556	)		(1,056,702	)
	Inventory, net	$	16,517,332		$	22,014,405
	An increase in the basis of inventory related to the acquisitions of Cypress and Somaxon is included in the balances above as of September 30, 2013 and December 31, 2012.  The increase included in raw materials resulted from the Somaxon acquisition and was approximately $260,000 and $0 as of September 30, 2013 and December 31, 2012, respectively.  The increase included in finished goods from the Cypress and Somaxon acquisitions was approximately $3,690,000, in the aggregate, as of September 30, 2013 and $8,600,000 from the Cypress acquisition as of December 31, 2012.

9_Intangible_Assets_and_Goodwi

9. Intangible Assets and Goodwill	9 Months Ended
	Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
Intangible Assets and Goodwill	'
	Intangible assets consist of the following:
					September 30,				December 31,
			Life		2013				2012
	Patents		12 - 15 years		$	1,442,000			$	1,442,000
	Brand		8 years			3,887,000				3,887,000
	Product licenses		1 – 13 years			16,183,794				15,135,050
	Customer relationships		6 years			1,848,000				1,848,000
	Non-compete and supplier contracts		2 - 7 years			5,194,571				5,194,571
	Trademark rights		Indefinite			638,563				638,563
	In-process research and development acquired(1)					43,733,000				45,200,000
	Developed technology		9-12 years			40,000,000				37,000,000
						112,926,928				110,345,184
	Accumulated amortization					(12,614,557	)			-6,290,753
	Total				$	100,312,371			$	104,054,431
	-1	Amortization will begin once the related products go into production; if the product in development fails or is abandoned, it will be written off.
	Estimated amortization expense related to intangible assets with definite lives for each of the five succeeding years and thereafter is as follows:
			Amount
	2013 (September – December)		$	1,890,713
	2014			7,682,420
	2015			7,682,420
	2016			7,682,420
	2017			6,166,374
	Thereafter			24,836,462
	Total		$	55,940,809
	Amortization expense is approximately $2,491,000 and $6,979,000 for the three and nine months ended September 30, 2013 and $775,000 and $2,158,000 for the three and nine months ended September 30, 2012, respectively.
	Changes in the carrying amount of goodwill for the nine months ended September 30, 2013 and the year ended December 31, 2012 are as follows:
			September 30,				December 31,
			2013				2012
	Beginning Balance		$	37,160,911			$	1,406,591
	Goodwill acquired – Somaxon			10,748,243			─
	Goodwill acquired – Cypress		─					34,838,745
	Goodwill acquired – GSL		─					915,575
	Adjustments (1)			5,916,122			─
	Total		$	53,825,276			$	37,160,911
	-1	Primarily reflects the impact of measurement period adjustments related to the Cypress and Somaxon acquisitions composed of a deferred tax asset on the increase in the basis of the acquired inventory, an increase in certain accrued allowances and the impact of the re-evaluation of the opening balance sheet Cypress intangible assets and inventory.  See Note 1, Company Overview and Note 5, Disposition of Certain Cypress Assets, for further discussion.

10_Accrued_Allowances

10. Accrued Allowances	9 Months Ended
	Sep. 30, 2013
Accrued Liabilities [Abstract]	'
Accrued Allowances	'
	Accrued allowances consist of the following:
		September 30,		December 31,
		2013		2012
	Accrued returns allowance	$	10,340,500	$	12,057,464
	Accrued price adjustments		5,406,064		10,960,042
	Accrued government program rebates		13,449,753		7,037,045
	Total	$	29,196,317	$	30,054,551

11_Other_Liabilities

11. Other Liabilities	9 Months Ended
	Sep. 30, 2013
Other Liabilities [Abstract]	'
Other Liabilities	'
	Other liabilities consist of the following:
		September 30,		December 31,
		2013		2012
	Stock repurchase contract with employee	$	─	$	600,000
	Product license contracts		─		630,000
	Settlement obligations (see Note 17)		3,685,000	─
	Other		334,454		338,495
	Deferred revenue		384,745	─
	Total contracts payable and other obligations	$	4,409,199	$	1,568,495
	Other liabilities – current	$	1,300,793	$	1,568,495
	Other liabilities – long term	$	3,103,406	$	─

12_Debt

12. Debt	9 Months Ended
	Sep. 30, 2013
Debt Disclosure [Abstract]	'
Debt	'
	Debt consists of the following:
		September 30,		December 31,
		2013		2012
	Amounts outstanding under the Credit Facility – MidCap Funding V, LLC	$	13,741,968	$	42,000,000
	Stancorp Mortgage		1,483,145		1,580,748
	Capital leases (see Note 17)		3,665		55,328
	Total debt	$	15,228,778	$	43,636,076
	Debt – current	$	13,883,224	$	2,286,513
	Debt – long term	$	1,345,554	$	41,349,563
	Credit Facility – MidCap Funding V, LLC
	In connection with the purchase of all of the capital stock of Cypress, the Company, together with its subsidiaries, entered into a Credit and Guaranty Agreement, dated December 31, 2012, with MidCap Funding V, LLC, as administrative agent, a lender and as a co-bookrunner, and Business Development Corporation of America, as co-bookrunner, and additional lenders from time to time party thereto (the "Original Credit Agreement"). The Original Credit Agreement provided for a term credit facility of $42 million. Subject to certain permitted liens, the obligations under this facility were secured by a first priority perfected security interest in substantially all of the assets of the Company and its subsidiaries. The proceeds from this facility were used to fund a portion of the cash consideration of the acquisition of Cypress.
	The Original Credit Agreement was subject to certain financial and nonfinancial covenants that were significantly more onerous than the covenants under our prior facility with Regions, and also contained customary representations and warranties and event of default provisions for a secured credit facility.
	The facility bore interest at a rate equal to the sum of the LIBOR rate plus an applicable margin of 6.50% per annum (9.0% at April 30). The Company was required to make quarterly repayments beginning on March 31, 2013 and ending on December 31, 2017, when all remaining principal was due and payable. In addition, the Company was able to voluntarily repay outstanding amounts under the Original Credit Agreement at any time without premium or penalty.  On May 8, 2013, the Company, together with its subsidiaries, entered into the Amended and Restated Credit Agreement (the “Restated Credit Agreement”) with MidCap Financial, LLC, as Administrative Agent and as a lender, and additional lenders from time to time party thereto. The Restated Credit Agreement amends and restates in its entirety the Original Credit Agreement.
	The Restated Credit Agreement provided for a term loan of $10 million and a revolving loan commitment of $20 million. In connection with the entry into the Restated Credit Agreement, the Company prepaid approximately $12 million of the term loan that had been previously outstanding under the Original Credit Agreement. Under the Restated Credit Agreement, the Company’s borrowing base on the revolving loan commitment is equal to (A) 85% of eligible accounts, plus (B) 50% of eligible inventory, minus (C) certain reserves and/or adjustments, subject to certain conditions and limitations. Notwithstanding the foregoing, the Restated Credit Agreement provided for an advance of up to $3 million in excess of the Company’s borrowing base until June 5, 2013, at which time all excess amounts were paid. Unlike the Original Credit Agreement, the Restated Credit Agreement does not include covenants limiting capital expenditures or requiring the Company to maintain a fixed charge coverage ratio and leverage ratio, but rather contains covenants requiring the Company to maintain a minimum amount of EBITDA and net invoiced revenues. Similar to the Original Credit Agreement, the Restated Credit Agreement includes customary covenants for a secured credit facility, which include, among other things, (a) restrictions on (i) the incurrence of indebtedness, (ii) the creation of or existence of liens, (iii) the incurrence or existence of contingent obligations, (iv) making certain dividends or other distributions, (v) certain consolidations, mergers or sales of assets and (vi) purchases of assets, investments and acquisitions; and (b) requirements to deliver financial statements, reports and notices to the administrative agent and other lenders. The Restated Credit Agreement also contains customary representations and warranties and event of default provisions for a secured credit facility.
	The loans under this facility bear interest at a rate equal to the sum of the LIBOR rate plus an applicable margin of 7.50% per annum. Pursuant to the Restated Credit Agreement, the Company paid certain customary fees to the administrative agent and lenders.
	Under the Restated Credit Agreement, we were required to make monthly repayments of $333,333 on the term loan beginning on November 7, 2013 and ending on May 7, 2016, when all remaining principal is due and payable.  Approximately $2,300,000 of the proceeds from the sale of TherapeuticsMD stock were utilized to pay down the term loan in September 2013.  The revolving loan will be paid based on our cash receipts through a lockbox arrangement.  In addition, we are able to voluntarily prepay outstanding amounts under the revolving loan commitment at any time, subject to certain prepayment penalties.
	Pursuant to the terms of the Restated Credit Agreement, the closing of the sale of certain Cypress assets (see Note 1) triggered a requirement by the Company to repay the term loan included in the Credit Agreement.  At the closing, the Company paid approximately $7.7 million from the sale proceeds to MidCap in fulfillment of this requirement, and as a result, the term loan has been repaid in full. As of September 30, 2013, the outstanding balance under the revolver was approximately $13.7 million.  The Company has approximately $6.3 million of remaining available funds subject to borrowing base capacity as of September 30, 2013.
	As with the Original Credit Agreement, the obligations under the Restated Credit Agreement are secured by a first priority perfected security interest in substantially all of the assets of the Company and its subsidiaries, subject to certain permitted liens.  The May 2013 amendments described above were treated as a modification of debt under GAAP, and the Company expensed $630,000 of deferred financing fees and recorded approximately $23,000 and $548,000 of new deferred financing fees for the three and nine months ended September 30, 2013.
	Mortgage
	Certain real estate acquired in the acquisition of GSL is encumbered by a mortgage that the Company assumed. The monthly fixed payment under this mortgage, including principal and interest, is approximately $19,000 until February 1, 2022. This mortgage is included under the caption Debt – short term and Debt – long term on the Condensed Consolidated Balance Sheets as of September 30, 2013 and December 31, 2012.  The outstanding mortgage balance is approximately $1,483,000 and $1,581,000 as of September 30, 2013 and December 31, 2012, respectively.

