Pernix Therapeutics 10-Q 11 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 08, 2014
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-Jun-14	'
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	'	38,043,889
Document Fiscal Period Focus	'Q2	'
Document Fiscal Year Focus	'2014	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$60,791,476	$15,646,963
Accounts receivable, net	22,769,368	25,681,371
Inventory, net	12,545,816	13,809,929
Note receivable, net of unamortized discount of $25,145 and $100,582, respectively	4,824,855	4,749,418
Prepaid expenses and other current assets	6,535,823	5,878,292
Income tax receivable	5,348,137	1,318,446
Deferred income taxes	11,085,000	9,301,000
Total current assets	123,900,475	76,385,419
Property and equipment, net	1,107,285	6,872,042
Other assets:	'	'
Goodwill	41,581,017	42,496,592
Intangible assets, net	76,380,424	80,022,283
Note receivable, net of unamortized discount of $223,087 and $318,696, respectively	4,626,913	4,531,304
Other long-term assets	5,543,590	1,078,655
Total assets	253,139,704	211,386,295
Current liabilities:	'	'
Accounts payable	7,738,240	3,443,629
Accrued personnel expenses	3,975,589	3,803,274
Accrued allowances	34,857,336	34,285,578
Other accrued expenses	3,964,389	5,532,549
Put option and contingent consideration - Cypress acquisition	'	1,330,000
Other liabilities	4,363,751	4,072,933
Debt	13,128,848	16,999,687
Total current liabilities	68,028,153	69,467,650
Long-term liabilities	'	'
Other liabilities	11,487,682	14,387,766
Debt	'	1,309,767
Senior convertible notes	65,000,000	'
Deferred income taxes	11,284,000	15,499,000
Total liabilities	155,799,835	100,664,183
Commitments and contingencies (Note 17)	'	'
STOCKHOLDERS' EQUITY	'	'
Common stock, $.01 par value, 90,000,000 shares authorized, 40,336,677 and 39,318,301 issued and 38,024,889and 37,189,351 outstanding at June 30, 2014 and December 31, 2013, respectively	380,249	371,893
Treasury stock, at cost (2,311,788 and 2,128,950 shares held at June 30, 2014 and December 31, 2013, respectively)	-4,754,400	-4,001,475
Additional paid-in capital	122,691,658	119,553,760
Accumulated deficit	-20,977,638	-5,202,066
Total stockholders' equity	97,339,869	110,722,112
Total liabilities and stockholders' equity	$253,139,704	$211,386,295

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Stockholders Equity	'	'
Common stock par value	$0.01	$0.01
Common stock shares authorized	90,000,000	90,000,000
Common stock shares issued	40,336,677	39,318,301
Common stock shares outstanding	38,024,889	37,189,351
Treasury Stock held, at cost	2,311,788	2,128,950
Unamortized discount, Current	$25,145	$100,582
Unamortized discount, Noncurrent	$223,087	$318,696

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) (USD $) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement [Abstract]	'	'	'	'
Net revenues	$17,381,984	$20,573,401	$36,433,536	$42,651,274
Costs and operating expenses:	'	'	'	'
Cost of product sales	8,704,669	11,162,350	18,660,619	24,239,797
Selling, general and administrative expense	13,743,559	13,141,447	27,367,009	27,220,635
Research and development expense	345,579	1,792,184	1,314,433	2,999,300
Depreciation and amortization expense	1,969,159	2,276,992	4,159,626	4,101,700
Loss on disposal of equipment	152,720	4,880	152,720	4,880
Loss on sale of PML (including impairment charge)	215,401	'	6,672,367	'
Total costs and operating expenses	25,131,087	28,377,853	58,326,774	58,566,312
Loss from operations	-7,749,103	-7,804,452	-21,893,238	-15,915,038
Other income (expense):	'	'	'	'
Change in fair value of put right	'	-1,830,062	'	-3,970,789
Change in fair value of contingent consideration	'	'	'	283,000
Interest expense, net	-2,233,082	-1,632,569	-3,497,334	-2,709,184
Gain on sale of investment	'	3,605,263	'	3,605,263
Total loss income, net	-2,233,082	142,632	-3,497,334	-2,791,710
Loss before income taxes	-9,982,185	-7,661,820	-25,390,572	-18,706,748
Income tax benefit	3,749,000	1,985,000	9,615,000	5,119,000
Net loss	-6,233,185	-5,676,820	-15,775,572	-13,587,748
Other comprehensive (loss) income	'	'	'	'
Unrealized gains during period, net of tax of $437,900 and ($411,000) for the three and six months ended June 30, 2013, respectively	'	746,645	'	-702,000
Reclassification adjustment for net realized gain included in net loss, net of tax of ($1,322,000) for both the three and six months ended June 30, 2013	'	-2,273,118	'	-2,273,118
Comprehensive loss	($6,233,185)	($7,203,293)	($15,775,572)	($16,562,866)
Net Loss per share, basic	($0.16)	($0.15)	($0.42)	($0.38)
Net Loss per share, diluted	($0.16)	($0.15)	($0.42)	($0.38)
Weighted-average common shares, basic	37,828,218	37,114,717	37,551,144	35,738,469
Weighted-average common shares, diluted	37,828,218	37,114,717	37,551,144	35,738,469

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) (Parenthetical) (USD $)	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2013
Income Statement [Abstract]	'	'
Unrealized loss on securities, net of income tax	$437,900	($411,000)
Reclassification adjustment for net gains, net	($1,322,000)	($1,322,000)

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD$) (USD $)	Common Stock	Additional Paid-In Capital	Treasury Stock	Accumulated Deficit	Total
Beginning Balance, Amount at Dec. 31, 2013	$371,893	$119,553,760	($4,001,475)	($5,202,066)	$110,722,112
Beginning Balance, Shares at Dec. 31, 2013	37,189,351	'	'	'	'
Stock-based compensation	'	'	'	'	'
Restricted stock	'	1,223,493	'	'	1,223,493
Stock Options	'	1,255,477	'	'	1,255,477
Employee stock purchase plan	'	40,000	'	'	40,000
Issuance of stock options for services from non-employees	'	119,134	'	'	119,134
Cancellation of ParaPRO stockoptions in connection with termination of contract	'	-1,293,720	'	'	-1,293,720
Issuance of common stock upon the exercise of options	5,378	1,923,862	'	'	1,929,240
Issuance of common stock upon the exercise of options, shares	537,815	'	'	'	'
Issuance of common stock upon the cashless exercise of options from non-employees	349	-349	'	'	'
Issuance of common stock upon the cashless exercise of options from non-employees, shares	34,807	'	'	'	'
Issuance of common stock in connection with the Employee stock purchase plan	114	19,516	'	'	19,630
Issuance of common stock in connection with the Employee stock purchase plan, shares	11,431	'	'	'	'
Issuance of common stock upon the vesting of restricted stock	4,343	-4,343	'	'	'
Issuance of common stock upon the vesting of restricted stock, shares	434,323	'	'	'	'
Forfeit of restricted common stock resulting from payment of employee income tax liability	-1,828	1,828	-752,925	'	-752,925
Forfeit of restricted common stock resulting from payment of employee income tax liability, shares	-182,838	'	'	'	'
Income tax benefit on stock based awards	'	-147,000	'	'	-147,000
Net loss	'	'	'	-15,775,572	-15,775,572
Ending Balance, Amount at Jun. 30, 2014	$380,249	$122,691,658	($4,754,400)	($20,977,638)	$97,339,869
Ending Balance, Shares at Jun. 30, 2014	38,024,889	'	'	'	'

CONDENSED_CONSOLIDATED_STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows used in operating activities:	'	'
Net loss	($15,775,572)	($13,587,748)
Adjustments to reconcile net loss to net cash from operating activities	'	'
Depreciation	209,076	306,965
Amortization of intangibles and interest accretion of contingent consideration	3,950,550	3,794,735
Amortization of deferred financing costs	777,324	947,818
Accretion of notes receivable	-171,046	'
Deferred income tax benefit	-5,999,000	-2,810,000
Gain on sale of investment	'	-3,605,263
Loss on disposal of equipment	152,720	4,880
Loss on sale of PML	215,401	'
Stock-based compensation expense	2,518,970	1,024,835
Expense from stock options issued in exchange for services	119,134	294,796
Cancellation of ParaPRO stock options in connection with termination of contract	-1,293,720	'
Change in fair value of put right	'	3,970,789
Change in fair value of contingent consideration	'	-283,000
Impairment charge	6,456,966	'
Changes in operating assets and liabilities (net of effect of acquisitions and dispositions):	'	'
Accounts receivable	2,924,303	11,164,747
Inventory	695,703	4,136,232
Prepaid expenses and other assets	35,970	-915,804
Accounts payable	4,388,557	5,803,724
Income taxes	-4,029,690	-3,545,938
Accrued expenses	-5,371,000	-7,234,683
Net cash used in operating activities	-10,195,354	-532,915
Cash flows provided by investing activities:	'	'
Proceeds from sale of investment	'	4,605,263
Acquisition of Cypress	'	-309,589
Proceeds from the sale of PML	1,177,665	'
Proceeds from sale of property and equipment	40,800	23,000
Purchase of equipment	-419,430	-278,965
Net cash provided by investing activities	799,035	4,039,709
Cash flows provided by (used in) financing activities:	'	'
Cash acquired in connection with acquisition of Somaxon	'	2,880,837
Payments on original Midcap Loan	'	-12,497,196
Payments on Midcap term loan	'	-2,299,802
Proceeds from issuance of convertible senior notes	65,000,000	'
Payment on financing costs	-6,230,699	'
Net payments on Midcap revolving credit facility	-3,730,994	-3,842,193
Payment on contracts payable	-1,500,000	-1,533,334
Payments on mortgages and capital leases	-46,420	-81,210
Income tax benefit on stock-based awards	-147,000	-84,000
Proceeds from exercise of stock options	1,948,870	184,015
Payment of employee income tax liability with surrender of employee restricted stock	-752,925	-208,613
Net cash provided by (used in) financing activities	54,540,832	-17,481,496
Net increase (decrease) in cash and cash equivalents	45,144,513	-13,974,702
Cash and cash equivalents, beginning of period	15,646,963	23,022,821
Cash and cash equivalents, end of period	60,791,476	9,048,119
Supplemental Disclosure:	'	'
Cash paid for income taxes	560,691	1,320,939
Interest paid during the period	2,617,157	2,001,022
Non-cash transactions	'	'
Accrued bonus paid in restricted common stock	'	46,022
Acquisition of license - contract payable	2,500,000	500,000
Acquisition of Cypress and Somaxon - purchase price adjustment	'	4,736,250
Acquisition of Somaxon - fair value of common stock	'	$23,840,424

