BIOPHARMX CORPORATION
(Exact name of registrant as specified in its charter)

BioPharmX Corporation
1098 Hamilton Court
Menlo Park, California 94025
(650) 889-5020
(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)

James R. Pekarsky
Chief Executive Officer and Chairman of the Board of Directors
BioPharmX Corporation
1098 Hamilton Court
Menlo Park, California 94025
(650) 889-5020

(Name, address, including zip code, and telephone number, including area code, of agent for service)

Approximate date of commencement of proposed sale to the public:
As soon as practicable after the effective date of this registration statement.

If any of the securities being registered on this form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box. o

If this form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. o

If this form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. o

If this form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration number of the earlier effective registration statement for the same offering. o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act or until the Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.

The information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting offers to buy these securities in any state where the offer or sale is not permitted.

We are offering 3,333,334 shares of our common stock. We expect the public offering price will be between $2.75 and $3.25 per share. The last reported sale price of shares of our common stock on the OTCQB Marketplace on June 15, 2015 was 3.75 per share.

Our common stock is presently quoted on the OTCQB Marketplace under the symbol "BPMX." We have been approved to list our common stock on the NYSE MKT under the symbol "BPMX" upon pricing of this offering. The last reported sale price of our common stock on the OTCQB Marketplace may not be indicative of the market price for our common stock once it is listed on the NYSE MKT.

Pursuant to a subscription agreement dated October 24, 2014, Korea Investment Partners Overseas Expansion Platform Fund, an existing stockholder, agreed to purchase from us in a private placement 1,081,081 shares of our common stock for an aggregate purchase price of $2.0 million at $1.85 per share upon the listing of our common stock on the NYSE MKT. This private placement will close within 15 business days of the listing of our common stock on the NYSE MKT.

Our business and an investment in our common stock involve a high degree of risk. Please read "Risk Factors" beginning on page 12 of this prospectus.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

The underwriters may also purchase up to an additional 500,000 shares from us at the public offering price, less the underwriting discount, within 30 days from the date of this prospectus.

The underwriters expect to deliver the shares against payment therefor on or about , 2015.

You should rely solely on the information in this prospectus. Neither we nor the underwriters have authorized anyone to provide any information or to make any representations other than those contained in this prospectus or in any free writing prospectuses prepared by or on behalf of us or to which we have referred you. We and the underwriters take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. This prospectus is an offer to sell only the shares offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. The information contained in this prospectus or in any applicable free writing prospectus is accurate only as of its date, regardless of its time of delivery or any sale of shares of our common stock. Our business, financial condition, results of operations and prospects may have changed since that date.

For investors outside the United States: Neither we nor the underwriters have done anything that would permit this offering, or possession or distribution of this prospectus, in any jurisdiction where action for that purpose is required, other than in the United States. Persons who come into possession of this prospectus and any applicable free writing prospectus in jurisdictions outside the United States are required to inform themselves about and to observe any restrictions as to this offering and the distribution of this prospectus and any such free writing prospectus applicable to that jurisdiction.

We further note that the representations, warranties and covenants made by us in any agreement that is filed as an exhibit to any document that is included as an exhibit to the registration statement of which this prospectus forms a part were made solely for the benefit of the parties to such agreement,

including, in some cases, for the purpose of allocating risk among the parties to such agreements, and should not be deemed to be a representation, warranty or covenant to you. Moreover, such representations, warranties or covenants were accurate only as of the date when made. Accordingly, such representations, warranties and covenants should not be relied on as accurately representing the current state of our affairs.

Some of the industry and other data contained in this prospectus may be derived from data from various third-party sources. We have not independently verified any of that information and it may not be accurate or complete and may be subject to change based on various factors, including those discussed under the heading "Risk Factors" elsewhere in this prospectus.

PROSPECTUS SUMMARY

This summary highlights selected information contained elsewhere in this prospectus and does not contain all of the information that you should consider in making your investment decision. Before investing in our common stock, you should carefully read this entire prospectus, including our consolidated financial statements and the related notes thereto and the information set forth under the sections "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business." Some of the statements in this prospectus constitute forward-looking statements that involve risks and uncertainties. See "Special Note Regarding Forward-Looking Statements."

Unless otherwise stated or the context otherwise requires, all references in this prospectus to "BioPharmX," the "company" or the "Company," "we," "our," "ours," "us" or similar terms refer to BioPharmX Corporation or BioPharmX, Inc., taken together, as the context may require.

Overview

We are a specialty pharmaceutical company focused on utilizing our proprietary drug delivery technologies to develop and commercialize novel prescription and over-the-counter, or OTC, products that address large markets in women's health and dermatology. Our objective is to develop products that treat health or age-related conditions that: (1) are not presently being addressed or treated at all or (2) are currently treated with drug therapies or drug delivery approaches that are sub-optimal. Our strategy is designed to bring new products to market by identifying optimal delivery mechanisms and/or alternative applications for United States Food and Drug Administration, or FDA, approved active pharmaceutical ingredients, or APIs, while, in appropriate circumstances, reducing the time, cost and risk typically associated with new product development by repurposing drugs with demonstrated safety profiles and, when applicable, taking advantage of the regulatory approval pathway under Section 505(b)(2) of the Federal Food, Drug, and Cosmetic Act, or FDC Act. We believe these approaches may reduce drug development risk and could reduce the time and resources we spend during development. Our current platform technologies include innovative delivery mechanisms for molecular iodine (I₂) and antibiotics.

Our Markets

We believe that the industry dynamics in the areas of women's health and dermatology represent significant opportunities for innovative new products to emerge as attractive solutions for unmet needs in multi-billion dollar therapeutic categories. In particular, we believe that both the women's health and dermatology markets are large specialty markets with significant global patient demand, and we believe that our focus on these markets coupled with our proprietary platform technologies should enable us to develop and commercialize attractive products within these categories.

While we believe our proprietary platform technologies have broad applicability in the areas of women's health and dermatology, our current marketed product and clinical-stage product candidates target the specific indications of fibrocystic breast condition, or FBC, and acne.

Fibrocystic Breast Condition

FBC is a common condition associated with hormonal imbalances during a woman's menstrual cycle. In women with FBC, the relationship between cell growth and cell turnover is out of balance, resulting in excess breast tissue applying pressure to breast nerve tissue during certain portions of the menstrual cycle, which causes the common symptoms of FBC, such as tenderness, aches and swelling. These common symptoms of FBC affect over 50% of women of childbearing age in the United States according to a 1990 article by Susan Norwood, which the U.S. Census Bureau cites as being approximately 37.5 million women as of 2010.

Acne

According to an article in Forefront Dermatology, acne affects almost 90% of people in western societies during their teenage years and may persist into adulthood. Globally, acne affects approximately 650 million people, or about 9.4% of the population according to a 2012 article in The Lancet. In the United States alone, acne affects between 40 million and 50 million people each year according to the American Academy of Dermatology. Acne is characterized by areas of scaly red skin, non-inflammatory blackheads and whiteheads, inflammatory lesions, papules and pustules and occasionally boils and scarring. Acne is commonly treated with OTC topical products, as well as topical and oral prescription therapies. OTC topical drugs typically have similar formulations utilizing one of a few active ingredients (such as benzoyl peroxide and salicylic acid), which studies have shown to be effective in managing mild acne. For moderate to severe cases of acne, dermatologists and their patients typically use prescription topical and oral treatments, alone or in combination depending on the severity.

The market for OTC acne treatments was estimated at over $600 million in 2014 according to 2015 IBISWorld data, with branded oral and topical acne prescriptions generating over $3 billion annually according to compiled information from Symphony Health Solutions data, accessed via Bloomberg Terminal January 2014–December 2014. The most popular orally-administered API is minocycline, despite its systemic side effects that include headaches, dizziness, fatigue, nausea, photosensitivity and severe itchiness.

Our Products and Product Candidates

Overview

We have developed our product portfolio using our proprietary drug delivery technologies including innovative delivery mechanisms for molecular iodine and antibiotics. We currently have one marketed product, VI₂OLET iodine, and two clinical-stage product candidates, BPX01 and BPX03. The following table presents a summary of our marketed products and clinical stage product candidates:

VI₂OLET Iodine

for at least 60 days to realize initial symptom relief. Our patented molecular iodine formula is delivered to breast tissue and is intended to reduce the breast cell build-up that results in breast discomfort. We launched VI₂OLET iodine in December 2014 in online stores and are rolling out the product in drug store and retail chains throughout the United States.

BPX03

In addition to our VI₂OLET iodine dietary supplement, we are also developing BPX03, a prescription drug version of our molecular iodine tablet for the treatment of moderate to severe, periodic breast pain associated with FBC and cyclical breast pain, or cyclic mastalgia. We in-licensed this prescription iodine drug candidate, which was previously under development by the licensors, and refer to both the prior sponsor's investigational drug and our investigational drug as BPX03. We intend to distribute BPX03 globally, where products such as ours may require a prescription due to regulatory requirements. We are preparing to conduct clinical studies under institutional review board, or IRB, oversight during 2015 to provide additional insight on how to design our first Phase 3 safety and efficacy study. We are planning to commence our first Phase 3 clinical trial for BPX03 to support FDA and foreign regulatory requirements upon completion of the IRB studies and submission of our investigational new drug application, or IND, for BPX03. We shall seek approval only in those countries where we will seek to market the prescription product. It is our intent to commence a Phase 3 study in 2016.

BPX01

We are also developing BPX01, a non-lipophilic, topical antibiotic for the treatment of acne. BPX01 contains a novel formulation and utilizes a transepidermal delivery mechanism for minocycline that we believe has the potential to kill p. acnes bacteria without the systemic side effects of orally-administered antibiotics. As BPX01 contains an API that is well known, it is expected to possess anti-inflammatory properties, which reduce swelling and redness. We are currently conducting an animal toxicity study, after which we expect to submit our IND to the FDA to initiate our first Phase 2a clinical trial of BPX01. We are also preparing to conduct a bridging safety study using oral minocycline as the comparator and a Phase 2 dose-finding clinical study for BPX01. We intend to pursue regulatory approval under Section 505(b)(2) of the FDC Act, or Section 505(b)(2). We believe the Section 505(b)(2) regulatory pathway, which permits us to rely in part on the FDA's prior findings of safety and/or efficacy for an approved product, may reduce the drug development risk and could reduce the time and resources we spend during development of BPX01. We believe our design approach for transepidermal delivery may also be utilized with other APIs.

Our Strategy and Competitive Strengths

We believe that the combination of our proprietary platform technologies and the expertise of our team in the areas of product development and commercialization, for both OTC and prescription products, are the core elements driving our company. The key elements of our corporate strategy and the competitive advantages we believe these elements provide us include the following:

•: patented platform technologies;
•: potentially shorter time to market for product introductions;
•: bifurcated market penetration;
•: opportunistic commercialization;
•: efficient advancement of early-stage product candidates into late-stage development;
•: strategic partnerships, joint development and licensing; and
•: continued development of committed, experienced employees and relationships with members of the women's health and dermatology communities.

Research and Development

Our core competency is providing the link between concept and commercialization through focused, practical product development based on innovative research. We employ highly-qualified scientists and consultants specializing in our various product development areas.

As a Silicon Valley–based company, we are located in a region with many strong biotechnology and pharmaceutical companies, which have drawn a high caliber of scientists and scientific support staff to the region. While there is intense competition for this type of personnel, we believe our location will enable us to expand our product development and consultant resources as our business grows. Our location also provides us with convenient access to local formulation resources and preclinical testing facilities.

Intellectual Property

Our success depends in large part upon our ability to obtain and maintain proprietary protection for our products and platform technologies. Our goal is to develop a strong intellectual property portfolio that enables us to capitalize on the research and development that we have performed to date and will perform in the future, particularly for each of the products in our development pipeline and each of the products we market. We rely on a combination of patent, copyright, trademark and trade secret laws in the United States and other countries to obtain and maintain our intellectual property. We protect our intellectual property by, among other methods, filing for patent applications on inventions that are important to the development and conduct of our business with the United States Patent and Trademark Office, or USPTO, and its foreign counterparts.

Strategic Partnerships/Alliances

As part of our business strategy, we augment our internal development efforts by establishing strategic partnerships and/or alliances with third parties that have technologies, patents or other know-how that we believe will be additive to our internal efforts in the areas of women's health and dermatology.

Iogen

We have executed collaboration and licensing agreements with Iogen, LLC, or Iogen, a biotechnology company with iodine-based solutions and associated intellectual property. Our molecular iodine OTC dietary supplement, VI₂OLET iodine, and the development of our molecular iodine prescription product, BPX03, build upon this licensed technology and its associated intellectual property. Under the terms of the agreement, we received an exclusive, worldwide, perpetual, irrevocable license to Iogen's patented technology relating to an oral iodine tablet. In consideration of the license granted under the agreement, we agreed to pay to Iogen a non-refundable license issue fee of $150,000, which we paid in full, and 30% of net profit associated with direct commercialization of an OTC iodine tablet product or 30% of net royalties received from any sub-licensee.

NuTech

We have executed a collaboration and supply agreement with NuTech Medical, Inc., or NuTech, a biologics company specializing in the spinal and orthopedics markets. This agreement describes the collaboration between NuTech and us to develop products in the field of dermatology. Products and intellectual property developed under this agreement are exclusively owned by us and licensed to NuTech for use in indications outside of dermatology. In exchange for an exclusive license to NuTech's intellectual property in the field of dermatology, we will pay to NuTech a royalty of 3% of net sales on product sold in the field of dermatology. In exchange for granting NuTech an exclusive license to our

intellectual property and intellectual property developed in collaboration with NuTech in indications outside of dermatology, we will receive from NuTech a royalty of 3% of net sales on products they sell.

Manufacturing, Supply and Production

We utilize contract manufacturers to produce our products for commercial distribution. We have no plans to establish in-house manufacturing capabilities for large-scale production at this time. We have in place a commercial supply agreement with UPM Pharmaceuticals, or UPM, to manufacture and package our VI₂OLET iodine tablets. Our joint development agreement with NuTech specifies that NuTech will supply materials for certain of our dermatological products.

Marketing, Sales and Distribution

Our team has extensive expertise in the commercialization of consumer products within channels such as drug stores, grocery stores, wholesalers, department stores, mass merchants and specialty retailers. With years of combined experience branding and launching products in the United States, Europe and Asia, our team has a deep understanding of channel strategies that include branded, private label and licensed product strategies.

We plan to commercialize women's health and dermatology products in our pipeline into various channels, beginning with our VI₂OLET iodine dietary supplement, which we launched in December 2014 in online stores and are currently rolling out in drug stores and retail chains throughout the United States.

Customers

Potential customers for our products and product candidates include pharmaceutical companies, physician's practices, including obstetricians and gynecologists, or OB/GYNs, dermatologists and general practitioners, and retail customers via retail sales channels and/or pharmacy outlets.

Competition

FBC and Cyclic Mastalgia

Our competitors, typically large pharmaceutical companies, vary from product to product. In the area of women's health, many companies sell supplements containing iodide salts for the purpose of addressing hypothyroidism as iodine replacement therapy. We believe our competitive advantage is our solid dose proprietary formulation that delivers molecular iodine in a stable manner, allowing the consumer to ingest orally and specifically to address breast symptoms. Addressing an underserved condition, we believe that our VI₂OLET iodine dietary supplement and, if approved, BPX03, are innovative products that provide new treatment options for millions of women.

While there is no single, established standard of care for FBC and cyclic mastalgia, physicians have typically recommended a range of treatments from changes in diet, abstaining from caffeine and methylanthine and nutritional supplements, such as gamma-linolenic acid, for mild symptoms to prescription analgesics and hormone-based therapies, such as contraceptives, Danocrine, Tamoxifen and Bromocriptine, for more severe symptoms.

Acne

A number of approved prescription acne products currently exist in oral form such as isotretinoins, antibiotics, antimicrobials and contraceptives. These treatments are marketed by a number of large pharmaceutical and specialty pharmaceutical companies including, but not limited to: Allergan, Bayer Healthcare, Galderma S.A., Pfizer, Pharmacia, Teva and Valeant. Additionally, there are several prescription acne products that exist in topical form such as antimicrobials, retinoids, or some

combination of the two. These topical solutions are marketed by companies such as Allergan, Galderma S.A., GlaxoSmithKline, Mylan and Valeant. In addition to prescription acne therapies discussed above, there are numerous OTC products in the form of benzoyl peroxide and salicylic acid topical solutions available from various cosmetic and cosmeceutical companies such as Aveeno, Clean & Clear, Clearasil, Neutrogena and Proactiv.

Selected Risks Associated with our Business

Our business is subject to a number of risks and uncertainties, including those highlighted in the section titled "Risk Factors" immediately following this prospectus summary. These risks include, but are not limited to, the following:

•: we have experienced losses since inception and anticipate that we will continue to incur losses;
•: our business is dependent on the successful development, regulatory approval and commercialization of our product candidates, in particular BPX01 and BPX03;
•: our independent registered public accounting firm has expressed substantial doubt about our ability to continue as a going concern, and in order to fund our operations and execute our business plan we will require additional financing;
•: even assuming the successful completion of this offering, we will require additional financing;
•: we have a limited operating history, have yet to recognize more than a de minimis amount of revenue from sales of our VI₂OLET iodine dietary supplement and have yet to obtain regulatory approvals for any of our product candidates;
•: we currently have limited marketing and sales capabilities, and if we are unable to establish sales and marketing capabilities on our own or through third parties, we will be unable to successfully commercialize our VI₂OLET iodine dietary supplement or our product candidates, if approved, or generate product revenue;
•: our only commercialized product, our VI₂OLET iodine dietary supplement, is subject to regulation by U.S. regulatory authorities;
•: clinical drug development is costly, time-consuming and uncertain, and we may suffer setbacks in our clinical development program that could harm our business;
•: we may be unable to obtain regulatory approval for BPX01, BPX03 or other early-stage product candidates under applicable regulatory requirements, and the FDA and foreign regulatory bodies have substantial discretion in the approval process, including the ability to delay, limit or deny approval of product candidates; and
•: our product candidates, if approved, will face significant competition and our failure to compete effectively may prevent us from achieving significant market penetration.

KIP Private Placement

Pursuant to a subscription agreement dated October 24, 2014, Korea Investment Partners Overseas Expansion Platform Fund, or KIP, an existing stockholder, agreed to purchase from us in a private placement, 1,081,081 shares of our common stock for an aggregate purchase price of $2.0 million at $1.85 per share upon the listing of our common stock on the NYSE MKT. The private placement will close within 15 business days of the listing of our common stock on the NYSE MKT. In addition, upon the closing of the private placement, 193,333 shares of our common stock granted to KIP in consideration for Ping Wang's services as a director on our board of directors will immediately vest and be issued to KIP. Collectively, the private placement and issuance of the 193,333 shares are referred to

as the "KIP private placement." The shares that will be issued in the KIP private placement will constitute restricted securities under the Securities Act of 1933, as amended, or Securities Act.

Corporate Information

We were originally incorporated on August 30, 2010 in Nevada under the name Thompson Designs, Inc. On January 23, 2014, we (then operating as Thompson Designs, Inc.), BioPharmX, Inc. and stockholders of BioPharmX, Inc., who collectively owned 100% of BioPharmX, Inc., entered into and consummated transactions pursuant to a share exchange agreement, such transaction referred to as the Share Exchange, whereby we issued to the stockholders of BioPharmX, Inc. an aggregate of 7,025,000 shares of our common stock, in exchange for 100% of the shares of BioPharmX, Inc. The shares of our common stock received by the stockholders of BioPharmX, Inc. in the Share Exchange constituted approximately 77.8% of our then issued and outstanding common stock, after giving effect to the issuance of shares pursuant to the share exchange agreement. As a result of the Share Exchange, BioPharmX, Inc. became our wholly-owned subsidiary. For accounting purposes, the Share Exchange was treated as a reverse acquisition with BioPharmX, Inc. as the acquirer and us as the acquired party, and as a result the historical financial statements prior to the Share Exchange included in this prospectus and registration statement are the historical financial statements of BioPharmX, Inc. On March 3, 2014, we changed our name to BioPharmX Corporation. On May 16, 2014, we reincorporated from Nevada to Delaware.

Our headquarters are located at 1098 Hamilton Court, Menlo Park, California 94025, and our telephone number is 650-889-5020. Our website address is www.BioPharmX.com. The information contained on, or that can be accessed through, our website is not a part of this prospectus. We have included our website address in this prospectus solely as an inactive textual reference and investors should not rely on any such information in deciding whether to purchase our common stock.

The BioPharmX logo and all other product names are our common law trademarks. All other service marks, trademarks and trade names appearing in this prospectus are the property of their respective owners. We do not intend our use or display of other companies' trade names, trademarks or service marks to imply a relationship with, or endorsement or sponsorship of us by, these other companies.

THE OFFERING


Common stock offered by us		3,333,334 shares
Common stock to be sold by us to KIP in the KIP private placement		Pursuant to a subscription agreement dated October 24, 2014, KIP will purchase 1,081,081 shares for an aggregate purchase price of $2.0 million at a price of $1.85 per share in a private placement that will close within 15 business days of this offering. In addition, upon the closing of the private placement, 193,333 shares of our common stock granted to KIP in consideration for Ping Wang's services as a director on our board of directors will immediately vest and be issued to KIP. See "Certain Relationships and Related Party Transactions—KIP Private Placement."
Common stock to be outstanding after this offering and the KIP private placement		21,142,923 shares
Option to purchase additional shares		500,000 shares
Use of proceeds		We estimate the net proceeds from this offering will be approximately $8.1 million (or $9.5 million if the underwriters exercise their option to purchase additional shares in full), based on an assumed public offering price of $3.00 per share, which is the midpoint of the price range listed on the cover page of this prospectus, after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us. In addition, we expect to receive net proceeds of $2.0 million from the sale of shares of common stock to KIP in the KIP private placement.
		We currently expect to use approximately $4.0 million of the net proceeds from the offering and the KIP private placement for research and development expenses associated with the development of our product candidates and research and development pipeline, along with approximately $3.0 million for marketing and advertising expense to build awareness and sell through volume at drug stores and supplement stores for VI₂OLET, with the balance primarily used to fund working capital, capital expenditures and other general corporate purposes, including strategic hires. See "Use of Proceeds."
Risk factors		Investment in shares of our common stock involves a high degree of risk. You should read the "Risk Factors" section of this prospectus for a discussion of factors to consider carefully before deciding to invest in shares of our common stock.
OTCQB Marketplace symbol		Our common shares are currently quoted on the OTCQB Marketplace under the symbol "BPMX."
Proposed NYSE MKT symbol		We have been approved to list our common stock on the NYSE MKT under the symbol "BPMX" upon pricing of this offering.
Underwriters' warrants to purchase Common Stock		We have agreed to issue to the underwriters warrants to purchase 100,000 shares of our common stock at an exercise price equal to the market price of our common stock at the time of the pricing of this offering (or 115,000 shares if the underwriters exercise their option to purchase additional shares in full).

The number of shares of our common stock to be outstanding after this offering and the KIP private placement is based on 16,535,175 shares of our common stock outstanding as of April 30, 2015, and excludes:

•: 2,752,961 shares of common stock issuable upon the exercise of stock options outstanding as of April 30, 2015 with a weighted-average exercise price of $1.14 per share;
•: 230,000 shares of common stock issuable upon the exercise of stock options granted after April 30, 2015, with a weighted-average exercise price of $3.25 per share;
•: 2,321,009 shares of our common stock issuable upon the exercise of warrants outstanding as of April 30, 2015, with a weighted-average exercise price of $3.20 per share;
•: 932,375 shares of our common stock reserved for future issuance under our 2014 Equity Incentive Plan, or 2014 Plan, as of April 30, 2015; and
•: 100,000 shares of our common stock issuable upon exercise of warrants to be issued to the underwriters at an exercise price equal to the market price of our common stock at the time of the pricing of this offering.

Except as otherwise indicated, all information in this prospectus assumes:

•: the automatic conversion of all outstanding shares of our Series A convertible redeemable preferred stock, or Series A preferred stock, as of April 30, 2015 into an aggregate of 4,207,987 shares of our common stock and the additional issuance of 109,968 shares of common stock in lieu of payment in cash for accrued and unpaid interest on the Series A preferred stock, effective immediately upon the receipt of approval to list our common stock on the NYSE MKT;
•: the issuance of 23,532 additional shares of our common stock, based on an assumed public offering price of $3.00 per share, which is the midpoint of the price range listed on the cover page of this prospectus, pursuant to the warrant exercise agreements described below;
•: 166,694 shares of our common stock issuable upon the conversion of a convertible note, together with accrued interest thereon, that will occur immediately prior to the closing of this offering, based on an assumed conversion price of $3.00 per share, which is the midpoint of the price range listed on the cover page of this prospectus;
•: no exercise of outstanding options or outstanding warrants;
•: no exercise of the underwriters' option to purchase additional shares; and
•: no exercise of the common stock warrants to be issued to the underwriters.

Warrant Exercise Agreements

In March and April 2015, we entered into warrant exercise agreements with certain holders of warrants to purchase shares of common stock at $3.70 per share. Pursuant to these warrant exercise agreements, we amended the warrants to reduce the exercise price of such warrants from $3.70 to $2.50 with a corresponding increase in the number of shares of common stock exercisable under the warrants so that the aggregate exercise value of such warrants remained the same. In addition, we agreed that if the public offering price in this offering is less than $3.125 per share, then immediately prior to the closing of this offering, we would issue a number of additional shares of common stock at no additional consideration to each holder equal to (i) the product of (A) the difference between $2.50 per share and 80% of the public offering price and (B) such holder's shares of common stock received pursuant to exercise of the amended warrants, divided by (ii) 80% of the public offering price in this offering. As of April 30, 2015, the holders had exercised such warrants for an aggregate of 564,662 shares of common stock for an aggregate cash exercise price of $1.4 million.

Convertible Note Issuance

In June 2015, we issued a 6% unsecured convertible note in the principal amount of $500,000 to an investor. The note will automatically convert into shares of our common stock immediately prior to the closing of this offering and interest under the note will be paid in shares of our common stock.

SUMMARY CONSOLIDATED FINANCIAL DATA

The summary consolidated statement of operations presented below for the one-month period ended January 31, 2015 and the years ended December 31, 2014 and 2013 and our summary consolidated balance sheet as of January 31, 2015 and December 31, 2014 and 2013 are derived from our audited financial statements included elsewhere in this prospectus. We derived the unaudited consolidated statements of operations data for the three months ended April 30, 2015 and 2014 and the one-month period ended January 31, 2014 and the consolidated balance sheet as of April 30, 2015 from our unaudited consolidated financial statements included elsewhere in this prospectus. We have prepared the unaudited financial information on the same basis as the audited consolidated financial statements and have included, in our opinion, all adjustments, consisting only of normal recurring adjustments, we consider necessary for a fair presentation of the financial information set forth in those statements. The following summary consolidated financial data should be read with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and related notes and other information included elsewhere in this prospectus. Our historical results are not necessarily indicative of the results to be expected in the future, and the results for the three months ended April 30, 2015 and 2014, one-month period ended January 31, 2015 and the years ended December 31, 2014 and 2013 are not necessarily indicative of operating results to be expected for any other period.

Consolidated Statements of Operations Data:

	Three months ended April 30,						Month ended January 31,						Year ended December 31,

	2015			2014			2015			2014			2014			2013
	(in thousands, except share and per share data)
										(Unaudited)
Revenues, net	$	4			—		$	1		$	—		$	—		$	—
Cost of goods sold		9			—			1			—			—			—

Gross (deficit) margin		(5	)		—			—			—			—			—
Operating expenses:
Research and development		1,076			540			365			103			2,519			671
Sales and marketing		1,081			214			378			73			2,299			132
General and administrative		1,026			531			401			165			2,953			711

Total operating expenses		3,183			1,285			1,144			341			7,771			1,514

Loss from operations		(3,188	)		(1,285	)		(1,144	)		(341	)		(7,771	)		(1,514	)
Other expense		(436	)		—			—			—			—			—
Other income		—			—			—			—			40			—
Interest expense, net		—			(50	)		—			(23	)		(76	)		(74	)

Net and comprehensive loss		(3,624	)		(1,335	)		(1,144	)		(364	)		(7,807	)		(1,588	)
Accretion on Series A convertible redeemable preferred stock		(123	)		—			(43	)		—			(163	)		—
Deemed dividend on Series A convertible redeemable preferred stock		(116	)		—			(50	)		—			(159	)		—

Net loss available to common stockholders	$	(3,863	)	$	(1,335	)	$	(1,237	)	$	(364	)	$	(8,129	)	$	(1,588	)



Basic and diluted net loss available to common stockholders per share	$	(0.33	)	$	(0.14	)	$	(0.11	)	$	(0.05	)	$	(0.80	)	$	(0.22	)



Shares used in computing basic and diluted net loss per share		11,741,000			9,351,000			11,408,000			7,750,000			10,217,000			7,119,000

Consolidated Balance Sheet Data:

							December 31,

	April 30, 2015			January 31, 2015			December 31,
	April 30, 2015			January 31, 2015			2014			2013
	(in thousands, except share and per share data)
Cash	$	479		$	1,305		$	2,111		$	3
Working capital (deficit)		(1,302	)		148			1,153			(732	)
Total assets		1,825			2,173			2,990			371
Convertible notes payable		—			—			—			1,028
Series A convertible redeemable preferred stock, $0.001 par value; 10,000,000 shares authorized;
4,207,987, 4,207,987, 4,207,987 and no shares issued and outstanding at April 30, 2015, January 31, 2015, December 31, 2014 and December 31, 2013, respectively (liquidation preference of $8.1 million as of April 30, 2015)		7,061			6,823			6,730			—
Common stock, $0.001 par value; 90,000,000 shares authorized; 12,026,994, 11,415,416, 11,375,311 and 7,025,000 shares issued and outstanding at April 30, 2015, January 31, 2015, December 31, 2014 and December 31, 2013, respectively		12			11			11			7
Additional paid-in capital		6,336			4,416			4,372			306
Accumulated deficit		(14,258	)		(10,634	)		(9,490	)		(1,683	)
Total stockholders' deficit		(7,910	)		(6,207	)		(5,107	)		(1,370	)

Investing in our common stock involves a high degree of risk. You should carefully consider the risks and uncertainties described below, together with all of the other information in this prospectus, including our consolidated financial statements and related notes, before investing in our common stock. The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties of which we are unaware, or that we currently believe are not material, may also become important factors that affect us. If any of the following risks occur, our business, operating results and prospects could be materially harmed. In that event, the price of our common stock could decline, and you could lose part or all of your investment. Our actual results could differ materially and adversely from those anticipated in these forward-looking statements as a result of certain factors.

We have experienced losses since inception and anticipate that we will continue to incur losses, which makes it difficult to assess our future prospects and financial results.

We are a specialty pharmaceutical company with a limited operating history upon which you can evaluate our business and prospects. Pharmaceutical product development is a highly speculative and costly undertaking and involves a substantial degree of uncertainty. While our VI₂OLET iodine dietary supplement has been on the market since December 2014 in online stores, we have never been profitable and, as of April 30, 2015, we had an accumulated deficit of $14.3 million and incurred net losses of $3.6 million and $1.1 million in the three months ended April 30, 2015 and the one-month period ended January 31, 2015, respectively, and net losses of $1.6 million and $7.8 million in the years ended 2013 and 2014, respectively. We expect to continue to incur net losses for the foreseeable future as we increase our marketing and advertising expenses related to VI₂OLET and advance our current and potential additional product candidates through clinical development, seek regulatory approval for them and prepare for and proceed to commercialization. Because of the risks and uncertainties associated with developing and commercializing our product candidates, we are unable to predict when we may introduce additional products commercially, the extent of any future losses or when we will become profitable, if at all. Even if we do achieve profitability, we may not be able to sustain or increase profitability on a quarterly or annual basis.

Our business is dependent on the successful development, regulatory approval and commercialization of our product candidates, in particular BPX01 and BPX03.

Our portfolio of product candidates includes two clinical-stage drug product candidates, BPX01, a topical antibiotic for the treatment of acne, and BPX03, a molecular iodine tablet for the treatment of moderate to severe, periodic breast pain associated with FBC and cyclic mastalgia. The success of our business, including our ability to finance our company and generate revenues in the future, will primarily depend on the successful development, regulatory approval and commercialization of these clinical-stage product candidates. In the future, we may also become dependent on one or more of our early-stage product candidates or any of our product candidates that we may in-license, acquire or develop. The clinical and commercial success of our product candidates will depend on a number of factors, including the following:

If we are unable to achieve any of the above factors, many of which are beyond our control, in a timely manner or at all, we could experience significant delays or fail to obtain regulatory approvals or commercialize our product candidates. Even if we obtain the necessary regulatory approvals, we may never successfully commercialize any of our product candidates. Accordingly, we may not generate revenue through the sale of our product candidates or any future product candidates sufficient to continue operations.

Our independent registered public accounting firm has expressed substantial doubt about our ability to continue as a going concern, and in order to fund our operations and execute our business plan we will require additional financing.

Since inception, we have experienced recurring operating losses and negative cash flows and we expect to continue to generate operating losses and consume significant cash resources for the foreseeable future. Without additional financing, these conditions raise substantial doubt about our ability to continue as a going concern, meaning that we may be unable to continue in operation for the foreseeable future or realize assets and discharge liabilities in the ordinary course of operations. As a result, our independent registered public accounting firm included an explanatory paragraph in its report on our consolidated financial statements for the years ended December 31, 2014 and 2013 and for the one-month period ended January 31, 2015 with respect to this uncertainty. Such an opinion may materially and adversely affect the price per share of our common stock and/or otherwise limit our ability to raise additional funds through the issuance of debt or equity securities or otherwise. Further, the perception that we may be unable to continue as a going concern may impede our ability to raise additional funds or operate our business due to concerns regarding our ability to discharge our contractual obligations.

We have prepared our consolidated financial statements on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. Our 2015 and 2014 consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty. Without additional funds, however, we may be unable to continue as a viable entity, in which case our stockholders may lose all or some of their investment in us.

Even assuming the successful completion of this offering, we will require additional financing.

We incurred a net loss of approximately $3.6 million, $1.1 million and $7.8 million for the three months ended April 30, 2015, the one-month period ended January 31, 2015 and year ended December 31, 2014, respectively. At April 30, 2015, we had cash of $479,000, $6,000 in accounts receivable, and significant liabilities and obligations. Absent additional funding, we believe that our cash will be sufficient to fund our operations only for a relatively short period of time, even assuming the successful completion of this offering and the KIP private placement. The development of our business will require substantial additional capital in the future to commercialize our VI₂OLET product and conduct research and develop our other product candidates, as well as to fund our ongoing operations and satisfy our obligations and liabilities. We have historically relied upon private sales of our equity or debt securities to fund our operations. We currently have no credit facility or committed sources of capital. Delays in obtaining funding could adversely affect our ability to develop and commercially introduce products and cause us to be unable to comply with our obligations under outstanding instruments.

Our ability to obtain additional financing will be subject to a number of factors, including market conditions, our operating performance and investor sentiment. If we are unable to raise additional capital when required or on acceptable terms, we may have to significantly delay, scale back or discontinue the development or commercialization of one or more of our product candidates, restrict our operations or obtain funds by entering into agreements on unattractive terms, which would likely have a material adverse effect on our business, stock price and our relationships with third parties with whom we have business relationships, at least until additional funding is obtained. If we do not have sufficient funds to continue operations, we could be required to seek bankruptcy protection or other alternatives that would likely result in our stockholders losing some or all of their investment in us.

We have a limited operating history, have yet to recognize more than a de minimis amount of revenue from sales of our VI₂OLET iodine dietary supplement and have yet to obtain regulatory approvals for any of our product candidates, which makes it difficult to evaluate our future prospects and viability.

Our operations to date have been primarily limited to researching and developing our product candidates and undertaking preclinical studies and clinical trials of our product candidates. While our VI₂OLET iodine dietary supplement went on the market in December 2014 in online stores, we have only recognized a de minimis amount of revenue from sales to date. We have also not yet obtained regulatory approvals for any of our product candidates. Consequently, the ability to accurately assess and predict our future operating results or business prospects is more limited than if we had a longer operating history or FDA-approved products on the market.

We currently have limited marketing and sales capabilities. If we are unable to establish sales and marketing capabilities on our own or through third parties, we will be unable to successfully commercialize our VI₂OLET iodine dietary supplement or our product candidates, if approved, or generate product revenue.

The near-term growth of our product revenues heavily relies on our VI₂OLET iodine dietary supplement. We launched our product in December 2014 in online stores and are currently rolling out in drug and retail chains throughout the United States. We have devoted substantial resources to the development of VI₂OLET. The success of our commercialization of VI₂OLET is a key component of our business growth over the next few years. To successfully commercialize VI₂OLET and commercialize our product candidates, if approved, in the United States, Canada, the European Union and other jurisdictions we seek to enter, we must build our marketing, sales, distribution, managerial and other non-technical capabilities or make arrangements with third parties to perform these services, and we may not be successful in doing so. Although our employees have experience in the marketing, sale and distribution of pharmaceutical products from prior employment at other companies, we as a company have limited prior experience in the marketing, sale and distribution of pharmaceutical products and there are significant risks involved in building and managing a sales organization, including our ability to hire, retain and incentivize qualified individuals, generate sufficient sales leads, provide adequate training to sales and marketing personnel and effectively manage a geographically dispersed sales and marketing team. Any failure or delay in the development of our internal sales, marketing and distribution capabilities would adversely impact the commercialization of these products. We may choose to collaborate with additional third parties that have direct sales forces and established distribution systems, either to augment or in lieu of our own sales force and distribution systems. If we are unable to enter into such arrangements on acceptable terms or at all, we may not be able to successfully commercialize our product candidates. If we are unable to successfully commercialize our product candidates, either on our own or through collaborations with one or more third parties, our business, financial condition, operating results and prospects would suffer.

Our operating results may fluctuate significantly, which makes our future operating results difficult to predict and could cause our operating results to fall below expectations.

Our operating results may fluctuate due to a variety of other factors, many of which are outside of our control and may be difficult to predict, including the following:

In addition, we measure compensation cost for stock-based awards made to employees at the grant date of the award, based on the fair value of the award as determined by our board of directors, and recognize the cost as an expense over the employee's requisite service period. As the variables that we use as a basis for valuing these awards change over time, including our underlying stock price and stock price volatility, the magnitude of the expense that we must recognize may vary significantly.

Currently, we rely on one third-party manufacturer for our product manufacturing needs. UPM, a division of Gregory Pharmaceutical Holdings, Inc., manufactures solid dose iodine supplement tablets for our VI₂OLET iodine dietary supplement. UPM is required by law to comply with the FDA's regulations, including the cGMP regulations (for drugs and biologics). These regulations set forth

standards for both quality assurance and quality control. Third-party manufacturers also must maintain records and other documentation as required by applicable laws and regulations. In addition to a legal obligation to comply, UPM is contractually obligated to comply with all applicable laws and regulations. However, we cannot guarantee that UPM will so comply. Failure of UPM to maintain compliance with applicable laws and regulations could result in decreased sales of our products, decreased revenues and reputational harm to us and may subject us to sanctions by the FDA, including request for a voluntary recall, warning letter, seizure of products, injunctions prohibiting some or all further sales and/or recalling product already on the market, possible decree imposing substantial fines, preclusion of government contracts, import alerts and criminal liability for us and our individual employees.

Our manufacturing contract is a short-term agreement. We are dependent upon renewing agreements with UPM or finding replacement manufacturers to satisfy our requirements. If we do not renew our agreement with UPM, there can be no assurance that we will be able to find or engage a replacement manufacturer on a timely basis, on acceptable terms, or at all. As a result, we cannot be certain that manufacturing sources will continue to be available or that we can continue to outsource the manufacturing of our products on commercially reasonable or acceptable terms. Further, due to the short-term nature of our agreement, our expenses for manufacturing are not fixed and may change from contract to contract. If the cost of production increases, our gross margins could be negatively affected.