13_Temporary_Equity

13. Temporary Equity	9 Months Ended
	Sep. 30, 2013
Temporary Equity Disclosure [Abstract]	'
Temporary Equity	'
	The Company issued 4,427,084 shares of its common stock as consideration to the sellers for the Cypress acquisition. These shares are subject to a put right that provides the sellers of Cypress a cash settlement right.  This cash redemption feature is bifurcated from the common stock issued as a consideration and is classified as current liability.  Subsequent to the acquisition of Cypress, 861,392 shares that were subject to the put right were sold by former Cypress shareholders on the open market.  See Note 6, Derivative Instruments, for further information.

14_Stockholders_Equity

14. Stockholders' Equity	9 Months Ended
	Sep. 30, 2013
Stockholders Equity	'
Stockholders' Equity	'
	Controlled Equity Offering
	On February 10, 2012, the Company entered into a controlled equity offering sales agreement with Cantor Fitzgerald & Co. pursuant to which the Company could issue and sell shares of its common stock having an aggregate offering price of up to $25,000,000 from time to time through Cantor, acting as agent, but in no event more than 5,000,000 shares of common stock. The Company paid Cantor a commission rate of 3.0% of the gross sales price per share of the common stock sold through Cantor. The Company reimbursed Cantor an amount equal to $50,000, representing certain expenses incurred by Cantor in connection with entering into the sales agreement and provided Cantor with customary indemnification rights. The Company sold 2,966,739 shares of common stock under this controlled equity program for total net proceeds of approximately $23.8 million and closed the controlled equity offering on May 1, 2012. The offering was made pursuant to our effective shelf registration statement filed with the Securities and Exchange Commission on May 31, 2011. The Company used the proceeds of this financing to provide funding for acquisitions and general corporate purposes in 2012.
	Stock Repurchase Contract with Related Party
	On September 10, 2010, Pernix entered into an agreement, pursuant to a stock repurchase authorization from our board of directors on May 12, 2010, to purchase 2,000,000 shares of its common stock from an employee of Pernix at $1.80 per share. The aggregate purchase price of $3,600,000 was paid in equal quarterly installments of $300,000 over three years.  The final payment on this agreement was made on April 1, 2013.

15_Employee_Equity_Compensatio

15. Employee Equity Compensation and Benefits	9 Months Ended
	Sep. 30, 2013
Employee Benefits and Share-based Compensation [Abstract]	'
Employee Equity Compensation and Benefits	'
	The Company participates in a 401(k) plan, which covers substantially all full-time employees. The Plan is funded by employee contributions and discretionary matching contributions determined by management. At the Company’s discretion, it may match up to 100 percent of each employee’s contribution, not to exceed the first six percent of the employee’s individual salary. There is a six-month waiting period from date of hire to participate in the plan. Employees are 100 percent vested in employee and employer contributions. Contribution expense was approximately $95,000 and $349,000 for the three and nine month periods ended September 30, 2013, respectively.  Contribution expense was approximately $86,000 and $269,000 for the three and nine month periods ended September 30, 2012, respectively.
	Stock Options
	The Company’s 2009 Stock Incentive Plan was approved concurrent with its merger with Golf Trust of America (“GTA”), Inc. on March 9, 2010. The maximum number of shares that can be offered under this plan is 5,000,000. Incentives may be granted under the 2009 Plan to eligible participants in the form of (a) incentive stock options, (b) non-qualified stock options, (c) restricted stock, (d) restricted stock units, (e) stock appreciation rights and (f) other stock-based awards.
	As of September 30, 2013, approximately 30,000 options remain outstanding that were issued to current officers under former incentive plans of GTA. The remaining average contractual life of these options is approximately 1.4 months.
	The Company currently uses the Black-Scholes option pricing model to determine the fair value of its stock options. The determination of the fair value of stock-based payment awards on the date of grant using an option pricing model is affected by the Company’s stock price, as well as assumptions regarding a number of complex and subjective variables. These variables include the Company’s expected stock price volatility over the term of the awards, actual employee exercise behaviors, risk-free interest rate and expected dividends.
	The following table shows the assumptions used to value stock options on the date of grant, as follows:
			Nine Months
			Ended
			September 30,
			2013
	Weighted average expected stock price volatility			66.8	%
	Estimated dividend yield			0	%
	Risk-free interest rate			1	%
	Expected life of option (in years)			6
	Weighted average fair value per share		$	4.64
	The Company has not paid and does not anticipate paying cash dividends; therefore, the expected dividend rate is assumed to be 0%. The expected stock price volatility for the stock options is based on historical volatility of a representative peer group of comparable companies selected using publicly available industry and market capitalization data. The risk-free rate was based on the U.S. Treasury yield curve in effect at the time of grant commensurate with the expected life assumption. The expected life of the stock options granted was estimated based on the historical exercise patterns over the option lives.The following table shows the option activity, described above, during the nine months ended September 30, 2013:
	Option Shares		Shares			Average
						Exercise
						Price
	Outstanding at December 31, 2012(1)			1,711,167		$	4.87
	Granted			295,000			4.07
	Exercised			(40,000	)		2.79
	Cancelled			(318,834	)		6.09
	Expired		─			─
	Outstanding at September 30, 2013			1,647,333		$	4.54
	Vested and exercisable, end of period			837,994		$	4.61
	The intrinsic value of options exercised during the nine months ended September 30, 2013 and 2012 was approximately $132,000 and $210,000, respectively.
	The weighted-average grant date fair value for options granted during the nine months ended September 30, 2013 and 2012 was approximately $4.64 and $5.33, respectively.
	The following table shows the details by range of exercise price for the total options outstanding at September 30, 2013:
				Options Outstanding				Options Exercisable
	Range of Exercise Price			Shares		Remaining Contractual Life		Shares			Price
	($)					(years)					($)
	1.94 - 2.20			5,000		1.4		5,000			$	2.2
	3.31 – 4.20	-1		1,278,000		7.5		638,000				3.71
	6.1			137,666		7.9		89,994				6.1
	7.75 – 8.62			136,667		8.5		58,334				8.13
	9.02 – 10.35			90,000		8.3		46,666				9.82
				1,647,333		7.5		837,994			$	3.75
	(1) Includes 460,000 options granted to ParaPRO, LLC on August 3, 2011, that vest over seven years, pursuant to the commercial terms of the co-promotion arrangement between the Company and ParaPRO for the marketing and sale of Natroba.  For additional information, see Note 17, Commitments and Contingencies.
	As of September 30, 2013, the aggregate intrinsic value of 837,994 options outstanding and exercisable was approximately $2,600.
	As of September 30, 2013, there was approximately $568,000 of total unrecognized compensation cost related to unvested stock options issued to employees and directors of the Company, which is expected to be recognized ratably over a weighted-average period of 1.5 years.
	Restricted Stock
	The following table shows the Company's nonvested restricted stock outstanding at September 30, 2013:
						Weighted Average
						Grant Date
	Restricted Stock Shares		Shares			Fair Value
	Nonvested at December 31, 2012			728,333		$	7.47
	Granted			357,654			3.42
	Vested			(138,332	)		7.85
	Forfeited			(284,867	)		6.46
	Nonvested at September 30, 2013			662,788		$	5.64
	Approximately $2,791,000 of total unrecognized compensation cost related to unvested restricted stock is expected to be recognized over a weighted-average period of 1.9 years.
	Employee Stock Purchase Plan
	Effective July 22, 2010, the Company adopted the 2010 Employee Stock Purchase Plan to provide substantially all employees an opportunity to purchase shares of its common stock through payroll deduction, up to 10% of eligible compensation with a $25,000 maximum deferral. Semi-annually (on May 1 and November 1), participant account balances will be used to purchase shares of stock at the lesser of 85 percent of the fair market value of shares at the beginning or end of such six-month period. The Employee Stock Purchase Plan expires on July 22, 2020. A total of 1,000,000 shares are available for purchase under this plan of which 60,159 have been issued. Compensation expense related to the Employee Stock Purchase Plan and included in the table below for the nine months ended September 30, 2013 and 2012 was approximately $59,000 and $56,000 respectively.
	Stock-Based Compensation Expense
	The following table shows the approximate amount of total stock-based compensation expense recognized (included in selling, general and administrative expenses) for employees and non-employees:
			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2013			2012			2013				2012
	Employees		$	401,000		$	546,000		$	1,216,000			$	1,412,000
	Non-employees/Directors			91,000			132,000			300,000				489,000
	Total		$	492,000		$	678,000		$	1,516,000			$	1,901,000

16_Income_Taxes

16. Income Taxes	9 Months Ended
	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	The effective income tax rate from continuing operations is different from the federal statutory rate for the nine months ended September 30, 2013 and 2012 for the following reasons:
		Nine Months Ended
		September 30,
		2013			2012
	Expected taxes at statutory rates		(35.0	)%		(35.0	)%
	State taxes, net of federal tax benefit		(1.7	)%		(33.2	)%
	Nondeductible expenses		1	%		7.6	%
	Put right expense		7.5	%	─		%
	Other	(0.5		)%		0.7	%
			(28.7	)%		(59.9	)%