1_Company_Overview

1. Company Overview	6 Months Ended
	Jun. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
1. Company Overview	'
	Note 1.	Company Overview
	Pernix Therapeutics Holdings, Inc. (“Pernix”, the “Company”, “we”, “our” and "us") is a pharmaceutical company that has traditionally sold products addressing a variety of therapeutic areas. The Company is in the process of transitioning  to a specialty focused company that sells, markets and develops branded and generic pharmaceutical products primarily indicated for sleep, depression, bacterial infections and cough and cold conditions. The Company intends to see continued growth through the promotion of its products to physicians, healthcare practitioners and consumers, as appropriate. Since inception, the Company has engaged in a number of acquisitions and licensing arrangements to expand its product offerings and intends to continue this strategy.
	The Company’s branded products include CEDAX®, an antibiotic for middle ear infections, and a family of prescription treatments for cough and cold (ZUTRIPRO®, REZIRA®, and VITUZ®). The Company also markets SILENOR® (doxepin), which is approved for the treatment of insomnia characterized by difficulty with sleep maintenance and is not ntrolled substance. The Company recently entered into an Exclusive License Agreement with Osmotica Pharmaceutical Corp. to promote its desvenlafaxine product, Khedezla™ Extended-Release Tablets, 50 and 100 mg for major depressive disorder.
	Note 1.	Company Overview
	Pernix Therapeutics Holdings, Inc. (“Pernix”, the “Company”, “we”, “our” and "us") is a pharmaceutical company that has traditionally sold products addressing a variety of therapeutic areas. The Company is in the process of transitioning  to a specialty focused company that sells, markets and develops branded and generic pharmaceutical products primarily indicated for sleep, depression, bacterial infections and cough and cold conditions. The Company intends to see continued growth through the promotion of its products to physicians, healthcare practitioners and consumers, as appropriate. Since inception, the Company has engaged in a number of acquisitions and licensing arrangements to expand its product offerings and intends to continue this strategy.
	The Company’s branded products include CEDAX®, an antibiotic for middle ear infections, and a family of prescription treatments for cough and cold (ZUTRIPRO®, REZIRA®, and VITUZ®). The Company also markets SILENOR® (doxepin), which is approved for the treatment of insomnia characterized by difficulty with sleep maintenance and is not a controlled substance. The Company recently entered into an Exclusive License Agreement with Osmotica Pharmaceutical Corp. to promote its desvenlafaxine product, Khedezla™ Extended-Release Tablets, 50 and 100 mg for major depressive disorder.
	The Company also currently promotes Omeclamox-Pak® through a License and Supply Agreement with GastroEntero-Logic, LLC, or GEL.  During the fourth quarter of 2013, the Company entered into a promotion agreement with Cumberland Pharmaceuticals pursuant to which Cumberland began promoting Omeclamox-Pak to gastroenterologists.
	The Company promotes its branded products through its sales and marketing organization.
	The Company sells its generic products in the areas of cough and cold, pain, vitamins, dermatology, antibiotics and gastroenterology through its wholly-owned subsidiaries, Macoven Pharmaceuticals, LLC, or Macoven, and Cypress Pharmaceuticals, Inc., or Cypress.
	Acquisition of Treximet®.  The Company is party to an Asset Purchase and Sale Agreement (the “Agreement”) dated as of May 13, 2014 with GlaxoSmithKline plc (NYSE: GSK) and certain of its related affiliates (together, “GSK”) pursuant to which the Company will at the closing thereunder acquire certain assets related to Treximet® (sumitriptan/naproxensodium), for the acute treatment of migraine attacks with or without aura in adults.   On August 4, 2014, the Company announced that the closing of this transaction was delayed due to a short-term supply constraint for the product. The Company is working with GSK to ensure sufficient supply to meet anticipated demand.  The Company and its lenders are performing additional due diligence related to this supply constraint.  Upon closing, the Company anticipates making an upfront payment to GSK of $250 million for the U.S rights to Treximet®. The Company also anticipates making a contingent payment of up to $17 million to GSK upon receipt of an updated Written Request for pediatric exclusivity from the U.S. Food & Drug Administration.  As a condition to closing, GSK will continue to manufacture Treximet® under a long-term Supply Agreement with the Company. The Company expects to fund this acquisition with $220 million in debt, plus approximately $50 million from available cash.
	In connection with the closing of the Agreement, GSK will assign to the Company the Product Development and Commercialization Agreement (the “PDC Agreement”) between GSK and POZEN, Inc. (NASDAQ: POZN), and POZEN and the Company will amend the PDC Agreement to facilitate further development of Treximet®. Under the proposed amendment, the Company will be required to complete the filing for a pediatric indication for Treximet® and undertake certain new activities to extend the product’s life. In addition, the Company will release restrictions on POZEN’s right to develop and commercialize additional dosage forms of sumatriptan/naproxen combinations outside of the United States.  The amended PDC Agreement will also provide for royalties of 18% of net sales with quarterly minimum royalty amounts of $4 million for the calendar quarters commencing on January 1, 2015 and ending on March 31, 2018.
	In connection with the assignment of the PDC Agreement, the Company will at closing pay $3 million to CPPIB Credit Investments Inc. (who owns the rights to the royalty payments under the PDC Agreement), and will also grant POZEN a warrant (the “Warrant”) to purchase 500,000 shares of the Company’s common stock at an exercise price of $4.28 per share (the closing price of the Company’s common stock on May 13, 2014 as reported on NASDAQ). The Warrant is exercisable from the closing date of the Agreement until February 28, 2018.  The Company agreed to file a registration statement for the resale of the shares underlying the Warrant on a Form S-3 within 30 days of the issuance date and to use the Company's best efforts to have such registration statement declared effective as soon as practicable thereafter.
	The Company also currently promotes Omeclamox-Pak® through a License and Supply Agreement with GastroEntero-Logic, LLC, or GEL.  During the fourth quarter of 2013, the Company entered into a promotion agreement with Cumberland Pharmaceuticals pursuant to which Cumberland began promoting Omeclamox-Pak to gastroenterologists.
	The Company promotes its branded products through its sales and marketing organization.
	The Company sells its generic products in the areas of cough and cold, pain, vitamins, dermatology, antibiotics and gastroenterology through its wholly-owned subsidiaries, Macoven Pharmaceuticals, LLC, or Macoven, and Cypress Pharmaceuticals, Inc., or Cypress.
	Acquisition of Treximet®.  The Company is party to an Asset Purchase and Sale Agreement (the “Agreement”) dated as of May 13, 2014 with GlaxoSmithKline plc (NYSE: GSK) and certain of its related affiliates (together, “GSK”) pursuant to which the Company will at the closing thereunder acquire certain assets related to Treximet® (sumitriptan/naproxensodium), for the acute treatment of migraine attacks with or without aura in adults.   On August 4, 2014, the Company announced that the closing of this transaction was delayed due to a short-term supply constraint for the product. The Company is working with GSK to ensure sufficient supply to meet anticipated demand.  The Company and our lenders are performing additional due diligence related to this supply constraint.  Upon closing, the Company anticipates making an upfront payment to GSK of $250 million for the U.S rights to Treximet®. The Company also anticipates making a contingent payment of up to $17 million to GSK upon receipt of an updated Written Request for pediatric exclusivity from the U.S. Food & Drug Administration.  As a condition to closing, GSK will continue to manufacture Treximet® under a long-term Supply Agreement with us.  The Company expects to fund this acquisition with $220 million in debt, plus approximately $50 million from available cash.
	In connection with the closing of the Agreement, GSK will assign to the Company the Product Development and Commercialization Agreement (the “PDC Agreement”) between GSK and POZEN, Inc. (NASDAQ: POZN), and POZEN and the Company will amend the PDC Agreement to facilitate further development of Treximet®. Under the proposed amendment, the Company will be required to complete the filing for a pediatric indication for Treximet® and undertake certain new activities to extend the product’s life. In addition, the Company will release restrictions on POZEN’s right to develop and commercialize additional dosage forms of sumatriptan/naproxen combinations outside of the United States.  The amended PDC Agreement will also provide for royalties of 18% of net sales with quarterly minimum royalty amounts of $4 million for the calendar quarters commencing on January 1, 2015 and ending on March 31, 2018.
	In connection with the assignment of the PDC Agreement, the Company will at closing pay $3 million to CPPIB Credit Investments Inc. (who owns the rights to the royalty payments under the PDC Agreement), and will also grant POZEN a warrant (the “Warrant”) to purchase 500,000 shares of the Company’s common stock at an exercise price of $4.28 per share (the closing price of the Company’s common stock on May 13, 2014 as reported on NASDAQ). The Warrant is exercisable from the closing date of the Agreement until February 28, 2018.  The Company agreed to file a registration statement for the resale of the shares underlying the Warrant on a Form S-3 within 30 days of the issuance date and to use the Company's best efforts to have such registration statement declared effective as soon as practicable thereafter.

2_Basis_of_Presentation_and_Su

2. Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]	'
2. Basis of Presentation and Summary of Significant Accounting Policies	'
	Note 2.	Basis of Presentation and Summary of 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, 2013.
	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 the three and six-month period ended June 30, 2014 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, LLC, or PML (sold on April 21, see Note 9, Disposal of PML), Respicopea, Inc., Cypress, Cypress’ subsidiary, Hawthorn Pharmaceuticals, Inc. and Pernix Sleep, also known as Somaxon Pharmaceuticals, Inc., or Somaxon (acquired March 6, 2013).  Pernix Sleep is included only for the period subsequent to its acquisition. 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, 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), notes receivable, our credit facility and senior convertible notes. The carrying values of these assets and liabilities approximate their fair value.
	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.
	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.
	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
	We record all of our revenue from product sales, manufacturing sales and 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) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been performed and are billable; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured. We record revenue from product sales when the customer takes ownership and assumes risk of loss (free-on-board destination). At the time of a product 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.
	For arrangements that involve the delivery of more than one element, each product, service and/or right to use assets is evaluated to determine whether it qualifies as a separate unit of accounting.  This determination is based on whether the deliverable has “stand-alone value” to the customer.  The consideration that is fixed or determinable is then allocated to each separate unit of accounting based on the relative selling price of each deliverable.  The estimated selling price of each deliverable is determined using the following hierarchy of values: (i) vendor-specific objective evidence of fair value, (ii) third-party evidence of selling price (TPE) and (iii) best estimate of selling price (BESP).  The BESP reflects the best estimate of what the selling price would be if the deliverable was regularly sold by us on a stand-alone basis.  In most cases we expect to use TPE or BESP for allocating consideration to each deliverable.  The consideration allocated to each unit of accounting is recognized as the related goods or services are delivered, limited to the consideration that is not contingent upon future deliverables. Analyzing the arrangement to identify deliverables requires the use of judgment, and each deliverable may be an obligation to deliver services, a right or license to use an asset, or another performance obligation.
	The Company recognizes revenue from milestone payments when earned, provided that (i) the milestone event is substantive in that it can only be achieved based in whole or in part on either the entity's performance or on the occurrence of a specific outcome resulting from the entity's performance and its achievability was not reasonably assured at the inception of the collaboration arrangement and (ii) the Company does not have ongoing performance obligations related to the achievement of the milestone earned and (iii) it would result in additional payments being due to the Company.  Milestone payments are considered substantive if all of the following conditions are met: the milestone payment is non-refundable; achievement of the milestone was not reasonably assured at the inception of the arrangement; substantive effort is involved to achieve the milestone; and the amount of the milestone appears reasonable in relation to the effort expended, the other milestones in the arrangement and the related risk associated with the achievement of the milestone. Any amounts received under the promotion arrangement in advance of performance, if deemed substantive, are recorded as deferred revenue and recognized as revenue as the Company completes its performance obligations.
	Manufacturing revenue is recognized when the finished product is shipped to the customer.
	The following table sets forth a summary of Pernix’s consolidated net revenues for the three and six months ended June 30, 2014 and 2013.
			Three Months Ended						Six Months Ended
			June 30,						June 30,
			2014			2013			2014			2013
	Gross product sales		$	36,774,318		$	35,423,638		$	77,346,100		$	74,007,616
	Sales allowances			(20,259,846	)		(16,493,215	)		(43,301,030	)		(35,166,458	)
	Net product sales			16,514,472			18,930,423			34,045,070			38,841,158
	Manufacturing revenue			154,069		551,348				1,025,284		1,735,378
	Co-promotion and other revenue			713,443			1,091,630			1,363,182			2,074,738
	Net revenues		$	17,381,984		$	20,573,401		$	36,433,536		$	42,651,274
	The Company’s customers 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 six months ended June 30, 2014 and 2013, or 10% of total accounts receivable as of June 30, 2014 and December 31, 2013.
			Gross Product Sales
			Three Months Ended						Six Months Ended
			June 30,						June 30,
			2014			2013			2014			2013
	Cardinal Health, Inc.			21	%		28	%		19	%		29	%
	McKesson Corporation			40	%		37	%		38	%		36	%
	AmerisourceBergen Drug Corporation (1)			25	%		11	%		30	%		13	%
	Total			86	%		76	%		87	%		78	%
	(1) The gross sales shifted between Cardinal and AmerisourceBergen due to the fact that AmerisourceBergen entered into a strategic, long-term relationship with Walgreens in March 2013 which includes a ten-year comprehensive primary pharmaceutical distribution contract with Walgreens among other things.  Previously, Cardinal was the primary distributor for Walgreens.
			Accounts Receivable
			June 30,			December 31,
			2014			2013
	Cardinal Health, Inc.			24	%		16	%
	McKesson Corporation			33	%		35	%
	AmerisourceBergen Drug Corporation			22	%		23	%
	Total			79	%		74	%
	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 or donations 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.
	In connection with the acquisitions of Cypress and Somaxon, the Company adjusted the predecessor cost basis, increasing inventory to fair value as required by ASC 820, Fair Value Measurements and Disclosures.  As a result, the Company recorded adjustments to increase the inventory to fair value in the amount of $8,600,000 and $695,000 at the time of acquisition for Cypress and Somaxon, respectively.  For the three months ended June 30, 2014 and 2013, approximately $774,300 and $895,400 of the increase in the basis of the inventory was amortized and included in cost of product sales, as the inventory was subsequently sold.  For the six months ended June 30, 2014 and 2013, approximately $2,396,500 and $4,710,700 of the increase in the basis of the inventory was amortized and included in cost of product sales, as the inventory was subsequently sold. The balance remaining of the increase in the basis of the inventory acquired is approximately $317,900 as of June 30, 2014.
	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. The Company is required to estimate 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 on launch return percentages for sales of new products. 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 adjusted as sales history and returns experience is accumulated on this portfolio of products. The Company reviews and adjusts these reserves quarterly.
	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 coupons, customer rebates, service fees, chargebacks, shelf stock adjustments, 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 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 and utilization information provided by a third party claims processing organization. The Company accounts for the costs of these special promotional programs as price adjustments, resulting in a reduction in gross revenue.
	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
Discounts. The Company typically requires its customers to remit payments within the first 30 days for branded products (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%, but may be higher in some instances due to product launches and/or industry expectations. Because the Company’s wholesale distributors typically take advantage of the prompt pay discount, the Company accrues 100% of the prompt pay discounts, based on the gross amount of each invoice, at the time of our original sale, and apply earned discounts at the time of payment. This allowance is recorded as a reduction of accounts receivable and revenue. The Company adjusts the accrual periodically to reflect actual experience. Historically, these adjustments have not been material. The Company does not anticipate that future changes to its estimates of prompt payment discounts will have a material impact on our net revenue.
Research and Development Costs
Research and development costs in connection with the Company’s internal programs for the development of products are expensed as incurred. Pernix either expenses research and development costs as incurred or will advance third parties a research and development fee which is amortized over the term of the related agreement. Research and development expenses were approximately $345,600 and $1,314,400 for the three and six months ended June 30, 2014, respectively. Research and development expenses were approximately $1,792,400 and $2,999,500 for the three and six months ended June 30, 2013, respectively.
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 customer, distribution methods and regulatory environment. The Company had a manufacturing subsidiary (PML) until April 21, 2014, when it was sold (see Note 9, Disposal of PML), but the majority of its revenue is generated through intercompany sales and is eliminated in consolidation. It is deemed immaterial for segment reporting purposes.
Income Taxes
Deferred taxes are recognized for the tax consequences of “temporary differences” by applying enacted statutory tax rates applicable to future years to the difference between the financial statement carrying amounts and the tax basis of existing assets and liabilities. The effect on deferred taxes for a change in tax rates is recognized in income in the period that includes the enactment date. Pernix will recognize future tax benefits to the extent that realization of such benefits is more likely than not. Management has evaluated the potential impact in accounting for uncertainties in income taxes and has determined that it has no significant uncertain income tax positions as of June 30, 2014. Income tax returns subject to review by taxing authorities include 2010, 2011, 2012 and 2013.
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 common stock equivalents (i.e. restricted stock, stock options, warrants and convertible notes). Dilutive common share equivalents consist of the incremental common shares issuable upon exercise of stock options.
The following table sets forth the computation of basic and diluted net loss per share:
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2014			2013			2014			2013
Numerator:
Net loss		$	(6,233,185	)	$	(5,676,820	)	$	(15,775,572	)	$	(13,587,748
Denominator:
Weighted-average common shares, basic			37,828,218			37,114,717			37,551,144			35,738,469
Dilutive effect of stock options		─			─			─				─
Weighted-average common shares, diluted			37,828,218			37,114,717			37,551,144			35,738,469
Net loss per share, basic and diluted		$	(0.16	)	$	(0.15	)	$	(0.42	)	$	(0.38	)
As of June 30, 2014, total outstanding options are 3,906,552 and total nonvested restricted stock are 217,799. Options and nonvested restricted stock are not included above as their effect is anti-dilutive. See Note 15, Employee Compensation and Benefits, for information regarding the Company’s outstanding options.
As of June 30, 2014, total outstanding warrants are 469,491issued in connection with the acquisition of Somaxon. Warrants are not included above as their effect is anti-dilutive.
As discussed in Note 13, in February 2014, the Company issued $65 million aggregate principal amount of 8.00% Convertible Senior Notes due 2019 (the “February 2014 Notes”) pursuant to Rule Regulation D and Section 4(2) under the Securities Act. Upon any conversion the February 2014 Notes may be settled in shares of the Company’s common stock. For purposes of calculating the maximum dilutive impact, it is presumed that the February 2014 Notes will be settled in common stock with the resulting potential common shares included in diluted earnings per share if the effect is more dilutive. The effect of the conversion of the February 2014 Notes is excluded from the calculation of diluted loss per share because the net loss for the quarter ended June 30, 2014 causes such securities to be anti-dilutive. The potential dilutive effect of these securities is shown in the chart below:
		June 30,
(in thousands)		2014			2013
Conversion of the February 2014 Notes			18,056			−
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 loss are recorded in the condensed consolidated statements of comprehensive loss, net of the related income tax effect. The Company liquidated its investments in marketable equity securities in June 2013 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.  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.
Impairment of Long-lived Assets
The Company reviews long-lived assets, such as property and equipment, and purchased intangible assets subject to amortization for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. If any long-lived assets are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair value. In connection with the sale of PML, the Company recorded an impairment charge of approximately $6,456,000 against the net assets of PML for the six months ended June 30, 2014.  See Note 9,Disposal of PML, for additional information.
Recent Accounting Pronouncements
In April 2014, the Financial Accounting Standards Board issued Accounting Standards Update, or ASU, 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360) which changes the requirements for reporting discontinued operations. ASU 2014-08 changes the threshold for disclosing discontinued operations and the related disclosure requirements. Pursuant to ASU 2014-08, only disposals representing a strategic shift, such as a major line of business, a major geographical area or majority equity investment, should be presented as a discontinued operation. If the disposal does qualify as a discontinued operation under ASU 2014-08, the entity will be required to provide expanded disclosures. The guidance will be applied prospectively to new disposals and new classifications of disposal groups held for sale after the effective date. ASU 2014-08 is effective for annual periods beginning on or after December 15, 2014 with early adoption permitted but only for disposals or classifications as held for sale which have not been reported in financial statements previously issued or available for issuance. We adopted ASU 2014-08 as of January 1, 2014. We believe our sale of PML does not qualify as discontinued operations upon our adoption of ASU 2014-08 as the Company’s manufacturing facility was not a major line of business and was not a significant component of the Company’s financial results during our period of ownership, July 1, 2012 through April 21, 2014.See Note 9, Disposal of PML, for additional information.
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update, or ASU, 2014-09, Revenue from Contracts with Customers. ASU 2014-09 will eliminate transaction- and industry-specific revenue recognition guidance under current GAAP and replace it with a principle-based approach for determining revenue recognition. ASU 2014-09 will require that companies recognizerevenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure aboutthe nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments andchanges in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for annual reportingperiods beginning after December 15, 2016. Early application is not permitted. Entities can transition to the standard either retrospectively or asa cumulative-effect adjustment as of the date of adoption. Presently, we are assessing what effect the adoption of ASU 2014-09 will have onour consolidated financial statements and accompanying notes.
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, 2013.