In addition, we rely on our outside manufacturer to provide us with an adequate and reliable supply of our products on a timely basis and in accordance with good manufacturing standards and applicable product specifications. As a result, we are subject to and have little or no control over delays and quality control lapses that our third-party manufacturer may suffer.

We and our third-party manufacturers rely on a limited number of suppliers of the raw materials of our products. A disruption in supply of raw material would be disruptive to our inventory supply.

We and the manufacturers of our products rely on suppliers of raw materials used in the production of our products. Some of these materials are available from only one source. We try to maintain inventory levels that are no greater than necessary to meet our current projections, which could have the effect of exacerbating supply problems. Any interruption in the supply of finished products could hinder our ability to distribute timely our finished products. If we are unable to obtain adequate product supplies to satisfy our customers' orders, we may lose such orders and, possibly, our customers. This, in turn, could result in a loss of our market share and a corresponding reduction in our revenues. In addition, any disruption in the supply of raw materials or an increase in the cost of raw materials to our manufacturers could have a significant effect on their ability to supply us with our products, which would adversely affect our financial condition and operating results.

Our ability to utilize our net operating loss, or NOL, carryforwards and research and development income tax credit carryforwards may be limited.

As of January 31, 2015, we had NOL carryforwards available to reduce future taxable income, if any, for federal and California state income tax purposes of $8.8 million and $8.8 million, respectively. If not utilized, the federal and California state NOL carryforwards will begin expiring during the years ended 2031 and 2031, respectively. Under Section 382 of the Internal Revenue Code of 1986, as amended, or Code, if a corporation undergoes an "ownership change," generally defined as a greater than 50% change (by value) in its equity ownership over a three-year period, the corporation's ability to use its pre-change NOL carryforwards and other pre-change tax attributes (such as research tax credits) to offset its post-change income may be limited. We believe that, with our offering and other transactions that have occurred over the past three years, we may have triggered an "ownership change" limitation. We may also experience ownership changes in the future as a result of subsequent shifts in our stock ownership, including shifts resulting from the consummation of this offering and the

KIP private placement transaction disclosed elsewhere in this prospectus. As a result, if we earn net taxable income, our ability to use our pre-change NOL carryforwards to offset U.S. federal taxable income may be subject to limitations, which could potentially result in increased future tax liability to us. In addition, at the state level, there may be periods during which the use of NOL carryforwards is suspended or otherwise limited, which could accelerate or permanently increase state taxes owed.

Risks Related to Development and Commercialization of our Product Candidates and Regulatory Approval and other Legal Compliance Matters

Our only commercialized product, our VI₂OLET iodine dietary supplement, is subject to regulation by U.S. regulatory authorities.

Our first and only commercialized product, launched in December 2014, is our women's health dietary supplement distributed under the brand name "VI₂OLET" iodine. The processing, formulation, safety, manufacturing, packaging, labeling, advertising and distribution of our VI₂OLET dietary supplement is subject to federal laws and regulation by one or more federal agencies, including the FDA, the Federal Trade Commission, or FTC, the Consumer Product Safety Commission, or CPSC, the United States Department of Agriculture and the Environmental Protection Agency. These activities are also regulated by various state, local and international laws and agencies of the states and localities in which our products are or may be sold.

Although dietary supplements may generally be marketed without FDA premarket review and approval, the FDA regulates, among other things, the labeling, advertising and promotion of such products. We cannot represent, expressly or implicitly, that a dietary supplement will diagnose, cure, mitigate, treat or prevent a disease, or the FDA will consider such products as drugs. The FDA could determine that a particular statement of nutritional support is an unacceptable drug claim, is not substantiated, is an unauthorized version of a health claim or that the product is otherwise misbranded and/or adulterated. In addition, claims on labeling and promotional materials for our dietary supplement products could be challenged by the FDA, the FTC, competitors or consumers. If the FDA or the FTC determines that particular claims relating to our products are violative, we could be subject to regulatory action, such as investigations, warning or untitled letters and cease and desist orders, corrective labeling or advertising orders, consumer redress (for example, offers to repurchase products previously sold to consumers), injunctive relief or product seizures, civil penalties or criminal prosecution. Enforcement action by the FDA or the FTC could materially and adversely affect our business, financial position and operating results and could cause the market value of our common stock to decline.

In addition, the FDA regulates the manufacturing and safety of dietary supplements. The manufacturing of dietary supplements is subject to dietary supplement cGMPs. We are also required to submit to the FDA serious advent reports, and the FDA may determine that a particular dietary supplement or ingredient presents an unacceptable health risk based on the required submission of this information or other information about the product. During development of BPX03 by the prior sponsor, the FDA expressed concern about the potential for teratogenicity of molecular iodine in a use similar to that of our VI₂OLET dietary supplement. If the FDA determines that our dietary supplement is unsafe or adulterated or otherwise in violation of FDA requirements, the FDA could take regulatory action as described above.

From time to time, the above-mentioned agencies and lawmakers consider the implementation of more stringent laws and regulations of dietary supplements and other products. These developments could require reformulation of some products to meet new standards, recalls or discontinuance of some products unsusceptible to reformulation, additional recordkeeping requirements, increased documentation of the properties of some products, additional or different labeling, additional scientific substantiation or other new requirements. Any of these developments could increase our costs

significantly. In addition, regulators' evolving interpretation of existing laws could have similar effects. For example, in July 2011, the FDA issued draft guidance explaining its interpretation of the requirement for the notification to the FDA of certain new dietary ingredients. Although FDA guidance is not mandatory, and companies are free to use an alternative approach if the approach satisfies the requirements of applicable laws and regulations, FDA guidance is a strong indication of the FDA's current thinking on the topic discussed in the guidance, including its position on enforcement. At this time, it is difficult to determine whether the draft guidance, if finalized, would have a material impact on our operations. However, if the FDA were to enforce the applicable statutes and regulations in accordance with the draft guidance as written, we would incur significant additional expenses, which could materially and adversely affect our business in several ways, including, but not limited to, the enjoinment of manufacturing of our products if and until the FDA determines that we are in compliance and can resume manufacturing, which would reduce our growth prospects.

Clinical drug development is costly, time-consuming and uncertain, and we may suffer setbacks in our clinical development program that could harm our business.

Clinical drug development for our product candidates is costly, time-consuming and uncertain. Our product candidates are in various stages of development and while we expect that clinical trials for these product candidates will continue for several years, such trials may take significantly longer than expected to complete. In addition, we, the FDA, an IRB or other regulatory authorities, including state and local agencies and counterpart agencies in foreign countries, may suspend, delay, require modifications to or terminate our clinical trials at any time, for various reasons, including:

As with other pharmaceutical and biotechnology companies, we may suffer significant setbacks in our clinical trials despite promising results in earlier trials. In the event that we abandon or experience delays in the clinical development efforts related to our product candidates, we may not be able to execute on our business plan effectively and our business, financial condition, operating results and prospects may be harmed.

We may be unable to obtain regulatory approval for BPX01, BPX03 or other early-stage product candidates under applicable regulatory requirements. The FDA and foreign regulatory bodies have substantial discretion in the approval process, including the ability to delay, limit or deny approval of product candidates. The delay, limitation or denial of any regulatory approval would adversely impact commercialization, our potential to generate revenue, our business and our operating results.

We are not permitted to market any of our current product candidates in the United States until we receive approval of a new drug application, or NDA, from the FDA. We are also not permitted to market any of our current product candidates in any foreign countries until we receive the requisite approval from the applicable regulatory authorities of such countries. Failure to obtain such regulatory approvals will delay or prevent us from commercializing any of our current or future product candidates.

To gain approval to market a new drug such as BPX01 or BPX03, we must provide the FDA and/or foreign regulatory authorities with, among other things, extensive preclinical and clinical data that adequately demonstrate the safety and efficacy of the drug in its intended indication and information to demonstrate the adequacy of the manufacturing methods to assure the drug's identity, strength, quality and purity. The development and approval of new drug product candidates involves a long, expensive and uncertain process, and delay or failure can occur at any stage. A number of companies in the pharmaceutical and biopharmaceutical industries have suffered significant setbacks in clinical trials, including in Phase 3 clinical development, even after promising results in earlier preclinical studies or clinical trials. These setbacks have been caused by, among other things, observations during clinical trials regarding safety or efficacy, such as previously unreported adverse events. Success in preclinical testing and early clinical trials does not ensure success in later clinical trials, and the results of clinical trials by other parties may not be indicative of the results in trials we may conduct. For example, Phase 2 studies may be conducted in populations that may differ from those in Phase 3 trials and may be conducted using endpoints or measures that differ from those used in later clinical trials. For example, the Phase 2 trial of BPX03 conducted by the prior sponsor used the Lewin pain scale, which was not a validated patient-reported outcome instrument, or PRO, and which the FDA suggested not be used to assess the primary efficacy endpoint in Phase 3 trials. In addition, despite positive results from the Phase 2 trial of BPX03 comparing the 3.0 mg and 6.0 mg doses to the 1.5 mg dose and placebo on the Lewin pain scale, a Phase 3 clinical trial for BPX03, was not completed due to insufficient funds of the prior sponsor and did not meet any of its primary or secondary efficacy endpoints. Accordingly, regardless of the outcome of any Phase 2 trials, our Phase 3 trials may not be successful.

In the case of our topical product candidate, BPX01, we are seeking to deliver sufficient concentrations of the API through the skin barrier to the targeted dermal tissue to achieve the intended therapeutic effect. The topical route of administration may involve new dosage forms, which can be difficult to develop and manufacture and may raise novel regulatory issues and result in development or review delays. For example, the antibiotic delivered in BPX01 is very difficult to

stabilize and prone to epimerization in most formulations and delivery systems and, as such, presents great challenges for transepidermal delivery. We believe potential competitors have attempted to resolve these problems by stabilizing the antibiotic in certain lipophilic formulation, but the solutions either failed to adequately deliver the antibiotic or required overly high concentration (i.e., dosage) for clinical efficacy. As a result, safety and efficacy of BPX01 may be difficult to establish.

The FDA and foreign regulatory bodies have substantial discretion in the drug approval process, including the ability to delay, limit or deny approval of product candidates for many reasons. The FDA or the applicable foreign regulatory body may:

Any delay, limitation or denial of any regulatory approval would adversely impact commercialization, our potential to generate revenue, our business and our operating results.

Delays or difficulties in the enrollment of patients in clinical trials may result in additional costs and delays in our ability to generate significant revenues, and may delay or prevent our receipt of any regulatory approvals necessary to commercialize our planned and future products.

We may not be able to initiate or continue clinical trials for BPX01, BPX03 or our early-stage product candidates if we are unable to locate and enroll a sufficient number of eligible patients to participate in these trials as required by the FDA or similar regulatory authorities outside the United States. In addition, some of our competitors are currently conducting clinical trials for product candidates that treat the same indications as BPX01 and BPX03, and patients who are otherwise eligible for our clinical trials may instead enroll in clinical trials of our competitors' product candidates.

Our inability to enroll a sufficient number of patients for our clinical trials would result in significant delays, could require us to abandon one or more clinical trials altogether and could delay or prevent our receipt of necessary regulatory approvals. Enrollment delays in our clinical trials may result in increased development costs for our product candidates, which would cause the value of our company to decline and impede our ability to obtain additional financing.

We intend to pursue Section 505(b)(2) regulatory approval filings with the FDA for at least one of our product candidates. If the FDA concludes that certain of our product candidates fail to satisfy the requirements under Section 505(b)(2), or if the requirements for such product candidates under Section 505(b)(2) are not as we expect, the approval pathway for such product candidates may take significantly longer, cost substantially more and entail greater complications and risks than anticipated and, in either case, may not be successful.

We are currently developing one product candidate, BPX01, for which we intend to seek FDA approval through the Section 505(b)(2) regulatory pathway, and may decide to seek FDA approval for early-phase products through the Section 505(b)(2) regulatory pathway in the future. A Section 505(b)(2) NDA is a special type of NDA that enables the applicant to rely, in part, on the FDA's findings of safety and efficacy of an existing previously approved product, or published literature, in support of its application. Section 505(b)(2) NDAs often provide an alternate path to FDA approval for new or improved formulations or new uses of previously approved products. Such filings involve significant filing costs, including filing fees.

BPX01 is a topical formulation of Solodyn (minocycline), a previously approved oral antibiotic. Reliance on safety findings made by the FDA in approving Solodyn, the antibiotic we intend to reference in our NDA, could expedite the development program for our product candidates by decreasing the amount of preclinical or clinical data that we would need to generate in order to obtain FDA approval. BPX01's route of administration and dosage form, however, differ from Solodyn's and,

as a result, the FDA may not permit us to use this approach to regulatory approval. If the FDA does not allow us to pursue the Section 505(b)(2) regulatory pathway as anticipated, or if the Section 505(b)(2) regulatory pathway fails to significantly decrease the amount of testing we must conduct, we may need to conduct additional preclinical or clinical trials, provide additional data and information and meet additional standards to obtain regulatory approval. In such case, the time and financial resources required to obtain FDA approval for BPX01, or any other product candidate for which we seek approval pursuant to the Section 505(b)(2) regulatory pathway in the future, and complications and risks associated with these product candidates, likely would increase substantially. Moreover, our inability to pursue the Section 505(b)(2) regulatory pathway could prevent us from introducing our product candidates into the market prior to our competitors, which would likely harm our competitive position and prospects. Further, even if the FDA allows us to pursue the Section 505(b)(2) regulatory pathway, we cannot guarantee that it would ultimately lead to faster product development, and our product candidates may not receive the requisite approvals for commercialization.

In addition, notwithstanding the approval of a number of products by the FDA under Section 505(b)(2) over the last few years, certain competitors and others have objected to the FDA's interpretation of Section 505(b)(2). If the FDA's interpretation of Section 505(b)(2) is successfully challenged, the FDA may be required to change its Section 505(b)(2) policies and practices, which could delay or even prevent the FDA from approving any NDA that we submit under Section 505(b)(2).

Furthermore, the pharmaceutical industry is highly competitive, and Section 505(b)(2) NDAs are subject to special requirements designed to protect the patent rights of sponsors of previously approved drugs referenced in a Section 505(b)(2) NDA. As part of any NDA we would submit to the FDA for BPX01, we would be required to make certifications to all patents listed in the Orange Book (as later defined) for Solodyn, the listed drug we intend to reference in our NDA. There are currently five patents listed in the Orange Book for Solodyn. If we make a Paragraph IV certification (as later defined) to any of the patents listed in the Orange Book, those patent certifications may give rise to patent litigation and mandatory delays in approval of our NDA for up to 30 months depending on the outcome of any litigation. It is not uncommon for a manufacturer of an approved referenced product to file a citizen petition with the FDA seeking to delay approval of, or impose additional approval requirements for, pending competing products. If successful, such petitions can significantly delay, or even prevent, the approval of the new product. However, even if the FDA ultimately denies such a petition, the FDA may substantially delay approval while it considers and responds to the petition.

Use of PROs in our BPX03 clinical trials may delay the development of BPX03 or increase our development costs.

Due to the difficulty of objectively measuring the symptoms of FBC, PROs may have an important role in the development and regulatory approval of our BPX03 product candidate. PROs involve patients' subjective assessments of efficacy, and this subjectivity increases the uncertainty in determining clinical endpoints. Such assessments can be influenced by factors outside of our control, and can vary widely from day-to-day for a particular patient, and from patient-to-patient and site-to-site within a clinical trial. Furthermore, we intend to use a new PRO in our planned Phase 3 clinical program for BPX03. The FDA has recommended that we validate the PRO prior to use in any Phase 3 clinical trials we may conduct. The FDA may not accept the new PRO or may require changes in the PRO, which would delay clinical development of BPX03, increase our costs and necessitate additional clinical trials.

We have never conducted a clinical trial or obtained approval of any product candidates, and may be unable to do so successfully.

As a company, we have no experience in conducting clinical trials or progressing a product candidate through to regulatory approval. In part because of this lack of experience, our clinical trials may require more time and incur greater costs than we anticipate. We cannot be certain that planned clinical trials will begin or conclude on time, if at all. Large-scale trials would require significant additional financial and management resources, and reliance on third-party clinical investigators, CROs, and/or consultants. Any performance failure on the part of such third parties could delay clinical development or delay or prevent us from obtaining regulatory approval or commercializing our current or future product candidates, depriving us of potential product revenue and resulting in additional losses.

Any product candidates that we commercialize will be subject to ongoing and continued regulatory review.

Even after we achieve U.S. regulatory approval for a product candidate, if any, we will be subject to continued regulatory review and compliance obligations. For example, the FDA may impose significant restrictions on the approved indicated uses for which our product candidates may be marketed or on the conditions of approval. A product candidate's approval may contain requirements for potentially costly post-approval studies and surveillance, including Phase 4 clinical trials or a REMS to monitor the safety and efficacy of the product. We will also be subject to ongoing FDA obligations and continued regulatory review with respect to, among other things, the manufacturing, processing, labeling, packaging, distribution, adverse event reporting, storage, advertising, promotion and recordkeeping for our product candidates. These requirements include submissions of safety and other post-marketing information and reports, registration, continued compliance with the FDA's good clinical practice, or GCP, requirements and good laboratory practice requirements, which are regulations and guidelines the FDA would apply to all of our product candidates in clinical and preclinical development, along with any clinical trials that we conduct post-approval, and continued compliance with the FDA's cGMP requirements pursuant to which manufacturing facilities are subject to continual review and periodic inspections by the FDA. To the extent that a product candidate is approved for sale in other countries, we may be subject to similar restrictions and requirements imposed by laws and government regulators in those countries.

If we, our product candidates or the manufacturing facilities for our product candidates fail to comply with applicable regulatory requirements, a regulatory agency may:

The regulations, policies or guidance of the FDA and other applicable government agencies may change and new or additional statutes or government regulations may prevent or delay regulatory approval of our product candidates or further restrict or regulate post-approval activities. We cannot predict the likelihood, nature or extent of adverse government regulation that may arise from future legislation or administrative action, either in the United States or abroad. If we are not able to achieve and maintain regulatory compliance, we may not be permitted to market our product candidates, which would materially and adversely affect our ability to generate revenue and achieve or maintain profitability.

Our product candidates may cause serious or undesirable side effects or possess other unexpected properties that could delay or prevent their regulatory approval, limit the commercial profile of approved labeling or result in post-approval regulatory action.

Unforeseen side effects from any of our product candidates could arise either during clinical development or, if approved, after marketing such product. Undesirable side effects caused by product candidates could cause us or regulatory authorities to interrupt, modify, delay or halt clinical trials and could result in a more restrictive label or the delay or denial of regulatory approval by the FDA or comparable foreign authorities. Results of clinical trials could reveal a high and unacceptable severity and prevalence of side effects. In such an event, trials could be suspended or terminated and the FDA or comparable foreign regulatory authorities could order us to cease further development of or deny approval of product candidates for any or all targeted indications. The drug-related side effects could affect patient recruitment or the ability of enrolled patients to complete the trial or result in product liability claims. Any of these occurrences may harm our business, financial condition, operating results and prospects.

Additionally, if we or others identify undesirable side effects, or other previously unknown problems, caused by our product candidates after obtaining U.S. or foreign regulatory approval or other products with the same or related active ingredients, a number of potentially negative consequences could result, including:

Any of the above events could prevent us from achieving or maintaining market acceptance of the affected product candidate and could substantially increase the costs of commercializing our product candidates.

If any of our product candidates are approved for marketing and we are found to have improperly promoted off-label uses, or if physicians misuse our products or use our products off-label, we may become subject to prohibitions on the sale or marketing of our products, product liability claims and significant fines, penalties and sanctions, and our brand and reputation could be harmed.

The FDA and other regulatory agencies strictly regulate the marketing and promotional claims that are made about drug products. In particular, a product may not be promoted for uses or indications that are not approved by the FDA or such other regulatory agencies as reflected in the product's approved labeling. If we are found to have promoted off-label uses of any of our product candidates, we may receive warning or untitled letters and become subject to significant liability, which would materially harm our business. Both federal and state governments have levied large civil and criminal fines against companies for alleged improper promotion and have enjoined several companies from engaging in off-label promotion. If we become the target of such an investigation or prosecution based on our marketing and promotional practices, we could face similar sanctions, which would materially harm our business. In addition, management's attention could be diverted from our business operations, significant legal expenses could be incurred and our brand and reputation could be damaged. The FDA has also requested that companies enter into consent decrees or permanent injunctions under which specified promotional conduct is changed or curtailed. If we are deemed by the FDA to have engaged in the promotion of our products for off-label use, we could be subject to FDA regulatory or enforcement actions, including the issuance of an untitled letter, a warning letter, injunction, seizure, civil fine or criminal penalties. It is also possible that other federal, state or foreign enforcement authorities might take action if they determine our business activities constitute promotion of an off-label use, which could result in significant penalties, including criminal, civil or administrative penalties, damages, fines, disgorgement, exclusion from participation in government healthcare programs and the curtailment or restructuring of our operations.

We cannot, however, prevent a physician from using our product candidates in ways that fall outside the scope of the approved indications, as he or she may deem appropriate in his or her medical judgment. Physicians may also misuse our product candidates or use improper techniques, which may lead to adverse results, side effects or injury and, potentially, subsequent product liability claims. Furthermore, the use of our product candidates for indications other than those cleared by the FDA and/or other regulatory agencies may not effectively treat such conditions, which could harm our brand and reputation among both physicians and patients.

We may also be subject to healthcare laws, regulation and enforcement and our failure to comply with those laws could adversely affect our business, operations and financial condition.

Certain federal and state healthcare laws and regulations pertaining to fraud and abuse and patients' rights are and will be applicable to our business. We are subject to regulation by both the

federal government and the states in which we conduct our business. The laws and regulations that may affect our ability to operate include:

Because of the breadth of these laws and the narrowness of the statutory exceptions and safe harbors available, it is possible that some of our business activities could be subject to challenge under one or more of such laws. In addition, recent health care reform legislation has strengthened these laws. For example, the recently enacted ACA, among other things, amended the intent requirement of the federal anti-kickback statute and certain criminal healthcare fraud statutes. A person or entity no longer needs to have actual knowledge of the statute or specific intent to violate it. In addition, the ACA provides that the government may assert that a claim including items or services resulting from a violation of the federal anti-kickback statute constitutes a false or fraudulent claim for purposes of the federal civil False Claims Act.

Achieving and sustaining compliance with these laws may prove costly. In addition, any action against us for violation of these laws, even if we successfully defend against it, could cause us to incur significant legal expenses and divert our management's attention from the operation of our business. If our operations are found to be in violation of any of the laws described above or any other governmental laws or regulations that apply to us, we may be subject to penalties, including administrative, civil and criminal penalties, damages, fines, disgorgement, the exclusion from participation in federal and state healthcare programs, individual imprisonment or the curtailment or restructuring of our operations, any of which could materially and adversely affect our ability to operate our business and our financial results.

Our employees, independent contractors, principal investigators, consultants, vendors and CROs may engage in misconduct or other improper activities, including noncompliance with regulatory standards and requirements.

We are exposed to the risk that our employees, independent contractors, principal investigators, consultants, vendors and CROs may engage in fraudulent or other illegal activity. Misconduct by these persons could include intentional, reckless or negligent conduct or unauthorized activity that violates: laws or regulations, including those laws requiring the reporting of true, complete and accurate information to the FDA or foreign regulatory authorities; manufacturing standards; federal, state and foreign healthcare fraud and abuse laws and data privacy; or laws that require the true, complete and accurate reporting of financial information or data. In particular, sales, marketing and other business arrangements in the healthcare industry are subject to extensive laws intended to prevent fraud, kickbacks, self-dealing and other abusive practices. These laws may restrict or prohibit a wide range of business activities, including research, manufacturing, distribution, pricing, discounting, marketing and promotion, sales commission, customer incentive programs and other business arrangements. Activities subject to these laws also involve the improper use of information obtained in the course of clinical trials, or illegal misappropriation of drug product, which could result in regulatory sanctions or other actions or lawsuits stemming from a failure to comply with such laws or regulations, and serious harm to our reputation. In addition, federal procurement laws impose substantial penalties for misconduct in connection with government contracts and require certain contractors to maintain a code of business ethics and conduct. If any such actions are instituted against us, and we are not successful in defending ourselves or asserting our rights, those actions could have a significant impact on our business, including the imposition of civil, criminal and administrative penalties, damages, monetary fines, possible exclusion from participation in Medicare, Medicaid and other federal healthcare programs, contractual damages, reputational harm, diminished profits and future earnings, and curtailment of our operations, any of which could adversely affect our ability to operate our business and our operating results.

Even if our current product candidates or any future product candidates obtain regulatory approval, they may fail to achieve the broad degree of physician and patient adoption and use necessary for commercial success.

The commercial success of any of our current or future product candidates, if approved, will depend significantly on the broad adoption and use of the resulting product by physicians and patients for approved indications, and may not be commercially successful. The degree and rate of physician and patient adoption of our current or future product candidates, if approved, will depend on a number of factors, including:

If any of our current or future product candidates are approved for use but fail to achieve the broad degree of physician and patient adoption necessary for commercial success, our operating results and financial condition will be adversely affected, which may delay, prevent or limit our ability to generate revenue and continue our operations.

If we are unable to achieve and maintain coverage and adequate levels of reimbursement for any of our product candidates for which we receive regulatory approval, or any future products we may seek to commercialize, their commercial success may be severely hindered.

As to any of our product candidates that become available by prescription only, our success will depend on the availability of coverage and adequate reimbursement for our product from third-party payors. Patients who are prescribed medicine for the treatment of their conditions generally rely on third-party payors to reimburse all or part of the costs associated with their prescription drugs. The availability of coverage and adequate reimbursement from governmental healthcare programs, such as Medicare and Medicaid, and private third-party payors is critical to new product acceptance. Coverage decisions may depend upon clinical and economic standards that disfavor new drug products when more established or lower cost therapeutic alternatives are already available or subsequently become available. If any of our product candidates fail to demonstrate attractive efficacy profiles, they may not qualify for coverage and reimbursement. In addition, certain currently approved therapies for the treatment of dematological and women's health–related issues have received limited or no reimbursement coverage by insurers and, accordingly, coverage for BPX03 and BPX01, if approved, may not be available. Even if we obtain coverage for a given product, the resulting reimbursement payment rates might not be adequate or may require co-payments that patients find unacceptably high. Patients are unlikely to use our prescription-only products unless coverage is provided and reimbursement is adequate to cover a significant portion of the cost of our products.

In addition, the market for certain of our product candidates will depend significantly on access to third-party payors' drug formularies, or lists of medications for which third-party payors provide coverage and reimbursement. The industry competition to be included in such formularies often leads to downward pricing pressures on pharmaceutical companies. Also, third-party payors may refuse to include a particular branded drug in their formularies or otherwise restrict patient access to a branded drug when a less costly generic equivalent or other alternative is available.

Further, third-party payors, whether foreign or domestic, or governmental or commercial, are developing increasingly sophisticated methods of controlling healthcare costs. In addition, in the United States, although private third-party payors tend to follow Medicare, no uniform policy of coverage and reimbursement for drug products exists among third-party payors. Therefore, coverage and reimbursement for drug products can differ significantly from payor to payor. As a result, the coverage determination process is often a time-consuming and costly process that will require us to provide scientific and clinical support for the use of our product candidates to each payor separately, with no assurance that coverage and adequate reimbursement will be obtained.

Further, we believe that future coverage and reimbursement will likely be subject to increased restrictions in both the United States and in international markets. Third-party coverage and reimbursement for any of our product candidates for which we may receive regulatory approval may not be available or adequate in either the United States or international markets, which could harm our business, financial condition, operating results and prospects.

Our product candidates, if approved, will face significant competition and our failure to compete effectively may prevent us from achieving significant market penetration.

The pharmaceutical industry is characterized by rapidly advancing technologies, intense competition and a strong emphasis on developing proprietary therapeutics. Numerous companies are engaged in the development, patenting, manufacturing and marketing of healthcare products competitive with those that we are developing. We face competition from a number of sources, such as pharmaceutical companies, including generic drug companies, biotechnology companies and academic and research institutions, many of which have greater financial resources, marketing capabilities, sales forces, manufacturing capabilities, research and development capabilities, clinical trial expertise,

intellectual property portfolios, experience in obtaining patents and regulatory approvals for product candidates and other resources than us. Some of the companies that offer competing products also have a broad range of other product offerings, large direct sales forces and long-term customer relationships with our target physicians, which could inhibit our market penetration efforts. In addition, certain of our product candidates, if approved, may compete with other dermatological products, including OTC treatments, for a share of some patients' discretionary budgets and for physicians' attention within their clinical practices.

We anticipate that, if we obtain regulatory approval of our product candidates, we will face significant competition from other approved therapies and may need to compete with unregulated, unapproved and off-label treatments. Certain of our product candidates, if approved, will present novel therapeutic approaches for the approved indications and will have to compete with existing therapies, some of which are widely known and accepted by physicians and patients. To compete successfully in this market, we will have to demonstrate that the relative cost, safety and efficacy of our approved products, if any, provide an attractive alternative to existing and other new therapies. Such competition could lead to reduced market share for our product candidates and contribute to downward pressure on the pricing of our product candidates, which could harm our business, financial condition, operating results and prospects.

Due to less stringent regulatory requirements in certain foreign countries, there are many more dermatological products and procedures available for use in those international markets than are approved for use in the United States. In certain international markets, there are also fewer limitations on the claims that our competitors can make about the effectiveness of their products and the manner in which they can market them. As a result, we expect to face more competition in these markets than in the United States.

BPX01 and BPX03, if approved, will face intense competition and most of our competitors have significantly greater resources than we do.

If approved for the treatment of acne, BPX01 will face direct competition from numerous other topical products such as antimicrobials, retinoids or some combination of the two, and the existence of these products may limit the market size for BPX01. In addition, BPX01 will compete against oral systemic treatments for acne, which include isotretinoins, antibiotics, antimicrobials and contraceptives, and against a number of approved topical treatments for acne, including branded drugs and generic versions where available. If approved for the treatment of FBC, BPX03 will face direct competition from numerous other products such as Danocrine, Tamoxifen and Bromocriptine and the existence of these products may limit the market size for BPX03. Certain alternative treatments offered by competitors may be available at a lower price and may offer greater efficacy or a better safety profile. Even if a generic product or an OTC product is less effective than our product candidates, a less effective generic or OTC product may be more quickly adopted by health insurers, physicians and patients than our competing product candidates based upon cost or convenience.

We may face product liability exposure, and if successful claims are brought against us, we may incur substantial liability if our insurance coverage for those claims is inadequate.

We face an inherent risk of product liability as a result of the clinical testing of our product candidates and will face an even greater risk if we commercialize any products. This risk exists even if a product is approved for commercial sale by the FDA and manufactured in facilities regulated by the FDA or an applicable foreign regulatory authority. Our products and product candidates are designed to affect bodily functions and processes. Any side effects, manufacturing defects, misuse or abuse associated with our product candidates could result in injury and possibly death to a patient. An inability to obtain sufficient insurance coverage on commercially reasonable terms or otherwise to protect against potential product liability claims could inhibit our business.

In addition, a liability claim may be brought against us even if our product candidates merely appear to have caused an injury. Product liability claims may be brought against us by consumers, healthcare providers, pharmaceutical companies or others selling or otherwise coming into contact with our product candidates, among others. If we cannot successfully defend ourselves against product liability claims we will incur substantial liabilities and reputational harm. In addition, regardless of merit or eventual outcome, product liability claims may result in:

Although we maintain product liability insurance coverage for clinical trials, our insurance coverage may not be sufficient to cover all of our product liability–related expenses or losses and may not cover us for any expenses or losses we suffer. Moreover, insurance coverage is becoming increasingly expensive, and, in the future, we may not be able to maintain insurance coverage at a reasonable cost, in sufficient amounts or upon adequate terms to protect us against losses due to product liability, particularly if any of our product candidates receive regulatory approval. Further, a successful product liability claim or series of claims brought against us could cause our stock price to decline and, if judgments exceed our insurance coverage, could decrease our cash and harm our business, financial condition, operating results and prospects.

If we suffer negative publicity concerning the safety of our products, our sales may be harmed and we may be forced to withdraw products.

Physicians and potential patients may have a number of concerns about the safety of our products, whether or not such concerns have a basis in generally accepted science or peer-reviewed scientific research. Negative publicity concerning our products, whether accurate or inaccurate, could reduce market or governmental acceptance of our products and could result in decreased product demand or product withdrawal. In addition, significant negative publicity could result in an increased number of product liability claims, whether or not these claims are supported by applicable law.

We may choose not to continue developing or commercializing any of our product candidates at any time during development or after approval, which would reduce or eliminate our potential return on investment for those product candidates.

At any time, we may decide to discontinue the development or commercialization of any of our products or product candidates for a variety of reasons, including the appearance of new technologies that render our product obsolete, competition from a competing product or changes in or failure to comply with applicable regulatory requirements. If we terminate a program in which we have invested

significant resources, we will not receive any return on our investment and we will have missed the opportunity to allocate those resources to potentially more productive uses.

Failure to obtain marketing approval in international jurisdictions would prevent our product candidates from being marketed abroad.

In order to market and sell our products in the European Union and many other jurisdictions, we or our third-party collaborators must obtain separate marketing approvals and comply with numerous and varying regulatory requirements. The approval procedure varies among countries and can involve additional testing. The time required to obtain approval may differ substantially from that required to obtain FDA approval. The regulatory approval process outside the United States generally includes all of the risks associated with obtaining FDA approval. In addition, in many countries outside the United States, it is required that the product be approved for reimbursement before the product can be approved for sale in that country. We or these third parties may not obtain approvals from regulatory authorities outside the United States on a timely basis, if at all. Approval by the FDA does not ensure approval by regulatory authorities in other countries or jurisdictions, and approval by one regulatory authority outside the United States does not ensure approval by regulatory authorities in other countries or jurisdictions or by the FDA. We may not be able to file for marketing approvals and may not receive necessary approvals to commercialize our products in any market.

Risks Related to Dependence on Third Parties, Employee Matters, Managing Growth and Macroeconomic Conditions

Future discovery and preclinical development collaborations may be important to us. If we are unable to maintain these collaborations, or if these collaborations are not successful, our business could be adversely affected.

For some of our product candidates, we may in the future determine to collaborate with pharmaceutical and biotechnology companies for development of products. We face significant competition in seeking appropriate collaborators. Our ability to reach a definitive agreement for any collaboration will depend, among other things, upon our assessment of the collaborator's resources and expertise, the terms and conditions of the proposed collaboration and the proposed collaborator's evaluation of a number of factors. If we are unable to reach agreements with suitable collaborators on a timely basis, on acceptable terms, or at all, we may have to curtail the development of a product candidate, reduce or delay its development program or one or more of our other development programs, delay its potential development schedule or reduce the scope of research activities, or increase our expenditures and undertake discovery or preclinical development activities at our own expense. If we fail to enter into collaborations and do not have sufficient funds or expertise to undertake the necessary development activities, we may not be able to further develop our product candidates or continue to develop our product candidates and our business may be materially and adversely affected.

Additionally, subject to its contractual obligations to us, if a collaborator of ours is involved in a business combination, the collaborator might deemphasize or terminate the development of any of our product candidates. If one of our collaborators terminates its agreement with us, we may find it more difficult to attract new collaborators and our perception in the business and financial communities could be adversely affected.

If we are unable to maintain our collaborations, development of our product candidates could be delayed and we may need additional resources to develop them. All of the risks relating to product development, regulatory approval and commercialization described in this prospectus also apply to the activities of our collaborators.

We will need to further increase the size and complexity of our organization in the future, and we may experience difficulties in executing our growth strategy and managing our growth.

Our current management, personnel, systems and facilities are not adequate to support our business plan and future growth. We will need to further expand our scientific, sales and marketing, managerial, operational, financial and other resources to support our planned research, development and commercialization activities.

In addition, we have utilized and continue to utilize the services of part-time outside consultants to perform a number of tasks for us, including tasks related to preclinical and clinical testing. Our growth strategy may also entail expanding our use of consultants to implement these and other tasks going forward. We rely on consultants for certain functions of our business and will need to effectively manage these consultants to ensure that they successfully carry out their contractual obligations and meet expected deadlines. There can be no assurance that we will be able to manage our existing consultants or find other competent outside consultants, as needed, on economically reasonable terms, or at all. If we are not able to manage our growth effectively and expand our organization by hiring new employees and expanding our use of consultants, we might be unable to implement successfully the tasks necessary to execute effectively on our planned research, development and commercialization activities and, accordingly, might fail to achieve our research, development and commercialization goals.

If we fail to attract and retain management and other key personnel, we may be unable to continue to develop successfully or commercialize our product candidates or otherwise implement our business plan.

Our ability to compete in the highly-competitive pharmaceuticals industry depends upon our ability to attract and retain highly-qualified managerial, scientific, medical, sales and marketing and other personnel. We are highly dependent on our management and scientific personnel, including: our Chief Executive Officer, Chief Financial Officer and Treasurer, James R. Pekarsky; our President and Secretary, Anja Krammer; and our Executive Vice President of Research & Development, Kin F. Chan, PhD. We do not maintain "key man" insurance policies on the lives of these individuals or the lives of any of our other employees. The loss of the services of any of these individuals, along with other key executives or employees, could impede, delay or prevent the successful development of our product pipeline, completion of our planned clinical trials, commercialization of our product candidates or in-licensing or acquisition of new assets and could negatively impact our ability to successfully implement our business plan. If we lose the services of any of these individuals, we might not be able to find suitable replacements on a timely basis or at all, and our business could be harmed as a result. We are also in the process of recruiting a full-time Chief Financial Officer. In order to retain valuable employees at our company, in addition to salary and cash incentives, we provide stock options that vest over time. The value to employees of stock options that vest over time will be significantly affected by movements in our stock price that are beyond our control, and may at any time be insufficient to counteract offers from other companies.

We might not be able to attract or retain qualified management and other key personnel in the future due to the intense competition for qualified personnel among biotechnology, pharmaceutical and other businesses, particularly in the San Francisco Bay Area where we are headquartered. We could have difficulty attracting experienced personnel to our company and may be required to expend significant financial resources in our employee recruitment and retention efforts. Many of the other pharmaceutical companies with whom we compete for qualified personnel have greater and other resources, different risk profiles and longer histories in the industry than we do. They may also provide more diverse opportunities and better chances for career advancement. If we are not able to attract and retain the necessary personnel to accomplish our business objectives, we may experience constraints that will harm our ability to implement our business strategy and achieve our business objectives.

In addition, we have scientific and clinical advisors who assist us in formulating our development and clinical strategies. These advisors are not our employees and may have commitments to, or consulting or advisory contracts with, other entities that may limit their availability to us. In addition, our advisors may have arrangements with other companies to assist those companies in developing products or technologies that may compete with ours.

We currently develop our clinical drug products exclusively in one research and development facility and may utilize this facility in the future to support commercial production if our product candidates are approved. If this or any future facility or our equipment were damaged or destroyed, or if we experience a significant disruption in our operations for any other reason, our ability to continue to operate our business would be materially harmed.

We currently research and develop our product candidates exclusively in a single laboratory located in our corporate headquarters at 1098 Hamilton Court, Menlo Park, California. If this or any future facility were to be damaged, destroyed or otherwise unable to operate, whether due to war, acts of hostility, earthquakes, fire, floods, hurricanes, storms, tornadoes, other natural disasters, employee malfeasance, terrorist acts, power outages or otherwise, or if performance of our research and development facility is disrupted for any other reason, such an event could delay our clinical trials or, if our product candidates are approved and we choose to manufacture all or any part of them internally, jeopardize our ability to timely manufacture our products, if at all. If we experience delays in achieving our development objectives, or if we are unable to manufacture an approved product within a timeframe that meets our prospective customers' expectations, our business, prospects, financial results and reputation could be materially harmed.

Currently, we maintain insurance coverage totaling $10 million against product liability claims, $5 million against damage to our property and equipment and $1 million in workers compensation coverage, subject to deductibles and other limitations. If we have underestimated our insurance needs with respect to an interruption, or if an interruption is not subject to coverage under our insurance policies, we may not be able to cover our losses.

Our failure to successfully in-license, acquire, develop and market additional product candidates or approved products would impair our ability to grow our business.

