Neos Therapeutics (NEOS) 10-Q 4 Sep 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Sep. 01, 2015
Document and Entity Information
Entity Registrant Name	Neos Therapeutics, Inc.
Entity Central Index Key	1,467,652
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	No
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		15,836,285
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 25,631	$ 13,343
Short term investments		3,000
Accounts receivable, net of allowance of $2,579 and $204, respectively	2,096	367
Inventories	1,703	2,031
Other current assets	235	264
Total current assets	29,665	19,005
Property and equipment, net	5,334	5,831
Intangible assets, net	17,420	18,167
Other assets	3,471	2,227
Total assets	55,890	45,230
Current Liabilities:
Accounts payable	1,333	1,257
Accrued expenses	2,430	2,715
Less current portion	3,257	1,653
Total current liabilities	7,020	5,625
Long-Term Liabilities:
Long-term debt, net of current portion	31,198	23,121
Earnout liability	356	756
Deferred gain on leaseback	967	1,383
Deferred rent	1,172	1,189
Warrant liabilities	3,934	1,789
Total long-term liabilities	37,627	28,238
Redeemable Preferred Stock
Redeemable preferred stock	104,249	90,149
Stockholders' Deficit:
Common stock, $0.001 par value, 35,000,000 authorized; 887,414 issued and outstanding as of June 30, 2015 and 938,859 and 882,954 issued and outstanding at December 31, 2014, respectively	1	1
Additional paid-in capital	5,069	4,831
Accumulated deficit	(98,076)	(83,614)
Total stockholders' deficit	(93,006)	(78,782)
Total liabilities, redeemable preferred stock and stockholders' deficit	55,890	45,230
Series A preferred stock
Redeemable Preferred Stock
Redeemable preferred stock	1,068	1,068
Series B preferred stock
Redeemable Preferred Stock
Redeemable preferred stock	14,730	14,559
Series B-1 preferred stock
Redeemable Preferred Stock
Redeemable preferred stock	33,803	32,391
Series C preferred stock
Redeemable Preferred Stock
Redeemable preferred stock	$ 54,648	$ 42,131

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Receivables allowance (in dollars)	$ 2,579	$ 204
Redeemable preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized shares	35,000,000	35,000,000
Common stock, issued shares	887,414	938,859
Common stock, outstanding shares	887,414	882,954
Series A preferred stock
Redeemable preferred stock, authorized shares	1,170,000	1,170,000
Redeemable preferred stock, issued shares	1,170,000	1,170,000
Redeemable preferred stock, outstanding shares	1,170,000	1,170,000
Redeemable preferred stock, liquidation preference (in dollars)	$ 5,850	$ 5,850
Series B preferred stock
Redeemable preferred stock, authorized shares	4,000,000	4,000,000
Redeemable preferred stock, issued shares	3,113,099	3,113,099
Redeemable preferred stock, outstanding shares	3,113,099	3,113,099
Redeemable preferred stock, liquidation preference (in dollars)	$ 15,565	$ 15,565
Series B-1 preferred stock
Redeemable preferred stock, authorized shares	8,830,000	8,830,000
Redeemable preferred stock, issued shares	5,461,802	5,461,802
Redeemable preferred stock, outstanding shares	5,461,802	5,461,802
Redeemable preferred stock, liquidation preference (in dollars)	$ 62,731	$ 61,647
Series C preferred stock
Redeemable preferred stock, authorized shares	13,500,000	13,500,000
Redeemable preferred stock, issued shares	11,528,483	8,753,547
Redeemable preferred stock, outstanding shares	11,528,483	8,753,547
Redeemable preferred stock, liquidation preference (in dollars)	$ 57,642	$ 43,768

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Product	$ 1,484		$ 1,912
Manufacturing		$ 0		$ 113
Development		25		93
Profit Sharing		30		141
Total revenue:	1,484	55	1,912	347
Cost of Good Sold	1,659	638	2,754	1,443
Gross loss	(175)	(583)	(842)	(1,096)
Operating Expenses
Research and development	2,102	3,183	6,422	5,468
Selling and marketing Expenses	602	8	928	11
General and administrative Expenses	1,659	1,404	2,996	2,951
Loss from operations	(4,538)	(5,178)	(11,188)	(9,526)
Interest expense, net	(884)	(618)	(1,641)	(1,637)
Other income, net	208	208	415	410
Change in fair value of earnout and warrant liabilities	(539)		105
Net loss	(5,753)	(5,588)	(12,309)	(10,753)
Net loss
Net loss	(5,753)	(5,588)	(12,309)	(10,753)
Preferred stock accretion to redemption value	(586)	(265)	(1,070)	(582)
Preferred stock dividends	(544)	(544)	(1,083)	(1,083)
Net loss attributable to common stock	$ (6,883)	$ (6,397)	$ (14,462)	$ (12,418)
Weighted average common shares outstanding
Weighted average common shares outstanding used to compute net loss per share, basic and diluted	887,397	873,060	886,323	872,176
Net loss per share
Net loss per share attributable to common stock, basic and diluted	$ (7.76)	$ (7.33)	$ (16.32)	$ (14.24)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS DEFICIT - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands	Common Stock	Treasury Stock.	Additional Paid-in Capital	Accumulated DeficitSeries B preferred stock	Accumulated DeficitSeries B-1 preferred stock	Accumulated DeficitSeries C preferred stock	Accumulated Deficit	Series B preferred stock	Series B-1 preferred stock	Series C preferred stock	Total
Balance, beginning at Dec. 31, 2014	$ 1		$ 4,831				$ (83,614)				$ (78,782)
Balance, beginning (in shares) at Dec. 31, 2014	938,859	(55,905)
Increase (Decrease) in Stockholders Equity
Proceeds from exercise of options and warrants			4								4
Exercise of options and warrants (in shares)	4,460
Share-based compensation expense			234								234
Cancellation of treasury stock	(55,905)	55,905
Preferred Stock accretion to redemption value				$ (171)	$ (329)	$ (570)		$ (171)	$ (329)	$ (570)
Accrued dividend					$ (1,083)				$ (1,083)
Net loss							(12,309)				(12,309)
Balance, ending at Jun. 30, 2015	$ 1		$ 5,069				$ (98,076)				$ (93,006)
Balance, ending (in shares) at Jun. 30, 2015	887,414

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows From Operating Activities:
Net loss	$ (12,309,000)	$ (10,753,000)
Adjustments to reconcile net loss to net cash used operating activities:
Depreciation and amortization of property and equipment	843,000	814,000
Amortization of intangible assets	747,000	404,000
Changes in fair value of warrant and earnout liabilities	(105,000)
Amortization of patents	12,000	0
Amortization and write-off of senior debt fees	280,000	436,000
Gain on sale of equipment	(416,000)	(408,000)
Provision for bad debts		(49,000)
Share-based compensation expense	234,000	77,000
Interest accrued on note payable	198,000	305,000
Change in deferred rent	(17,000)	58,000
Changes in operating assets and liabilities:
Accounts receivable	(1,729,000)	(53,000)
Inventories	328,000	134,000
Other current assets	29,000	(79,000)
Other assets	(124,000)	(80,000)
Accounts payable	(211,000)	5,000
Accrued expenses	(556,000)	182,000
Net cash used in operating activities	(12,796,000)	(9,007,000)
Cash Flows From Investing Activities:
Net proceeds from sale (purchase) of short-term investments	3,000,000	(7,000,000)
Capital expenditures	(346,000)	(72,000)
Net cash provided by (used in) investing activities	2,654,000	(7,072,000)
Cash Flows from Financing Activities:
Proceeds from senior debt note	10,000,000	10,000,000
Proceeds from sale of equipment		795,000
Net proceeds from issuance of stock	13,801,000	9,905,000
Payments made on borrowings	(797,000)	(10,930,000)
Payments of initial public offering costs	(574,000)
Deferred financing costs		(398,000)
Net cash provided by financing activities	22,430,000	9,372,000
Increase (decrease) in cash and cash equivalents	12,288,000	(6,707,000)
Cash and Cash Equivalents:
Beginning	13,343,000	11,947,000
Ending	25,631,000	5,240,000
Noncash Investing and Financing Activities
Initial public offering costs included in account payable and accrued expenses	558,000
Issuance of stock warrants	2,131,000
Preferred Stock Dividend	1,083,000	1,083,000
Supplemental Cash Flow Information:
Interest paid	$ 1,106,000	$ 907,000

Basis of presentation

Basis of presentation	6 Months Ended
	Jun. 30, 2015
Basis of presentation
Basis of presentation	Note 1. Basis of presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for reporting on Form 10-Q and Article 10 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and footnotes necessary for a complete presentation of financial position, results of operations, and cash flows. In the opinion of management, all adjustments (consisting of normal, recurring adjustments) necessary for a fair presentation of results of operations for and financial condition as of the end of the interim period have been included. Results of operations for the three and six months ended June 30, 2015 are not necessarily indicative of the results for the year ending December 31, 2015 or any period thereafter. The audited consolidated financial statements as of and for the year ended December 31, 2014 included information and footnotes necessary for such presentation and were included in the Neos Therapeutics, Inc. final prospectus dated as of July 22, 2015 and filed with the SEC, on July 24, 2015 (“Final Prospectus”). These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2014.

Organization and nature of oper

Organization and nature of operations	6 Months Ended
	Jun. 30, 2015
Organization and nature of operations
Organization and nature of operations	Note 2. Organization and nature of operations Neos Therapeutics, Inc., a Delaware corporation, and its subsidiaries (the “Company”) is a fully integrated pharmaceutical company. The Company has developed a broad, proprietary modified-release drug delivery technology that enables the manufacture of single and multiple ingredient extended-release pharmaceuticals in patient- and caregiver-friendly orally disintegrating tablet and liquid suspension dosage forms. The Company has a pipeline of extended-release pharmaceuticals including three proprietary drug candidates for the treatment of attention deficit hyperactivity disorder (“ADHD”) which are in late-stage development and/or regulatory review. In addition, the Company manufactures and markets a generic Tussionex (hydrocodone and chlorpheniramine) (“generic Tussionex”) extended-release liquid suspension for the treatment of cough and upper respiratory symptoms of a cold. These products are developed and manufactured using the Company’s proprietary and patented modified-release drug delivery technology. The Company’s predecessor company was incorporated in Texas on November 30, 1994 as PharmaFab, Inc. and subsequently changed its name to Neostx, Inc. On June 15, 2009, the Company completed a reorganization pursuant to which substantially all of the capital stock of Neostx, Inc. was acquired by a newly formed Delaware corporation, named Neos Therapeutics, Inc. The remaining capital stock of Neostx, Inc. was acquired by the Company on June 29, 2015. Historically, the Company was primarily engaged in the development and contract manufacturing of unapproved or Drug Efficacy Study Indication, or DESI, pharmaceuticals and, to a lesser extent, nutraceuticals for third parties. The unapproved or DESI pharmaceuticals contract business was discontinued in 2007 and the manufacturing of nutraceuticals for third parties was discontinued in March 2013. On August 28, 2014, the Company completed an acquisition of all of the rights to the Tussionex Abbreviated New Drug Application (“Tussionex ANDA”), which included the rights to produce, develop, market and sell, as well as all the profits from such selling activities, the Company’s generic Tussionex, which the Company previously owned the rights to manufacture, but which was marketed and sold by the generic drug division of Cornerstone Biopharma, Inc. (“Cornerstone”). These rights were acquired from the collaboration of the Company, Cornerstone and Coating Place, Inc. (“CPI”), a supplier of the resins for the product (see Note 8). Prior to the acquisition, the Company, Cornerstone and CPI shared profits generated by the sale and manufacture of the product under a development and manufacturing agreement with those companies. On July 28, 2015, the Company closed its initial public offering (“IPO”) whereby the Company sold 5,520,000 shares of common stock, at a public offering price of $15.00 per share, which includes 720,000 shares of common stock resulting from the underwriters’ exercise of their over-allotment option at the IPO price on July 23, 2015. Proceeds from the Company’s IPO, net of underwriting discounts and commissions and other offering costs, were $75.0 million. In connection with the IPO, the Company’s Board of Directors approved a one-for-2.4 reverse stock split of the Company’s common stock (that resulted in a proportional adjustment to the conversion ratios of the preferred stock and the preferred stock warrants). All references to common stock and per share amounts in these condensed financial statements and accompanying footnotes have been retroactively adjusted for all periods presented to give effect to this reverse stock split. Between June 30, 2015 and July 27, 2015, the Company issued a total of 1,000,000 shares of their Series C preferred stock to several existing investors upon the exercise of Series C warrants held by those investors at an exercise price of $5.00 per share, for an aggregate exercise price of $5.0 million. On the IPO closing date, all outstanding shares of redeemable preferred stock converted into 9,217,983 shares of common stock and all remaining outstanding Series C warrants issued in conjunction with purchases of Series C preferred stock were net exercised at the IPO price for 78,926 shares of common stock. Upon the closing of the Company’s IPO, all of the shares of the Company’s preferred stock (“Preferred Shares”) were retired and cancelled and shall not be reissued as shares of such series, and all rights and preferences of those Preferred Shares were cancelled including the right to receive undeclared accumulated dividends. These transactions produced a significant increase in the number of shares outstanding which will impact the year-over-year comparability of the Company’s loss per share calculations. Additionally, in connection with the closing of the IPO, the Company amended and restated its certificate of incorporation to increase the number of authorized shares of common stock to 100,000,000 and to authorize 5,000,000 shares of undesignated preferred stock.