3_Fair_Value_Measurement

3. Fair Value Measurement	6 Months Ended
	Jun. 30, 2014
Fair Value Disclosures [Abstract]	'
3. Fair Value Measurement	'
	Note 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 basis as of June 30, 2014 and December 31, 2013 (in thousands):
			30-Jun-14
			Level 1		Level 2		Level 3		Total
	Assets
	Money market fund and trust cash sweep investments (1)		$	56,530	$	—	$	—		56,530
	Total Assets		$	56,530	$	—	$	—		56,530
			31-Dec-13
			Level 1		Level 2		Level 3		Total
	Assets
	Money market fund and trust cash sweep investments (1)		$	6,312	$	—	$	—		6,312
	Total Assets		$	6,312	$	—	$	—		6,312
	Liabilities
	Contingent consideration (2)		$	—	$	—	$	1,330	$	1,330
	Total Liabilities		$	—	$	—	$	1,330	$	1,330
	(1)	The Company’s money market and trust cash sweep investments are included in cash and cash equivalents.
	(2)	Contingent consideration consists of certain holdback payments and contingent cash and equity payments with respect to our acquisition of Cypress. The fair value of the contingent consideration is included in put option and contingent consideration on the accompanying condensed consolidated balance sheets. The fair value of contingent consideration was originally 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.  The Company settled the matter of contingent consideration and paid the former shareholders of Cypress $1,330,000 in January 2014.
	The Company believes the carrying amount of its debt, notes payable and contracts payable, are a reasonable estimate of their fair value due to the short remaining maturity of these items and/or their fluctuating interest rates.

4_Accounts_Receivable

4. Accounts Receivable	6 Months Ended
	Jun. 30, 2014
Accounts Receivable, Net [Abstract]	'
Accounts Receivable	'
	Note 4.	Accounts Receivable
	Accounts receivable consist of the following:
			June 30,			December 31,
			2014			2013
	Trade accounts receivable		$	22,551,757		$	25,585,112
	Less allowance for prompt pay discounts			(502,155	)		(531,722	)
	Less allowance for doubtful accounts			(58,491	)		(84,328	)
	Total trade receivables			21,991,111			24,969,062
	Other miscellaneous receivables			44,441			57,475
	Receivables from third parties – revenue sharing arrangements			733,816			654,834
	Total accounts receivable		$	22,769,368		$	25,681,371
	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 generally 2%-3%, as an incentive to remit payment within these deadlines. Accounts receivable are stated net of the estimated prompt pay discount.

5_Notes_Receivable

5. Notes Receivable	6 Months Ended
	Jun. 30, 2014
Notes Receivable	'
Notes Receivable	'
	Note 5.	Notes Receivable
	The Company received two promissory notes from Breckenridge Pharmaceutical, Inc., or Breckenridge, in connection with the sale of its generic assets held by Cypress to Breckenridge on September 11, 2013.  The notes mature on the first and second anniversary dates of the closing. The promissory notes, each in the amount of $4,850,000 are recorded net of a present value discount (at an assumed rate of 3.1% on the one-year note and 4.25% on the two year note) of approximately $248,000 and $419,000, in the aggregate, as of June 30, 2014 and December 31, 2013, respectively.

6_Inventories

6. Inventories	6 Months Ended
	Jun. 30, 2014
Inventory Disclosure [Abstract]	'
Inventories	'
	Note 6.	Inventory
	Inventories consist of the following:
			June 30,			December 31,
			2014			2013
	Raw materials		$	440,483		$	1,459,742
	Packaging materials			85,452			841,492
	Samples			537,153			731,677
	Finished goods			15,285,079			13,411,007
	Inventory, gross			16,348,167			16,443,918
	Reserve for obsolescence			(3,802,351	)		(2,633,989	)
	Inventory, net		$	12,545,816		$	13,809,929
	An increase in the basis of inventory related to the acquisitions of Cypress and Somaxon are included in the balances above as of June 30, 2014 and December 31, 2013. The increase included in raw materials was $124,000 and $221,000 as of June 30, 2014 and December 31, 2013. The increase included in finished goods was $194,000 and $2,714,000 as of June 30, 2014 and December 31, 2013, respectively.

7_Prepaid_Expenses_and_Other_C

7. Prepaid Expenses and Other Current Assets	6 Months Ended
	Jun. 30, 2014
Prepaid Expenses And Other Current Assets	'
Prepaid Expenses and Other Current Assets	'
	Note 7.	Prepaid Expenses and Other Current Assets
	Prepaid expenses and other current assets consist of the following:
			June 30,		December 31,
			2014		2013
	Prepaid expenses		$	4,069,166	$	4,123,087
	Deposits on inventory			362,258		235,956
	Prepaid contracts			─		65,733
	Capitalized financing costs			1,821,461		786,662
	Deposits under leases and contracts			282,938		227,154
	Deferred expenses			─		439,700
	Total		$	6,535,823	$	5,878,292

8_Property_Plant_and_Equipment

8. Property, Plant, and Equipment	6 Months Ended
	Jun. 30, 2014
Property, Plant and Equipment [Abstract]	'
Property, Plant, and Equipment	'
	Note 8.	Property, Plant and Equipment
	Property, plant and equipment (“PP&E”) consist of the following:
			June 30,			December 31,
			2014			2013
	Land		$	572,342		$	1,356,042
	Buildings and improvements			4,748			3,986,126
	Vehicles			—			15,000
	Equipment			583,054			2,343,601
	Furniture and fixtures			226,487			189,034
	Computer software and website			91,700			93,900
	Total carrying value of PP&E, gross			1,478,331			7,983,703
	Less accumulated depreciation			(371,046	)		(1,111,661	)
	Total PP&E, net		$	1,107,285		$	6,872,042
	Depreciation expense is approximately $59,000 and $209,000 for the three and six months ended June 30, 2014 and $163,000 and $307,000 for the three and six months ended June 30, 2013, respectively.

9_Disposal_of_PML

9. Disposal of PML	6 Months Ended
	Jun. 30, 2014
Disposal Of Pml	'
Disposal of PML	'
	Note 9.	Disposal of PML
	On March 31, 2014, the Company entered into a definitive agreement to divest its manufacturing operations, PML, to Woodfield Pharmaceutical LLC. Accordingly, during the three months ended March 31, 2014, the Company adjusted PML’s net assets to fair value and, as a result, recorded the assets as held for sale, net of an impairment charge of approximately $6,456,000. The Company closed on the sale of PML on April 21, 2014. The Company received approximately $1.2 million in proceeds, net of the assumed mortgage and working capital liabilities at closing.  The entire PML operation and the mortgage was assumed by the acquirer. The Company recorded an additional loss on the sale of approximately $215,000 at closing for the three months ended June 30, 2014. The Company does not believe the disposal of PML qualifies as discontinued operations as the manufacturing facility was not a major line of business and was not a significant component of the Company’s financial results during our period of ownership.