Our strategy is to in-license and acquire product candidates and we may in-license and acquire commercial-stage products or engage in other strategic transactions. Additional potential transactions that we may consider include a variety of different business arrangements, including spin-offs, strategic partnerships, joint ventures, restructurings, divestitures, business combinations and investments. The success of this strategy depends partly upon our ability to identify and select promising pharmaceutical product candidates and products, negotiate licensing or acquisition agreements with their current owners and finance these arrangements.

The process of proposing, negotiating and implementing a license or acquisition of a product candidate or approved product is lengthy and complex. Other companies, including some with substantially greater financial, marketing, sales and other resources, may compete with us for the license or acquisition of product candidates and approved products. We have limited resources to identify and execute the acquisition or in-licensing of third-party products, businesses and technologies and integrate them into our current infrastructure. Moreover, we may devote resources to potential acquisitions or licensing opportunities that are never completed, or we may fail to realize the anticipated benefits of such efforts. Any such transaction may require us to incur non-recurring or other charges, may increase our near- and long-term expenditures and may pose significant integration challenges or disrupt our management or business, which could adversely affect our operations and financial results. We may not be able to acquire the rights to additional product candidates on terms that we find acceptable, or at all.

Further, any product candidate that we acquire may require additional development efforts prior to commercial sale, including preclinical or clinical testing and approval by the FDA and applicable foreign regulatory authorities. All product candidates are prone to risks of failure typical of pharmaceutical product development, including the possibility that a product candidate will not be shown to be sufficiently safe and effective for approval by regulatory authorities. In addition, we cannot provide assurance that any approved products that we acquire will be manufactured or sold profitably or achieve market acceptance.

We may be adversely affected by natural disasters and other catastrophic events, and by man-made problems such as terrorism, that could disrupt our business operations and our business continuity and disaster recovery plans may not adequately protect us from a serious disaster.

Our corporate headquarters are located in Menlo Park, California, near major earthquake and fire zones. If a disaster, power outage or other event occurred that prevented us from using all or a significant portion of our headquarters, that damaged critical infrastructure, such as enterprise financial systems, manufacturing resource planning or enterprise quality systems, or that otherwise disrupted operations, it may be difficult or, in certain cases, impossible for us to continue our business for a substantial period of time. Our contract manufacturers' and suppliers' facilities are located in multiple locations, where other natural disasters or similar events, such as blizzards, tornadoes, fires, explosions or large-scale accidents or power outages, could severely disrupt our operations and have a material adverse effect on our business, financial condition, operating results and prospects. In addition, acts of terrorism and other geo-political unrest could cause disruptions in our business or the businesses of our partners, manufacturers or the economy as a whole. All of the aforementioned risks may be further increased if we do not implement a disaster recovery plan or our partners' or manufacturers' disaster recovery plans prove to be inadequate. To the extent that any of the above should result in delays in the regulatory approval, manufacture, distribution or commercialization of our product candidates, our business, financial condition, operating results and prospects would suffer.

Our business and operations would suffer in the event of failures in our internal computer systems or those of our collaborators.

Despite the implementation of security measures, our internal computer systems and those of our current and any future partners, contractors and consultants are vulnerable to damage from computer viruses, unauthorized access, natural disasters, terrorism, war and telecommunication and electrical failures. While we have not experienced any such material system failure, accident or security breach to date, if such an event were to occur and cause interruptions in our operations, it could result in a material disruption of our manufacturing activities, development programs and our business operations. For example, the loss of manufacturing records or clinical trial data from completed or future clinical trials could result in delays in our regulatory approval efforts and significantly increase our costs to recover or reproduce the data. To the extent that any disruption or security breach were to result in a loss of, or damage to, our data or applications, or inappropriate disclosure of confidential or proprietary information, we could incur liability and the further commercialization and development of our products and product candidates could be delayed.

We may not be able to obtain or enforce patent rights or other intellectual property rights that cover our product candidates and technologies that are of sufficient breadth to prevent third parties from competing against us.

Our success with respect to our product candidates and technologies will depend in part upon our ability to obtain and maintain patent protection in both the United States and other countries, to preserve our trade secrets and to prevent third parties from infringing upon our proprietary rights. Our

ability to protect any of our product candidates from unauthorized or infringing use by third parties depends in substantial part upon our ability to obtain and maintain valid and enforceable patents.

Our patent portfolio includes patent applications in the United States. Any patents that we may obtain may be narrow in scope and thus easily circumvented by competitors. Further, in countries where we do not have granted patents, third parties may be able to make, use or sell products identical to or substantially similar to, our product candidates. Additionally, restrictive regulations governing the precise labeling of ingredients and percentages for supplements, the large number of manufacturers that produce products with many active ingredients in common and the rapid change and frequent reformulation of products may make patent protection impractical.

The patent application process, also known as patent prosecution, is expensive and time-consuming, and we and our current or future licensors and licensees may not be able to prepare, file and prosecute all necessary or desirable patent applications at a reasonable cost or in a timely manner. It is also possible that we or our current licensors, or any future licensors or licensees, will fail to identify patentable aspects of inventions made in the course of development and commercialization activities before it is too late to obtain patent protection on them. Therefore, these and any of our patent applications may not be prosecuted and enforced in a manner consistent with the best interests of our business. It is possible that defects of form in the preparation or filing of our patent applications may exist, or may arise in the future, such as with respect to proper priority claims, inventorship, claim scope or patent term adjustments. If our current licensors, or any future licensors or licensees, are not fully cooperative or disagree with us as to the prosecution, maintenance or enforcement of any patent rights, such patent rights could be compromised and we might not be able to prevent third parties from making, using and selling competing products. If there are material defects in the form or preparation of our patent applications, such applications may be invalid and unenforceable. Moreover, our competitors may independently develop equivalent knowledge, methods and know-how. Any of these outcomes could impair our ability to prevent competition from third parties, which may have an adverse impact on our business, financial condition and operating results.

Due to legal standards relating to patentability, validity, enforceability and claim scope of patents covering pharmaceutical inventions, our ability to obtain, maintain and enforce patents is uncertain and involves complex legal and factual questions. Accordingly, rights under any patents we might obtain or license may not cover our product candidates, or may not provide us with sufficient protection for our product candidates to afford a commercial advantage against competitive products or processes, including those from branded and generic pharmaceutical companies. In addition, we cannot guarantee that any patents will issue from any pending or future patent applications owned by or licensed to us. Even if patents issue, we cannot guarantee that the claims of these patents will be held valid or enforceable by a court of law or will provide us with any significant protection against competitive products or otherwise be commercially valuable to us.

Competitors in the fields of women's health and dermatologic therapeutics have created a substantial amount of prior art, including scientific publications, patents and patent applications. Our ability to obtain and maintain valid and enforceable patents depends on whether the differences between our technology and the prior art allow our technology to be patentable over the prior art. Although we believe that our technology includes certain inventions that are unique and not duplicative of any prior art, we do not currently own or license issued patents covering all of the recent developments in our technology and we are unsure of the extent to which we will obtain adequate patent protection, if any. Even if the patents do successfully issue, third parties may design around or challenge the validity, enforceability or scope of such issued patents or any other issued patents we own or license, which may result in such patents being narrowed, invalidated or held unenforceable. In particular, due to the extensive prior art relating to antibiotics for topical acne and iodine for breast health and because BPX01 and BPX03 represent forms of such therapies, respectively, the patent protection available for BPX01 and BPX03 may not prevent competitors from developing and

commercializing similar products or products that otherwise target similar indications. If the breadth or strength of protection provided by the patents we hold or pursue with respect to our product candidates is challenged, companies may be dissuaded from collaborating with us to develop, or threaten our ability to commercialize, our product candidates.

The degree of future protection of our proprietary rights is uncertain. Patent protection may be unavailable or severely limited in some cases and may not adequately protect our rights or permit us to gain or keep our competitive advantage. For example:

Patents have a limited lifespan. In the United States, the natural expiration of a patent is generally 20 years after it is filed. While various extensions may be available, the life of a patent, and the protection it affords, is limited. Without patent protection for our product candidates, however, we may be open to competition from generic versions of our product candidates. Further, the extensive period of time between patent filing and regulatory approval for a product candidate limits the time during which we can market a product candidate under patent protection, which may affect the profitability of our early-stage product candidates, in particular.

Proprietary trade secrets and unpatented know-how are also very important to our business. Although we have taken steps to protect our trade secrets and unpatented know-how by entering into confidentiality agreements with third parties, and intellectual property protection agreements with certain employees, consultants and advisors, third parties may still obtain this information or we may be unable to protect our rights. We also have limited control over the protection of trade secrets used by our suppliers, manufacturers and other third parties. There can be no assurance that binding agreements will not be breached, that we would have adequate remedies for any breach or that our trade secrets and unpatented know-how will not otherwise become known or independently discovered by our competitors. If trade secrets are independently discovered, we would not be able to prevent their use. Further, enforcing a claim that a third party illegally obtained and is using our trade secrets or unpatented know-how is expensive and time-consuming, and the outcome is unpredictable. In addition, courts outside the United States may be less willing to protect trade secret information.

Changes in patent law or patent jurisprudence could diminish the value of patents in general, thereby impairing our ability to protect our product candidates.

The United States has recently enacted and is currently implementing wide-ranging patent reform legislation. Further, recent United States Supreme Court rulings have either narrowed the scope of patent protection available in certain circumstances or weakened the rights of patent owners in certain situations. In addition to increasing uncertainty with regard to our ability to obtain patents in the future, this combination of events has created uncertainty with respect to the scope and value of patents, once obtained.

For our U.S. patent applications containing a priority claim after March 16, 2013, there is a greater level of uncertainty in the patent law. In September 2011, the Leahy-Smith America Invents Act, also known as the America Invents Act, or AIA, was signed into law. The AIA includes a number of significant changes to U.S. patent law, including provisions that affect the way patent applications will be prosecuted and may also affect patent litigation. The USPTO is currently developing regulations and procedures to govern administration of the AIA, and many of the substantive changes to patent law associated with the AIA. It is not clear what other, if any, impact(s) the AIA will have on the operation of our business. Moreover, the AIA and its implementation could increase the uncertainties and costs surrounding the prosecution of our patent applications and the enforcement or defense of our issued patents, all of which could have an adverse effect on our business. One important change introduced by the AIA is that, as of March 16, 2013, the United States transitioned to a "first-to-file" system for deciding which party should be granted a patent when two or more patent applications are filed by different parties claiming the same invention. A third party who files a patent application with the USPTO after such date but prior to us may therefore be awarded a patent covering an invention of ours even if we were the first to invent. This "first-inventor-to-file" system will require us both to remain cognizant, going forward, of the timing between invention and filing of a patent application.

Among some of the other changes introduced by the AIA are those that (i) limit where a patentee may file a patent infringement suit and (ii) provide opportunities for third parties to challenge any issued patent in the USPTO. Such changes apply to all of our U.S. patents, even those issued prior to March 16, 2013. Because of a lower evidentiary standard in USPTO proceedings, as compared to the evidentiary standard applied in U.S. federal courts, necessary to invalidate a patent claim, a third party could potentially present evidence in a USPTO proceeding sufficient for the USPTO to find a claim invalid, notwithstanding that the same evidence would be insufficient to invalidate a claim first presented in a district court action. Accordingly, a third party may attempt opportunistically to use USPTO procedures to invalidate our patent claims.

Depending on decisions by the United States Congress, the U.S. federal courts, the USPTO or similar authorities in foreign jurisdictions, the laws and regulations governing patents could change in unpredictable ways that may weaken our and our licensors' abilities to obtain new patents or to enforce existing patents we and our licensors or partners may obtain in the future.

If we are unable to protect our trademarks from infringement, our business prospects may be harmed.

We have applied for trademark protection for several trademarks in the United States. These include "BIOPHARMX," "VI₂OLET," "GET IT OFF YOUR CHEST," "THE GIRLS HAVE SOMETHING TO SAY," "THE BOOB WHISPERER" and "VIOLET". We have received a Notice of Allowance from the USPTO for each of the first five of these trademarks. The USPTO has registered our "VIOLET" trademark. We have also applied for trademark protection for our "VI₂OLET" and "BIOPHARMX" trademarks in the European Union. Although we take steps to monitor the possible infringement or misuse of our trademarks, it is possible that third parties may infringe, dilute or otherwise violate our trademark rights. Any unauthorized use of our trademarks could harm our reputation or commercial interests. In addition, our enforcement against third-party infringers or violators may be unduly expensive and time-consuming, and any remedy obtained may constitute insufficient redress relative to the damages we may suffer.

We may not be able to protect our intellectual property rights throughout the world.

Filing, prosecuting and defending patents on our product candidates in all countries throughout the world would be prohibitively expensive. The requirements for patentability may differ in certain countries, particularly developing countries. In addition, the laws of some foreign countries do not protect intellectual property rights to the same extent as laws in the United States. Consequently, we may not be able to prevent third parties from practicing our inventions in all countries outside the

United States. Competitors may use our technologies in jurisdictions where we have not obtained patent protection to develop their own products and, further, may export otherwise infringing products to territories where we have patent protection insufficient to guard against such infringement. These products may compete with our products, and our patents or other intellectual property rights may not be effective or sufficient to prevent them from competing.

The legal systems of certain countries, particularly certain developing countries, do not favor the enforcement of patents and other intellectual property protection, particularly those relating to pharmaceuticals. In such instances, we may be unable to enjoin or otherwise prevent infringement of our patents or marketing of competing products in violation of our proprietary rights, generally. Proceedings to enforce our patent rights in foreign jurisdictions could (i) result in substantial costs and divert our efforts and attention from other aspects of our business, (ii) put our patents at risk of being invalidated or interpreted narrowly and our patent applications at risk of not issuing and (iii) provoke third parties to assert claims against us. We may not prevail in any lawsuits that we initiate and the damages or other remedies awarded, if any, may not be commercially meaningful. In addition, certain countries in Europe and certain developing countries have compulsory licensing laws under which a patent owner may be compelled to grant licenses to third parties. In those countries, we may be unable to seek adequate remedies to address infringement and/or material diminishment of the value of our patents, which could limit our potential revenue opportunities in such jurisdictions. Accordingly, our efforts to establish or enforce our intellectual property rights around the world may be inadequate to obtain a significant commercial advantage from our intellectual property. Finally, our ability to protect and enforce our intellectual property rights may be adversely affected by unforeseen changes in foreign intellectual property laws.

If we fail to comply with our obligations under our intellectual property license agreements, we could lose license rights that are important to our business and development of our product candidates.

We are a party to certain license agreements that impose various royalty and other obligations on us. If we fail to comply with these obligations, the respective licensors may have the right to terminate the license, in which event we may not be able to develop or market the affected product candidate. Our license agreement with NuTech expires when both parties cease to produce or research an applicable product for a period of five years and our license agreement with Iogen is intended to be of perpetual duration. Both agreements may be terminated in the event of a breach. The loss of such rights could materially adversely affect our business, financial condition, operating results and prospects. For more information about these license arrangements, see "Business—Technology and Intellectual Property—Strategic Alliances and Partnerships."

If we are sued for infringing intellectual property rights of third parties, it will be costly and time-consuming and an unfavorable outcome in that litigation could have a material adverse effect on our business.

Our commercial success depends upon our ability to develop, manufacture, market and sell our product candidates and use our proprietary technologies without infringing the proprietary rights of third parties. We cannot guarantee that marketing and selling such candidates and using such technologies will not infringe existing or future patents. Numerous U.S. and foreign issued patents and pending patent applications owned by third parties exist in the fields relating to our product candidates. As the biotechnology and pharmaceutical industries expand and more patents issue, the risk increases that others may assert that our product candidates, technologies or methods of delivery or use infringe their patent rights. Moreover, it is not always clear to industry participants, including us, which patents cover various drugs, biologics, drug delivery systems or their methods of use, and which of these patents may be valid and enforceable. Thus, due to the large number of patents issued and patent applications filed in our fields, third parties may allege they have patent rights encompassing our product candidates, technologies or methods.

In addition, our product candidates or proprietary technologies may infringe patents owned and/or filed by third parties, or third parties may allege such infringement. Because (i) some patent applications in the United States may be maintained in secrecy until the patents are issued, (ii) patent applications in the United States and many foreign jurisdictions are typically not published until 18 months after filing and (iii) publications in the scientific literature often lag behind actual discoveries, we cannot be certain that others have not filed patent applications for technology covered by our own and in-licensed issued patents or our pending applications. Our competitors may have filed, and may in the future file, patent applications covering our product candidates or technology similar to ours. Any such patent application may have priority over our own and in-licensed patent applications or patents, which could further require us to obtain rights to issued patents covering such technologies. If another party has filed a U.S. patent application on inventions similar to those owned or in-licensed to us, we or, in the case of in-licensed technology, the licensor may have to participate, in the United States, in an interference proceeding to determine priority of invention.

We may be exposed to, or threatened with, future litigation by third parties having patent or other intellectual property rights alleging that our product candidates or proprietary technologies infringe such third parties' intellectual property rights, including litigation resulting from filing under Paragraph IV of the Hatch-Waxman Act. Such lawsuits can be costly and could adversely affect our operating results and divert the attention of managerial and technical personnel, even if we do not infringe such patents or the patents asserted against us are later invalidated. A court may, however, decide that we are infringing the third party's patents and order us to cease the activities covered by the patents. In addition, there is a risk that a court will order us to pay to such third party damages for having violated the other party's patents.

As a result of patent infringement claims, or to avoid potential claims, we may choose or be required to seek licenses from third parties. These licenses may not be available on commercially acceptable terms, or at all. Even if we are able to obtain a license, the license would likely obligate us to pay license fees or royalties or both, and the rights granted to us might be nonexclusive, which could result in our competitors gaining access to the same intellectual property, or such rights might be restrictive and limit our present and future activities. Ultimately, we or a licensee could be prevented from commercializing a product, or forced to cease some aspect of our business operations, if, as a result of actual or threatened patent infringement claims, we are unable to enter into licenses on acceptable terms.

In addition to possible infringement claims against us, we may become a party to other patent litigation and other proceedings, including interference, derivation, re-examination or other post-grant proceedings declared or granted by the USPTO, and similar proceedings in foreign countries, regarding intellectual property rights with respect to our current or future products.

There is a substantial amount of litigation involving patent and other intellectual property rights in the biotechnology and pharmaceutical industries, generally. To date, no litigation asserting infringement claims has ever been brought against us. If a third party claims that we infringe its intellectual property rights, we may face a number of issues, including:

Some of our competitors may be able to sustain the costs of complex patent litigation more effectively than we can because they have substantially greater resources. In addition, any uncertainties resulting from the initiation and continuation of any litigation could harm our ability to raise additional funds or otherwise adversely affect our business, financial condition, operating results and prospects.

Because we rely on certain third-party licensors and partners, and will continue to do so in the future, if one of our licensors or partners is sued for infringing a third party's intellectual property rights, our business, financial condition, operating results and prospects could suffer in the same manner as if we were sued directly. In addition to facing litigation risks, we have agreed to indemnify certain third-party licensors and partners against claims of infringement caused by our proprietary technologies, and we have entered or may enter into cost-sharing agreements with some our licensors and partners that could require us to pay some of the costs of patent litigation brought against those third parties whether or not the alleged infringement is caused by our proprietary technologies. In certain instances, these cost-sharing agreements could also require us to assume greater responsibility for infringement damages than our technology alone would otherwise suggest.

We may become involved in lawsuits to protect or enforce our patents or other intellectual property or the patents of our licensors, which could be expensive and time-consuming.

Competitors may infringe our intellectual property, including our patent applications or the patents of our licensors. As a result, we may be required to file infringement claims to stop third-party infringement or unauthorized use. Such proceedings and/or litigation can be expensive—particularly for a company of our size—and time-consuming. In addition, in an infringement proceeding, a court may decide that a patent of ours is not valid or is unenforceable, or may refuse to enjoin the other party from using the technology at issue on the grounds that our patent claims do not cover its technology or that the factors necessary to grant an injunction are not satisfied. An adverse determination in such case could put one or more of our patents at risk of being invalidated, interpreted narrowly or amended such that they fail to cover or otherwise protect our product candidates. Moreover, such adverse determinations could subject our patent applications to the risk that they will not issue, or issue with limited and potentially inadequate scope to cover our product candidates.

Interference, derivation or other proceedings brought at the USPTO may be necessary to determine the priority or patentability of inventions with respect to our patent applications or those of our licensors or potential partners. Litigation or USPTO proceedings brought by us may fail or may be invoked against us by third parties. Even if we are successful, domestic or foreign litigation, or USPTO or foreign patent office proceedings may result in substantial costs and distraction to our management. We may not be able, alone or with our licensors or potential partners, to prevent misappropriation of our proprietary rights, particularly in countries where the laws may not protect such rights as fully as in the United States.

Furthermore, because of the substantial amount of discovery required in connection with intellectual property litigation or other proceedings, there is a risk that we may, intentionally or incidentally, disclose some of our confidential information. In addition, during the course of this kind of litigation or proceedings, there could be public announcements of the results of hearings, motions or

other interim proceedings or developments or public access to related documents. If investors perceive these results to be negative, the market price for our common stock could be significantly harmed.

Risks Related to this Offering, the Securities Markets and Ownership of Our Common Stock

There has been no established public market for our common stock, the stock price of our common stock may be volatile or may decline and you may not be able to resell your shares at or above the offering price.

Our common stock currently trades on the OTCQB Marketplace with very limited daily trading volume. In connection with this offering, we have been approved to list our common stock on the NYSE MKT upon pricing of this offering. The offering price for our common stock was determined through negotiations between the underwriters and us and may vary from the market price of our common stock following this offering. If you purchase shares of our common stock in this offering, you may not be able to resell those shares at or above the offering price. An active or liquid market in our common stock might not develop upon the closing of this offering or, if it does develop, it might not be sustainable. The market price of our common stock may fluctuate significantly in response to numerous factors, many of which are beyond our control, including:

In addition, the stock markets, and in particular the NYSE MKT, have experienced extreme price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many pharmaceutical companies. Stock prices of many pharmaceutical companies have fluctuated in a manner unrelated or disproportionate to the operating performance of those companies. In the past, stockholders have instituted securities class action litigation following periods of market volatility. If we were involved in securities litigation, we could incur substantial costs and our resources and the attention of management could be diverted from our business.

Until our common stock is listed on a qualified national securities exchange or our common stock price exceeds $5 per share, our common stock will be considered a "penny stock" and will not qualify for exemption from the "penny stock" restrictions, which may make it more difficult for you to sell your shares.

Prior to this offering, our common shares have traded on the OTCQB Marketplace at a price of less than $5.00 per share and, as a result, is considered a "penny stock" by the SEC and subject to rules adopted by the SEC regulating broker-dealer practices in connection with transactions in "penny stocks." The SEC has adopted regulations which generally define a "penny stock" to be any equity security that is not listed on a qualified national securities exchange and that has a market price of less than $5.00 per share, or with an exercise price of less than $5.00 per share, subject to certain exceptions. For any transaction involving a penny stock, unless exempt, these rules require delivery, prior to any transaction in a penny stock, of a disclosure schedule relating to the penny stock market. Disclosure is also required to be made about current quotations for the securities and commissions payable to both the broker-dealer and the registered representative. Finally, broker-dealers must send monthly statements to purchasers of penny stocks disclosing recent price information for the penny stock held in the account and information on the limited market in penny stocks. As a result of our common shares being subject to the rules on penny stocks, the liquidity of our common shares may be adversely affected.

We have been approved to list our common stock on the NYSE MKT upon pricing of this offering. To the extent that our common stock is listed on the NYSE MKT, and we meet certain minimum financial metrics, our common shares will no longer be considered a "penny stock."

We have identified material weaknesses in our internal control over financial reporting. If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results or prevent fraud. As a result, stockholders could lose confidence in our financial and other public reporting, which would harm our business and the trading price of our common stock.

Effective internal control over financial reporting is necessary for us to provide reliable financial reports and, together with adequate disclosure controls and procedures, are designed to prevent fraud. Any failure to implement required new or improved controls, or difficulties encountered in their implementation, could cause us to fail to meet our reporting obligations. Ineffective internal control could also cause investors to lose confidence in our reported financial information, which could have a negative effect on the trading price of our common stock.

We have identified material weaknesses in our internal control over financial reporting as of January 31, 2015. As defined in Regulation 12b-2 under the Securities Exchange Act of 1934, as amended, or the Exchange Act, a "material weakness" is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim consolidated financial statements will not be prevented, or detected on a timely basis. Specifically, we determined that we had the following material weaknesses in our internal control over financial reporting: (i) inadequate segregation of duties and ineffective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both generally accepted accounting principles in the United States of America, or GAAP, and SEC guidelines.

Our accounting staff at January 31, 2015 consisted of a full-time accounting manager and an interim controller who was working full-time during quarterly reporting periods. The limited staff did not allow for effective internal control over financial reporting due to the lack of adequate segregation of duties and insufficient secondary review of GAAP related to the accounting for warrants, convertible notes payable and convertible redeemable preferred stock, accounting for stock-based compensation and the recording of liabilities in the appropriate reporting period commensurate with our financial reporting requirements. As a result, adjustments identified as part of the audit process were necessary to completely and accurately present the consolidated financial statements in accordance with GAAP. Consequently, post-closing adjustments during the year ended December 31, 2014 included increases to current liabilities, stockholders' deficit and net loss of approximately $69,000, $286,000 and $334,000, respectively, and a decrease to convertible redeemable preferred stock of approximately $289,000. Post-close entries for the one-month transition period ended January 31, 2015 included decreases to current liabilities and net loss of approximately $261,000 and $117,000, respectively.

As of the date hereof, we have not remediated these material weaknesses. Subsequent to January 31, 2015, we have hired a controller who has extensive public company experience and is a certified public accountant and are also in the process of recruiting a full-time Chief Financial Officer. To better manage our internal systems and controls, we are currently implementing an enterprise resource planning system throughout the company. We also intend to implement the following changes during the year ending January 31, 2016: (i) appoint additional qualified personnel to address inadequate segregation of duties and ineffective risk management; and (ii) adopt sufficient written policies and procedures for accounting and financial reporting. The remediation efforts set out above are largely dependent upon our securing additional financing, including the proceeds from this offering, to cover the costs of implementing the changes required. If we are unsuccessful in securing such funds, remediation efforts may be materially and adversely affected. In addition, the implementation of these

initiatives may not fully address any material weakness or other deficiencies that we may have in our internal control over financial reporting.

Even if we develop effective internal control over financial reporting, such controls may become inadequate due to changes in conditions or the degree of compliance with such policies or procedures may deteriorate, which could result in the discovery of additional material weaknesses and deficiencies. In any event, the process of determining whether our existing internal control over financial reporting is compliant with Section 404 of the Sarbanes-Oxley Act, or Section 404, and sufficiently effective requires the investment of substantial time and resources, including by our Chief Executive Officer and other members of our senior management. As a result, this process may divert internal resources and take a significant amount of time and effort to complete. In addition, we cannot predict the outcome of this process and whether we will need to implement remedial actions in order to establish effective controls over financial reporting. The determination of whether or not our internal controls are sufficient and any remedial actions required could result in us incurring additional costs that we did not anticipate, including the hiring of outside consultants. We may also fail to timely complete our evaluation, testing and any remediation required to comply with Section 404.

We are required, pursuant to Section 404, to furnish a report by management on, among other things, the effectiveness of our internal control over financial reporting. However, for as long as we are a "smaller reporting company," our independent registered public accounting firm will not be required to attest to the effectiveness of our internal control over financial reporting pursuant to Section 404. While we could be a smaller reporting company for an indefinite amount of time, and thus relieved of the above-mentioned attestation requirement, an independent assessment of the effectiveness of our internal control over financial reporting could detect problems that our management's assessment might not. Such undetected material weaknesses in our internal control over financial reporting could lead to financial statement restatements and require us to incur the expense of remediation.

We will incur significantly-increased costs as a result of and devote substantial management time to operating as a newly-listed company on the NYSE MKT.

As a newly-listed company on the NYSE MKT, we will incur significant legal, accounting and other expenses that we did not incur before when trading on the OTCQB Marketplace. For example, we will be subject to the rules and regulations subsequently implemented by the NYSE MKT, including changes in corporate governance practices. These requirements will increase our legal and financial compliance costs and will render some activities more time-consuming and costly. In addition, our management and other personnel will need to divert attention from operational and other business matters to devote substantial time to these listing requirements.

If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our stock price and trading volume could decline.

The trading market for our common stock will depend in part upon the research and reports that securities or industry analysts publish about us or our business. We do not currently have and may never obtain research coverage by securities and industry analysts. If no securities or industry analysts commence coverage of our company, the trading price for our stock would be negatively impacted. If we obtain securities or industry analyst coverage and if one or more of the analysts who covers us downgrades our stock or publishes inaccurate or unfavorable research about our business, our stock price would likely decline. If one or more of these analysts ceases coverage or fails to publish reports on us regularly, demand for our stock could decrease, which could cause our stock price and trading volume to decline.

Future sales of our common stock or securities convertible into our common stock may depress our stock price.

Sales of a substantial number of shares of our common stock or securities convertible into our common stock in the public market could occur at any time. These sales, or the perception in the market that the holders of a large number of shares intend to sell shares, could reduce the market price of our common stock. After this offering and the KIP private placement, we will have 21,142,923 outstanding shares of common stock, based on the number of shares outstanding as of April 30, 2015. 15,948,667 of these shares are subject to a lockup agreement that expires at least 180 days after the date of this prospectus, as more fully described in the section entitled "Shares Eligible for Future Sale." Moreover, we have registered all shares of common stock that we may issue under our equity compensation plan and may issue additional shares upon the exercise of warrants described elsewhere in this prospectus. These shares can be freely sold in the public market upon issuance, unless they are subject to the lock-up agreements described above and in the section entitled "Shares Eligible for Future Sale—Lock-Up/Market Standoff Agreements." If a large number of shares of our common stock or securities convertible into our common stock are sold in the public market after they become eligible for sale, the sales could reduce the trading price of our common stock and impede our ability to raise future capital. CRT Capital Group LLC, or CRT Capital, however, may permit our officers, directors and other stockholders who are subject to these lock-up agreements to sell shares prior to the end of the lock-up period.

Our directors, executive officers and principal stockholders will continue to exert significant influence over us after this offering and could impede a change of corporate control.

Upon completion of this offering and the KIP private placement, our directors, executive officers and holders of more than 5% of our common stock, together with their affiliates, will beneficially own, in the aggregate, 48.60% of our outstanding common stock. As a result, these stockholders, acting together, will have the ability to exert significant influence on matters submitted to our stockholders for approval, including the election of directors and any merger, consolidation or sale of all or substantially all of our assets. In addition, these stockholders, acting together, will have the ability to significantly influence the management and affairs of our company. Accordingly, this concentration of ownership could harm the market price of our common stock by:

See "Principal Stockholders" below for more information regarding the ownership of our outstanding stock by our executive officers, directors and holders of more than 5% of our common stock, together with their affiliates.

Delaware law and provisions in our certificate of incorporation and bylaws could make a merger, tender offer or proxy contest difficult, thereby depressing the trading price of our common stock.

The anti-takeover provisions of the Delaware General Corporation Law, or DGCL, may discourage, delay or prevent a change of control by prohibiting us from engaging in a business combination with stockholders owning in excess of 15% of our outstanding voting stock for a period of three years after the person becomes an interested stockholder, even if a change of control would be

beneficial to our existing stockholders. In addition, our certificate of incorporation and bylaws contain provisions that may make the acquisition of our company more difficult, including the following:

These provisions could also discourage proxy contests and make it more difficult for you and other stockholders to elect directors of your choosing so as to cause us to take certain corporate actions you desire.

We could be subject to claims based on the defective corporate acts ratified by us pursuant to Section 204 of the DGCL.

On January 22, 2015, our board of directors ratified Series A preferred stock issuances made from April 11, 2014 to November 17, 2014 that were defective corporate acts under Section 204 of the DGCL, or Section 204. In March 2015, we subsequently filed a Certificate of Validation with the Secretary of State of the State of Delaware pursuant to Section 204 to validate such Series A preferred stock issuances as of the time of original issuance. Although we believe we have fully complied with the procedures and requirements of Section 204, there can be no assurance that claims that the defective corporate acts or putative stock ratified are void or voidable due to the identified failure of authorization, claims that the Delaware Court of Chancery should declare in its discretion that the ratification pursuant to Section 204 not be effective or be effective only on certain conditions or other claims related thereto, will not be asserted, and, if asserted, that any such claims will not be successful. Under Section 204, these claims must be brought within 120 days from the filing of the Certificate of Validation. If the ratification pursuant to Section 204 was not effective, then the issuance of the shares of Series A preferred stock would be invalid and we could have liability to holders of Series A preferred stock, including being subject to monetary damages and rescission rights.

We are a "smaller reporting company" and, as a result of the reduced disclosure and governance requirements applicable to smaller reporting companies, our common stock may be less attractive to investors.

We are a "smaller reporting company," meaning that we are not an investment company, an asset-backed issuer, or a majority-owned subsidiary of a parent company that is not a "smaller reporting company" and have a public float of less than $75 million and annual revenues of less than $50 million during the most recently completed fiscal year. As a "smaller reporting company," we are subject to lesser disclosure obligations in our SEC filings are compared to other issuers. Specifically, "smaller reporting companies" are able to provide simplified executive compensation disclosures in their filings, are exempt from the provisions of Section 404(b) of the Sarbanes-Oxley Act requiring that independent registered public accounting firms provide an attestation report on the effectiveness of internal control over financial reporting and have certain other decreased disclosure obligations in their SEC filings, including, among other things, only being required to provide two years of audited consolidated financial statements in annual reports. Decreased disclosures in our SEC filings due to our status a "smaller reporting company" may make it harder for investors to analyze our operating results and financial prospects.

Because management has broad discretion as to the use of the net proceeds from this offering and the KIP private placement, you may not agree with how we use them, and such proceeds may not be applied successfully.

Our management will have considerable discretion over the use of proceeds from this offering and the KIP private placement. We currently intend to use approximately $4.0 million of the net proceeds from this offering and the KIP private placement for research and development expenses associated with the development of our product candidates and research and development pipeline, along with approximately $3.0 million for marketing and advertising expense to build awareness and sell through volume at drug stores and supplement stores for VI₂OLET, with the balance primarily used to fund working capital, capital expenditures and other general corporate purposes, including strategic hires. In addition, a portion of the net proceeds may also be used to acquire or in-license, as applicable, product candidates, technologies, compounds, other assets or complementary businesses. However, our management will have broad discretion in the application of the net proceeds from this offering and the KIP private placement and could spend the proceeds in ways that do not necessarily improve our operating results or enhance the value of our common stock, or that you otherwise do not agree with. You will be relying on the judgment of our management concerning these uses and you will not have the opportunity, as part of your investment decision, to assess whether the proceeds are being used appropriately. The failure of our management to apply these funds effectively could, among other things, result in unfavorable returns and uncertainty about our prospects, each of which could cause the price of our common stock to decline.

If you purchase shares of common stock sold in this offering, you will incur immediate and substantial dilution.

If you purchase shares of our common stock in this offering, you will experience substantial and immediate dilution in the pro forma net tangible book value per share after giving effect to this offering at the assumed public offering price of $3.00 per share, which is the midpoint of the price range listed on the cover page of this prospectus, and the KIP private placement, because the price that you pay will be substantially greater than the pro forma net tangible book value per share of the common stock that you acquire. This dilution is due in large part to the fact that our earlier investors paid substantially less than the offering price when they purchased shares of our capital stock. You will experience additional dilution upon exercise of the outstanding warrants and outstanding stock options and other equity awards that may be granted under our 2014 Plan, and when we otherwise issue additional shares of our common stock. For more information, see "Dilution."

We have never paid cash dividends on our capital stock, and we do not anticipate paying any cash dividends in the foreseeable future.

We have never paid cash dividends on our capital stock. We currently intend to retain any future earnings to finance the operation and expansion of our business, and we do not expect to declare or pay any cash dividends in the foreseeable future. Consequently, stockholders must rely on sales of their common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investment. In lieu of payment in cash for accrued and unpaid interest on our Series A preferred stock, which interest we have classified as a "deemed dividend," we plan to issue 109,968 additional shares of our common stock to the holders of our Series A preferred stock in connection with this offering.

This prospectus contains forward-looking statements. All statements contained in this prospectus other than statements of historical fact, including statements regarding our future consolidated results of operations and financial position, our business strategy and plans, our objectives for future operations, our expectations for revenues and profitability, prospective products, market acceptance, the outcome of contingencies such as legal proceedings, anticipated market trends, our anticipated needs for working capital, current or planned clinical trials, anticipated research and development activities, anticipated commencement dates for clinical trials, anticipated completion dates for clinical trials, anticipated meetings with the FDA or other regulatory matters concerning our product candidates, anticipated dates for submissions to obtain required regulatory marketing approvals, anticipated dates for commercial introduction of products and other statements concerning our future operations and activities are forward-looking statements. The words "believe, "may," "will," "estimate," "potentially," "continue," "anticipate," "intend," "expect," "could," "would," "project," "plan" and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our consolidated financial condition, consolidated results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in the "Risk Factors" section. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this prospectus may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this prospectus or to conform these statements to actual results or revised expectations.

You should read this prospectus and the documents that we reference in this prospectus and have filed with the SEC as exhibits to the registration statement of which this prospectus is a part with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect.

Unless otherwise indicated, information contained in this prospectus concerning our industry and the markets in which we operate, including our general expectations and market position, market opportunity and market size, is based on information from various sources, including independent industry publications. In presenting this information, we have also made assumptions based on such data and other similar sources, and on our knowledge of, and our experience to date in, the markets for our products. This information involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. We believe that the information from these industry publications that is included in this prospectus is reliable. The industry in which we operate is subject to a high degree of uncertainty and risk due to a variety of factors, including those described in "Risk Factors." These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us.

We estimate that the net proceeds from our sale of shares of common stock in this offering, excluding the proceeds from the KIP private placement, at an assumed public offering price of $3.00 per share, which is the midpoint of the price range listed on the cover page of this prospectus, after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us, will be approximately $8.1 million, or $9.5 million if the underwriters exercise their option to purchase additional shares in full. We also expect to receive net proceeds of $2.0 million from the sale by us of shares of our common stock in the KIP private placement, at a price of $1.85 per share, for an aggregate amount to be raised by us in this offering and the KIP private placement of $10.1 million.

As of April 30, 2015, we had cash of $0.5 million. We currently intend to use the net proceeds we receive from this offering and the KIP private placement, together with our existing cash, as follows:

This expected use of the net proceeds from the offering and the KIP private placement represents our intentions based upon our current plans and business conditions. As of the date of this prospectus, we cannot predict with any certainty all of the particular uses for the net proceeds or the amounts that we will actually spend on the uses set forth above. The amounts and timing of our actual expenditures and the extent of clinical development may vary significantly depending on numerous factors, including the status, results and timing of our current preclinical studies and ongoing clinical trials or clinical trials we may commence in the future, product approval process with the FDA, any collaborations that we may enter into with third parties and any unforeseen cash needs. As a result, our management will retain broad discretion over the allocation of the net proceeds from this offering and the KIP private placement.

We believe that the net proceeds from this offering and the KIP private placement, together with our existing cash, will be sufficient to meet our anticipated cash requirements for at least the next 12 months. This expected use of the net proceeds from this offering represents our intentions based upon our current plans and business conditions. We cannot specify with certainty all of the particular uses of the net proceeds that we will receive from this offering and the KIP private placement, or the amounts that we will actually spend on the uses set forth above. The amounts and timing of our actual expenditures will depend on numerous factors, including the ongoing status of and results from clinical trials and other studies, as well as any strategic collaborations that we may enter into with third parties for our product candidates, any in-licensing transactions or acquisitions, any unforeseen cash needs and the performance of our investments. We anticipate that additional financing will be needed in order to commercialize new product candidates and complete our current clinical trials. No assurance can be given that such additional financing will be available on terms acceptable to us, if at all.