Summary of significant accounti

Summary of significant accounting policies	6 Months Ended
	Jun. 30, 2015
Summary of significant accounting policies
Summary of significant accounting policies	Note 3. Summary of significant accounting policies There have been no material changes to the significant accounting policies previously disclosed in the Company’s Final Prospectus for the year ended December 31, 2014. Principles of consolidation: At June 30, 2015, the consolidated financial statements include the accounts of the Company and its two wholly-owned subsidiaries. At December 31, 2014, Neos Therapeutics, Inc. owned, directly or indirectly, 100% of two of its subsidiaries and 99.9% of the third subsidiary, Neostx, Inc. (“NTX”). The remaining 0.1% ownership of NTX was held by a third party and was acquired by the Company on June 29, 2015. The amounts attributable to the noncontrolling interest were not material to the consolidated financial statements. All significant intercompany transactions have been eliminated. Cash equivalents: The Company invests its available cash balances in bank deposits and money market funds. The Company considers highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. Management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. The Company’s primary objectives for investment of available cash are the preservation of capital and the maintenance of liquidity. Short-term investments: Short-term investments consist of U.S. Treasury Bills that have original maturities greater than three months but less than or equal to one year and are classified as available-for-sale securities. These investments are recorded at fair value. Realized gains and losses are reported in the consolidated statements of operations. Unrealized gains and losses are immaterial. Fair value of financial instruments: The carrying value of the Company’s financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, other current assets, accounts payable, accrued expenses, and debt, approximates fair value due to the short-term nature of the instruments and/or the current interest rates payable in relation to current market conditions. The fair value of the Company’s warrants and earnout liabilities is disclosed in Note 5. Inventories: Inventories, comprised of raw materials, labor, and manufacturing overhead, as well as finished goods inventory, are stated at the lower of cost (actual, which approximates first-in, first-out) or market, net of an allowance for obsolete inventory. Intangible assets: Intangible assets subject to amortization, which principally include proprietary modified-release drug delivery technology and the costs to acquire the rights to Tussionex ANDA, are recorded at cost and amortized over the estimated lives of the assets ranging from 10 to 20 years. Deferred Offering Costs: The Company capitalizes certain legal, accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs (non-current) until such financings are consummated. After consummation of the equity financing, these costs are recorded in stockholders’ equity (deficit) as a reduction of additional paid-in capital generated as a result of the financing. Revenue recognition: Revenue is generated from product sales, recorded on a net sales basis, and historically, manufacturing, development and profit sharing from a development and manufacturing agreement. Product revenue is recognized when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) price to the buyer is fixed and determinable; and (4) collectability is reasonably assured. Revenue from sales transactions where the buyer has the right to return the product is recognized at the time of sale only if (1) the price to the buyer is substantially fixed or determinable at the date of sale, (2) the buyer has paid for the product, or the buyer is obligated to pay for the product and the obligation is not contingent on resale of the product, (3) the buyer’s obligation to pay would not be changed in the event of theft or physical destruction or damage of the product, (4) the buyer acquiring the product for resale has economic substance apart from that provided by the Company, (5) the Company does not have significant obligations for future performance to directly bring about resale of the product by the buyer, and (6) the amount of future returns can be reasonably estimated. The Company sells its generic Tussionex to a limited number of pharmaceutical wholesalers. Pharmaceutical wholesalers buy drug products directly from manufacturers. Title to the product passes upon delivery to the wholesalers, when the risks and rewards of ownership are assumed by the wholesaler (freight on board destination). These wholesalers then resell the product to retail customers such as food, drug and mass merchandisers. The Company expects that manufacturing, profit sharing and development revenue will end as the Company has terminated the Company’s development and manufacturing agreement. As a result of the Company’s acquisition of the rights to commercialize and derive future profits from the Tussionex ANDA, the Company will utilize its manufacturing capability to derive revenue directly from sales made by the Company, rather than through the Company’s commercial partner. Net product sales Net product sales for the Company’s generic Tussionex product represent total gross product sales less gross to net sales adjustments. Gross to net sales adjustments include wholesaler fees and estimated allowances for product returns, government rebates, chargebacks and prompt-payment discounts to be incurred on the selling price of the respective product sales. Wholesale distribution fees are incurred on the management of these products by wholesalers and are recorded within net product sales based on definitive contractual agreements. The Company estimates gross to net sales adjustments for allowances for product returns, government rebates and chargebacks based upon analysis of third-party information, including information obtained from the Company’s third party logistics provider, or 3PL, with respect to its inventory levels and sell-through to the wholesalers’ customers, data available from third parties regarding prescriptions written for the Company’s products, as well as actual experience as reported by the Company’s customers and previous commercialization partners. Due to estimates and assumptions inherent in determining the amount of returns, rebates and chargebacks, the actual amount of returns and claims for rebates and chargebacks may be different from the estimates, at which time reserves would be adjusted accordingly. Allowances and accruals are recorded in the same period that the related revenue is recognized. Product returns Wholesalers’ contractual return rights are limited to defective product, product that was shipped in error, product ordered by customer in error, product returned due to overstock, product returned due to dating or product returned due to recall or other changes in regulatory guidelines. The return policy for expired product allows the wholesaler to return such product starting six months prior to expiry date to twelve months post expiry date. Generic Tussionex product returns are estimated based upon data available from sales of the Company’s product by its previous commercialization partner and from actual experience as reported by retailers. Historical trend of returns will be continually monitored and may result in future adjustments to such estimates. On August 26, 2014, the U.S. Drug Enforcement Agency reclassified the Company’s generic Tussionex from a Schedule III controlled substance to a Schedule II controlled substance which had the effect of requiring unsold product at the wholesalers and the 3PL to either be relabeled or returned. This new ruling was effective October 6, 2014. As such, the Company established reserves for the estimated returns of such product outstanding at the wholesalers as of October 6, 2014. The Company had no inventory labeled as Schedule III at the 3PL as of the effective date. Medicaid rebates The Company’s product is subject to state government-managed Medicaid programs whereby discounts and rebates are provided to participating state governments. Estimated rebates payable under governmental programs, including Medicaid, are recorded as a reduction of revenue at the time revenues are recorded. Calculations related to these rebate accruals are estimated based on sales of the Company’s product by its previous commercialization partner. Historical trend of Medicaid rebates will be continually monitored and may result in future adjustments to such estimates. Wholesaler Chargebacks The Company’s products are subject to certain programs with wholesalers whereby pricing on products is discounted below wholesaler list price to participating entities. These entities purchase products through wholesalers at the discounted price, and the wholesalers charge the difference between their acquisition cost and the discounted price back to the Company. Chargebacks are accounted for by establishing an accrual in an amount equal to the Company’s estimate of chargeback claims at the time of product sale based on information provided by the distributor. Due to estimates and assumptions inherent in determining the amount of chargebacks, the actual amount of claims for chargebacks may be different from estimates, which may result in adjustments to such reserves. Manufacturing Manufacturing revenue is derived from product manufactured by the Company and sold by the Company’s commercial partner under a development and manufacturing agreement. Manufacturing revenue is derived from a contractual supply price paid to the Company by the Company’s commercial partners. Profit sharing Profit sharing revenue is recorded as the product is sold by the Company’s commercial partner. The profit share is the Company’s share of the net profits after taking into account net revenue, which is gross product sales by the Company’s commercial partner, net of discounts, returns and allowances incurred by the Company’s commercial partner, less collaboration expenses. Development revenue Development revenue from the development and manufacturing agreement has been recognized as the related services are completed. Development revenue in the form of milestone payments is recognized upon achievement of the related milestones and provided that collectability is reasonably assured and other revenue recognition criteria are met. Amounts received under cost reimbursement arrangements for production and research and development are recorded as offsets to the costs incurred and not recognized as revenue. Research and development costs: Research and development costs are charged to operations when incurred and include salaries and benefits, facilities costs, overhead costs, clinical trial costs, contract services, fees paid to regulatory authorities for review and approval of the Company’s product candidates and other related costs. Income taxes: Income taxes are accounted for using the liability method, under which deferred taxes are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax laws that will be in effect when the differences are expected to reverse. Management evaluates the Company’s tax positions in accordance with guidance on accounting for uncertainty in income taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than not that the position will be sustained upon examination. As of December 31, 2014 and June 30, 2015, the Company had no uncertain tax positions that qualify for either recognition or disclosure in the consolidated financial statements. Tax benefits are recognized when it is more likely than not that a tax position will be sustained during an audit. Deferred tax assets are reduced by a valuation allowance if current evidence indicates that it is considered more likely than not that these benefits will not be realized. At December 31, 2014 and June 30, 2015, based on the level of historical operating results and projections for the taxable income for the future, the Company has determined that it is more likely than not that the deferred tax assets will not be realized. Accordingly, the Company has recorded a valuation allowance to reduce deferred tax assets to zero. The Company may not ever be able to realize the benefit of some or all of the federal and state loss carryforwards, either due to ongoing operating losses or due to ownership changes, which limit the usefulness of the loss carryforwards. At December 31, 2014, the Company had a net operating loss carry-forward of $86,551,000 and research and development credits of $2,029,000, which begin to expire in 2024. The Company analyzed the impact of any ownership change(s) under Section 382 of the Internal Revenue Code and determined that there would not be a material limitation in the utilization of the net operating loss carry-forwards and credits due to any ownership changes. Warrants: Certain warrants to purchase the Company’s redeemable convertible preferred stock are classified as liabilities and are recorded at fair value as estimated by the Company using third party valuation analyses. These warrants are revalued at each subsequent balance sheet date with fair value changes recognized as reductions or increases in other income (expense), net in the Company’s consolidated statement of operations. Share-based compensation: Share-based compensation awards, including grants of employee stock options and restricted stock and modifications to existing stock options, are recognized in the statement of operations based on their fair values. Compensation expense related to awards to employees is recognized on a straight-line basis, based on the grant date fair value, over the requisite service period of the award, which is generally the vesting term. The fair value of the Company’s stock-based awards to employees and directors is estimated using the Black-Scholes option pricing model, which requires the input of subjective assumptions, including (1) the expected stock price volatility, (2) the expected term of the award, (3) the risk-free interest rate and (4) expected dividends. Due to the lack of a public market for the trading of its common stock and a lack of company-specific historical and implied volatility data, the Company has historically utilized third party valuation analyses to determine the fair value. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Ultimately, the actual expense recognized over the vesting period will only be for those options that vest. Use of estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Segment information: Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one operating segment, which is the development, manufacturing and commercialization of pharmaceuticals. Liquidity: During 2014 and the three and six months ended June 30, 2015 and 2014, the Company produced operating losses and used cash to fund operations. Management intends to achieve profitability through revenue growth from pharmaceutical products developed with its extended-release technologies. The Company does not anticipate it will be profitable until after the launch of one or more of its ADHD product candidates. With the completion of the Company’s IPO in July 2015, management believes the Company presently has sufficient liquidity to continue to operate for at least the next 12 months. Application of revised accounting standards: In April 2012, the Jumpstart Our Business Startups Act, or the JOBS Act, was enacted in the United States. Section 107 of the JOBS Act provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has irrevocably elected not to avail itself of this extended transition period and, as a result, will adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies. Recent accounting pronouncements: In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11, Inventory—Simplifying the Measurement of Inventory (Topic 330). The amendments in this ASU require an entity to measure inventory that is not measured using the last-in, first-out (LIFO) or retail inventory methods at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The amendments in this ASU are effective for fiscal years beginning after December 15, 2016, including interim periods within those years. The Company is evaluating this ASU and has not determined the effect of this standard on its ongoing financial reporting. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard will become effective for the Company on January 1, 2018. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In June 2014, the FASB issued ASU No. 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The Company does not expect the adoption of this standard will have a material impact on the Company’s financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014-15 is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. This ASU is for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company does not expect the adoption of this standard will have a material impact on the Company’s financial statements. From time to time, additional new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. Reclassifications: Certain reclassifications have been made to the prior year’s consolidated financial statements to conform to the current year’s presentation. Subsequent events: The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure.

Net loss per share

Net loss per share	6 Months Ended
	Jun. 30, 2015
Net loss per share
Net loss per share	Note 4. Net loss per share Basic net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common share equivalents outstanding for the period. Common stock equivalents are only included when their effect is dilutive. Potentially dilutive securities which include redeemable convertible preferred stock, warrants and outstanding stock options under the stock option plan have been excluded from the computation of diluted net loss per share as they would be anti-dilutive. For all periods presented, there is no difference in the number of shares used to compute basic and diluted shares outstanding due to the Company’s net loss position. The following potentially dilutive securities were excluded from consideration in the computation of diluted net loss per share of common stock for the three and six months ended June 30, 2015 and 2014, respectively, because including them would have been anti-dilutive: June 30, June 30, 2015 2014 Series A Redeemable Convertible Preferred Stock (as converted) Series B Redeemable Convertible Preferred Stock (as converted) Series B-1 Redeemable Convertible Preferred Stock (as converted) Series C Redeemable Convertible Preferred Stock (as converted) Series C Redeemable Convertible Preferred Stock Warrants (as converted) Common Stock Warrants (as converted) Stock options

Fair value of financial instrum

Fair value of financial instruments	6 Months Ended
	Jun. 30, 2015
Fair value of financial instruments
Fair value of financial instruments	Note 5. Fair value of financial instruments Financial instruments are categorized into a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the categorization of the financial instrument is based on the lowest priority level input that is significant to the fair value measurement of the instrument. Financial assets recorded at fair value on the Company’s consolidated balance sheets are categorized as follows: Level 1: Unadjusted quoted prices for identical assets in an active market. Level 2: Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full-term of the asset. Level 2 inputs include the following: Ø Quoted prices for similar assets in active markets. Ø Quoted prices for identical or similar assets in nonactive markets. Ø Inputs other than quoted market prices that are observable. Ø Inputs that are derived principally from or corroborated by observable market data through correlation or other means. Level 3: Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset. The following table presents the hierarchy for the Company’s financial instruments measured at fair value on a recurring basis for the indicated dates: Fair Value as of December 31, 2014 Level 1 Level 2 Level 3 Total (in thousands) Cash and cash equivalents $ $ — $ — $ Short term investments — — Earnout liability — — Series C Redeemable Preferred Stock Warrants — — $ $ — $ $ Fair Value as of June 30, 2015 Level 1 Level 2 Level 3 Total (in thousands) Cash and cash equivalents $ $ — $ — $ Short term investments — — — — Earnout liability — — Series C Redeemable Preferred Stock Warrants — — $ $ — $ $ The Company’s Level 1 assets include bank deposits, U.S. Treasury bills and money market funds with quoted prices in active markets. Level 3 liabilities include the fair values of the earnout liability and the outstanding warrants to purchase Series C Redeemable Convertible Preferred Stock. Various methodologies were utilized to value the Level 3 liabilities including Black-Scholes, Probability-Weighted Expected Return (“PWERM”), Option Pricing and Monte Carlo. The methodologies and significant inputs used in the determination of the fair value of the Series C Redeemable Convertible Preferred Stock Warrants issued with the senior debt were as follows: Revalue Series C Revalue Series C Revalue Series C Warrants Issued with Warrants Issued with Warrants Issued with Senior Debt at Senior Debt at Senior Debt at December 31, 2014 March 31, 2015 June 30, 2015 (Dollars in thousands, except $5 Exercise Price) Date of Valuation 12/31/2014 3/31/2015 6/30/2015 Valuation Method PWERM and Option Pricing PWERM and Option Pricing PWERM and Option Pricing Dividend yield (per share) Exercise price $ $ $ Volatility (annual) Risk-free rate (annual) .25% - 2.47% .19% - 2.31% .14% - 2.83% Contractual term (years) 1 - 5 .75 - 5 .5 - 5 Number of warrants Fair value of liability at valuation date $ $ $ The methodologies and significant inputs used in the determination of the fair value of the Series C Redeemable Convertible Preferred Stock Warrants issued with the Series C Redeemable Preferred Stock were as follows: Initial Valuation of December 31, 2014 Initial Valuation Initial Valuation Revalue All Warrants Revalue All Warrants Warrants Issued of January 2015 of February 2015 Issued With Series C Issued With Series C With Series C Warrants Issued With Warrants Issued With Redeemable Preferred Redeemable Preferred Redeemable Series C Redeemable Series C Redeemable Stock at Stock at Preferred Stock Preferred Stock Preferred Stock March 31, 2015 June 30, 2015 (Dollars in thousands, except $5 Exercise Price) Date of Valuation 12/31/2014 1/31/2015 2/28/2015 3/31/2015 6/30/2015 Valuation Method PWERM and Option Pricing PWERM and Option Pricing PWERM and Option Pricing PWERM and Option Pricing PWERM and Option Pricing Dividend yield (per share) Exercise price $ $ $ $ $ Volatility (annual) Risk-free rate (annual) .25% - 2.47% .25% - 2.47% .25% - 2.47% .19% - 2.31% .14% - 2.83% Contractual term (years) 1 - 5 1 - 5 1 - 5 .75 - 5 .5 - 5 Number of warrants Fair value of liability at valuation date $ $ $ $ $ The methodologies and significant inputs used in the determination of the fair value of the earnout liability were as follows: December 31, 2014 March 31, 2015 June 30, 2015 Earnout Liability Earnout Liability Earnout Liability (Dollars in thousands) Date of Valuation 12/31/2014 3/31/2015 6/30/2015 Valuation Method Monte Carlo Monte Carlo Monte Carlo Volatility (annual) Risk-free rate (annual) .15% - 3.21% .14% - 3.00% .09% - 3.51% Time period from valuation until end of earnout .5 - 9.5 .375 - 9.375 .25 - 9.0 Earnout Target 1 $ $ $ Earnout Target 2 $ $ $ Discount rate 7.96% - 11.03% 8.18% - 11.04% 7.96% - 11.39% Fair value of liability at valuation date $ $ $ Significant changes to these assumptions would result in increases/decreases to the fair value of the outstanding warrants to purchase Series C Redeemable Convertible Preferred Stock and the earnout liability. Changes in Level 3 liabilities measured at fair value for the periods indicated were as follows: Series C Warrants Series C Warrants Issued Earnout Issued With With Series C Redeemable Liability Senior Debt Preferred Stock Financing (in thousands) Balance at December 31, 2014 $ $ $ Additions during the period — — Changes in fair value ) Warrants exercised — — ) Balance at June 30, 2015 $ $ $ The reductions in fair value of the earnout liability shown above resulted from new information regarding the projected impact of the U.S. DEA’s reclassification of Tussionex from a Schedule III controlled substance to a Schedule II controlled substance and a review of the launch dates of the Company’s three ADHD product candidates. The increases in the fair value of the Series C warrants were due to the increased PWERM weighting of the IPO scenario.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2015
Inventories
Inventories	Note 6. Inventories Inventories at the indicated dates consist of the following: June 30, December 31, 2015 2014 (in thousands) Raw materials $ $ Work in progress — Finished goods Inventory at cost Inventory reserve ) ) $ $