10_Intangible_Assets_and_Goodw

10. Intangible Assets and Goodwill	6 Months Ended
	Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]	'
Intangible Assets and Goodwill	'
	Note 10.	Intangible Assets and Goodwill
	Intangible assets consist of the following:
		Weighted Average Life		June 30,				December 31,
				2014				2013
	Patents	11 years		$	500,000			$	500,000
	Brand	8 years			3,887,000				3,887,000
	Product licenses	11.5 years			17,581,285				15,963,794
	Customer relationships	—			—				1,848,000
	Non-compete and supplier contract	5.3 years			5,194,571				5,194,571
	Trademark rights	Indefinite			399,805				399,805
	In-process research and development	Indefinite			25,300,000				25,300,000
	Developed technology	9.6 years			40,000,000				40,000,000
	Intangible assets, cost basis				92,862,661				93,093,170
	Accumulated amortization				(16,482,237	)			(13,070,887	)
	Intangible Assets, net			$	76,380,424			$	80,022,283
	Accumulated amortization:		June 30,				December 31,
			2014				2013
	Patents		$	(332,225	)		$	(305,625	)
	Brand			(2,064,978	)			(1,822,038	)
	Product licenses			(3,216,173	)			(2,382,518	)
	Customer relationships			—				(462,204	)
	Non-compete and supplier contract			(3,835,571	)			(3,609,071	)
	Developed technology			(7,033,290	)			-4,489,431
	Total accumulated amortization		$	(16,482,237	)		$	(13,070,887	)
	The weighted average life for our definite-lived intangible assets in total was approximately 9.6 years.
	Estimated amortization expense related to intangible assets with definite lives for each of the five succeeding years and thereafter is as follows:
			Amount
	2014 (July – December)		$	3,813,930
	2015			7,619,917
	2016			7,619,917
	2017			5,726,748
	2018			4,689,591
	Thereafter			21,210,516
	Total		$	50,680,619
	Amortization expense is approximately $1,910,000 and $3,951,000 for the three and six months ended June 30, 2014, respectively. Amortization expense is approximately $2,114,000 and $3,795,000 for the three and six months ended June 30, 2013, respectively.
	License Agreement.
	On February 27, 2014, the Company entered into an exclusive license agreement with Osmotica Pharmaceutical Corporation to promote KHEDEZLA (desvenlafaxine) Extended-Release (ER) Tablets, 50 mg and 100 mg. The sales and marketing of KHEDEZLA will be supported by the Company’s team of approximately 90 sales professionals, promoting the product to high desvenlafaxine prescribing physicians. The New Drug Application (NDA) for KHEDEZLA Tablets was approved by the U.S. Food and Drug Administration pursuant to section 505(b)(2) of the Federal Food, Drug, and Cosmetic Act in July 2013. KHEDEZLA is indicated for the treatment of major depressive disorder (MDD). Pursuant to the agreement, the Company agreed to make an upfront payment for the license and Osmotica’s existing inventory of Khedezla in the amount of $4,000,000 in the aggregate with (i) $1,500,000 due upon execution of the agreement, which has been paid, (ii) $1,500,000 which was paid on or before ninety days after the effective date of February 26, 2014, and (iii) $1,000,000 to be paid on or before five months after the effective date. The $4,000,000, less the value of the inventory is included in product licenses above. There are also additional milestones based on certain levels of net profits achieved. Royalty payments equivalent to 60% of net profits will be paid by the Company to Osmotica quarterly. The royalty payments reduce to 55% in the second contract year and 50% for each year thereafter.
	Changes in the carrying amount of goodwill for the six months ended June 30, 2014 are as follows:
			June 30,
			2014
	Beginning Balance		$	42,496,592
	Goodwill impairment – PML (see Note 9)		(915,575		)
	Total		$	41,581,017

11_Accrued_Allowances

11. Accrued Allowances	6 Months Ended
	Jun. 30, 2014
Accrued Liabilities [Abstract]	'
Accrued Allowances	'
	Note 11.	Accrued Allowances
	Accrued allowances consist of the following:
			June 30,		December 31,
			2014		2013
	Accrued returns allowance		$	8,819,000	$	12,049,040
	Accrued price adjustments			21,005,935		18,300,788
	Accrued government program rebates			5,032,401		3,935,750
	Total		$	34,857,336	$	34,285,578

12_Other_Liabilities

12. Other Liabilities	6 Months Ended
	Jun. 30, 2014
Other Liabilities [Abstract]	'
Other Liabilities	'
	Note 12.	Other Liabilities
	Other liabilities consist of the following:
			June 30,		December 31,
			2014		2013
	Product license contracts (see Note 10)		$	1,000,000	$	─
	Settlement obligations (see Note 17)			10,752,000	14,115,000
	Deferred revenue			4,099,433		4,279,350
	Other			─	66,349
	Total contracts payable and other obligations		$	15,851,433	$	18,460,699
	Other liabilities – current		$	4,363,751	$	4,072,933
	Other liabilities – long term		$	11,487,682	$	14,387,766

13_Debt

13. Debt	6 Months Ended
	Jun. 30, 2014
Debt Disclosure [Abstract]	'
Debt	'
	Note 13.	Debt
	Debt consists of the following:
			June 30,		December 31,
			2014		2013
	Amounts outstanding under the Midcap Credit Facility		$	13,128,848	$	16,859,891
	Stancorp mortgage			─		1,449,563
	Convertible senior notes (the “February 2014 Notes”)			65,000,000		─
	Total debt		$	78,128,848	$	18,309,454
	Debt – current		$	13,128,848	$	16,999,687
	Debt – long term		$	65,000,000	$	1,309,767
	Credit Facility – MidCap Funding V, LLC
	On February 21, 2014, in connection with the February 2014 Notes offering discussed below, the Company entered into Amendment No. 1 to the Amended and Restated Credit Agreement (the “Amendment” and together with the Amended and Restated Credit Agreement, as amended by the Amendment, the “Amended Credit Agreement”) with MidCap Funding IV, LLC, as Agent and as a lender (“MidCap”), and the other lenders from time to time parties thereto. In addition to allowing for the Note issuance, the Amendment provides for the addition of a $20 million uncommitted accordion feature to the lenders’ existing $20 million revolving loan commitment. Pursuant to the Amendment, MidCap and the other lenders released their liens on certain of our assets. The obligations under the Amended Credit Agreement are secured by a first priority security interest in the Company’s accounts, inventory, deposit accounts, securities accounts, securities entitlements, permits and cash. On April 23, 2014 we entered into Amendment No. 2 to the Amended and Restated Credit Agreement with MidCap to increase the letter of credit sublimit from $0 to $750,000.
	The covenants contained in the Amended Credit Agreement require the Company to maintain a minimum amount of EBITDA and net invoiced revenues unless we demonstrate minimum liquidity of at least $30 million. The Amended Credit Agreement continues to include 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 Agent and the other lenders, provided that, the restrictions described in (a)(i)-(vi) above are subject to certain exceptions and permissions limited in scope and dollar value. The Amended Credit Agreement also contains customary representations and warranties and event of default provisions for a secured credit facility.
	In connection with the Amendment, the Company entered into an Amended and Restated Security and Pledge Agreement (the “Amended and Restated Security Agreement”) with MidCap as Agent. The Amended and Restated Security Agreement amends and restates the Security and Pledge Agreement, dated as of December 31, 2012, that we entered into with MidCap Funding V, LLC (the “Original Security Agreement”). The Amended and Restated Security Agreement creates a security interest in favor of MidCap, for the benefit of the lenders from time to time parties to the Amended and Restated Security Agreement, in our accounts, inventory, deposit accounts, securities accounts, securities entitlements, permits and cash as security for our repayment of the Company’s obligations under the Amended Credit Agreement.
	The loans under this facility bear interest at a rate equal to the sum of the LIBOR (with a floor of 1.5%) plus an applicable margin of 7.50% per annum (9% at June 30, 2014). The expiration date of the agreement has been extended to February 21, 2017.
	February 2014 Note Offering
	On February 21, 2014, the Company issued $65,000,000 aggregate principal amount 8% Convertible Senior Notes. The February 2014 Notes mature on February 15, 2019, unless earlier converted.  The Company received net proceeds from the sale of the February 2014 Notes of approximately $58.84 million, after deducting underwriting discounts and commissions and offering expenses payable by the Company. Interest is payable on the February 2014 Notes on March 15, June 15, September 15 and December 15 of each year, beginning June 15, 2014.
	The February 2014 Notes are governed by the terms of an indenture (the “Indenture”), between the Company and Wilmington Trust, National Association (the “Trustee”), each of which were entered into on February 21, 2014.
	The February 2014 Notes are senior unsecured obligations and are: senior in right of payment to the Company’s future indebtedness that is expressly subordinated in right of payment to the February 2014 Notes; equal in right of payment to the Company’s existing and future unsecured indebtedness that is not so subordinated; effectively junior to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company’s subsidiaries.
	The Company may not redeem the February 2014 Notes prior to the Maturity Date. However, the holders may convert their February 2014 Notes at any time prior to the close of business on the business day immediately preceding February 15, 2019. Upon conversion, the Company will deliver a number of shares of the Company’s common stock equal to the conversion rate in effect on the conversion date. The initial conversion rate will be 277.7778 shares of the Company’s common stock for each $1,000 principal amount of the February 2014 Notes, which represents an initial conversion price of approximately $3.60 per share. Following certain corporate transactions that can occur on or prior to the stated maturity date, the Company will increase the conversion rate for a holder that elects to convert its February 2014 Notes in connection with such a corporate transaction.
	If a Change of Control (as defined in the Indenture) occurs prior to the stated maturity date, holders may require the Company to purchase for cash all or any portion of their February 2014 Notes at a Change of Control repurchase price equal to the Specified Percentage (as defined in the Indenture) of the principal amount of the February 2014 Notes to be purchased, plus accrued and unpaid interest to, but excluding, the Change of Control repurchase date.
	The Indenture contains customary terms and covenants and events of default with respect to the February 2014 Notes. If an event of default (as defined in the Indenture) occurs and is continuing, either the Trustee or the holders of at least 25% in aggregate principal amount of the outstanding February 2014 Notes may declare the principal amount of, and accrued and unpaid interest on, the February 2014 Notes to be due and payable immediately by notice to the Company (with a copy to the Trustee). If an event of default arising out of certain events of bankruptcy, insolvency or reorganization involving the Company (as set forth in the Indenture) occurs with respect to us, the principal amount of the February 2014 Notes and accrued and unpaid interest, if any, will automatically become immediately due and payable.
	As the Company was not required to separate the conversion option in the February 2014 Notes under ASC 815, Derivatives and Hedging, it considered whether the cash conversion guidance contained in ASC 470-20, Debt with Conversion and Other Options, is applicable to the February 2014 Notes. However, as the conversion option may not be settled in cash upon the Company’s election, the Company concluded that the cash conversion guidance is not applicable to the February 2014 Notes, and the Company therefore recorded the entire proceeds of the February 2014 Notes as a liability, without allocating any portion to equity.
	Because the conversion option is not bifurcated as a derivative pursuant to ASC 815 and is not separately accounted for under the cash conversion guidance, the Company further evaluated the conversion option to determine whether it is considered a beneficial conversion option at inception. The Company determined the effective conversion price at issuance to be $3.60 per share. Because the fair value of the common stock at the close of trading on the date of issuance was $3.08, no beneficial conversion feature existed at the issuance date.
	For the three and six months ended June 30, 2014, total interest expense related to the outstanding principal balance of the February 2014 Notes was $1,336,000 and $1,878,000 at the stated interest rate of 8.0% per annum, respectively. As of June 30, 2014, the Company had outstanding borrowings of $65 million related to the February 2014 Notes.

14_Stockholders_Equity

14. Stockholders' Equity	6 Months Ended
	Jun. 30, 2014
Stockholders Equity	'
Stockholders' Equity	'
	Note 14.	Stockholders’ Equity
	Warrants Issued in Acquisition of Somaxon
	In connection with the acquisition of Somaxon in March 2013, the Company assumed approximately 469,000 outstanding warrants in the acquisition of Somaxon.  These warrants have exercise prices ranging from $7.70 to $90.72 and expiration dates ranging from July 2016 through August 2021.