Pending their use as described above, we plan to invest the net proceeds in short-term, interest- bearing obligations, investment-grade instruments and certificates of deposit or guaranteed obligations of the U.S. government.

We have never declared or paid cash dividends on our common stock. We currently intend to retain all available funds and any future earnings for use in the operation of our business and do not anticipate paying any dividends on our common stock in the foreseeable future. Any future determination to declare dividends will be made at the discretion of our board of directors and will depend on our financial condition, operating results, capital requirements, general business conditions and other factors that our board of directors may deem relevant.

Prior to this offering, our common shares have been traded on the OTCQB Marketplace under the symbol "BPMX." Except for one quotation dated February 14, 2013 of $0.15, there were no reported quotations for our common stock during 2013.

The following table sets forth, for each of the calendar periods indicated, the quarterly high and low bid prices for our common shares quoted on the OTCQB Marketplace. The prices in the table represent prices between dealers and do not include adjustments for retail markup, markdown or commission, and may not represent actual transactions.

The last reported sale price for our common shares on June 15, 2015 was $3.75 per share. As of April 30, 2015, there were approximately 56 registered holders of record of our common shares, based upon information received from our stock transfer agent. However, this number does not include beneficial owners whose shares were held of record by nominees, including broker-dealers. We believe that there are a significantly larger number of beneficial owners of shares of our common stock than the number of record holders. In connection with this offering, we have been approved to list our common stock on the NYSE MKT under the symbol "BPMX" upon pricing of this offering.

The following table sets forth our cash and capitalization as of April 30, 2015 on:

The pro forma as adjusted information set forth in the table below is illustrative only and will be adjusted based on the actual offering price and other terms of this offering determined at pricing.

You should read this table together with "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Description of Capital Stock" and our audited consolidated financial statements and related notes included elsewhere in this prospectus.

	As of April 30, 2015

	Actual			Pro forma			Pro forma As Adjusted(1)
	(in thousands, except share and per share data)
Cash	$	479		$	1,079		$	11,179



Series A convertible redeemable preferred stock, $0.001 par value; 10,000,000 shares authorized;
4,207,987 shares issued and outstanding actual, no shares issued or outstanding pro forma and pro forma as adjusted		7,061			—			—
Stockholders' equity (deficit):
Common stock, $0.001 par value; 90,000,000 shares authorized;
12,026,994 shares issued and outstanding actual, 16,589,229 shares issued and outstanding pro forma and 21,196,977 shares issued and outstanding, pro forma as adjusted		12			17			21
Additional paid-in capital		6,336			13,992			24,088
Accumulated deficit		(14,258	)		(14,258	)		(14,258	)

Total stockholders' equity (deficit)		(7,910	)		(249	)		9,851

Total capitalization	$	(849	)	$	(249	)	$	9,851

The number of shares of our common stock to be outstanding after this offering and the KIP private placement in the table above excludes:

If you invest in our common stock, your interest will be diluted to the extent of the difference between the amount per share paid by purchasers of shares of common stock in this offering and the pro forma net tangible book value per share of common stock immediately after this offering and the KIP private placement.

As of April 30, 2015, our historical net tangible book value was approximately $(1.0) million, or $(0.08) per share of common stock. Our historical net tangible book value per share represents the amount of our total tangible assets reduced by the amount of our total liabilities divided by 12,026,994, the total number of shares of our common stock outstanding as of April 30, 2015.

As of April 30, 2015, our pro forma net tangible book value was approximately $(0.4) million, or $(0.02) per share of common stock. Our pro forma net tangible book value per share represents the amount of our total tangible assets reduced by the amount of our total liabilities and divided by the 16,589,229 shares of our common stock outstanding as of April 30, 2015, which number assumes (i) the automatic conversion of all 4,207,987 outstanding shares of our Series A preferred stock into shares of our common stock, (ii) the additional issuance of 109,968 shares of common stock in lieu of payment in cash for accrued and unpaid interest on the Series A preferred stock, effective immediately upon receipt of approval to list on the NYSE MKT, (iii) the exercise of a warrant in June 2015 for 54,054 shares of our common stock, (iv) the issuance of 166,694 shares of our common stock pursuant to the conversion of a convertible note, together with accrued interest thereon, that will occur immediately prior to the closing of the offering, based on an assumed conversion price of $3.00 per share, which is the midpoint of the price range listed on the cover page of this prospectus and (v) the issuance of 23,532 additional shares of our common stock, based on an assumed public offering price of $3.00 per share, which is the midpoint of the price range listed on the cover page of this prospectus, pursuant to the warrant exercise agreements.

After giving effect to our sale in this offering of 3,333,334 shares of our common stock, at an assumed public offering price of $3.00 per share, which is the midpoint of the price range listed on the cover page of this prospectus, and the sale of 1,081,081 shares (for an aggregate purchase price of $2.0 million at a price of $1.85 per share) of our common stock, and vesting and issuance of 193,333 shares of our common stock, in the KIP private placement, after deducting estimated underwriting discounts and commissions of $0.7 million and estimated offering expenses payable by us of $1.2 million, our pro forma as adjusted net tangible book value as of April 30, 2015 would have been approximately $9.7 million, or $0.46 per share of our common stock. This represents an immediate increase in pro forma net tangible book value of $0.48 per share to our existing stockholders and an immediate dilution of $2.54 per share to investors purchasing shares in this offering, as follows:


Assumed offering price per share		3.00
Pro forma net tangible book value per share as of April 30, 2015	$	(0.02	)
Increase in pro forma net tangible book value per share attributable to new investors in this offering		0.41
Pro forma as adjusted net tangible book value per share after this offering		0.39
Pro forma as adjusted net tangible book value per share after this offering and the KIP private placement		0.46
Dilution in net tangible book value per share to new investors in this offering (not including the KIP private placement)	$	2.61
Dilution in net tangible book value per share to new investors in this offering (including the KIP private placement)	$	2.54

The number of shares used to calculate the pro forma as adjusted net tangible book value per share after this offering is the above 16,589,229 plus the 3,333,334 shares issued in this offering. The

number of shares used to calculate the pro forma as adjusted net tangible book value per share after this offering and the KIP private placement is the 16,589,229 plus the 3,333,334 shares of our common stock issued in this offering and the sale of 1,081,081 shares of our common stock, and the vesting and issuance of 193,333 shares of our common stock, in the KIP private placement.

If the underwriters exercise their option to purchase up to 500,000 additional shares of our common stock in full, the pro forma as adjusted net tangible book value per share of our common stock after giving effect to this offering and the KIP private placement would be $0.51 per share, and the dilution in net tangible book value per share to investors in this offering would be $2.49 per share.

A $1.00 increase or decrease in the assumed public offering price of $3.00 per share, which is the midpoint of the price range listed on the cover page of this prospectus, would increase or decrease our adjusted pro forma net tangible book value per share after this offering by approximately $3.1 million, and increase or decrease dilution per share to new investors by approximately $0.85, after deducting the underwriting discount and estimated offering expenses payable by us

To the extent that any outstanding options and warrants are exercised, investors will experience further dilution.

The number of shares of our common stock to be outstanding after this offering and the KIP private placement in the table above excludes:

The selected consolidated statement of operations data presented below for the one-month period ended January 31, 2015 and the years ended December 31, 2014 and 2013 and our selected audited consolidated balance sheet as of January 31, 2015 and December 31, 2014 and 2013 are derived from our audited financial statements included elsewhere in this prospectus. We derived the unaudited consolidated statements of operations data for the three months ended April 30, 2015 and 2014 and the one-month period ended January 31, 2014 and the consolidated balance sheet as of April 30, 2015 from our unaudited consolidated financial statements included elsewhere in this prospectus. We have prepared the unaudited financial information on the same basis as the audited consolidated financial statements and have included, in our opinion, all adjustments, consisting only of normal recurring adjustments, we consider necessary for a fair presentation of the financial information set forth in those statements. The following selected consolidated financial data should be read with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and related notes and other information included elsewhere in this prospectus. Our historical results are not necessarily indicative of the results to be expected in the future.

	Three months ended April 30,						Month ended January 31,						Year ended December 31,

	2015			2014			2015			2014			2014			2013
	(in thousands, except share and per share data)
										(Unaudited)
Revenues, net	$	4			—		$	1		$	—		$	—		$	—
Cost of goods sold		9			—			1			—			—			—

Gross (deficit) margin		(5	)		—			—			—			—			—
Operating expenses:
Research and development		1,076			540			365			103			2,519			671
Sales and marketing		1,081			214			378			73			2,299			132
General and administrative		1,026			531			401			165			2,953			711

Total operating expenses		3,183			1,285			1,144			341			7,771			1,514

Loss from operations		(3,188	)		(1,285	)		(1,144	)		(341	)		(7,771	)		(1,514	)
Other expense		(436	)		—			—			—			—			—
Other income		—			—			—			—			40			—
Interest expense, net		—			(50	)					(23	)		(76	)		(74	)

Net and comprehensive loss		(3,624	)		(1,335	)		(1,144	)		(364	)		(7,807	)		(1,588	)
Accretion on Series A convertible redeemable preferred stock		(123	)		—			(43	)		—			(163	)		—
Deemed dividend on Series A convertible redeemable preferred stock		(116	)		—			(50	)		—			(159	)		—

Net loss available to common stockholders	$	(3,863	)	$	(1,335	)	$	(1,237	)	$	(364	)	$	(8,129	)	$	(1,588	)



Basic and diluted net loss available to common stockholders per share	$	(0.33	)	$	(0.14	)	$	(0.11	)	$	(0.05	)	$	(0.80	)	$	(0.22	)



Shares used in computing basic and diluted net loss per share		11,741,000			9,351,000			11,408,000			7,750,000			10,217,000			7,119,000

							December 31,

	April 30, 2015			January 31, 2015			December 31,
	April 30, 2015			January 31, 2015			2014			2013
	(in thousands, except share and per share data)
Cash	$	479		$	1,305		$	2,111		$	3
Working capital (deficit)		(1,302	)		148			1,153			(732	)
Total assets		1,825			2,173			2,990			371
Convertible notes payable		—			—			—			1,028
Series A convertible redeemable preferred stock, $0.001 par value; 10,000,000 shares authorized;
4,207,987, 4,207,987, 4,207,987 and no shares issued and outstanding at April 30, 2015, January 31, 2015, December 31, 2014 and December 31, 2013, respectively (liquidation preference of $8.1 million as of April 30, 2015)		7,061			6,823			6,730			—
Common stock, $0.001 par value; 90,000,000 shares authorized;
12,026,994, 11,415,416, 11,375,311 and 7,025,000 shares issued and outstanding at April 30, 2015, January 31, 2015, December 31, 2014 and December 31, 2013, respectively		12			11			11			7
Additional paid-in capital		6,336			4,416			4,372			306
Accumulated deficit		(14,258	)		(10,634	)		(9,490	)		(1,683	)
Total stockholders' deficit		(7,910	)		(6,207	)		(5,107	)		(1,370	)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and related notes appearing elsewhere in this prospectus. Some of the information contained in this discussion and analysis or set forth elsewhere in this prospectus, including information with respect to our plans and strategy for our business and related financing, includes forward-looking statements that involve risks and uncertainties. As a result of many factors, including those factors set forth in the "Risk Factors" section of this prospectus, our actual results could differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.

We are a specialty pharmaceutical company focused on utilizing our proprietary drug delivery technologies to develop and commercialize novel prescription and OTC products that address large markets in women's health and dermatology. Our objective is to develop products that treat health or age-related conditions that: (1) are not presently being addressed or treated at all or (2) are currently treated with drug therapies or drug delivery approaches that are sub-optimal. Our strategy is designed to bring new products to market by identifying optimal delivery mechanisms and/or alternative applications for FDA-approved APIs and biological materials, while, in appropriate circumstances, reducing the time, cost and risk typically associated with new product development by taking advantage of the abbreviated regulatory pathway available for reformulated drugs that are bioequivalent to FDA-approved products. Our current platform technologies include innovative delivery mechanisms for molecular iodine and antibiotics.

Since our inception, we have devoted substantially all of our efforts to developing our product candidates including conducting preclinical and clinical trials and providing general and administrative support for these operations. We are incurring research and development costs on two projects: molecular iodine and BPX01. The molecular iodine project includes an OTC dietary supplement version, or VI₂OLET, for the alleviation of symptoms of FBC and BPX03, a prescription drug version, for the treatment of moderate to severe, periodic breast pain associated with FBC and cyclic mastalgia. We began shipping VI₂OLET to retailers in December 2014. We commercially launched our breast health supplement at the end of 2014, although to-date we have generated a de minimis amount of revenue from product sales and we are not dependent on sales to any one customer. We have financed our operations primarily through the sale of equity securities and convertible debt securities from which we raised $11.0 million of net cash from our inception through April 30, 2015.

We were originally incorporated on August 30, 2010 in Nevada under the name Thompson Designs, Inc. On January 23, 2014, we (then operating as Thompson Designs, Inc.), BioPharmX, Inc. and stockholders of BioPharmX, Inc., who collectively owned 100% of BioPharmX, Inc., entered into and consummated transactions pursuant to the Share Exchange, whereby we issued to the stockholders of BioPharmX, Inc. an aggregate of 7,025,000 shares of our common stock, in exchange for 100% of the shares of BioPharmX, Inc. The shares of our common stock received by the stockholders of BioPharmX, Inc. in the Share Exchange constituted approximately 77.8% of our then issued and outstanding common stock, after giving effect to the issuance of shares pursuant to the share exchange agreement. As a result of the Share Exchange, BioPharmX, Inc. became our wholly-owned subsidiary. For accounting purposes, the Share Exchange was treated as a reverse acquisition with BioPharmX, Inc. as the acquirer and us as the acquired party, and as a result the historical financial statements prior to the Share Exchange included in this prospectus and registration statement are the

historical financial statements of BioPharmX, Inc. On March 3, 2014, we changed our name to BioPharmX Corporation. On May 16, 2014, we reincorporated from Nevada to Delaware.

On March 26, 2015, our board of directors approved a change in our fiscal year end from December 31 to January 31, beginning January 31, 2015. References to any previous fiscal years mean the fiscal years ending on December 31.

Three Months Ended April 30, 2015 and 2014, Months Ended January 31, 2015 and 2014 and Years Ended December 31, 2014 and 2013

In the three months ended April 30, 2015 and the one-month period ended January 31, 2015, we recognized $4,000 and $1,000 of revenue respectively. We recognized de minimis revenue in the year ended December 31, 2014 and did not recognize any revenue in the year ended December 31, 2013. We shipped our first product to a retailer in December 2014. The product, our VI₂OLET iodine dietary supplement, is a new product in the dietary supplement field.

Cost of goods sold includes direct costs related to the sale of our iodine dietary supplement and amortization of our intangible asset. In the three months ended April 30, 2015 and the one-month period ended January 31, 2015, we recognized $9,000 and $1,000 of cost of goods sold, respectively. We did not recognize any cost of goods sold in the years ended December 31, 2014 and 2013. The increase in cost of goods sold is related to the increase in recognized revenue related to our product.

We expense both internal and external research and development expenses to operations as they are incurred.

The $0.5 million increase for the three months ended April 30, 2015, compared with the same period of fiscal year 2015, was primarily due to higher headcount-related, laboratory and regulatory expenses. We increased staffing to help with the logistics, final testing and meeting regulatory standards related to VI₂OLET, as well as for progressing our BPX01 candidate from preclinical formulation to pilot production in preparation for Phase 2 trials.

Research and development expenses associated with our molecular iodine project for the three months ended April 30, 2015 and 2014 were approximately $378,000 and $211,000, respectively. We anticipate commencing a Phase 3 study in 2016 for BPX03 following the completion of patient pilot studies.

Research and development expenses for our BPX01 project for the three months ended April 30, 2015 and 2014 were approximately $698,000 and $329,000, respectively. We expect to initiate our first Phase 2a clinical trial under an IND with the FDA in the first quarter of the calendar year 2016. We expect research and development expenses related to BPX01 to continue to increase period over

period, primarily due to the shift in expenses incurred internally to clinical trial costs incurred from third-party sources, which generally cost more.

Research and development expenses for the one-month periods ended January 31, 2015 and 2014 were $365,000 and $103,000, respectively. The year-over-year increase for January of $262,000 is primarily due to an increase in staffing. We employed three employees and four full-time consultants in January 2014 and increased our headcount to 13 employees and no full-time consultants in January 2015. Employee and consultant expense increased $201,000, including recruiting and relocation costs for new employees, and stock compensation expense increased $19,000 for January year-over-year. Additionally, costs increased $24,000 for regulatory and related legal expenses and one-time production costs related to producing our VI₂OLET iodine dietary supplement. Laboratory expense for ongoing research and development on future products increased by $10,000. Overhead allocated to the research and development department increased by $6,000.

Research and development expenses associated with our molecular iodine project for the one-month periods ended January 31, 2015 and 2014 were approximately $142,000 and $24,000, respectively. We anticipate commencing a Phase 3 study in 2016 for BPX03 following the completion of patient pilot studies.

Research and development expenses for our BPX01 project for the one-month periods ended January 31, 2015 and 2014 were approximately $223,000 and $79,000, respectively. We expect to initiate our first Phase 2a clinical trial under an IND with the FDA in the first quarter of the calendar year 2016. We expect research and development expenses related to BPX01 to increase year over year, primarily due to the shift in expenses from internal to external for ramping clinical trial costs.

Research and development expenses for the years ended December 31, 2014 and 2013 were $2.5 million and $671,000, respectively. The year-over-year increase of $1.8 million is primarily due to a $1.0 million increase in employees' salaries and $198,000 due to stock compensation expense during 2014. In 2013, we were using primarily consultants who were converted to employees in early 2014. Additionally, costs increased $260,000 due to quality testing and one-time production costs related to producing our VI₂OLET iodine dietary supplement. Laboratory expenses for ongoing research and development on future products increased by $121,000. Overhead allocated to the research and development department increased by $170,000.

Research and development expenses for the year ended December 31, 2013 consisted primarily of employee and consultant compensation and non-employee stock compensation expense in the amount of $527,000 and laboratory supplies of $51,000.

Research and development expenses for the molecular iodine project for the years ended December 31, 2014 and 2013 were approximately $866,000 and $67,000, respectively. During the year ended December 31, 2014, the majority of the expenses were related to the technology transfer from research and development to manufacturing consisting of logistics and testing of VI₂OLET for the initial pilot production of the tablets and to establish quality and regulatory standards, along with the necessary cGMP processes for the product for larger scale manufacturing in the future.

Research and development expenses for our BPX01 project for the years ended December 31, 2014 and 2013 were approximately $1.7 million and $605,000, respectively. During the year ended December 31, 2014, we incurred research and development expenses to advance the preclinical formulation and testing of BPX01 in preparation for technology transfer to pilot production in 2015.

We expense both sales and marketing expenses to operations as they are incurred. In the periods shown, costs are related to establishing our corporate brand and efforts related to our VI₂OLET iodine dietary supplement.

The $0.9 million increase for the three months ended April 30, 2015, compared with the same period of fiscal year 2015, was primarily due to higher headcount-related costs, consulting, advertising expenses and stock-based compensation. Following the launch of our VI₂OLET iodine dietary supplement, we have been focusing on increasing customer awareness of the product through advertising campaigns, as well as by conducting consumer market research studies. Minimal sales and marketing expenses were incurred in the three-month period ended April 30, 2014, since our VI₂OLET iodine dietary supplement was not ready for commercialization at that time.

Sales and marketing expenses for the one-month periods ended January 31, 2015 and 2014 were $378,000 and $73,000, respectively. The year-over-year increase for January of $305,000 is primarily due to the ramp up in marketing and sales to launch our VI₂OLET iodine dietary supplement. Sales and marketing compensation increased $59,000 and stock compensation increased $39,000 as a result of hiring former consultants as full-time employees in 2014. Outside agencies accounted for $135,000 of the year-over-year increase to accomplish the marketing goals for our new product. Marketing costs to launch our new product increased by $43,000 and travel increased by $7,000 from 2014 to 2015. Allocated overhead, consisting of facilities, insurance and maintenance expenses, increased by $7,000.

Sales and marketing expenses for the years ended December 31, 2014 and 2013 were $2.3 million and $132,000, respectively. The year-over-year increase of $2.2 million is primarily due to the ramp up in marketing and sales to launch our VI₂OLET iodine dietary supplement. Sales and marketing compensation increased $266,000 and stock compensation increased $140,000 as a result of hiring former consultants as full-time employees in 2014. Outside agencies accounted for $1.0 million of the year-over-year increase to accomplish the marketing goals for our new product. Marketing costs to launch our new product increased by $496,000 and travel increased by $118,000 from 2013 to 2014. Allocated overhead, consisting of facilities, insurance and maintenance expenses, increased by $110,000.

Sales and marketing expense for the year ended December 31, 2013 consisted primarily of consultant compensation and non-employee stock compensation expense in the amount of $81,000 and the cost of developing marketing strategy and material in the amount of $30,000.

Our general and administrative expenses consist of the cost of our executive, finance, corporate development and other administrative functions.

The $0.5 million increase for the three months ended April 30, 2015, compared with the same period of fiscal year 2015, was primarily due to higher headcount-related costs, as well as legal and audit service fees related to compliance.

General and administrative expenses for the one-month periods ended January 31, 2015 and 2014 were $401,000 and $165,000, respectively. The year-over-year increase for January of $236,000 is primarily due to the cost of the Share Exchange and overhead related to being a publicly-traded company, which increased costs by $183,000. Compensation increased by $31,000 due to the addition of two employees and $30,000 in stock compensation for employees and consultants. Travel expense was down $5,000 from the previous year. The remaining decrease of $3,000 was due to allocated overhead and general office expenses.

General and administrative expenses for the years ended December 31, 2014 and 2013 were $3.0 million and $711,000, respectively. The year-over-year increase of $2.2 million is primarily due to executive officer compensation of $500,000, the addition of support staff, which resulted in $1.0 million in cash compensation, $160,000 in stock compensation to an investor for service as a director and other consulting services and $637,000 in stock compensation for employees and consultants. The cost of the Share Exchange and overhead related to being a publicly-traded company increased costs by $328,000, including reporting, legal and audit expenses. Travel expense was up $26,000 from the previous year. The remaining increase of $161,000 was due to allocated overhead and general office expenses.

General and administrative expenses for the year ended December 31, 2013 consisted primarily of compensation and benefits in the amount of $272,000, professional fees totaling $259,000 to our legal counsel and auditors and travel expense of $64,000, as well as other general and administrative expenses.

As of April 30, 2015, we had seven employees in the general and administrative category. We are currently seeking to fill several key strategic positions such as Chief Financial Officer and other specialized roles to advance our ability to scale.

Loss from operations for the one-month periods ended January 31, 2015 and 2014 was $1.1 million and $341,000, respectively. The increase in the year-over-year loss is due to the increase in staff, the Share Exchange and ramp up of marketing and production for the launch of our first product.

Loss from operations for the years ended December 31, 2014 and 2013 was $7.8 million and $1.5 million, respectively. The increase in the year-over-year loss is due to ramping up research and development, production and launch of our first product and the costs related to our Share Exchange, as well as increased costs associated with being a public company.

Net loss for the one-month periods ended January 31, 2015 and 2014 was $1.1 million and $364,000, respectively.

Net loss for the years ended December 31, 2014 and 2013 was $7.8 million and $1.6 million, respectively.

Inflation did not have a material impact on our operations for any of the periods. Other than the foregoing, management knows of no trends, demands or uncertainties that are reasonably likely to have a material impact on our results of operations.

Between September 2012 and March 2014, we issued 6% unsecured convertible notes to investors in the aggregate principal amount of $2.25 million. These notes had maturity dates from one to three years from the date of issuance, with principal and interest payable at maturity. The notes automatically converted into shares of our common stock on the completion of the Share Exchange in January 2014 and the closing of a financing in the amount of at least $2.0 million at a conversion price per share equal to 80% of the per share offering price of such financing.

During the year ended December 31, 2014, we completed the private placement of shares of Series A preferred stock and warrants to purchase common stock. The private placement was consummated in a series of closings that occurred between April 2014 and November 2014. We sold to accredited investors and non-U.S. persons 4.2 million shares of Series A preferred stock at a per share price of $1.85 for net proceeds of approximately $7.3 million and issued to the investors, for no additional consideration, warrants to purchase in the aggregate 2.0 million shares of our common stock, at an exercise price of $3.70 per share pursuant to a series of subscription agreements.

Additionally, under the subscription agreement with KIP, KIP is committed to purchase an additional 1,081,081 shares of Series A preferred stock at a per share price of $1.85 upon the achievement of certain milestones that would raise another $2.0 million in gross proceeds. The milestones include our receiving revenues of $2.0 million for our VI₂OLET iodine dietary supplement or uplisting our stock to NYSE or NASDAQ. Two of our majority common stockholders and KIP also entered into a voting agreement whereby these stockholders agreed to (i) vote in favor of any merger or sale of us that has been approved by the board of directors and holders of at least 50% of the then outstanding shares of Series A preferred stock, and (ii) grant to KIP an irrevocable proxy to vote in favor of such business combination transaction. These stockholders also agreed to sell their shares to a purchaser in a transaction approved by holders of at least 67% of the then-outstanding shares of Series A preferred stock or 67% of the then-outstanding shares of common stock and Series A preferred stock in the aggregate.

The following table summarizes total current assets, liabilities and working capital (in thousands).

Net cash used for operating activities for the three months ended April 30, 2015 was $2.2 million, which primarily resulted from a net loss of $3.6 million, partially offset by non-cash expense of $0.8 million and changes in operating assets and liabilities of $0.6 million. Net cash used for operating activities for the three months ended April 30, 2014 was $1.2 million, which primarily resulted from a net loss of $1.3 million, partially offset by non-cash stock-based compensation expense of $0.1 million.

There were no investing activities for the three months ended April 30, 2015. Net cash used for investing activities for the three months ended April 30, 2014 was for the purchase of capital assets.

Net cash provided by financing activities for the three months ended April 30, 2015 was $1.4 million, which was primarily due to proceeds from the exercise of stock options and warrants. Net cash provided by financing activities for the three months ended April 30, 2014 was $1.7 million, which was primarily due to proceeds from the issuance of convertible redeemable preferred stock and convertible notes payable.

Net cash used for operating activities for the one-month period ended January 31, 2015 was $844,000. Cash used in operating activities was primarily due to a net loss for the one-month period ended January 31, 2015 of $1.1 million, which was partially offset by changes in operating assets and liabilities of $199,000 and stock compensation of $99,000. No cash was used in investing activities during the one-month period ended January 31, 2015.

Net cash used for operating activities for the year ended December 31, 2014 was $6.0 million. Cash used in operating activities was primarily due to a net loss for the year ended December 31, 2014 of $7.8 million, which was partially offset by changes in operating assets and liabilities of $413,000, non-cash interest expense of $76,000, warrants issued for $99,000 and stock compensation of $1.2 million. Cash used in investing activities was primarily for acquisition of intellectual property and acquisition of property and equipment.

Net cash used for operating activities for the year ended December 31, 2013 was $1.1 million. Cash used in operating activities was primarily due to a net loss for the year ended December 31, 2013 of $1.6 million which was partially offset by changes in operating assets and liabilities of $371,000, non-cash interest expense of $74,000 and stock compensation of $58,000. Cash used in investing activities was primarily for the acquisition of intellectual property and the acquisition of property and equipment.

Net cash provided by financing activities for the one-month period ended January 31, 2015 was $38,000. This consisted of $38,000 of proceeds from issuance of common stock from option exercises. Net cash provided by financing activities for the years ended December 31, 2014 and 2013 was $8.4 million and $1.0 million, respectively. This consisted of $7.3 million in proceeds from issuing Series A preferred stock in the year ended December 31, 2014 and $1.0 million in proceeds from issuing convertible notes for each of the years ended December 31, 2014 and 2013.

On June 15, 2015, we issued a convertible note payable, the Note, in exchange for $0.5 million. This Note carries an interest rate of 6% per annum. The principal balance and any accrued interest payable of the Note automatically converts into common stock at the earlier of: (1) closing of this offering at a conversion price equal to the public offering price of this offering or (2) June 15, 2016 at a conversion price equal to the 30-day average of the closing price of our common stock, but in either case no less than $1.85 per share.

As reflected in the accompanying consolidated financial statements, those consolidated financial statements have been prepared assuming we will continue as a going concern. We have incurred

recurring losses and negative cash flows from operations since inception. We have not historically generated revenues and have funded our operating losses through the issuance of convertible notes payable and Series A preferred stock. We have a limited operating history and our prospects are subject to risks, expenses and uncertainties frequently encountered by companies in the industry.

The significant risks described herein could have a significant negative impact on our financial viability and raise substantial doubt about our ability to continue as a going concern. We are working on our business model to increase working capital by managing our cash flow, securing financing and introducing our first product to market.

Risks include, but are not limited to, the uncertainty of availability of additional financing and the uncertainty of achieving future profitability. We intend to raise additional funds through the issuance of equity securities. There can be no assurance that such financing will be available or on terms that are favorable to us. If we fail to complete our clinical trials in a timely manner, we will need to further revise the amount of additional funding we will require. Failure to generate sufficient cash flows from operations, raise additional capital or reduce certain discretionary spending could have a material adverse effect on our ability to achieve our intended business objectives. These factors raise substantial doubt about our ability to continue as a going concern. The financial statements do not contain any adjustments that might result from the outcome of this uncertainty.

As shown in the accompanying consolidated financial statements, we incurred a net loss of $3.6 million and $1.3 million during the three months ended April 30, 2015 and 2014, respectively, $1.1 million and $364,000 during the one-month periods ended January 31, 2015 and 2014, respectively, and $7.8 million and $1.6 million during the years ended December 31, 2014 and 2013, respectively, and have an accumulated deficit of $14.3 million as of April 30, 2015. As of April 30, 2015, we had a working capital deficit of $1.3 million. While we believe that we have a plan to fund ongoing operations, there is no assurance that our plan will be successfully implemented. We are experiencing the following risks and uncertainties in the business:

We believe that the anticipated net proceeds from this offering, together with our existing cash, will be sufficient to meet our anticipated cash requirements for at least the next 12 months. If we are unsuccessful at obtaining sufficient funding through this offering, we plan to raise capital through sales of our equity or debt securities to fund ongoing operations. Equity funding could include proceeds from the exercise of existing warrants outstanding, a private placement of additional preferred stock or issuance of convertible debt. No assurance can be given that these funds may be available on terms that are favorable to us, if at all. If we are unable to raise capital in a timely manner, we may be required to curtail some aspects of our business, such as next phase testing of new products. At this time, there is no assurance that the market will accept our sole product on the market, the VI₂OLET iodine dietary supplement, and the rate of adoption is unknown. VI₂OLET may not produce sufficient revenues in the next 12 months to support our extensive research and development efforts on other products, and therefore outside funding may be our primary option to fund operations. We do not have any existing loans, commitments or demands that would materially increase or decrease our liquidity.

In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, or ASU 2014-09, which converges the FASB and the International Accounting Standards Board standards on revenue recognition. Areas of revenue recognition that will be affected include, but are not limited to, transfer of control, variable consideration, allocation of transfer pricing, licenses, time value of money, contract costs and disclosures. This guidance is effective for the fiscal years and interim reporting periods beginning after December 15, 2016. We are currently evaluating the impact that the adoption of ASU 2014-09 will have on our consolidated financial statements and related disclosures.

On June 10, 2014, the FASB issued ASU 2014-10, Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation, or ASU 2014-10, which eliminates the definition of a development stage entity, eliminates the development stage presentation and disclosure requirements under Accounting Standards Codification, or ASC, 915 Development Stage Entities, or ASC 915, and amends provisions of existing variable interest entity guidance under ASC 810 Consolidation. As a result of the changes, entities that meet the former definition of a development stage entity will no longer be required to: (1) present inception-to-date information in the statements of income, cash flows and stockholder equity; (2) label the financial statements as those of a development stage entity; (3) disclose a description of the development stage activities in which the entity is engaged; and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. Furthermore, ASU 2014-10 clarifies disclosures about risks and uncertainties under ASC Topic 275, Risks and Uncertainties, that apply to companies that have not commenced planned principal operations. Finally, variable interest entity rules no longer contain an exception for development stage entities and, as a result, development stage entities will have to be evaluated for consolidation in the same manner as non-development stage entities.

Under ASU 2014-10, entities are no longer required to apply the presentation and disclosure provisions of ASC 915 during annual periods beginning after December 15, 2014. In addition, the revisions to the consolidation standards are effective for annual periods beginning after December 15, 2015. Early adoption is permitted for any annual reporting period or interim period for which the entity's financial statements have not yet been issued (public business entities) or made available for issuance (other entities).

We have adopted ASU 2014-10 effective as of its issuance date. Adoption of this standard had no impact on our financial position, results of operations, or cash flows; however, the presentation of the consolidated financial statements and related disclosures in the notes to the consolidated financial statements has been changed to eliminate the disclosures that are no longer required.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern, or ASU 2014-15. This standard includes guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern within one year after the financial statements are issued. If conditions or events raise substantial doubt, the entity must disclose the conditions or events that raise substantial doubt about the entity's ability to continue as a going concern, management's evaluation of those conditions or events, and management's plans to mitigate the conditions or events. This update is effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted. We are currently evaluating the impact that the adoption of ASU 2014-15 will have on our consolidated financial statements and related disclosures.

We have reviewed other recent accounting pronouncements and concluded they are either not applicable to the business, or no material effect is expected on the consolidated financial statements as a result of future adoption.

Our consolidated financial statements and related financial information are based on the application of accounting principles generally accepted in the United States. GAAP requires the use of estimates, assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenues and expense amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies, risk and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently applied. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.

Our significant accounting policies are summarized in Note 3 of our audited consolidated financial statements. While all these significant accounting policies impact our financial condition and results of operations, we view certain of these policies as critical. Policies determined to be critical are those policies that have the most significant impact on our financial statements and require management to use a greater degree of judgment and estimates. Actual results may differ from those estimates and such differences may be material to the financial statements. Our management believes that given current facts and circumstances, it is unlikely that applying any other reasonable judgments or estimate methodologies would have an effect on our results of operations, financial position or liquidity for the periods presented in this prospectus.

We believe the following critical accounting policies and procedures, among others, affect our more significant judgments and estimates used in the preparation of our consolidated financial statements:

We shipped our first product to a retailer in December 2014. The product, our VI₂OLET iodine dietary supplement, is a new product in the dietary supplement field. Revenue is recognized provided that persuasive evidence of a sales arrangement exists, the price is fixed or determinable, title and risk of loss has transferred, calculability of the resulting receivable is reasonably assured, there are no customer acceptance requirements and we do not have any significant post-shipment obligations. We recognize revenue on a sell through basis since we do not have the historical information to estimate product returns. As a result, we account for these product shipments using a deferred revenue recognition model. Under the deferred revenue recognition model, we do not recognize revenue upon product shipment. For these product shipments, we invoice the reseller, record deferred revenue at

gross invoice sales price and classify the cost basis of the product held by the wholesaler as a component of inventory. We recognize revenue when product is sold by the reseller to the end user, on a first-in first-out (FIFO) basis.

We account for stock-based employee compensation arrangements, which requires the recognition of compensation expense, using a fair value–based method for costs related to all employee share-based payments, including stock options. We estimate the fair value of share-based payment awards on the date of grant using an option pricing model. All option grants have been expensed on a straight-line basis over their vesting period. Equity instruments issued to non-employees are recorded at their fair value on the measurement date and are subject to periodic adjustment as the underlying equity instruments vest.

For the three months ended April 30, 2015 and 2014, the one-month periods ended January 31, 2015 and 2014 and the years ended December 31, 2014 and 2013, stock-based compensation was $300,000, $115,000, $99,000, $11,000, $1.2 million and $58,000, respectively.

We do not have any off-balance sheet arrangements, financings, or other relationships with unconsolidated entities or other persons, also known as "special purpose entities."

We are a specialty pharmaceutical company focused on utilizing our proprietary drug delivery technologies to develop and commercialize novel prescription and OTC products that address large markets in women's health and dermatology. Our objective is to develop products that treat health or age-related conditions that: (1) are not presently being addressed or treated at all or (2) are currently treated with drug therapies or drug delivery approaches that are sub-optimal. Our strategy is designed to bring new products to market by identifying optimal delivery mechanisms and/or alternative applications for FDA-approved APIs, while, in appropriate circumstances, reducing the time, cost and risk typically associated with new product development by repurposing drugs with demonstrated safety profiles and when applicable, taking advantage of the regulatory approval pathway under Section 505(b)(2). We believe these approaches may reduce drug development risk and could reduce the time and resources we spend during development. Our current platform technologies include innovative delivery mechanisms for molecular iodine and antibiotics.

Our first commercial product, VI₂OLET iodine, is a once-a-day OTC dietary supplement molecular iodine tablet that promotes overall breast health and alleviates the common symptoms associated with FBC, such as tenderness, aches and swelling. We launched VI₂OLET iodine in December 2014 in online stores and are rolling out the product in drug store and retail chains throughout the United States. We are also developing a prescription molecular iodine tablet, BPX03, for the treatment of moderate to severe, periodic breast pain associated with FBC and cyclic mastalgia, intended for global distribution, where prescription treatments are more prevalent due to regulatory requirements. We are preparing to conduct clinical studies under IRB oversight to inform the study design for our Phase 3 safety and efficacy studies. We are planning to commence our first Phase 3 clinical trial for BPX03 to support FDA and foreign regulatory requirements upon completion of the IRB studies. We will seek approval only in those countries where we will seek to market the prescription product. It is our intent to commence a Phase 3 study in 2016.

We are also developing BPX01, a non-lipophilic, topical antibiotic for the treatment of acne. BPX01 contains a novel formulation and utilizes a transepidermal delivery mechanism for minocycline that we believe has the potential to kill p. acnes bacteria without the systemic side effects of orally-administered antibiotics. As BPX01 contains an API that is well known, it is expected to possess anti-inflammatory properties, which reduce swelling and redness. We are currently conducting an animal toxicity study, after which we expect to submit our IND to the FDA to initiate our first Phase 2a clinical trial of BPX01. We are also preparing to conduct a bridging safety study using oral minocycline as the comparator and a Phase 2 dose-finding clinical study for BPX01. We intend to pursue regulatory approval under Section 505(b)(2). We believe the Section 505(b)(2) regulatory pathway, which permits us to rely in part on the FDA's prior findings of safety and/or efficacy for an approved product, may reduce the drug development risk and could reduce the time and resources we spend during development of BPX01. We believe our design approach for transepidermal delivery may also be utilized with other APIs.

Our product pipeline includes additional applications for the delivery of iodine, FDA-approved antibiotics and biologics. Product candidates may be developed for delivery in oral, topical, inhalant and/or injectable forms depending on the platform technology employed and the underlying condition being treated.

We believe that the industry dynamics in the areas of women's health and dermatology represent significant opportunities for innovative new products to emerge as attractive solutions for unmet needs

in multi-billion dollar therapeutic categories. In particular, we believe that both the women's health and dermatology markets are large specialty markets with significant global patient demand. We believe that our focus on these markets coupled with our proprietary platform technologies will enable us to develop and commercialize attractive products within these areas of women's health and dermatology.

Women's health is a discipline within the field of medicine focused on the prevention and treatment of health concerns that are unique to females. Recently, there have been positive changes in government and private sector support for women's health research, including new policies and regulations and the organization of research efforts.

In a 2010 report, the Institute of Medicine, or IOM, found that women's health research has contributed to significant progress over the past 20 years in lessening the burden of disease and reducing deaths from some conditions for women, while other conditions have seen only moderate change or even little or no change. Gaps remain, both in research areas and in the application of results to benefit women in general and across multiple population groups. According to a 2010 WebMD feature, the top five women's health concerns by incidence rate are set forth below, with incidence rates provided by various sources including the Women's Heart Foundation (heart disease incidence), the American Cancer Society (breast cancer incidence), Depression Perception (depression incidence), Centers for Disease Control and Prevention (autoimmune disease incidence) and the Journal of Bone and Mineral Research (osteoporosis incidence).

None of our current products or product candidates address or are intended to address any of the conditions in the table above.