Sale-leaseback transaction

Sale-leaseback transaction	6 Months Ended
	Jun. 30, 2015
Sale-leaseback transaction
Sale-leaseback transaction	Note 7. Sale-leaseback transaction In the aggregate, the Company sold groups of assets for $5.5 million and $795,000 in five separate tranches that occurred in February, July and November 2013, and March 2014, which resulted in a net gains of approximately $2.7 million and $116,000, in the years ended December 31, 2013 and 2014, respectively, and executed capital leases for these assets with repurchase options at the end of each respective lease term. Gains on the transactions are recognized on a straight-line basis over each respective 42-month lease term. For the three months ended June 30, 2015 and 2014, approximately $208,000 per period, and for the six months ended June 30, 2015 and 2014 approximately $416,000 and $408,000, respectively, of the net gain was recognized in other income on the consolidated statements of operations.

Intangible assets, net

Intangible assets, net	6 Months Ended
	Jun. 30, 2015
Intangible assets, net
Intangible assets, net	Note 8. Intangible assets, net Intangible assets, net at the indicated dates consist of the following: June 30, December 31, 2015 2014 (in thousands) Proprietary modified-release drug delivery technology $ $ Tussionex ANDA CPI profit sharing Other Accumulated amortization ) ) $ $ The $15.6 million of proprietary modified-release drug delivery technology is being amortized over 20 years. Amortization expense of $195,000 was recorded in both the three months ended June 30, 2015 and 2014 and amortization expense of $390,000 was recorded for both the six months ended June 30, 2015 and 2014. On August 28, 2014, the Company completed an acquisition of the rights to Tussionex ANDA from Cornerstone and CPI which was accounted for as an asset acquisition. Prior to the acquisition, the Company, Cornerstone and CPI shared profits generated by the sale and manufacture of the product under a development and manufacturing agreement, and Cornerstone had commercialization rights to the product. The Company paid $4.2 million to Cornerstone to buy out their rights to commercialize and derive future profits from the product and entered into an agreement whereby Cornerstone transferred certain assets associated with the product to the Company. Legal fees of $90,000 associated with this buyout agreement have been capitalized as part of the purchase price. Additional estimated earnout costs due to Cornerstone of $589,000, recorded at fair value by the Company based upon a valuation provided by a third party valuation firm, were capitalized as part of the purchase price of this intangible asset. This earnout amount was revalued at June 30, 2015, resulting in a $42,000 increase in the estimated fair value of the earnout which is recorded in other income (expense), net in the Company’s consolidated statement of operations for the three months ended June 30, 2015. The net decrease of $400,000 for the six months ended June 30, 2015 resulted from new information regarding the projected impact of the U.S. DEA’s reclassification of Tussionex from a Schedule III controlled substance to a Schedule II controlled substance. In addition, the Company paid $2.0 million to CPI to buy out their rights to future profits from the collaboration and entered into an agreement whereby CPI will continue to supply a component of the product. Legal fees of $43,000 associated with this buyout agreement have been capitalized as part of the purchase price of this intangible asset. These two intangible assets have an expected life of ten years and are being amortized on a straight-line basis beginning September 2014. Total amortization expense related to these intangible assets was $171,000 and $343,000, respectively, for the three and six months ended June 30, 2015 and there was no amortization for the three and six months ended June 30, 2014.

Other assets

Other assets	6 Months Ended
	Jun. 30, 2015
Other assets
Other assets	Note 9. Other assets Other assets at the indicated dates consist of the following: June 30, December 31, 2015 2014 (in thousands) Patents $ $ Deposits Deferred Offering Costs — $ $ Patents utilized in the manufacturing of the Company’s generic Tussionex product which total $231,000 are being amortized over their expected useful life of 10 years. For the three and six months ended June 30, 2015, $6,000 and $12,000, respectively, of patent amortization expense was recorded. There was no patent amortization expense for the three and six months ended June 30, 2014.

Long-term debt

Long-term debt	6 Months Ended
	Jun. 30, 2015
Long-term debt.
Long-term debt	Note 10. Long-term debt Long-term debt at the indicated dates consists of the following: June 30, December 31, 2015 2014 (in thousands) Senior debt, net of discount of $1,462 and $1,743 $ $ 10% subordinated note payable to a related party Capital leases, maturing through August 2017 Less current portion ) ) Long-term debt $ $ Senior debt: In March 2014, the Company entered into a Loan and Security Agreement (“LSA”) with Hercules which was subsequently amended in August 2014, September 2014, December 2014 and June 2015. As amended, the LSA provides a total commitment of $25.0 million, available in four draws. Borrowings under the LSA are collateralized by substantially all of the Company’s assets, except the Company’s intellectual property and assets under capital lease. The first draw of $10.0 million, or Tranche 1, was issued during March 2014 and was used in its entirety to repay outstanding principal under a previous credit facility. The second draw of $5.0 million, or Tranche 2, was issued during September 2014. Tranche 3 in the amount of $5.0 million was issued in March 2015. In June 2015, the fourth and final draw of $5.0 million, or Tranche 4, was issued prior to meeting the Tranche 4 milestones. The Company met the Tranche 4 Milestones stated in the LSA prior to July 31, 2015. Each draw is to be repaid in monthly installments, comprised of interest-only monthly payments until May 2016, when installments of interest and principal calculated over a thirty-month amortization period commence. A balloon payment of the entire principal balance outstanding on October 1, 2017 and all accrued but unpaid interest thereunder is due and payable on October 1, 2017. The interest rate is 9% per annum for Tranche 1 and Tranche 4 and 10.5% per annum for Tranche 2 and Tranche 3. An end of term charge of $1.1 million is payable at the earliest to occur of (1) October 1, 2017, (2) the date the Company prepays its outstanding Secured Obligations, as defined therein, or (3) the date the Secured Obligations become due and payable. The LSA, as amended, also contains certain financial and nonfinancial covenants, including limitations on the Company’s ability to transfer assets, engage in a change of control, merge or acquire with or into another entity, incur additional indebtedness, repurchase or redeem stock or other equity interest other than pursuant to employee stock repurchase plans or other similar agreements, make investments and engage in transactions with affiliates. Upon an event of default, the lender may declare the unpaid principal amount of all outstanding loans and interest accrued under the loan and security agreement to be immediately due and payable, and exercise its security interests and other rights. As of December 31, 2014 and June 30, 2015, the Company was in compliance with the covenants under the LSA, as amended. In connection with the LSA, the Company issued to Hercules 60,000 warrants in March 2014 and 110,000 warrants in September 2014 (“Series C Warrants”) to purchase shares of the Company’s Series C Redeemable Convertible Preferred Stock at the then current price of $5.00 per share. These warrants will become warrants for the purchase of 70,833 shares of common stock at a price of $12.00 per shares upon the closing of the Company’s IPO. The fair value of the 60,000 Series C Warrants issued March 28, 2014 as part of the initial draw-down described above was $124,000 and the residual proceeds of $9,876,000 were allocated to the $10.0 million interest bearing note. The fair value of the 110,000 Series C Warrants issued September 25, 2014 as part of the second draw-down described above was $248,000 and the residual proceeds of $4,752,000 were allocated to the $5.0 million interest bearing note. The warrants were recorded as a liability with a related debt discount to be amortized as interest over the term of the LSA. End of term charge amortization totaled $76,000 and $151,000 for the three and six months ended June 30, 2015, respectively. Debt discount amortization to interest expense for the senior debt totaled $65,000 and $129,000 for the three and six months ended June 30, 2015, respectively. At the end of the three and six months ended June 30, 2015, the warrant fair values were remeasured and the changes in fair value of approximately $87,000 and $119,000, respectively, have been recorded in other income (expense), net in the Company’s consolidated statements of operations. No change in fair value of these warrants was recorded in the three and six months ended June 30, 2014. Credit Agreement: Previously, the Company had a credit agreement entered into on August 20, 2012 (the “Credit Agreement”) with a financial institution. The Credit Agreement provided for a four-year $10.0 million term loan, with an annual interest rate of 9.5% payable monthly. In addition, a $250,000 fee payable at maturity was being amortized using the effective interest method. The proceeds from the initial $10.0 million draw on the LSA were used to repay the outstanding $10.0 million Credit Agreement balance and $697,000 of interest expense related to the Credit Agreement in March 2014. The early prepayment of the Credit Agreement resulted in a $445,000 loss (due to recording the $98,000 prepayment penalty and writing off the $154,000 unamortized exit fee and the $193,000 of unamortized loan cost) reflected in interest expense for the six months ended June 30, 2014. 10% subordinated related party note: The Company has an amended and restated subordinated note (the “Note”) in the aggregate principal amount of $5.9 million that was issued by the Company to Essex Capital Corporation, or Essex. Interest accrues and adds to the principal balance until such time as the Company achieves positive EBITDA for three consecutive months. On July 19, 2014, the interest rate on the Note was reduced to 6% for the period from July 19, 2014 through July 31, 2015 pursuant to an amendment to the Note entered into as consideration for the $128,000 payment made by the Company to Essex as part of the Settlement and Release of Claims Agreement with Essex and a third party (see Note 16). The Company recorded this amendment as a loan modification. At each of December 31, 2014 and June 30, 2015, the aggregate principal amount of the Note was $5.9 million, and $511,000 and $709,000 in interest had been accrued through the year ended December 31, 2014 and through the six months ended June 30, 2015, respectively. Capital lease obligations to related party: As described in Notes 7 and 16, during the years ended December 31, 2013 and 2014, the Company entered into agreements with a related party for the sale-leaseback of existing and newly acquired assets with a total capitalized cost of $5.5 million and $795,000, respectively, which are classified as capital leases. The approximate imputed interest rate on these leases is 14.5% and interest expense on these leases was $123,000 and $172,000 for the three months ended June 30, 2015 and June 30, 2014, respectively, and $261,000 and $338,000 for the six months ended June 30, 2015 and 2014, respectively. Future principal payments of long-term debt, including capital leases, are as follows: June 30, Period ending: 2015 (in thousands) 2015 $ 2016 2017 Future principal payments $ Less unamortized debt discount ) Less current portion of long-term debt ) Total long-term debt $