15_Employee_Compensation_and_B

15. Employee Compensation and Benefits	6 Months Ended
	Jun. 30, 2014
Employee Benefits and Share-based Compensation [Abstract]	'
Employee Equity Compensation and Benefits	'
	Note 15.	Employer Compensation and Benefits
	The Company participates in a 401(k) plan, which covers substantially all full-time employees. This 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 $108,000 and $214,000 for the three and six month periods ended June 30, 2014, respectively.  Contribution expense was approximately $118,000 and $255,000 for the three and six month periods ended June 30, 2013, respectively.
	Stock Options
	The Company’s 2009 Stock Incentive Plan (the “2009 Plan”) was approved concurrent with its merger with Golf Trust of America (“GTA”), Inc. on March 9, 2010 and subsequently amended. The maximum number of shares that can be offered under this plan, as amended, is 7,750,000. 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 June 30, 2014, approximately 90,000 options are outstanding that have been issued to current officers and employees under former incentive plans of GTA. The remaining average contractual life of these options is approximately eight years.
	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 weighted average of the assumptions used to value stock options on the date of grant, as follows:
			Six Months
			Ended
			June 30,
			2014
	Weighted average expected stock price volatility			74.5	%
	Estimated dividend yield			0	%
	Risk-free interest rate			1.9	%
	Expected life of option (in years)			6.2
	Weighted average fair value per share		$	2.74
	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 the Company’s stock. 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 six months ended June 30, 2014:
	Option Shares		Shares			Average
						Exercise
						Price
	Outstanding at December 31, 2013			1,604,500		$	4.45
	Granted			3,456,200			4.09
	Exercised(1)			(611,815	)		3.52
	Cancelled(1)			(542,333	)		4.35
	Expired		─			─
	Outstanding at June 30, 2014			3,906,552		$	4.28
	Vested and exercisable, end of period			419,348		$	5.63
	(1) Includes 390,000 options granted to ParaPRO, LLC on August 3, 2011, that were to 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 which was terminated on April 30, 2014. ParaPRO exercised 70,000 vested options in June 2014.  For additional information, see Note 17, Commitments and Contingencies.
	The intrinsic value of options exercised during the six months ended June 30, 2014 and 2013 was approximately $1,424,000 and $132,000, respectively.
	The weighted-average grant date fair value for options granted during the six months ended June 30, 2014 and 2013 was approximately $2.74 and $4.64 per share, respectively.
	The following table shows the details by range of exercise price for the total options outstanding at June 30, 2014:
				Options Outstanding				Options Exercisable
	Range of Exercise Price			Shares		Remaining Contractual Life		Shares			Price
	($)					(years)					($)
	2.09 – 3.98			2,419,852		9.2		229,852			$	3.73
	4.20 – 5.66			617,250		9.8		—				—
	6.10 – 7.11			91,583		7.5		54,495				6.1
	7.26 – 8.63			731,200		9.7		95,000				8.21
	9.02 – 10.35			46,667		7.3		40,001				9.76
				3,906,552		9.3		419,348			$	5.63
	As of June 30, 2014, the aggregate intrinsic value of 419,348 options outstanding and exercisable was approximately $1,437,000.
	As of June 30, 2014, there was approximately $6,732,000 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 3.8 years.
	Restricted Stock
	The following table shows the Company's nonvested restricted stock activity during the six months ended June 30, 2014:
						Weighted Average
						Grant Date
	Restricted Stock Shares		Shares			Fair Value
	Nonvested at December 31, 2013			628,854		$	5.6
	Granted			100,000			3.05
	Vested			(434,323	)		4.93
	Forfeited			(76,732	)		7.53
	Nonvested at June 30, 2014			217,799		$	5.1
	Approximately $787,000 of total unrecognized compensation cost related to unvested restricted stock is expected to be recognized over a weighted-average period of 1.6 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 139,554 have been issued.Compensation expense related to the Employee Stock Purchase Plan and included in the table below for the three months ended June 30, 2014 and 2013 was approximately $34,000 and $24,000, respectively. Compensation expense related to the Employee Stock Purchase Plan and included in the table below for the six months ended June 30, 2014 and 2013 was approximately $40,000 and $35,000, 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						Six Months Ended
			June 30,						June 30,
			2014			2013			2014				2013
	Employees		$	708,898		$	390,226		$	2,407,420			$	815,444
	Non-employees/Directors			31,246			89,045			111,550				209,391
Total		$	740,144		$	479,271		$	2,518,970			$	1,024,835

16_Income_Taxes

16. Income Taxes	6 Months Ended
	Jun. 30, 2014
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	Note 16.	Income Taxes
	The effective income tax rate from continuing operations is different from the federal statutory rate for the six months ended June 30, 2014 and 2013 for the following reasons:
			Six Months Ended
			June 30,
			2014			2013
	Expected taxes at statutory rates			(35.0	)%		(35.0	)%
	State taxes, net of federal tax benefit			(2.1	)%		(1.5	)%
	Nondeductible expenses			0.2	%		1.4	%
	Put right expense			─	%	7.4		%
	Other		(1.0		)%		0.3	%
				(37.9	)%		(27.4	)%

17_Commitments_and_Contingenci

17. Commitments and Contingencies	6 Months Ended
	Jun. 30, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies	'
	Note 17.	Commitments and Contingencies
	Legal Proceedings
	Settlement with Former Shareholder of Somaxon
	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). Both plaintiffs filed amended complaints on January 18, 2013. 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”).  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. 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 parties executed a stipulation of settlement setting forth a plaintiff’s fee of $185,000 on July 3, 2013.  The court approved the final settlement on April 25, 2014, and Pernix paid the $185,000 plaintiff’s fee and $15,000 for plaintiff’s legal fees on April 29, 2014. On April 25, 2014, the court dismissed the case with prejudice.
	Texas Attorney General Medicaid Investigation
	The Company reached an agreement with the Attorney General of the State of Texas to settle all claims arising from certain actions by Cypress under the Texas Medicaid Fraud Prevention Act prior to its acquisition by us in connection with a Civil Investigative Demand made on Cypress. As part of the settlement, the Company has agreed to pay $12,000,000 to the State of Texas, which amount was accrued in our financial statements at December 31, 2013 as current and long term other liabilities and recorded as an expense during the quarter ended December 31, 2013. An initial payment of $2,000,000 was due and payable within ten business days of the effective date of the final settlement agreement (the “Effective Date”) and was paid accordingly during the month ended March 31, 2014.  Thereafter, the Company will make subsequent payments of $2,000,000 on each of the first five anniversaries of the Effective Date.
	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 generally allows the counterparty to terminate the agreement and/or results in a loss of our exclusivity rights. In addition to minimum sales requirements under our co-promotion agreements, the Company has commitments under open purchase orders for inventory of approximately $8.7 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, 460,000 stock options were granted to ParaPRO. The options had 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 were 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 were exercisable for a period of five years from the date each became exercisable and were valued at approximately $2,841,000. These options were granted in a private offering under Rule 4(2) of the Securities Act of 1933. The respective support services agreement between the Company and ParaPRO was terminated effective April 30, 2014 and all unvested options were cancelled as of that date. ParaPRO exercised their 70,000 vested options on June 15, 2014 in a cashless exercise and were issued 34,807 shares of the Company’s common stock.
	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 term 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.
	The Company signed a lease for office space for a new corporate headquarters in Morristown, New Jersey.  The lease agreement is a seven year lease, beginning on or about May 19, 2014.  The total lease obligation is approximately $1,131,000 over the term of the lease.
	Future minimum lease payments under non-cancelable operating leases are as follows as of June 30, 2014:
	2014 (July – December)		$	173,000
	2015			224,300
	2016			198,600
	2017			191,100
	2018			192,000
	Thereafter			277,500
	Total		$	1,256,500
	Total rent expense was approximately $166,000 and $331,000 for the three and six months ended June 30, 2014, respectively. Total rent expense was approximately $213,000 and $384,000 for the three and six months ended June 30, 2013, respectively.
	See Note 18, Subsequent Events, for additional information.
	Milestone Payments
	The Company is party to certain license agreements and acquisition agreements.  Generally, these agreements require that the Company make milestone payments in cash upon the achievement of certain product development and commercialization goals and payments of royalties upon commercial sales. The amount 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 six months ended June 30, 2014, we recognized approximately $2,195,000 and $4,074,000, respectively, in expense included in cost of goods sold from payments pursuant to co-promotion and other revenue sharing arrangements. For the three and six months ended June 30, 2013, we recognized approximately $1,809,000 and $3,154,000, respectively.
	In connection with an amendment to the license and supply agreement between the Company and GastroEntero-Logic, LLC effective May 15, 2014, the Company must remit to GEL a minimum royalty payment of $750,000 per quarter from sale of Omeclamox-Pak®.
	Other Commitments
	In July 2012 and January 2013, Somaxon settled two patent litigation claims with parties seeking to market generic equivalents of Silenor.  As of June 30, 2014, remaining payment obligations owed by Somaxon under these settlement agreements are $1.25 million, payable in equal annual installments of $250,000 through 2019, and $1.5 million, payable in equal installments of $500,000 through 2017.
	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	6 Months Ended
	Jun. 30, 2014
Subsequent Events [Abstract]	'
Subsequent Events	'
	Note 18.	Subsequent Events
	Lease Obligation
	On July 28, 2014, the Company entered in to lease for 5,249 square feet of office space in Charleston, South Carolina where the Company’s accounting functions are based. The term of this lease is 62 months and the total financial obligation under this lease is approximately $615,000. This lease will replace an existing office lease, which the Company plans to sublease, that expires June 30, 2015.