17_Commitments_and_Contingenci

17. Commitments and Contingencies	9 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies	'
	Legal Proceedings
	Somaxon Pharmaceuticals, Inc. Shareholder Litigation (Lead Case No. 37-201200087821-CU-SLCTL)
	A purported class action lawsuit was filed in the Superior Court of California County of San Diego by Daniele Riganello, who, prior to the consummation of the merger between Pernix and Somaxon on March 6, 2013 (the “Merger”), was an alleged stockholder of Somaxon (Riganello v. Somaxon, et al., No. 37-201200087821-CU-SLCTL). A second purported class action was also filed in the court by another alleged stockholder (Wasserstrom vs. Somaxon, et al., No. 37-2012-00029214-CU-SL-CTL). The lawsuits were consolidated into a single action captioned In re Somaxon Pharmaceuticals, Inc. Shareholder Litigation (Lead Case No. 37-201200087821-CU-SLCTL). The operative complaint named as defendants Somaxon, Pernix, Pernix Acquisition Corp. I, as well as each of the former members of Somaxon’s board of directors (the “Individual Defendants”). It alleged, among other things, that (i) the Individual Defendants breached fiduciary duties they assertedly owed to Somaxon’ s former stockholders in connection with the Merger (ii) Somaxon and Pernix aided and abetted the purported breaches of fiduciary duty; (iii) the merger consideration was unfair and inadequate; and (iv) the disclosures regarding the Merger in the Registration Statement on Form S-4, initially filed with the Securities and Exchange Commission on January 7, 2013 (the “Proxy Statement/Prospectus”), were inadequate.
	On January 24, 2013, solely to avoid the costs, risks and uncertainties inherent in litigation and without admitting any liability or wrongdoing, Pernix and the other named defendants in such litigation signed a memorandum of understanding (the “MOU”) to settle such litigation. In accordance with the MOU, Pernix made certain additional disclosures related to the Merger in the Proxy Statement/Prospectus and agreed to reimburse the plantiffs for certain legal expenses in the amount of $185,000, which is accrued in other liabilities. Subject to confirmatory discovery, which was completed in April 2013, and court approval of a definitive stipulation of settlement, which was filed in July 2013, the MOU resolves the claims brought in such litigation and provides a release and settlement by the purported class of Somaxon’s former stockholders of all claims against the defendants and their affiliates and agents in connection with the Merger. The asserted claims will not be released until such stipulation of settlement is approved by the court. There can be no assurance that the court will approve such settlement. Additionally, in connection with the proposed settlement, plaintiffs in such litigation intend to seek an award of attorneys’ fees and expenses in an amount to be approved or determined by the court.
	In addition to the above proceedings, Pernix is subject to various claims and litigation arising in the ordinary course of business. In the opinion of management, the outcome of such matters will not have a material effect on Pernix’s financial position or results of operations.
	Texas Attorney General Medicaid Investigation
	On May 9, 2013, our subsidiary, Cypress Pharmaceuticals, Inc., received notice from the Office of the Attorney General of the State of Texas that it had completed its initial analysis of transaction data provided by Cypress during 2012 to the Attorney General’s office and offering to settle all claims that the Attorney General alleges arise from Cypress’s prior actions under the Texas Medicaid Fraud Prevention Act.  The Company is currently assessing both the legitimacy of the claims made in this offer letter and the legal steps at its disposal to challenge the claims and the potential liability related to those claims.  The Company is currently reviewing certain data provided to it by the Attorney General and is currently in discussions with the Attorney General regarding their analysis of the data.
	Purchase Commitments
	Purchase obligations include fixed or minimum payments under manufacturing and supply agreements with third-party manufacturers and other providers of goods and services. Our failure to satisfy minimum sales requirements under our co-promotion agreements would generally allows the counterparty to terminate the agreement and/or results in a loss of our exclusivity rights. In part to maintain minimum sales requirements under our co-promotion agreements, the Company has commitments under open purchase orders for inventory of approximately $5.0 million that can be cancelled without penalty.
	Stock Options Issued in Exchange for Services
	Pursuant to an agreement for support services entered into between the Company and ParaPRO on August 27, 2010 which commenced upon the launch of NATROBA on August 3, 2011, we granted to ParaPRO 460,000 options to purchase our common stock. The options have an exercise price of $3.65 which was the closing price of the Company’s stock as of the date of the support services agreement. The options became or will become exercisable in seven installments in the following amounts: (i) 30,000 on August 1, 2012; (ii) 40,000 on August 1, 2013; (iii) 50,000 on August 1, 2014; (iv) 60,000 on August 1, 2015; (v) 70,000 on August 1, 2016; (vi) 90,000 on August 1, 2017; and (vii) 120,000 on August 1, 2018. The options are exercisable for a period of five years from the date each becomes exercisable and are valued at approximately $2,841,000. These options were granted in a private offering under Rule 4(2) of the Securities Act of 1933.  As of September 30, 2013, there was approximately $1,412,000 of total unrecognized compensation cost related to unexercisable stock options, which is expected to be recognized ratably over a weighted-average period of 3.7 years.
	Leases
	The Company leases facilities space and equipment under operating lease arrangements that have terms expiring at various dates through 2016. Certain lease arrangements include renewal options and escalation clauses. In addition, various lease agreements to which the Company is a party require that we comply with certain customary covenants throughout the terms of the leases. If we are unable to comply with these covenants and cannot reach a satisfactory resolution in the event of noncompliance, these agreements could terminate.
	Future minimum lease payments under non-cancelable operating leases do not include the rent payments for the Woodlands, Texas lease that was terminated effective July 31, 2013.   The lease had a remaining term through April 2016, representing a future lease commitment of approximately $579,000. The minimum payments as of September 30, 2013 are as follows (in thousands):
	2013 (July – December)	$	193,000
	2014		470,000
	2015		39,000
	2016		3,000
	2017	─
		$	705,000
	Total rent expense was approximately $182,000 and $567,000 for the three and nine months periods ended September 30, 2013, respectively.  Rent expense was approximately $94,000 and $269,000 for the three and nine month periods ended September 30, 2012, respectively.
	Capital leases on certain pharmaceutical manufacturing equipment assumed in the acquisition of GSL have terms extending to November 2013. There were multiple assets under various individual capital leases as of September 30, 2013.
	Milestone Payments
	The Company is party to certain license agreements and acquisition agreements, certain of which are described in Note 4, Business Combinations and Other Acquisitions. Generally, these license and acquisition agreements require that the Company make milestone payments in cash upon the achievement of certain product development and/or commercialization goals and payments of royalties upon commercial sales. The amounts and timing of future milestone payments may vary depending on when related milestones will be attained, if at all.
	Other Revenue Sharing Agreements
	The Company has entered into certain revenue sharing arrangements that require payments based on a specified percentage of net sales or a specified cost per unit sold. For the three and nine months ended September 30, 2013, the Company recognized approximately $2,024,000 and $5,113,000, respectively, in expense included in cost of goods sold from payments pursuant to co-promotion and other revenue sharing arrangements.  For the three and nine months ended September 30, 2012, the Company recognized $1,058,000 and $2,973,000 of such expenses, respectively.
	Other Commitments
	Somaxon was subject to certain contractual payment obligations pursuant to settlement agreements entered into by it which the Company assumed.  As of September 30, 2013, a $625,000 balance remained unpaid under the terms of a settlement agreement relating to the termination of a co-promotion agreement. Pursuant to the terms of this agreement, six percent of net sales of Silenor are payable to the counterparty until the balance is paid in full. In July 2012 and January 2013, Somaxon settled two patent litigation claims with parties seeking to market generic equivalents of Silenor. Remaining payment obligations owed by Somaxon and assumed by Pernix under these settlement agreements are $1,500,000 and $2,000,000, respectively, payable in equal installments over the next seven and four years, respectively.
	Uninsured Liabilities
	The Company is exposed to various risks of losses related to torts, theft of, damage to, and destruction of assets, errors and omissions, injuries to employees, and natural disasters for which the Company maintains general liability insurance with limits and deductibles that management believes prudent in light of the exposure of the Company to loss and the cost of the insurance.
	The Company is subject to various claims and litigation arising in the ordinary course of business. In the opinion of management, the outcome of such matters will not have a material effect on the consolidated financial position or results of operations of the Company.

18_Subsequent_Events

18. Subsequent Events	9 Months Ended
	Sep. 30, 2013
Subsequent Events [Abstract]	'
Subsequent Events	'
	Co-Promotion Agreements
	On October 28, 2013, the Company entered into an agreement with Cumberland Pharmaceuticals Inc. to promote Omeclamox-Pak. Pursuant to the agreement, Cumberland will promote Omeclamox-Pak to gastroenterologists in the United States, and the Company will continue to promote the product to certain primary care physicians. Cumberland paid an upfront payment of $4.0 million to the Company on October 29, 2013. There are also additional milestones at the first and second anniversary dates of the execution of the agreement totaling $4.0 million in the aggregate. Royalty payments ranging from 15% to 20% based on tiered levels of gross profits will be paid by Cumberland to the Company monthly.

