TherapeuticsMD (TXMD) 10-Q 5 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 04, 2013
Document And Entity Information	'	'
Entity Registrant Name	'TherapeuticsMD, Inc.	'
Entity Central Index Key	'0000025743	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	144,968,007
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Current Assets:	'	'
Cash	$59,572,347	$1,553,474
Accounts receivable, net of allowances of $90,403 and $42,048, respectively	1,793,719	606,641
Inventory	1,147,586	1,615,210
Other current assets	3,419,704	751,938
Total current assets	65,933,356	4,527,263
Fixed assets, net	47,392	65,673
Other Assets:	'	'
Prepaid expense	1,870,003	953,655
Intangible assets	488,274	239,555
Security deposit	138,307	31,949
Total other assets	2,496,584	1,225,159
Total assets	68,477,332	5,818,095
Current Liabilities:	'	'
Accounts payable	2,471,951	1,641,366
Deferred revenue	1,852,272	1,144,752
Other current liabilities	2,066,116	725,870
Total current liabilities	6,390,339	3,511,988
Long-Term Liabilities:	'	'
Notes payable, net of debt discount of $0 and $1,102,680, respectively	'	3,589,167
Accrued Interest	'	150,068
Total Long-term liabilities	'	3,739,235
Total liabilities	6,390,339	7,251,223
Commitments and Contingencies	'	'
Preferred stock - par value $0.001; 10,000,000 shares authorized; no shares issued and outstanding	'	'
Common stock - par value $0.001; 250,000,000 shares authorized; 144,962,706 and 99,784,982 issued and outstanding, respectively	144,963	99,785
Additional paid-in capital	134,095,517	50,580,400
Accumulated deficit	-72,153,487	-52,113,313
Total stockholder' equity (deficit)	62,086,993	-1,433,128
Total liabilities and stockholders' equity (deficit)	$68,477,332	$5,818,095

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]	'	'
Allowance for doubtful accounts	$90,403	$42,048
Debt discount on notes payable	$0	$1,102,680
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	144,962,706	99,784,982
Common stock, shares outstanding	144,962,706	99,784,982

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Statement [Abstract]	'	'	'	'
Revenues, net	$2,294,720	$1,036,456	$5,912,800	$2,577,298
Cost of goods sold	648,403	306,843	1,492,355	1,015,337
Gross profit	1,646,317	729,613	4,420,445	1,561,961
Operating expenses:	'	'	'	'
Sales, general, and administration	4,752,062	2,923,242	14,455,839	9,139,894
Research and development	4,098,903	1,702,120	7,710,546	3,131,306
Depreciation and amortization	32,356	14,839	50,949	43,952
Total operating expense	8,883,321	4,640,201	22,217,334	12,315,152
Operating loss	-7,237,004	-3,910,588	-17,796,889	-10,753,191
Other income (expense):	'	'	'	'
Miscellaneous income	11,965	932	15,444	2,486
Interest income	'	'	18,133	'
Interest expense	'	-134,475	-1,165,981	-1,385,209
Financing costs	-447,969	'	-1,107,937	'
Loan guaranty costs	'	-11,745	-2,944	-35,235
Beneficial conversion feature	'	'	'	-6,716,504
Loss on extinguishment of debt	'	-197,383	'	-10,505,247
Total other income (expense)	-436,004	-342,671	-2,243,285	-18,639,709
Loss before taxes	-7,673,008	-4,253,259	-20,040,174	-29,392,900
Provision for income taxes	'	'	'	'
Net loss	($7,673,008)	($4,253,259)	($20,040,174)	($29,392,900)
Net loss per share, basic and diluted	($0.06)	($0.04)	($0.16)	($0.33)
Weighted average number of shares outstanding	131,212,706	95,895,677	121,701,292	88,892,757

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Statement of Cash Flows [Abstract]	'	'
Net loss	($20,040,174)	($29,392,900)
Adjustments to reconcile net loss to net cash flows used in operating activities:	'	'
Depreciation	41,186	21,241
Amortization of intangible assets	9,764	22,711
Provision for doubtful accounts	48,355	33,213
Amortization of debt discount	1,102,680	1,159,375
Stock based compensation	1,926,992	1,031,685
Amortization of deferred financing costs	1,055,948	'
Stock based expense for services	804,878	233,093
Loan guaranty costs	2,944	35,235
Loss on debt extinguishment	'	10,505,247
Beneficial conversion feature	'	6,716,504
Changes in operating assets and liabilities	'	'
Accounts receivable	-1,235,433	-276,755
Inventory	467,624	-367,056
Other current assets	-1,927,156	-28,925
Other assets	-878,616	'
Accounts payable	830,585	724,542
Accrued interest	-150,068	216,281
Other current liabilities	1,340,246	-66,087
Deferred revenue	707,520	701,929
Net cash flows used in operating activities	-15,892,725	-8,730,667
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Patent costs	-257,633	-88,223
Payment of security deposit	-106,358	'
Purchase of property and equipment	-23,755	-68,904
Net cash flows used in investing activities	-387,746	-157,127
CASH FLOWS FROM FINANCING ACTIVITIES	'	'
Proceeds from sale of common stock, net	78,984,960	125,001
Proceeds from line of credit	500,000	'
Proceeds from exercise of options	6,231	190,999
Proceeds from notes and loans payable	'	8,700,000
Repayment of notes payable	-4,691,847	-50,780
Repayment of line of credit	-500,000	'
Repayment of notes payable - related party	'	-50,000
Proceeds from sale of warrants	'	400
Net cash flows provided by financing activities	74,299,344	8,915,620
Increase in cash	58,018,873	27,826
Cash, beginning of period	1,553,474	126,421
Cash, end of period	59,572,347	154,247
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:	'	'
Cash paid for interest	212,853	37,087
SUPPLEMENTAL SCHEDULE OF NON-CASH FINANCING ACTIVITIES:	'	'
Warrants issued for financing	1,711,956	2,509,537
Warrants issued for services	462,196	1,532,228
Warrants issued in exchange for debt and accrued interest	'	3,102,000
Shares issued in exchange for debt and accrued interest	'	1,054,658
Notes payable issued for accrued interest	'	$15,123

THE_COMPANY

THE COMPANY	9 Months Ended
	Sep. 30, 2013
Company	'
THE COMPANY	'
	NOTE 1 – THE COMPANY
	TherapeuticsMD, Inc., a Nevada corporation, or TherapeuticsMD or the Company, has two wholly owned subsidiaries, vitaMedMD, LLC, a Delaware limited liability company organized on May 13, 2008, or VitaMed, and BocaGreenMD, Inc., a Nevada corporation incorporated on January 10, 2012, or BocaGreen. Unless the context otherwise requires, TherapeuticsMD, VitaMed, and BocaGreen collectively are sometimes referred to as "our company," "we," "our," or "us."
	Nature of Business
	We are a women’s healthcare product company focused on creating and commercializing products targeted exclusively for women. We currently manufacture and distribute branded and generic prescription prenatal vitamins as well as over-the-counter vitamins and cosmetics.

BASIS_OF_PRESENTATION_AND_RECE

BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2013
Basis Of Presentation And Recently Issued Accounting Pronouncements	'
BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	'
	NOTE 2 – BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
	Interim Financial Statements
	Our accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles, or GAAP, for complete financial statements. In our opinion, such financial statements include all adjustments (consisting solely of normal recurring adjustments) necessary for the fair statement of the financial information included herein in accordance with GAAP and the rules and regulations of the Securities and Exchange Commission, or the SEC. The balance sheet at December 31, 2012 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Results of operations for interim periods are not necessarily indicative of results for the full year. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2012.
	Fair Value of Financial Instruments
	Our financial instruments consist primarily of accounts receivable, accounts payable, accrued expenses, and short-term debt. The carrying amount of accounts receivable, accounts payable, and accrued expenses approximates their fair value because of the short-term maturity of such instruments and are considered Level 1 assets under the fair value hierarchy. Interest rates that are currently available to us for issuance of short and long-term debt with similar terms and remaining maturities are used to estimate the fair value of our short and long-term debt and would be considered Level 3 inputs under the fair value hierarchy.
	Fair Value of Financial Measurements
	We categorize our assets and liabilities that are valued at fair value on a recurring basis into a three-level fair value hierarchy as defined by Accounting Standards Codification, or ASC, 820 Fair Value Measurements and Disclosures. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). Assets and liabilities recorded in the condensed consolidated balance sheet at fair value are categorized based on a hierarchy of inputs, as follows:
		Level 1	unadjusted quoted prices in active markets for identical assets or liabilities;
		Level 2	quoted prices for similar assets or liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and
		Level 3	unobservable inputs for the asset or liability.
	At September 30, 2013 and December 31, 2012, we had no assets or liabilities that were valued at fair value on a recurring basis.
	Research and Development
	Research and development, or R&D, expenses include internal R&D activities, external contract research organization, or CRO, services and their clinical research sites, and other activities. Internal R&D activity expenses include laboratory supplies, salaries, benefits, and non-cash share-based compensation expenses. CRO activity expenses include preclinical laboratory experiments and clinical trial studies. Other activity expenses include regulatory consulting, and regulatory legal counsel. Internal R&D activities and other activity expenses are charged to operations as incurred. We make payments to CROs based on agreed upon terms which may include payments in advance of a study starting date. Nonrefundable advance payments for goods and services that will be used in future research and development activities are expensed when the activity has been performed or when the goods have been received rather than when the payment is made. Advance payments to be expensed in future R&D activities were $1,940,675 and $189,375 at September 30, 2013 and December 31, 2012, respectively. We review and accrue CRO expenses and clinical trial study expenses based on services performed and rely on estimates of those costs applicable to the stage of completion of a study as provided by CRO. Accrued CRO costs are subject to revisions as such studies progress to completion. Revisions are charged to expense in the period in which the facts that give rise to the revision become known.
	Earnings Per Share
	We calculate earnings per share, or EPS, in accordance with ASC 260, Earnings Per Share, which requires the computation and disclosure of two EPS amounts, basic and diluted. We compute basic EPS based on the weighted average number of shares of common stock outstanding during the period. We compute diluted EPS based on the weighted average number of shares of common stock outstanding plus all potentially dilutive common shares outstanding during the period. Such potentially dilutive common shares consist of stock options and warrants. Potentially dilutive common shares totaling 29,074,292 and 23,173,336 at September 30, 2013 and 2012, respectively, have been excluded from the diluted earnings per share calculation as they are anti-dilutive due to the net loss reported by us.
	Recently Issued and Newly Adopted Accounting Pronouncements
	On July 18, 2013, the Financial Accounting Standards Board or FASB, issued Accounting Standards Update or ASU, No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). The amendments in this ASU provide guidance on the financial statements presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. An unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward with certain exceptions, in which case such an unrecognized tax benefit should be presented in the financial statements as a liability. The amendments in this ASU do not require new recurring disclosures. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments in ASU No. 2013-11 are not expected to have a material impact on our condensed consolidated financial statements.
	Reclassifications
	Certain 2012 amounts have been reclassified to conform to current year presentation.