According to IBISWorld's 2011 market research report on the dermatologist industry, the dermatology industry is expected to perform strongly over the five-year period ending in 2016. Projected industry revenue is expected to grow at an average annual rate of 5.4% to an estimated $13.1 billion in 2016. We believe that there is a correlation between the dermatology industry and the

economy. As the unemployment rate rose in 2009, more Americans lost health insurance coverage, resulting in fewer patient visits to dermatologists. This industry was unable to avoid the effects of the recession, with revenue contracting 5.0% in 2009. Cosmetic dermatology procedures in particular experienced the largest contraction, due to their dependence on per capita disposable income levels. If general economic conditions improve, the dermatology industry is projected to benefit from such improvement. Higher employment levels may increase per capita disposable income growth for consumers, which we believe will boost demand for cosmetic procedures, one of the fastest-growing segments for the industry during the five-year period ending in 2011. From 2006 to 2011, the number of dermatological offices grew an average of 2.3% per year, totaling approximately 8,000 establishments. A growing number of dermatologists have expanded their practices in cosmetic and/or aesthetic dermatology as many of these procedures are private pay and demand is growing for new anti-aging products and therapies such as dermal fillers, Botox and laser treatments. This industry had profit margins averaging 21.0% in 2012.

We are focused on both therapeutic and cosmetic dermatology and it is our view that in the last several years, there has been limited new product development in acne therapeutics. We believe that the acne treatment market is ready for new treatments that can reduce both side effects currently seen with available drugs and drug resistance that has occurred with currently-available topical products.

We have developed our product portfolio using our proprietary drug delivery technologies including innovative delivery mechanisms for molecular iodine and antibiotics. We currently have one marketed product, VI₂OLET iodine dietary supplement, and two clinical-stage product candidates, BPX01 and BPX03.

The following table presents a summary of our marketed products and clinical-stage product candidates:

Iodine's primary role in the body is as a raw material for the creation of thyroid hormones T3 and T4. The thyroid absorbs iodine to make and release these hormones into the bloodstream which are responsible for modulating critical bodily functions including, but not limited to, increasing the basal metabolic rate, affecting protein synthesis, regulating long bone growth and neural maturation. In addition to supporting proper thyroid function, iodine also plays an important role in the maintenance of healthy breasts.

There are two elemental forms of iodine used by the human body: iodide, or I^[ib]-, and molecular iodine. Iodine is an unstable element as it reacts with its surrounding environment and loses its useful properties during oxidization. For this reason, scientists typically combine potassium, or K, with iodide (I^[ib]-) to form potassium iodide, or KI, which is a stable form of iodine the body can use. The thyroid more readily absorbs iodide (I^[ib]-) compared to molecular iodine, making iodide (I^[ib]-) a more efficient form of iodine for promoting proper thyroid function. According to a 2009 article by Carmen Aceves, et al., molecular iodine is a more effective form of iodine to support breast health.

According to a 1998 article by JG Hollowell et al., between the 1970s and 1990s, moderate to severe iodine deficiency in the United States increased more than four-fold. Urinary iodine concentration, a proxy for iodine intake, decreased more than 50% between 1971-1974 and 1988-1994. This decline in iodine intake over the last several decades has been proposed as potentially due to (1) a decrease in the amount of iodine found in food, such as in bread, and (2) active campaigns against salt consumption based on fears of its relationship to hypertension and cardiovascular disease. This decline in iodine intake is particularly relevant to pre-menopausal women given the role that iodine plays in breast health and in FBC.

The Institute of Medicine Food and Nutrition Board recommended dietary allowance, or RDA, for iodine is 150 to 290 micrograms, or mcg, for adults, and a tolerable upper limit at 1,100 mcg per day. These levels of iodine intake may be insufficient to promote proper breast health in women. For example, according to a 2008 article by Lyn Patrick, Japanese women, who have historically consumed between 5,280 mcg and 13,800 mcg of iodine daily, primarily due to the high iodine content of seaweed, which is a staple of a Japanese diet, experienced breast cancer rates roughly one-third of those found in American women. Further, Japanese women who immigrate to the United States from Japan see a smaller difference in the incidence of breast cancer as they consume considerably less seaweed and other forms of iodine in their diet. In addition to this study, increased intake of iodine (daily doses in the range of 3,000 mcg to 6,000 mcg) has been shown to have positive effects on other iodine deficiency–related health conditions such as FBC. In both instances, greater iodine consumption has been observed to promote breast health without adverse side effects even at dosages well in excess of an adult's RDA.

VI₂OLET iodine dietary supplement carries a manufacturer's suggested retail price, or MSRP, of $44.99 per consumer.

Clinical studies have shown that a daily regimen of molecular iodine can provide relief from cyclic breast discomfort associated with FBC. Molecular iodine's anti-proliferative and apoptotic activity in breast tissue makes it an effective therapeutic for FBC as it counteracts the increased cellular growth caused by the hormone imbalance. According to a 1993 article by William Ghent et al., molecular iodine has been used in clinical trials in over 1,400 women over three decades and a clinical study showed that 72% of women experienced improvement in their breast discomfort. Following a series of uncontrolled clinical studies with different forms of iodine, William Ghent et al. concluded that molecular iodine is the optimal form of iodine for treating FBC.

Molecular iodine has been shown to alleviate symptoms associated with FBC. Molecular iodine is unstable in the presence of many commonly-used tablet excipient ingredients. We have used our proprietary platform technologies to develop a patented tablet formulation that utilizes a combination of stable iodine compounds that form molecular iodine in an acidic environment, such as the stomach.

Our first commercial product, VI₂OLET iodine, is a patented OTC molecular iodine dietary supplement that addresses cyclic breast discomfort and is clinically demonstrated to alleviate the symptoms associated with FBC including tenderness, aches and swelling. Our patented molecular iodine formula is delivered to breast tissue and is intended to reduce the breast cell build-up that results in breast discomfort. Women who suffer from menstrual-related breast discomfort are recommended to take one tablet per day on an empty stomach for at least 60 days to realize initial symptom relief. They may take a second tablet every evening if they have more severe symptoms. Additionally, with consistent daily use, VI₂OLET iodine has been shown to help maintain healthy breast tissue.

The packaging images above show the front and back graphics of VI₂OLET iodine, which was commercially launched in December 2014 in online stores. The package prominently features the condition it addresses at the top and highlights three of the primary/most common symptoms on the front panel. The back includes critical information regarding (1) suggested use (2) general precautions (3) supplement facts/ingredients and (4) FDA disclaimer. It also states that the two iodine ingredients form molecular iodine when ingested.

The product is currently available for sale in approximately 2,960 CVS retail pharmacies and 650 Vitamin Shoppe stores throughout the United States, as well as online through drugstore.com and walgreens.com.

The commercial launch of our VI₂OLET iodine dietary supplement is supported by an extensive consumer marketing program targeting women between the ages of 30 and 44. With a combination of brand and shopper marketing, both nationally and locally, we generate awareness, engagement, education, consideration and purchase interest:

In addition to our VI₂OLET iodine dietary supplement, we are also developing BPX03, a prescription drug version of our molecular iodine tablet for the treatment of moderate to severe, periodic breast pain associated with FBC and cyclic mastalgia. We have in-licensed the patent rights to a set of iodine technologies. The licensors previously sponsored and completed Phase 1 and Phase 2 clinical studies and conducted a Phase 3 trial that was stopped early due to insufficient funds under their IND, which they later withdrew. We are developing the prescription iodine drug candidate studied by the prior sponsor and refer to both the prior sponsor's investigational drug and our investigational drug as BPX03. We intend to approach the FDA in 2016 for a pre-IND discussion regarding the study design for our Phase 3 clinical trials intended to commence in 2016 with a new IND submission.

In 1999, the prior sponsor completed a Phase 1 pharmacokinetic study of 18 subjects that assessed the levels of molecular iodine in the blood plasma and urine and give a preliminary indication regarding safety. The blood plasma and urine results demonstrated the expected relationship between increased bioavailability and increasing dose. All adverse events were adjudicated to be unrelated to the study drug.

In 2000, the prior sponsor completed a Phase 2 double-blind, randomized, placebo-controlled clinical trial of 111 subjects in the United States. As part of the clinical trial protocol, subjects were treated for six months with dosing of BPX03 of 1.5 mg, 3.0 mg or 6.0 mg daily or with placebo. After a six-month treatment period, subjects were monitored for an additional two-month observation period. The Phase 2 clinical trial subjects experienced no statistically significant increase in incidence, severity or causality of treatment-emergent adverse events in comparison to placebo. In addition, although no single doses were statistically significantly different from placebo on the primary analysis of the primary efficacy endpoint, the Phase 2 clinical trial demonstrated a statistically significant improvement (p=0.016) in subjects taking 3.0 mg and 6.0 mg dosages in comparison to the subjects taking the 1.5 mg dosage and placebo for the primary efficacy endpoint of improvement in breast pain, tenderness and nodularity using the Lewin pain scale. Statistical significance is described for clinical studies using a "p-value." Lower p-values indicate that results are more statistically significant. If a result has a p-value of less than 0.05, or 5%, it is generally considered to be statistically significant.

The prior sponsor of BPX03 conducted a 142-patient Phase 3 clinical trial with 55 investigators from May 2005 until March 2008. The study was designed to evaluate the safety and efficacy of the product candidate for the treatment of mild to severe cyclic pain associated with FBC. In the study, patients were dosed once a day for up to six months with either an active 6.0 mg tablet or placebo. Although the study was therefore not powered as originally designed to make definitive conclusions related to safety or efficacy, the study did not meet its primary efficacy endpoint of percentage of subjects with a 50% or greater reduction in their average clinical pain during their final menstrual cycle as compared to baseline and no demonstrated increase in concomitant analgesia use during their final menstrual cycle as compared to baseline. The ratio of patients demonstrating the primary pain response

in the intent-to-treat population did not differ (p=0.757) between treatment (n=61; 56%) and placebo (n=65; 68%). In addition, no statistical difference (p=0.8968) was observed in a key secondary endpoint—the percentage of women demonstrating a reduction in nodularity of at least 25% in the physician breast examination between treatment (38/61) and placebo (39/65).

The study was not completed due to insufficient funds and lack of enrollment completion (142 patients were analyzed out of the intended 175 patients) from May 2005 until March 2008.

We plan to initiate one pilot study that will provide safety data and also inform the design of our Phase 3 studies. This study will also evaluate clinical safety and efficacy metrics and provide a basis for powering the clinical study size for our pivotal Phase 3 trials.

We anticipate that the study design will be a randomized, placebo-controlled, double-blind, multi-site study of approximately 50 female subjects of reproductive age with cyclic breast pain. The study will include a six-month treatment period.

We plan to initiate a small second pilot study at a single site to address metrics for breast density.

We expect to approach the FDA with a pre-IND meeting request in 2016 to discuss performing our first global, multi-site Phase 3 clinical trial in the United States, China and the European Union. The study design will be a multi-site, randomized, double-blind, placebo-controlled study. The study will assess safety and efficacy in healthy, pre-menopausal women who have moderate to severe, periodic breast pain associated with symptomatic FBC and cyclic mastalgia. The results of the pilot studies discussed above will be used to help us design the Phase 3 trials with respect to patient inclusion criteria, safety and efficacy metrics and clinical study size. We believe that these pilot studies will enable us to conduct the Phase 3 studies more efficiently.

Should we decide to pursue approval of BPX03 in the United States, we would submit a full 505(b)(1) NDA. Prior to submission of any NDA for BPX03, at a minimum, we would need to validate any PROs used in our Phase 3 studies, complete two successful adequate and well-controlled Phase 3 studies, expose sufficient patients to our proposed formulation, including long-term exposure, conduct a two-year carcinogenicity study in rodents and address potential teratogenicity concerns, potentially including a REMS to prevent inadvertent exposure to pregnant women.

Topical Antibiotics for the Treatment of Acne and Cutaneous Bacterial Infection (BPX01)

Acne is characterized by areas of scaly red skin, non-inflammatory blackheads and whiteheads, inflammatory lesions, papules and pustules and occasionally boils and scarring. Acne is typically caused by four major factors: (1) hyper-cornification of the keratinocytes that line the follicular infundibulum resulting in blockage of the hair follicle creating an anaerobic environment; (2) endogenous p. acnes bacteria multiplies under the anaerobic condition generating inflammatory cytokines; (3) these inflammatory cytokines stimulate the sebocytes within the sebaceous glands to produce more sebum; and (4) this increased sebum is fed upon by the p. acnes aggravating the infection and resulting in acne. As the sebaceous glands grow in size and become clinically inflamed, they form inflammatory acne.

Acne is commonly treated with OTC topical products, as well as topical and oral prescription therapies. OTC topical drugs typically have similar formulations utilizing one of a few active ingredients (such as benzoyl peroxide and salicylic acid), which have shown in studies to be effective in managing mild acne. According to 2015 IBISWorld data, the market for OTC acne treatments in 2015 is estimated to be approximately $644 million, with products by Neutrogena, Clean & Clear, Aveeno, Proactiv, and Clearasil estimated to account for approximately 70% of the total market. OTC acne products can be effective at managing mild cases of acne, but typically are ineffective against more severe cases.

For moderate to severe cases of acne, dermatologists and their patients typically use prescription topical and oral treatments, alone or in combination depending on the severity. Topical products that can act locally in the skin are preferable since they limit the risk of systemic side effects associated with oral antibiotics such as headaches, dizziness, fatigue, nausea, photosensitivity and severe itchiness. For patients with more severe acne, oral treatments are used, usually in combination with topical products. Many patients receive combination therapies comprising two or more topical agents with or without an oral agent. According to compiled information from Symphony Health Solutions data, accessed via Bloomberg Terminal, January 2014–December 2014, the U.S. market for branded prescription drugs for acne was estimated to be approximately $3.3 billion in 2014, of which $1.7 billion was attributed to topical acne products and $1.5 billion was attributed to oral antibiotics. Set forth below are the top selling branded products and their respective market shares based on compiled 2014 wholesale sales

according to Symphony Health Solutions data, accessed via Bloomberg Terminal, January 2014–December 2014:

Solodyn, a branded oral minocycline, is currently the most prescribed drug for acne as indicated by its leading position based on annual sales according to Symphony Health Solutions data, accessed via Bloomberg Terminal, January 2014 – December 2014, for moderate to severe acne. Despite its status as the most prescribed branded treatment for moderate to severe acne, Solodyn has serious limitations as well. According to its product labeling, Solodyn is only indicated for inflammatory lesions of non-nodular moderate to severe acne vulgaris in persons 12 years of age or older. According to the prescribing information (NDA 050808), Solodyn side effects include discoloration of teeth, pseudomembranous colitis, liver injury, renal impairment, central nervous system side effects (light-headedness, dizziness or vertigo), pseudotumor cerebri (benign intracranial hypertension), autoimmune syndromes, anaphylaxis serious skin reactions, erythema multiforme and DRESS syndrome. In addition, the FDA added oral minocycline to its Adverse Event Reporting System, a list of medications under investigation by the FDA, due to its severe side effects in 2009, and the investigation was resolved with a labeling change.

Given these limitations, we believe there is significant demand for new products that possess the efficacy of orally-administered antibiotics without the systemic adverse side effects of orally-administered antibiotics.

We are developing BPX01, a novel, topical formulation of minocycline. BPX01 delivers minocycline directly to the target sebaceous glands in the skin. We believe that our proprietary topical minocycline acne treatment is designed to have several advantages compared to both orally-administered and other topically-administered retinoid- and antibiotic-based solutions. Since BPX01 is not administered orally, its delivery route to the target site is through the skin, and it therefore has the potential to lower the risk of systemic side effects common to orally-administered antibiotics. The gel form of BPX01, when applied topically, is designed to penetrate through the intercellular space among corneocytes in the stratum corneum to increase the delivery of the antibiotic at low dosages directly to the affected area. Unlike other topical lipophilic solutions formulated to ensure API stability, BPX01 is non-lipophilic, which is designed to improve the aesthetic appearance and feel of the topical and is designed to allow the topical to be absorbed more quickly by the skin, and, we believe, without sacrificing long-term API stability.

A preclinical study that we conducted on an in vivo animal model has demonstrated that BPX01 consistently delivered antibiotic well within the therapeutic dose range in the skin as shown in Figure 1.

In a single-dose in vivo preclinical study, uptake of API at 24 hours was demonstrated in the target tissue.

In a fourteen-day repeat-dose study, separate dose levels of BPX01 studied on an in vivo animal model at increased amounts (mg/cm²) applied topically to the skin produced correspondingly increased skin penetration of minocycline, the API in BPX01 (Figure 2). At a lower dose (Dose A), 5 mg/cm² or more of API penetrated the skin and was retrieved from the skin biopsies, while at a higher dose (Dose B), 8 mg/cm² or more (> 10 mg/cm²) of API penetrated the skin and was retrieved from the skin biopsies. Dose A resulted in 5 mg/cm² of minocycline, which translates to approximately about 1 mg/g of skin. This data suggests that the skin penetration needed to reach an efficacious dose in humans is possible. This finding has been further supported by our Minimum Inhibitory Concentration, or MIC, studies, where the MIC value of p. acnes bacteria for minocycline is 0.03125 mg/ml (or approximately 0.03125 mg/g). At present, there is a lack of reliable and conclusive data and literature sources that can accurately state the skin concentration of minocycline after oral administration in any given in vivo model. Further, to date, our in vivo preclinical studies have not identified any systemic presence of the API in any animals tested at any doses.

In an in vivo preclinical fourteen-day repeat-dose study, an increased amount of drug product applied to the skin at two different doses produced correspondingly increased skin penetration.

In another preclinical study, we performed qualitative analysis of two doses of BPX01 against an untreated control. This study demonstrated localization of the antibiotic in the sebaceous glands in two doses of BPX01 (Figure 3). Topical application on excised human facial skin specimens at 24 hours shows increasing fluorescence distribution in the skin and delivery to the target sebaceous glands. In a prior study comparing BPX01 against an ointment-based formulation, we also observed improvement in skin penetration of BPX01 over the ointment-based formulation.

Ex vivo human facial skin with an untreated control against BPX01—Dose A and B. Highlighted zones indicate localization of API in the sebaceous glands.

We conducted a pre-IND meeting with the FDA in March 2015 to obtain formal feedback on the preclinical and clinical studies required to support a Section 505(b)(2) NDA for minocycline topical gel in the treatment of moderate to severe acne vulgaris/inflammatory acne, including: (1) animal toxicity studies; (2) a bridging safety study using oral minocycline as the comparator; (3) the design of a Phase 2 dose-finding clinical trial that will be required before entering Phase 3 clinical trials;

(4) long-term safety information on the topical formulation; and (5) the proposed chemistry, manufacturing and controls, or CMC, development plans. Prior to submission of our IND and initiation of a clinical trial, we will need to complete a four-week animal toxicity study, which we expect to complete in the third quarter of 2015. We currently expect to submit the IND for BPX01 in the fourth quarter of 2015 and initiate our first clinical trial in the first quarter of 2016.

We intend to pursue the Section 505(b)(2) regulatory approval pathway for BPX01. We believe the Section 505(b)(2) regulatory pathway, which permits us to rely in part upon the FDA's prior findings of safety and/or efficacy for an approved product (Solodyn, in this case), may reduce the drug development risk and could reduce the time and resources we spend during development of BPX01. If and when we submit our Section 505(b)(2) NDA for BPX01, we will have to provide patent certifications to any patents listed in the Orange Book for Solodyn, the drug we would identify as the listed drug in our NDA. A certification that BPX01 will not infringe Solodyn's listed patents, or that such patents are invalid, is called a Paragraph IV certification. If we provide a Paragraph IV certification to the FDA, we must also send notice of the Paragraph IV certification to the Solodyn NDA and patent holders once our NDA has been filed by the FDA. While we believe BPX01 does not infringe any patents for Solodyn, the filing of a patent infringement lawsuit by the NDA or patent holder within 45 days of the receipt of our certification that a patent is invalid or not infringed would automatically prevent the FDA from approving our Section 505(b)(2) NDA until the earlier of 30 months, expiration of the patent, settlement of the lawsuit or a decision in the infringement case that is favorable to us.

In addition to our VI₂OLET iodine dietary supplement and our clinical-stage product candidates, BPX01 and BPX03, we are also developing a portfolio of early-stage product candidates. Our current early-stage product candidates utilize our proprietary platform technologies and include innovative delivery mechanisms for iodine, antibiotics and biologics.

Our strategy begins with patented, platform technologies obtained through in-house development, joint development, exclusive licensing or acquisition. We then develop these platform technologies into product lines and evaluate the associated products through clinical trials. We are currently investigating potential products related to three platform technologies, including molecular iodine, antibiotics and biologics.

We intend to identify optimal delivery and/or alternative applications for FDA-approved APIs, thus potentially shortening the timeline for delivering our products to market. Our strategy is to identify early-stage scientific research projects being conducted by individuals, organizations and academic institutions and develop that research into commercially-viable prescription and OTC products in the areas of women's health and dermatology. Typical regulatory approval for unique methods of formulation and delivery, leveraging FDA-approved APIs, may be shortened by using the Section 505(b)(2) NDA pathway.

We intend to develop certain products with a bifurcated market penetration strategy, including both a prescription version and an OTC drug and/or dietary supplement version. VI₂OLET iodine, an OTC dietary supplement version of our molecular iodine technology, is our first product developed using this bifurcated strategy. Marketing VI₂OLET iodine as an OTC dietary supplement presents a significant revenue opportunity for us while our higher dosage or prescription molecular iodine tablet, BPX03, is in clinical development.

We make decisions on a product-by-product basis regarding how they should be commercialized. We consider licensing our intellectual property to partners who can commercialize the product most effectively or commercialization of our products internally for both pharmaceutical and OTC distribution and sales. Our management team has significant experience marketing and selling OTC products for retail distribution, which we believe is critical to our success when we choose to commercialize our products ourselves.

Efficient Advancement of Early-Stage Product Candidates into Late-Stage Development

We seek to rapidly and efficiently establish proof-of-concept for our early-stage product candidates. Our experienced management team is able to efficiently determine whether and how to advance product candidates into subsequent stages of development, which we believe increases our ability to direct resources to promising programs and enhances our likelihood of successfully developing and commercializing our product candidates. We believe that our advancement of product candidates BPX01 and BPX03 into clinical trials will demonstrate our ability to assess and progress promising product candidates efficiently from preclinical development to later-stage clinical testing.

Our strategy is to identify early-stage scientific research projects being conducted by individuals, organizations and academic institutions and develop that research into commercially-viable prescription and OTC products for use within women's health and dermatology. In addition, our business model allows us the flexibility to out-license our technologies to large pharmaceutical companies with well-established market share and commercialization infrastructure for late-stage clinical trial collaboration and exclusive manufacturing and commercialization rights in exchange for licensing fees and royalties.

Continued Development of Committed, Experienced Employees and Relationships with Members of the Women's Health and Dermatology Communities

We believe that the fields of women's health and dermatology offer an exceptional opportunity to build relationships with key opinion leaders, advocacy groups and medical practitioners. We intend to take advantage of this opportunity in order to accelerate the identification, in-licensing, acquisition, development and commercialization of products and product candidates that we believe can be successful in the marketplace. We have created a women's health MAB comprised of leading breast surgeons and breast health practitioners for our molecular iodine technology to advise on current and future advancements in women's health issues. We are in the process of evaluating candidates for inclusion of a MAB for dermatology, but no such board currently exists.

Our success depends in large part upon our ability to obtain and maintain proprietary protection for our products and platform technologies. Our goal is to develop a strong intellectual property portfolio that enables us to capitalize on the research and development that we have performed to date and will perform in the future, particularly for each of the products in our development pipeline and each of the products marketed by us. We rely on a combination of patent, copyright, trademark and trade secret laws in the United States and other countries to obtain and maintain our intellectual property. We protect our intellectual property by, among other methods, filing for patent applications on inventions that are important to the development and conduct of our business with the USPTO and its foreign counterparts.

We also rely on a combination of non-disclosure, confidentiality and other contractual restrictions to protect our technologies and intellectual property. We require our employees and consultants to execute confidentiality agreements in connection with their employment or consulting relationships with us. We also require them to agree to disclose and assign to us all inventions conceived in connection with the relationship.

In addition to an aggressive licensing strategy, we have two pending patent applications related to our novel iodine-based technologies for women's health and five pending patent applications for our topical compositions for dermatological conditions. These include both U.S. provisional and utility patent applications. We also have two pending international patent applications, which were filed according to the Patent Cooperation Treaty and which enable us to apply for patent protection for the described inventions in key individual countries in the future.

Our patent applications may not result in issued patents and we cannot assure you that any patents that issue will provide a competitive advantage. Moreover, any patents issued to us may be challenged by third parties as invalid or parties may independently develop similar or competing technology or design around our patents. We cannot be certain that the steps we have taken will prevent the misappropriation of our intellectual property, particularly in foreign countries where the laws may not protect our proprietary rights as fully as in the United States.

On March 1, 2013, we entered into a collaboration and license agreement with Iogen to license certain patents, formulations and know-how relating to molecular iodine formulations. Below is a list of

the U.S. patents licensed from Iogen. Our license is an exclusive, royalty-bearing license agreement with the right to enforce and sub-license. These patents have expiration dates between 2017 and 2029.

We have executed collaboration and licensing agreements with Iogen, a biotechnology company with iodine-based solutions and associated intellectual property. Our molecular iodine OTC dietary supplement, VI₂OLET, and the development of our molecular iodine prescription product, BPX03, build upon this licensed technology and its associated intellectual property. Under the terms of the agreement, we received an exclusive, worldwide, perpetual, irrevocable license to Iogen's patented technology relating to an oral iodine tablet. In consideration of the license granted under the agreement, we agreed to pay to Iogen a non-refundable license issue fee of $150,000, which we paid in full, and 30% of net profit associated with direct commercialization of an OTC iodine tablet product or 30% of net royalties received from any sub-licensee. For development and commercialization of a prescription iodine tablet, we agreed to pay Iogen a royalty of 3% of net sales for the first 24 months of commercialization and 2% of net sales thereafter. For other products developed and commercialized using licensed technology, we agreed to pay Iogen a royalty of 3% of net sales for the first 12 months and 2% of net sales thereafter until the expiration of applicable patents covering such products and 1% thereafter.

We have executed a collaboration and supply agreement with NuTech, a biologics company specializing in the spinal and orthopedics market. This agreement describes the collaboration between Nutech and us to develop products in the field of dermatology. Products and intellectual property developed under this agreement are exclusively owned by us and licensed to NuTech for use in indications outside of dermatology. In exchange for an exclusive license to NuTech's intellectual property in the field of dermatology, we will pay to NuTech a royalty of 3% of net sales on product sold in the field of dermatology. In exchange for granting NuTech an exclusive license to our intellectual property and intellectual property developed in collaboration with NuTech in indications outside of dermatology, we will receive from NuTech a royalty of 3% of net sales on products they sell. This agreement will expire when neither party has products that would trigger the payment of royalties or has performed any material research and development, regulatory or clinical activity relating to such products for a period of five years.

We have in place a commercial supply agreement with UPM to manufacture and package our VI₂OLET iodine dietary supplement. As our volume grows, we will consider expanding to multiple suppliers to mitigate the risk of having a single source. Our joint development agreement with NuTech specifies that NuTech will supply materials for certain of our dermatological products.

We utilize contract manufacturers to produce its products for commercial distribution. We have no plans to establish in-house manufacturing capabilities for large-scale production at this time.

UPM, an independent drug development and contract manufacturer serving the pharmaceutical and biotechnology industries and a division of Gregory Pharmaceutical Holdings, Inc., manufactures solid dose iodine supplement tablets for our VI₂OLET iodine dietary supplement. VI₂OLET is manufactured at UPM's 475,000 square-foot manufacturing facility in Bristol, Tennessee, under a commercial supply agreement. UPM provides high-quality drug development services including formulation development, the FDA's cGMP clinical and commercial manufacturing, analytical methods development and stability testing. As our volume grows, we will consider expanding to multiple manufacturers to mitigate the risk of having a single source.

Our product launch for our VI₂OLET iodine dietary supplement is supported by a marketing program, including in-store merchandising, a digital strategy focused on education and activation, public relations events and traditional media to drive awareness and a physician and pharmacist influencer program.

Potential customers for our products and product candidates include pharmaceutical companies, physician's practices, including OB/GYNs, dermatologists and general practitioners and retail customers via retail sales channels and/or pharmacy outlets.

Our competitors, typically large pharmaceutical companies, vary from product to product. In the area of women's health, many companies sell supplements containing iodide salts for the purpose of addressing hypothyroidism as iodine replacement therapy. We believe our competitive advantage is our solid dose proprietary formulation, which delivers molecular iodine in a stable manner allowing the consumer to ingest orally and specifically to address breast symptoms. Addressing an underserved condition, we believe that our VI₂OLET iodine dietary supplement and, if approved, BPX03, are innovative products that provide new treatment options for millions of women.

The following figure presents a typical treatment algorithm for FBC given the current/limited options available to physicians.

Some limitations of competitive approaches to addressing FBC and/or cyclic mastalgia include serious and sometimes dangerous side effects caused by prescription drugs and the temporary nature of relief provided by analgesics. Because optimal solutions do not exist, women often choose to live with chronic pain.

While the acne market has a number of competitive products, BPX01 is being developed to combine the most successful oral approach for the treatment of moderate to severe acne without systemic side effects with a targeted topical antibiotic technology specifically designed to localize the delivery of the API. At the present time, there is no FDA-approved topical solution for this API that provides similar or equal clinical efficacy to that of oral treatments.

prescription acne products that exist in topical form such as antimicrobials, retinoids or some combination of the two. Many of these topical solutions are marketed by Allergan, Galderma S.A., GlaxoSmithKline, Mylan and Valeant.

In addition to prescription acne therapies discussed above, there are numerous OTC products in the form of benzoyl peroxide and salicylic acid topical solutions available from various cosmetic and cosmeceutical companies such as Aveeno, Clean & Clear, Clearasil Pharms, Neutrogena and Proactiv. Energy-based devices have also been used by dermatologists, such as intense pulsed light, or IPL, by Ellipse as well as a combination of IPL and radiofrequency devices, elōs, by Syneron. Combination drug-device treatments such as photodynamic therapy, or PDT, with Blu-U by Dusa Pharmaceuticals, have been used off-label for treating acne, while the Blu-U light source without its PDT drug has been indicated for acne treatment.

In the United States, foods (including dietary supplements), drugs (including biological products), medical devices, cosmetics, tobacco products and radiation-emitting products are subject to extensive regulation by the FDA. The FDC Act and other federal and state statutes and regulations govern, among other things, the manufacture, distribution and sale of these products. These laws and regulations prescribe criminal and civil penalties that can be assessed, and violation of these laws and regulations can result in enforcement action by the FDA and other regulatory agencies.

The formulation, manufacturing, packaging, labeling, advertising, distribution and sale (hereafter, "sale" or "sold" may be used to signify all of these activities) of dietary supplements are subject to regulation by one or more federal agencies, primarily the FDA and the FTC and to a lesser extent the CPSC.

Dietary supplements are also regulated by various governmental agencies for the states and localities in which product are sold. Among other matters, regulation by the FDA and the FTC is concerned with product safety, efficacy and claims made with respect to a dietary supplement's ability to provide health related benefits. The FDA, under the FDC Act, regulates the formulation, manufacturing, packaging, labeling, distribution and sale of food, including dietary supplements. The FTC regulates the advertising of these products. The National Advertising Division, or NAD, of the Council of Better Business Bureaus oversees an industry-sponsored, self-regulatory system that permits competitors to resolve disputes over advertising claims. The NAD has no enforcement authority of its own, but may refer matters that appear to violate the Federal Trade Commission Act, or FTC Act, or the FDC Act to the FTC or the FDA for further action, as appropriate.

Federal agencies, primarily the FDA and the FTC, have a variety of procedures and enforcement remedies available to them, including initiating investigations, issuing warning letters and cease and desist orders, requiring corrective labeling or advertising, requiring consumer redress (for example, requiring that a company offer to repurchase products previously sold to consumers), seeking injunctive relief or product seizures, imposing civil penalties or commencing criminal prosecution. In addition, certain state agencies have similar authority.

The Dietary Supplement Health and Education Act, or DSHEA, was enacted in 1994 and amended the FDC Act. DSHEA establishes a statutory class of dietary supplements, which includes vitamins, minerals, herbs, amino acids and other dietary ingredients for human use to supplement the diet. Dietary ingredients marketed in the United States before October 15, 1994 may be marketed without the submission of a new dietary ingredient, or NDI, premarket notification to the FDA. Dietary ingredients not marketed in the United States before October 15, 1994 may require the submission, at least 75 days before marketing, of an NDI notification containing information establishing that the ingredient is reasonably expected to be safe for its intended use. Among other things, DSHEA prevents the FDA from regulating dietary ingredients in dietary supplements as food additives.

The FDA issued a draft guidance document in July 2011 that clarifies when the FDA believes a dietary ingredient is an NDI, when a manufacturer or distributor must submit an NDI premarket notification to the FDA, the evidence necessary to document the safety of an NDI and the methods for establishing the identity of an NDI. The FDA's interpretation of what constitutes an NDI is extremely broad and seems to imply that virtually every new dietary supplement requires a premarket notification. Although the industry has objected and questioned the FDA's authority, it is unclear whether the FDA will make any changes to the draft guidance, and, if the agency does make changes, what changes will be made. In addition, the FDA may begin to take enforcement actions consistent with the interpretations in the draft guidance before issuing a final version.

The FDA's cGMP regulations for dietary supplements apply to manufacturers and holders of finished dietary supplement products, including dietary supplements manufactured outside the United States that are imported for sale into the United States. Among other things, the FDA's cGMPs: (a) require identity testing on all incoming dietary ingredients, (b) call for a scientifically valid system for ensuring finished products meet all specifications, (c) include requirements related to process controls, including statistical sampling of finished batches for testing and requirements for written procedures and (d) require extensive recordkeeping.

Under the Dietary Supplement and Nonprescription Drug Consumer Protection Act, the FDA requires, among other things, that companies that manufacture or distribute non-prescription drugs or dietary supplements report serious adverse events associated with their products to the FDA and institute recordkeeping requirements for all adverse events. Based on serious adverse event (or other) information, the FDA or another agency may take actions against dietary supplements or dietary ingredients that in its determination present a significant or unreasonable risk of illness or injury, which could make it illegal to sell those products.

The FDA Food Safety Modernization Act, or FSMA, enacted January 4, 2011, amended the FDC Act to significantly enhance the FDA's authority over various aspects of food regulation, including dietary supplements. Under FSMA, the FDA may use the mandatory recall authority when the FDA determines there is a reasonable probability that a food is adulterated or misbranded and that the use of, or exposure to, the food will cause serious adverse health consequences or death to humans or animals. Also under FSMA, the FDA has expanded access to records; the authority to suspend food facility registrations and require high risk imported food to be accompanied by a certification; stronger authority to detain food; the authority to refuse admission of an imported food if it is from a foreign establishment to which a U.S. inspector is refusing entry for an inspection; and the requirement that importers verify that the foods they import meet domestic standards.

One of FSMA's more significant changes is the requirement of preventive controls for food facilities required to register with the FDA, except dietary supplement facilities in compliance with both cGMPs and the serious adverse event reporting requirements. Although dietary supplement facilities are exempt from the preventive controls requirements, dietary ingredient facilities might not qualify for the exemption. The FDA's proposed preventive controls regulations, issued in February 2013 and

supplemented in September 2014, would require that facilities develop and implement preventive controls (including supplier controls) to assure that identified hazards are significantly minimized or prevented, monitor the effectiveness of the preventive controls and maintain numerous records related to those controls. FSMA also requires that importers implement a foreign supplier verification program, or FSVP. The FDA's proposed FSVP regulations, issued in July 2013 and supplemented in September 2014, would require importers to implement supplier verification activities to ensure that the foods they import meet domestic standards, with a partial exemption that might or might not apply to certain importers of dietary ingredients. When implemented, the FSVP requirements may affect the cost and the availability of dietary supplements and dietary ingredients.

The new FSMA requirements, as well as the FDA enforcement of the NDI draft guidance, can result in the detention and refusal of admission of imported products, the injunction of manufacturing of any dietary ingredients or dietary supplements until the FDA determines that such ingredients or products are in compliance, and the potential imposition of fees for re-inspection of non-compliant facilities.

The FDC Act, as amended by DSHEA, permits statements of nutritional support often referred to as "structure/function claims" to be included in labeling for dietary supplements without FDA pre-market approval. FDA regulation requires that the FDA be notified of those statements within 30 days of marketing. Among other things, the statements may describe the role of a dietary ingredient intended to affect the structure or function of the body or characterize the documented mechanism of action by which a dietary ingredient maintains such structure or function, but may not expressly or implicitly represent that a dietary supplement will diagnose, cure, mitigate, treat or prevent a disease. A company that uses a statement of nutritional support in labeling must possess information substantiating that the statement is truthful and not misleading. If the FDA determines that a particular statement of nutritional support is an unacceptable drug claim or an unauthorized version of a health claim, or if the FDA determines that a particular claim is not adequately supported by existing information or is otherwise false or misleading, the claim could not be used and any product bearing the claim could be subject to regulatory action.

The FTC and the FDA have pursued a coordinated effort to challenge the scientific substantiation for dietary supplement claims. Their efforts to date have focused on manufacturers and marketers as well as media outlets and have resulted in a significant number of investigations and enforcement actions, some resulting in civil penalties under the FTC Act of several million dollars. If the FTC and the FDA continue to focus on health-related claims, including structure/function claims for dietary supplements, dietary supplements could be the subject of FTC and/or FDA inquiries, inquiries from the NAD and states Attorney Generals, as well as private class action lawsuits.

All states regulate foods and drugs under laws that generally parallel federal statutes. These products are also subject to state consumer health and safety regulations, such as California Safe Drinking Water and Toxic Enforcement Act of 1986, or Proposition 65. Violation of Proposition 65 may result in substantial monetary penalties.

Pharmaceutical products are subject to extensive regulation by the FDA. The FDC Act, and other federal and state statutes and regulations, govern, among other things, the research, development, testing, manufacture, storage, recordkeeping, approval, labeling, promotion and marketing, distribution, post-approval monitoring and reporting, sampling and import and export of pharmaceutical products. Failure to comply with applicable U.S. requirements may subject a company to a variety of administrative or judicial sanctions, such as FDA refusal to approve pending NDAs, warning or untitled

letters, product recalls, product seizures, total or partial suspension of production or distribution, injunctions, fines, civil penalties and criminal prosecution.

Pharmaceutical product development for a new product or certain changes to an approved product in the United States typically involves preclinical laboratory and animal tests, the submission to the FDA of an IND, which must become effective before clinical testing may commence, and adequate and well-controlled clinical trials to establish the safety and effectiveness of the drug for each indication for which FDA approval is sought. Satisfaction of FDA premarket approval requirements typically takes many years and the actual time required may vary substantially based upon the type, complexity and novelty of the product or disease.

Preclinical tests include laboratory evaluation of product chemistry, formulation and toxicity, as well as animal trials to assess the characteristics and potential safety and efficacy of the product. The conduct of the preclinical tests must comply with federal regulations and requirements, including good laboratory practices. The results of preclinical testing are submitted to the FDA as part of an IND along with other information, including information about product chemistry, manufacturing and controls, and a proposed clinical trial protocol. Long-term preclinical tests, such as animal tests of reproductive toxicity and carcinogenicity, may continue after the IND is submitted.

A thirty-day waiting period after the submission of each IND is required prior to the commencement of clinical testing in humans. If the FDA has neither commented on nor questioned the IND within this thirty-day period, the clinical trial proposed in the IND may begin.

Clinical trials involve the administration of the investigational new drug to healthy volunteers or patients under the supervision of a qualified investigator. Clinical trials must be conducted: (i) in compliance with federal regulations; (ii) in compliance with GCP; as well as (iii) under protocols detailing the objectives of the trial, the parameters to be used in monitoring safety and the effectiveness criteria to be evaluated. Each protocol involving testing on U.S. patients and subsequent protocol amendments must be submitted to the FDA as part of the IND.