2_Basis_of_Presentation_and_Su1

2. Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2014
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, 2013.
	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 the three and six-month period ended June 30, 2014 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, LLC, or PML (sold on April 21, see Note 9, Disposal of PML), Respicopea, Inc., Cypress, Cypress’ subsidiary, Hawthorn Pharmaceuticals, Inc. and Pernix Sleep, also known as Somaxon Pharmaceuticals, Inc., or Somaxon (acquired March 6, 2013).  Pernix Sleep is included only for the period subsequent to its acquisition. 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, 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), notes receivable, our credit facility and senior convertible notes. The carrying values of these assets and liabilities approximate their fair value.
	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.
	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.
	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	'
	We record all of our revenue from product sales, manufacturing sales and 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) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been performed and are billable; (3) the seller’s price to the buyer is fixed or determinable; and (4) collectability is reasonably assured. We record revenue from product sales when the customer takes ownership and assumes risk of loss (free-on-board destination). At the time of a product 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.
	For arrangements that involve the delivery of more than one element, each product, service and/or right to use assets is evaluated to determine whether it qualifies as a separate unit of accounting.  This determination is based on whether the deliverable has “stand-alone value” to the customer.  The consideration that is fixed or determinable is then allocated to each separate unit of accounting based on the relative selling price of each deliverable.  The estimated selling price of each deliverable is determined using the following hierarchy of values: (i) vendor-specific objective evidence of fair value, (ii) third-party evidence of selling price (TPE) and (iii) best estimate of selling price (BESP).  The BESP reflects the best estimate of what the selling price would be if the deliverable was regularly sold by us on a stand-alone basis.  In most cases we expect to use TPE or BESP for allocating consideration to each deliverable.  The consideration allocated to each unit of accounting is recognized as the related goods or services are delivered, limited to the consideration that is not contingent upon future deliverables. Analyzing the arrangement to identify deliverables requires the use of judgment, and each deliverable may be an obligation to deliver services, a right or license to use an asset, or another performance obligation.
	The Company recognizes revenue from milestone payments when earned, provided that (i) the milestone event is substantive in that it can only be achieved based in whole or in part on either the entity's performance or on the occurrence of a specific outcome resulting from the entity's performance and its achievability was not reasonably assured at the inception of the collaboration arrangement and (ii) the Company does not have ongoing performance obligations related to the achievement of the milestone earned and (iii) it would result in additional payments being due to the Company.  Milestone payments are considered substantive if all of the following conditions are met: the milestone payment is non-refundable; achievement of the milestone was not reasonably assured at the inception of the arrangement; substantive effort is involved to achieve the milestone; and the amount of the milestone appears reasonable in relation to the effort expended, the other milestones in the arrangement and the related risk associated with the achievement of the milestone. Any amounts received under the promotion arrangement in advance of performance, if deemed substantive, are recorded as deferred revenue and recognized as revenue as the Company completes its performance obligations.
	Manufacturing revenue is recognized when the finished product is shipped to the customer.
	The following table sets forth a summary of Pernix’s consolidated net revenues for the three and six months ended June 30, 2014 and 2013.
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2014			2013			2014			2013
	Gross product sales	$	36,774,318		$	35,423,638		$	77,346,100		$	74,007,616
	Sales allowances		(20,259,846	)		(16,493,215	)		(43,301,030	)		(35,166,458	)
	Net product sales		16,514,472			18,930,423			34,045,070			38,841,158
	Manufacturing revenue		154,069		551,348				1,025,284		1,735,378
	Co-promotion and other revenue		713,443			1,091,630			1,363,182			2,074,738
	Net revenues	$	17,381,984		$	20,573,401		$	36,433,536		$	42,651,274
	The Company’s customers 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 six months ended June 30, 2014 and 2013, or 10% of total accounts receivable as of June 30, 2014 and December 31, 2013.
		Gross Product Sales
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2014			2013			2014			2013
	Cardinal Health, Inc.		21	%		28	%		19	%		29	%
	McKesson Corporation		40	%		37	%		38	%		36	%
	AmerisourceBergen Drug Corporation (1)		25	%		11	%		30	%		13	%
	Total		86	%		76	%		87	%		78	%
	(1) The gross sales shifted between Cardinal and AmerisourceBergen due to the fact that AmerisourceBergen entered into a strategic, long-term relationship with Walgreens in March 2013 which includes a ten-year comprehensive primary pharmaceutical distribution contract with Walgreens among other things.  Previously, Cardinal was the primary distributor for Walgreens.
		Accounts Receivable
		June 30,			December 31,
		2014			2013
	Cardinal Health, Inc.		24	%		16	%
	McKesson Corporation		33	%		35	%
	AmerisourceBergen Drug Corporation		22	%		23	%
	Total		79	%		74	%
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 or donations 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.
	In connection with the acquisitions of Cypress and Somaxon, the Company adjusted the predecessor cost basis, increasing inventory to fair value as required by ASC 820, Fair Value Measurements and Disclosures.  As a result, the Company recorded adjustments to increase the inventory to fair value in the amount of $8,600,000 and $695,000 at the time of acquisition for Cypress and Somaxon, respectively.  For the three months ended June 30, 2014 and 2013, approximately $774,300 and $895,400 of the increase in the basis of the inventory was amortized and included in cost of product sales, as the inventory was subsequently sold.  For the six months ended June 30, 2014 and 2013, approximately $2,396,500 and $4,710,700 of the increase in the basis of the inventory was amortized and included in cost of product sales, as the inventory was subsequently sold. The balance remaining of the increase in the basis of the inventory acquired is approximately $317,900 as of June 30, 2014.
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. The Company is required to estimate 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 on launch return percentages for sales of new products. 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 adjusted as sales history and returns experience is accumulated on this portfolio of products. The Company reviews and adjusts these reserves quarterly.
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 coupons, customer rebates, service fees, chargebacks, shelf stock adjustments, 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 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 and utilization information provided by a third party claims processing organization. The Company accounts for the costs of these special promotional programs as price adjustments, resulting in a reduction in gross revenue.
	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	'
	Discounts. The Company typically requires its customers to remit payments within the first 30 days for branded products (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%, but may be higher in some instances due to product launches and/or industry expectations. Because the Company’s wholesale distributors typically take advantage of the prompt pay discount, the Company accrues 100% of the prompt pay discounts, based on the gross amount of each invoice, at the time of our original sale, and apply earned discounts at the time of payment. This allowance is recorded as a reduction of accounts receivable and revenue. The Company adjusts the accrual periodically to reflect actual experience. Historically, these adjustments have not been material. The Company does not anticipate that future changes to its estimates of prompt payment discounts will have a material impact on our net revenue.
Research and Development Costs	'
	Research and development costs in connection with the Company’s internal programs for the development of products are expensed as incurred. Pernix either expenses research and development costs as incurred or will advance third parties a research and development fee which is amortized over the term of the related agreement. Research and development expenses were approximately $345,600 and $1,314,400 for the three and six months ended June 30, 2014, respectively. Research and development expenses were approximately $1,792,400 and $2,999,500 for the three and six months ended June 30, 2013, respectively.
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 customer, distribution methods and regulatory environment. The Company had a manufacturing subsidiary (PML) until April 21, 2014, when it was sold (see Note 9, Disposal of PML), but the majority of its revenue is generated through intercompany sales and is eliminated in consolidation. It is deemed immaterial for segment reporting purposes.
Income Taxes	'
	Deferred taxes are recognized for the tax consequences of “temporary differences” by applying enacted statutory tax rates applicable to future years to the difference between the financial statement carrying amounts and the tax basis of existing assets and liabilities. The effect on deferred taxes for a change in tax rates is recognized in income in the period that includes the enactment date. Pernix will recognize future tax benefits to the extent that realization of such benefits is more likely than not. Management has evaluated the potential impact in accounting for uncertainties in income taxes and has determined that it has no significant uncertain income tax positions as of June 30, 2014. Income tax returns subject to review by taxing authorities include 2010, 2011, 2012 and 2013.
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 common stock equivalents (i.e. restricted stock, stock options, warrants and convertible notes). Dilutive common share equivalents consist of the incremental common shares issuable upon exercise of stock options.
	The following table sets forth the computation of basic and diluted net loss per share:
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2014			2013			2014			2013
	Numerator:
	Net loss	$	(6,233,185	)	$	(5,676,820	)	$	(15,775,572	)	$	(13,587,748
	Denominator:
	Weighted-average common shares, basic		37,828,218			37,114,717			37,551,144			35,738,469
	Dilutive effect of stock options	─			─			─				─
	Weighted-average common shares, diluted		37,828,218			37,114,717			37,551,144			35,738,469
	Net loss per share, basic and diluted	$	(0.16	)	$	(0.15	)	$	(0.42	)	$	(0.38	)
	As of June 30, 2014, total outstanding options are 3,906,552 and total nonvested restricted stock are 217,799. Options and nonvested restricted stock are not included above as their effect is anti-dilutive. See Note 15, Employee Compensation and Benefits, for information regarding the Company’s outstanding options.
	As of June 30, 2014, total outstanding warrants are 469,491issued in connection with the acquisition of Somaxon. Warrants are not included above as their effect is anti-dilutive.
	As discussed in Note 13, in February 2014, the Company issued $65 million aggregate principal amount of 8.00% Convertible Senior Notes due 2019 (the “February 2014 Notes”) pursuant to Rule Regulation D and Section 4(2) under the Securities Act. Upon any conversion the February 2014 Notes may be settled in shares of the Company’s common stock. For purposes of calculating the maximum dilutive impact, it is presumed that the February 2014 Notes will be settled in common stock with the resulting potential common shares included in diluted earnings per share if the effect is more dilutive. The effect of the conversion of the February 2014 Notes is excluded from the calculation of diluted loss per share because the net loss for the quarter ended June 30, 2014 causes such securities to be anti-dilutive. The potential dilutive effect of these securities is shown in the chart below:
		June 30,
	(in thousands)	2014			2013
	Conversion of the February 2014 Notes		18,056			−
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 loss are recorded in the condensed consolidated statements of comprehensive loss, net of the related income tax effect. The Company liquidated its investments in marketable equity securities in June 2013 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.  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.
Impairment of Long-lived Assets	'
	The Company reviews long-lived assets, such as property and equipment, and purchased intangible assets subject to amortization for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. If any long-lived assets are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair value. In connection with the sale of PML, the Company recorded an impairment charge of approximately $6,456,000 against the net assets of PML for the six months ended June 30, 2014.  See Note 9,Disposal of PML, for additional information.
Recent Accounting Pronouncements	'
	In April 2014, the Financial Accounting Standards Board issued Accounting Standards Update, or ASU, 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360) which changes the requirements for reporting discontinued operations. ASU 2014-08 changes the threshold for disclosing discontinued operations and the related disclosure requirements. Pursuant to ASU 2014-08, only disposals representing a strategic shift, such as a major line of business, a major geographical area or majority equity investment, should be presented as a discontinued operation. If the disposal does qualify as a discontinued operation under ASU 2014-08, the entity will be required to provide expanded disclosures. The guidance will be applied prospectively to new disposals and new classifications of disposal groups held for sale after the effective date. ASU 2014-08 is effective for annual periods beginning on or after December 15, 2014 with early adoption permitted but only for disposals or classifications as held for sale which have not been reported in financial statements previously issued or available for issuance. We adopted ASU 2014-08 as of January 1, 2014. We believe our sale of PML does not qualify as discontinued operations upon our adoption of ASU 2014-08 as the Company’s manufacturing facility was not a major line of business and was not a significant component of the Company’s financial results during our period of ownership, July 1, 2012 through April 21, 2014.See Note 9, Disposal of PML, for additional information.
	In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update, or ASU, 2014-09, Revenue from Contracts with Customers. ASU 2014-09 will eliminate transaction- and industry-specific revenue recognition guidance under current GAAP and replace it with a principle-based approach for determining revenue recognition. ASU 2014-09 will require that companies recognizerevenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure aboutthe nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments andchanges in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for annual reportingperiods beginning after December 15, 2016. Early application is not permitted. Entities can transition to the standard either retrospectively or asa cumulative-effect adjustment as of the date of adoption. Presently, we are assessing what effect the adoption of ASU 2014-09 will have onour consolidated financial statements and accompanying notes.
	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, 2013.

2_Basis_of_Presentation_and_Su2

2. Basis of Presentation and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2014
Accounting Policies [Abstract]	'
Summary of Pernix's consolidated net revenues	'
	The following table sets forth a summary of Pernix’s consolidated net revenues for the three and six months ended June 30, 2014 and 2013
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2014			2013			2014			2013
	Gross product sales	$	36,774,318		$	35,423,638		$	77,346,100		$	74,007,616
	Sales allowances		(20,259,846	)		(16,493,215	)		(43,301,030	)		(35,166,458	)
	Net product sales		16,514,472			18,930,423			34,045,070			38,841,158
	Manufacturing revenue		154,069		551,348				1,025,284		1,735,378
	Co-promotion and other revenue		713,443			1,091,630			1,363,182			2,074,738
	Net revenues	$	17,381,984		$	20,573,401		$	36,433,536		$	42,651,274
Major Customer's revenue	'
	The following tables list the Company’s customers that individually comprised greater than 10% of total gross product sales for the three and six months ended June 30, 2014 and 2013, or 10% of total accounts receivable as of June 30, 2014 and December 31, 2013.
		Gross Product Sales
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2014			2013			2014			2013
	Cardinal Health, Inc.		21	%		28	%		19	%		29	%
	McKesson Corporation		40	%		37	%		38	%		36	%
	AmerisourceBergen Drug Corporation (1)		25	%		11	%		30	%		13	%
	Total		86	%		76	%		87	%		78	%
		Accounts Receivable
		June 30,			December 31,
		2014			2013
	Cardinal Health, Inc.		24	%		16	%
	McKesson Corporation		33	%		35	%
	AmerisourceBergen Drug Corporation		22	%		23	%
	Total		79	%		74	%
Receivables from major customer	'
		Accounts Receivable
		June 30,			December 31,
		2014			2013
	Cardinal Health, Inc.		24	%		16	%
	McKesson Corporation		33	%		35	%
	AmerisourceBergen Drug Corporation		22	%		23	%
	Total		79	%		74	%
Earnings per Share	'
	The following table sets forth the computation of basic and diluted net loss per share:
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2014			2013			2014			2013
	Numerator:
	Net loss	$	(6,233,185	)	$	(5,676,820	)	$	(15,775,572	)	$	(13,587,748
	Denominator:
	Weighted-average common shares, basic		37,828,218			37,114,717			37,551,144			35,738,469
	Dilutive effect of stock options	─			─			─				─
	Weighted-average common shares, diluted		37,828,218			37,114,717			37,551,144			35,738,469
	Net loss per share, basic and diluted	$	(0.16	)	$	(0.15	)	$	(0.42	)	$	(0.38	)
Conversion of notes	'
	The effect of the conversion of the Notes is excluded from the calculation of diluted loss per share because the net loss for the quarter ended June 30, 2014 causes such securities to be anti-dilutive. The potential dilutive effect of these securities is shown in the chart below:
		June 30,
	(in thousands)	2014			2013
	Conversion of the February 2014 Notes		18,056			−

3_Fair_Value_Measurement_Table

3. Fair Value Measurement (Tables)	6 Months Ended
	Jun. 30, 2014
Fair Value Disclosures [Abstract]	'
Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring and nonrecurring basis	'
	The following tables summarize the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2014 and December 31, 2013 (in thousands):
		30-Jun-14
		Level 1		Level 2		Level 3		Total
	Assets
	Money market fund and trust cash sweep investments (1)	$	56,530	$	—	$	—		56,530
	Total Assets	$	56,530	$	—	$	—		56,530
		31-Dec-13
		Level 1		Level 2		Level 3		Total
	Assets
	Money market fund and trust cash sweep investments (1)	$	6,312	$	—	$	—		6,312
	Total Assets	$	6,312	$	—	$	—		6,312
	Liabilities
	Contingent consideration (2)	$	—	$	—	$	1,330	$	1,330
	Total Liabilities	$	—	$	—	$	1,330	$	1,330

4_Accounts_Receivables_Tables

4. Accounts Receivables (Tables)	6 Months Ended
	Jun. 30, 2014
Receivables [Abstract]	'
Accounts receivable	'
	Accounts receivable consist of the following:
		June 30,			December 31,
		2014			2013
	Trade accounts receivable	$	22,551,757		$	25,585,112
	Less allowance for prompt pay discounts		(502,155	)		(531,722	)
	Less allowance for doubtful accounts		(58,491	)		(84,328	)
	Total trade receivables		21,991,111			24,969,062
	Other miscellaneous receivables		44,441			57,475
	Receivables from third parties – revenue sharing arrangements		733,816			654,834
	Total accounts receivable	$	22,769,368		$	25,681,371

6_Inventories_Tables

6. Inventories (Tables)	6 Months Ended
	Jun. 30, 2014
Inventory Disclosure [Abstract]	'
Schedule of Inventory	'
	Inventories consist of the following:
		June 30,			December 31,
		2014			2013
	Raw materials	$	440,483		$	1,459,742
	Packaging materials		85,452			841,492
	Samples		537,153			731,677
	Finished goods		15,285,079			13,411,007
	Inventory, gross		16,348,167			16,443,918
	Reserve for obsolescence		(3,802,351	)		(2,633,989	)
	Inventory, net	$	12,545,816		$	13,809,929

7_Prepaid_Expenses_and_Other_C1

7. Prepaid Expenses and Other Current Assets (Tables)	6 Months Ended
	Jun. 30, 2014
Prepaid Expenses And Other Current Assets Tables	'
Prepaid Expenses and Other Current Assets	'
	Prepaid expenses and other current assets consist of the following:
		June 30,		December 31,
		2014		2013
	Prepaid expenses	$	4,069,166	$	4,123,087
	Deposits on inventory		362,258		235,956
	Prepaid contracts		─		65,733
	Capitalized financing costs		1,821,461		786,662
	Deposits under leases and contracts		282,938		227,154
	Deferred expenses		─		439,700
	Total	$	6,535,823	$	5,878,292

8_Property_Plant_and_Equipment1

8. Property, Plant, and Equipment (Tables)	6 Months Ended
	Jun. 30, 2014
Property, Plant and Equipment [Abstract]	'
Schedule of Property, Plant, and Equipment	'
	Property, plant and equipment (“PP&E”) consist of the following:
		June 30,			December 31,
		2014			2013
	Land	$	572,342		$	1,356,042
	Buildings and improvements		4,748			3,986,126
	Vehicles		—			15,000
	Equipment		583,054			2,343,601
	Furniture and fixtures		226,487			189,034
	Computer software and website		91,700			93,900
	Total carrying value of PP&E, gross		1,478,331			7,983,703
	Less accumulated depreciation		(371,046	)		(1,111,661	)
	Total PP&E, net	$	1,107,285		$	6,872,042