2_Basis_of_Presentation_and_Su

2. Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Interim Financial Statements	'
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.
	In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of these financial statements. Operating results for three and nine-months period ended September 30, 2013 are not necessarily indicative of the results for future periods or the full year.
Principles of Consolidation	'
	The condensed consolidated financial statements include the accounts of Pernix’s wholly-owned subsidiaries: Pernix Therapeutics, LLC, GTA GP, Inc., GTA LP, Inc., Gaine, Inc., Macoven, Pernix Manufacturing (acquired July 1, 2012), Respicopea, Inc. (acquired May 14, 2012), Cypress (acquired December 31, 2012) and Pernix Sleep, Inc. (acquired March 6, 2013). Respicopea, Pernix Manufacturing, Cypress and Pernix Sleep are included only for the periods subsequent to their acquisitions. Transactions between and among the Company and its consolidated subsidiaries are eliminated.
Management's Estimates and Assumptions	'
	The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. The Company reviews all significant estimates affecting the condensed consolidated financial statements on a recurring basis and records the effect of any necessary adjustments prior to their issuance. Significant estimates of the Company include: revenue recognition, sales allowances such as returns on product sales, government program rebates, managed care rebates, customer coupon redemptions, wholesaler/pharmacy discounts, product service fees, rebates and chargebacks, sales commissions, amortization, depreciation, stock-based compensation, the determination of fair values of assets and liabilities in connection with business combinations, and deferred income taxes.
Fair Value of Financial Instruments	'
	A financial instrument is defined as cash equivalent, evidence of an ownership interest in an entity, or a contract that creates a contractual obligation or right to deliver or receive cash or another financial instrument from another party. The Company’s financial instruments consist primarily of cash equivalents (including our Regions Trust Account which invests in short-term securities consisting of sweep accounts, money market accounts and money market mutual funds), an investment in equity securities (TherapeuticsMD) (which was divested on June 14, 2013), contingent consideration and a put right in connection with the acquisition of Cypress.
	Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value as follows:
	Level 1	Quoted prices in active markets for identical assets or liabilities as of the reporting date.
	Level 2	Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities as of the reporting date.
	Level 3	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Revenue Recognition	'
	The Company’s consolidated net revenues represent the Company’s net product sales and collaboration revenues. The Company records all of its revenue from product sales and collaboration or co-promotion agreements when realized or realizable and earned. Revenue is realized or realizable and earned when all of the following criteria are met: (1) existence of persuasive evidence of an arrangement; (2) occurrence of delivery or rendering of services; (3) the seller’s price to the buyer is fixed or determinable; and (4) reasonable assurance of collectability. The Company records revenue from product sales when the customer takes ownership and assumes risk of loss. Royalty revenue is recognized upon shipment from the manufacturer to the purchaser. Co-promotion revenue is recognized in the period in which the product subject to the arrangement is sold. At the time of sale, estimates for a variety of sales deductions, such as returns on product sales, government program rebates, price adjustments and prompt pay discounts are recorded.
	The following table sets forth a summary of Pernix’s consolidated net revenues for the three and nine months ended September 30, 2013 and 2012.
			Three Months Ended						Nine months ended
			September 30,						September 30,
			2013			2012			2013			2012
	Gross product sales		$	32,229,805		$	20,369,936		$	106,237,421		$	57,523,259
	Sales allowances			(15,079,509	)		(5,509,712	)		(50,245,967	)		(19,312,944	)
	Net product sales			17,150,296			14,860,224			55,991,454			38,210,315
	Manufacturing revenue			486,781		2,093,701				2,222,159		2,093,701
	Co-promotion and other revenue			658,053			1,180,233			2,732,791			2,811,501
	Net revenues		$	18,295,130		$	18,134,158		$	60,946,404		$	43,115,517
	The Company’s customers for its products consist of drug wholesalers, 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 nine months ended September 30, 2013 and 2012, or 10% of total accounts receivable as of September 30, 2013 and December 31, 2012.
			Three Months Ended						Nine months ended
			September 30,						September 30,
			2013			2012			2013			2012
	McKesson Corporation			30%			29%			34%			29%
	AmerisourceBergen Drug Corporation			26%			7%			17%			11%
	Cardinal Health, Inc.			22%			41%			27%			36%
	Walgreens Corporation			5%			11%			6%			7%
	Total			83%			88%			84%			83%
			Accounts Receivable
			September 30,			December 31,
			2013			2012
	AmerisourceBergen Drug Corporation			36%			6%
	McKesson Corporation			29%			17%
	Cardinal Health, Inc.			14%			43%
	Walgreens Corporation			3%			11%
	Total			82%			77%
Other Revenue Sharing Arrangements	'
	The Company enters into collaborative arrangements to develop and commercialize drug candidates. Collaborative activities might include research and development, marketing and selling (including promotional activities and physician detailing), manufacturing, and distribution. These collaborations often require royalty or profit share payments, contingent upon the occurrence of certain future events linked to the success of the product. Revenues related to products sold by the Company pursuant to these arrangements are included in product sales, while other sources of revenue such as royalties and profit share receipts are included in collaboration, royalty and other revenue as further discussed below. Operating expenses for costs incurred pursuant to these arrangements are reported in their respective expense line item.
	The Company seeks to enter into co-promotion agreements to enhance the promotional efforts and sales of products. The Company may enter into co-promotion agreements whereby it obtains rights to market other parties’ products in return for certain commissions or percentages of revenue on the sales Pernix generates. Alternatively, Pernix may enter into co-promotion agreements with respect to its products whereby it grants another party certain rights to market or otherwise promote one or more of its products. Typically, the Company will enter into this type of co-promotion arrangement when a particular product is not aligned with its product focus or it lacks sufficient sales force representation in a particular geographic area. Co-promotion revenue is included in net revenues. Expense from co-promotion agreements is included in cost of product sales.
	As previously reported, in December 2010, we entered into a joint venture (JV) with infirst+ (formerly SEEK) for the development of BC 1036. On May 14, 2012, the Company acquired the exclusive rights from SEEK, its former joint venture partner, to commercialize and market products utilizing the joint venture’s intellectual property (IP) in the areas of cough, cold, sinus and allergy in the United States and Canada. Effective August 30, 2013, we re-licensed all of our rights to these assets in the United States and licensed the Dr. Cocoa trademark and logo to infirst+ in exchange for a royalty of 5% of net sales in the United States through 2019 and 2.5% of net sales in the United States and Canada from 2020 through 2029.  Through our subsidiary, Pernix Manufacturing, we are currently working with infirst+ on a supply agreement to supply certain of infirst+’s manufactured product in the United States.  As a result of this transaction, we no longer have any rights to a royalty for products utilizing the IP outside of the United States and Canada.
	In September 2013, the Company amended the terms of our co-promotion agreement with ParaPRO. ParaPRO will assume responsibility for distribution of NATROBA and related activities, and the Company and its subsidiaries will no longer purchase quantities of NATROBA at a discount for sale to customers. The Company will continue to provide promotion services for NATROBA in its assigned territories for co-promotion fees based on prescriptions generated by its sales force. With respect to generic products covered by the agreement, the Company will continue to provide distribution and co-promotion services for fees based on units distributed and prescriptions dispensed in defined territories. The Company’s management expects the Company’s gross product sales for NATROBA to decrease based on the removal of the distribution-related revenue from the terms of the co-promotion arrangement. However, the Company’s management expects that the corresponding decreases in cost of goods and gross-to-net deductions and other distribution costs will substantially offset this decrease in gross product sales.
Cost of Product Sales	'
	Cost of product sales is comprised of (1) costs to manufacture or acquire products sold to customers; (2) royalty, co-promotion and other revenue sharing payments under license and other agreements granting the Company rights to sell related products; (3) direct and indirect distribution costs incurred in the sale of products; and (4) the value of any write-offs of obsolete or damaged inventory that cannot be sold. The Company acquired the rights to sell certain of its commercial products through license and assignment agreements with the original developers or other parties with interests in these products.  These agreements obligate the Company to make payments under varying payment structures based on our net revenue from related products.
	As part of the acquisitions of Cypress and Somaxon, the Company adjusted the predecessor cost basis increasing inventory to fair value as required by ASC 820.  As a result, $8,600,000 and $695,000, respectively, was recorded to adjust inventory to fair value.  For the three and nine months ended September 30, 2013, approximately $412,000 and $5,123,000, respectively, of the increase in the basis of the inventory was included in cost of product sales.
Product Sales	'
	The Company recognizes revenue from its product sales in accordance with its revenue recognition policy discussed above. The Company sells its products primarily to large national wholesalers, which have the right to return the products they purchase, and accordingly the Company estimates the amount of future returns at the time of revenue recognition. The Company recognizes product sales net of estimated allowances for product returns, government program rebates, price adjustments, and prompt pay discounts.
Product Returns	'
	Consistent with industry practice, the Company offers contractual return rights that allow its customers to return short-dated or expiring products within an 18-month period, commencing from six months prior to and up to twelve months subsequent to the product expiration date. The Company’s products have a 15 to 36-month expiration period from the date of manufacture. The Company adjusts its estimate of product returns if it becomes aware of other factors that it believes could significantly impact its expected returns. These factors include its estimate of inventory levels of its products in the distribution channel, the shelf life of the product shipped, review of consumer consumption data as reported by external information management companies, actual and historical return rates for expired lots, the forecast of future sales of the product, competitive issues such as new product entrants and other known changes in sales trends. The Company estimates returns at percentages up to 10% of sales of branded and generic products and, from time to time, higher return percentages on new product launches.  Returns estimates are based upon historical data and other facts and circumstances that may impact future expected returns to derive an average return percentage for our products.  The returns reserve may be further adjusted as sales history and returns experience is accumulated on our portfolio of products or as our portfolio of products changes. The Company reviews and adjusts these reserves quarterly. There is a time lag between the date we determine the estimated allowance and when we receive product returns and issue credits to customers. Changes in facts and circumstances arising during this interval may result in adjustments to our estimated allowance being recorded over several periods, which would impact our operating results in those periods.
Government Program Rebates	'
	The liability for Medicaid, Medicare and other government program rebates is estimated based on historical and current rebate redemption and utilization rates contractually submitted by each state’s program administrator and assumptions regarding future government program utilization for each product sold.
Price Adjustments	'
	The Company’s estimates of price adjustments, which include customer rebates, managed care rebates, service fees, chargebacks, shelf stock adjustments, coupon redemptions and other fees and discounts, are based on our estimated mix of sales to various third-party payors who are entitled, either contractually or statutorily, to discounts from the listed prices of our products and contracted service fees with our wholesalers. In the event that the sales mix to third-party payors or the contract fees paid to the wholesalers are different from the Company’s estimates, the Company may be required to pay higher or lower total price adjustments and/or incur chargebacks that differ from its original estimates and such difference may be significant.
	The Company’s estimates of discounts are applied pursuant to the contracts negotiated with certain customers and are primarily based on sales volumes. The Company, from time to time, offers certain promotional product-related incentives to its customers. These programs include sample cards to retail consumers, certain product incentives to pharmacy customers and other sales stocking allowances. For example, the Company has initiated coupon programs for certain of its promoted products whereby the Company offers a point-of-sale subsidy to retail consumers. The Company estimates its liabilities for these coupon programs based on redemption information provided by a third party claims processing organization. The Company accounts for the coupon redemption costs of these special promotional programs as price adjustments, resulting in a reduction in gross revenue. The administrative fees related to these programs are accounted for in selling, general and administrative expenses.
	Any price adjustments that are not contractual or are non-recurring but that are offered at the time of sale or when a specific triggering event occurs, such as sales stocking allowances or price protection adjustments, are recorded as a reduction in revenue when the sales order is recorded or when the triggering event occurs. These allowances may be offered at varying times throughout the year or may be associated with specific events such as a new product launch, the reintroduction of a product or product price changes.
Prompt Payment Discount	'
	The Company typically requires its customers to remit payments within the first 30 days for branded products and within 60 to 120 days for generics, depending on the customer and the products purchased. The Company offers wholesale distributors a prompt payment discount if they make payments within these deadlines. This discount is generally 2-3%, but may be higher in some instances due to product launches and/or industry expectations. Because the Company’s wholesale customers typically take the prompt pay discount, we accrue 100% of prompt pay discounts. These discounts are based on the gross amount of each invoice at the time of our original sale to them. Earned discounts are applied at the time of payment. This allowance is recorded as a reduction of accounts receivable.
Segment Information	'
	The Company currently markets two major product lines: a branded pharmaceuticals product line and a generic pharmaceuticals product line. These product lines qualify for reporting as a single segment in accordance with GAAP because they are similar in the nature of the products and services, production processes, types of customers, distribution methods and regulatory environment. The Company has a manufacturing subsidiary but the majority of its revenue is currently generated through intercompany sales and is eliminated in consolidation. Accordingly, it is deemed immaterial for segment reporting purposes. The Company initiated an OTC division in 2012 but this division has not marketed any products to date and, therefore, has no revenue and is currently deemed immaterial for segment reporting purposes.
Earnings per Share	'
	Earnings per common share is presented under two formats: basic earnings per common share and diluted earnings per common share. Basic earnings per common share is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period, plus the potentially dilutive impact of restricted stock and common stock equivalents (i.e. stock options). Dilutive common share equivalents consist of the incremental common shares issuable upon exercise of stock options and vesting of restricted stock.
	The following table sets forth the computation of basic and diluted net income per share:
			Three Months Ended						Nine months ended
			September 30,						September 30,
			2013			2012			2013			2012
	Numerator:
	Net loss		$	(6,048,954	)	$	(270,342	)	$	(20,064,702	)	$	-10,911
	Denominator:
	Weighted-average common shares, basic			37,120,890			29,069,119			36,204,340			27,765,275
	Dilutive effect of stock options		─			─			─				─
	Weighted-average common shares, diluted			37,120,890			29,069,119			36,204,340			27,765,275
	Net loss per share, basic and diluted		$	(0.16	)	$	(0.01	)	$	(0.55	)	$	─
	At September 30, 2013, the Company had 662,788 shares of unvested restricted stock and 1,647,333 total outstanding options of which 837,994 are vested and exercisable.  Options and restricted stock not included above are anti-dilutive.  See Note 15, Employee Compensation and Benefits, for information regarding the Company’s outstanding options.
Investments in Marketable Securities and Other Comprehensive Income	'
	The Company held investments in marketable equity securities as available-for-sale and the change in the market value gives rise to other comprehensive income.  The components of other comprehensive income are recorded in the condensed consolidated statements of  comprehensive income, net of the related income tax effect.  As of September 30, 2013, the Company has liquidated its investments in marketable equity securities as described below.
	On October 5, 2011, the Company acquired 2.6 million shares of TherapeuticsMD for a purchase price of $1.0 million, or $0.38 per share, representing approximately 3.2% of TherapeuticsMD’s outstanding common stock at that time.  The Company’s purchase was contingent upon TherapeuticsMD’s acquisition of VitaMedMD, which occurred on October 4, 2011. In connection with the Company’s purchase of shares of TherapeuticsMD, the Company also entered into a software license agreement with VitaMedMD pursuant to which VitaMedMD granted the Company an exclusive license to use certain of its physician, patient and product data gathering software in the field of pediatric medicine for a period of five years for a monthly fee of $21,700.  As of September 30, 2013, the Company has not activated this software license agreement and has not paid monthly fees pursuant thereto.  Cooper Collins, the Company’s then Chief Executive Officer, was appointed to the board of Therapeutics MD on February 29, 2012.
	On June 14, 2013, the Company sold all its shares of TherapeuticsMD for approximately $4,605,000 in cash proceeds, recognizing a gain on the investment of approximately $3,605,000.  Approximately $2,300,000 of the proceeds were utilized to pay down its term loan (See Note 12, Debt).
Reclassifications	'
	Certain reclassifications have been made to prior period amounts in our consolidated statements of comprehensive (loss) income to conform to the current period presentation.  These reclassifications related to the classification of the cost of samples as a selling expense instead of being included in cost of product sales and the classification of coupon processing and program administrative fees as selling expense instead of being included in net sales.  These reclassifications had no effect on net loss as previously reported.
Recent Accounting Pronouncements	'
	In July 2013, the Financial Accounting Standards Board issued a clarification regarding the presentation of an unrecognized tax benefit related to a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. Under this new standard, the liability related to an unrecognized tax benefit, or a portion thereof, should be presented in the financial statements as a reduction to a deferred tax asset if available under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position. Otherwise, the unrecognized tax benefit should be presented in the financial statements as a separate liability. The assessment is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date. The provisions of the new standard are effective on a prospective basis beginning in 2014 for annual and interim reporting periods. Early adoption is permitted. While we are still determining the impact of this standard on the presentation of both our deferred tax assets and income taxes payable, implementation of the standard will have no impact on our consolidated statements of operations.
	There have been no other recent accounting pronouncements that have not yet been adopted by us that are expected to have a material impact on our condensed consolidated financial statements from the accounting pronouncements previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2012.