The FDA may order the temporary, or permanent, discontinuation of a clinical trial at any time, or impose other sanctions, if it believes that the clinical trial is not being conducted in accordance with FDA requirements or presents an unacceptable risk to the clinical trial patients. The study protocol and informed consent information for patients in clinical trials must also be submitted to an IRB for approval. An IRB may also require the clinical trial at the site to be halted, either temporarily or permanently, for failure to comply with the IRB's requirements, or may impose other conditions.

Clinical trials to support NDAs for marketing approval are typically conducted in three sequential phases, but the phases may overlap. In Phase 1, the initial introduction of the drug into healthy human subjects or patients, the drug is tested to assess metabolism, pharmacokinetics, pharmacological actions, side effects associated with increasing doses and, if possible, early evidence on effectiveness. Phase 2 usually involves trials in a limited patient population to determine the effectiveness of the drug for a particular indication, dosage tolerance and optimum dosage, and to identify common adverse effects and safety risks. If a compound demonstrates evidence of effectiveness and an acceptable safety profile in Phase 2 evaluations, Phase 3 trials are undertaken to obtain the additional information about clinical efficacy and safety in a larger number of patients, typically at geographically-dispersed clinical trial sites, to permit the FDA to evaluate the overall benefit-risk relationship of the drug and to provide adequate information for the labeling of the drug. In most cases the FDA requires two adequate and well-controlled Phase 3 clinical trials to demonstrate the efficacy of the drug. A single Phase 3 trial with other confirmatory evidence may be sufficient in rare instances where the study is a large multi-center trial demonstrating internal consistency and a statistically very persuasive finding of a clinically-meaningful effect on mortality, irreversible morbidity or prevention of a disease with a potentially serious outcome and confirmation of the result in a second trial would be practically or ethically impossible.

After completion of the required clinical testing, an NDA is prepared and submitted to the FDA. FDA approval of the NDA is required before marketing of the product may begin in the United States. The NDA must include the results of all preclinical, clinical and other testing and a compilation of data relating to the product's pharmacology, chemistry, manufacture and controls. The cost of preparing and submitting an NDA is substantial. The submission of most NDAs is additionally subject to a substantial application user fee, currently exceeding $2,335,000, and the manufacturer and/or sponsor under an approved NDA are also subject to annual product and establishment user fees, currently exceeding $110,000 per product and $569,000 per establishment. These fees are typically increased annually.

The FDA has 60 days from its receipt of an NDA to determine whether the application will be accepted for filing based on the agency's threshold determination that it is sufficiently complete to permit substantive review. Once the submission is accepted for filing, the FDA begins an in-depth review. The FDA has agreed to certain performance goals in the review of NDAs. Most such applications for standard review drug products are reviewed within ten to twelve months; most applications for priority review drugs are reviewed in six to eight months. Priority review can be applied to drugs that the FDA determines offer major advances in treatment, or provide a treatment where no adequate therapy exists. For biologics, priority review is further limited to drugs intended to treat a serious or life-threatening disease relative to the currently approved products. The review process for both standard and priority review may be extended by the FDA for three additional months to consider certain late-submitted information, or information intended to clarify information already provided in the submission.

The FDA may also refer applications for novel drug products, or drug products that present difficult questions of safety or efficacy, to an advisory committee—typically a panel that includes clinicians and other experts—for review, evaluation and a recommendation as to whether the application should be approved. The FDA is not bound by the recommendation of an advisory committee, but it generally follows such recommendations. Before approving an NDA, the FDA will typically inspect one or more clinical sites to assure compliance with GCP. Additionally, the FDA will inspect the facility or the facilities at which the drug is manufactured. The FDA will not approve the product unless compliance with cGMPs is satisfactory and the NDA contains data that provide substantial evidence that the drug is safe and effective in the indication studied.

After the FDA evaluates the NDA and the manufacturing facilities, it issues either an approval letter or a complete response letter. A complete response letter generally outlines the deficiencies in the submission and may require substantial additional testing, or information, in order for the FDA to reconsider the application. If, or when, those deficiencies have been addressed to the FDA's satisfaction in a resubmission of the NDA, the FDA will issue an approval letter. The FDA has committed to reviewing such resubmissions in two or six months depending on the type of information included.

An approval letter authorizes commercial marketing of the drug with specific prescribing information for specific indications. As a condition of NDA approval, the FDA may require a REMS to help ensure that the benefits of the drug outweigh the potential risks. REMS can include medication guides, communication plans for healthcare professionals and elements to assure safe use, or ETASU. ETASU can include, but are not limited to, special training or certification for prescribing or dispensing, dispensing only under certain circumstances, special monitoring and the use of patient registries. The requirement for a REMS can materially affect the potential market and profitability of the drug. Moreover, product approval may require substantial post-approval testing and surveillance to monitor the drug's safety or efficacy. Once granted, product approvals may be withdrawn if compliance with regulatory standards is not maintained or problems are identified following initial marketing.

Changes to some of the conditions established in an approved application, including changes in indications, labeling or manufacturing processes or facilities, require submission and FDA approval of a new NDA or NDA supplement before the change can be implemented. An NDA supplement for a new

indication typically requires clinical data similar to that in the original application, and the FDA uses the same procedures and actions in reviewing NDA supplements as it does in reviewing NDAs.

Under the Pediatric Research Equity Act, or PREA, NDAs or supplements to NDAs must contain data to assess the safety and effectiveness of the drug for the claimed indications in all relevant pediatric subpopulations and to support dosing and administration for each pediatric sub-population for which the drug is safe and effective. The FDA may grant full or partial waivers, or deferrals, for submission of data. Unless otherwise required by regulation, PREA does not apply to any drug for an indication for which orphan designation has been granted.

The Best Pharmaceuticals for Children Act, or BPCA, provides NDA holders a six-month extension of any exclusivity—patent or non-patent—for a drug if certain conditions are met. Conditions for exclusivity include the FDA's determination that information relating to the use of a new drug in the pediatric population may produce health benefits in that population, the FDA making a written request for pediatric studies and the applicant agreeing to perform, and reporting on, the requested studies within the statutory timeframe. Applications under the BPCA are treated as priority applications, with all of the benefits that designation confers.

Sponsors of clinical trials of FDA-regulated products, including drugs, are required to register and disclose certain clinical trial information. Information related to the product, patient population, phase of investigation, study sites and investigators, and other aspects of the clinical trial is then made public as part of the registration. Sponsors are also obligated to discuss the results of their clinical trials after completion. Disclosure of the results of these trials can be delayed until the new product or new indication being studied has been approved. Competitors may use this publicly-available information to gain knowledge regarding the progress of development programs.

In seeking approval for a drug through an NDA, applicants are required to list with the FDA each patent whose claims cover the applicant's product. Upon approval of a drug, each of the patents listed in the application for the drug is then published in the FDA's Approved Drug Products with Therapeutic Equivalence Evaluations, commonly known as the Orange Book. Drugs listed in the Orange Book can, in turn, be cited by potential generic competitors in support of approval of an abbreviated new drug application, or ANDA. An ANDA provides for marketing of a drug product that has the same active ingredients in the same strengths and dosage form as the listed drug and has been shown through bioequivalence testing to be therapeutically equivalent to the listed drug. Other than the requirement for bioequivalence testing, ANDA applicants are not required to conduct, or submit results of, preclinical or clinical tests to prove the safety or effectiveness of their drug product. Drugs approved in this way are commonly referred to as "generic equivalents" to the listed drug, and can often be substituted by pharmacists under prescriptions written for the original listed drug.

The ANDA applicant is required to certify to the FDA concerning any patents listed for the approved product in the FDA's Orange Book. Specifically, the applicant must certify that: (i) the required patent information has not been filed; (ii) the listed patent has expired; (iii) the listed patent has not expired, but will expire on a particular date and approval is sought after patent expiration; or (iv) the listed patent is invalid or will not be infringed by the new product. The ANDA applicant may also elect to submit a section viii statement certifying that its proposed ANDA label does not contain (or carves out) any language regarding the patented method-of-use rather than certify to a listed

method-of-use patent. If the applicant does not challenge the listed patents, the ANDA application will not be approved until all the listed patents claiming the referenced product have expired.

A certification that the new product will not infringe the already approved product's listed patents, or that such patents are invalid, is called a Paragraph IV certification. If the ANDA applicant has provided a Paragraph IV certification to the FDA, the applicant must also send notice of the Paragraph IV certification to the NDA and patent holders once the ANDA has been accepted for filing by the FDA. The NDA and patent holders may then initiate a patent infringement lawsuit in response to the notice of the Paragraph IV certification. The filing of a patent infringement lawsuit within 45 days of the receipt of a Paragraph IV certification automatically prevents the FDA from approving the ANDA until the earlier of 30 months, expiration of the patent, settlement of the lawsuit or a decision in the infringement case that is favorable to the ANDA applicant.

The ANDA application also will not be approved until any applicable non-patent exclusivity listed in the Orange Book for the referenced product has expired.

Upon NDA approval of a new chemical entity, or NCE, which is a drug that contains no active moiety that has been approved by the FDA in any other NDA, that drug receives five years of marketing exclusivity during which the FDA cannot receive any ANDA seeking approval of a generic version of that drug. Certain changes to a drug, such as the addition of a new indication to the package insert, are associated with a three-year period of exclusivity during which the FDA cannot approve an ANDA for a generic drug that includes the change.

An ANDA may be submitted one year before NCE exclusivity expires if a Paragraph IV certification is filed. If there is no listed patent in the Orange Book, there may not be a Paragraph IV certification, and, thus, no ANDA may be filed before the expiration of the exclusivity period.

After NDA approval, owners of relevant drug patents may apply for up to a five-year patent extension. The allowable patent term extension is calculated as half of the drug's testing phase—the time between IND application and NDA submission—and all of the review phase—the time between NDA submission and approval up to a maximum of five years. The time can be shortened if the FDA determines that the applicant did not pursue approval with due diligence. The total patent term after the extension may not exceed 14 years.

For patents that might expire during the application phase, the patent owner may request an interim patent extension. An interim patent extension increases the patent term by one year and may be renewed up to four times. For each interim patent extension granted, the post-approval patent extension is reduced by one year. The director of the USPTO must determine that approval of the drug covered by the patent for which a patent extension is being sought is likely. Interim patent extensions are not available for a drug for which an NDA has not been submitted.

Most drug products obtain FDA marketing approval pursuant to an NDA or an ANDA. A third alternative is a special type of NDA, commonly referred to as a Section 505(b)(2) NDA, which enables the applicant to rely, in part, on the FDA's previous approval of a similar product, or published literature, in support of its application.

Section 505(b)(2) NDAs often provide an alternate path to FDA approval for new or improved formulations or new uses of previously approved products. Section 505(b)(2) permits the filing of an NDA where at least some of the information required for approval comes from studies not conducted by, or for, the applicant and for which the applicant has not obtained a right of reference. If the Section 505(b)(2) applicant can establish that reliance on the FDA's previous approval is scientifically appropriate, it may eliminate the need to conduct certain preclinical or clinical studies of the new product. The FDA may also require companies to perform additional studies or measurements to support the change from the approved product. The FDA may then approve the new product candidate for all, or some, of the label indications for which the referenced product has been approved, as well as for any new indication sought by the Section 505(b)(2) applicant.

To the extent that the Section 505(b)(2) applicant is relying on studies conducted for an already approved product, the applicant is required to certify to the FDA concerning any patents listed for the approved product in the Orange Book to the same extent that an ANDA applicant would. Thus approval of a Section 505(b)(2) NDA can be stalled until all the listed patents claiming the referenced product have expired, until any non-patent exclusivity, such as exclusivity for obtaining approval of a new chemical entity, listed in the Orange Book for the referenced product has expired and, in the case of a Paragraph IV certification and subsequent patent infringement suit, until the earlier of 30 months, settlement of the lawsuit or a decision in the infringement case that is favorable to the Section 505(b)(2) applicant.

Once an NDA is approved, a product will be subject to certain post-approval requirements. For instance, the FDA closely regulates the post-approval marketing and promotion of drugs, including standards and regulations for direct-to-consumer advertising, off-label promotion, industry-sponsored scientific and educational activities and promotional activities involving the internet. Drugs may be marketed only for the approved indications and in accordance with the provisions of the approved labeling.

Adverse event reporting and submission of periodic reports is required following FDA approval of an NDA. The FDA also may require post-marketing testing, known as Phase 4 testing, REMS and surveillance to monitor the effects of an approved product, or the FDA may place conditions on an approval that could restrict the distribution or use of the product. In addition, quality-control, drug manufacture, packaging and labeling procedures must continue to conform to cGMPs after approval. Drug manufacturers and certain of their subcontractors are required to register their establishments with the FDA and certain state agencies. Registration with the FDA subjects entities to periodic unannounced inspections by the FDA, during which the agency inspects manufacturing facilities to assess compliance with cGMPs. Accordingly, manufacturers must continue to expend time, money and effort in the areas of production and quality-control to maintain compliance with cGMPs. Regulatory authorities may withdraw product approvals or request product recalls if a company fails to comply with regulatory standards, if it encounters problems following initial marketing or if previously unrecognized problems are subsequently discovered.

In order to market any product outside of the United States, a company must also comply with numerous and varying regulatory requirements of other countries and jurisdictions regarding quality, safety and efficacy and governing, among other things, clinical trials, marketing authorization, commercial sales and distribution of drug products. Whether or not we obtain FDA approval for a product, we would need to obtain the necessary approvals by the comparable foreign regulatory authorities before we can commence clinical trials or marketing of the product in those countries or jurisdictions. The approval process ultimately varies among countries and jurisdictions and can involve

additional product testing and additional administrative review periods. The time required to obtain approval in other countries and jurisdictions might differ from and be longer than that required to obtain FDA approval. Regulatory approval in one country or jurisdiction does not ensure regulatory approval in another, but a failure or delay in obtaining regulatory approval in one country or jurisdiction may negatively impact the regulatory process in others.

The process governing approval of medicinal products in the European Union follows essentially the same lines as in the United States and, likewise, generally involves satisfactorily completing each of the following:

Preclinical tests include laboratory evaluations of product chemistry, formulation and stability, as well as studies to evaluate toxicity in animal studies, in order to assess the potential safety and efficacy of the product. The conduct of the preclinical tests and formulation of the compounds for testing must comply with the relevant E.U. regulations and requirements. The results of the preclinical tests, together with relevant manufacturing information and analytical data, are submitted as part of the CTA.

Requirements for the conduct of clinical trials in the European Union, including GCP, are implemented in the Clinical Trials Directive 2001/20/EC and the GCP Directive 2005/28/EC. Pursuant to Directive 2001/20/EC and Directive 2005/28/EC, as amended, a system for the approval of clinical trials in the European Union has been implemented through national legislation of the member states. Under this system, approval must be obtained from the competent national authority of an E.U. member state in which a study is planned to be conducted, or in multiple member states if the clinical trial is to be conducted in a number of member states. To this end, a CTA is submitted, which must be supported by an investigational medicinal product dossier, or IMPD, and further supporting information prescribed by Directive 2001/20/EC and Directive 2005/28/EC and other applicable

guidance documents. Furthermore, a clinical trial may only be started after a competent ethics committee has issued a favorable opinion on the clinical trial application in that country.

In April 2014, the E.U. legislator passed the new Clinical Trials Regulation, (EU) No 536/2014, which will replace the current Clinical Trials Directive 2001/20/EC. To ensure that the rules for clinical trials are identical throughout the European Union, the new E.U. clinical trials legislation was passed as a regulation that is directly applicable in all E.U. member states. All clinical trials performed in the European Union are required to be conducted in accordance with the Clinical Trials Directive 2001/20/EC until the new Clinical Trials Regulation (EU) No 536/2014 becomes applicable, which will be no earlier than May 28, 2016.

The new Regulation (EU) No 536/2014 aims to simplify and streamline the approval of clinical trial in the European Union. The main characteristics of the regulation include:

Authorization to market a product in the member states of the European Union proceeds under one of four procedures: a centralized authorization procedure, a mutual recognition procedure, a decentralized procedure or a national procedure.

The centralized procedure enables applicants to obtain a marketing authorization that is valid in all E.U. member states based on a single application. Certain medicinal products, including products developed by means of biotechnological processes, must undergo the centralized authorization procedure for marketing authorization, which, if granted by the European Commission, is automatically valid in all 28 E.U. member states. The European Medicines Agency, or EMA, and the European Commission administer this centralized authorization procedure pursuant to Regulation (EC) No 726/2004.

The centralized authorization procedure is optional for other medicinal products if they contain a new active substance or if the applicant shows that the medicinal product concerned constitutes a significant therapeutic, scientific or technical innovation or that the granting of authorization is in the interest of patients in the European Union.

Under the centralized authorization procedure, the EMA's Committee for Human Medicinal Products, or CHMP, serves as the scientific committee that renders opinions about the safety, efficacy and quality of medicinal products for human use on behalf of the EMA. The CHMP is composed of experts nominated by each member state's national authority for medicinal products, with an expert appointed to act as Rapporteur for the coordination of the evaluation with the possible assistance of a further member of the Committee acting as a Co-Rapporteur. After approval, the Rapporteur(s) continue to monitor the product throughout its life cycle. The CHMP has 210 days to adopt an opinion as to whether a marketing authorization should be granted. The process usually takes longer in case additional information is requested, which triggers clock-stops in the procedural timelines. The process is complex and involves extensive consultation with the regulatory authorities of member states and a number of experts. When an application is submitted for a marketing authorization in respect of a drug that is of major interest from the point of view of public health and in particular from the viewpoint of therapeutic innovation, the applicant may pursuant to Article 14(9) Regulation (EC) No 726/2004 request an accelerated assessment procedure. If the CHMP accepts such request, the time-limit of 210 days will be reduced to 150 days but it is possible that the CHMP can revert to the standard time-limit for the centralized procedure if it considers that it is no longer appropriate to conduct an accelerated assessment. Once the procedure is completed, a European Public Assessment Report, or EPAR, is produced. If the opinion is negative, information is given as to the grounds on which this conclusion was reached. After the adoption of the CHMP opinion, a decision on the MAA must be adopted by the European Commission, after consulting the E.U. member states, which in total can take more than 60 days.

In specific circumstances, E.U. legislation (Article 14(7) Regulation (EC) No 726/2004 and Regulation (EC) No 507/2006 on Conditional Marketing Authorisations for Medicinal Products for Human Use) enables applicants to obtain a conditional marketing authorization prior to obtaining the

comprehensive clinical data required for an application for a full marketing authorization. Such conditional approvals may be granted for product candidates (including medicines designated as orphan medicinal products) if (1) the risk-benefit balance of the product candidate is positive, (2) it is likely that the applicant will be in a position to provide the required comprehensive clinical trial data, (3) the product fulfills unmet medical needs and (4) the benefit to public health of the immediate availability on the market of the medicinal product concerned outweighs the risk inherent in the fact that additional data are still required. A conditional marketing authorization may contain specific obligations to be fulfilled by the marketing authorization holder, including obligations with respect to the completion of ongoing or new studies, and with respect to the collection of pharmacovigilance data. Conditional marketing authorizations are valid for one year, and may be renewed annually, if the risk-benefit balance remains positive, and after an assessment of the need for additional or modified conditions and/or specific obligations. The timelines for the centralized procedure described above also apply with respect to the review by the CHMP of applications for a conditional marketing authorization.

Under Article 14(8) Regulation (EC) No 726/2004, products for which the applicant can demonstrate that comprehensive data (in line with the requirements laid down in Annex I of Directive 2001/83/EC, as amended) cannot be provided (due to specific reasons foreseen in the legislation) might be eligible for marketing authorization under exceptional circumstances. This type of authorization is reviewed annually to reassess the risk-benefit balance. The fulfillment of any specific procedures/obligations imposed as part of the marketing authorization under exceptional circumstances is aimed at the provision of information on the safe and effective use of the product and will normally not lead to the completion of a full dossier/approval.

In general, if the centralized procedure is not followed, there are three alternative procedures as prescribed in Directive 2001/83/EC:

A marketing authorization may be granted only to an applicant established in the European Union.

Prior to obtaining a marketing authorization in the European Union, applicants have to demonstrate compliance with all measures included in an EMA-approved Paediatric Investigation Plan, or PIP, covering all subsets of the pediatric population, unless the EMA has granted a product-specific waiver, a class waiver or a deferral for one or more of the measures included in the PIP. The respective requirements for all marketing authorization procedures are set forth in Regulation (EC) No 1901/2006, which is referred to as the Pediatric Regulation. This requirement also applies when a company wants to add a new indication, pharmaceutical form or route of administration for a medicine that is already authorized. The Pediatric Committee of the EMA, or PDCO, may grant deferrals for some medicines, allowing a company to delay development of the medicine in children until there is

enough information to demonstrate its effectiveness and safety in adults. The PDCO may also grant waivers when development of a medicine in children is not needed or is not appropriate, such as for diseases that only affect the elderly population.

Before a marketing authorization application can be filed, or an existing marketing authorization can be amended, the EMA determines that companies actually comply with the agreed studies and measures listed in each relevant PIP.

A marketing authorization is valid for five years in principle and the marketing authorization may be renewed after five years on the basis of a re-evaluation of the risk-benefit balance by the EMA or by the competent authority of the authorizing member state. To this end, the marketing authorization holder must provide the EMA or the competent authority with a consolidated version of the file in respect of quality, safety and efficacy, including all variations introduced since the marketing authorization was granted, at least six months before the marketing authorization ceases to be valid. Once renewed, the marketing authorization is valid for an unlimited period, unless the European Commission or the competent authority decides, on justified grounds relating to pharmacovigilance, to proceed with one additional five-year renewal. Any authorization which is not followed by the actual placing of the drug on the E.U. market (in case of centralized procedure) or on the market of the authorizing member state within three years after authorization ceases to be valid (the so-called sunset clause).

E.U. legislation also provides for a system of regulatory data and market exclusivity. According to Article 14(11) of Regulation (EC) No 726/2004, as amended, and Article 10(1) of Directive 2001/83/EC, as amended, upon receiving marketing authorization, new chemical entities approved on the basis of complete independent data package benefit from eight years of data exclusivity and an additional two years of market exclusivity. Data exclusivity prevents regulatory authorities in the European Union from referencing the innovator's data to assess a generic (abbreviated) application. During the additional two-year period of market exclusivity, a generic marketing authorization can be submitted, and the innovator's data may be referenced, but no generic medicinal product can be marketed until the expiration of the market exclusivity. The overall ten-year period will be extended to a maximum of 11 years if, during the first eight years of those ten years, the marketing authorization holder, or MAH, obtains an authorization for one or more new therapeutic indications which, during the scientific evaluation prior to their authorization, are held to bring a significant clinical benefit in comparison with existing therapies. Even if a compound is considered to be a new chemical entity and the innovator is able to gain the period of data exclusivity, another company nevertheless could also market another version of the drug if such company obtained marketing authorization based on an MAA with a complete independent data package of pharmaceutical tests, preclinical tests and clinical trials. However, products designated as orphan medicinal products enjoy, upon receiving marketing authorization, a period of ten years of orphan market exclusivity. Depending upon the timing and duration of the E.U. marketing authorization process, products may be eligible for up to five years' supplementary protection certificates, or SPCs, pursuant to Regulation (EC) No 469/2009. Such SPCs extend the rights under the basic patent for the drug.

If we obtain authorization for a medicinal product in the European Union, we will be required to comply with a range of requirements applicable to the manufacturing, marketing, promotion and sale of medicinal products:

We will, for example, have to comply with the E.U.'s stringent pharmacovigilance or safety reporting rules, pursuant to which post-authorization studies and additional monitoring obligations can be imposed. Other requirements relate, for example, to the manufacturing of products and APIs in accordance with good manufacturing practice standards. E.U. regulators may conduct inspections to verify our compliance with applicable requirements, and we will have to continue to expend time, money and effort to remain compliant. Non-compliance with E.U. requirements regarding safety monitoring or pharmacovigilance, and with requirements related to the development of products for the pediatric population, can also result in significant financial penalties in the European Union. Similarly, failure to comply with the E.U.'s requirements regarding the protection of individual personal data can also lead to significant penalties and sanctions. Individual E.U. member states may also impose various sanctions and penalties in case we do not comply with locally-applicable requirements.

The manufacturing of authorized drugs, for which a separate manufacturer's license is mandatory, must be conducted in strict compliance with the EMA's Good Manufacturing Practices, or GMP, requirements and comparable requirements of other regulatory bodies in the European Union, which mandate the methods, facilities and controls used in manufacturing, processing and packing of drugs to assure their safety and identity. The EMA enforces its current GMP requirements through mandatory registration of facilities and inspections of those facilities. The EMA may have a coordinating role for these inspections while the responsibility for carrying them out rests with the member state's competent authority under whose responsibility the manufacturer falls. Failure to comply with these requirements could interrupt supply and result in delays, unanticipated costs and lost revenues, and could subject the applicant to potential legal or regulatory action, including but not limited to warning letters, suspension of manufacturing, seizure of product, injunctive action or possible civil and criminal penalties.

The marketing and promotion of authorized drugs, including industry-sponsored continuing medical education and advertising directed toward the prescribers of drugs and/or the general public, are strictly regulated in the European Union under Directive 2001/83/EC. The applicable regulations aim to ensure that information provided by holders of marketing authorizations regarding their products is truthful, balanced and accurately reflects the safety and efficacy claims authorized by the EMA or by the competent authority of the authorizing member state. Failure to comply with these requirements can result in adverse publicity, warning letters, corrective advertising and potential civil and criminal penalties.

In order to compensate the patentee for delays in obtaining a marketing authorization for a patented product, a supplementary certificate, or SPC, may be granted extending the exclusivity period for that specific product by up to five years. Applications for SPCs must be made to the relevant patent office in each E.U. member state and the granted certificates are valid only in the member state of grant. An application has to be made by the patent owner within six months of the first marketing authorization being granted in the European Union (assuming the patent in question has not expired,

lapsed or been revoked) or within six months of the grant of the patent (if the marketing authorization is granted first). In the context of SPCs, the term "product" means the active ingredient or combination of active ingredients for a medicinal product and the term "patent" means a patent protecting such a product or a new manufacturing process or application for it. The duration of an SPC is calculated as the difference between the patent's filing date and the date of the first marketing authorization, minus five years, subject to a maximum term of five years.

A six month pediatric extension of an SPC may be obtained where the patentee has carried out an agreed pediatric investigation plan, the authorized product information includes information on the results of the studies and the product is authorized in all member states of the European Union.

Significant uncertainty exists as to the coverage and reimbursement status of products approved by the FDA and other government authorities. Sales of products will depend, in part, upon the extent to which the costs of the products will be covered by third-party payors, including government health programs in the United States such as Medicare and Medicaid, commercial health insurers and managed care organizations. The process for determining whether a payor will provide coverage for a product may be separate from the process for setting the price or reimbursement rate that the payor will pay for the product once coverage is approved. Third-party payors may limit coverage to specific products on an approved list, or formulary, which might not include all of the approved products for a particular indication.

In order to secure coverage and reimbursement for any product that might be approved for sale, a company may need to conduct expensive pharmacoeconomic studies in order to demonstrate the medical necessity and cost-effectiveness of the product, in addition to the costs required to obtain FDA or other comparable regulatory approvals. A payor's decision to provide coverage for a drug product does not imply that an adequate reimbursement rate will be approved. Third-party reimbursement may not be sufficient to maintain price levels high enough to realize an appropriate return on investment in product development.

In the European Union, pricing and reimbursement schemes vary widely from country to country. Some countries provide that drug products may be marketed only after a reimbursement price has been agreed. Some countries may require the completion of additional studies that compare the cost-effectiveness of our drug candidate to currently-available therapies (so called health technology assessment) in order to obtain reimbursement or pricing approval. For example, the European Union provides options for its member states to restrict the range of drug products for which their national health insurance systems provide reimbursement and to control the prices of medicinal products for human use. E.U. member states may approve a specific price for a drug product or it may instead adopt a system of direct or indirect controls on the profitability of the company placing the drug product on the market. Other member states allow companies to fix their own prices for drug products, but monitor and control prescription volumes and issue guidance to physicians to limit prescriptions. The downward pressure on health care costs in general, particularly prescription drugs, has become intense. As a result, increasingly high barriers are being erected to the entry of new products. In addition, there can be considerable pressure by governments and other stakeholders on prices and reimbursement levels, including as part of cost-containment measures. Political, economic and regulatory developments may further complicate pricing negotiations, and pricing negotiations may continue after reimbursement has been obtained. Reference pricing used by various E.U. member states and parallel distribution (arbitrage between low-priced and high-priced member states) can further reduce prices. Any country that has price controls or reimbursement limitations for drug products may not allow favorable reimbursement and pricing arrangements.

Healthcare providers, physicians and third-party payors play a primary role in the recommendation and prescription of drug products that are granted marketing approval. Arrangements with third-party payors and customers are subject to broadly-applicable fraud and abuse and other healthcare laws and regulations. Such restrictions under applicable federal and state healthcare laws and regulations, include the following:

Some state laws require pharmaceutical companies to comply with the pharmaceutical industry's voluntary compliance guidelines and the relevant compliance guidance promulgated by the federal government in addition to requiring drug manufacturers to report information related to payments to physicians and other healthcare providers or marketing expenditures. State and foreign laws also govern the privacy and security of health information in some circumstances, many of which differ from each other in significant ways and often are not preempted by HIPAA, thus complicating compliance efforts.

The manufacturing facilities of the third parties that develop our product candidates are subject to extensive environmental, health and safety laws and regulations in a number of jurisdictions, governing, among other things: the use, storage, registration, handling, emission and disposal of chemicals, waste materials and sewage; chemicals, air, water and ground contamination; air emissions and the cleanup of contaminated sites, including any contamination that results from spills due to our failure to dispose of chemicals, waste materials and sewage properly.

These laws, regulations and permits could potentially require the expenditure by us of significant amounts for compliance or remediation. If the third-party manufacturers fail to comply with such laws, regulations or permits, we may be subject to fines and other civil, administrative or criminal sanctions, including the revocation of permits and licenses necessary to continue our business activities. In addition, we may be required to pay damages or civil judgments in respect of third-party claims, including those relating to personal injury (including exposure to hazardous substances we use, store, handle, transport, manufacture or dispose of), property damage or contribution claims. Some environmental, health and safety laws allow for strict, joint and several liability for remediation costs, regardless of comparative fault. We may be identified as a responsible party under such laws. Such developments could have a material adverse effect on our business, financial condition and results of operations.

In addition, laws and regulations relating to environmental, health and safety matters are often subject to change. In the event of any changes or new laws or regulations, we could be subject to new compliance measures or to penalties for activities that were previously permitted.

Our principal executive office and laboratory is located at 1098 Hamilton Court, Menlo Park, California 94025, where we occupy 10,800 sq. ft. of research and development and administration facilities that are nearby to external formulation, clinical and preclinical testing facilities. The lease expires in November 2016. We believe that our existing property is in good condition and suitable for our current needs.

As of April 30, 2015, we had 24 employees, all of which were full time. We had 13 employees in research and development. We had one employee located outside of the United States as of April 30, 2015. We also retain independent contractors to support our organization. None of our employees are represented by a labor union or covered by a collective bargaining agreement. We have not experienced any work stoppages and we consider our relations with our employees to be good.

From time to time, we may become party to litigation or other legal proceedings that we consider to be a part of the ordinary course of our business. We are not currently involved in any legal proceedings that could reasonably be expected to have a material adverse effect on our business, prospects, financial condition or results of operations. We may become involved in material legal proceedings in the future.

In connection with the Share Exchange, effective on January 21, 2014, James Pekarsky was appointed as Chairman of the board of directors, Chief Executive Officer, Chief Financial Officer and Treasurer, and Anja Krammer was appointed as a director and as President and Secretary. Kade Thompson resigned as our sole director and officer at the same time. Kin F. Chan, PhD was appointed as our Executive Vice President of Research and Development effective February 17, 2014. Ping Wang was appointed as a director effective November 10, 2014. Michael Hubbard was appointed as a director effective January 22, 2015. Stephen Morlock was appointed as a director effective March 26, 2015.

The following table sets forth certain information as of April 30, 2015, concerning our directors and executive officers:

Name		Position

James R. Pekarsky	55	Chief Executive Officer, Treasurer and Chairman of the Board of Directors
Anja Krammer	47	President, Secretary and Director
Kin F. Chan, PhD	41	Executive Vice President of Research & Development
Ping Wang	38	Director
Michael Hubbard	63	Director
Stephen Morlock	61	Director

James R. Pekarsky has been our Chief Executive Officer, Treasurer and Chairman of the Board since January 2014. Since September 2011, Mr. Pekarsky has served as Chief Executive Officer, Treasurer and director of BioPharmX, Inc. From November 2011 to August 2013, he served as Chief Financial Officer of Solar Power, Inc. From November 2007 to November 2011, Mr. Pekarsky was a consulting Chief Financial Officer to a variety of early-stage, start-up companies. Additionally, Mr. Pekarsky served as Chief Financial Officer of MoSys, Inc., from January 2006 to November 2007, AccelChip from December 2004 to December 2006 and Virage Logic from May 1999 to November 2003, where he helped lead the company's IPO in August 2000. Mr. Pekarsky also held general manager and senior operations positions at Mentor Graphics from January 1997 to May 1999, Advanced Molecular Systems from June 1995 to December 1996, Sclavo Diagnostics from November 1993 to May 1995 and Bio-Rad Laboratories from June 1989 to October 1993. Mr. Pekarsky holds a BS in accounting from Indiana University of Pennsylvania and an MBA in finance from Golden Gate University. We believe that Mr. Pekarsky should serve on our board of directors due to his substantial leadership experience in senior finance, operations and general management roles in high tech and medical research companies, along with international business, strategic planning and thorough knowledge of public company requirements.

Anja Krammer has served as our President, Secretary and a director since January 2014. Since September 2011 she has served as the President, Secretary and director of BioPharmX, Inc. Ms. Krammer previously served as Chief Marketing Officer/Founder of MBI, Inc., a management consulting firm from January 1998 to December 2013. While at MBI, Inc., Ms. Krammer also served as Vice President Global Marketing from April 2006 to August 2008 for Reliant Technologies, a venture-backed startup in aesthetic medicine. From April 2004 to April 2006, Ms. Krammer served as Sr. Director of Strategic Marketing for Medtronic Corporation. From December 2000 to September 2001, Ms. Krammer was Vice President, Solutions Marketing for Getronics Corporation, a global IT

services company. From April 1999 to December 2000, Ms. Krammer served as Vice President, Indirect Channel Sales and Worldwide Industry Partnership Marketing, Itronix Division, Acterna Corporation, an optical communications company. Prior roles include serving as Director of Worldwide Marketing and Communications for Tektronix Corporation in its Color Printing and Imaging Division from October 1997 to April 1999. From October 1995 to October 1997, Ms. Krammer was Director of Worldwide Sales and Marketing with KeyTronic Corporation, a computer equipment manufacturer. Ms. Krammer holds a BAIS degree with a focus on Marketing/Management from the University of South Carolina and an International Trade Certificate from the Sorbonne, University of Paris. We believe that Ms. Krammer should serve on our board of directors due to her experience in guiding healthcare and consumer enterprises in product development, sales and marketing management and commercialization strategies and her industry background in pharmaceuticals, medical devices, technology and consumer products.

Kin F. Chan, PhD has served as Executive Vice President of Research & Development since February 2014. Since September 2011, Dr. Chan has served as Vice President of Technology of BioPharmX, Inc. He was also the founder and President of Fourier Biotechnologies, LLC, which provides services in optical engineering and preclinical research, from 2009 to January 2014. In addition, from April 2012 to January 2014, he was Vice President of Engineering at Demira, Inc., a biopharmaceutical company focusing on dermatology products. Prior to that he was the Managing Director of Advanced Research at Solta Medical, Inc. from 2003 to 2009, and was an optical R&D engineer at Ball Semiconductor, Inc. from 2000 to 2003. Dr. Chan received his BS, MS and PhD in Electrical & Computer Engineering from the University of Texas at Austin.

Ping Wang has served as a director since November 2014. Mr. Wang has been a Principal of Korea Investment Partners, a venture capital investment firm, since May 2010. Prior to joining Korea Investment Partners in 2010, he worked at Great Pacific Financial Group from October 2007 to March 2010. Previously, Mr. Wang was an investment officer at Beijing Ancai Technology Venture Capital from May 2006 to October 2007, and earlier, worked at Matsuoka Industry Group as IT Manager from January 2000 to December 2002. He began his professional career as a software engineer at IBM from December 1998 to November 1999. Mr. Wang earned a BS degree in Computer Science at the University of Texas, Austin, and graduated from the MIT Sloan-Tsinghua joint program with an International MBA degree. We believe that Mr. Wang should serve on our board of directors due to his experience analyzing corporate performance as a venture capitalist and managing his firm's investments in private companies and knowledge of healthcare and pharmaceutical industries, important skills related to corporate finance, oversight of management and strategic positioning.

Michael Hubbard has served as a director since January 2015. Mr. Hubbard served as a senior audit partner at Deloitte & Touche LLP from August 2007 until retiring in June 2014 and also at PricewaterhouseCoopers LLP from September 1986 to July 2007. In these roles, he served private and publicly-held clients across the life sciences, waste management, construction, and technology sectors, advising domestic and international issuer companies on complex transactions, including 19 IPOs and numerous follow-on equity and debt offerings. Mr. Hubbard holds a BA degree in Business Administration with a concentration in Accounting and an MBA degree from Washington State University. He is a licensed CPA in the states of Washington and California and is a certified practitioner of international financial reporting standards. We believe that Mr. Hubbard should serve on our board of directors due to his broad range of experience serving large public and private companies in the United States and internationally, including experience with the reporting requirements for complex transactions, including carve-outs and spin-offs, direct involvement with numerous SEC filings and significant experience working with SEC staff, including the pre-clearance of accounting issues, responses to comments letters on periodic filings and offering documents.

Stephen Morlock has served as a director since March 2014. Mr. Morlock served as Executive Vice President and Chief Financial Officer at Otis Spunkmeyer, Inc. from May 1994 until his retirement in June 2004. He also served as Controller from August 1992 to April 1994. Prior to that, he held various management positions in accounting, financial planning and internal audit at Westinghouse Electric Supply Company from November 1977 to July 1992. Since his retirement in June 2004, Mr. Morlock has not been active in any business activities. Mr. Morlock holds a BS degree in Accounting from San Diego State University. We believe that Mr. Morlock should serve on our board of directors due to his extensive experience in the retail industry, including a variety of distribution channels, product merchandising, customer relationship management and brand name development, as well as his background in manufacturing capacity utilization and expansion, procurement and inventory management, compensation plan design and financial reporting.

All of our directors hold their positions on the board until our next annual meeting of the stockholders and until their successors have been qualified after being elected or appointed. Officers serve at the discretion of the board of directors.

There are no family relationships among our directors and executive officers. The investor rights agreements with certain investors provide that Mr. Pekarsky, Ms. Krammer and Dr. Chan shall vote from time to time in favor of a director designated by certain holders of our Series A preferred stock. Mr. Wang, who we refer to as the Series A Director, is the board designee of such holders of our Series A preferred stock. With the exception of the foregoing, there is no arrangement or understanding between or among our executive officers and directors pursuant to which any director or officer was or is to be selected as a director or officer, and there is no arrangement, plan or understanding as to whether non-management stockholders will exercise their voting rights to continue to elect the current board of directors. The investor rights agreements by which Mr. Wang was elected will terminate in connection with this offering and there will be no contractual obligations regarding the election of our directors.

Our business and affairs are organized under the direction of our board of directors, which currently consists of five members.

The investor rights agreements by which the Series A Director is elected will terminate upon receipt of approval to list our stock on the NYSE MKT and there will be no contractual obligations regarding the election of our directors. Each of our current directors will continue to serve until the earlier of election and qualification of his or her successor, or his or her death, resignation or removal.

All of our directors hold their positions on the board until our next annual meeting of the stockholders. Each director's term continues until the earlier of election and qualification of his or her successor, or his or her death, resignation or removal. Our bylaws authorize our board of directors to fill vacancies on our board of directors.