INVENTORY

INVENTORY	9 Months Ended
	Sep. 30, 2013
InventoryAbstract	'
INVENTORY	'
	NOTE 3 – INVENTORY
	Inventory consists of the following:
		September 30,		December 31,
		2013		2012
	Finished product	$	674,037	$	1,124,739
	Raw material		291,035		380,000
	Deferred costs		182,514		110,471
	TOTAL INVENTORY	$	1,147,586	$	1,615,210

OTHER_CURRENT_ASSETS

OTHER CURRENT ASSETS	9 Months Ended
	Sep. 30, 2013
Other Current Assets	'
OTHER CURRENT ASSETS	'
	NOTE 4 – OTHER CURRENT ASSETS
	Other current assets consist of the following:
		September 30,		December 31,
		2013		2012
	Prepaid research and development costs	$	1,940,675	$	189,375
	Deferred financing costs		656,008		—
	Prepaid consulting		519,762		432,216
	Other receivables-related party (Note 11)		221,109		—
	Prepaid insurance		68,846		127,403
	Other prepaid costs		13,304		—
	Prepaid guaranty costs		—		2,944
	TOTAL OTHER CURRENT ASSETS	$	3,419,704	$	751,938

FIXED_ASSETS

FIXED ASSETS	9 Months Ended
	Sep. 30, 2013
Fixed Assets	'
FIXED ASSETS	'
	NOTE 5 – FIXED ASSETS
	Fixed assets consist of the following:
		September 30,			December 31,
		2013			2012
	Equipment	$	90,573		$	67,668
	Furniture and fixtures		46,625			46,625
	Leasehold improvements		11,980			11,980
			149,178			126,273
	Accumulated depreciation		(101,786	)		(60,600	)
	TOTAL FIXED ASSETS	$	47,392		$	65,673
	Depreciation expense for the nine months ended September 30, 2013 and 2012 was $41,186 and $21,241, respectively.

OTHER_ASSETS

OTHER ASSETS	9 Months Ended
	Sep. 30, 2013
Other Assets:	'
OTHER ASSETS	'
	NOTE 6 – OTHER ASSETS
	Prepaid expense consists of the following:
		September 30,		December 31,
		2013		2012
	Prepaid consulting expense	$	952,870	$	953,655
	Prepaid manufacturing costs		899,000		—
	Prepaid accredited costs		18,133		—
	TOTAL PREPAID EXPENSE	$	1,870,003	$	953,655
	Intangible assets consist of the following:
		September 30,		December 31,
		2013		2012
	Patent costs	$	482,603	$	224,971
	Website costs, net of amortization of  $86,923 and $77,159, respectively		5,671		14,584
	TOTAL INTANGIBLE ASSETS	$	488,274	$	239,555
	Amortization expense for the nine months ended September 30, 2013 and 2012 was $9,764 and $22,711, respectively.

OTHER_CURRENT_LIABILITIES

OTHER CURRENT LIABILITIES	9 Months Ended
	Sep. 30, 2013
Other Current Liabilities	'
OTHER CURRENT LIABILITIES	'
	NOTE 7 – OTHER CURRENT LIABILITIES
	Other current liabilities consist of the following:
		September 30,		December 31,
		2013		2012
	Accrued offering costs	$	708,500	$	—
	Accrued payroll and commission costs		408,491		397,210
	Accrued vacation costs		230,212		114,899
	Accrued professional fees		273,488		90,000
	Accrued royalty expense		219,786		—
	Allowance for coupons and returns		127,806		53,002
	Other accrued expenses		56,474		29,400
	Dividends payable(1)		41,359		41,359
	TOTAL OTHER CURRENT LIABILITIES	$	2,066,116	$	725,870
	(1) In June 2008, we declared and paid a special dividend of $0.40 per share of common stock to all stockholders of record as of June 10, 2008. This amount reflects unclaimed dividends by certain stockholders.