2_Basis_of_Presentation_and_Su1

2. Basis of Presentation and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Summary of Pernix's consolidated net revenues	'
		Three Months Ended						Nine months ended
		September 30,						September 30,
		2013			2012			2013			2012
	Gross product sales	$	32,229,805		$	20,369,936		$	106,237,421		$	57,523,259
	Sales allowances		(15,079,509	)		(5,509,712	)		(50,245,967	)		(19,312,944	)
	Net product sales		17,150,296			14,860,224			55,991,454			38,210,315
	Manufacturing revenue		486,781		2,093,701				2,222,159		2,093,701
	Co-promotion and other revenue		658,053			1,180,233			2,732,791			2,811,501
	Net revenues	$	18,295,130		$	18,134,158		$	60,946,404		$	43,115,517
Major Custome''s revenue	'
		Three Months Ended						Nine months ended
		September 30,						September 30,
		2013			2012			2013			2012
	McKesson Corporation		30%			29%			34%			29%
	AmerisourceBergen Drug Corporation		26%			7%			17%			11%
	Cardinal Health, Inc.		22%			41%			27%			36%
	Walgreens Corporation		5%			11%			6%			7%
	Total		83%			88%			84%			83%
		Accounts Receivable
		September 30,			December 31,
		2013			2012
	AmerisourceBergen Drug Corporation		36%			6%
	McKesson Corporation		29%			17%
	Cardinal Health, Inc.		14%			43%
	Walgreens Corporation		3%			11%
	Total		82%			77%
Earnings per Share	'
		Three Months Ended						Nine months ended
		September 30,						September 30,
		2013			2012			2013			2012
	Numerator:
	Net loss	$	(6,048,954	)	$	(270,342	)	$	(20,064,702	)	$	-10,911
	Denominator:
	Weighted-average common shares, basic		37,120,890			29,069,119			36,204,340			27,765,275
	Dilutive effect of stock options	─			─			─				─
	Weighted-average common shares, diluted		37,120,890			29,069,119			36,204,340			27,765,275
	Net loss per share, basic and diluted	$	(0.16	)	$	(0.01	)	$	(0.55	)	$	─

3_Fair_Value_Measurement_Table

3. Fair Value Measurement (Tables)	9 Months Ended
	Sep. 30, 2013
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	'
		30-Sep-13
		Level 1			Level 2		Level 3		Total
	Liabilities
	Contingent consideration(1)	$	─		$	─	$	10,662	$	10,662
	Put right(2)		─			─		9,482		9,482
	Total Liabilities	$	─		$	─	$	20,144	$	20,144
		31-Dec-12
		Level 1			Level 2		Level 3		Total
	Assets
	Investments in TherapeuticsMD	$	─		$	─	$	5,711	$	5,711
	Total Assets	$	─		$	─	$	5,711	$	5,711
	Liabilities
	Contingent consideration(1)	$	─		$	─	$	10,962	$	10,962
	Put right(2)		─			─		3,365		3,365
	Total Liabilities	$	─		$	─	$	14,327	$	14,327
Fair Value Measurements Using Significant Unobservable Inputs	'
	Assets:	Investment in Therapeutics MD
	Beginning balance at January 1, 2013	$	5,710,526
	Net realized and unrealized gains (losses)
	Included in earnings (in other income)		3,605,263
	Included in accumulated other comprehensive income (pre-tax) (1)		(4,710,526	)
	Sale of Investment in TherapeuticsMD		(4,605,263	)
	Ending balance at September 30, 2013	$	─
	Liabilities:	Contingent
		Liability
		Consideration
	Beginning balance at January 1, 2013	$	14,327,680
	Interest accretion of Cypress contingent consideration		505,000
	Change in fair value of Cypress contingent consideration		-805,000	)
	Change in fair value of Cypress put right		6,116,489
	Ending balance at September 30, 2013	$	20,144,169

4_Business_Combinations_and_Ot1

4. Business Combinations and Other Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2013
Pro forma financial information	'
		Three Months ended September 30,							Nine Months ended September 30,
			(unaudited, in thousands)						(unaudited, in thousands)
			2013			2012			2013			2012
			(Pro forma)			(Pro forma)			(Pro forma)			(Pro forma)
	Revenue		$	18,295		$	30,436		$	62,675		$	85,393
	Net loss		$	(6,049	)	$	(5,972	)	$	(22,282	)	$	(13,490	)
	Pro forma net income (loss) per common share
	Basic		$	(0.16	)	$	(0.16	)	$	(0.62	)	$	(0.38	)
	Diluted		$	(0.16	)	$	(0.16	)	$	(0.62	)	$	(0.38	)
Somaxon [Member]	'
Schedule of Purchase Price Allocation	'
			March 6,			Measurement Period Adjustment (i)			March 6,
			2013						2013
			(as initially reported)						(As adjusted)
	Consideration (ii) :
	Shares of Pernix common stock issued to Somaxon’ stockholders			3,665						3,665
	Pernix common stock price		$	6.26		$			$	6.26
	Fair value of common stock issued		$	22,945		$			$	22,945
	Fair value of warrants (iii)			895						895
	Total consideration		$	23,840		$			$	23,840
	Estimated Fair Value of Liabilities Assumed:
	Current liabilities		$	8,764		$	1,607		$	10,371
	Long-term liabilities			3,403						3,403
	Long-term deferred tax liability (iv)			11,342			111			11,453
	Amount attributable to liabilities assumed		$	23,509		$	1,718		$	25,227
	Total purchase price plus liabilities assumed		$	47,349		$	1,718		$	49,067
	Estimated Fair Value of Assets Acquired:
	Current assets, excluding inventory		$	4,782		$	─		$	4,782
	Inventory (v)			1,090		─				1,090
	Intangible assets (vi)			30,729			300			31,029
	Amount attributable to assets acquired		$	36,601		$	300		$	36,901
	Goodwill (vii)		$	10,748		$	1,418		$	12,166