In connection with this offering, we have been approved to list our common stock on the NYSE MKT upon pricing of this offering. Under the rules of the NYSE MKT, independent directors must comprise at least 50% of a listed company's board of directors. In addition, the rules of NYSE MKT require that, subject to specified exceptions, each member of a listed company's audit, compensation and nominating and corporate governance committees be independent. Under the rules of NYSE MKT, a director will only qualify as an "independent director" if, in the opinion of that company's board of directors, that person does not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.

Audit committee members must also satisfy the independence criteria set forth in Rule 10A-3 under the Exchange Act. In order to be considered independent for purposes of Rule 10A-3, a member of an audit committee of a listed company may not, other than in his or her capacity as a member of the audit committee, the board of directors or any other board committee: (1) accept, directly or indirectly, any consulting, advisory or other compensatory fee from the listed company or any of its subsidiaries; or (2) be an affiliated person of the listed company or any of its subsidiaries.

Our board of directors has undertaken a review of the independence of each director and considered whether each director has a material relationship with us that could compromise his ability to exercise independent judgment in carrying out his responsibilities. As a result of this review, our board of directors determined that all of the members of our board, except Mr. Pekarsky and Ms. Krammer, are "independent directors" as defined under the applicable rules and regulations of the SEC and the listing requirements and rules of NYSE MKT. In making these determinations, our board of directors reviewed and discussed information provided by the directors and us with regard to each director's business and personal activities and relationships as they may relate to us and our management, including the beneficial ownership of our capital stock by each non-employee director and the transactions involving them described in "Certain Relationships and Related Party Transactions."

In March 2015, we established standing nominating, compensation and audit committees and adopted charters setting forth the powers and responsibilities of such committees. Prior to that time, our full board of directors performed the functions these committees would have performed. We did not believe it was necessary for our board of directors to establish such committees until recently because the volume of matters that came before our board of directors for consideration permitted the directors to give sufficient time and attention to such matters and to be involved in all related decisionmaking. Additionally, because our common stock is not listed for trading on a national securities exchange, such exchange rules did not require us to have such committees.

We have made each of our committee charters available on our website at www.BioPharmX.com.

Our audit committee is comprised of Mr. Hubbard and Mr. Morlock. Mr. Hubbard is the chairman of our audit committee. The composition of our audit committee meets the requirements for independence under the current NYSE MKT and SEC rules and regulations. Each member of our audit committee is financially literate. In addition, our board of directors has determined that Mr. Hubbard is an "audit committee financial expert" as defined in Item 407(d)(5)(ii) of Regulation S-K promulgated under the Securities Act. This designation does not impose on him any duties, obligations or liabilities that are greater than are generally imposed on members of our audit committee and our board of directors. Our audit committee is directly responsible for, among other things:

Our compensation committee is comprised of Mr. Hubbard and Mr. Morlock. Mr. Morlock is the chairman of our compensation committee. Each member of this committee is a non-employee director, as defined by Rule 16b-3 promulgated under the Exchange Act, and an outside director, as defined pursuant to Section 162(m) of the Code, and meets the requirements for independence under the current NYSE MKT listing standards and SEC rules and regulations. Our compensation committee is responsible for, among other things:

Our nominating and governance committee is comprised of Mr. Hubbard and Mr. Morlock. Mr. Morlock is the chairman of our nominating and governance committee. Each member of the Committee meets the requirements for independence under the current NYSE MKT listing standards. Our nominating and governance committee is responsible for, among other things:

In March 2015, we adopted a code of ethics that applies to all of our directors, officers and employees, including our principal executive officer, principal financial officer and principal accounting officer. The new code addresses, among other things, honesty and ethical conduct, conflicts of interest, compliance with laws, regulations and policies, including disclosure requirements under the federal securities laws, confidentiality, trading on inside information and reporting of violations of the code.

Our board of directors recognizes that the leadership structure and combination or separation of the Chief Executive Officer and chairman roles is driven by our needs at any point in time. Currently, Mr. Pekarsky serves as our Chief Executive Officer and the Chairman of our Board, and Ms. Krammer serves as our President. We have no policy requiring the combination or separation of leadership roles and our governing documents do not mandate a particular structure. This has allowed, and will continue to allow, our board of directors the flexibility to establish the most appropriate structure for our company at any given time.

In 2014, we did not pay any fees to, reimburse any expense of, make any equity awards or non-equity awards to, or pay any other compensation to any of our non-employee directors other than to KIP in connection with Ping Wang's services as a director. On November 10, 2014, in connection with Ping Wang's appointment to our board of directors, we issued to KIP 290,000 shares of our common stock, of which 96,667 shares vested immediately on issuance and 193,333 shares will vest upon completion of a milestone in accordance with the terms of a subscription agreement entered into between us and KIP.

The compensation received by each of Mr. Pekarsky, Ms. Krammer and Dr. Chan as our employees is shown below in "Executive Compensation—Summary Compensation Table."

In April 2015, our board of directors adopted a non-employee director compensation policy that provides for a quarterly cash retainer fee of $5,000 to non-employee directors acting as chairpersons of committees of the board of directors. Beginning in the second quarter of fiscal 2015, Mr. Morlock and Mr. Hubbard began receiving quarterly cash compensation in accordance with this policy.

In addition, in April 2015 our board of directors granted each of Mr. Hubbard and Mr. Morlock options to purchase 50,000 shares of our common stock at an exercise price of $3.00 per share that will vest monthly over a two-year period. Mr. Hubbard's option began vesting on February 2, 2015 and Mr. Morlock's option began vesting on March 26, 2015.

Non-employee directors receive no other form of remuneration, perquisites or benefits, but may be reimbursed for their reasonable travel expenses incurred in attending board and committee meetings.

The following is a summary of the compensation we paid to each of James R. Pekarsky, Anja Krammer and Kin F. Chan, PhD, collectively our Named Executive Officers, for the one-month period ended January 31, 2015 and the years ended December 31, 2014 and 2013 (in thousands).

Name and Principal Position

James R. Pekarsky(2)	2015	*	21	21
CEO, CFO, Chairman of the board of directors;	2014		250	250
CEO and director of BioPharmX, Inc.	2013		—	—
Anja Krammer(3)	2015	*	21	21
President and director;	2014		250	250
President and director of BioPharmX, Inc.	2013		—	—
Kin F. Chan, PhD(4)	2015	*	19	19
Executive Vice President of Research & Development	2014		197	197
	2013		—	—
Kade Thompson(5)	2015	*	—	—
CEO, CFO, director of Thompson Designs, Inc.	2014		—	—
	2013		—	—

*: Represents the one-month transition period ended January 31, 2015 with the transition period salary pro-rated based on the respective officer's annual salary.
(1): Amounts set forth in this column with respect to fiscal 2014 and the one-month period ended January 31, 2015 represent salary earned during fiscal 2014 and the one-month period ended January 31, 2015, respectively.
(2): Mr. Pekarsky was appointed as our Chief Executive Officer, Chief Financial Officer, Treasurer and Chairman on January 21, 2014. Mr. Pekarsky has been the Chief Executive Officer, Treasurer and a director of BioPharmX, Inc. since its inception. Mr. Pekarsky deferred a portion of his salary in fiscal 2014 and in the one-month period ended January 31, 2015.
(3): Ms. Krammer was appointed as a director, President and Secretary on January 21, 2014. Ms. Krammer has been the President, Secretary and a director of BioPharmX, Inc. since its inception. Ms. Krammer deferred a portion of her salary in fiscal 2014 and in the one-month period ended January 31, 2015.
(4): Dr. Chan was hired on February 17, 2014 as our Executive Vice President of Research & Development. Dr. Chan deferred a portion of his salary in fiscal 2014 and in the one-month period ended January 31, 2015.
(5): Mr. Thompson resigned as Thompson Designs, Inc.'s sole director, Chief Executive Officer, President, Treasurer and Secretary on January 21, 2014, and received no compensation during the one-month period ended January 31, 2015 or the years ended December 31, 2014 and 2013.

On January 21, 2014, we entered into an employment agreement with Mr. Pekarsky, pursuant to which Mr. Pekarsky is employed as our Chief Executive Officer and Chief Financial Officer for a term

of four years with a one-year automatic renewal term. Mr. Pekarsky's employment agreement terminates immediately in the event of his death or disability or, in the event either we or Mr. Pekarsky delivers written notice of termination to the other party, on the fifteenth day following delivery of such notice of termination. In addition, we may immediately terminate Mr. Pekarsky's employment agreement in the event Mr. Pekarsky breaches such agreement or upon the occurrence of an event that would constitute cause (as defined in his employment agreement). Mr. Pekarsky's employment agreement provides for a base salary of $250,000 per year and an annual bonus if performance targets are met, which determination will be made at the discretion of the board of directors. Mr. Pekarsky's employment agreement also provides that Mr. Pekarsky will be subject to non-disclosure, non-competition and non-solicitation covenants for specified periods following the termination of his employment with us.

If we terminate Mr. Pekarsky's employment without cause (as defined in his employment agreement) or if Mr. Pekarsky resigns for good reason (as defined in his employment agreement) within 12 months of a change in control (as defined in his employment agreement) and he delivers a customary release of claims, he would be entitled to: (i) an amount equal to four times his annual compensation; (ii) a continuation of company-paid health and group-term life insurance benefits applicable to him as of the change of control (or provision of benefits equivalent thereto) for 24 months; and (iii) 100% acceleration of his then unvested options, restricted stock awards, performance shares, stock appreciation rights, and, subject to limitations imposed by the applicable award agreement and Section 409A of the Code, restricted stock units, performance-based restricted stock units and long-term cash incentives.

On January 21, 2014, we entered into an employment agreement with Ms. Krammer, pursuant to which Ms. Krammer is employed as our President for a term of four years with a one-year automatic renewal term. Ms. Krammer's employment agreement terminates immediately in the event of her death or disability or, in the event either we or Ms. Krammer delivers written notice of termination to the other party, on the fifteenth day following delivery of such notice of termination. In addition, we may immediately terminate Ms. Krammer's employment agreement in the event Ms. Krammer breaches such agreement or upon the occurrence of an event that would constitute cause (as defined in her employment agreement). Ms. Krammer's employment agreement provides for a base salary of $250,000 per year and an annual bonus if performance targets are met, which determination will be made at the discretion of the board of directors. Ms. Krammer's employment agreement also provides that Ms. Krammer will be subject to non-disclosure, non-competition and non-solicitation covenants for specified periods following the termination of her employment with us.

If we terminate Ms. Krammer's employment without cause (as defined in her employment agreement) or if Ms. Krammer resigns for good reason (as defined in her employment agreement) within 12 months of a change in control (as defined in her employment agreement) and she delivers a customary release of claims, she would be entitled to: (i) an amount equal to four times her annual compensation; (ii) a continuation of company-paid health and group-term life insurance benefits applicable to her as of the change of control (or provision of benefits equivalent thereto) for 24 months; and (iii) 100% acceleration of her then unvested options, restricted stock awards, performance shares, stock appreciation rights, and, subject to limitations imposed by the applicable award agreement and Section 409A of the Code, restricted stock units, performance-based restricted stock units and long-term cash incentives.

On February 17, 2014 we entered into an Employment Agreement with Dr. Chan, pursuant to which Dr. Chan is employed as Executive Vice President of Research & Development for a term of

four years with a one-year automatic renewal term. Dr. Chan's employment agreement terminates immediately in the event of his death or disability or, in the event either we or Dr. Chan delivers written notice of termination to the other party, on the fifteenth day following delivery of such notice of termination. In addition, we may immediately terminate Dr. Chan's employment agreement in the event Dr. Chan breaches such agreement or upon the occurrence of an event that would constitute cause (as defined in his employment agreement). Dr. Chan's employment agreement provides for a base salary of $225,000 per year and an annual bonus if performance targets are met, which determination will be made at the discretion of the board of directors. Dr. Chan's employment agreement also provides that Dr. Chan will be subject to non-disclosure, non-competition and non-solicitation covenants for specified periods following the termination of his employment with us.

If we terminate Dr. Chan's employment without cause (as defined in his employment agreement) or if Dr. Chan resigns for good reason (as defined in his employment agreement) within 12 months of a change in control (as defined in his employment agreement) and he delivers a customary release of claims, he would be entitled to: (i) an amount equal to two times his annual compensation; (ii) a continuation of company-paid health and group-term life insurance benefits applicable to him as of the change of control (or provision of benefits equivalent thereto) for 18 months; and (iii) 100% acceleration of his then unvested options, restricted stock awards, performance shares, stock appreciation rights, and, subject to limitations imposed by the applicable award agreement and Section 409A of the Code, restricted stock units, performance-based restricted stock units and long-term cash incentives.

We have no plans that provide for the payment of retirement benefits, or benefits that will be paid primarily following retirement, including, but not limited to, tax qualified defined benefit plans, supplemental executive retirement plans, tax qualified defined contribution plans and non-qualified defined contribution plans.

The Named Executive Officers, which is defined under Item 402 of Regulation S-K as our principal executive officer and our next two most highly paid executive officers as of the end of the most recent fiscal year, are eligible to receive certain severance payments and benefits in connection with a termination of employment following a change in control of our company. Although we have entered into a written agreement with each of the Named Executive Officers to provide such severance payments and benefits, we, or an acquirer, may mutually agree with the Named Executive Officers to provide payments and benefits on terms that vary from those currently contemplated.

In the event of a qualifying termination of employment within 12 months of a change of control, the Named Executive Officers will be eligible to receive the payments and benefits as described above in "Employment Agreements." The receipt of any termination-based payments or benefits is subject to the Named Executive Officer executing (and not subsequently revoking) a waiver and release of claims in favor of our company or successor company.

Payments to each of Mr. Pekarsky and Ms. Krammer may be reduced in the event such payments are considered parachute payments within the meaning of Section 280G of the Code or in the event such payments trigger excise tax under Section 4999 of the Code.

As of January 31, 2015, none of our Named Executive Officers had outstanding stock options or any other equity awards.

On January 23, 2014, we adopted our 2014 Plan, which was subsequently approved by Company stockholders.

The 2014 Plan will terminate in 2024, unless sooner terminated by our board of directors. The purpose of the 2014 Plan is to attract, retain and motivate selected employees, consultants and directors through the granting of stock-based compensation awards.

The 2014 Plan provides for the grant of incentive stock options, nonstatutory stock options, restricted stock awards, stock bonus awards and any other type of arrangement not inconsistent with the terms of the 2014 Plan and related to the issuance of (i) common stock, (ii) an option or stock appreciation right or (iii) any other security with the value derived from the value of the shares, which we refer to collectively as the stock awards. To date, only stock options have been granted under the 2014 Plan. These options, which were previously issued under the BioPharmX, Inc. 2011 Equity Incentive Plan, were substituted, and options under the 2014 Plan were issued to replace all such substituted BioPharmX, Inc. options.

Incentive stock options may be granted only to employees, subject to certain limitations described below. All other awards may be granted to employees, including officers, as well as directors and consultants.

The principal features of the 2014 Plan are summarized below. This summary is qualified in its entirety by reference to the text of the 2014 Plan, which is filed as an exhibit to the registration statement of which this prospectus is a part.

We initially reserved 2,700,000 shares of common stock under the 2014 Plan. On November 7, 2014, we increased the stock available under the 2014 Plan to 4,500,000 shares of common stock, but in no event may the total number of shares of common stock issuable upon exercise of all outstanding awards under the 2014 Plan exceed 30% of the issued and outstanding shares of our common stock, unless a higher percentage is approved by at least two-thirds of the outstanding shares entitled to vote. The following shares will again be available for grant and issuance under our 2014 Plan:

Our 2014 Plan will be administered by our compensation committee, all of the members of which are outside directors as defined under applicable federal tax laws, or by our board of directors acting in place of our compensation committee. The compensation committee will have the authority to construe and interpret our 2014 Plan, grant awards and make all other determinations necessary or advisable for the administration of the plan.

Incentive and nonstatutory stock options are granted pursuant to incentive and nonstatutory stock option agreements that we have adopted. The compensation committee determines the exercise price for a stock option, within the terms and conditions of the 2014 Plan. The exercise price of an incentive stock option cannot be less than 100% of the fair market value of our common stock on the date of grant, except where a higher exercise price is required in the case of certain incentive stock options, as described below. Nonstatutory stock options will have an exercise price equal to at least 85% of the fair market value of our common stock on the date of grant, except where a higher exercise price is required in the case of certain nonstatutory stock options, as described below.

Generally, our board of directors has granted options under the 2014 Plan that vest over a four-year period. Options may vest based on time or achievement of performance conditions, but are subject to minimum vesting conditions, as described below. Our compensation committee may provide for options to be exercised only as they vest or to be immediately exercisable with any shares issued on exercise being subject to our right of repurchase that lapses as the shares vest. The maximum term of options granted under our 2014 Plan is 10 years. The compensation committee determines the term of stock options granted under the 2014 Plan, up to a maximum of 10 years, except in the case of certain incentive stock options, as described below. Unless the terms of an optionholder's stock option agreement provide otherwise, if an optionholder's relationship with us, or any of our related entities, ceases for any reason other than for cause, disability or death, the optionholder may exercise any vested options for a period of not less than 30 days following the cessation of service. If an optionholder's service relationship with us is terminated for cause, then the optionholder's stock option agreement may provide that the option terminates immediately. If an optionholder's service relationship with us or any of our related entities ceases due to disability or death, the optionholder, optionholder's legal representative or a beneficiary may exercise any vested options for a period of 12 months in the event of disability or death. The option term may be extended in the event that exercise of the option following termination of service is prohibited by applicable securities laws. In no event, however, may an option be exercised beyond the expiration of its maximum term.

Acceptable consideration for the purchase of common stock issued upon the exercise of a stock option will be determined by the compensation committee and may include (a) cash or check, (b) delivery of a promissory note with terms to be determined by the compensation committee, (c) the tender of common stock previously owned by the optionholder, (d) a broker-assisted cashless exercise or (e) or any combination of the foregoing methods of payment.

Options generally are not transferable except by will and the laws of descent and distribution. An optionholder may, however, designate a beneficiary who may exercise the option following the optionholder's death.

Incentive stock options may be granted only to our employees. The aggregate fair market value, determined at the time of grant, of shares of our common stock with respect to incentive stock options that are exercisable for the first time by an optionholder during any calendar year under all of our stock plans may not exceed $100,000. No incentive stock option may be granted to any person who, at the time of the grant, owns or is deemed to own stock comprising more than 10% of our total combined voting power or that of any of our affiliates unless (a) the option exercise price is at least 110% of the fair market value of the stock subject to the option on the date of grant and (b) the term of the incentive stock option does not exceed five years from the date of grant. No nonstatutory stock option may be granted to any person who, at the time of the grant, owns or is deemed to own stock comprising more than 10% of our total combined voting power or that of any of our affiliates unless the option exercise price is at least 110% of the fair market value of the stock subject to the option on

the date of grant. The vesting of stock options under the 2014 Plan will be determined by the compensation committee, but will in no case be a rate of less than 20% per year over five years from the date the stock option is granted.

A restricted stock award is an offer by us to sell shares of our common stock subject to restrictions. The price, if any, of a restricted stock award will be determined by our compensation committee. Restricted stock awards will have a purchase price equal to at least 85% of the fair market value of our common stock on the date of grant, except where a higher purchase price is required, as described below. Restricted stock awards may be granted in consideration for cash or check or other consideration set forth in the participant's individual restricted stock award agreement. Shares of common stock acquired under a restricted stock award may, but need not, be subject to a share repurchase option or forfeiture restriction in our favor in accordance with a vesting schedule to be determined by the compensation committee. Rights to acquire shares under a restricted stock award generally are not transferable except by will and the laws of descent and distribution. Except as otherwise provided in the applicable award agreement, restricted stock awards that have not vested will be forfeited or subject to repurchase upon the participant's cessation of continuous service for any reason.

No restricted stock awards may be granted to any person who, at the time of the grant, owns or is deemed to own stock comprising more than 10% of our total combined voting power or that of any of our affiliates unless the purchase price is at least 110% of the fair market value of the stock subject to the restricted stock award on the date of grant. If the restricted stock award is subject to a right of repurchase in favor of us, the right to repurchase shall lapse at the rate of at least 20% of the shares subject to the restricted stock award per year over five years from the date the award is granted.

Our compensation committee may grant other awards based in whole or in part by reference to our stock, including, but not limited to, stock bonus awards and stock appreciation rights. The compensation committee will set the number of shares under the award and all other terms and conditions of such awards.

The number of shares covered by each outstanding award, and the number of shares which have been authorized for issuance under the 2014 Plan but as to which no awards have yet been granted or which have been returned to the 2014 Plan, the exercise or purchase price of each such outstanding award as well as any other terms that the compensation committee determines require adjustment shall be proportionately adjusted for (a) any increase or decrease in the number of issued shares resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the shares, (b) any other increase or decrease in the number of issued shares effected without receipt of consideration by us or (c) as the compensation committee may determine in its discretion, any other transaction with respect to common stock to which Section 424(a) of the Code applies. Such adjustment shall be made by the compensation committee and its determination shall be final, binding and conclusive.

The 2014 Plan provides that, in the event of a sale, transfer or other disposition of all or substantially all of the assets of us or specified types of mergers or consolidations, each, a corporate transaction, outstanding awards under our 2014 Plan will terminate upon the consummation of the corporate transaction unless they are assumed or substituted. All outstanding awards under our 2014 Plan will become fully vested and exercisable immediately prior to the specified effective date of the corporate transaction, unless the award is assumed by our parent or successor corporation. For the purposes of accelerating the vesting in the event of a corporate transaction (but not for purposes of termination of such awards), the award shall be considered assumed if, in connection with the corporate transaction, the award is replaced with a comparable award with respect to shares of capital stock of the successor corporation or parent or is replaced with a cash incentive program of the successor corporation or parent which preserves the compensation element of such award existing at the time of the corporate transaction and provides for subsequent payout in accordance with the same vesting schedule applicable to such award.

Our board of directors has the authority to suspend or terminate the 2014 Plan at any time provided that such action does not impair the existing rights of any participant.

We sponsor a retirement savings plan intended to qualify for favorable tax treatment under Section 401(a) of the Code, containing a cash or deferred feature that is intended to meet the requirements of Section 401(k) of the Code. U.S. employees are generally eligible to participate in the plan on the first day of the calendar month following the employees' date of hire. Participants may

make pre-tax and certain after-tax (Roth) deferral contributions to the plan from their eligible earnings up to the statutorily prescribed annual limit on pre-tax elective deferrals under the Code. Participants who are 50 years of age or older may contribute additional amounts based on the statutory limits for catch-up contributions. Participant contributions are held in trust as required by law. No minimum benefit is provided under the plan. An employee's interest in his or her pre-tax deferrals is 100% vested when contributed. The plan permits all eligible plan participants to contribute between 1% and 90% of eligible compensation, on a pre-tax or Roth basis, into their accounts.

Our certificate of incorporation contains provisions that limit the liability of our directors for monetary damages to the fullest extent permitted by the DGCL. Consequently, our directors will not be personally liable to us or our stockholders for monetary damages for any breach of fiduciary duties as directors, except liability for:

Our certificate of incorporation requires us to indemnify our directors, officers, employees or agents to the maximum extent permitted by Section 145 of the DGCL.

We have entered, and intend to continue to enter, into separate indemnification agreements with our directors and executive officers, in addition to the indemnification provided for directors in our certificate of incorporation. These agreements, among other things, require us to indemnify our directors and executive officers for certain expenses, including attorneys' fees, judgments, fines and settlement amounts actually incurred by these individuals in any action, suit or proceeding arising out of their service to us or any of our subsidiaries or any other company or enterprise to which these individuals provide services at our request. Subject to certain limitations, our indemnification agreements also require us to advance expenses incurred by our directors and executive officers for the investigation, settlement, appeal or defense of any action for which indemnification is required.

We believe that these indemnification provisions and agreements are necessary to attract and retain qualified directors, officers and key employees. We also maintain directors' and officers' liability insurance.

The limitation of liability and indemnification provisions contained in our certificate of incorporation and indemnification agreements may discourage stockholders from bringing a lawsuit against our directors and officers for breach of their fiduciary duty. They may also reduce the likelihood of derivative litigation against our directors and officers, even though an action, if successful, might benefit us and other stockholders. Further, a stockholder's investment may be adversely affected to the extent that we pay the costs of settlement and damage awards against directors and officers as required by these indemnification provisions.

At present, there is no pending litigation or proceeding involving any of our directors or executive officers as to which indemnification is required, and we are not aware of any threatened litigation or proceeding that may result in a claim for indemnification.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, executive officers or persons controlling us, we have been informed that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

We describe below transactions and series of similar transactions, since January 1, 2013, to which we were a party or will be a party, in which:

Other than as described below, there have not been, nor are there any currently proposed, transactions or series of similar transactions to which we have been or will be a party other than compensation arrangements, which are described where required under "Executive Compensation."

Our policy is that a contract or transaction either between us and a director, or between a director and another company in which he is financially interested is not necessarily void or voidable if the relationship or interest is disclosed or known to the board of directors and the stockholders are entitled to vote on the issue, or if it is fair and reasonable to our company.

On December 21, 2012, we borrowed $3,000 from Kade Thompson, under the terms of a promissory note due December 21, 2014. The note bore interest of 5% per annum payable at maturity and was cancelled in connection with the Share Exchange.

Since our inception, our founding executives, Mr. Pekarsky, Ms. Krammer and Dr. Chan, have made advances to cover short-term operating expenses. These advances are non-interest bearing. As of January 31, 2015, December 31, 2014 and December 31, 2013 our related party payables were $218,000, $199,000 and $125,000, respectively, as noted in the table below.

On January 23, 2014, we entered into and consummated transactions pursuant to a share exchange agreement with BioPharmX, Inc., and the stockholders of BioPharmX, Inc. (including Mr. Pekarsky, Ms. Krammer and Dr. Chan), whereby we issued to the stockholders of BioPharmX, Inc. an aggregate of 7,025,000 shares of our common stock in exchange for 100% of the shares of BioPharmX, Inc. The shares of our common stock received by the stockholders of BioPharmX, Inc. in the transaction constituted approximately 77.8% of our then issued and outstanding common stock, after giving effect to the issuance of shares pursuant to the share exchange agreement.

From April 2014 through November 2014, we issued and sold to accredited investors an aggregate of 4,207,987 shares of Series A preferred stock, at a purchase price of $1.85 per share, for aggregate consideration of $7.8 million pursuant to subscription agreements and issued warrants with an initial exercise price of $3.70 per share for an aggregate of 2,042,589 shares of common stock.

In connection with the Series A preferred stock financing, (i) KIP acquired 540,541 shares of Series A preferred stock from us for aggregate consideration of $1.0 million and warrants exercisable for an aggregate of 270,270 shares of common stock at $3.70 per share, (ii) Dong Ping Hong acquired 540,541 shares of Series A preferred stock from us for aggregate consideration of $1.0 million and warrants exercisable for an aggregate of 270,270 shares of common stock at $3.70 per share and (iii) Zheng Xiao acquired 540,540 shares of Series A preferred stock from us for aggregate consideration of $1.0 million and warrants exercisable for an aggregate of 270,270 shares of common stock at $3.70 per share. KIP, Dong Ping Hong and Zheng Xiao each hold more than 5% of our capital stock. Ping Wang, one of our directors, is an affiliate of KIP.

Investors also received registration rights pursuant to the subscription agreements. For a description of these rights, see "Description of Capital Stock—Registration Rights."

On November 10, 2014 we awarded restricted stock to KIP. Pursuant to the award, we issued to KIP 290,000 shares of common stock with 96,667 shares vesting immediately and the remaining 193,333 shares vesting on the earlier of our achieving $2 million in revenues from VI₂OLET or upon a "qualified listing," defined as uplisting to NYSE or NASDAQ within three years from the issuance of shares of Series A preferred stock, in exchange for Mr. Wang's, a principal of KIP, services as a director.

We have entered into investor rights agreements with certain holders of our Series A preferred stock. These stockholders are entitled to rights with respect to the registration of their shares in connection with a public offering. The investor rights agreements will terminate upon receipt of approval of a qualified listing. For a description of these registration rights, see "Description of Capital Stock—Registration Rights."

We are party to a voting agreement under which Mr. Pekarsky and Ms. Krammer have agreed to vote in a certain way on certain matters, including with respect to a merger or sale of us, or a sale of substantially all of our assets. Upon receipt of approval of a qualified listing, the voting agreement will terminate and Mr. Pekarsky and Ms. Krammer will no longer be required to vote in accordance with the agreement.

We have entered into indemnification agreements with each of our directors and executive officers. The indemnification agreements require us to indemnify our directors to the fullest extent permitted by Delaware law. For more information regarding these agreements, see "Executive Compensation—Limitations on Liability and Indemnification Matters."

Except for the above transactions or as otherwise set forth in this prospectus or in any reports filed by us with the SEC, we were not a party to any transaction (where the amount involved exceeded the lesser of $120,000 or 1% of the average of our assets for the last two fiscal years) in which a director, executive officer, holder of more than five percent of our common stock, or any member of the immediate family of any such person have or will have a direct or indirect material interest and no such transactions are currently proposed. We are currently not a subsidiary of any company.

We have entered into employment agreements with Mr. Pekarsky, Ms. Krammer and Dr. Chan. For a description of these agreements, see "Executive Compensation—Employment Agreements."

Pursuant to a subscription agreement dated October 24, 2014, KIP will purchase 1,081,081 shares of our common stock for an aggregate purchase price of $2.0 million at $1.85 per share, in a private placement that will close within 15 business days of this offering. In addition, upon the closing of the private placement, 193,333 shares of our common stock granted to KIP in consideration for Ping Wang's services as a director on board of directors will immediately vest and be issued to KIP. The shares that will be issued in the KIP private placement will not be registered under the Securities Act. As of April 30, 2015, KIP beneficially owned approximately 6.61% of our common stock and immediately following this offering and the KIP private placement, KIP will beneficially own approximately 10.24% of our common stock. The issuance of these shares to KIP will not be registered in this offering.

The following table sets forth certain information with respect to the beneficial ownership of our common stock at April 30, 2015, and as adjusted to reflect the sale of common stock in this offering and the KIP private placement, for:

We have determined beneficial ownership in accordance with the rules of the SEC, and the information is not necessarily indicative of beneficial ownership for any other purpose. Except as indicated by the footnotes below, we believe, based on information furnished to us, that the persons and entities named in the table below have sole voting and sole investment power with respect to all shares of common stock that they beneficially owned, subject to applicable community property laws.

Applicable percentage ownership is based on 16,535,175 shares of common stock outstanding as of April 30, 2015 and assumes the conversion of all outstanding shares of Series A preferred stock into an aggregate of 4,207,987 shares of our common stock, the issuance of 109,968 shares of common stock in lieu of payment in cash for accrued and unpaid interest on the Series A preferred stock, the issuance of 23,532 additional shares of our common stock, based on an assumed public offering price of $3.00 per share, which is the midpoint of the price range listed on the cover page of this prospectus, pursuant to the warrant exercise agreements and the issuance of 166,694 shares of our common stock pursuant to the conversion of a convertible note, together with accrued interest thereon, that will occur immediately prior to the closing of the offering, based on an assumed conversion price of $3.00 per share, which is the midpoint of the price range listed on the cover page of this prospectus.

In computing the number of shares of common stock beneficially owned by a person and the percentage ownership of that person, we deemed to be outstanding all shares of common stock subject to options and warrants held by that person or entity that are currently exercisable or that will become exercisable within 60 days of April 30, 2015. We did not deem these shares outstanding, however, for the purpose of computing the percentage ownership of any other person. Unless otherwise indicated,

the address of each beneficial owner listed in the table below is c/o BioPharmX Corp., 1098 Hamilton Court, Menlo Park, California 94025.

	Shares Beneficially Owned Prior to this Offering and the KIP Private Placement						Shares Beneficially Owned After this Offering and the KIP Private Placement

Name of Beneficial Owner	Number			Percentage			Number			Percentage
Directors and Named Executive Officers:
James R. Pekarsky(1)		2,500,000			15.12	%		2,500,000			11.82	%
Anja Krammer		2,500,000			15.12	%		2,500,000			11.82	%
Kin F. Chan, PhD		1,200,000			7.26	%		1,200,000			5.68	%
Ping Wang		—			—			—			—
Michael Hubbard		—			—			—			—
Stephen Morlock(2)		219,119			1.33	%		219,119			1.04	%
All officers and directors as a group (6 persons named above)		6,419,119	(3)		38.82	%		6,419,119			30.36	%
5% or Greater Stockholders:
Leonid Frenkel(4)		1,122,385			6.65	%		1,122,385			5.22	%
KIP		1,110,623	(5)		6.53	%		2,191,704	(6)		10.24	%
Dong Ping Hong(7)		905,859			5.43	%		905,859			4.26	%

(1): Consists of 2,500,000 shares of our common stock held by The James Pekarsky Trust, of which James R. Pekarsky is the sole beneficiary and trustee.
(2): Consists of 219,119 shares of common stock, of which 320 shares were issued in lieu of payment in cash for accrued and unpaid interest on the Series A preferred stock and 417 shares were issued pursuant to the warrant exercise agreements (all of which are held by Stephen W. Morlock and Karen R. Morlock TIEE UPT dated 04/21/03, of which Mr. Morlock is a co-trustee and co-beneficiary).
(3): Consists of 6,419,119 shares of our common stock held by all directors and executive officers as a group, of which 320 shares were issued in lieu of payment in cash for accrued and unpaid interest on the Series A preferred stock and 417 shares were issued pursuant to the warrant exercise agreements.
(4): Consists of (i) 435,267 shares of common stock held by Periscope Partners L.P., of which Leonid Frenkel is a general partner and over which Mr. Frenkel has voting and dispositive power, (ii) 343,559 shares of common stock held by Mr. Frenkel and (iii) 343,559 shares of common stock issuable to Mr. Frenkel upon exercise of a warrant that could be exercised within 60 days of April 30, 2015. On June 4, 2015, Mr. Frenkel partially exercised his warrant to purchase 54,054 shares of our common stock.
(5): Consists of (i) 647,020 shares of our common stock held by KIP, of which 9,812 shares were issued in lieu of payment in cash for accrued and unpaid interest on the Series A preferred stock, (ii) 193,333 restricted shares of our common stock that may vest within 60 days of April 30, 2015 and (iii) 270,270 shares of our common stock issuable to KIP upon exercise of a warrant that could be exercised within 60 days of April 30, 2015. Although Ping Wang is a Principal of Korea Investment Partners Co., Ltd., which manages KIP, Mr. Wang does not have voting and dispositive power over the shares issued to KIP.
(6): Consists of 2,191,704 shares of our common stock held by KIP, of which 1,274,414 shares were issued in connection with the KIP private placement.

Upon the completion of this offering and our receipt of approval to list on the NYSE MKT, our authorized capital stock will consist of 90,000,000 shares of common stock, $0.001 par value per share, and 10,000,000 shares of undesignated preferred stock, $0.001 par value per share. The following description summarizes the most important terms of our capital stock. Because it is only a summary, it does not contain all the information that may be important to you. For a complete description, you should refer to our certificate of incorporation and bylaws, which are included as exhibits to the registration statement of which this prospectus forms a part, and to the applicable provisions of Delaware law.

Pursuant to the provisions of our Amended and Restated Designations, Preferences and Rights of Series A Preferred Stock, or Series A Designation, all of the outstanding shares of Series A preferred stock will automatically convert into common stock upon our receipt of approval to list on the NYSE MKT. Assuming the effectiveness of this conversion as of April 30, 2015, the issuance of 109,968 shares of common stock in lieu of payment in cash for accrued and unpaid interest on the Series A preferred stock, the issuance of 23,532 additional shares of our common stock, based on an assumed public offering price of $3.00 per share, which is the midpoint of the price range listed on the cover page of this prospectus, pursuant to the warrant exercise agreements, and the issuance of 166,694 shares of our common stock pursuant to the conversion of a convertible note, together with accrued interest thereon, that will occur immediately prior to the closing of the offering, based on an assumed conversion price of $3.00 per share, which is the midpoint of the price range listed on the cover page of this prospectus, upon the closing of this offering, there were 16,535,175 shares of our common stock issued, held by 57 stockholders of record. Our board of directors is authorized, without stockholder approval, to issue additional shares of our capital stock.

Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of our common stock are entitled to receive dividends out of funds legally available if our board of directors, in its discretion, determines to issue dividends and then only at the times and in the amounts that our board of directors may determine. See "Dividend Policy" above.

Holders of our common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders. We have not provided for cumulative voting for any matter in our certificate of incorporation. Accordingly, pursuant to our certificate of incorporation, holders of a majority of the shares of our common stock will be able to elect all of our directors.

Our common stock is not entitled to preemptive rights, and is not subject to conversion, redemption or sinking fund provisions.

Upon our liquidation, dissolution or winding-up, the assets legally available for distribution to our stockholders would be distributable ratably among the holders of our common stock and any participating preferred stock outstanding at that time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights of and the payment of liquidation preferences, if any, on any outstanding shares of preferred stock.

Pursuant to the provisions of the Series A Designation, all of our outstanding Series A preferred stock will automatically convert into common stock, with such conversion to be effective upon our receipt of approval to list on the NYSE MKT. As a result, each currently outstanding share of Series A preferred stock will be converted into common stock. Our Series A preferred stock will convert at a ratio of one share of common stock for each share of Series A preferred stock.

Our board of directors is authorized, subject to limitations prescribed by Delaware law, to issue preferred stock in one or more series, to establish from time to time the number of shares to be included in each series and to fix the designation, powers, preferences and rights of the shares of each series and any of their qualifications, limitations or restrictions, in each case without further vote or action by our stockholders. Our board of directors can also increase or decrease the number of shares of any series of preferred stock, but not below the number of shares of that series then outstanding, without any further vote or action by our stockholders. Our board of directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of our common stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change in control of our company and might adversely affect the market price of our common stock and the voting and other rights of the holders of our common stock. We have no current plan to issue any additional shares of preferred stock.

As of April 30, 2015, we had outstanding options to purchase an aggregate 2,752,961 shares of our common stock, with a weighted-average exercise price of $1.14 per share.

As of April 30, 2015, we had outstanding warrants to purchase an aggregate 2,321,009 shares of our common stock, with a weighted-average exercise price of $3.20 per share, not including certain warrants to purchase common stock that were exercised according to the warrant exercise agreements and not including the exercise of a warrant in June 2015 to purchase 54,054 shares of our common stock.

Pursuant to the terms of subscription agreements for our Series A preferred stock, and the amended warrant exercise agreements, immediately following our approval to list on the NYSE MKT, the holders of 4,772,649 shares of our common stock will be entitled to rights with respect to the registration of these shares under the Securities Act, as described below.

Individuals who purchased at least $500,000 of shares of our Series A preferred stock, or Qualified Subscribers, have preemptive rights with respect to any subsequent securities offering by us, or Subsequent Offering. For twelve months after the closing of a Qualified Subscriber's investment in our

Series A preferred stock, such Qualified Subscriber has the right to purchase on a pro rata basis up to an aggregate of 50% of the securities offered in any Subsequent Offering. Qualified Subscribers also have notice rights with respect to such Subsequent Offerings. Each of the Qualified Subscribers has waived his or her preemptive rights with respect to the offering contemplated by this prospectus, the underwriters' warrants and the KIP private placement. All preemptive rights will expire by November 17, 2015. KIP, a beneficial owner of more than 5% of our outstanding common stock as of April 30, 2015, is a Qualified Subscriber.

If at any time following our approval to list on the NYSE MKT, (a) there is no effective registration statement with respect to common stock underlying our Series A preferred stock and warrants issued in connection with our Series A preferred stock, or Registrable Shares, and (b) not all of the Registrable Shares may be sold without registration pursuant to Rule 144 of the Securities Act, then holders representing more than 50% of the Registrable Shares may demand registration of the Registrable Shares. Within 45 days of such request, we are obligated to use our best efforts to file a registration statement under the Securities Act covering all Registrable Shares that the initiating holders requested to be registered and any additional Registrable Shares requested to be included in such registration by any other holders of Registrable Shares. We are only required to file two registration statements that are declared effective upon exercise of these demand registration rights.