NOTES_PAYABLE

NOTES PAYABLE	9 Months Ended
	Sep. 30, 2013
Notes Payable [Abstract]	'
NOTES PAYABLE	'
	NOTE 8 – NOTES PAYABLE
	Issuance and Payment of Multiple Advance Revolving Credit Note
	On January 31, 2013, we entered into a business loan agreement with Plato and Associates, LLC, a Florida limited liability company, or Plato, for a Multiple Advance Revolving Credit Note, or the Plato Note. The Plato Note allows us to draw down funding up to the $10 million maximum principal amount, at a stated interest rate of 6% per annum. Plato may make advances to us from time to time under the Plato Note at our request, which advances will be of a revolving nature and may be made, repaid, and made from time to time. Interest payments will be due and payable on the tenth day following the end of each calendar quarter in which any interest is accrued and unpaid, commencing on April 10, 2013, and the principal balance outstanding under the Plato Note, together with all accrued interest and other amounts payable under the Plato Note, if any, will be due and payable on February 24, 2014. The Plato Note is secured by substantially all of our assets. On each of February 25 and March 13, 2013, $200,000 was drawn against the Plato Note. On March 21, 2013, we repaid $401,085, including accrued interest. As of September 30, 2013, there was no balance outstanding under the Plato Note.
	As additional consideration for the Plato Note, we issued Plato a warrant to purchase 1,250,000 shares of our common stock at an exercise price $3.20 per share (see NOTE 9 – STOCKHOLDERS’ EQUITY for more details).
	Borrowing Under Amended Bank LOC
	In February 2013, we borrowed $100,000, from First United Bank under the Amended Bank LOC (as defined in NOTE 11 – RELATED PARTIES). The Amended Bank LOC required a personal guarantee and cash collateral limited to $100,000 which was provided by Reich Family Limited Partnership, or Reich Family LP, an entity controlled by Mitchell Krassan, an officer of our company. On April 25, 2013, we paid the principal and interest due under the Amended Bank LOC of $100,735. On May 1, 2013, the Amended Bank LOC expired and was not renewed. Accordingly, the personal guarantee was canceled and the cash collateral was refunded to Reich Family LP.
	Issuance of Promissory Notes
	In January and February 2012, we sold 6% promissory notes for an aggregate of $900,000 with a due date of March 1, 2012. As discussed below in Issuance and Settlement of February 2012 Notes, these promissory notes were modified on February 24, 2012 through the issuance of secured promissory notes, or the February 2012 Notes.
	Issuance and Settlement of February 2012 Notes
	On February 24, 2012, we issued the February 2012 Notes to an individual and an entity, or the Parties, both of which are our stockholders, in the principal base amounts of $1,358,014 and $1,357,110, respectively, and granted warrants for the purchase in the aggregate of 9,000,000 shares of our common stock, or the February Warrants, pursuant to the terms of a note purchase agreement, also dated February 24, 2012. As consideration for the February 2012 Notes and the February Warrants, we received an aggregate of $1,000,000 of new funding from the Parties and the Parties surrendered certain promissory notes previously issued by us in the aggregate amount of $1,700,000, plus accrued interest of $15,124. Under the February 2012 Notes, the Parties loaned us an additional $3,000,000 during March, April, and May 2012.
	On June 19, 2012, we settled $3,102,000 in principal and interest of the February 2012 Notes in exchange for the exercise of 8,145,486 warrants. As discussed below in Issuance and Payment of June 2012 Notes, the remaining balance of $2,691,847 of the February 2012 Notes was modified on June 19, 2012 through the issuance of secured promissory notes, or the June 2012 Notes, (see NOTE 9 – STOCKHOLDERS’ EQUITY, Warrants Issued in Connection with Debt, for more details).
	Issuance and Payment of June 2012 Notes
	On June 19, 2012, we issued the June 2012 Notes to the Parties in the principal base amounts of $2,347,128 and $2,344,719, respectively, pursuant to the terms of a note purchase agreement, or the June 2012 Note Purchase Agreement. As consideration for the June 2012 Notes, the Parties surrendered the remaining balance of the February 2012 Notes in the aggregate amount of $1,347,128 and $1,344,719, respectively (which sums included principle and interest through June 19, 2012), and we received an aggregate of $2,000,000 of new funding from the Parties, or the June Funding. The principal base amount of each of the June 2012 Notes, plus any additional advance made to us thereafter, together with accrued interest at the annual rate of 6%, was due in one lump sum payment on February 24, 2014. As security for our obligations under the June 2012 Note Purchase Agreement and the June 2012 Notes, we entered into a security agreement and pledged all of our assets, tangible and intangible, as further described therein. We also granted warrants to purchase an aggregate of 7,000,000 shares of our common stock in connection with the June Funding. On March 21, 2013, we repaid $4,882,019, including accrued interest, leaving a balance of $21,595 in accrued interest as of March 31, 2013 related to the June 2012 Notes. On April 25, 2013, the balance of accrued interest was paid in full.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2013
Stockholders' Equity (Deficit):	'
STOCKHOLDERS' EQUITY	'
	NOTE 9 – STOCKHOLDERS’ EQUITY
	Common Stock
	At September 30, 2013, we had 250,000,000 shares of common stock, $0.001 par value per share, authorized, with 144,962,706 shares issued and outstanding.
	Public Offerings
	On March 14, 2013, we entered into an underwriting agreement, or the Jefferies Underwriting Agreement, with Jefferies LLC, as the representative of the underwriters named therein, or the Jefferies Underwriters, relating to the issuance and sale of 29,411,765 shares of our common stock. The price to the public in the offering was $1.70 per share and the Jefferies Underwriters agreed to purchase the shares from us pursuant to the Jefferies Underwriting Agreement at a price of $1.58 per share. The net proceeds to us from this offering was approximately $45.4 million, after deducting underwriting discounts and commissions and other offering expenses payable by us. In addition, under the terms of the Jefferies Underwriting Agreement, we granted the Jefferies Underwriters a 30-day option to purchase up to an additional 4,411,765 shares of common stock. The offering closed on March 20, 2013. On April 12, 2013, the Jefferies Underwriters exercised their option to purchase an additional 1,954,587 shares of our common stock to cover over-allotments. We issued these shares to the Jefferies Underwriters on April 18, 2013 and received proceeds of approximately $3.1 million, net of expenses.
	On September 25, 2013, we entered into an underwriting agreement, or the Stifel Underwriting Agreement with Stifel, Nicolaus & Company, Incorporated, as the representative of the several underwriters named therein, or the Stifel Underwriters, relating to the issuance and sale of 13,750,000 shares of our common stock. The price to the public in the offering was $2.40 per share and the Stifel Underwriters agreed to purchase the shares from us pursuant to the Stifel Underwriting Agreement at a price of $2.23 per share. The net proceeds to us from this offering were approximately $30.4 million, after deducting underwriting discounts and commissions and other offering expenses payable by us. The offering closed on September 30, 2013.
	Warrants to Purchase Common Stock of the Company
	As of September 30, 2013, we had common stock purchase warrants outstanding for an aggregate of 14,293,499 shares of our common stock with a weighted average contractual remaining life of 4.5 years and exercise prices ranging from $0.24 to $3.20 per share, resulting in a weighted average exercise price of $1.79 per share.
	The valuation methodology used to determine the fair value of our warrants is the Black-Scholes-Merton option-pricing model, or Black-Scholes Model, an acceptable model in accordance with ASC 718-10, Compensation – Stock Compensation. The Black-Scholes Model requires the use of a number of assumptions, including volatility of the stock price, the risk-free interest rate and the term of the warrant.
	Warrants Issued in Connection with Debt
	On January 31, 2013, we granted a warrant for the purchase of 1,250,000 shares of our common stock in connection with the issuance of the Plato Note, or the Plato Warrant, (see NOTE 8 – NOTES PAYABLE, Issuance and Payment of Multiple Advance Revolving Credit Note). The Plato Warrant has an exercise price of $3.20 per share. The Plato Warrant vested on October 31, 2013 and may be exercised prior to its expiration on January 31, 2019. The Plato Warrant, with a fair value of approximately $1,711,956, was valued on the date of the grant using a term of six years; a volatility of 44.29%; risk free rate of 0.88%; and a dividend yield of 0%. At September 30, 2013, $656,008 was reported as deferred financing costs included in other current assets in the accompanying condensed consolidated balance sheet and is being amortized over the life of the Plato Note. For the nine months ended September 30, 2013, $1,055,948 was recorded as financing costs on the accompanying condensed consolidated financial statements.
	On June 19, 2012, we granted warrants for the purchase of an aggregate of 7,000,000 shares of our common stock in connection with the issuance of the June 2012 Notes, or the June 2012 Warrants, (see NOTE 8 – NOTES PAYABLE, Issuance and Payment of June 2012 Notes). Of the June 2012 Warrants issued, 6,000,000 are exercisable at $2.00 per share and 1,000,000 are exercisable at $3.00 per share. The fair value of the June 2012 Warrants of $9,424,982 was determined by using the Black-Scholes Model on the date of the grant using a term of 5 years; a volatility of 44.64%; risk free rate of 0.75%; and a dividend yield of 0%. The relative fair value of the June 2012 Warrants of $1,649,890 was determined by using the relative fair value calculation method on the date of the grant. As a result of the repayment of the associated debt on March 21, 2013, we expensed the remaining unamortized debt discount of $885,709 at the time of the repayment.
	On February 24, 2012, we issued warrants for the purchase of an aggregate of 5,685,300 shares of our common stock in connection with the modification of certain existing promissory notes, or the Modification Warrants, and warrants for the purchase of an aggregate of 3,314,700 shares of our common stock in connection with the issuance of the February 2012 Notes or the February 2012 Warrants (see NOTE 8 – NOTES PAYABLE, Issuance and Settlement of February 2012 Notes). Both the Modification Warrants and the February 2012 Warrants are exercisable at $0.38 per share. The Modification Warrants’ fair value of $10,505,247 and the February 2012 Warrants’ fair value of $6,124,873 was determined by using the Black-Scholes Model on the date of the grant using a term of 5 years; a volatility of 44.5%; risk free rate of 0.89%; and a dividend yield of 0%. We recorded the fair value of the Modification Warrants as part of the loss on extinguishment of debt in the accompanying condensed consolidated financial statements. The relative fair value of the February 2012 Warrants of $859,647 was recorded as debt discount. As a result of the surrender of the February 2012 Notes on June 19, 2012, we expensed the remaining unamortized debt discount.
	Warrants Issued for Services
	On May 7, 2013, we entered into a consulting agreement, or the Agreement, with Sancilio & Company, Inc., or SCI, to develop drug platforms to be used in hormone replacement drug products, or the Drug Products. These services include support of our efforts to successfully obtain U.S. Federal Drug Administration, or FDA, approval for the Drug Products, including a vaginal capsule for the treatment of vulvar and vaginal atrophy, or VVA. In connection with the Agreement, SCI agreed to forfeit its rights to receive warrants for the purchase of an aggregate of 833,000 shares of our common stock that were to be issued pursuant to the terms of a prior consulting agreement dated May 17, 2012. As consideration under the Agreement, we agreed to issue SCI a warrant to purchase 850,000 shares of our common stock that vest as follows:
		1	283,333 shares were earned on June 9, 2013 upon acceptance of an Investigational New Drug application by the FDA for the Drug Product for an estradiol-based product in a softgel vaginal capsule for the treatment of VVA; however, pursuant to the terms of the Agreement, the shares did not vest until June 30, 2013. The fair value of $405,066 for the shares vested on June 30, 2013 was determined by using the Black-Scholes Model on the date of the vesting using a term of 5 years; a volatility of 45.89%; risk free rate of 1.12%; and a dividend yield of 0%. We recorded the entire $405,066 as non-cash compensation in the accompanying condensed consolidated financial statements;
		2	283,333 shares vested on June 30, 2013. The fair value of $462,196 for these shares was determined by using the Black-Scholes Model on the date of the vesting using a term of 5 years; a volatility of 45.84%; risk free rate of 1.41%; and a dividend yield of 0%. We recorded $154,068 as prepaid expense-short term and $308,128 as prepaid expense-long term in the accompanying condensed consolidated financial statements. During the three months ended September 30, 2013, we recorded $38,517 as non-cash compensation in the accompanying condensed consolidated financial statements; and
		3	283,334 shares will vest upon the receipt by us of any final FDA approval of a Drug Product that SCI helped us design. It is anticipated that this event will not occur before December 2015.
	In March 2012, we issued a warrant for the purchase of an aggregate of 31,000 shares of our common stock to five unaffiliated individuals for services rendered. These warrants were valued on the date of the grant using a term of 5 years; a volatility of 44.81%; risk free rate of 1.04%; and a dividend yield of 0%; $29,736 was recorded as consulting expense in the accompanying condensed consolidated financial statements.
	A summary of our warrant activity and related information for 2013 follows:
			Number of Shares Under Company Warrants			Weighted Average Exercise Price			Weighted		Aggregate
									Average		Intrinsic Value
									Remaining
									Contractual
									Life in Years
	Balance at December 31, 2012			12,193,499		$	1.63			4.8	$	17,971,994
	Granted			2,100,000		$	2.72			7.1	$	782,000
	Exercised			—
	Expired			—
	Cancelled			—
	Balance at September 30, 2013			14,293,499		$	1.79			4.5	$	16,751,100
	Vested and Exercisable at September 30, 2013			12,190,468		$	1.67			4.1	$	15,499,537
	As of September 30, 2013, we had warrants outstanding with exercise prices ranging from $0.24 to $3.20 per share. As of September 30, 2013, unamortized costs associated with warrants totaled approximately $2,129,000.
	Stock Options
	On September 25, 2009, our board of directors approved the 2009 Long Term Incentive Compensation Plan, or the LTIP, to provide financial incentives to our employees, members of the Board, and our advisers and consultants who are able to contribute towards the creation of or who have created stockholder value by providing them stock options and other stock and cash incentives, or the Awards. The Awards available under the LTIP consist of stock options, stock appreciation rights, restricted stock, restricted stock units, performance stock, performance units, EVA awards, and other stock or cash awards as described in the LTIP. There are 25,000,000 shares authorized for issuance under the LTIP. Under the LTIP, non-qualified stock options for the purchase of an aggregate of 13,155,793 shares of our common stock were outstanding at September 30, 2013.
	On February 23, 2012, our board adopted the 2012 Stock Incentive Plan, or the 2012 SOP. The 2012 SOP was designed to serve as an incentive for retaining qualified and competent key employees, officers and directors, and certain consultants and advisors. There are 10,000,000 shares authorized for issuance under the 2012 SOP. Non-qualified stock options for the purchase of an aggregate of 1,625,000 shares of our common stock were outstanding at September 30, 2013.
	The valuation methodology used to determine the fair value of the stock options is the Black-Scholes Model. The Black-Scholes Model requires the use of a number of assumptions including volatility of the stock price, the risk-free interest rate, and the expected life of the stock options. The assumptions used in the Black-Scholes Model during the nine months ended September 30, 2013 are set forth in the table below.
			Nine Months			Year
			Ended			Ended
			30-Sep-13			31-Dec-12
	Risk-free interest rate			0.65-1.71	%		0.61-2.23	%
	Volatility			33.35-45.76	%		40.77-46.01	%
	Term (in years)			5-6.25			5-6.25
	Dividend yield			0	%		0	%
	The risk-free interest rate assumption is based upon observed interest rates on zero coupon U.S. Treasury bonds whose maturity period is appropriate for the expected life. Estimated volatility is a measure of the amount by which our stock price is expected to fluctuate each year during the term of the award. Our estimated volatility is an average of the historical volatility of the stock prices of our peer entities whose stock prices were publicly available. Our calculation of estimated volatility is based on historical stock prices over a period equal to the term of the awards. We used the historical volatility of our peer entities due to the lack of sufficient historical data on our stock price. The average expected life is based on the contractual term of the option using the simplified method.
	On September 4, 2013, we issued a 10-year stock option to a consultant for the purchase of an aggregate of 75,000 shares with an exercise price of $2.20. All of the shares available under the stock option will vest on the first anniversary of issuance.
	On August 22, 2013, we issued a 10-year stock option to a director for the purchase of an aggregate of 50,000 shares with an exercise price of $2.16. The shares available under the stock option vest over a 3-year period on the anniversary of issuance.
	On June 28, 2013, an individual exercised his stock option to purchase an aggregate of 61,372 shares of our common stock for an aggregate purchase price of $6,251.
	On June 21, 2013, we issued 10-year stock options to employees and consultants for the purchase of an aggregate of 632,500 shares with an exercise price of $2.98. An aggregate of 232,500 shares available under the stock options vest over a 3-year period on the anniversary of issuance, an aggregate of 100,000 shares vest monthly over an 18 month period, and an aggregate of 300,000 shares vest monthly over a 3-year period.
	On May 10, 2013, we issued 10-year stock options to employees for the purchase of an aggregate of 100,000 shares with an exercise price of $2.71. An aggregate of 50,000 shares available under the stock options vest over a 4-year period on the anniversary of issuance and an aggregate of 50,000 shares vested immediately.
	On May 6, 2013, we issued a 10-year stock option to a consultant for the purchase of an aggregate of 96,068 shares with an exercise price of $2.96. The shares available under the stock options vest monthly over a 12-month period.
	On May 2, 2013, the Compensation Committee of the Board recommended the granting of stock options to our directors. The Board approved the recommendation and we issued 10-year stock options for the purchase of an aggregate of 575,000 shares of our common stock with an exercise price of $2.80, as follows: (i) a stock option for the purchase of 225,000 shares of our common stock to the Chairman of the Board; (ii) a stock option for the purchase of 75,000 shares of our common stock to the chair of each committee of the Board; and (iii) a stock option for the purchase of 50,000 shares of our common stock to each of the remaining directors. All of these stock options vest on December 31, 2013.
	On May 8, 2013, Robert Finizio, our Chief Executive Officer, forfeited his contractual right to receive 600,000 shares upon exercise of a stock option granted in connection with his employment agreement as well as his right to receive any future stock options. Mr. Finizio gave up these rights with the understanding that these stock options would be returned to the pool of stock options available for issuance to attract future employees.
	On March 29, 2013, we issued 10-year stock options to employees and consultants for the purchase of an aggregate of 180,109 shares with exercise prices ranging from $1.70 to $2.70. An aggregate of 500 shares available under the stock options vest over a 4-year period on the anniversary of issuance, an aggregate of 12,500 shares vest monthly over a 1-year period, 92,109 shares vest monthly over a 13-month period from the date of issuance, and an aggregate of 75,000 shares vest as follows: an aggregate of 31,250 vest immediately and an aggregate of 43,750 vest monthly over the subsequent seven months.
	On September 13, 2012, we issued 10-year stock options to employees and consultants for the purchase of an aggregate of 391,750 shares with an exercise price of $3.40. An aggregate of 7,500 shares available under the stock options vest over a four-year period on anniversary of issuance, an aggregate of 115,000 shares vest over a two-year period on the anniversary of issuance, 2,500 shares vest over a one-year period on the anniversary of issuance, and 166,250 vest immediately.
	On July 5, 2012, a consultant exercised a stock option to purchase 21,338 shares of our common stock at an exercise price of $0.19 per share. All shares under the stock option were purchased through a cashless exercise provision in which the consultant surrendered his right to receive 1,428 shares resulting in the issuance of 19,910 shares. The shares are covered by a lock-up agreement. On July 11, 2012, a consultant exercised a stock option to purchase 30,685 shares of our common stock at an exercise price of $0.41 per share for a purchase price of $12,459.69. The shares are covered by a lock-up agreement.
	On June 29, 2012, we issued 10-year stock options to employees, consultants, and a director for the purchase of an aggregate of 250,000 shares with an exercise price of $2.80. An aggregate of 7,500 shares available under the stock options vest over a 4-year period on the anniversary of issuance; an aggregate of 115,000 shares vest over a 2-year period on the anniversary of issuance; 2,500 shares vest over a 1-year period on the anniversary of issuance, 75,000 shares vest monthly from December 31, 2012; and 50,000 vested immediately.
	On April 16, 2012, the Board approved the issuance of 10-year stock options for our directors for the purchase of: (i) an aggregate of 350,000 shares (50,000 shares each) to our directors for services to be rendered during calendar year 2012 and (ii) an aggregate of 75,000 shares (25,000 shares each) to the chair of each committee of the Board for services to be rendered during calendar year 2012. The stock options have an exercise price of $2.55 per share and vested in full on December 31, 2012. In addition, Dr. Brian Bernick, a director and employee, was issued a stock option for 150,000 shares for services rendered as an employee, having an exercise price of $2.55, which vested in full on April 16, 2013.
	On March 30, 2012, we issued 10-year stock options to employees and consultants for the purchase of an aggregate of 480,000 shares with an exercise price of $2.40. An aggregate of 405,000 shares available under the stock options vest over a 4-year period on the anniversary of issuance; an aggregate of 60,000 shares vest over a 2-year period on the anniversary of issuance; and 15,000 shares vest monthly over a 12-month period from the date of issuance.
	On March 30, 2012, the Board approved a cashless exercise provision for use by holders of stock options. Also on March 30, 2012, an individual exercised his option to purchase 245,485 shares of our common stock. The aggregate purchase price of approximately $60,000 was paid pursuant to a cashless exercise provision wherein the individual surrendered his right to receive 25,000 shares thereunder.
	On February 27, 2012, we issued stock options to our officers and directors for the purchase of an aggregate of 600,000 shares with an exercise price of $2.20 per share. The stock options vested in full on February 27, 2013.
	In January 2012, certain individuals exercised their stock options to purchase an aggregate of 1,630,022 shares of our common stock for an aggregate purchase price of $166,000.
	A summary of activity under the LTIP and 2012 SOP and related information follows:
		Number of Shares Under Company Option			Weighted Average Exercise Price			Weighted		Aggregate Intrinsic Value
								Average
								Remaining
								Contractual
								Life in Years
Balance at December 31, 2012			13,733,488		$	1.16			7.7	$	26,804,117
Granted			1,708,677		$	2.75			9.6	$	335,234
Exercised			(61,372	)
Expired			—
Cancelled			(600,000	)
Balance at September 30, 2013			14,780,793		$	1.27			7.6	$	24,865,677
Vested and Exercisable at September 30, 2013			10,101,920		$	0.65			6.6	$	22,803,024
The Black Scholes method is used to calculate the fair value of individual stock option grants on their issue date. The weighted-average issue date fair value of stock options issued during the nine months ended September 30, 2013 was $1.06.
At September 30, 2013, we had stock options outstanding with exercise prices ranging from $0.10 to $3.40 per share.
Share-based compensation expense for stock options recognized in our results for the nine months ended September 30, 2013 and 2012 ($1,962,673 and $1,004,472, respectively) is based on awards vested and was estimated without forfeitures. ASC 718-10 requires forfeitures to be estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from the estimates.
At September 30, 2013, total unrecognized estimated compensation expense related to non-vested stock options issued prior to that date was approximately $3,521,000 which is expected to be recognized over a weighted-average period of 1.30 years. No tax benefit was realized due to a continued pattern of operating losses.