5_Disposition_Of_Certain_Cypre1

5. Disposition Of Certain Cypress Assets (Tables)	9 Months Ended
	Sep. 30, 2013
Disposition Of Certain Cypress Assets	'
Pro forma financial information	'
		Three Months ended							Nine Months ended
		September 30,							September 30,
		(unaudited, in thousands)							(unaudited, in thousands)
			2013			2012			2013			2012
			(Pro forma)			(Pro forma)			(Pro forma)			(Pro forma)
	Revenue		$	17,400		$	29,541		$	56,260		$	79,785
	Net loss		$	(5,886	)	$	(6,011	)	$	(21,036	)	$	(15,282	)
	Pro forma net income (loss) per common share
	Basic		$	(0.16	)	$	(0.17	)	$	(0.58	)	$	-0.43
	Diluted		$	(0.16	)	$	(0.17	)	$	(0.58	)	$	-0.43

6_Accounts_Receivables_Tables

6. Accounts Receivables (Tables)	9 Months Ended
	Sep. 30, 2013
Receivables [Abstract]	'
Accounts receivable	'
		September 30,			December 31,
		2013			2012
	Trade accounts receivable	$	22,614,182		$	35,723,488
	Less allowance for prompt pay discounts		(473,625	)		(727,714	)
	Total trade receivables		22,140,557			34,995,774
	Receivables from third parties – revenue sharing arrangements		1,683,078			1,690,544
	Less allowance for doubtful accounts		(486,931	)		(39,231	)
	Total account receivables		23,336,704			36,647,087

7_Inventories_Tables

7. Inventories (Tables)	9 Months Ended
	Sep. 30, 2013
Inventory Disclosure [Abstract]	'
Schedule of Inventory	'
		September 30,			December 31,
		2013			2012
	Raw materials	$	2,034,008		$	1,550,736
	Packaging materials		940,282			866,674
	Samples		836,021			792,702
	Finished goods		14,208,577			19,860,995
			18,018,888			23,071,107
	Reserve for obsolescence		(1,501,556	)		(1,056,702	)
	Inventory, net	$	16,517,332		$	22,014,405

8_Intangible_Assets_and_Goodwi

8. Intangible Assets and Goodwill (Tables)	9 Months Ended
	Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
Intangible assets	'
				September 30,				December 31,
		Life		2013				2012
	Patents	12 - 15 years		$	1,442,000			$	1,442,000
	Brand	8 years			3,887,000				3,887,000
	Product licenses	1 – 13 years			16,183,794				15,135,050
	Customer relationships	6 years			1,848,000				1,848,000
	Non-compete and supplier contracts	2 - 7 years			5,194,571				5,194,571
	Trademark rights	Indefinite			638,563				638,563
	In-process research and development acquired(1)				43,733,000				45,200,000
	Developed technology	9-12 years			40,000,000				37,000,000
					112,926,928				110,345,184
	Accumulated amortization				(12,614,557	)			-6,290,753
	Total			$	100,312,371			$	104,054,431
Intangible Assets Estimated Amortization Expenses	'
		Amount
	2013 (September – December)	$	1,890,713
	2014		7,682,420
	2015		7,682,420
	2016		7,682,420
	2017		6,166,374
	Thereafter		24,836,462
	Total	$	55,940,809
Changes in the carrying amount of goodwill	'
		September 30,				December 31,
		2013				2012
	Beginning Balance	$	37,160,911			$	1,406,591
	Goodwill acquired – Somaxon		10,748,243			─
	Goodwill acquired – Cypress	─					34,838,745
	Goodwill acquired – GSL	─					915,575
	Adjustments (1)		5,916,122			─
	Total	$	53,825,276			$	37,160,911

9_Accrued_Allowances_Tables

9. Accrued Allowances (Tables)	9 Months Ended
	Sep. 30, 2013
Accrued Liabilities [Abstract]	'
Accrued allowances	'
		September 30,		December 31,
		2013		2012
	Accrued returns allowance	$	10,340,500	$	12,057,464
	Accrued price adjustments		5,406,064		10,960,042
	Accrued government program rebates		13,449,753		7,037,045
	Total	$	29,196,317	$	30,054,551

10_Other_Liabilities_Tables

10. Other Liabilities (Tables)	9 Months Ended
	Sep. 30, 2013
Other Liabilities [Abstract]	'
Other Liabilities	'
		September 30,		December 31,
		2013		2012
	Stock repurchase contract with employee	$	─	$	600,000
	Product license contracts		─		630,000
	Settlement obligations (see Note 17)		3,685,000	─
	Other		334,454		338,495
	Deferred revenue		384,745	─
	Total contracts payable and other obligations	$	4,409,199	$	1,568,495
	Other liabilities – current	$	1,300,793	$	1,568,495
	Other liabilities – long term	$	3,103,406	$	─

11_Debt_Tables

11. Debt (Tables)	9 Months Ended
	Sep. 30, 2013
Debt Disclosure [Abstract]	'
Debt consists	'
		September 30,		December 31,
		2013		2012
	Amounts outstanding under the Credit Facility – MidCap Funding V, LLC	$	13,741,968	$	42,000,000
	Stancorp Mortgage		1,483,145		1,580,748
	Capital leases (see Note 17)		3,665		55,328
	Total debt	$	15,228,778	$	43,636,076
	Debt – current	$	13,883,224	$	2,286,513
	Debt – long term	$	1,345,554	$	41,349,563

14_Employee_Compensation_and_B

14. Employee Compensation and Benefits (Tables)	9 Months Ended
	Sep. 30, 2013
Employee Benefits and Share-based Compensation [Abstract]	'
Weighted average assumptions used to value stock options	'
			Nine Months
			Ended
			September 30,
			2013
	Weighted average expected stock price volatility			66.8	%
	Estimated dividend yield			0	%
	Risk-free interest rate			1	%
	Expected life of option (in years)			6
	Weighted average fair value per share		$	4.64
Stock Option Activity	'
	Option Shares		Shares			Average
						Exercise
						Price
	Outstanding at December 31, 2012(1)			1,711,167		$	4.87
	Granted			295,000			4.07
	Exercised			(40,000	)		2.79
	Cancelled			(318,834	)		6.09
	Expired		─			─
	Outstanding at September 30, 2013			1,647,333		$	4.54
	Vested and exercisable, end of period			837,994		$	4.61
Range of exercise price	'
				Options Outstanding				Options Exercisable
	Range of Exercise Price			Shares		Remaining Contractual Life		Shares			Price
	($)					(years)					($)
	1.94 - 2.20			5,000		1.4		5,000			$	2.2
	3.31 – 4.20	-1		1,278,000		7.5		638,000				3.71
	6.1			137,666		7.9		89,994				6.1
	7.75 – 8.62			136,667		8.5		58,334				8.13
	9.02 – 10.35			90,000		8.3		46,666				9.82
				1,647,333		7.5		837,994			$	3.75
Restricted stock	'
						Weighted Average
						Grant Date
	Restricted Stock Shares		Shares			Fair Value
	Nonvested at December 31, 2012			728,333		$	7.47
	Granted			357,654			3.42
	Vested			(138,332	)		7.85
	Forfeited			(284,867	)		6.46
	Nonvested at September 30, 2013			662,788		$	5.64
Stock-Based Compensation Expense	'
			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2013			2012			2013				2012
	Employees		$	401,000		$	546,000		$	1,216,000			$	1,412,000
	Non-employees/Directors			91,000			132,000			300,000				489,000
	Total		$	492,000		$	678,000		$	1,516,000			$	1,901,000

15_Income_Taxes_Tables

15. Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Effective on income tax rate from continuing operations	'
		Nine Months Ended
		September 30,
		2013			2012
	Expected taxes at statutory rates		(35.0	)%		(35.0	)%
	State taxes, net of federal tax benefit		(1.7	)%		(33.2	)%
	Nondeductible expenses		1	%		7.6	%
	Put right expense		7.5	%	─		%
	Other	(0.5		)%		0.7	%
			(28.7	)%		(59.9	)%

16_Commitments_and_Contingenci

16. Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Future minimum lease payments under non-cancelable operating leases	'
	2013 (July – December)	$	193,000
	2014		470,000
	2015		39,000
	2016		3,000
	2017	─
		$	705,000

2_Basis_of_Presentation_and_Su2

2. Basis of Presentation and Summary of Significant Accounting Policies (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Components of company's net revenue	'	'	'	'
Gross product sales	$32,229,805	$20,369,936	$106,237,421	$57,523,259
Sales allowances	-15,079,509	-5,509,712	-50,245,967	-19,312,944
Net product sales	17,150,296	14,860,224	55,991,454	38,210,315
Manufacturing revenue	486,781	2,093,701	2,222,159	2,093,701
Co-promotion and royalty revenue	658,053	1,180,233	2,732,791	2,811,501
Net revenues	$18,295,130	$18,134,158	$60,946,404	$43,115,517