Common stock and redeemable con

Common stock and redeemable convertible preferred stock	6 Months Ended
	Jun. 30, 2015
Common stock and redeemable convertible preferred stock
Common stock and redeemable convertible preferred stock	Note 11. Common stock and redeemable convertible preferred stock The following table summarizes the authorized, issued and outstanding shares of the Company by class of stock as of June 30, 2015 and December 31, 2014. All shares have a par value of $0.001: June 30, 2015 December 31, 2014 Issued and Issued and Authorized Outstanding Authorized Outstanding Shares Shares Shares Shares Common Stock Series A Preferred Stock Series B Preferred Stock Series B-1 Preferred Stock Series C Preferred Stock Total Shares Issued Treasury Stock ) Total Outstanding Shares Total Authorized Shares Reverse Stock Split On July 10, 2015, the Company filed an amendment to its amended and restated certificate of incorporation, effecting a one-for-2.4 reverse stock split of the Company’s issued and outstanding shares of common stock as approved by the board of directors on July 9, 2015. All issued and outstanding common stock and per share amounts contained in the Company’s financial statements have been retroactively adjusted to reflect this reverse stock split for all periods presented. Authorized Shares In connection with the completion of the Company’s IPO on July 28, 2015, the Company amended and restated its certificate of incorporation to authorize 5,000,000 shares of preferred stock, par value $0.001 per share, and 100,000,000 shares of common stock, par value $0.001 per share. Public Offerings and Related Transactions On July 28, 2015, the Company closed its IPO whereby the Company sold 5,520,000 shares of common stock, at a public offering price of $15.00 per share, which includes 720,000 shares of common stock resulting from the underwriters’ exercise of their over-allotment option at the IPO price on July 23, 2015. Proceeds from the Company’s IPO, net of underwriting discounts and commissions and other offering costs, were $75.0 million. Upon the closing of the Company’s IPO, all of the Company’s Preferred Shares converted into shares of the Company’s Common Stock, all such Preferred Shares were retired and cancelled and shall not be reissued as shares of such series, and all rights and preferences of those Preferred Shares were cancelled including the right to receive undeclared accumulated dividends. Each of the following occurred in connection with the closing of the Company’s IPO on July 28, 2015: · the conversion of all outstanding shares of convertible preferred stock into 9,217,983 shares of the Company’s common stock; · the conversion of warrants issued with the LSA to purchase 170,000 shares of Series C convertible preferred stock into warrants to purchase 70,833 shares of the Company’s common stock and the resultant reclassification of the warrant liability to Stockholders’ Deficit; and · the cashless exercise of warrants issued in conjunction with the Series C preferred stock financing to purchase 947,185 shares of Series C convertible preferred stock into 78,926 shares of the Company’s common stock. The Company had classified its classes of redeemable convertible preferred stock as mezzanine equity based upon the terms and conditions which contain various redemption and conversion features. In conjunction with the Company’s Series B-1 financing in 2012, the Series B-1 investors also received warrants to purchase 389,474 shares of common stock at an exercise price of $0.0024 per share. There were no exercises of Series B-1 warrants in the six months ended June 30, 2015 or in the year ended December 31, 2014. As of June 30, 2015, warrants to purchase 337,133 shares of common stock remained outstanding, and expire in 2016. Between July 7 and August 27, 2015, the Company issued a total of 99,062 shares of its common stock to several investors upon the exercise of warrants held by those investors at an exercise price of $0.0024 per share. (See Note 17). In February and March 2014, the Company closed on additional Series C financings totaling 1,986,586 shares, raising $9.9 million. Between December 2014 and February 2015, the Company closed on an additional Series C financing raising a total of $20.6 million, including $7.5 million in December 2014 and $13.1 million during the six months ended June 30, 2015. The Company issued 1,499,935 shares in December 2014 and 2,624,936 shares during the three months ended March 31, 2015 of Series C preferred stock. In addition, the Company issued a warrant to purchase one additional share of Series C at a purchase price of $ 5.00 per share for every two purchased shares of Series C, provided the investor purchased its pro-rata share of the Series C. In the event that the Company’s Series C is converted into common stock or another class of the Company’s stock (called “Conversion Stock”) during the warrant exercise period, then the warrants will become exercisable for the Conversion Stock and the exercise price of those warrants shall be ratably adjusted. The Company issued warrants to purchase 749,967 shares of Series C preferred stock in December 2014 and 1,197,218 shares of Series C preferred stock during the six months ended June 30, 2015 (see warrant liability section below). On June 30, 2015, the Company issued a total of 150,000 shares of its Series C preferred stock to an investor upon the exercise of warrants held by that investor at an exercise price of $5.00 per share, for an aggregate exercise price of $750,000. Between July 6 and July 27, 2015, the Company issued 850,000 shares of its Series C preferred stock to several investors upon the exercise of warrants held by those investors at an exercise price of $5.00 per share, for an aggregate exercise price of $4.25 million (See Note 17). Dividends: From and after the date of the issuance of Series B-1, dividends at the rate per annum of 8% of the Series B-1 original issuance price of $5.00 accrued on such shares of Series B-1. Dividends accrued from day to day, whether or not declared, and were cumulative. The accruing dividends shall be payable in additional shares of Series B-1, valued at the Series B-1 original issuance price, unless the board of directors of the Company elects to pay all or any portion of the accruing dividends in cash. In accordance with the conversion provision of the Company’s Third Amended and Restated Certificate of Incorporation, as amended, which was triggered upon completion of the Company’s IPO, all rights with respect to the Preferred Stock of the Company were terminated, including the right to receive undeclared dividends. The Series B-1 cumulative dividends were never declared by the Company’s board of directors. (See Note 17). Redemption: The holders of a majority of the outstanding shares of Series C, Series B-1 and Series B, voting together as a single class, can require the Company to redeem the Series C, Series B-1 and Series B at their original purchase price of $5.00 per share in three annual installments by giving a sixty-day notice at any time on or after March 31, 2017. On March 25, 2014, the Company amended the initial redemption date, extending it to November 1, 2017. On each redemption date, the Company shall redeem, on a pro rata basis in accordance with the number of shares of Series C, Series B-1 and Series B owned by each holder, that number of outstanding shares of Series C, Series B-1 and Series B. If the Company does not have sufficient funds legally available to redeem on any redemption date, the Company shall redeem a pro rata portion of each holder’s Series C, Series B-1 and Series B out of funds legally available. The Series C, Series B-1 and Series B is redeemable on November 1, 2017, and their carrying value will be accreted to the minimum redemption value of $5.00 per share or $57,642,000, $27,309,000 and $15,565,000, respectively, over the period from issuance through November 1, 2017 using the effective interest method for issuances through June 30, 2015. The amount of accretion recorded for the three and six months ended June 30, 2015 and for the three and six months ended June 30, 2014 for Series C amounted to $335,000, $570,000, $21,000 and $45,000, respectively. The amount of accretion recorded for the three and six months ended June 30, 2015 and for the three and six months ended June 30, 2014 for Series B-1 was $165,000, $329,000, $161,000 and $354,000, respectively. The amount of accretion recorded for the three and six months ended June 30, 2015 and for the three and six months ended June 30, 2014 for Series B amounted to $86,000, $171,000, $83,000 and $184,000, respectively. In the event of a deemed liquidation event, the holders of a majority of the outstanding shares of Series C, Series B-1 and Series B can require the Company to redeem such preferred stock. Based on the June 30, 2015 and December 31, 2014 capitalization, the maximum redemption payment would be $127,826,000 and $126,831,000, respectively. Since it is presently not probable that a deemed liquidation event will occur, no additional accretion has been recorded on the Series C, Series B-1, Series B or Series A. The Company’s Third Amended and Restated Certificate of Incorporation, as amended, does not limit the amount that the Company could be required to pay upon redemption or the number of shares the entity could be required to issue at conversion. In accordance with the conversion provision of the Company’s Third Amended and Restated Certificate of Incorporation, as amended, which was triggered upon completion of the Company’s IPO, all rights with respect to the Preferred Stock of the Company were terminated, including redemption rights. (See Note 17). Warrant liability: In connection with the December 2014 $7.5 million additional Series C financing (see above), the Company issued warrants to purchase an aggregate 749,967 shares of the Series C. The proceeds from the December 2014 additional Series C financing with stock purchase warrants were allocated to the two elements based on the fair value of the Series C warrants at time of issuance. The remainder of the proceeds was allocated to the redeemable convertible preferred instrument portion of the transaction, resulting in a discount. The portion of the proceeds so allocated to the warrants is accounted for as a warrant liability and periodically adjusted to fair value through the statement of operations. The related preferred stock discount is amortized as preferred stock accretion to redemption value over the remaining term until the redemption date using the effective interest method. The fair value of the 749,967 Series C Warrants was $1,335,000, with the residual $6,108,000, net of legal fees of $57,000, allocated to the 1,499,935 shares of Series C. The proceeds from the 2015 additional Series C financing with stock purchase warrants were allocated to the two elements based on the fair value of the Series C warrants at time of issuance. The remainder of the proceeds was allocated to the redeemable convertible preferred instrument portion of the transaction, resulting in a discount. The portion of the proceeds so allocated to the warrants is accounted for as a warrant liability and periodically adjusted to fair value through the statement of operations. The related preferred stock discount is amortized as preferred stock accretion to redemption value over the remaining term until the redemption date using the effective interest method. The fair value of the 1,197,218 Series C Warrants was $2,131,000, with the residual $10,916,000, net of legal fees of $78,000, allocated to the 2,624,936 shares of Series C. At March 31, 2015, the warrant fair values were remeasured and a reduction in fair value of approximately $234,000 has been recorded in other income (expense), net in the Company’s consolidated statements of operations. At June 30, 2015, the warrant fair values were remeasured and an increase in fair value of approximately $129,000 has been recorded in other income (expense), net in the Company’s consolidated statements of operations for the second quarter, for a net reduction in the warrant fair value of $105,000 for the six months ended June 30, 2015. On June 30, 2015, warrants for 150,000 shares of Series C preferred stock were exercised as described above, resulting in a $281,000 decrease in the warrant liability.

Stock options, restricted stock

Stock options, restricted stock and performance stock options	6 Months Ended
	Jun. 30, 2015
Stock options, restricted stock and performance stock options
Stock options, restricted stock and performance stock options	Note 12. Stock options, restricted stock and performance stock options In November 2009, the Company adopted the Neos Therapeutics, Inc. 2009 Equity Plan (“2009 Plan”) that superseded the 1999 Incentive Stock Option Plan (“1999 Plan”) and reserved 688,059 shares for issuance under the 2009 Plan. Over time, the shares reserved for issuance under the 2009 Plan were increased to 1,375,037. Effective upon closing of the IPO, the board of directors determined not to grant any further awards under the 2009 Plan. The shares of common stock underlying any awards that are forfeited, canceled, reacquired by the Company prior to vesting, satisfied without the issuance of stock or otherwise terminated (other than by exercise) under the 2009 Plan will be added to the shares of common stock available under the Neos Therapeutics, Inc. 2015 Stock Option and Incentive Plan (“2015 Plan”). The board of directors adopted the 2015 Plan to be effective immediately prior to the IPO and initially reserved 767,330 shares of common stock for issuance under the 2015 Plan (See Note 17). The 2009 Plan allowed the Company to grant options to purchase shares of the Company’s common stock. Options may be granted to officers, employees, nonemployee directors and consultants, and independent contractors of the Company. The Company also granted performance based awards to selected management. The performance options vest over a three-year period based on achieving certain operational milestones. Unexercised options expire after the earlier of 10 years or termination of employment, except in the case of any unexercised vested options, which generally expire 90 days after termination of employment. All terminated options are available for reissuance. As of June 30, 2015 and December 31, 2014, 7,717 and 277,298 shares of common stock, respectively, remain available for grant under the 2009 Plan. The Company estimates the fair value of all stock option awards on the grant date by applying the Black-Scholes option pricing valuation model. The application of this valuation model involves assumptions that are highly subjective, judgmental and sensitive in the determination of compensation cost. Given the absence of an active market for the Company’s common stock prior to its IPO, the Company’s board of directors was required to estimate the fair value of its common stock at the time of each option grant primarily based upon valuations performed by a third party valuation firm. The weighted-average key assumptions used in determining the fair value of options granted during the periods indicated are as follows: Three Months Six Months Ended June 30, Ended June 30, 2015 2015 Estimated dividend yield % % Expected stock price volatility % % Weighted-average risk-free interest rate % % Expected life of option in years Weighted-average option fair value at grant $ $ Total compensation cost that has been charged to selling, general and administrative expense related to stock options was $115,000 and $189,000 for the three and six months ended June 30, 2015, respectively, and $21,000 and $32,000 for the three and six months ended June 30, 2014, respectively. At June 30, 2015, there was $1,708,000 of unrecognized compensation cost, adjusted for estimated forfeitures, related to unamortized stock options compensation which is expected to be recognized over the weighted-average remaining contractual life of options outstanding of approximately 8.8 years. For the six months ended June 30, 2015, the Company issued 4,443 shares of the Company’s common stock upon the exercise of outstanding stock options and received proceeds of $4,000 and realized no tax benefit from the exercised stock options. A summary of outstanding and exercisable options under the 2009 Plan as of June 30, 2015 and December 31, 2014 and the activity from December 31, 2014 through June 30, 2015, is presented below: Weighted- Number of Average Intrinsic Options Exercise Price Value (in thousands) Outstanding at December 31, 2014 $ $ Exercisable at December 31, 2014 $ $ Granted Exercised ) Expired, forfeited or cancelled ) Outstanding at June 30, 2015 $ $ Exercisable at June 30, 2015 $ $ The weighted-average remaining contractual life of options outstanding and exercisable on December 31, 2014 was 8.7 and 7.3 years, respectively. The option exercise price for all options granted in 2014 ranged from $2.91 to $7.49 per share. The weighted-average remaining contractual life of options outstanding and exercisable on June 30, 2015 was 8.8 and 7.1 years, respectively. The option exercise price for all options granted in the six months ended June 30, 2015 ranged from $9.32 to $10.73 per share. Restricted stock: Under the 2009 Plan, the Company granted restricted stock awards to members of its management and selected members of the board of directors. Restricted stock awards are recorded as deferred compensation and amortized into compensation expense, on a straight-line basis over a defined vesting period ranging from 1 to 48 months. For the year ended December 31, 2013, the Company issued 149,244 shares of restricted stock at a grant date fair value of $2.55 per share. Of these shares, 7,195 vested immediately and the remaining 142,049 of these shares vest over 48 months in four equal tranches on the anniversary of the issue date. Restricted stock compensation cost of $22,000 and $45,000 for the three and six months ended June 30, 2015, respectively, and $22,000 and $45,000 for the three and six months ended June 30, 2014, respectively, has been charged to selling, general and administrative expenses. At June 30, 2015 and 2014, there was $212,000 and $301,000, respectively, of unrecognized compensation cost related to restricted stock. No vested restricted stock awards were settled during the six months ended June 30, 2015. The Company had 106,537 shares of nonvested restricted stock with a weighted average fair value of $2.55 as of June 30, 2015 and December 31, 2014. For the six months ended June 30, 2015, there were no shares granted, vested or forfeited.

Treasury stock

Treasury stock	6 Months Ended
	Jun. 30, 2015
Treasury stock
Treasury stock	Note 13. Treasury stock The Company has the authority to repurchase common stock from former employees, officers, directors or other persons who performed services for the Company at the lower of the original purchase price or the then-current fair market value. On February 19, 2015, the Company’s board of directors approved the cancellation of the Company’s 55,905 shares of treasury stock which had been repurchased at the original purchase price of $0.002 in 2013.

Commitments and contingencies

Commitments and contingencies	6 Months Ended
	Jun. 30, 2015
Commitments and contingencies
Commitments and contingencies	Note 14. Commitments and contingencies Operating lease: The Company leases its office space and manufacturing facility under an operating lease which expires in 2024. The Company accounts for rent expense on long-term operating leases on a straight-line basis over the life of the lease resulting in a deferred rent balance of $1,172,000 and $1,189,000 at June 30, 2015 and December 31, 2014, respectively. The Company is also liable for a share of operating expenses for the premises as defined in the lease agreement. The Company’s share of these operating expenses was $60,000 and $119,000 for the three and six months ended June 30, 2015, respectively, and $59,000 and $126,000 for the three and six months ended June 30, 2014, respectively. Rent expense, excluding the share of operating expenses, for the three and six months ended June 30, 2015 was $218,000 and $436,000, respectively, and $229,000 and $455,000 for the three and six months ended June 30, 2014, respectively.

License agreements

License agreements	6 Months Ended
	Jun. 30, 2015
License agreements
License agreements	Note 15. License agreements On July 23, 2014, the Company entered into a Settlement Agreement and an associated License Agreement with Shire LLC for a non-exclusive license to certain patents for certain activities with respect to the Company’s New Drug Application No. 204326 for an extended-release orally disintegrating amphetamine polistirex tablet (“Neos NDA”). Under the terms of the agreement, the Company is required to pay a lump sum, non-refundable license fee of an amount less than $1.0 million no later than 30 days after receiving regulatory approval by the FDA of the Neos NDA. The Company will also pay a single digit royalty on net sales of the subject product during the life of the patents. Upon receiving such approval by the FDA, the license fee will be capitalized and amortized over the life of the patents. The royalties will be recorded as cost of goods sold in the same period as the net sales upon which they are calculated.