INCOME_TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2013
Income Taxes	'
INCOME TAXES	'
	NOTE 10 – INCOME TAXES
	Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. We do not expect to pay any significant federal or state income tax for 2013 as a result of (i) the losses recorded during the nine months ended September 30, 2013, (ii) additional losses expected for the remainder of 2013, and/or (iii) net operating loss carry forwards from prior years. Accounting standards require the consideration of a valuation allowance for deferred tax assets if it is "more likely than not" that some component or all of the benefits of deferred tax assets will not be realized. As of September 30, 2013, we maintain a full valuation allowance for all deferred tax assets. Based on these requirements, no provision or benefit for income taxes has been recorded. There were no recorded unrecognized tax benefits at the end of the reporting period.

RELATED_PARTIES

RELATED PARTIES	9 Months Ended
	Sep. 30, 2013
Related Parties	'
RELATED PARTIES	'
	NOTE 11 – RELATED PARTIES
	Loan Guaranty
	In March 2011, VitaMed entered into a Business Loan Agreement and Promissory Note for a $300,000 bank line of credit, or the Bank LOC, for which the bank required personal guarantees and cash collateral. Personal guarantees and cash collateral limited to $100,000 each were provided by Robert Finizio and John Milligan, officers of VitaMed, and by Reich Family LP, an entity controlled by Mitchell Krassan, also an officer of VitaMed. The Bank LOC accrued interest at the rate of 3.02% per annum based on a year of 360 days and was due on March 1, 2012. On March 19, 2012, the bank and VitaMed negotiated a one year extension to the Bank LOC and a subsequent 2-month extension until May 1, 2013.
	In consideration for the personal guarantees and cash collateral, we issued warrants for an aggregate of 613,713 shares. On November 13, 2012, we entered into an amendment with the bank to reduce the Bank LOC to $100,000, or the Amended Bank LOC. As part of the Amended Bank LOC, the personal guarantees and cash collateral for Mr. Finizio and Mr. Milligan were released. In accordance with the terms of the warrants, the warrants previously granted to Mr. Finizio and Mr. Milligan were amended to reflect the amount vested prior to the date of the Amended Bank LOC (179,000 each). At September 30, 2013, an aggregate of 562,571 warrants related to this loan guaranty were vested.
	In February 2013, we borrowed $100,000 under the Amended Bank LOC. The Amended Bank LOC required a personal guarantee and cash collateral limited to $100,000 which was provided by Reich Family LP. On April 25, 2013, we paid the principal and interest due under the Amended Bank LOC of $100,735. On May 1, 2013, the Amended Bank LOC expired and was not renewed. Accordingly, the personal guarantee was canceled and the cash collateral was returned to Reich Family LP
	Lock-Up Agreements
	As required by the terms of the merger agreement with VitaMed dated July 18, 2011, we entered into Lock-Up Agreements, or the Agreements, with stockholders covering the aggregate of 70,000,000 shares of our common stock issued pursuant to this merger or reserved for issuance pursuant to stock options and warrants. Each stockholder agreed that from the date of the Agreements until 18 months thereafter, or the Lock-Up Period, they would not make or cause any sale of our common stock. After the completion of the Lock-Up Period, each stockholder agreed not to sell or dispose of more than 2.5% of their aggregate common stock or shares reserved for issuance under stock options and warrants per quarter over the following 12-month period, or the Dribble Out Period. Upon the completion of the Dribble Out Period, the Agreements will terminate.
	Purchases by Related Parties
	During the nine months ended September 30, 2013 and 2012, we did not sell any of our products to Dr. Brian Bernick, our Chief Medical Officer and director. At December 31, 2012, we had an outstanding receivable due from Dr. Bernick totaling $1,440, all of which has been paid.
	Agreements with Pernix Therapeutics, LLC
	On February 29, 2012, Cooper C. Collins, President and largest stockholder of Pernix Therapeutics, LLC, or Pernix, was elected to serve on the Board. We entered into a Stock Purchase Agreement with Pernix on October 4, 2011. From time to time, we have entered into agreements with Pernix in the normal course of business primarily for the purchase of inventory. During the nine months ended September 30, 2013 and 2012, we made purchases of approximately $0 and $96,250, respectively, from Pernix. At September 30, 2013 and December 31, 2012, there were outstanding amounts due to Pernix of approximately $47,411 and $308,000, respectively.
	Additionally, there were amounts due to us from Pernix for legal fee reimbursement in regards to the Aceto litigation described in NOTE 13- COMMITMENTS AND CONTINGENCIES, in the amounts of 221,109 and $0 for the periods ending September 30, 2013 and December 31, 2012, respectively.