2_Basis_of_Presentation_and_Su3

2. Basis of Presentation and Summary of Significant Accounting Policies (Details 1)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Company's customers that individually comprised greater than 10% of total gross product sales	'	'	'	'	'
Percentage of gross product sales	83.00%	88.00%	84.00%	83.00%	'
Percentage of accounts receivable	82.00%	'	82.00%	'	77.00%
Cardinal Health Inc	'	'	'	'	'
Company's customers that individually comprised greater than 10% of total gross product sales	'	'	'	'	'
Percentage of gross product sales	22.00%	41.00%	27.00%	36.00%	'
Percentage of accounts receivable	14.00%	'	14.00%	'	43.00%
McKesson Corporation	'	'	'	'	'
Company's customers that individually comprised greater than 10% of total gross product sales	'	'	'	'	'
Percentage of gross product sales	30.00%	29.00%	34.00%	29.00%	'
Percentage of accounts receivable	29.00%	'	29.00%	'	17.00%
Amerisource Bergen Drug Corporation	'	'	'	'	'
Company's customers that individually comprised greater than 10% of total gross product sales	'	'	'	'	'
Percentage of gross product sales	26.00%	7.00%	17.00%	11.00%	'
Percentage of accounts receivable	36.00%	'	36.00%	'	6.00%
Walgreens Corporation	'	'	'	'	'
Company's customers that individually comprised greater than 10% of total gross product sales	'	'	'	'	'
Percentage of gross product sales	5.00%	11.00%	6.00%	7.00%	'
Percentage of accounts receivable	3.00%	'	3.00%	'	11.00%

2_Basis_of_Presentation_and_Su4

2. Basis of Presentation and Summary of Significant Accounting Policies (Details 2) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Numerator:	'	'	'	'
Net income (loss)	($6,048,954)	($270,342)	($20,064,702)	($10,911)
Denominator:	'	'	'	'
Weighted-average common shares, basic	37,120,890	29,069,119	36,204,340	27,765,275
Dilutive effect of stock options	'	'	'	'
Weighted-average common shares, diluted	37,120,890	29,069,119	36,204,340	27,765,275
Net income (loss) per share, basic and diluted	($0.16)	($0.01)	($0.55)	'

2_Basis_of_Presentation_and_Su5

2. Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2012
Amortization of the increase in the basis of the inventory	$412,000	$5,123,000	'
Proceeds from sale of investment	'	4,605,000	'
Gain on sale of investment	'	$3,605,000	'
Restricted Stock [Member]	'	'	'
Number of anti dilutive options, Outstanding	'	1,647,333	'
Employee Stock Option [Member]	'	'	'
Number of anti dilutive options, Outstanding	'	837,994	'

3_Fair_Value_Measurement_Detai

3. Fair Value Measurement (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Assets	'	'
Investments in TherapeuticsMD	'	$5,711
Total Assets	'	5,711
Liabilities	'	'
Contingent consideration(1)	10,662	10,962
Put right(2)	9,482	3,365
Total Liabilities	20,144	14,327
Level 1 Member	'	'
Assets	'	'
Investments in TherapeuticsMD	'	'
Total Assets	'	'
Liabilities	'	'
Contingent consideration(1)	'	'
Put right(2)	'	'
Total Liabilities	'	'
Level 2 Member	'	'
Assets	'	'
Investments in TherapeuticsMD	'	'
Total Assets	'	'
Liabilities	'	'
Contingent consideration(1)	'	'
Put right(2)	'	'
Total Liabilities	'	'
Level 3 Member	'	'
Assets	'	'
Investments in TherapeuticsMD	'	5,711
Total Assets	'	5,711
Liabilities	'	'
Contingent consideration(1)	10,662	10,962
Put right(2)	9,482	3,365
Total Liabilities	$20,144	$14,327

3_Fair_Value_Measurement_Detai1

3. Fair Value Measurement (Details 1) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Assets:	'	'
Beginning balance at January 1, 2013	$5,710,526	'
Net realized and unrealized gains (losses)	'	'
Sale of Investment in TherapeuticsMD	4,605,263	'
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Member	'	'
Assets:	'	'
Beginning balance at January 1, 2013	5,710,526	'
Net realized and unrealized gains (losses)	'	'
Included in earnings (in other income)	3,605,263	'
Included in accumulated other comprehensive income (pre-tax)	-4,710,526	'
Sale of Investment in TherapeuticsMD	-4,605,263	'
Ending balance at September 30, 2013	0	'
Liabilities:	'	'
Beginning balance at January 1, 2013	14,327,680	'
Interest accretion of Cypress contingent consideration	505,000	'
Change in fair value of Cypress contingent consideration	-805,000	'
Change in fair value of Cypress put right	6,116,489	'
Ending balance at September 30, 2013	$20,144,169	'

4_Business_Combinations_and_Ot2

4. Business Combinations and Other Acquisitions (Details) (USD $)	Mar. 06, 2013
In Thousands, except Share data, unless otherwise specified
As Initially Reported [Member]	'
Consideration	'
Shares of Pernix common stock issued to Somaxon' stockholders	3,665
Pernix common stock price	$6.26
Fair value of common stock issued	$22,945
Fair value of warrants	895
Total consideration	23,840
Estimated Fair Value of Liabilities Assumed:	'
Current liabilities	8,764
Long-term liabilities	3,403
Long-term deferred tax liability	11,342
Amount attributable to liabilities assumed	23,509
Total purchase price plus liabilities assumed	47,349
Estimated Fair Value of Assets Acquired:	'
Current assets, excluding inventory	4,782
Inventory	1,090
Intangible assets	30,729
Amount attributable to assets acquired	36,601
Goodwill	10,748
Period Adjustments [Member]	'
Consideration	'
Shares of Pernix common stock issued to Somaxon' stockholders	'
Pernix common stock price	'
Fair value of common stock issued	'
Fair value of warrants	'
Total consideration	'
Estimated Fair Value of Liabilities Assumed:	'
Current liabilities	1,607
Long-term liabilities	'
Long-term deferred tax liability	111
Amount attributable to liabilities assumed	1,718
Total purchase price plus liabilities assumed	1,718
Estimated Fair Value of Assets Acquired:	'
Current assets, excluding inventory	'
Inventory	'
Intangible assets	300
Amount attributable to assets acquired	300
Goodwill	1,418
As Adjusted [Member]	'
Consideration	'
Shares of Pernix common stock issued to Somaxon' stockholders	3,665
Pernix common stock price	$6.26
Fair value of common stock issued	22,945
Fair value of warrants	895
Total consideration	23,840
Estimated Fair Value of Liabilities Assumed:	'
Current liabilities	10,371
Long-term liabilities	3,403
Long-term deferred tax liability	11,453
Amount attributable to liabilities assumed	25,227
Total purchase price plus liabilities assumed	49,067
Estimated Fair Value of Assets Acquired:	'
Current assets, excluding inventory	4,782
Inventory	1,090
Intangible assets	31,029
Amount attributable to assets acquired	36,901
Goodwill	$12,166

4_Business_Combinations_and_Ot3

4. Business Combinations and Other Acquisitions (Details 1) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Business Combinations [Abstract]	'	'	'	'
Revenue	$18,295	$30,436	$62,675	$85,393
Net income(loss)	($6,049)	($5,972)	($22,282)	($13,490)
Pro forma net income (loss) per common share	'	'	'	'
Basic	($0.16)	($0.16)	($0.62)	($0.38)
Diluted	($0.16)	($0.16)	($0.62)	($0.38)

4_Business_Combinations_and_Ot4

4. Business Combinations and Other Acquisitions (Details Narrative) (Somaxon [Member], USD $)	3 Months Ended	9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2013
Somaxon [Member]	'	'
Revenue for Somaxon, subsequent to the closing	$1.60	$5.10
Non-recurring transaction costs	'	$3.20

5_Disposition_Of_Certain_Cypre2

5. Disposition Of Certain Cypress Assets (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Disposition Of Certain Cypress Assets Details	'	'	'	'
Revenue	$17,400	$29,541	$56,260	$79,785
Net Loss	($5,886)	($6,011)	($21,036)	($15,282)
Pro forma net income (loss) per common share	'	'	'	'
Basic	($0.16)	($0.17)	($0.58)	($0.43)
Diluted	($0.16)	($0.17)	($0.58)	($0.43)

6_Derivative_Instruments_Detai

6. Derivative Instruments (Details Narrative) (Put Option [Member], Short [Member], USD $)	3 Months Ended	9 Months Ended
In Millions, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2013
Put Option [Member] | Short [Member]	'	'
Common stock held by Cypres's former shareholders	3,565,692	3,565,692
Fair value of the put right liability increased	$6.10	$2.10
Aggregate fair value of derivative instrument	$9.50	$9.50

7_Accounts_Receivable_Details

7. Accounts Receivable (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Accounts receivable consist of the following	'	'
Trade accounts receivable	$22,614,182	$35,723,488
Less allowance for prompt pay discounts	-473,625	-727,714
Total trade receivables	22,140,557	34,956,543
Receivables from third parties - collaboration and royalty arrangements	1,683,078	1,690,544
Less allowance for doubtful accounts	-486,931	-39,231
Total account receivables	$23,336,704	$36,647,087

8_Inventories_Details

8. Inventories (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Inventory Disclosure [Abstract]	'	'
Raw materials	$2,034,008	$1,550,736
Packaging materials	940,282	866,674
Samples	836,021	792,702
Finished goods	14,208,577	19,860,995
Inventory gross	18,018,888	23,071,107
Reserve for obsolescence	-1,501,556	-1,056,702
Inventory, net	$16,517,332	$22,014,405

8_Inventories_Details_Narrativ

8. Inventories (Details Narrative) (Due to acquisition of Cypress and Somaxon, USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Due to acquisition of Cypress and Somaxon	'	'
Increase in raw materials	$260,000	$0
Increase in finished goods	$3,690,000	$8,600,000