Related party transactions

Related party transactions	6 Months Ended
	Jun. 30, 2015
Related party transactions
Related party transactions	Note 16. Related party transactions At December 31, 2014 and June 30, 2015, the Company was obligated under a $5,935,000 long-term subordinated note (“Note”) that was issued by the Company to Essex. See Note 10 for further details. On July 21, 2014, the Company, Essex and a third party entered into a Settlement Agreement and Release of Claims Agreement resolving certain issues and disputes whereby Essex paid $256,000 to the third party, the Company paid Essex $128,000 and Essex agreed to reduce the interest rate on the Note from 10% to 6% for the July 19, 2014 through July 31, 2015 period. The third party released both Essex and the Company from any and all claims. As described in Note 7, in 2012, the Company negotiated financing arrangements with a related party that provided for the sale-leaseback of up to $6.5 million of the Company’s property and equipment. In 2013, the Company executed four transactions totaling $5.5 million and in March 2014, the Company completed the final tranche of the sale-leaseback arrangement, raising an additional $795,000.

Subsequent events

Subsequent events	6 Months Ended
	Jun. 30, 2015
Subsequent events
Subsequent events	Note 17. Subsequent events Between July 6 and July 27, 2015, the Company issued 850,000 shares of its Series C preferred stock to several investors upon the exercise of warrants held by those investors at an exercise price of $5.00 per share, for an aggregate exercise price of $4.25 million. Between July 7 and August 27, 2015, the Company issued a total of 99,062 shares of its common stock to several investors upon the exercise of warrants held by those investors at an exercise price of $0.0024 per share. On July 10, 2015, the Company filed an amendment to its amended and restated certificate of incorporation, effecting a one-for-2.4 reverse stock split of the Company’s issued and outstanding shares of common stock as approved by the board of directors on July 9, 2015. All issued and outstanding common stock and per share amounts contained in the Company’s financial statements have been retroactively adjusted to reflect this reverse stock split for all periods presented. Upon the closing of the Company’s IPO, all of the Company’s Preferred Shares converted into shares of the Company’s Common Stock, all such Preferred Shares were retired and cancelled and shall not be reissued as shares of such series, and all rights and preferences of those Preferred Shares were cancelled including the right to receive undeclared accumulated dividends. Effective upon closing of the IPO, the board of directors determined not to grant any further awards under the 2009 Plan. The board of directors adopted the 2015 Plan to be effective immediately prior to the closing of the IPO and initially reserved 767,330 shares of common stock for issuance under the plan (See Note 12). The Board of Directors approved option grants covering a total of 37,500 shares of common stock to certain non-employee directors on July 9, 2015 under the 2015 Plan. These option grants are to be effective immediately after the effectiveness of the Company’s registration statement. The exercise price of these option grants was equal to the IPO price of $15.00. Immediately following closing of the Company’s IPO on July 28, 2015, the Company filed the Fourth Amended and Restated Certificate of Incorporation authorizing 100,000,000 shares of common stock and 5,000,000 shares of undesignated preferred stock.

Summary of signifcant accountin

Summary of signifcant accounting policies (Policies)	6 Months Ended
	Jun. 30, 2015
Summary of significant accounting policies
Principles of consolidation	Principles of consolidation: At June 30, 2015, the consolidated financial statements include the accounts of the Company and its two wholly-owned subsidiaries. At December 31, 2014, Neos Therapeutics, Inc. owned, directly or indirectly, 100% of two of its subsidiaries and 99.9% of the third subsidiary, Neostx, Inc. (“NTX”). The remaining 0.1% ownership of NTX was held by a third party and was acquired by the Company on June 29, 2015. The amounts attributable to the noncontrolling interest were not material to the consolidated financial statements. All significant intercompany transactions have been eliminated.
Cash equivalents	Cash equivalents: The Company invests its available cash balances in bank deposits and money market funds. The Company considers highly liquid investments with original maturities of three months or less at the date of purchase to be cash equivalents. The Company maintains deposits in federally insured financial institutions in excess of federally insured limits. Management believes that the Company is not exposed to significant credit risk due to the financial position of the depository institutions in which those deposits are held. The Company’s primary objectives for investment of available cash are the preservation of capital and the maintenance of liquidity.
Short-term investments	Short-term investments: Short-term investments consist of U.S. Treasury Bills that have original maturities greater than three months but less than or equal to one year and are classified as available-for-sale securities. These investments are recorded at fair value. Realized gains and losses are reported in the consolidated statements of operations. Unrealized gains and losses are immaterial.
Fair value of financial instruments	Fair value of financial instruments: The carrying value of the Company’s financial instruments, including cash and cash equivalents, short-term investments, accounts receivable, other current assets, accounts payable, accrued expenses, and debt, approximates fair value due to the short-term nature of the instruments and/or the current interest rates payable in relation to current market conditions. The fair value of the Company’s warrants and earnout liabilities is disclosed in Note 5.
Inventories	Inventories: Inventories, comprised of raw materials, labor, and manufacturing overhead, as well as finished goods inventory, are stated at the lower of cost (actual, which approximates first-in, first-out) or market, net of an allowance for obsolete inventory.
Intangible assets	Intangible assets: Intangible assets subject to amortization, which principally include proprietary modified-release drug delivery technology and the costs to acquire the rights to Tussionex ANDA, are recorded at cost and amortized over the estimated lives of the assets ranging from 10 to 20 years.
Deferred Offering Costs	Deferred Offering Costs: The Company capitalizes certain legal, accounting and other third-party fees that are directly associated with in-process equity financings as deferred offering costs (non-current) until such financings are consummated. After consummation of the equity financing, these costs are recorded in stockholders’ equity (deficit) as a reduction of additional paid-in capital generated as a result of the financing.
Revenue recognition	Revenue recognition: Revenue is generated from product sales, recorded on a net sales basis, and historically, manufacturing, development and profit sharing from a development and manufacturing agreement. Product revenue is recognized when all of the following criteria are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered; (3) price to the buyer is fixed and determinable; and (4) collectability is reasonably assured. Revenue from sales transactions where the buyer has the right to return the product is recognized at the time of sale only if (1) the price to the buyer is substantially fixed or determinable at the date of sale, (2) the buyer has paid for the product, or the buyer is obligated to pay for the product and the obligation is not contingent on resale of the product, (3) the buyer’s obligation to pay would not be changed in the event of theft or physical destruction or damage of the product, (4) the buyer acquiring the product for resale has economic substance apart from that provided by the Company, (5) the Company does not have significant obligations for future performance to directly bring about resale of the product by the buyer, and (6) the amount of future returns can be reasonably estimated. The Company sells its generic Tussionex to a limited number of pharmaceutical wholesalers. Pharmaceutical wholesalers buy drug products directly from manufacturers. Title to the product passes upon delivery to the wholesalers, when the risks and rewards of ownership are assumed by the wholesaler (freight on board destination). These wholesalers then resell the product to retail customers such as food, drug and mass merchandisers. The Company expects that manufacturing, profit sharing and development revenue will end as the Company has terminated the Company’s development and manufacturing agreement. As a result of the Company’s acquisition of the rights to commercialize and derive future profits from the Tussionex ANDA, the Company will utilize its manufacturing capability to derive revenue directly from sales made by the Company, rather than through the Company’s commercial partner.
Net product sales	Net product sales Net product sales for the Company’s generic Tussionex product represent total gross product sales less gross to net sales adjustments. Gross to net sales adjustments include wholesaler fees and estimated allowances for product returns, government rebates, chargebacks and prompt-payment discounts to be incurred on the selling price of the respective product sales. Wholesale distribution fees are incurred on the management of these products by wholesalers and are recorded within net product sales based on definitive contractual agreements. The Company estimates gross to net sales adjustments for allowances for product returns, government rebates and chargebacks based upon analysis of third-party information, including information obtained from the Company’s third party logistics provider, or 3PL, with respect to its inventory levels and sell-through to the wholesalers’ customers, data available from third parties regarding prescriptions written for the Company’s products, as well as actual experience as reported by the Company’s customers and previous commercialization partners. Due to estimates and assumptions inherent in determining the amount of returns, rebates and chargebacks, the actual amount of returns and claims for rebates and chargebacks may be different from the estimates, at which time reserves would be adjusted accordingly. Allowances and accruals are recorded in the same period that the related revenue is recognized.
Product returns	Product returns Wholesalers’ contractual return rights are limited to defective product, product that was shipped in error, product ordered by customer in error, product returned due to overstock, product returned due to dating or product returned due to recall or other changes in regulatory guidelines. The return policy for expired product allows the wholesaler to return such product starting six months prior to expiry date to twelve months post expiry date. Generic Tussionex product returns are estimated based upon data available from sales of the Company’s product by its previous commercialization partner and from actual experience as reported by retailers. Historical trend of returns will be continually monitored and may result in future adjustments to such estimates. On August 26, 2014, the U.S. Drug Enforcement Agency reclassified the Company’s generic Tussionex from a Schedule III controlled substance to a Schedule II controlled substance which had the effect of requiring unsold product at the wholesalers and the 3PL to either be relabeled or returned. This new ruling was effective October 6, 2014. As such, the Company established reserves for the estimated returns of such product outstanding at the wholesalers as of October 6, 2014. The Company had no inventory labeled as Schedule III at the 3PL as of the effective date.
Medicaid rebates	Medicaid rebates The Company’s product is subject to state government-managed Medicaid programs whereby discounts and rebates are provided to participating state governments. Estimated rebates payable under governmental programs, including Medicaid, are recorded as a reduction of revenue at the time revenues are recorded. Calculations related to these rebate accruals are estimated based on sales of the Company’s product by its previous commercialization partner. Historical trend of Medicaid rebates will be continually monitored and may result in future adjustments to such estimates.
Wholesaler Chargebacks	Wholesaler Chargebacks The Company’s products are subject to certain programs with wholesalers whereby pricing on products is discounted below wholesaler list price to participating entities. These entities purchase products through wholesalers at the discounted price, and the wholesalers charge the difference between their acquisition cost and the discounted price back to the Company. Chargebacks are accounted for by establishing an accrual in an amount equal to the Company’s estimate of chargeback claims at the time of product sale based on information provided by the distributor. Due to estimates and assumptions inherent in determining the amount of chargebacks, the actual amount of claims for chargebacks may be different from estimates, which may result in adjustments to such reserves.
Manufacturing	Manufacturing Manufacturing revenue is derived from product manufactured by the Company and sold by the Company’s commercial partner under a development and manufacturing agreement. Manufacturing revenue is derived from a contractual supply price paid to the Company by the Company’s commercial partners.
Profit sharing	Profit sharing Profit sharing revenue is recorded as the product is sold by the Company’s commercial partner. The profit share is the Company’s share of the net profits after taking into account net revenue, which is gross product sales by the Company’s commercial partner, net of discounts, returns and allowances incurred by the Company’s commercial partner, less collaboration expenses.
Development revenue	Development revenue Development revenue from the development and manufacturing agreement has been recognized as the related services are completed. Development revenue in the form of milestone payments is recognized upon achievement of the related milestones and provided that collectability is reasonably assured and other revenue recognition criteria are met. Amounts received under cost reimbursement arrangements for production and research and development are recorded as offsets to the costs incurred and not recognized as revenue.
Research and development costs	Research and development costs: Research and development costs are charged to operations when incurred and include salaries and benefits, facilities costs, overhead costs, clinical trial costs, contract services, fees paid to regulatory authorities for review and approval of the Company’s product candidates and other related costs.
Income taxes	Income taxes: Income taxes are accounted for using the liability method, under which deferred taxes are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax laws that will be in effect when the differences are expected to reverse. Management evaluates the Company’s tax positions in accordance with guidance on accounting for uncertainty in income taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than not that the position will be sustained upon examination. As of December 31, 2014 and June 30, 2015, the Company had no uncertain tax positions that qualify for either recognition or disclosure in the consolidated financial statements. Tax benefits are recognized when it is more likely than not that a tax position will be sustained during an audit. Deferred tax assets are reduced by a valuation allowance if current evidence indicates that it is considered more likely than not that these benefits will not be realized. At December 31, 2014 and June 30, 2015, based on the level of historical operating results and projections for the taxable income for the future, the Company has determined that it is more likely than not that the deferred tax assets will not be realized. Accordingly, the Company has recorded a valuation allowance to reduce deferred tax assets to zero. The Company may not ever be able to realize the benefit of some or all of the federal and state loss carryforwards, either due to ongoing operating losses or due to ownership changes, which limit the usefulness of the loss carryforwards. At December 31, 2014, the Company had a net operating loss carry-forward of $86,551,000 and research and development credits of $2,029,000, which begin to expire in 2024. The Company analyzed the impact of any ownership change(s) under Section 382 of the Internal Revenue Code and determined that there would not be a material limitation in the utilization of the net operating loss carry-forwards and credits due to any ownership changes.
Warrants	Warrants: Certain warrants to purchase the Company’s redeemable convertible preferred stock are classified as liabilities and are recorded at fair value as estimated by the Company using third party valuation analyses. These warrants are revalued at each subsequent balance sheet date with fair value changes recognized as reductions or increases in other income (expense), net in the Company’s consolidated statement of operations.
Share-based compensation	Share-based compensation: Share-based compensation awards, including grants of employee stock options and restricted stock and modifications to existing stock options, are recognized in the statement of operations based on their fair values. Compensation expense related to awards to employees is recognized on a straight-line basis, based on the grant date fair value, over the requisite service period of the award, which is generally the vesting term. The fair value of the Company’s stock-based awards to employees and directors is estimated using the Black-Scholes option pricing model, which requires the input of subjective assumptions, including (1) the expected stock price volatility, (2) the expected term of the award, (3) the risk-free interest rate and (4) expected dividends. Due to the lack of a public market for the trading of its common stock and a lack of company-specific historical and implied volatility data, the Company has historically utilized third party valuation analyses to determine the fair value. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Ultimately, the actual expense recognized over the vesting period will only be for those options that vest.
Use of estimates	Use of estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates.
Segment information	Segment information: Operating segments are defined as components of an enterprise about which separate discrete information is available for evaluation by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company views its operations and manages its business in one operating segment, which is the development, manufacturing and commercialization of pharmaceuticals.
Liquidity	Liquidity: During 2014 and the three and six months ended June 30, 2015 and 2014, the Company produced operating losses and used cash to fund operations. Management intends to achieve profitability through revenue growth from pharmaceutical products developed with its extended-release technologies. The Company does not anticipate it will be profitable until after the launch of one or more of its ADHD product candidates. With the completion of the Company’s IPO in July 2015, management believes the Company presently has sufficient liquidity to continue to operate for at least the next 12 months.
Application of revised accounting standards	Application of revised accounting standards: In April 2012, the Jumpstart Our Business Startups Act, or the JOBS Act, was enacted in the United States. Section 107 of the JOBS Act provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has irrevocably elected not to avail itself of this extended transition period and, as a result, will adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies.
Recent accounting pronouncements	Recent accounting pronouncements: In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11, Inventory—Simplifying the Measurement of Inventory (Topic 330). The amendments in this ASU require an entity to measure inventory that is not measured using the last-in, first-out (LIFO) or retail inventory methods at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The amendments in this ASU are effective for fiscal years beginning after December 15, 2016, including interim periods within those years. The Company is evaluating this ASU and has not determined the effect of this standard on its ongoing financial reporting. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard will become effective for the Company on January 1, 2018. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. In June 2014, the FASB issued ASU No. 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. The Company does not expect the adoption of this standard will have a material impact on the Company’s financial statements. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014-15 is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. This ASU is for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early application is permitted for annual or interim reporting periods for which the financial statements have not previously been issued. The Company does not expect the adoption of this standard will have a material impact on the Company’s financial statements. From time to time, additional new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption.
Reclassifications	Reclassifications: Certain reclassifications have been made to the prior year’s consolidated financial statements to conform to the current year’s presentation.
Subsequent events	Subsequent events: The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure.