BUSINESS_CONCENTRATIONS

BUSINESS CONCENTRATIONS	9 Months Ended
	Sep. 30, 2013
Business Concentrations	'
BUSINESS CONCENTRATIONS	'
	NOTE 12 - BUSINESS CONCENTRATIONS
	We purchase our products from several suppliers with approximately 98% and 80% of our purchases supplied from one vendor for the nine months ended September 30, 2013 and 2012, respectively.
	We sell our prescription dietary supplement products to wholesale distributors, specialty pharmacies, specialty distributors, and chain drug stores that generally sell products to retail pharmacies, hospitals, and other institutional customers. Revenue generated from sales to three customers, Cardinal Health, Inc., Amerisource Bergen, and McKesson Corporation accounted for 63% and 42% of our recognized revenue for the nine months ended September 30, 2013 and 2012, respectively.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2013
Commitments And Contingencies	'
COMMITMENTS AND CONTINGENCIES	'
	NOTE 13 – COMMITMENTS AND CONTINGENCIES
	Office Lease
	We lease administrative office space in Boca Raton, Florida pursuant to a 63 month non-cancelable operating lease commencing on July 1, 2013 and expiring on September 30, 2018. The lease stipulates, among other things, average base monthly rents of $30,149 (inclusive of estimated operating expenses) and sales tax, for a total future minimum payments over the life of the lease of $1,899,414.
	The straight line rental expense related to our current lease totaled $90,448 for the three months ended September 30, 2013. The rental expense related to our prior lease which expired June 30, 2013 totaled $60,168 for the six months ended June 30, 2013 and $84,114 for the nine months ended September 30, 2012, respectively.
	Litigation
	We are party to various legal actions arising in the ordinary course of business, including actions related to our intellectual property. While it is not feasible to determine the actual outcome of these actions at this time, we do not believe that these matters, including those described below, will have a material adverse effect on our consolidated financial condition, results of operations, or cash flows.
	Aceto Corporation
	On November 13, 2012, Aceto Corporation filed a lawsuit against TherapeuticsMD and BocaGreen in the United States District Court for the Southern District of Florida seeking to enjoin us from using the Quatrefolic product and trademarks, among other things. We filed a motion to dismiss on January 2, 2013, which was granted by the court on July 17, 2013, based on Aceto’s failure to join the trademark owner, Gnosis, S.p.A. as a party plaintiff. On August 19, 2013, Aceto filed an amended complaint which purported to add Gnosis S.p.A. as an involuntary plaintiff. We have not yet filed a response to that amended complaint. As of September 11, 2013, the parties to this lawsuit reached a tentative settlement agreement, which is subject to and awaiting approval by Gnosis S.p.A. Based on our initial assessment of currently available information, we believe that the case is without merit and, as a result, should not have a material adverse effect on our consolidated financial condition, results of operations, or cash flows.
	Avion Pharmaceuticals, LLC
	On November 30, 2012, Avion Pharmaceuticals, LLC, filed a lawsuit against TherapeuticsMD and Bocagreen in the United States District Court for the Northern District of Georgia seeking to enjoin us from using the Prena1 name, among other things. Based on our assessment of the case which is in the discovery stage, we believe that the case is without merit and, as a result, should not have a material adverse effect on our consolidated financial condition, results of operations, or cash flows.
	For additional information on these litigation matters, see our Annual Report on Form 10-K for the year ended December 31, 2012.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2013
Subsequent Events [Abstract]	'
SUBSEQUENT EVENTS	'
	NOTE 14 – SUBSEQUENT EVENTS
	On October 22, 2013, one of our financial advisors whose services we have engaged in prior transactions, or the Financial Advisor, filed a lawsuit against us in the Supreme Court of the State of New York, New York County. The lawsuit alleges that we breached our contractual obligations arising from an Engagement Letter entered into on June 25, 2012 between us and the Financial Advisor by failing to engage the Financial Advisor as a sole bookrunner and sole manager in an equity financing transaction that we closed on September 30, 2013. The lawsuit seeks to recover damages in the amount not less than $2.3 million, in addition to the costs and expenses incurred by the Financial Advisor in the litigation. We intend to defend this lawsuit vigorously. However, any litigation is subject to inherent uncertainties, and we cannot assure you that the expenses associated with defending this lawsuit or its resolution will not have a material adverse effect on our business, operating results, or financial condition.

BASIS_OF_PRESENTATION_AND_RECE1

BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Policies)	9 Months Ended
	Sep. 30, 2013
Basis Of Presentation And Recently Issued Accounting Pronouncements Policies	'
Interim Financial Statements	'
	Interim Financial Statements
	Our accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles, or GAAP, for complete financial statements. In our opinion, such financial statements include all adjustments (consisting solely of normal recurring adjustments) necessary for the fair statement of the financial information included herein in accordance with GAAP and the rules and regulations of the Securities and Exchange Commission, or the SEC. The balance sheet at December 31, 2012 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Results of operations for interim periods are not necessarily indicative of results for the full year. These unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2012.
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments
	Our financial instruments consist primarily of accounts receivable, accounts payable, accrued expenses, and short-term debt. The carrying amount of accounts receivable, accounts payable, and accrued expenses approximates their fair value because of the short-term maturity of such instruments and are considered Level 1 assets under the fair value hierarchy. Interest rates that are currently available to us for issuance of short and long-term debt with similar terms and remaining maturities are used to estimate the fair value of our short and long-term debt and would be considered Level 3 inputs under the fair value hierarchy.
Fair Value of Financial Measurements	'
	Fair Value of Financial Measurements
	We categorize our assets and liabilities that are valued at fair value on a recurring basis into a three-level fair value hierarchy as defined by Accounting Standards Codification, or ASC, 820 Fair Value Measurements and Disclosures. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). Assets and liabilities recorded in the condensed consolidated balance sheet at fair value are categorized based on a hierarchy of inputs, as follows:
		Level 1	unadjusted quoted prices in active markets for identical assets or liabilities;
		Level 2	quoted prices for similar assets or liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and
		Level 3	unobservable inputs for the asset or liability.
	At September 30, 2013 and December 31, 2012, we had no assets or liabilities that were valued at fair value on a recurring basis.
Research and Development	'
	Research and development, or R&D, expenses include internal R&D activities, external contract research organization, or CRO, services and their clinical research sites, and other activities. Internal R&D activity expenses include laboratory supplies, salaries, benefits, and non-cash share-based compensation expenses. CRO activity expenses include preclinical laboratory experiments and clinical trial studies. Other activity expenses include regulatory consulting, and regulatory legal counsel. Internal R&D activities and other activity expenses are charged to operations as incurred. We make payments to CROs based on agreed upon terms which may include payments in advance of a study starting date. Nonrefundable advance payments for goods and services that will be used in future research and development activities are expensed when the activity has been performed or when the goods have been received rather than when the payment is made. Advance payments to be expensed in future R&D activities were $1,940,675 and $189,375 at September 30, 2013 and December 31, 2012, respectively. We review and accrue CRO expenses and clinical trial study expenses based on services performed and rely on estimates of those costs applicable to the stage of completion of a study as provided by CRO. Accrued CRO costs are subject to revisions as such studies progress to completion. Revisions are charged to expense in the period in which the facts that give rise to the revision become known.
Earnings Per Share	'
	We calculate earnings per share, or EPS, in accordance with ASC 260, Earnings Per Share, which requires the computation and disclosure of two EPS amounts, basic and diluted. We compute basic EPS based on the weighted average number of shares of common stock outstanding during the period. We compute diluted EPS based on the weighted average number of shares of common stock outstanding plus all potentially dilutive common shares outstanding during the period. Such potentially dilutive common shares consist of stock options and warrants. Potentially dilutive common shares totaling 29,074,292 and 23,173,336 at September 30, 2013 and 2012, respectively, have been excluded from the diluted earnings per share calculation as they are anti-dilutive due to the net loss reported by us.
Recently Issued and Newly Adopted Accounting Pronouncements	'
	Recently Issued and Newly Adopted Accounting Pronouncements
	On July 18, 2013, the Financial Accounting Standards Board or FASB, issued Accounting Standards Update or ASU, No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (a consensus of the FASB Emerging Issues Task Force). The amendments in this ASU provide guidance on the financial statements presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. An unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward with certain exceptions, in which case such an unrecognized tax benefit should be presented in the financial statements as a liability. The amendments in this ASU do not require new recurring disclosures. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments in ASU No. 2013-11 are not expected to have a material impact on our condensed consolidated financial statements.
Reclassifications	'
	Certain 2012 amounts have been reclassified to conform to current year presentation.