10_Intangible_Assets_and_Goodw1

10. Intangible Assets and Goodwill (Tables)	6 Months Ended
	Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]	'
Intangible assets	'
	Intangible assets consist of the following:
		Weighted Average Life		June 30,				December 31,
				2014				2013
	Patents	11 years		$	500,000			$	500,000
	Brand	8 years			3,887,000				3,887,000
	Product licenses	11.5 years			17,581,285				15,963,794
	Customer relationships	—			—				1,848,000
	Non-compete and supplier contract	5.3 years			5,194,571				5,194,571
	Trademark rights	Indefinite			399,805				399,805
	In-process research and development	Indefinite			25,300,000				25,300,000
	Developed technology	9.6 years			40,000,000				40,000,000
	Intangible assets, cost basis				92,862,661				93,093,170
	Accumulated amortization				(16,482,237	)			(13,070,887	)
	Intangible Assets, net			$	76,380,424			$	80,022,283
	Accumulated amortization:		June 30,				December 31,
			2014				2013
	Patents		$	(332,225	)		$	(305,625	)
	Brand			(2,064,978	)			(1,822,038	)
	Product licenses			(3,216,173	)			(2,382,518	)
	Customer relationships			—				(462,204	)
	Non-compete and supplier contract			(3,835,571	)			(3,609,071	)
	Developed technology			(7,033,290	)			-4,489,431
	Total accumulated amortization		$	(16,482,237	)		$	(13,070,887	)
Intangible Assets Estimated Amortization Expenses	'
	Estimated amortization expense related to intangible assets with definite lives for each of the five succeeding years and thereafter is as follows:
			Amount
	2014 (July – December)		$	3,813,930
	2015			7,619,917
	2016			7,619,917
	2017			5,726,748
	2018			4,689,591
	Thereafter			21,210,516
	Total		$	50,680,619
Changes in the carrying amount of goodwill	'
	Changes in the carrying amount of goodwill for the six months ended June 30, 2014 are as follows:
			June 30,
			2014
	Beginning Balance		$	42,496,592
	Goodwill impairment – PML (see Note 9)		(915,575		)
	Total		$	41,581,017

11_Accrued_Allowances_Tables

11. Accrued Allowances (Tables)	6 Months Ended
	Jun. 30, 2014
Accrued Liabilities [Abstract]	'
Accrued allowances	'
	Accrued allowances consist of the following:
		June 30,		December 31,
		2014		2013
	Accrued returns allowance	$	8,819,000	$	12,049,040
	Accrued price adjustments		21,005,935		18,300,788
	Accrued government program rebates		5,032,401		3,935,750
	Total	$	34,857,336	$	34,285,578

12_Other_Liabilities_Tables

12. Other Liabilities (Tables)	6 Months Ended
	Jun. 30, 2014
Other Liabilities [Abstract]	'
Other Liabilities	'
	Other liabilities consist of the following:
		June 30,		December 31,
		2014		2013
	Product license contracts (see Note 10)	$	1,000,000	$	─
	Settlement obligations (see Note 17)		10,752,000	14,115,000
	Deferred revenue		4,099,433		4,279,350
	Other		─	66,349
	Total contracts payable and other obligations	$	15,851,433	$	18,460,699
	Other liabilities – current	$	4,363,751	$	4,072,933
	Other liabilities – long term	$	11,487,682	$	14,387,766

13_Debt_Tables

13. Debt (Tables)	6 Months Ended
	Jun. 30, 2014
Debt Disclosure [Abstract]	'
Debt consists	'
	Debt consists of the following:
		June 30,		December 31,
		2014		2013
	Amounts outstanding under the Midcap Credit Facility	$	13,128,848	$	16,859,891
	Stancorp mortgage		─		1,449,563
	Convertible senior notes  (the “February 2014 Notes”)		65,000,000		─
	Total debt	$	78,128,848	$	18,309,454
	Debt – current	$	13,128,848	$	16,999,687
	Debt – long term	$	65,000,000	$	1,309,767

15_Employee_Compensation_and_B1

15. Employee Compensation and Benefits (Tables)	6 Months Ended
	Jun. 30, 2014
Employee Benefits and Share-based Compensation [Abstract]	'
Weighted average assumptions used to value stock options	'
	The following table shows the weighted average of the assumptions used to value stock options on the date of grant, as follows:
		Six Months
		Ended
		June 30,
		2014
	Weighted average expected stock price volatility		74.5	%
	Estimated dividend yield		0	%
	Risk-free interest rate		1.9	%
	Expected life of option (in years)		6.2
	Weighted average fair value per share	$	2.74
Stock Option Activity	'
	The following table shows the option activity, described above, during the six months ended June 30, 2014:
	Option Shares	Shares			Average
					Exercise
					Price
	Outstanding at December 31, 2013		1,604,500		$	4.45
	Granted		3,456,200			4.09
	Exercised(1)		(611,815	)		3.52
	Cancelled(1)		(542,333	)		4.35
	Expired	─			─
	Outstanding at June 30, 2014		3,906,552		$	4.28
	Vested and exercisable, end of period		419,348		$	5.63
Range of exercise price	'
	The following table shows the details by range of exercise price for the total options outstanding at June 30, 2014:
			Options Outstanding				Options Exercisable
	Range of Exercise Price		Shares		Remaining Contractual Life		Shares			Price
	($)				(years)					($)
	2.09 – 3.98		2,419,852		9.2		229,852			$	3.73
	4.20 – 5.66		617,250		9.8		—				—
	6.10 – 7.11		91,583		7.5		54,495				6.1
	7.26 – 8.63		731,200		9.7		95,000				8.21
	9.02 – 10.35		46,667		7.3		40,001				9.76
			3,906,552		9.3		419,348			$	5.63
Restricted stock	'
	The following table shows the Company's nonvested restricted stock activity during the six months ended June 30, 2014:
					Weighted Average
					Grant Date
	Restricted Stock Shares	Shares			Fair Value
	Nonvested at December 31, 2013		628,854		$	5.6
	Granted		100,000			3.05
	Vested		(434,323	)		4.93
	Forfeited		(76,732	)		7.53
	Nonvested at June 30, 2014		217,799		$	5.1
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						Six Months Ended
		June 30,						June 30,
		2014			2013			2014				2013
	Employees	$	708,898		$	390,226		$	2,407,420			$	815,444
	Non-employees/Directors		31,246			89,045			111,550				209,391
	Total	$	740,144		$	479,271		$	2,518,970			$	1,024,835

16_Income_Taxes_Tables

16. Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2014
Income Tax Disclosure [Abstract]	'
Effective on income tax rate from continuing operations	'
	The effective income tax rate from continuing operations is different from the federal statutory rate for the six months ended June 30, 2014 and 2013 for the following reasons:
		Six Months Ended
		June 30,
		2014			2013
	Expected taxes at statutory rates		(35.0	)%		(35.0	)%
	State taxes, net of federal tax benefit		(2.1	)%		(1.5	)%
	Nondeductible expenses		0.2	%		1.4	%
	Put right expense		─	%	7.4		%
	Other	(1.0		)%		0.3	%
			(37.9	)%		(27.4	)%

17_Commitments_and_Contingenci1

17. Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Future minimum lease payments under non-cancelable operating leases	'
	Future minimum lease payments under non-cancelable operating leases are as follows as of June 30, 2014:
	2014 (July – December)	$	173,000
	2015		224,300
	2016		198,600
	2017		191,100
	2018		192,000
	Thereafter		277,500
	Total	$	1,256,500

2_Basis_of_Presentation_and_Su3

2. Basis of Presentation and Summary of Significant Accounting Policies (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Components of company's net revenue	'	'	'	'
Gross product sales	$36,774,318	$35,423,638	$77,346,100	$74,007,616
Sales allowances	-20,259,846	-16,493,215	-43,301,030	-35,166,458
Net product sales	16,514,472	18,930,423	34,045,070	38,841,158
Manufacturing revenue	154,069	551,348	1,025,284	1,735,378
Co-promotion and other revenue	713,443	1,091,630	1,363,182	2,074,738
Net revenues	$17,381,984	$20,573,401	$36,433,536	$42,651,274

2_Basis_of_Presentation_and_Su4

2. Basis of Presentation and Summary of Significant Accounting Policies (Details 1)	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013		Dec. 31, 2013
Company's customers that individually comprised greater than 10% of total gross product sales	'		'		'		'		'
Percentage of gross product sales	86.00%		76.00%		87.00%		78.00%		'
Percentage of accounts receivable	79.00%		'		79.00%		'		74.00%
Cardinal Health Inc	'		'		'		'		'
Company's customers that individually comprised greater than 10% of total gross product sales	'		'		'		'		'
Percentage of gross product sales	21.00%		28.00%		19.00%		29.00%		'
Percentage of accounts receivable	24.00%		'		24.00%		'		16.00%
McKesson Corporation	'		'		'		'		'
Company's customers that individually comprised greater than 10% of total gross product sales	'		'		'		'		'
Percentage of gross product sales	40.00%		37.00%		38.00%		36.00%		'
Percentage of accounts receivable	33.00%		'		33.00%		'		35.00%
Amerisource Bergen Drug Corporation	'		'		'		'		'
Company's customers that individually comprised greater than 10% of total gross product sales	'		'		'		'		'
Percentage of gross product sales	25.00%	[1]	11.00%	[1]	30.00%	[1]	13.00%	[1]	'
Percentage of accounts receivable	22.00%		'		22.00%		'		23.00%
[1]	The gross sales shifted between Cardinal and AmerisourceBergen due to the fact that AmerisourceBergen entered into a strategic, long-term relationship with Walgreens in March 2013 which includes a ten-year comprehensive primary pharmaceutical distribution contract with Walgreens among other things. Previously, Cardinal was the primary distributor for Walgreens.

2_Basis_of_Presentation_and_Su5

2. Basis of Presentation and Summary of Significant Accounting Policies (Details 2) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Numerator:	'	'	'	'
Net loss	($6,233,185)	($5,676,820)	($15,775,572)	($13,587,748)
Denominator:	'	'	'	'
Weighted-average common shares, basic	37,828,218	37,114,717	37,551,144	35,738,469
Dilutive effect of stock options	'	'	'	'
Weighted-average common shares, diluted	37,828,218	37,114,717	37,551,144	35,738,469
Net income (loss) per share, basic and diluted	($0.16)	($0.15)	($0.42)	($0.38)

2_Basis_of_Presentation_and_Su6

2. Basis of Presentation and Summary of Significant Accounting Policies (Details 3) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Accounting Policies [Abstract]	'	'
Conversion of the February 2014 Notes	$18,056	'

2_Basis_of_Presentation_and_Su7

2. Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative) (USD $)	3 Months Ended			6 Months Ended
	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Feb. 28, 2014
Amortization of the increase in the basis of the inventory	$774,300	'	$895,400	$2,396,500	$4,710,700	'
Remaining balance of the increase in the basis of the inventory	'	'	'	317,900	'	'
Number of anti dilutive options, Outstanding	'	'	'	3,906,552	'	'
Impairment of long lived asset to be disposed of	'	6,456,966	'	6,456,966	'	'
Outgoing Freight Cost	120,000	'	376,000	325,000	776,000	'
Research and development expenses	345,600	'	1,792,400	1,314,400	2,999,500	'
Convertible senior notes	'	'	'	'	'	$65,000,000
Warrant [Member]	'	'	'	'	'	'
Number of anti dilutive options, Outstanding	'	'	'	469,491	'	'

3_Fair_Value_Measurement_Detai

3. Fair Value Measurement (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Assets	'	'
Money market fund and trust cash sweep investments (1)	$56,530	$6,312
Total Assets	56,530	6,312
Liabilities	'	'
Contingent consideration(1)	'	1,330
Total Liabilities	'	1,330
Level 1 Member	'	'
Assets	'	'
Money market fund and trust cash sweep investments (1)	56,530	6,312
Total Assets	56,530	6,312
Liabilities	'	'
Contingent consideration(1)	'	'
Total Liabilities	'	'
Level 2 Member	'	'
Assets	'	'
Money market fund and trust cash sweep investments (1)	'	'
Total Assets	'	'
Liabilities	'	'
Contingent consideration(1)	'	'
Total Liabilities	'	'
Level 3 Member	'	'
Assets	'	'
Money market fund and trust cash sweep investments (1)	'	'
Total Assets	'	'
Liabilities	'	'
Contingent consideration(1)	'	1,330
Total Liabilities	'	$1,330

3_Fair_Value_Measurement_Detai1

3. Fair Value Measurement (Details Narrative) (USD $)	Jan. 31, 2014
Fair Value Disclosures [Abstract]	'
Contingent Consideration	$1,330,000

4_Accounts_Receivable_Details

4. Accounts Receivable (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Accounts receivable consist of the following	'	'
Trade accounts receivable	$22,551,757	$25,585,112
Less allowance for prompt pay discounts	-502,155	-531,722
Less allowance for doubtful accounts	-58,491	-84,328
Total trade receivables	21,991,111	24,969,062
Other miscellaneous receivables	44,441	57,475
Receivables from third parties - revenue sharing arrangements	733,816	654,834
Total accounts receivable	$22,769,368	$25,681,371

5_Notes_Receivable_Details_Nar

5. Notes Receivable (Details Narrative) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Unamortized discount on the note receivable	$248,000	$419,000
One year note	'	'
Promissory note face value	4,850,000	'
Assumed rate on note	3.10%	'
Two year note	'	'
Promissory note face value	$4,850,000	'
Assumed rate on note	4.25%	'