Net loss per share (Tables)

Net loss per share (Tables)	6 Months Ended
	Jun. 30, 2015
Net loss per share
Potentially dilutive securities not included in the calculation of dilutive EPS	June 30, June 30, 2015 2014 Series A Redeemable Convertible Preferred Stock (as converted) Series B Redeemable Convertible Preferred Stock (as converted) Series B-1 Redeemable Convertible Preferred Stock (as converted) Series C Redeemable Convertible Preferred Stock (as converted) Series C Redeemable Convertible Preferred Stock Warrants (as converted) Common Stock Warrants (as converted) Stock options

Fair value of financial instr26

Fair value of financial instruments (Tables)	6 Months Ended
	Jun. 30, 2015
Methodologies and significant inputs used in the determination of the fair value
Hierarchy for financial instruments measured at fair value on a recurring basis	Fair Value as of December 31, 2014 Level 1 Level 2 Level 3 Total (in thousands) Cash and cash equivalents $ $ — $ — $ Short term investments — — Earnout liability — — Series C Redeemable Preferred Stock Warrants — — $ $ — $ $ Fair Value as of June 30, 2015 Level 1 Level 2 Level 3 Total (in thousands) Cash and cash equivalents $ $ — $ — $ Short term investments — — — — Earnout liability — — Series C Redeemable Preferred Stock Warrants — — $ $ — $ $
Changes in Level 3 liabilities measured at fair value	Series C Warrants Series C Warrants Issued Earnout Issued With With Series C Redeemable Liability Senior Debt Preferred Stock Financing (in thousands) Balance at December 31, 2014 $ $ $ Additions during the period — — Changes in fair value ) Warrants exercised — — ) Balance at June 30, 2015 $ $ $
Earnout liability
Methodologies and significant inputs used in the determination of the fair value
Methodologies and significant inputs used in determination of fair value	December 31, 2014 March 31, 2015 June 30, 2015 Earnout Liability Earnout Liability Earnout Liability (Dollars in thousands) Date of Valuation 12/31/2014 3/31/2015 6/30/2015 Valuation Method Monte Carlo Monte Carlo Monte Carlo Volatility (annual) Risk-free rate (annual) .15% - 3.21% .14% - 3.00% .09% - 3.51% Time period from valuation until end of earnout .5 - 9.5 .375 - 9.375 .25 - 9.0 Earnout Target 1 $ $ $ Earnout Target 2 $ $ $ Discount rate 7.96% - 11.03% 8.18% - 11.04% 7.96% - 11.39% Fair value of liability at valuation date $ $ $
Series C Warrants Issued with Senior Debt | Derivative liability
Methodologies and significant inputs used in the determination of the fair value
Methodologies and significant inputs used in determination of fair value	Revalue Series C Revalue Series C Revalue Series C Warrants Issued with Warrants Issued with Warrants Issued with Senior Debt at Senior Debt at Senior Debt at December 31, 2014 March 31, 2015 June 30, 2015 (Dollars in thousands, except $5 Exercise Price) Date of Valuation 12/31/2014 3/31/2015 6/30/2015 Valuation Method PWERM and Option Pricing PWERM and Option Pricing PWERM and Option Pricing Dividend yield (per share) Exercise price $ $ $ Volatility (annual) Risk-free rate (annual) .25% - 2.47% .19% - 2.31% .14% - 2.83% Contractual term (years) 1 - 5 .75 - 5 .5 - 5 Number of warrants Fair value of liability at valuation date $ $ $
Series C Warrants Issued with Series C Redeemable Preferred Stock Financing | Derivative liability
Methodologies and significant inputs used in the determination of the fair value
Methodologies and significant inputs used in determination of fair value	Initial Valuation of December 31, 2014 Initial Valuation Initial Valuation Revalue All Warrants Revalue All Warrants Warrants Issued of January 2015 of February 2015 Issued With Series C Issued With Series C With Series C Warrants Issued With Warrants Issued With Redeemable Preferred Redeemable Preferred Redeemable Series C Redeemable Series C Redeemable Stock at Stock at Preferred Stock Preferred Stock Preferred Stock March 31, 2015 June 30, 2015 (Dollars in thousands, except $5 Exercise Price) Date of Valuation 12/31/2014 1/31/2015 2/28/2015 3/31/2015 6/30/2015 Valuation Method PWERM and Option Pricing PWERM and Option Pricing PWERM and Option Pricing PWERM and Option Pricing PWERM and Option Pricing Dividend yield (per share) Exercise price $ $ $ $ $ Volatility (annual) Risk-free rate (annual) .25% - 2.47% .25% - 2.47% .25% - 2.47% .19% - 2.31% .14% - 2.83% Contractual term (years) 1 - 5 1 - 5 1 - 5 .75 - 5 .5 - 5 Number of warrants Fair value of liability at valuation date $ $ $ $ $

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2015
Inventories
Schedule of Inventory	June 30, December 31, 2015 2014 (in thousands) Raw materials $ $ Work in progress — Finished goods Inventory at cost Inventory reserve ) ) $ $

Intangible assets, net (Tables)

Intangible assets, net (Tables)	6 Months Ended
	Jun. 30, 2015
Intangible assets, net
Schedule of finite lived intangible assets	June 30, December 31, 2015 2014 (in thousands) Proprietary modified-release drug delivery technology $ $ Tussionex ANDA CPI profit sharing Other Accumulated amortization ) ) $ $

Other assets (Tables)

Other assets (Tables)	6 Months Ended
	Jun. 30, 2015
Other assets
Schedule of Other assets	June 30, December 31, 2015 2014 (in thousands) Patents $ $ Deposits Deferred Offering Costs — $ $

Long-term debt (Tables)

Long-term debt (Tables)	6 Months Ended
	Jun. 30, 2015
Long-term debt.
Schedule of long-term debt	June 30, December 31, 2015 2014 (in thousands) Senior debt, net of discount of $1,462 and $1,743 $ $ 10% subordinated note payable to a related party Capital leases, maturing through August 2017 Less current portion ) ) Long-term debt $ $
Schedule of future principal payments of long-term debt, including capital leases	June 30, Period ending: 2015 (in thousands) 2015 $ 2016 2017 Future principal payments $ Less unamortized debt discount ) Less current portion of long-term debt ) Total long-term debt $

Common stock and redeemable c31

Common stock and redeemable convertible preferred stock (Tables)	6 Months Ended
	Jun. 30, 2015
Common stock and redeemable convertible preferred stock
Summary of authorized, issued and outstanding shares by class of stock	June 30, 2015 December 31, 2014 Issued and Issued and Authorized Outstanding Authorized Outstanding Shares Shares Shares Shares Common Stock Series A Preferred Stock Series B Preferred Stock Series B-1 Preferred Stock Series C Preferred Stock Total Shares Issued Treasury Stock ) Total Outstanding Shares Total Authorized Shares

Stock options, restricted sto32

Stock options, restricted stock and performance stock options (Tables)	6 Months Ended
	Jun. 30, 2015
Stock options, restricted stock and performance stock options
Schedule of weighted-average key assumptions used in determining fair value of options granted	Three Months Six Months Ended June 30, Ended June 30, 2015 2015 Estimated dividend yield % % Expected stock price volatility % % Weighted-average risk-free interest rate % % Expected life of option in years Weighted-average option fair value at grant $ $
Summary of outstanding and exercisable options	Weighted- Number of Average Intrinsic Options Exercise Price Value (in thousands) Outstanding at December 31, 2014 $ $ Exercisable at December 31, 2014 $ $ Granted Exercised ) Expired, forfeited or cancelled ) Outstanding at June 30, 2015 $ $ Exercisable at June 30, 2015 $ $

Organization and nature of op33

Organization and nature of operations (Details)	6 Months Ended
	Jun. 30, 2015item
Organization and nature of operations
Number of proprietary drug candidates	3

Organization and nature of op34

Organization and nature of operations (Details 2)	Jul. 28, 2015USD ($)$ / sharesshares	Jul. 10, 2015	Jun. 30, 2015USD ($)$ / sharesshares	Jul. 27, 2015USD ($)$ / sharesshares	Jul. 27, 2015USD ($)$ / sharesshares
Series C preferred stock | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing
Organization and nature of operations
Number of shares issued upon exercise of warrants			150,000	1,000,000
Exercise price of warrants (in dollars per share) | $ / shares			$ 5	$ 5	$ 5
Proceeds from exercise of warrants (in dollars) | $			$ 750,000	$ 5,000,000
Common Stock | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing | Cashless exercise of redeemable convertible preferred stock warrant into common stock
Organization and nature of operations
Shares issued on conversion	78,926
Common Stock | All series of redeemable convertible preferred stock | Conversion of redeemable convertible preferred stock into common stock
Organization and nature of operations
Shares issued on conversion	9,217,983
IPO | Common Stock
Organization and nature of operations
Shares sold	5,520,000
Public offering price (in dollars per share) | $ / shares	$ 15
Net proceeds from issuance of stock | $	$ 75,000,000
Over-allotment option | Common Stock
Organization and nature of operations
Shares sold	720,000
Subsequent event | Series C preferred stock | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing
Organization and nature of operations
Number of shares issued upon exercise of warrants					850,000
Exercise price of warrants (in dollars per share) | $ / shares				$ 5	$ 5
Proceeds from exercise of warrants (in dollars) | $					$ 4,250,000
Subsequent event | Common Stock
Organization and nature of operations
Reverse stock split ratio		0.4167

Organization and nature of op35

Organization and nature of operations (Details 3) - shares	Jul. 28, 2015	Jun. 30, 2015	Dec. 31, 2014
Organization and nature of operations
Common Stock, Shares Authorized		35,000,000	35,000,000
Subsequent event
Organization and nature of operations
Common Stock, Shares Authorized	100,000,000
Preferred Stock, Shares Authorized	5,000,000

Summary of significant accoun36

Summary of significant accounting policies (Details)	6 Months Ended
	Jun. 30, 2015USD ($)segmentsubsidiaryproduct	Jun. 29, 2015	Dec. 31, 2014USD ($)subsidiary	Oct. 06, 2014USD ($)
Significant accounting policies disclosures
Uncertain tax positions	$ 0		$ 0
Deferred tax assets, net of valuation allowance	$ 0		0
Net operating loss carry-forward			86,551,000
Number of operating segments | segment	1
Minimum number of product candidate launches anticipated before profitability anticipated | product	1
Research and development credits
Significant accounting policies disclosures
Tax credit carry-forward			$ 2,029,000
Minimum
Significant accounting policies disclosures
Intangible asset - useful life	10 years
Maximum
Significant accounting policies disclosures
Intangible asset - useful life	20 years
Neostx, Inc. ("NTX")
Significant accounting policies disclosures
Ownership acquired (as a percent)		0.10%
Third party logistics provider - 3PL
Significant accounting policies disclosures
Inventory labeled as Schedule III controlled substance that is solely located at the third party logistics provider (does not include inventory at wholesalers)				$ 0
Wholly-owned subsidiaries
Significant accounting policies disclosures
Number of wholly-owned subsidiaries | subsidiary	2		2
Percentage ownership by parent (as a percent)	100.00%		100.00%
Neostx, Inc. ("NTX")
Significant accounting policies disclosures
Percentage ownership by parent (as a percent)			99.90%

Net loss per share (Details)

Net loss per share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Series A preferred stock
Net loss per share disclosures
Potentially dilutive shares not included in the calculation of diluted EPS (as converted if related to warrants or redeemable convertible preferred stock)	487,494	487,494	487,494	487,494
Series B preferred stock
Net loss per share disclosures
Potentially dilutive shares not included in the calculation of diluted EPS (as converted if related to warrants or redeemable convertible preferred stock)	1,297,100	1,297,100	1,297,100	1,297,100
Series B-1 preferred stock
Net loss per share disclosures
Potentially dilutive shares not included in the calculation of diluted EPS (as converted if related to warrants or redeemable convertible preferred stock)	2,275,733	2,275,733	2,275,733	2,275,733
Series C preferred stock
Net loss per share disclosures
Potentially dilutive shares not included in the calculation of diluted EPS (as converted if related to warrants or redeemable convertible preferred stock)	4,803,492	3,022,306	4,803,492	3,022,306
Warrants | Series C Redeemable Convertible Preferred Stock Warrants
Net loss per share disclosures
Potentially dilutive shares not included in the calculation of diluted EPS (as converted if related to warrants or redeemable convertible preferred stock)	819,650	25,000	819,650	25,000
Warrants | Common Stock Warrant
Net loss per share disclosures
Potentially dilutive shares not included in the calculation of diluted EPS (as converted if related to warrants or redeemable convertible preferred stock)	337,133	337,133	337,133	337,133
Employee stock options
Net loss per share disclosures
Potentially dilutive shares not included in the calculation of diluted EPS (as converted if related to warrants or redeemable convertible preferred stock)	776,910	404,175	776,910	404,175

Fair value of financial instr38

Fair value of financial instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Hierarchy for financial instruments measured at fair value on a recurring basis
Short term investments		$ 3,000
Earnout liability	$ 356	756
Recurring basis | Fair Value
Hierarchy for financial instruments measured at fair value on a recurring basis
Cash and cash equivalents	25,631	13,343
Short term investments		3,000
Earnout liability	356	756
Total assets and liabilities	29,921	18,888
Recurring basis | Fair Value | Series C Redeemable Convertible Preferred Stock Warrants
Hierarchy for financial instruments measured at fair value on a recurring basis
Liabilities	3,934	1,789
Recurring basis | Fair Value | Level 1
Hierarchy for financial instruments measured at fair value on a recurring basis
Cash and cash equivalents	25,631	13,343
Short term investments		3,000
Total assets and liabilities	25,631	16,343
Recurring basis | Fair Value | Level 3
Hierarchy for financial instruments measured at fair value on a recurring basis
Earnout liability	356	756
Total assets and liabilities	4,290	2,545
Recurring basis | Fair Value | Level 3 | Series C Redeemable Convertible Preferred Stock Warrants
Hierarchy for financial instruments measured at fair value on a recurring basis
Liabilities	$ 3,934	$ 1,789

Fair value of financial instr39

Fair value of financial instruments (Details 2) - Recurring basis - Level 3 - Derivative liability - Series C Warrants Issued with Senior Debt - Probability-Weighted Expected Return and Option Pricing - USD ($) $ / shares in Units, $ in Thousands	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Methodologies and significant inputs used in the determination of the fair value
Dividend yield (in dollars per share)	$ 0	$ 0	$ 0
Exercise price (in dollars per share)	$ 5	$ 5	$ 5
Volatility (as a percent)	60.00%	60.00%	60.00%
Number of warrants (in shares)	170,000	170,000	170,000
Fair value of liability at valuation date	$ 573	$ 486	$ 454
Minimum
Methodologies and significant inputs used in the determination of the fair value
Risk-free rate (as a percent)	0.14%	0.19%	0.25%
Contractual term	6 months	9 months	1 year
Maximum
Methodologies and significant inputs used in the determination of the fair value
Risk-free rate (as a percent)	2.83%	2.31%	2.47%
Contractual term	5 years	5 years	5 years