INVENTORY_Tables

INVENTORY (Tables)	9 Months Ended
	Sep. 30, 2013
Inventory Tables	'
Schedule of Inventory	'
	Inventory consists of the following:
		September 30,		December 31,
		2013		2012
	Finished product	$	674,037	$	1,124,739
	Raw material		291,035		380,000
	Deferred costs		182,514		110,471
	TOTAL INVENTORY	$	1,147,586	$	1,615,210

OTHER_CURRENT_ASSETS_Tables

OTHER CURRENT ASSETS (Tables)	9 Months Ended
	Sep. 30, 2013
Other Current Assets Tables	'
Schedule of Other Current Assets	'
	Other current assets consist of the following:
		September 30,		December 31,
		2013		2012
	Prepaid research and development costs	$	1,940,675	$	189,375
	Deferred financing costs		656,008		—
	Prepaid consulting		519,762		432,216
	Other receivables-related party (Note 11)		221,109		—
	Prepaid insurance		68,846		127,403
	Other prepaid costs		13,304		—
	Prepaid guaranty costs		—		2,944
	TOTAL OTHER CURRENT ASSETS	$	3,419,704	$	751,938

FIXED_ASSETS_Tables

FIXED ASSETS (Tables)	9 Months Ended
	Sep. 30, 2013
Fixed Assets Tables	'
Schedule of fixed assets	'
	Fixed assets consist of the following:
		September 30,			December 31,
		2013			2012
	Equipment	$	90,573		$	67,668
	Furniture and fixtures		46,625			46,625
	Leasehold improvements		11,980			11,980
			149,178			126,273
	Accumulated depreciation		(101,786	)		(60,600	)
	TOTAL FIXED ASSETS	$	47,392		$	65,673

OTHER_ASSETS_Tables

OTHER ASSETS (Tables)	9 Months Ended
	Sep. 30, 2013
Other Assets Tables	'
Schedule of other assets	'
	Prepaid expense consists of the following:
		September 30,		December 31,
		2013		2012
	Prepaid consulting expense	$	952,870	$	953,655
	Prepaid manufacturing costs		899,000		—
	Prepaid accredited costs		18,133		—
	TOTAL PREPAID EXPENSE	$	1,870,003	$	953,655
Schedule of intangible assets	'
	Intangible assets consist of the following:
		September 30,		December 31,
		2013		2012
	Patent costs	$	482,603	$	224,971
	Website costs, net of amortization of  $86,923 and $77,159, respectively		5,671		14,584
	TOTAL INTANGIBLE ASSETS	$	488,274	$	239,555

OTHER_CURRENT_LIABILITIES_Tabl

OTHER CURRENT LIABILITIES (Tables)	9 Months Ended
	Sep. 30, 2013
Other Current Liabilities Tables	'
Schedule of other current liabilities	'
	Other current liabilities consist of the following:
		September 30,		December 31,
		2013		2012
	Accrued offering costs	$	708,500	$	—
	Accrued payroll and commission costs		408,491		397,210
	Accrued vacation costs		230,212		114,899
	Accrued professional fees		273,488		90,000
	Accrued royalty expense		219,786		—
	Allowance for coupons and returns		127,806		53,002
	Other accrued expenses		56,474		29,400
	Dividends payable(1)		41,359		41,359
	TOTAL OTHER CURRENT LIABILITIES	$	2,066,116	$	725,870
	(1) In June 2008, we declared and paid a special dividend of $0.40 per share of common stock to all stockholders of record as of June 10, 2008. This amount reflects unclaimed dividends by certain stockholders.

STOCKHOLDERS_EQUITY_Tables

STOCKHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 30, 2013
Stockholders Equity Tables	'
Schedule of warrant activity	'
	A summary of our warrant activity and related information for 2013 follows:
		Number of Shares Under Company Warrants			Weighted Average Exercise Price			Weighted		Aggregate
								Average		Intrinsic Value
								Remaining
								Contractual
								Life in Years
	Balance at December 31, 2012		12,193,499		$	1.63			4.8	$	17,971,994
	Granted		2,100,000		$	2.72			7.1	$	782,000
	Exercised		—
	Expired		—
	Cancelled		—
	Balance at September 30, 2013		14,293,499		$	1.79			4.5	$	16,751,100
	Vested and Exercisable at September 30, 2013		12,190,468		$	1.67			4.1	$	15,499,537
Schedule of assumptions used in the Black-Scholes Model	'
	The assumptions used in the Black-Scholes Model during the nine months ended September 30, 2013 are set forth in the table below.
		Nine Months			Year
		Ended			Ended
		30-Sep-13			31-Dec-12
	Risk-free interest rate		0.65-1.71	%		0.61-2.23	%
	Volatility		33.35-45.76	%		40.77-46.01	%
	Term (in years)		5-6.25			5-6.25
	Dividend yield		0	%		0	%
Schedule of activity under the LTIP	'
	A summary of activity under the LTIP and 2012 SOP and related information follows:
		Number of Shares Under Company Option			Weighted Average Exercise Price			Weighted		Aggregate Intrinsic Value
								Average
								Remaining
								Contractual
								Life in Years
	Balance at December 31, 2012		13,733,488		$	1.16			7.7	$	26,804,117
	Granted		1,708,677		$	2.75			9.6	$	335,234
	Exercised		(61,372	)
	Expired		—
	Cancelled		(600,000	)
	Balance at September 30, 2013		14,780,793		$	1.27			7.6	$	24,865,677
	Vested and Exercisable at September 30, 2013		10,101,920		$	0.65			6.6	$	22,803,024

BASIS_OF_PRESENTATION_AND_RECE2

BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Basis Of Presentation And Recently Issued Accounting Pronouncements Details Narrative	'	'	'
Advance payments for future research and development activities	$1,940,675	'	$189,375
Anti-dilutive shares excluded from earnings per share calculation	29,074,292	23,173,336	'

INVENTORY_Details

INVENTORY (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Inventory	'	'
Finished Product	$674,037	$1,124,739
Raw Material	291,035	380,000
Deferred Costs	182,514	110,471
Inventory	$1,147,586	$1,615,210

OTHER_CURRENT_ASSETS_Details

OTHER CURRENT ASSETS (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Other Current Assets	'	'
Prepaid research and development costs	$1,940,675	$189,375
Deferred financing costs	656,008	'
Prepaid consulting	519,762	432,216
Other receivables-related party (Note 11)	221,109	'
Prepaid insurance	68,846	127,403
Other prepaid costs	13,304	'
Prepaid guaranty costs	'	2,944
TOTAL OTHER CURRENT ASSETS	$3,419,704	$751,938

FIXED_ASSETS_Details_Narrative

FIXED ASSETS (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Fixed Assets Details Narrative	'	'
Depreciation Expense	$41,186	$21,241

FIXED_ASSETS_Details

FIXED ASSETS (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Fixed assets, gross	$149,178	$126,273
Accumulated depreciation	-101,786	-60,600
Fixed Assets, net	47,392	65,673
Equipment	'	'
Fixed assets, gross	90,573	67,668
Furniture and Fixtures	'	'
Fixed assets, gross	46,625	46,625
Leasehold Improvements	'	'
Fixed assets, gross	$11,980	$11,980

OTHER_ASSETS_Details_Narrative

OTHER ASSETS (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Other Assets Details Narrative	'	'
Amortization of intangible assets	$9,764	$22,711

OTHER_ASSETS_Details

OTHER ASSETS (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Other Assets	'	'
Prepaid consulting expense	$952,870	$953,655
Prepaid manufacturing costs	899,000	'
Prepaid accredited costs	18,133	'
TOTAL PREPAID EXPENSE	$1,870,003	$953,655

OTHER_ASSETS_Details_1

OTHER ASSETS (Details 1) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Intangible assets	$488,274	$239,555
Patent costs	'	'
Intangible assets	482,603	224,971
Website costs	'	'
Accumulated amortization	86,923	77,159
Intangible assets	$5,671	$14,584

OTHER_CURRENT_LIABILITIES_Deta

OTHER CURRENT LIABILITIES (Details Narrative) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Other Current Liabilities Details Narrative	'	'
Dividends Payable, amount per share	$0.40	$0.40

OTHER_CURRENT_LIABILITIES_Deta1

OTHER CURRENT LIABILITIES (Details) (USD $)	Sep. 30, 2013		Dec. 31, 2012
Other Current Liabilities	'		'
Accrued offering costs	$708,500		'
Accrued payroll and commission costs	408,491		397,210
Accrued vacation costs	230,212		114,899
Accrued professional fees	273,488		90,000
Accrued royalty expense	219,786		'
Allowance for coupons and returns	127,806		53,002
Other accrued expenses	56,474		29,400
Dividends payable	41,359	[1]	41,359	[1]
TOTAL OTHER CURRENT LIABILITIES	$2,066,116		$725,870
[1]	In June 2008, we declared and paid a special dividend of $0.40 per share of common stock to all stockholders of record as of June 10, 2008. This amount reflects unclaimed dividends by certain stockholders.