6_Inventories_Details

6. Inventories (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Inventory Disclosure [Abstract]	'	'
Raw materials	$440,483	$1,459,742
Packaging materials	85,452	841,492
Samples	537,153	731,677
Finished goods	15,285,079	13,411,007
Inventory gross	16,348,167	16,443,918
Reserve for obsolescence	-3,802,351	-2,633,989
Inventory, net	$12,545,816	$13,809,929

6_Inventories_Details_Narrativ

6. Inventories (Details Narrative) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Inventory Disclosure [Abstract]	'	'
Increase in raw materials	$124,000	$221,000
Increase in finished goods	$194,000	$2,714,000

7_Prepaid_Expenses_and_Other_C2

7. Prepaid Expenses and Other Current Assets (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Prepaid Expenses and Other Current Assets	'	'
Prepaid expenses	$4,069,166	$4,123,087
Deposits on inventory	362,258	235,956
Prepaid contracts	'	65,733
Capitalized financing costs	1,821,461	786,662
Deposits under leases and contracts	282,938	227,154
Deferred expenses	'	439,700
Total	$6,535,823	$5,878,292

8_Property_Plant_and_Equipment2

8. Property, Plant, and Equipment (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Property, Plant & Equipment	'	'
Land	$572,342	$1,356,042
Buildings and improvements	4,748	3,986,126
Vehicles	'	15,000
Equipment	583,054	2,343,601
Furniture and fixtures	226,487	189,034
Computer software and website	91,700	93,900
Total carrying value of PP&E, gross	1,478,331	7,983,703
Less accumulated depreciation	-371,046	-1,111,661
Total PP&E, net	$1,107,285	$6,872,042

8_Property_Plant_and_Equipment3

8. Property, Plant, and Equipment (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Property, Plant & Equipment	'	'	'	'
Depreciation Expenses	$59,000	$163,000	$209,076	$306,965

9_Disposal_of_PML_Details

9. Disposal of PML (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2014	Jun. 30, 2013
Disposal Of Pml Details	'	'	'	'
Impairment of long lived asset to be disposed of	'	$6,456,966	$6,456,966	'
Additional loss on sale of PML	$215,000	'	'	'

10_Intangible_Assets_and_Goodw2

10. Intangible Assets and Goodwill (Details) (USD $)	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Intangible assets consist of the following	'	'
Intangible assets, gross	$92,862,661	$93,093,170
Total accumulated amortization	-16,482,237	-13,070,887
Intangible assets, net	76,380,424	80,022,283
Patents Member	'	'
Intangible assets consist of the following	'	'
Life	'P11Y	'
Intangible assets, gross	500,000	500,000
Total accumulated amortization	-332,225	-305,625
Brand Member	'	'
Intangible assets consist of the following	'	'
Life	'P8Y	'
Intangible assets, gross	3,887,000	3,887,000
Total accumulated amortization	-2,064,978	-1,822,038
Product Licenses Member	'	'
Intangible assets consist of the following	'	'
Life	'P11Y6M	'
Intangible assets, gross	17,581,285	15,963,794
Total accumulated amortization	-3,216,173	-2,382,518
Customer Relationships Member	'	'
Intangible assets consist of the following	'	'
Life	'-	'
Intangible assets, gross	'	1,848,000
Total accumulated amortization	'	-462,204
Noncompete And Supplier Contracts Member	'	'
Intangible assets consist of the following	'	'
Life	'P5Y3M18D	'
Intangible assets, gross	5,194,571	5,194,571
Total accumulated amortization	-3,835,571	-3,609,071
Trademark rights Member	'	'
Intangible assets consist of the following	'	'
Life	'-	'
Intangible assets, gross	399,805	399,805
In Process Research And Development Member	'	'
Intangible assets consist of the following	'	'
Life	'-	'
Intangible assets, gross	25,300,000	25,300,000
Developed Technology Member	'	'
Intangible assets consist of the following	'	'
Life	'P9Y7M6D	'
Intangible assets, gross	40,000,000	40,000,000
Total accumulated amortization	($7,033,290)	($4,489,431)

10_Intangible_Assets_and_Goodw3

10. Intangible Assets and Goodwill (Details 1) (USD $)	Jun. 30, 2014
Estimated amortization expense related to intangible assets	'
2014 (April - December)	$3,813,930
2015	7,619,917
2016	7,619,917
2017	5,726,748
2018	4,689,591
Thereafter	21,210,516
Total	$50,680,619

10_Intangible_Assets_and_Goodw4

10. Intangible Assets and Goodwill (Details 2) (USD $)	6 Months Ended
	Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]	'
Beginning Balance	$42,496,592
Goodwill impairment - PML (see Note 9)	-915,575
Total	$41,581,017

10_Intangible_Assets_and_Goodw5

10. Intangible Assets and Goodwill (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'	'	'	'
Amortization expense	$1,910,000	$2,114,000	$3,951,000	$3,795,000

11_Accrued_Allowances_Details

11. Accrued Allowances (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Accrued Allowances Details	'	'
Accrued returns allowance	$8,819,000	$12,049,040
Accrued price adjustments	21,005,935	18,300,788
Accrued government program rebates	5,032,401	3,935,750
Total	$34,857,336	$34,285,578

12_Other_Liabilities_Details

12. Other Liabilities (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Other Liabilities [Abstract]	'	'
Product license contracts (see Note 10)	$1,000,000	'
Settlement obligations (see Note 17)	10,752,000	14,115,000
Deferred revenue	4,099,433	4,279,350
Other	'	66,349
Total contracts payable and other obligations	15,851,433	18,460,699
Other liabilities - current	4,363,751	4,072,933
Other liabilities - long term	$11,487,682	$14,387,766

13_Debt_Details

13. Debt (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Total debt	$78,128,848	$18,309,454
Debt - current	13,128,848	16,999,687
Debt - long term	65,000,000	1,309,767
Amounts outstanding under the Credit Facility - MidCap Funding V, LLC [Member]	'	'
Total debt	13,128,848	16,859,891
Stancorp Mortgage [Member]	'	'
Total debt	'	1,449,563
Convertible senior notes (the February 2014 Notes) [Member]	'	'
Total debt	$65,000,000	'

13_Debt_Details_Narrative

13. Debt (Details Narrative) (USD $)	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
Debt Disclosure [Abstract]	'	'	'
Credit Facility interest percentage	9.00%	9.00%	'
Outstanding balance under the revolver	'	'	$16,900,000
MidCap Funding term loan interest rate	'	'	'
		The loans under this facility bear continue to bear interest at a rate equal to the sum of the LIBOR rate (with a floor of 1.5%) plus an applicable margin of 7.50% per annum (9% at June 30, 2014). The expiration date of the agreement has been extended to February 21, 2017.
Interest expense related to the outstanding principal balance	1,336,000	1,878,000	'
Stated interest rate on note	8.00%	8.00%	'
Outstanding borrowings	$65,000,000	$65,000,000	'

15_Employee_Compensation_and_B2

15. Employee Compensation and Benefits (Details) (USD $)	6 Months Ended
	Jun. 30, 2014
Weighted average of the assumptions used to value stock options on the date of grant	'
Weighted average expected stock price volatility	74.50%
Estimated dividend yield	0.00%
Risk-free interest rate	1.90%
Expected life of option (in years)	'6 years 2 months 12 days
Weighted average fair value per share	$2.74

15_Employee_Compensation_and_B3

15. Employee Compensation and Benefits (Details 1) (USD $)	6 Months Ended
	Jun. 30, 2014
Shares	'
Outstanding at December 31, 2013	1,604,500
Granted	3,456,200
Exercised	-611,815
Cancelled	-542,333	[1]
Expired	'
Outstanding at June 30, 2014	3,906,552
Vested and exercisable, end of period	419,348
Average Exercise Price	'
Outstanding at December 31, 2013	$4.45
Granted	$4.09
Exercised	$3.52
Cancelled	$4.35	[1]
Expired	'
Outstanding at June 30, 2014	$4.28
Vested and exercisable, end of period	$5.63
[1]	) Includes 390,000 options granted to ParaPRO, LLC on August 3, 2011, that were to 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 which was terminated on April 30, 2014. ParaPRO exercised 70,000 vested options in June 2014. For additional information, see Note 17, Commitments and Contingencies.

15_Employee_Compensation_and_B4

15. Employee Compensation and Benefits (Details 2) (USD $)	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Options Outstanding Shares	3,906,552	1,604,500
Options Outstanding Shares Remaining Contractual Life (Years)	'9 years 3 months 18 days	'
Options Exercisable Shares	419,348	'
Options Exercisable Price	$5.63	'
Range Of Exercise Price From 2.09 to 3.98 Member	'	'
Options Outstanding Shares	2,419,852	'
Options Outstanding Shares Remaining Contractual Life (Years)	'9 years 2 months 12 days	'
Options Exercisable Shares	229,852	'
Options Exercisable Price	$3.73	'
Range of Exercise Price from 4.20 To 5.66 Member	'	'
Options Outstanding Shares	617,250	'
Options Outstanding Shares Remaining Contractual Life (Years)	'9 years 9 months 18 days	'
Options Exercisable Shares	'	'
Options Exercisable Price	'	'
Range of Exercise Price from 6.10 To 7.11 Member	'	'
Options Outstanding Shares	91,583	'
Options Outstanding Shares Remaining Contractual Life (Years)	'7 years 6 months	'
Options Exercisable Shares	54,495	'
Options Exercisable Price	$6.10	'
Range of Exercise Price from 7.26 To 8.63 Member	'	'
Options Outstanding Shares	731,200	'
Options Outstanding Shares Remaining Contractual Life (Years)	'9 years 8 months 12 days	'
Options Exercisable Shares	95,000	'
Options Exercisable Price	$8.21	'
Range of Exercise Price from 9.02 To 10.35 Member	'	'
Options Outstanding Shares	46,667	'
Options Outstanding Shares Remaining Contractual Life (Years)	'7 years 3 months 18 days	'
Options Exercisable Shares	40,001	'
Options Exercisable Price	$9.76	'

15_Employee_Compensation_and_B5

15. Employee Compensation and Benefits (Details 3) (Restricted Stock [Member], USD $)	6 Months Ended
	Jun. 30, 2014
Restricted Stock [Member]	'
Shares	'
Nonvested at December 31, 2013	628,854
Granted	100,000
Vested	-434,323
Forfeited	-76,732
Nonvested at March 31, 2014	217,799
Weighted Average Grant Date Fair Value	'
Nonvested at December 31, 2013	$5.60
Granted	$3.05
Vested	$4.93
Forfeited	$7.53
Nonvested at March 31, 2014	$5.10

15_Employee_Compensation_and_B6

15. Employee Compensation and Benefits (Details 4) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Stock Based Compensation Expense	$740,144	$479,271	$2,518,970	$1,024,835
Employees Member	'	'	'	'
Stock Based Compensation Expense	708,898	390,226	2,407,420	815,444
Non-employees/Directors Member	'	'	'	'
Stock Based Compensation Expense	$31,246	$89,045	$111,550	$209,391

14_Employee_Compensation_and_B

14. Employee Compensation and Benefits (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Contribution expense	$108,000	$118,000	$214,000	$255,000
Intrinsic value of options exercised	'	'	1,424,000	132,000
Weighted-average grant date fair value for options granted	'	'	$2.74	$4.64
Aggregate intrinsic value of options outstanding	419,348	'	419,348	'
Aggregate intrinsic value of options exercisable	1,437,000	'	1,437,000	'
Compensation expense related to employee stock purchase plan	34,000	24,000	40,000	35,000
Unrecognized Compensation Cost, employees	6,732,000	'	6,732,000	'
Weighted-average period for recognition of compensation cost	'	'	'3 years 9 months 18 days	'
Restricted Stock [Member]	'	'	'	'
Unrecognized Compensation Cost, employees	$787,000	'	$787,000	'
Weighted-average period for recognition of compensation cost	'	'	'1 year 7 months 6 days	'

16_Income_Taxes_Details

16. Income Taxes (Details)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Effective income tax rate from continuing operations	'	'
Expected taxes at statutory rates	-35.00%	-35.00%
State taxes, net of federal tax benefit	-2.10%	1.50%
Nondeductible expenses	0.20%	1.40%
Put right expense	'	7.40%
Other	-1.00%	0.30%
Total	-37.90%	27.40%

17_Commitments_and_Contingenci2

17. Commitments and Contingencies (Details) (USD $)	Jun. 30, 2014
Commitments and Contingencies Disclosure [Abstract]	'
2014 (July - December)	$173,000
2015	224,300
2016	198,600
2017	191,100
2018	192,000
Thereafter	277,500
Total	$1,256,500

17_Commitments_and_Contingenci3

17. Commitments and Contingencies (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Mar. 31, 2014	Dec. 31, 2013
Amount agreed to pay to State of Texas	'	'	'	'	'	$12,000,000
Initial payment made for the settlement	'	'	'	'	2,000,000	'
Rent Expense	166,000	213,000	331,000	384,000	'	'
Co-promotion and other revenue sharing arrangements	2,195,000	1,809,000	4,074,000	3,154,000	'	'
Settlement of patent litigation claims	$2,750,000	'	$2,750,000	'	'	'