Fair value of financial instr40

Fair value of financial instruments (Details 3) - Recurring basis - Level 3 - Derivative liability - Series C Warrants Issued with Series C Redeemable Preferred Stock Financing - Probability-Weighted Expected Return and Option Pricing - USD ($) $ / shares in Units, $ in Thousands	Jun. 30, 2015	Mar. 31, 2015	Feb. 28, 2015	Jan. 31, 2015	Dec. 31, 2014
Methodologies and significant inputs used in the determination of the fair value
Dividend yield (in dollars per share)	$ 0	$ 0	$ 0	$ 0	$ 0
Exercise price (in dollars per share)	$ 5	$ 5	$ 5	$ 5	$ 5
Volatility (as a percent)	60.00%	60.00%	60.00%	60.00%	60.00%
Number of warrants (in shares)	1,797,185	1,947,185	606,312	590,906	749,967
Fair value of liability at valuation date	$ 3,361	$ 3,233	$ 1,079	$ 1,052	$ 1,335
Minimum
Methodologies and significant inputs used in the determination of the fair value
Risk-free rate (as a percent)	0.14%	0.19%	0.25%	0.25%	0.25%
Contractual term	6 months	9 months	1 year	1 year	1 year
Maximum
Methodologies and significant inputs used in the determination of the fair value
Risk-free rate (as a percent)	2.83%	2.31%	2.47%	2.47%	2.47%
Contractual term	5 years	5 years	5 years	5 years	5 years

Fair value of financial instr41

Fair value of financial instruments (Details 4) - Recurring basis - Level 3 - Earnout liability - Monte Carlo - USD ($) $ in Thousands	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Methodologies and significant inputs used in the determination of the fair value
Volatility (as a percent)	50.00%	50.00%	50.00%
Earnout Target 1	$ 13,700	$ 13,700	$ 13,700
Earnout Target 2	18,200	18,200	18,200
Fair value of liability at valuation date	$ 356	$ 314	$ 756
Minimum
Methodologies and significant inputs used in the determination of the fair value
Risk-free rate (as a percent)	0.09%	0.14%	0.15%
Time period from valuation until end of earnout	3 months	4 months 15 days	6 months
Discount rate	7.96%	8.18%	7.96%
Maximum
Methodologies and significant inputs used in the determination of the fair value
Risk-free rate (as a percent)	3.51%	3.00%	3.21%
Time period from valuation until end of earnout	9 years	9 years 4 months 15 days	9 years 6 months
Discount rate	11.39%	11.04%	11.03%

Fair value of financial instr42

Fair value of financial instruments (Details 5) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)
Earnout liability
Changes in Level 3 liabilities measured at fair value
Balance at beginning of year	$ 756
Changes in fair value	(400)
Balance at end of period	356
Derivative liability | Series C Warrants Issued with Senior Debt
Changes in Level 3 liabilities measured at fair value
Balance at beginning of year	454
Changes in fair value	119
Balance at end of period	573
Derivative liability | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing
Changes in Level 3 liabilities measured at fair value
Balance at beginning of year	1,335
Additions	2,131
Changes in fair value	176
Warrants exercised	(281)
Balance at end of period	$ 3,361

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Inventories
Raw materials	$ 714	$ 646
Work in progress		82
Finished Goods	1,270	1,499
Inventory at cost	1,984	2,227
Inventory reserve	(281)	(196)
Inventories net	$ 1,703	$ 2,031

Sale-leaseback transaction (Det

Sale-leaseback transaction (Details)	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended	14 Months Ended
	Mar. 31, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Dec. 31, 2013USD ($)	Mar. 31, 2014tranche	Dec. 31, 2014USD ($)
Sale-leaseback transaction
Proceeds from sale of assets	$ 795,000					$ 5,500,000
Number of tranches | tranche							5
Deferred gain						$ 2,700,000		$ 116,000
Lease term				42 months
Net gain on sale leaseback transaction		$ 208,000	$ 208,000	$ 416,000	$ 408,000

Intangible assets, net (Details

Intangible assets, net (Details) - USD ($)	Aug. 28, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Intangible assets disclosures
Intangible assets, excluding patents, gross		$ 22,756,000		$ 22,756,000		$ 22,756,000
Accumulated amortization		(5,336,000)		(5,336,000)		(4,589,000)
Intangible assets, excluding patents, net		17,420,000		17,420,000		18,167,000
Amortization of Intangible Assets, Excluding Patents				747,000	$ 404,000
Proprietary modified-release drug delivery technology
Intangible assets disclosures
Intangible assets, excluding patents, gross		15,600,000		$ 15,600,000		15,600,000
Useful life				20 years
Amortization of Intangible Assets, Excluding Patents		195,000	$ 195,000	$ 390,000	390,000
Tussionex ANDA
Intangible assets disclosures
Intangible assets, excluding patents, gross		4,829,000		4,829,000		4,829,000
Payment made to acquire asset	$ 4,200,000
Legal fees	90,000
Earnout fair value	589,000
Decrease in the value because of reclassification from Schedule III to Schedule II				400,000
Tussionex ANDA | Other income (expense)
Intangible assets disclosures
Increase (decrease) in fair value of earnout liability		42,000
CPI Profit Sharing
Intangible assets disclosures
Intangible assets, excluding patents, gross		2,043,000		2,043,000		2,043,000
Payment made to acquire asset	2,000,000
Legal fees	$ 43,000
Other
Intangible assets disclosures
Intangible assets, excluding patents, gross		284,000		284,000		$ 284,000
Tussionex ANDA and CPI profit sharing
Intangible assets disclosures
Useful life	10 years
Amortization of Intangible Assets, Excluding Patents		$ 171,000	$ 0	$ 343,000	$ 0

Other assets (Details)

Other assets (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Other assets disclosures
Patents for product candidates	$ 2,161,000		$ 2,161,000		$ 2,051,000
Deposits	178,000		178,000		176,000
Deferred Offering Costs	1,132,000		1,132,000
Other assets	3,471,000		3,471,000		$ 2,227,000
Amortization of patents	6,000	$ 0	12,000	$ 0
Generic Tussionex product
Other assets disclosures
Patents being amortized	$ 231,000		$ 231,000
Useful life			10 years

Long-term debt (Details)

Long-term debt (Details)	Jul. 21, 2014USD ($)	Jun. 30, 2015USD ($)$ / shares	Mar. 31, 2015USD ($)	Sep. 30, 2014USD ($)shares	Mar. 31, 2014USD ($)shares	Jun. 30, 2015USD ($)$ / shares	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)item$ / shares	Jun. 30, 2014USD ($)	Jul. 31, 2015	Dec. 31, 2014USD ($)	Jul. 28, 2015$ / sharesshares	Dec. 31, 2013USD ($)
Long-term debt disclosures
Long-term debt and capital lease obligations, including current maturities		$ 34,455,000				$ 34,455,000		$ 34,455,000			$ 24,774,000
Less current portion		(3,257,000)				(3,257,000)		(3,257,000)			(1,653,000)
Long-term debt, net of current portion		31,198,000				31,198,000		31,198,000			23,121,000
Unamortized discount on debt		1,462,000				1,462,000		1,462,000
Draws from senior debt								10,000,000	$ 10,000,000
Fair value of warrants		3,934,000				3,934,000		3,934,000			1,789,000
Interest paid								1,106,000	907,000
Term Loan
Long-term debt disclosures
Total amount available under facility		$ 10,000,000				$ 10,000,000		$ 10,000,000
Debt term								4 years
Interest rate (as a percent)		9.50%				9.50%		9.50%
Fee payable at maturity								$ 250,000
Repayment of outstanding amount					$ 10,000,000
Interest paid					697,000
Gains (losses) on early prepayment					(445,000)
Prepayment penalty					98,000
Write-off of unamortized exit fee					154,000
Write-off of unamortized loan cost					193,000
Series C Warrants Issued with Senior Debt | Other income (expense)
Long-term debt disclosures
Fair value adjustment of warrants (reduction) increase						$ 87,000	$ 0	$ 119,000	0
Series C preferred stock
Long-term debt disclosures
Current price (in dollars per share) | $ / shares		$ 5				$ 5		$ 5
Senior debt
Long-term debt disclosures
Long-term debt and capital lease obligations, including current maturities		$ 24,600,000				$ 24,600,000		$ 24,600,000			14,320,000
Unamortized discount on debt		1,462,000				1,462,000		1,462,000			1,743,000
Total amount available under facility		25,000,000				25,000,000		$ 25,000,000
Number of draws available per debt agreement | item								4
Term of interest and principal payments, which commence at a later date								30 months
End of term charge		$ 1,100,000				1,100,000		$ 1,100,000
End of term charge amortization total						76,000		151,000
Debt discount amortization						$ 65,000		$ 129,000
Senior debt | Tranche 1
Long-term debt disclosures
Draws from senior debt					10,000,000
Interest rate (as a percent)		9.00%				9.00%		9.00%
Residual proceeds allocation					$ 9,876,000
Senior debt | Tranche 1 | Series C Warrants Issued with Senior Debt
Long-term debt disclosures
Warrants issued (in shares) | shares					60,000
Fair value of warrants					$ 124,000
Senior debt | Tranche 2
Long-term debt disclosures
Draws from senior debt				$ 5,000,000
Interest rate (as a percent)		10.50%				10.50%		10.50%
Residual proceeds allocation				$ 4,752,000
Senior debt | Tranche 2 | Series C Warrants Issued with Senior Debt
Long-term debt disclosures
Warrants issued (in shares) | shares				110,000
Fair value of warrants				$ 248,000
Senior debt | Tranche 3
Long-term debt disclosures
Draws from senior debt			$ 5,000,000
Interest rate (as a percent)		10.50%				10.50%		10.50%
Senior debt | Tranche 4
Long-term debt disclosures
Draws from senior debt		$ 5,000,000
Interest rate (as a percent)		9.00%				9.00%		9.00%
10% subordinated note payable | Essex Capital Corporation, as Investor
Long-term debt disclosures
Long-term debt and capital lease obligations, including current maturities		$ 6,644,000				$ 6,644,000		$ 6,644,000			6,446,000
Interest rate (as a percent)		10.00%				10.00%		10.00%
Aggregate principal amount		$ 5,935,000				$ 5,935,000		$ 5,935,000			5,935,000
Reduced interest rate per amendment to note (as a percent)										6.00%
Payment for legal settlement	$ 128,000
Interest accrued								709,000			511,000
Capital leases
Long-term debt disclosures
Long-term debt and capital lease obligations, including current maturities		$ 3,211,000				3,211,000		$ 3,211,000			$ 4,008,000
Existing assets under sale-leaseback transaction													$ 5,500,000
Newly acquired assets under sale-leaseback transaction					$ 795,000
Imputed interest rate on lease (as a percent)								14.50%
Interest expense						$ 123,000	$ 172,000	$ 261,000	$ 338,000
Mandatory conversion, initial public offering | Common Stock Warrant
Long-term debt disclosures
Warrants issued (in shares) | shares												70,833
Exercise price of warrants (in dollars per share) | $ / shares												$ 12

Long-term debt (Details 2)

Long-term debt (Details 2) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Future principal payments of long-term debt, including capital leases
2,015	$ 3,257
2,016	17,357
2,017	15,303
Future principal payments, including capital leases	35,917
Less unamortized debt discount	(1,462)
Less current portion	(3,257)	$ (1,653)
Long-term debt, net of current portion	$ 31,198	$ 23,121

Common stock and redeemable c49

Common stock and redeemable convertible preferred stock (Details) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Summary of the authorized, issued and outstanding shares by class of stock
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Redeemable preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized shares	35,000,000	35,000,000
Total Authorized Shares	62,500,000	62,500,000
Common stock, issued shares	887,414	938,859
Total Shares Issued	22,160,798	19,437,307
Total Outstanding Shares	22,160,798	19,381,402
Common stock, outstanding shares	887,414	882,954
Series A preferred stock
Summary of the authorized, issued and outstanding shares by class of stock
Redeemable preferred stock, authorized shares	1,170,000	1,170,000
Redeemable preferred stock, issued shares	1,170,000	1,170,000
Redeemable preferred stock, outstanding shares	1,170,000	1,170,000
Series B preferred stock
Summary of the authorized, issued and outstanding shares by class of stock
Redeemable preferred stock, authorized shares	4,000,000	4,000,000
Redeemable preferred stock, issued shares	3,113,099	3,113,099
Redeemable preferred stock, outstanding shares	3,113,099	3,113,099
Series B-1 preferred stock
Summary of the authorized, issued and outstanding shares by class of stock
Redeemable preferred stock, authorized shares	8,830,000	8,830,000
Redeemable preferred stock, issued shares	5,461,802	5,461,802
Redeemable preferred stock, outstanding shares	5,461,802	5,461,802
Series C preferred stock
Summary of the authorized, issued and outstanding shares by class of stock
Redeemable preferred stock, authorized shares	13,500,000	13,500,000
Redeemable preferred stock, issued shares	11,528,483	8,753,547
Redeemable preferred stock, outstanding shares	11,528,483	8,753,547
Common Stock
Summary of the authorized, issued and outstanding shares by class of stock
Treasury Stock	0	(55,905)

Common stock and redeemable c50

Common stock and redeemable convertible preferred stock (Details 2) $ / shares in Units, $ in Millions	Jul. 28, 2015USD ($)$ / sharesshares	Jul. 10, 2015	Jun. 30, 2015$ / sharesshares	Dec. 31, 2014$ / sharesshares
Public offerings and related transactions
Common stock, authorized shares			35,000,000	35,000,000
Common stock, par value (in dollars per share) | $ / shares			$ 0.001	$ 0.001
Conversion of redeemable convertible preferred stock warrant into common stock warrant | Series C Warrants Issued with Senior Debt
Public offerings and related transactions
Warrants issued (in shares)	170,000
Conversion of redeemable convertible preferred stock warrant into common stock warrant | Common Stock Warrant
Public offerings and related transactions
Warrants issued (in shares)	70,833
Common Stock | IPO
Public offerings and related transactions
Shares sold	5,520,000
Public offering price (in dollars per share) | $ / shares	$ 15
Net proceeds from issuance of stock | $	$ 75
Common Stock | Over-allotment option
Public offerings and related transactions
Shares sold	720,000
Common Stock | Conversion of redeemable convertible preferred stock into common stock | All series of redeemable convertible preferred stock
Public offerings and related transactions
Shares issued on conversion	9,217,983
Common Stock | Cashless exercise of redeemable convertible preferred stock warrant into common stock | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing
Public offerings and related transactions
Shares converted	947,185
Shares issued on conversion	78,926
Subsequent event
Public offerings and related transactions
Preferred stock, authorized shares	5,000,000
Preferred stock, par value (in dollars per share) | $ / shares	$ 0.001
Common stock, authorized shares	100,000,000
Common stock, par value (in dollars per share) | $ / shares	$ 0.001
Subsequent event | Common Stock
Public offerings and related transactions
Reverse stock split ratio		0.4167