NOTES_PAYABLE_Details_Narrativ

NOTES PAYABLE (Details Narrative) (USD $)

9 Months Ended

0 Months Ended

1 Months Ended

0 Months Ended

1 Months Ended

0 Months Ended

0 Months Ended

0 Months Ended

0 Months Ended

3 Months Ended

0 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Apr. 25, 2013

Feb. 28, 2013

Mar. 31, 2011

Jan. 31, 2013

Mar. 31, 2013

Feb. 28, 2013

Feb. 24, 2012

Feb. 28, 2012

Jun. 19, 2012

Feb. 24, 2012

Jun. 19, 2012

Feb. 24, 2012

Jun. 19, 2012

Feb. 24, 2012

31-May-12

Jun. 19, 2012

Jun. 19, 2012

Mar. 21, 2013

Jun. 19, 2012

Mar. 31, 2013

First United Bank Line of Credit

First United Bank Line of Credit

First United Bank Line of Credit

Plato and Associates Note

Plato and Associates Note

Plato and Associates Note

Promissory Notes

Promissory Notes

Promissory Note Individual - February 2012 Notes Issuance

Promissory Note Individual - February 2012 Notes Issuance

Promissory Note Entity - February 2012 Notes Issuance

Promissory Note Entity - February 2012 Notes Issuance

Promissory Notes - February 2012 Notes Issuance

Promissory Notes - February 2012 Notes Issuance

Promissory Notes - February 2012 Notes Issuance

Promissory Note Individual - June 2012 Notes Issuance

Promissory Note Entity - June 2012 Notes Issuance

Promissory Notes - June 2012 Notes Issuance

Promissory Notes - June 2012 Notes Issuance

Promissory Notes - June 2012 Notes Issuance

Debt Interest rate

'

'

'

'

3.02%

6.00%

'

'

'

6.00%

6.00%

'

6.00%

'

'

'

'

'

'

'

'

'

Promissory notes, principal

'

'

'

'

'

$10,000,000

'

'

'

$900,000

'

$1,358,014

'

$1,357,110

'

'

'

$2,347,128

$2,344,179

'

'

'

Proceeds from revolving credit note

'

'

'

'

'

'

200,000

200,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Repayment of revolving credit note

'

'

'

'

'

'

401,085

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Warrants Issued in conjunction with debt

'

'

'

'

'

1,250,000

'

'

'

'

'

'

'

'

'

9,000,000

'

'

'

'

7,000,000

'

Exercise Price per share of warrants issued

'

'

'

'

'

3.2

'

'

'

'

'

'

'

'

'

0.38

'

'

'

'

'

'

Proceeds from notes and loans payable

'

8,700,000

'

100,000

300,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Collateral for line of credit

'

'

'

100,000

100,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Repayment of line of credit

-500,000

'

100,735

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

New Funding

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

1,000,000

3,000,000

'

'

'

2,000,000

'

Notes surrendered

'

'

'

'

'

'

'

'

1,700,000

'

1,347,128

'

1,344,719

'

2,691,847

'

'

'

'

'

'

'

Accrued Interest forfeited

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

15,124

'

'

'

'

'

'

Value of debt converted via warrant conversion

'

1,054,658

'

'

'

'

'

'

'

'

'

'

'

'

3,102,000

'

'

'

'

'

'

'

Number of shares issued in warrant conversion (as related to debt)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

8,145,486

'

'

'

'

'

'

'

Repayment of notes payable

-4,691,847

-50,780

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

4,882,019

'

'

Accrued Interest

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

$21,595

STOCKHOLDERS_EQUITY_Details_Na

STOCKHOLDERS' EQUITY (Details Narrative) (USD $)	9 Months Ended			0 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Apr. 12, 2013	Sep. 25, 2013
				Underwriters	Underwriters
Common Stock:	'	'	'	'	'
Common stock, shares authorized	250,000,000	'	250,000,000	'	'
Common stock, par value	$0.00	'	$0.00	'	'
Common stock, shares issued	144,962,706	'	99,784,982	'	'
Common stock, shares outstanding	144,962,706	'	99,784,982	'	'
Shares issued in private placement	29,411,765	'	'	1,954,587	13,750,000
Share price	$1.70	'	'	'	$2.40
Price per share for private placement shares that may be purchased by underwriter	$1.58	'	'	'	$2.23
Net proceeds from private placement offering (not including shares purchased by underwriters)	$45,400,000	'	'	'	$30,400,000
Options to purchase shares granted to underwriter	4,411,765	'	'	'	'
Proceeds from sale of common stock, net	$78,984,960	$125,001	'	$3,100,000	'

STOCKHOLDERS_EQUITY_Details_Na1

STOCKHOLDERS' EQUITY (Details Narrative 1) (USD $)

3 Months Ended

9 Months Ended

0 Months Ended

0 Months Ended

1 Months Ended

9 Months Ended

0 Months Ended

1 Months Ended

3 Months Ended

0 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Jan. 31, 2013

Sep. 30, 2013

Mar. 21, 2013

Jun. 19, 2012

Feb. 24, 2012

Mar. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Jun. 30, 2013

10-May-13

31-May-13

Sep. 30, 2013

Sep. 30, 2013

Sep. 30, 2013

Jun. 19, 2012

Feb. 24, 2012

Jun. 19, 2012

Feb. 24, 2012

Plato and Associates Note

Plato and Associates Note

Promissory Notes - June 2012 Notes Issuance

Promissory Notes - June 2012 Notes Issuance

Promissory Notes - February 2012 Notes Issuance

Warrants

Warrants

Warrants

Warrants

Warrants

Warrants

Warrants

Warrants

Warrants

Warrants Tranche 1

Warrants Tranche 1

Warrants Tranche 2

Warrants Tranche 2

Sancilio & Company

Sancilio & Company

Sancilio & Company

Sancilio & Company

Lower Range

Upper Range

Promissory Notes - June 2012 Notes Issuance

Promissory Notes - February 2012 Notes Issuance

Promissory Notes - June 2012 Notes Issuance

Promissory Notes - February 2012 Notes Issuance

Warrants:

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Warrants outstanding

'

'

'

'

'

'

'

'

'

'

14,293,499

12,193,499

'

'

'

'

'

'

'

'

'

'

Warrant Exercise Price

'

'

'

'

'

'

'

'

'

'

1.79

1.63

'

'

'

'

0.24

3.2

'

'

'

'

Warrants Issued in conjunction with debt

'

'

'

'

1,250,000

'

'

7,000,000

9,000,000

'

'

'

'

'

'

'

'

'

6,000,000

'

1,000,000

'

Exercise Price per share of warrants issued

'

'

'

'

3.2

'

'

'

0.38

'

'

'

'

'

'

'

'

'

2

0.38

3

0.38

Warrants Fair Value

'

'

'

'

$1,711,956

'

'

$9,424,982

'

'

'

'

$462,196

$405,066

'

'

'

'

'

$10,505,247

'

$6,124,873

Expected term

'

'

'

'

'6 years

'

'

'5 years

'5 years

'5 years

'

'

'5 years

'5 years

'

'

'

'

'

'

'

'

Volatility rate

'

'

'

'

44.29%

'

'

44.64%

44.50%

44.81%

'

'

45.84%

45.89%

'

'

'

'

'

'

'

'

Risk-free rate

'

'

'

'

0.88%

'

'

0.75%

0.89%

1.04%

'

'

1.41%

1.12%

'

'

'

'

'

'

'

'

Dividend yield

'

'

'

'

0.00%

'

'

0.00%

0.00%

0.00%

'

'

0.00%

0.00%

'

'

'

'

'

'

'

'

Deferred Financing Costs

'

'

'

'

'

1,051,988

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Financing costs

447,969

'

1,107,937

'

'

'

'

1,649,890

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Amortization of debt discount

'

'

1,102,680

1,159,375

'

'

885,709

'

859,647

'

'

'

'

'

'

'

'

'

'

'

'

'

Warrants Issued - Note Modification

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

5,685,300

'

'

Warrants Issued - new Funding

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

3,314,700

Warrants forfeited

'

'

'

'

'

'

'

'

'

'

'

'

'

'

833,000

'

'

'

'

'

'

'

Warrants granted

'

'

'

'

'

'

'

'

'

31,000

2,100,000

'

'

'

850,000

'

'

'

'

'

'

'

Warrants vested in period

'

'

'

'

'

'

'

'

'

'

'

'

283,333

283,333

'

'

'

'

'

'

'

'

Consulting expense recognized for warrants issued for services

'

'

'

'

'

'

'

'

'

29,736

'

'

'

405,066

'

38,517

'

'

'

'

'

'

Warrants recorded to prepaid expense - short term

'

'

'

'

'

'

'

'

'

'

'

'

154,068

'

'

'

'

'

'

'

'

'

Warrants recorded to prepaid expense - long term

'

'

'

'

'

'

'

'

'

'

'

'

308,128

'

'

'

'

'

'

'

'

'

Unvested warrants

'

'

'

'

'

'

'

'

'

'

'

'

283,334

'

'

'

'

'

'

'

'

'

Unamortized costs warrants

'

'

'

'

'

'

'

'

'

'

$2,129,000

'

'

'

'

'

'

'

'

'

'

'

STOCKHOLDERS_EQUITY_Details_Na2

STOCKHOLDERS' EQUITY (Details Narrative 2) (USD $)

6 Months Ended

9 Months Ended

0 Months Ended

9 Months Ended

9 Months Ended

0 Months Ended

Jun. 30, 2013

Sep. 30, 2013

2-May-13

2-May-13

2-May-13

Sep. 13, 2013

10-May-13

Mar. 29, 2013

Sep. 13, 2013

6-May-13

Mar. 29, 2013

Mar. 29, 2013

Mar. 29, 2013

Sep. 13, 2013

Sep. 13, 2013

Sep. 04, 2013

Aug. 22, 2013

Jul. 05, 2013

Jun. 21, 2013

10-May-13

6-May-13

Mar. 29, 2013

Jul. 05, 2012

Jun. 29, 2012

Sep. 30, 2013

Dec. 31, 2012

Mar. 29, 2013

Mar. 29, 2013

Sep. 30, 2013

Apr. 16, 2012

Jun. 21, 2013

Jun. 21, 2013

Jun. 21, 2013

Jun. 29, 2012

Jun. 29, 2012

Jun. 29, 2012

Jun. 29, 2012

Apr. 16, 2012

Apr. 16, 2012

Sep. 30, 2013

Sep. 30, 2013

Chairman of the Board

Committee Chairs

Directors

Vesting annually over a 4 year period on anniversary of issuance

Vesting annually over a 4 year period on anniversary of issuance

Vesting annually over a 4 year period on anniversary of issuance

Vesting monthly over an 12 month period

Vesting monthly over an 12 month period

Vesting monthly over an 12 month period

Vesting monthly over an 13 month period

Vesting monthly over an 7 month period

Vesting annually over a 2 year period on anniversary of issuance

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

2009 Long Term Incentive Compensation Plan

2012 Stock Incentive Plan

Lower Range

Upper Range

Robert Finizio, Chief Executive Officer

Dr. Bernick, Director

Vesting annually over a 3 year period on anniversary of issuance

Vesting monthly over an 18 month period

Vesting monthly over a 3 year period

Vesting annually over a 4 year period on anniversary of issuance

Vesting monthly over an 12 month period

Vesting annually over a 2 year period on anniversary of issuance

Vesting monthly fromDecember 31 2012

Committee Chairs

Directors

Stock Options:

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Shares authorized under incentive plan

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

25,000,000

10,000,000

Shares issued under incentive plans

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

14,780,793

13,733,488

'

'

'

'

'

'

'

'

'

'

'

'

'

13,155,793

1,625,000

Shares issued for exercise of options, shares

61,372

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

21,338

'

'

'

'

30,685

'

61,372

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Shares issued for exercise of options, value

$6,251

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

$12,459.69

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Options Granted

'

'

'

'

'

'

'

'

'

'

'

'

'

'

391,750

75,000

50,000

19,910

632,500

100,000

96,068

180,109

'

250,000

1,708,677

'

'

'

'

150,000

'

'

'

'

'

'

'

75,000

350,000

'

'

Weighted Average Exercise Price of options

'

$2.80

'

'

'

'

'

'

'

'

'

'

'

'

$3.40

$2.20

$2.16

$0.19

$2.98

$2.71

$2.96

'

$0.41

$2.80

$1.27

$1.16

$1.70

$2.70

'

$2.55

'

'

'

'

'

'

'

$2.55

$2.55

'

'

Term of options granted

'

'10 years

'

'

'

'

'

'

'

'

'

'

'

'

'10 years

'

'

'

'10 years

'10 years

'10 years

'10 years

'

'10 years

'9 years 7 months 6 days

'

'

'

'

'10 years

'

'

'

'

'

'

'

'10 years

'10 years

'

'

Options vested in period

'

'

'

'

'

7,500

50,000

500

2,500

96,068

12,500

92,109

43,750

115,000

166,250

'

'

'

'

50,000

'

31,250

'

50,000

'

'

'

'

'

'

232,500

100,000

300,000

7,500

2,500

115,000

75,000

'

'

'

'

Stock Options Authorized to the Board of Directors and Key Executives

'

575,000

225,000

75,000

50,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Options forfeited

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

-600,000

'

'

'

600,000

'

'

'

'

'

'

'

'

'

'

'

'

Surrender of shares

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

1,428

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Unrecognized estimated stock compensation expense

'

$3,521,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Period for recognition of remaining unrecognized compensation expense

'

'1 year 3 months 18 days

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

STOCKHOLDERS_EQUITY_Details

STOCKHOLDERS' EQUITY (Details) (Warrants, USD $)	1 Months Ended	9 Months Ended
	Mar. 31, 2012	Sep. 30, 2013
Warrants	'	'
Number of shares under warrant	'	'
Warrants outstanding, beginning	'	12,193,499
Warrants granted	31,000	2,100,000
Warrants exercised	'	'
Warrants expired	'	'
Warrants cancelled	'	'
Warrants outstanding, ending	'	14,293,499
Vested and Exercisable	'	12,190,468
Weighted Average Exercise Price	'	'
Warrants outstanding, beginning	'	1.63
Warrants granted	'	2.72
Warrants exercised	'	'
Warrants expired	'	'
Warrants cancelled	'	'
Warrants outstanding, ending	'	1.79
Vested and Exercisable	'	1.67
Weighted Average Remaining Contractual Life	'	'
Warrants outstanding, beginning	'	'4 years 9 months 18 days
Warrants granted	'	'7 years 1 month 6 days
Warrants outstanding, ending	'	'4 years 6 months
Vested and Exercisable	'	'4 years 1 month 6 days
Aggregate Intrinsic Value	'	'
Warrants outstanding, beginning	'	$17,971,994
Warrants granted	'	782,000
Warrants outstanding, ending	'	16,751,100
Vested and Exercisable	'	$15,499,537

STOCKHOLDERS_EQUITY_Details_1

STOCKHOLDERS' EQUITY (Details 1) (Stock Options)	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Expected dividend yield	0.00%	0.00%
Lower Range	'	'
Risk-free interest rate	0.65%	0.61%
Expected Volatility	33.35%	40.77%
Expected term	'5 years	'5 years
Upper Range	'	'
Risk-free interest rate	1.71%	2.23%
Expected Volatility	45.76%	46.01%
Expected term	'6 years 3 months	'6 years 3 months

STOCKHOLDERS_EQUITY_Details_2

STOCKHOLDERS' EQUITY (Details 2) (USD $)

6 Months Ended

9 Months Ended

0 Months Ended

9 Months Ended

Jun. 30, 2013

Sep. 30, 2013

Sep. 13, 2013

Sep. 04, 2013

Aug. 22, 2013

Jul. 05, 2013

Jun. 21, 2013

10-May-13

6-May-13

Mar. 29, 2013

Jul. 05, 2012

Jun. 29, 2012

Sep. 30, 2013

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Stock Options

Number Options

'

'

'

'

'

'

'

'

'

'

'

'

'

Options outstanding, beginning

'

'

'

'

'

'

'

'

'

'

'

'

13,733,488

Options Granted

'

'

391,750

75,000

50,000

19,910

632,500

100,000

96,068

180,109

'

250,000

1,708,677

Options Exercised

-61,372

'

'

'

'

-21,338

'

'

'

'

-30,685

'

-61,372

Options Expired

'

'

'

'

'

'

'

'

'

'

'

'

'

Options Cancelled

'

'

'

'

'

'

'

'

'

'

'

'

-600,000

Options outstanding, ending

'

'

'

'

'

'

'

'

'

'

'

'

14,780,793

Vested and exercisable

'

'

'

'

'

'

'

'

'

'

'

'

10,101,920

Weighted Average Exercise Price

'

'

'

'

'

'

'

'

'

'

'

'

'

Options outstanding, beginning

'

'

'

'

'

'

'

'

'

'

'

'

$1.16

Granted

'

'

'

'

'

'

'

'

'

'

'

'

$2.75

Options outstanding, ending

'

$2.80

$3.40

$2.20

$2.16

$0.19

$2.98

$2.71

$2.96

'

$0.41

$2.80

$1.27

Vested and exercisable

'

'

'

'

'

'

'

'

'

'

'

'

$0.65

Weighted Average Remaining Contractual Life

'

'

'

'

'

'

'

'

'

'

'

'

'

Options outstanding, beginning

'

'

'

'

'

'

'

'

'

'

'

'

'7 years 8 months 12 days

Granted

'

'10 years

'10 years

'

'

'

'10 years

'10 years

'10 years

'10 years

'

'10 years

'9 years 7 months 6 days

Options outstanding, ending

'

'

'

'

'

'

'

'

'

'

'

'

'7 years 7 months 6 days

Vested and exercisable

'

'

'

'

'

'

'

'

'

'

'

'

'6 years 7 months 6 days

Aggregate Intrinsic Value

'

'

'

'

'

'

'

'

'

'

'

'

'

Options outstanding, beginning

'

'

'

'

'

'

'

'

'

'

'

'

$26,804,117

Granted

'

'

'

'

'

'

'

'

'

'

'

'

$335,234

Options outstanding, ending

'

'

'

'

'

'

'

'

'

'

'

'

24,865,677

Vested and exercisable

'

'

'

'

'

'

'

'

'

'

'

'

$22,803,024

RELATED_PARTIES_Details_Narrat

RELATED PARTIES (Details Narrative) (USD $)

0 Months Ended

3 Months Ended

9 Months Ended

9 Months Ended

0 Months Ended

1 Months Ended

Oct. 02, 2011

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Dec. 31, 2012

Sep. 30, 2013

Sep. 30, 2012

Dec. 31, 2012

Nov. 13, 2012

Feb. 28, 2013

Mar. 31, 2011

Sep. 30, 2013

Dr. Bernick, Director

Pernix Therapeutics

Pernix Therapeutics

Pernix Therapeutics

First United Bank Line of Credit

First United Bank Line of Credit

First United Bank Line of Credit

First United Bank Line of Credit

Proceeds from notes and loans payable

'

'

'

'

$8,700,000

'

'

'

'

'

$100,000

$300,000

'

Collateral for line of credit

'

'

'

'

'

'

'

'

'

'

100,000

100,000

'

Debt Interest rate

'

'

'

'

'

'

'

'

'

'

'

3.02%

'

First United line of credit, Personal Guarantees Warrants Issued

'

'

'

'

'

'

'

'

'

'

'

613,713

'

Warrants amended, warrants vested prior to the amendment

'

'

'

'

'

'

'

'

'

358,000

'

'

'

Warrants vested

'

'

'

'

'

'

'

'

'

'

'

'

562,571

Shares exchanged, on a pro rata basis with VitaMed

70,000,000

'

'

'

'

'

'

'

'

'

'

'

'

Related Party Receivable

'

'

'

'

'

1,440

'

'

'

'

'

'

'

Purchases

'

648,403

306,843

1,492,355

1,015,337

'

0

96,250

'

'

'

'

'

Related Party Accounts Payable

'

'

'

'

'

'

46,464

'

308,000

'

'

'

'

Legal Fee reimbursement due from related parties

'

'

'

'

'

'

$221,109

'

$0

'

'

'

'

BUSINESS_CONCENTRATIONS_Detail

BUSINESS CONCENTRATIONS (Details Narrative)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Supplier Concentration Risk	'	'
Concentration Risk	98.00%	80.00%
Customer Revenue Concentration Risk	'	'
Concentration Risk	63.00%	42.00%

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $)	3 Months Ended	6 Months Ended	9 Months Ended
	Sep. 30, 2013	Jun. 30, 2013	Sep. 30, 2013	Sep. 30, 2012
	Integer		Integer
Commitments And Contingencies Details Narrative	'	'	'	'
Non-cancelable operating lease term	63	'	63	'
Monthly Base rent of leases	'	'	$30,149	'
Rental Expense	90,448	60,168	'	84,114
Future minimum lease payments	$1,899,414	'	$1,899,414	'

SUBSEQUENT_EVENTS_Details_Narr

SUBSEQUENT EVENTS (Details Narrative) (Subsequent Event, Litigation with Financial Advisor, USD $)	1 Months Ended
In Thousands, unless otherwise specified	Oct. 22, 2013
Subsequent Event | Litigation with Financial Advisor	'
Event description	'On October 22, 2013, one of our financial advisors whose services we have engaged in prior transactions, or the Financial Advisor, filed a lawsuit against us in the Supreme Court of the State of New York, New York County.
Amount of damages	$2,300