9_Intangible_Assets_and_Goodwi1

9. Intangible Assets and Goodwill (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Intangible assets consist of the following	'	'
Intangible assets, gross	$112,926,928	$110,345,184
Accumulated amortization	-12,614,557	-6,290,753
Intangible assets, net	100,312,371	104,054,431
Patents Member	'	'
Intangible assets consist of the following	'	'
Life	'12 - 15 years	'
Intangible assets, gross	1,442,000	1,442,000
Brand Member	'	'
Intangible assets consist of the following	'	'
Life	'8 years	'
Intangible assets, gross	3,887,000	3,887,000
Product Licenses Member	'	'
Intangible assets consist of the following	'	'
Life	'1 - 13 years	'
Intangible assets, gross	16,183,794	15,135,050
Customer Relationships Member	'	'
Intangible assets consist of the following	'	'
Life	'6 years	'
Intangible assets, gross	1,848,000	1,848,000
Noncompete And Supplier Contracts Member	'	'
Intangible assets consist of the following	'	'
Life	'2 - 7 years	'
Intangible assets, gross	5,194,571	5,194,571
Trademark rights Member	'	'
Intangible assets consist of the following	'	'
Life	'Indefinite	'
Intangible assets, gross	638,563	638,563
In Process Research And Development Member	'	'
Intangible assets consist of the following	'	'
Intangible assets, gross	43,733,000	45,200,000
Developed Technology Member	'	'
Intangible assets consist of the following	'	'
Life	'9-12 years	'
Intangible assets, gross	$40,000,000	$37,000,000

9_Intangible_Assets_and_Goodwi2

9. Intangible Assets and Goodwill (Details 1) (USD $)	Sep. 30, 2013
Estimated amortization expense related to intangible assets	'
2013 (September - December)	$1,890,713
2014	7,682,420
2015	7,682,420
2016	7,682,420
2017	6,166,374
Thereafter	24,836,462
Total	$55,940,809

9_Intangible_Assets_and_Goodwi3

9. Intangible Assets and Goodwill (Details 2) (USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Goodwill and Intangible Assets Disclosure [Abstract]	'	'
Beginning Balance	$37,160,911	$1,406,591
Goodwill acquired - Somaxon	10,748,243	'
Goodwill acquired - Cypress	'	34,838,745
Goodwill acquired - GSL	'	915,575
Adjustments	5,916,122	'
Total	$53,825,276	$37,160,911

9_Intangible_Assets_and_Goodwi4

9. Intangible Assets and Goodwill (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Goodwill and Intangible Assets Disclosure [Abstract]	'	'	'	'
Amortization expense	$2,491,000	$775,000	$6,979,000	$2,158,000

10_Accrued_Allowances_Details

10. Accrued Allowances (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Accrued Allowances Details	'	'
Accrued returns allowance	$10,340,500	$12,057,464
Accrued price adjustments	5,406,064	10,960,042
Accrued government program rebates	13,449,753	7,037,045
Accrued allowances	$29,196,317	$30,054,551

11_Other_Liabilities_Details

11. Other Liabilities (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Other Liabilities [Abstract]	'	'
Stock repurchase contract with employee	'	$600,000
Product license contracts	'	630,000
Settlement obligations	3,685,000	'
Other contracts	334,454	338,495
Deferred revenue	384,745	'
Total contracts payable and other obligations	4,409,199	1,568,495
Other liabilities - current	1,300,793	1,568,495
Other liabilities - long term	$3,103,406	'

12_Debt_Details

12. Debt (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Total debt	$15,228,778	$43,636,076
Debt - current	13,883,224	2,286,513
Debt - long term	1,345,554	41,349,563
Amounts outstanding under the Credit Facility & MidCap Funding V, LLC [Member]	'	'
Total debt	13,741,968	42,000,000
Stancorp Mortgage [Member]	'	'
Total debt	1,483,145	1,580,748
Capital leases [Member]	'	'
Total debt	$3,665	$55,328

12_Debt_Details_Narrative

12. Debt (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Debt Disclosure [Abstract]	'	'
MidCap Funding term loan interest rate	'The loans under this facility bear interest at a rate equal to the sum of the LIBOR rate plus an applicable margin of 7.50% per annum. Pursuant to the Restated Credit Agreement, the Company paid certain customary fees to the administrative agent and lenders.	'
Outstanding mortgage balance	$1,483,000	$1,581,000

15_Employee_Compensation_and_B

15. Employee Compensation and Benefits (Details) (USD $)	9 Months Ended
	Sep. 30, 2013
Employee Benefits and Share-based Compensation [Abstract]	'
Weighted average expected stock price volatility	66.80%
Estimated dividend yield	0.00%
Risk-free interest rate	1.00%
Expected life of option (in years)	'6 years
Weighted average fair value per share	$4.64

15_Employee_Compensation_and_B1

15. Employee Compensation and Benefits (Details 1) (USD $)	9 Months Ended
	Sep. 30, 2013
Shares	'
Outstanding at December 31, 2012(1)	1,711,167
Granted	295,000
Exercised	-40,000
Cancelled	-318,834
Expired	'
Outstanding at September 30, 2013	1,647,333
Vested and exercisable, end of period	837,994
Average Exercise Price	'
Granted	$4.07
Exercised	$2.79
Cancelled	$6.09
Expired	'
Outstanding at September 30, 2013	$4.54
Vested and exercisable, end of period	$4.61

15_Employee_Compensation_and_B2

15. Employee Compensation and Benefits (Details 2) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Options Outstanding Shares	1,647,333	1,711,167
Options Outstanding Shares Remaining Contractual Life (Years)	'7 years 6 months	'
Options Exercisable Shares	837,994	'
Options Exercisable Price	$3.75	'
Range Of Exercise Price From 1.94 to 2.20 Member	'	'
Options Outstanding Shares	5,000	'
Options Outstanding Shares Remaining Contractual Life (Years)	'1 year 4 months 24 days	'
Options Exercisable Shares	5,000	'
Options Exercisable Price	$2.20	'
Range of Exercise Price from 3.31 to 4.20 Member	'	'
Options Outstanding Shares	1,278,000	'
Options Outstanding Shares Remaining Contractual Life (Years)	'7 years 6 months	'
Options Exercisable Shares	638,000	'
Options Exercisable Price	$3.71	'
Range of Exercise Price from 6.10 Member	'	'
Options Outstanding Shares	137,666	'
Options Outstanding Shares Remaining Contractual Life (Years)	'7 years 10 months 24 days	'
Options Exercisable Shares	89,994	'
Options Exercisable Price	$6.10	'
Range of Exercise Price from 7.75 to 8.62 Member	'	'
Options Outstanding Shares	136,667	'
Options Outstanding Shares Remaining Contractual Life (Years)	'8 years 6 months	'
Options Exercisable Shares	58,334	'
Options Exercisable Price	$8.13	'
Range of Exercise Price from 9.02 to 10.35 Member	'	'
Options Outstanding Shares	90,000	'
Options Outstanding Shares Remaining Contractual Life (Years)	'8 years 3 months 18 days	'
Options Exercisable Shares	46,666	'
Options Exercisable Price	$9.82	'

15_Employee_Compensation_and_B3

15. Employee Compensation and Benefits (Details 3) (Restricted Stock [Member], USD $)	9 Months Ended
	Sep. 30, 2013
Restricted Stock [Member]	'
Shares	'
Nonvested at December 31, 2012	728,333
Granted	357,654
Vested	-138,332
Forfeited	-284,867
Nonvested at September 30, 2013	662,788
Weighted Average Grant Date Fair Value	'
Nonvested at December 31, 2012	$7.47
Granted	$3.42
Vested	$7.85
Forfeited	$6.46
Nonvested at September 30, 2013	$5.64

15_Employee_Compensation_and_B4

15. Employee Compensation and Benefits (Details 4) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Stock Based Compensation Expense	$492,000	$678,000	$1,516,000	$1,901,000
Employees Member	'	'	'	'
Stock Based Compensation Expense	401,000	546,000	1,216,000	1,412,000
Non-employees/Directors Member	'	'	'	'
Stock Based Compensation Expense	$91,000	$132,000	$300,000	$489,000

14_Employee_Compensation_and_B1

14. Employee Compensation and Benefits (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Contribution expense	$95,000	$86,000	$349,000	$269,000	'
Outstanding options under Prior Plans	1,647,333	'	1,647,333	'	1,711,167
Intrinsic value of options exercised	'	'	132,000	210,000	'
Weighted-average grant date fair value for options granted	'	'	$4.64	$5.33	'
Aggregate intrinsic value of options outstanding	837,994	'	837,994	'	'
Aggregate intrinsic value of options exercisable	2,600	'	2,600	'	'
Restricted common shares issued	'	'	5,000,000	'	'
Compensation expense related to employee stock purchase plan	'	'	59,000	56,000	'
Unrecognized Compensation Cost, employees	$568,000	'	$568,000	'	'
Weighted-average period for recognition of compensation cost	'	'	'1 year 6 months	'	'
2009 Stock Incentive Plan	'	'	'	'	'
Outstanding options under Prior Plans	30,000	'	30,000	'	'
Options Outstanding Shares Remaining Contractual Life (Years)	'1 year 4 months 24 days	'	'1 year 4 months 24 days	'	'

16_Income_Taxes_Details

16. Income Taxes (Details)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Effective income tax rate from continuing operations	'	'
Expected taxes at statutory rates	-35.00%	-35.00%
State taxes, net of federal tax benefit	-1.70%	-33.20%
Nondeductible expenses, including merger related expenses	1.00%	7.60%
Put right expense	7.50%	'
Other	0.50%	0.70%
Total	-28.70%	-59.90%

17_Commitments_and_Contingenci1

17. Commitments and Contingencies (Details) (USD $)	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
2013 (July - December)	$193,000
2014	470,000
2015	39,000
2016	3,000
2017	'
Total	$705,000

17_Commitments_and_Contingenci2

17. Commitments and Contingencies (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Unrecognized stock compensation cost related to unvested stock options issued to ParaPro	$1,412,000	'	$1,412,000	'	'
Para Pro Weighted Average period	'3 years 8 months 12 days	'	'3 years 8 months 12 days	'	'
Rent Expense	182,000	94,000	567,000	269,000	'
Co-promotion and other revenue sharing arrangements	2,024,000	1,058,000	5,113,000	2,973,000	'
Balance remained unpaid under co-promotion agreement	$625,000	'	$625,000	'	$800,000