Common stock and redeemable c51

Common stock and redeemable convertible preferred stock (Details 3)	Nov. 01, 2017USD ($)installment$ / shares	Jun. 30, 2015USD ($)$ / sharesshares	Jul. 27, 2015USD ($)$ / sharesshares	Jul. 27, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)shares	Aug. 27, 2015$ / sharesshares	Mar. 31, 2014USD ($)shares	Jun. 30, 2015USD ($)$ / sharesshares	Mar. 31, 2015USD ($)$ / sharesshares	Feb. 28, 2015USD ($)shares	Dec. 31, 2014USD ($)shares	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)$ / sharesshares	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2012$ / sharesshares
Preferred stock financings
Fair value of warrants		$ 3,934,000			$ 1,789,000			$ 3,934,000			$ 1,789,000		$ 3,934,000		$ 1,789,000
Redeemable preferred stock value		$ 104,249,000			90,149,000			$ 104,249,000			90,149,000		104,249,000		90,149,000
Common stock warrants issued with Series B-1 redeemable preferred stock financing
Preferred stock financings
Proceeds from exercises of warrants													$ 0		0
Warrants to purchase stock outstanding (in shares) | shares		337,133						337,133					337,133
Series C Warrants Issued with Series C Redeemable Preferred Stock Financing
Preferred stock financings
Fair value adjustment of warrants (reduction) increase								$ 129,000	$ (234,000)				$ (105,000)
Decrease in warrant liability for warrants exercised		$ 281,000
Series C, Series B-1, and Series B preferred stock
Preferred stock financings
Redemption value (in dollars per share) | $ / shares		$ 5						$ 5					$ 5
Maximum redemption payment in event of deemed liquidation event		$ 127,826,000			126,831,000			$ 127,826,000			126,831,000		$ 127,826,000		126,831,000
Series C preferred stock
Preferred stock financings
Accretion to redemption value								335,000				$ 21,000	570,000	$ 45,000
Redeemable preferred stock value		$ 54,648,000			42,131,000			$ 54,648,000			42,131,000		$ 54,648,000		42,131,000
Series C preferred stock | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing
Preferred stock financings
Exercise price of warrants (in dollars per share) | $ / shares		$ 5	$ 5	$ 5				$ 5					$ 5
Proceeds from exercises of warrants		$ 750,000	$ 5,000,000
Shares issued | shares		150,000	1,000,000
Series B-1 preferred stock
Preferred stock financings
Dividend accrual rate (as a percent)													8.00%
Original issue price (in dollars per share) | $ / shares		$ 5						$ 5					$ 5
Accretion to redemption value								$ 165,000				161,000	$ 329,000	354,000
Redeemable preferred stock value		$ 33,803,000			32,391,000			33,803,000			32,391,000		33,803,000		32,391,000
Series B preferred stock
Preferred stock financings
Accretion to redemption value								86,000				$ 83,000	171,000	$ 184,000
Redeemable preferred stock value		$ 14,730,000			$ 14,559,000			$ 14,730,000			$ 14,559,000		14,730,000		14,559,000
Redeemable convertible preferred stock financing | Series C preferred stock
Preferred stock financings
Shares issued | shares					1,499,935		1,986,586	2,624,936	2,624,936		1,499,935
Proceeds from share issuance					$ 7,500,000		$ 9,900,000			$ 20,600,000	$ 7,500,000		$ 13,100,000
Redeemable preferred stock value					6,108,000				$ 10,916,000		6,108,000				6,108,000
Stock issuance legal fees					$ 57,000				$ 78,000		$ 57,000				57,000
Redeemable convertible preferred stock financing | Series C preferred stock | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing
Preferred stock financings
Warrants issued (in shares) | shares					749,967				1,197,218		749,967		1,197,218
Fair value of warrants					$ 1,335,000				$ 2,131,000		$ 1,335,000				$ 1,335,000
Redeemable convertible preferred stock financing | Series B-1 preferred stock | Common stock warrants issued with Series B-1 redeemable preferred stock financing
Preferred stock financings
Warrants issued (in shares) | shares																389,474
Exercise price of warrants (in dollars per share) | $ / shares																$ 0.0024
Upon investor purchase of pro-rata share of stock | Redeemable convertible preferred stock financing | Series C preferred stock | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing
Preferred stock financings
Exercise price of warrants (in dollars per share) | $ / shares									$ 5
Number of shares that can be purchased with each warrant | shares									1
Number of purchased shares that entitle holder to receive a warrant | shares										2
Forecast | Series C, Series B-1, and Series B preferred stock
Preferred stock financings
Original issue price (in dollars per share) | $ / shares	$ 5
Number of installments for redemption | installment	3
Notice period for redemption	60 days
Forecast | Series C preferred stock
Preferred stock financings
Minimum redemption value upon initial redemption date	$ 57,642,000
Forecast | Series B-1 preferred stock
Preferred stock financings
Minimum redemption value upon initial redemption date	27,309,000
Forecast | Series B preferred stock
Preferred stock financings
Minimum redemption value upon initial redemption date	$ 15,565,000
Subsequent event | Common stock warrants issued with Series B-1 redeemable preferred stock financing | Common Stock
Preferred stock financings
Number of shares issued upon exercise of warrants | shares						99,062
Exercise price of warrants (in dollars per share) | $ / shares						$ 0.0024
Subsequent event | Series C preferred stock | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing
Preferred stock financings
Exercise price of warrants (in dollars per share) | $ / shares			$ 5	$ 5
Proceeds from exercises of warrants				$ 4,250,000
Shares issued | shares				850,000

Stock options, restricted sto52

Stock options, restricted stock and performance stock options (Details) - $ / shares	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Jul. 27, 2015	Dec. 31, 2014	Nov. 30, 2009
Employee stock options | Performance based
Stock options, restricted stock and performance stock options
Vesting period		3 years
Stock options
Stock options, restricted stock and performance stock options
Expiration period		10 years
Expiration period of unexercised vested award after termination of employment		90 days
Weighted average key assumptions used in determining the fair value of options granted
Expected dividend yield (as a percent)	0.00%	0.00%
Expected stock price volatility (as a percent)	60.00%	60.00%
Expected life	5 years	5 years
Weighted-average option fair value at grant (in dollars per share)	$ 5.568	$ 5.235
Stock options | Weighted average
Weighted average key assumptions used in determining the fair value of options granted
Risk-free interest rate (as a percent)	1.70%	1.67%
Neos Therapeutics, Inc. 2009 Equity Plan
Stock options, restricted stock and performance stock options
Shares reserved for issuance under the plan	1,375,037	1,375,037			688,059
Remaining shares available for grant	7,717	7,717		277,298
Subsequent event | Neos Therapeutics, Inc. 2015 Stock Option and Incentive Plan
Stock options, restricted stock and performance stock options
Shares reserved for issuance under the plan			767,330

Stock options, restricted sto53

Stock options, restricted stock and performance stock options (Details 2) - Stock options - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Share-based compensation
Unrecognized compensation cost	$ 1,708,000		$ 1,708,000
Weighted-average remaining contractual life			8 years 9 months 18 days
Shares issued upon the exercise of outstanding stock options			4,443
Proceeds received upon the exercise of outstanding stock options			$ 4,000
Tax benefit from the exercise of stock options			0
Selling, general and administrative expense
Share-based compensation
Total compensation cost	$ 115,000	$ 21,000	$ 189,000	$ 32,000

Stock options, restricted sto54

Stock options, restricted stock and performance stock options (Details 3) - Stock options - USD ($) $ / shares in Units, $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2015	Dec. 31, 2014
Summary of number of outstanding and exercisable options and the activity
Outstanding at beginning of year (in shares)			511,775
Exercisable at beginning of year (in shares)			150,109
Granted (in shares)			271,661
Exercised (in shares)			(4,443)
Expired, forfeited or cancelled (in shares)			(2,083)
Outstanding at end of period (in shares)	776,910	511,775	776,910	511,775
Exercisable at end of period (in shares)	177,200	150,109	177,200	150,109
Summary of weighted-average exercise price of outstanding and exercisable options and the activity
Outstanding at beginning of year (in dollars per share)			$ 3.684
Exercisable at beginning of year (in dollars per share)			1.467
Granted (in dollars per share)			10.096
Exercised (in dollars per share)			0.877
Expired, forfeited or cancelled (in dollars per share)			3.689
Outstanding at end of period (in dollars per share)	$ 5.942	$ 3.684	5.942	$ 3.684
Exercisable at end of period (in dollars per share)	$ 1.716	$ 1.467	$ 1.716	$ 1.467
Summary of intrinsic value of outstanding and exercisable options and other information
Intrinsic value, outstanding options	$ 5,359	$ 2,883	$ 5,359	$ 2,883
Intrinsic value, exercisable options	$ 1,971	$ 1,179	$ 1,971	$ 1,179
Weighted average remaining contractual life of options outstanding	8 years 9 months 18 days	8 years 8 months 12 days
Weighted-average remaining contractual life of options exercisable	7 years 1 month 6 days	7 years 3 months 18 days
Minimum
Summary of weighted-average exercise price of outstanding and exercisable options and the activity
Granted (in dollars per share)			$ 9.32	$ 2.91
Maximum
Summary of weighted-average exercise price of outstanding and exercisable options and the activity
Granted (in dollars per share)			$ 10.73	$ 7.49

Stock options, restricted sto55

Stock options, restricted stock and performance stock options (Details 4) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2013	Dec. 31, 2014
Stock options, restricted stock and performance stock options
Vested restricted stock awards settled (in shares)			0
Restricted stock
Stock options, restricted stock and performance stock options
Shares issued					149,244
Grant date fair value of shares issued (in dollars per share)					$ 2.55
Stock compensation cost	$ 22,000	$ 22,000	$ 45,000	$ 45,000
Unrecognized compensation cost	$ 212,000	$ 301,000	$ 212,000	$ 301,000
Nonvested restricted stock outstanding (in shares)	106,537		106,537			106,537
Weighted average fair value of nonvested restricted stock (in dollars per share)	$ 2.55		$ 2.55			$ 2.55
Shares granted			0
Shares vested			0
Shares forfeited			0
Restricted stock | Minimum
Stock options, restricted stock and performance stock options
Vesting period			1 month
Restricted stock | Maximum
Stock options, restricted stock and performance stock options
Vesting period			48 months
Restricted stock | Immediate vesting
Stock options, restricted stock and performance stock options
Shares issued					7,195
Restricted stock | Four equal tranches
Stock options, restricted stock and performance stock options
Vesting period					48 months
Shares issued					142,049

Treasury stock (Details)

Treasury stock (Details) - Common Stock - $ / shares	Feb. 19, 2015	Jun. 30, 2015	Dec. 31, 2013
Treasury stock disclosures
Cancellation of treasury stock	55,905	55,905
Original purchase price of treasury stock (in dollars per share)			$ 0.002

Commitments and contingencies (

Commitments and contingencies (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Operating lease:
Deferred rent balance	$ 1,172,000		$ 1,172,000		$ 1,189,000
Rent expense, share of operating expenses	60,000	$ 59,000	119,000	$ 126,000
Rent expense, excluding share of operating expenses	$ 218,000	$ 229,000	$ 436,000	$ 455,000

License agreements (Details)

License agreements (Details) - Jul. 23, 2014 - Shire LLC - Maximum - USD ($) $ in Millions	Total
License agreements disclosure
Non refundable license fee	$ 1
Maximum period for payment of license fee after regulatory approval by FDA	30 days

Related party transactions (Det

Related party transactions (Details)	Jul. 21, 2014USD ($)	Jul. 31, 2015	Jun. 30, 2015USD ($)	Dec. 31, 2014USD ($)	Mar. 31, 2014USD ($)	Dec. 31, 2013USD ($)item	Dec. 31, 2012USD ($)
10% subordinated note payable | Essex Capital Corporation, as Investor
Related party transactions disclosures
Aggregate principal amount			$ 5,935,000	$ 5,935,000
Payment for legal settlement	$ 128,000
Interest rate (as a percent)			10.00%
Debt Instrument, Reduced Interest Rate During Period Per Amendment		6.00%
Capital leases
Related party transactions disclosures
Maximum amount authorized under sale and leaseback transaction							$ 6,500,000
Number of transactions | item						4
Sale and leaseback amount due						$ 5,500,000
Sale and leaseback additional amount raised					$ 795,000
Essex Capital Corporation
Related party transactions disclosures
Payment for legal settlement	$ 256,000

Subsequent events (Details)

Subsequent events (Details)	Jul. 10, 2015	Jul. 09, 2015$ / sharesshares	Jun. 30, 2015USD ($)$ / sharesshares	Jul. 27, 2015USD ($)$ / sharesshares	Jul. 27, 2015USD ($)$ / sharesshares	Aug. 27, 2015$ / sharesshares	Jun. 30, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)shares	Jul. 28, 2015shares	Nov. 30, 2009shares
Subsequent events disclosures
Common stock, authorized shares			35,000,000				35,000,000	35,000,000
Neos Therapeutics, Inc. 2009 Equity Plan
Subsequent events disclosures
Shares reserved for issuance under the plan			1,375,037				1,375,037			688,059
Common stock warrants issued with Series B-1 redeemable preferred stock financing
Subsequent events disclosures
Proceeds from exercise of warrants (in dollars) | $							$ 0	$ 0
Series C preferred stock | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing
Subsequent events disclosures
Number of shares issued upon exercise of warrants			150,000	1,000,000
Exercise price of warrants (in dollars per share) | $ / shares			$ 5	$ 5	$ 5		$ 5
Proceeds from exercise of warrants (in dollars) | $			$ 750,000	$ 5,000,000
Subsequent event
Subsequent events disclosures
Common stock, authorized shares									100,000,000
Preferred stock, authorized shares									5,000,000
Subsequent event | Neos Therapeutics, Inc. 2015 Stock Option and Incentive Plan
Subsequent events disclosures
Shares reserved for issuance under the plan				767,330	767,330
Subsequent event | Non-employee stock option | Neos Therapeutics, Inc. 2015 Stock Option and Incentive Plan | Director | Effective Upon Completion of Initial Public Offering
Subsequent events disclosures
Grants (in shares)		37,500
Exercise price (in dollars per share) | $ / shares		$ 15
Subsequent event | Common Stock
Subsequent events disclosures
Reverse stock split ratio	0.4167
Subsequent event | Common stock warrants issued with Series B-1 redeemable preferred stock financing | Common Stock
Subsequent events disclosures
Number of shares issued upon exercise of warrants						99,062
Exercise price of warrants (in dollars per share) | $ / shares						$ 0.0024
Subsequent event | Series C preferred stock | Series C Warrants Issued with Series C Redeemable Preferred Stock Financing
Subsequent events disclosures
Number of shares issued upon exercise of warrants					850,000
Exercise price of warrants (in dollars per share) | $ / shares				$ 5	$ 5
Proceeds from exercise of warrants (in dollars) | $					$ 4,250,000