In connection with this offering, pursuant to investor rights agreements, certain holders of Registrable Shares would have been entitled to, and the necessary percentage of holders waived, rights to include their Registrable Shares in this offering. The investor rights agreements will terminate upon receipt of approval to list our stock on the NYSE MKT. See "Certain Relationships and Related Party Transactions—Investor Rights Agreements."

We will pay all expenses associated with the registrations pursuant to the subscription agreements.

The provisions of Delaware law, our certificate of incorporation and our bylaws could have the effect of delaying, deferring or discouraging another person from acquiring control of our company. These provisions, which are summarized below, may have the effect of discouraging takeover bids. They are also designed, in part, to encourage persons seeking to acquire control of us to negotiate first with our board of directors. We believe that the benefits of increased protection of our potential ability to negotiate with an unfriendly or unsolicited acquirer outweigh the disadvantages of discouraging a proposal to acquire us because negotiation of these proposals could result in an improvement of their terms.

We are subject to the provisions of Section 203 of the DGCL regulating corporate takeovers. In general, Section 203 prohibits a publicly-held Delaware corporation from engaging in a business combination with an interested stockholder for a period of three years following the date on which the person became an interested stockholder unless:

Generally, a business combination includes a merger, asset or stock sale, or other transaction or series of transactions together resulting in a financial benefit to the interested stockholder. An interested stockholder is a person who, together with affiliates and associates, owns or, within three years prior to the determination of interested stockholder status, did own 15% or more of a corporation's outstanding voting stock. We expect the existence of this provision to have an anti-takeover effect with respect to transactions our board of directors does not approve in advance. We also anticipate that Section 203 may also discourage attempts that might result in a premium over the market price for the shares of common stock held by stockholders.

Our certificate of incorporation and our bylaws include a number of provisions that could deter hostile takeovers or delay or prevent changes in control of our company, including the following:

Upon the completion of this offering, the transfer agent and registrar for our common stock will be Computershare Trust Company, N.A. The transfer agent's address is 250 Royall St., Canton, MA 20201, and its telephone number is 877-373-6374.

Our common shares are currently quoted on the OTCQB Marketplace under the symbol "BPMX." We have been approved to list our common stock on the NYSE MKT under the symbol "BPMX" upon pricing of this offering.

Upon the closing of this offering, we will have a total of 21,142,923 shares of our common stock outstanding, assuming no exercise of the underwriters' option to purchase additional shares and the sale of 1,081,081 shares (for an aggregate purchase price of $2.0 million at the price of $1.85 per share) of common stock, and vesting and issuance of 193,333 shares of our common stock, in the KIP private placement, based on the 16,535,175 shares of our common stock outstanding as of April 30, 2015. Of these outstanding shares, all of the 3,333,334 shares of common stock sold in this offering will be freely tradable, except that any shares purchased in this offering by our affiliates, as that term is defined in Rule 144 under the Securities Act, could only be sold in compliance with Rule 144.

Of the remaining outstanding 17,809,589 shares of our common stock, including the shares issued in the KIP private placement, 12,438,610 will be deemed "restricted securities" as defined in Rule 144, including shares issued in connection with the conversion of our Series A preferred stock, each of which contain restrictive legends regarding their availability to resell. Restricted securities may be sold in the public market only if they are registered under the Securities Act or if they qualify for an exemption from registration under Rule 144 promulgated under the Securities Act, which rules are summarized below. In addition, security holders who have entered into market standoff agreements with us or lock-up agreements with the underwriters under which they have agreed, subject to specific exceptions, not to sell any of our stock for at least 180 days following the date of this prospectus, as described below. As a result of these agreements and the provisions of our investors rights agreements described above under "Description of Capital Stock—Registration Rights," subject to the provisions of Rule 144, shares will be available for sale in the public market as follows:

All of our directors and officers and certain of our security holders are subject to lock-up agreements or market standoff provisions that prohibit them from offering for sale, selling, contracting to sell, granting any option for the sale of, transferring or otherwise disposing of any shares of our common stock, options or warrants to acquire shares of our common stock or any security or instrument related to our common stock, or entering into any swap, hedge or other arrangement that transfers any of the economic consequences of ownership of our common stock, for a period of 180 days following the date of this prospectus without the prior written consent of CRT Capital. See "Underwriting."

In general, under Rule 144 as currently in effect, once we have been subject to public company reporting requirements for at least 90 days, a person who is not deemed to have been one of our affiliates for purposes of the Securities Act at any time during the 90 days preceding a sale and who has beneficially owned the shares proposed to be sold for at least six months, including the holding period of any prior owner other than our affiliates, is entitled to sell those shares without complying with the manner of sale, volume limitation or notice provisions of Rule 144, subject to compliance with the public information requirements of Rule 144. If such a person has beneficially owned the shares proposed to be sold for at least one year, including the holding period of any prior owner other than our affiliates, then that person would be entitled to sell those shares without complying with any of the requirements of Rule 144.

In general, under Rule 144, as currently in effect, our affiliates or persons selling shares on behalf of our affiliates are entitled to sell upon expiration of the lock-up and market standoff agreements described above, within any three-month period, a number of shares that does not exceed the greater of:

Sales under Rule 144 by our affiliates or persons selling shares on behalf of our affiliates are also subject to certain manner of sale provisions and notice requirements and to the availability of current public information about us.

We have granted demand and piggyback registration rights to certain of our stockholders to sell our common stock. Registration of the sale of these shares under the Securities Act would result in these shares becoming freely tradable without restriction under the Securities Act immediately upon the effectiveness of the registration, except for shares purchased by affiliates. For a further description of these rights, see "Description of Capital Stock—Registration Rights."

On January 26, 2015, we filed a registration statement on Form S-8 under the Securities Act to register 3,732,252 shares of our common stock to be issued or reserved for issuance under our 2014 Plan. For a further description of our 2014 Plan, see "Executive Compensation—Employee Benefit and Stock Plans—2014 Equity Incentive Plan." Shares registered under such registration statement are available for sale in the open market, unless such shares are subject to vesting restrictions with us or the lock-up restrictions described above.

This section summarizes the material U.S. federal income and estate tax considerations relating to the acquisition, ownership and disposition of our common stock by "non-U.S. holders" (as defined below) pursuant to this offering. This summary does not provide a complete analysis of all potential U.S. federal income and estate tax considerations relating thereto. The information provided below is based upon provisions of the Internal Revenue Code of 1986, as amended, or Code, Treasury regulations promulgated thereunder, administrative rulings and judicial decisions currently in effect. These authorities may change at any time, possibly retroactively, or the Internal Revenue Service, or IRS, might interpret the existing authorities differently. In either case, the tax considerations of owning or disposing of our common stock could differ from those described below. As a result, we cannot assure you that the tax consequences described in this discussion will not be challenged by the IRS or will be sustained by a court if challenged by the IRS.

This summary does not address the tax considerations arising under the laws of any non-U.S., state or local jurisdiction, or under U.S. federal gift tax laws. In addition, this discussion does not address tax considerations applicable to an investor's particular circumstances or to investors that may be subject to special tax rules, including, without limitation:

In addition, if a partnership or entity classified as a partnership or other pass-through entity for U.S. federal income tax purposes is a beneficial owner of our common stock, the tax treatment of a partner in the partnership or an owner of the entity will depend upon the status of the partner or other owner and the activities of the partnership or other entity. Accordingly, this summary does not address

tax considerations applicable to partnerships that hold our common stock, and partners in such partnerships should consult their tax advisors.

INVESTORS CONSIDERING THE PURCHASE OF OUR COMMON STOCK SHOULD CONSULT THEIR OWN TAX ADVISORS REGARDING THE APPLICATION OF THE U.S. FEDERAL INCOME AND ESTATE TAX LAWS TO THEIR PARTICULAR SITUATIONS AND THE CONSEQUENCES OF FOREIGN, STATE OR LOCAL LAWS, AND TAX TREATIES.

For purposes of this summary, a "non-U.S. holder" is any beneficial owner of our common stock, other than a partnership, that is not:

If you are a non-U.S. citizen who is an individual, you may, in many cases, be treated as a resident alien, as opposed to a nonresident alien, by virtue of being present in the United States for at least 31 days in the calendar year and for an aggregate of at least 183 days during a three-year period ending in the current calendar year. For these purposes, all the days present in the current year, one-third of the days present in the immediately preceding year, and one-sixth of the days present in the second preceding year are counted. Resident aliens are subject to U.S. federal income tax as if they were U.S. citizens. Such an individual is urged to consult his or her own tax advisor regarding the U.S. federal income tax consequences of the ownership or disposition of our common stock.

We do not expect to declare or make any distributions on our common stock in the foreseeable future. If we do pay make distributions on shares of our common stock, however, such distributions will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Distributions in excess of our current and accumulated earnings and profits will constitute a return of capital that is applied against and reduces, but not below zero, a non-U.S. holder's adjusted tax basis in shares of our common stock. Any remaining excess will be treated as gain realized on the sale or other disposition of our common stock. See "—Sale of Common Stock."

Any dividend paid to a non-U.S. holder on our common stock that is not effectively connected with the non-U.S. holder's conduct of a trade or business in the United States will generally be subject to U.S. withholding tax at a 30% rate. The withholding tax might apply at a reduced rate, however, under the terms of an applicable income tax treaty between the United States and the non-U.S. holder's country of residence. You should consult your tax advisors regarding your entitlement to benefits under a relevant income tax treaty. Generally, in order for us or our paying agent to withhold tax at a lower treaty rate, a non-U.S. holder must certify its entitlement to treaty benefits. A non-U.S. holder generally can meet this certification requirement by providing a Form W-8BEN or Form W-8BEN-E (or any successor of such forms) or appropriate substitute form to us or our paying agent. If the non-U.S. holder holds the stock through a financial institution or other agent acting on

the holder's behalf, the holder will be required to provide appropriate documentation to the agent. The holder's agent will then be required to provide certification to us or our paying agent, either directly or through other intermediaries. If you are eligible for a reduced rate of U.S. federal withholding tax under an income tax treaty, you may obtain a refund or credit of any excess amounts withheld by filing an appropriate claim for a refund with the IRS in a timely manner.

Dividends received by a non-U.S. holder that are effectively connected with a U.S. trade or business conducted by the non-U.S. holder, and if required by an applicable income tax treaty between the United States and the non-U.S. holder's country of residence, are attributable to a permanent establishment maintained by the non-U.S. holder in the United States, are not subject to U.S. withholding tax. To obtain this exemption, a non-U.S. holder must provide us or our paying agent with an IRS Form W-8ECI (or successor form) properly certifying such exemption. Such effectively connected dividends, although not subject to withholding tax, are taxed at the same graduated income tax rates applicable to U.S. persons, net of certain deductions and credits. In addition to being taxed at graduated tax rates, dividends received by corporate non-U.S. holders that are effectively connected with a U.S. trade or business of the corporate non-U.S. holder may also be subject to a branch profits tax at a rate of 30% or such lower rate as may be specified by an applicable tax treaty.

Subject to the discussions below regarding Backup Withholding and Information Reporting and the Foreign Account Tax Compliance Act, non-U.S. holders will generally not be subject to U.S. federal income tax on any gains realized on the sale, exchange or other disposition of our common stock unless:

The FIRPTA rules may apply to a sale, exchange or other disposition of our common stock if we are, or were within the shorter of the five-year period preceding the disposition and the non-U.S. holder's holding period, a "U.S. real property holding corporation," or USRPHC. In general, we would be a USRPHC if interests in U.S. real estate comprised at least half of the value of our business assets. We do not believe that we are a USRPHC and we do not anticipate becoming one in the future. Even if we become a USRPHC, as long as our common stock is regularly traded on an established securities market, such common stock will be treated as U.S. real property interests only if beneficially owned by a non-U.S. holder that actually or constructively owned more than 5% of our outstanding common stock at some time within the five-year period preceding the disposition.

If any gain from the sale, exchange or other disposition of our common stock, (i) is effectively connected with a U.S. trade or business conducted by a non-U.S. holder and (ii) if required by an applicable income tax treaty between the United States and the non-U.S. holder's country of residence,

is attributable to a permanent establishment maintained by such non-U.S. holder in the United States, then the gain generally will be subject to U.S. federal income tax at the same graduated rates applicable to U.S. persons, net of certain deductions and credits. If the non-U.S. holder is a corporation, under certain circumstances, that portion of its earnings and profits that is effectively connected with its U.S. trade or business, subject to certain adjustments, generally would be subject also to a "branch profits tax." The branch profits tax rate is 30%, although an applicable income tax treaty between the United States and the non-U.S. holder's country of residence might provide for a lower rate.

The estates of nonresident alien individuals generally are subject to U.S. federal estate tax on property with a U.S. situs. Because we are a U.S. corporation, our common stock will be U.S. situs property and therefore will be included in the taxable estate of a nonresident alien decedent, unless an applicable estate tax treaty between the United States and the decedent's country of residence provides otherwise.

The Code and the Treasury regulations require those who make specified payments to report the payments to the IRS. Among the specified payments are dividends and proceeds paid by brokers to their customers. The required information returns enable the IRS to determine whether the recipient properly included the payments in income. This reporting regime is reinforced by "backup withholding" rules. These rules require the payers to withhold tax from payments subject to information reporting if the recipient fails to cooperate with the reporting regime by failing to provide his taxpayer identification number to the payer, furnishing an incorrect identification number, or failing to report interest or dividends on his returns. The backup withholding tax rate is currently 28%. The backup withholding rules do not apply to payments to corporations, whether domestic or foreign, provided they establish such exemption.

Payments to non-U.S. holders of dividends on common stock generally will not be subject to backup withholding, and payments of proceeds made to non-U.S. holders by a broker upon a sale of common stock will not be subject to information reporting or backup withholding, in each case so long as the non-U.S. holder certifies its non-U.S. status (and we or our paying agent do not have actual knowledge or reason to know the holder is a U.S. person or that the conditions of any other exemption are not, in fact, satisfied) or otherwise establishes an exemption. The certification procedures to claim treaty benefits described under "Dividends" will generally satisfy the certification requirements necessary to avoid the backup withholding tax. We must report annually to the IRS any dividends paid to each non-U.S. holder and the tax withheld, if any, with respect to these dividends. Copies of these reports may be made available to tax authorities in the country where the non-U.S. holder resides.

Under the Treasury regulations, the payment of proceeds from the disposition of shares of our common stock by a non-U.S. holder made to or through a U.S. office of a broker generally will be subject to information reporting and backup withholding unless the beneficial owner certifies, under penalties of perjury, among other things, its status as a non-U.S. holder (and the broker does not have actual knowledge or reason to know the holder is a U.S. person) or otherwise establishes an exemption. The payment of proceeds from the disposition of shares of our common stock by a non-U.S. holder made to or through a non-U.S. office of a broker generally will not be subject to backup withholding and information reporting, except as noted below. Information reporting, but not backup withholding, will apply to a payment of proceeds, even if that payment is made outside of the United States, if you sell our common stock through a non-U.S. office of a broker that is:

unless the broker has documentary evidence that the beneficial owner is a non-U.S. holder and certain other conditions are satisfied, or the beneficial owner otherwise establishes an exemption (and the broker has no actual knowledge or reason to know to the contrary).

Backup withholding is not an additional tax. Any amounts withheld from a payment to a holder of common stock under the backup withholding rules can be credited against any U.S. federal income tax liability of the holder and may entitle the holder to a refund, provided that the required information is furnished to the IRS in a timely manner.

A U.S. federal withholding tax of 30% may apply to dividends and the gross proceeds of a disposition of our common stock paid to a foreign financial institution (as specifically defined by the applicable rules) unless such institution enters into an agreement with the U.S. government to withhold on certain payments and to collect and provide to the U.S. tax authorities substantial information regarding U.S. account holders of such institution (which includes certain equity holders of such institution, as well as certain account holders that are foreign entities with U.S. owners). This U.S. federal withholding tax of 30% will also apply to dividends and the gross proceeds of a disposition of our common stock paid to a non-financial foreign entity unless such entity provides the withholding agent with either a certification that it does not have any substantial direct or indirect U.S. owners or provides information regarding direct and indirect U.S. owners of the entity. The 30% federal withholding tax described in this paragraph generally cannot be reduced under existing income tax treaties with the United States, although under certain circumstances a non-U.S. holder might be eligible for refunds or credits of such taxes. In addition, an intergovernmental agreement between the U.S. and an applicable foreign country may modify the requirements described in this paragraph. The withholding tax described above will not apply if the foreign financial institution or non-financial foreign entity otherwise qualifies for an exemption from these rules. Holders should consult with their own tax advisors regarding the possible implications of the withholding described herein.

The withholding provisions described above generally apply to proceeds from a sale or other disposition of common stock if such sale or other disposition occurs on or after January 1, 2017 and to payments of dividends on our common stock.

EACH PROSPECTIVE INVESTOR SHOULD CONSULT ITS OWN TAX ADVISOR REGARDING THE PARTICULAR U.S. FEDERAL, STATE, LOCAL AND FOREIGN TAX CONSEQUENCES OF PURCHASING, HOLDING AND DISPOSING OF OUR COMMON STOCK, INCLUDING THE CONSEQUENCES OF ANY PROPOSED CHANGE IN APPLICABLE LAWS.

CRT Capital Group LLC, or CRT Capital, is acting as the sole book-running manager of the offering and as representative of the several underwriters. We have entered into an underwriting agreement dated , 2015 with CRT Capital. Subject to the terms and conditions of the underwriting agreement, we have agreed to sell to each underwriter named below, and each underwriter named below has severally agreed to purchase, at the public offering price less the underwriting discounts and commissions set forth on the cover page of this prospectus, the number of shares of common stock set forth opposite its name below.

The underwriters are committed to purchase all the shares of common stock offered by us other than those covered by the option to purchase additional shares as described below, if they purchase any shares. The obligations of the underwriters may be terminated upon the occurrence of certain events specified in the underwriting agreement. Furthermore, pursuant to the underwriting agreement, the underwriters' obligations are subject to customary conditions, representations and warranties contained in the underwriting agreement, such as receipt by the underwriters of officers' certificates and legal opinions.

We have agreed to indemnify the underwriters against specified liabilities, including liabilities under the Securities Act, and to contribute to payments the underwriters may be required to make in respect thereof.

The underwriters are offering the common stock, subject to prior sale, when, as and if issued to and accepted by them, subject to approval of legal matters by their counsel and other conditions specified in the underwriting agreement. The underwriters reserve the right to withdraw, cancel or modify offers to the public and to reject orders in whole or in part.

The underwriters propose to offer the common stock offered by us to the public at the public offering price set forth on the cover of this prospectus. In addition, the underwriters may offer some of the common stock to other securities dealers at such price less a concession of $ per share. After the initial offering, the public offering price and concession to dealers may be changed.

Discounts and Commissions. The following table shows the public offering price, underwriting discounts and proceeds, before expenses, to us. The information assumes either no exercise or full exercise by the underwriters of their option to purchase additional shares.

We have paid an expense deposit of $25,000 to CRT Capital, which will be applied against out-of-pocket expenses of the underwriters in connection with this offering. The underwriting agreement provides that if such expenses are less than $25,000, the representative shall reimburse the balance of the expense deposit to us.

We have also agreed to pay to CRT Capital its actual, out-of-pocket expenses, including fees and disbursements of the underwriters' counsel related to this offering, up to an aggregate maximum amount of $300,000, regardless of whether the offering is completed, but in any event in compliance with the provisions of FINRA Rule 5110(f)(2).

Option to Purchase Additional Shares. We have granted the underwriters an option to purchase additional shares. This option, which is exercisable for up to 30 days after the date of this prospectus, permits the underwriters to purchase a maximum of 500,000 additional shares of common stock from us to cover their option to purchase additional shares. If the underwriters exercise all or part of this option, they will purchase shares of common stock covered by the option at the public offering price that appears on the cover page of this prospectus, less the underwriting discount. If this option is exercised in full, the total price to the public will be $ and the total proceeds to us, after deducting the underwriting discount but before other expenses, will be $ .

Discretionary Accounts. The underwriters do not intend to confirm sales of the securities offered hereby to any accounts over which they have discretionary authority.

Lock-Up Agreements. Pursuant to certain "lock-up" agreements, certain of our stockholders, including our executive officers and directors, and we have agreed not to (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant for the sale of, make any short sale or otherwise dispose of or transfer, directly or indirectly, any shares of our common stock or any securities convertible into, exercisable or exchangeable for or that represent the right to receive common stock or exercise any right with respect to the registration of any of the lock-up securities, or file or cause to be filed any registration statement in connection therewith, under the Securities Act, (ii) enter into any swap or any other agreement or any transaction that transfers, in whole or in part, directly or indirectly, the economic consequence of ownership of the lock-up securities, whether any such swap or transaction is to be settled by delivery of common stock or other securities, in cash or otherwise, or (iii) publicly disclose the intention to do any of the foregoing, in each case, without the prior written consent of CRT Capital, for a period of 180 days from the date of the underwriting agreement, subject to certain exceptions.

Underwriters' Warrants. We have agreed to issue warrants to the underwriters, or underwriters' warrants, to purchase up to a total of 100,000 shares of common stock (3% of the shares of common stock sold in this offering). The warrants are exercisable at the public offering price set forth on the cover of this prospectus, beginning six months after the date of the closing of this offering until the fifth anniversary of the date of effectiveness of the registration statement related to this offering. The exercise price and number of shares issuable upon exercise of the underwriters' warrants may be adjusted in certain circumstances, including in the event of a stock dividend, extraordinary cash dividend or our recapitalization, reorganization, merger or consolidation. However, the exercise price of the underwriters' warrants will not be adjusted for issuances of shares of common stock at a price below the warrant exercise price. The underwriters' warrants are deemed compensation under FINRA rules and are subject to a 180-day lock-up pursuant to FINRA Rule 5110(g)(1). The underwriters (and their permitted assignees under FINRA rules) may not sell, transfer, assign, pledge, or hypothecate these warrants or the securities underlying these warrants, nor will they engage in any hedging, short sale, derivative, put, or call transactions that would result in the effective economic disposition of the warrants or the underlying securities for a period of 180 days from the date of effectiveness of the registration statement related to, subject to certain exceptions under FINRA rules.

Right of First Refusal. Subject to FINRA Rule 5110(f)(2)(D), CRT Capital has a right of first refusal to participate on a non-exclusive basis as a co-managing underwriter, co-arranger or placement agent in connection with any Rule 144A offering, underwritten public offering or other equity financing that we may undertake, on terms and conditions customary for CRT Capital for similar transactions.

CRT Capital will have such right of first refusal until one year from the earlier of: (i) the closing of the offering or (ii) April 16, 2016.

Electronic Offer, Sale and Distribution of Shares. A prospectus in electronic format may be made available on the websites maintained by the underwriters or one or more selling group members, if any, participating in this offering and the underwriters may distribute this prospectus electronically. The underwriters may agree to allocate a number of shares to selling group members for sale to their online brokerage account holders. Internet distributions will be allocated by the underwriters and selling group members that will make internet distributions on the same basis as other allocations. Other than the prospectus in electronic format, the information on these websites is not part of this prospectus or the registration statement of which this prospectus forms a part, has not been approved or endorsed by us or any underwriter in its capacity as underwriter, and should not be relied upon by investors.

Other Relationships. Each underwriter and its affiliates may in the future provide various investment banking, commercial banking and other financial services for us and our affiliates for which they have received, and may in the future receive, customary fees. Except as disclosed in this prospectus, we have no present arrangements with the underwriters for any future services.

In the ordinary course of their various business activities, the underwriters and their respective affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their customers and may at any time hold long and short positions in such securities and instruments. Such investment and securities activities may involve our securities and instruments. The underwriters and their respective affiliates may also make investment recommendations or publish or express independent research views in respect of such securities or instruments and may at any time hold, or recommend to clients that they acquire, long or short positions in such securities and instruments.

Market Information. Prior to this offering, our common stock traded on the OTCQB Marketplace with very limited daily trading volume. The public offering price will be determined by negotiations between us and the representatives of the underwriters. In addition to prevailing market conditions, the factors to be considered in these negotiations will include:

An active trading market for the shares may not develop. It is also possible that after the offering the shares will not trade in the public market at or above the public offering price.

NYSE MKT Listing. We have been approved to list our common stock on the NYSE MKT under the symbol "BPMX" upon pricing of this offering.

Stabilization. In connection with this offering, each underwriter may engage in stabilizing transactions, overallotment transactions, syndicate covering transactions, penalty bids and purchases to cover positions created by short sales.

These stabilizing transactions, syndicate covering transactions and penalty bids may have the effect of raising or maintaining the market price of shares of our common stock or preventing or retarding a decline in the market price of shares of our common stock. As a result, the price of our common stock in the open market may be higher than it would otherwise be in the absence of these transactions. Neither we nor the underwriters make any representation or prediction as to the effect that the transactions described above may have on the price of our common stock. These transactions may be effected on NYSE MKT, in the over-the-counter market or otherwise and, if commenced, may be discontinued at any time.

Passive market making. In connection with this offering, the underwriters and selling group members may engage in passive market making transactions in our common stock in accordance with Rule 103 of Regulation M under the Exchange Act, during a period before the commencement of offers or sales of the shares and extending through the completion of the distribution. A passive market maker must display its bid at a price not in excess of the highest independent bid of that security. However, if all independent bids are lowered below the passive market maker's bid, that bid must then be lowered when specified purchase limits are exceeded.

Other than in the United States, no action has been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any jurisdiction where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that

jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

This prospectus is not a disclosure document under Chapter 6D of the Australian Corporations Act, has not been lodged with the Australian Securities and Investments Commission and does not purport to include the information required of a disclosure document under Chapter 6D of the Australian Corporations Act. Accordingly, (i) the offer of the securities under this prospectus is only made to persons to whom it is lawful to offer the securities without disclosure under Chapter 6D of the Australian Corporations Act under one or more exemptions set out in section 708 of the Australian Corporations Act, (ii) this prospectus is made available in Australia only to those persons as set forth in clause (i) above, and (iii) the offeree must be sent a notice stating in substance that by accepting this offer, the offeree represents that the offeree is such a person as set forth in clause (i) above, and, unless permitted under the Australian Corporations Act, agrees not to sell or offer for sale within Australia any of the securities sold to the offeree within 12 months after its transfer to the offeree under this prospectus.

The information in this document does not constitute a public offer of the securities, whether by way of sale or subscription, in the People's Republic of China (excluding, for purposes of this paragraph, Hong Kong Special Administrative Region, Macau Special Administrative Region and Taiwan). The securities may not be offered or sold directly or indirectly in the PRC to legal or natural persons other than directly to "qualified domestic institutional investors."

The information in this document has been prepared on the basis that all offers of securities will be made pursuant to an exemption under the Directive 2003/71/EC, or Prospectus Directive, as implemented in Member States of the European Economic Area, each a Relevant Member State, from the requirement to produce a prospectus for offers of securities.

An offer to the public of securities has not been made, and may not be made, in a Relevant Member State except pursuant to one of the following exemptions under the Prospectus Directive as implemented in that Relevant Member State:

This document is not being distributed in the context of a public offering of financial securities (offre au public de titres financiers) in France within the meaning of Article L.411-1 of the French Monetary and Financial Code (Code monétaire et financier) and Articles 211-1 et seq. of the General Regulation of the French Autorité des marchés financiers, or AMF. The securities have not been offered or sold and will not be offered or sold, directly or indirectly, to the public in France.

This document and any other offering material relating to the securities have not been, and will not be, submitted to the AMF for approval in France and, accordingly, may not be distributed or caused to distributed, directly or indirectly, to the public in France.

Such offers, sales and distributions have been and shall only be made in France to (i) qualified investors (investisseurs qualifiés) acting for their own account, as defined in and in accordance with Articles L.411-2-II-2 and D.411-1 to D.411-3, D. 744-1, D.754-1 and D.764-1 of the French Monetary and Financial Code and any implementing regulation and/or (ii) a restricted number of non-qualified investors (cercle restreint d'investisseurs) acting for their own account, as defined in and in accordance with Articles L.411-2-II-2 and D.411-4, D.744-1, D.754-1 and D.764-1 of the French Monetary and Financial Code and any implementing regulation.

Pursuant to Article 211-3 of the General Regulation of the AMF, investors in France are informed that the securities cannot be distributed (directly or indirectly) to the public by the investors otherwise than in accordance with Articles L.411-1, L.411-2, L.412-1 and L.621-8 to L.621-8-3 of the French Monetary and Financial Code.

The information in this document does not constitute a prospectus under any Irish laws or regulations and this document has not been filed with or approved by any Irish regulatory authority as the information has not been prepared in the context of a public offering of securities in Ireland within the meaning of the Irish Prospectus (Directive 2003/71/EC) Regulations 2005 (the "Prospectus Regulations"). The securities have not been offered or sold, and will not be offered, sold or delivered directly or indirectly in Ireland by way of a public offering, except to (i) qualified investors as defined in Regulation 2(l) of the Prospectus Regulations and (ii) fewer than 100 natural or legal persons who are not qualified investors.

The securities offered by this prospectus have not been approved or disapproved by the Israeli Securities Authority (the ISA), or ISA, nor have such securities been registered for sale in Israel. The shares may not be offered or sold, directly or indirectly, to the public in Israel, absent the publication of a prospectus. The ISA has not issued permits, approvals or licenses in connection with the offering or publishing the prospectus; nor has it authenticated the details included herein, confirmed their reliability or completeness, or rendered an opinion as to the quality of the securities being offered. Any resale in Israel, directly or indirectly, to the public of the securities offered by this prospectus is subject to restrictions on transferability and must be effected only in compliance with the Israeli securities laws and regulations.

The offering of the securities in the Republic of Italy has not been authorized by the Italian Securities and Exchange Commission (Commissione Nazionale per le Societ-$$-Aga e la Borsa, "CONSOB" pursuant to the Italian securities legislation and, accordingly, no offering material relating to the securities may be distributed in Italy and such securities may not be offered or sold in Italy in a

public offer within the meaning of Article 1.1(t) of Legislative Decree No. 58 of 24 February 1998, or Decree No. 58, other than:

Any offer, sale or delivery of the securities or distribution of any offer document relating to the securities in Italy (excluding placements where a Qualified Investor solicits an offer from the issuer) under the paragraphs above must be:

Any subsequent distribution of the securities in Italy must be made in compliance with the public offer and prospectus requirement rules provided under Decree No. 58 and the Regulation No. 11971 as amended, unless an exception from those rules applies. Failure to comply with such rules may result in the sale of such securities being declared null and void and in the liability of the entity transferring the securities for any damages suffered by the investors.

The securities have not been and will not be registered under Article 4, paragraph 1 of the Financial Instruments and Exchange Law of Japan (Law No. 25 of 1948), as amended (the "FIEL") pursuant to an exemption from the registration requirements applicable to a private placement of securities to Qualified Institutional Investors (as defined in and in accordance with Article 2, paragraph 3 of the FIEL and the regulations promulgated thereunder). Accordingly, the securities may not be offered or sold, directly or indirectly, in Japan or to, or for the benefit of, any resident of Japan other than Qualified Institutional Investors. Any Qualified Institutional Investor who acquires securities may not resell them to any person in Japan that is not a Qualified Institutional Investor, and acquisition by any such person of securities is conditional upon the execution of an agreement to that effect.

This document is not being distributed in the context of a public offer of financial securities (oferta pública de valores mobiliários) in Portugal, within the meaning of Article 109 of the Portuguese Securities Code (Código dos Valores Mobiliários). The securities have not been offered or sold and will not be offered or sold, directly or indirectly, to the public in Portugal. This document and any other offering material relating to the securities have not been, and will not be, submitted to the Portuguese Securities Market Commission (Comissão do Mercado de Valores Mobiliários) for approval in Portugal and, accordingly, may not be distributed or caused to distributed, directly or indirectly, to the public in Portugal, other than under circumstances that are deemed not to qualify as a public offer under the Portuguese Securities Code. Such offers, sales and distributions of securities in Portugal are limited to persons who are "qualified investors" (as defined in the Portuguese Securities Code). Only such investors may receive this document and they may not distribute it or the information contained in it to any other person.

This document has not been, and will not be, registered with or approved by Finansinspektionen (the Swedish Financial Supervisory Authority). Accordingly, this document may not be made available, nor may the securities be offered for sale in Sweden, other than under circumstances that are deemed not to require a prospectus under the Swedish Financial Instruments Trading Act (1991:980) (Sw. lag (1991:980) om handel med finansiella instrument). Any offering of securities in Sweden is limited to persons who are "qualified investors" (as defined in the Financial Instruments Trading Act). Only such investors may receive this document and they may not distribute it or the information contained in it to any other person.

The securities may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange, or SIX, or on any other stock exchange or regulated trading facility in Switzerland. This document has been prepared without regard to the disclosure standards for issuance prospectuses under art. 652a or art. 1156 of the Swiss Code of Obligations or the disclosure standards for listing prospectuses under art. 27 ff. of the SIX Listing Rules or the listing rules of any other stock exchange or regulated trading facility in Switzerland. Neither this document nor any other offering material relating to the securities may be publicly distributed or otherwise made publicly available in Switzerland.

Neither this document nor any other offering material relating to the securities have been or will be filed with or approved by any Swiss regulatory authority. In particular, this document will not be filed with, and the offer of securities will not be supervised by, the Swiss Financial Market Supervisory Authority (FINMA).

This document is personal to the recipient only and not for general circulation in Switzerland.

Neither this document nor the securities have been approved, disapproved or passed on in any way by the Central Bank of the United Arab Emirates or any other governmental authority in the United Arab Emirates, nor has the Company received authorization or licensing from the Central Bank of the United Arab Emirates or any other governmental authority in the United Arab Emirates to market or sell the securities within the United Arab Emirates. This document does not constitute and may not be used for the purpose of an offer or invitation. No services relating to the securities, including the receipt of applications and/or the allotment or redemption of such shares, may be rendered within the United Arab Emirates by the Company.

No offer or invitation to subscribe for securities is valid or permitted in the Dubai International Financial Centre.

Neither the information in this document nor any other document relating to the offer has been delivered for approval to the Financial Services Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Markets Act 2000, as amended, or FSMA) has been published or is intended to be published in respect of the securities. This document is issued on a confidential basis to "qualified investors" (within the meaning of section 86(7) of FSMA) in the United Kingdom, and the securities may not be offered or sold in the United Kingdom by means of this document, any accompanying letter or any other document, except in circumstances which do not require the publication of a prospectus pursuant to section 86(1) FSMA. This document should not be distributed, published or reproduced, in whole or in part, nor may its contents be disclosed by recipients to any other person in the United Kingdom.

Any invitation or inducement to engage in investment activity (within the meaning of section 21 of FSMA) received in connection with the issue or sale of the securities has only been communicated or caused to be communicated and will only be communicated or caused to be communicated in the United Kingdom in circumstances in which section 21(1) of FSMA does not apply to the Company.

In the United Kingdom, this document is being distributed only to, and is directed at, persons (i) who have professional experience in matters relating to investments falling within Article 19(5) (investment professionals) of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005, or FPO, (ii) who fall within the categories of persons referred to in Article 49(2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the FPO or (iii) to whom it may otherwise be lawfully communicated (together "relevant persons"). The investments to which this document relates are available only to, and any invitation, offer or agreement to purchase will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

The validity of the shares of common stock offered by this prospectus will be passed upon for us by Fenwick & West LLP, Mountain View, California. K&L Gates LLP, Irvine, California is acting as counsel for the underwriters in connection with this offering.

The consolidated financial statements of BioPharmX Corporation as of January 31, 2015 and December 31, 2014 and 2013, and for the one-month period ended January 31, 2015 and each of the two years in the period ended December 31, 2014 included in this prospectus, have been so included in reliance on the report of Burr Pilger Mayer, Inc., an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.

We have filed with the SEC a registration statement on Form S-1 under the Securities Act with respect to the shares of common stock offered hereby. This prospectus, which constitutes a part of the registration statement, does not contain all of the information set forth in the registration statement or the exhibits filed therewith. For further information about us and the common stock offered hereby, reference is made to the registration statement and the exhibits filed therewith. Statements contained in this prospectus regarding the contents of any contract or any other document that is filed as an exhibit to the registration statement are not necessarily complete, and in each instance we refer you to the copy of such contract or other document filed as an exhibit to the registration statement.

We are a reporting company and currently file periodic reports with the SEC. A copy of the registration statement and the exhibits filed therewith may be inspected without charge at the public reference room maintained by the SEC, located at 100 F Street, NE, Washington, DC 20549, and copies of all or any part of the registration statement may be obtained from that office. Please call the SEC at 1-800-SEC-0330 for further information about the public reference room. The SEC also maintains a website that contains reports, proxy and information statements and other information regarding registrants that file electronically with the SEC. The address of the website is www.sec.gov.

We have audited the accompanying consolidated balance sheets of BioPharmX Corporation and its subsidiary (the "Company") as of January 31, 2015 and December 31, 2014 and 2013, and the related consolidated statements of operations and comprehensive loss, convertible redeemable preferred stock and stockholders' deficit, and cash flows for the one-month period ended January 31, 2015 and each of the two years in the period ended December 31, 2014. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of the Company's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of BioPharmX Corporation and its subsidiary as of January 31, 2015 and December 31, 2014 and 2013, and the results of their operations and their cash flows for the one-month period ended January 31, 2015 and each of the two years in the period ended December 31, 2014 in conformity with accounting principles generally accepted in the United States of America.

The accompanying consolidated financial statements have been prepared assuming that BioPharmX Corporation and its subsidiary will continue as a going concern. As discussed in Note 4 to the consolidated financial statements, the Company's recurring losses from operations, available cash and accumulated deficit raise substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 4. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

BIOPHARMX CORPORATION

CONSOLIDATED BALANCE SHEETS

as of January 31, 2015, December 31, 2014 and 2013

(in thousands, except share and per share data)

				December 31

	January 31, 2015			December 31
	January 31, 2015			2014			2013
ASSETS
Current assets:
Cash	$	1,305		$	2,111		$	3
Accounts receivable		1			2			—
Inventory		160			138			—
Prepaid expenses and other current assets		239			269			36

Total current assets		1,705			2,520			39
Property and equipment, net		234			235			32
Intangible assets		149			150			150
Other assets		50			50			150
Restricted cash		35			35			—

Total assets	$	2,173		$	2,990		$	371



LIABILITIES, CONVERTIBLE REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable	$	1,152		$	486		$	229
Accrued liabilities		4			426			198
Payroll liabilities		128			199			64
Deferred rent		49			51			65
Deferred revenue		6			6			—
Related party payables		218			199			125
Convertible notes, short-term		—			—			90

Total current liabilities		1,557			1,367			771
Convertible notes payable		—			—			938
Other long-term liabilities		—			—			32

Total liabilities		1,557			1,367			1,741

Commitments and contingencies (Note 12)
Series A convertible redeemable preferred stock, $0.001 par value; 10,000,000 shares authorized; 4,207,987, 4,207,987 and no shares issued and outstanding at January 31, 2015, December 31, 2014 and 2013, respectively (liquidation preference of $8.0 million as of January 31, 2015)		6,823			6,730			—

Stockholders' deficit:
Common stock, $0.001 par value; 90,000,000 shares authorized; 11,415,416, 11,375,311 and 7,025,000 shares issued and outstanding at January 31, 2015, December 31, 2014 and 2013, respectively		11			11			7
Additional paid-in capital		4,416			4,372			306
Accumulated deficit		(10,634	)		(9,490	)		(1,683	)

Total stockholders' deficit		(6,207	)		(5,107	)		(1,370	)

Total liabilities, convertible redeemable preferred stock and stockholders' deficit	$	2,173		$	2,990		$	371

The accompanying notes are an integral part of these consolidated financial statements.

BIOPHARMX CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

for the months ended January 31, 2015 and 2014 and the years ended December 31, 2014 and 2013

(in thousands, except share and per share data)

	Month ended January 31,						Year ended December 31,

	2015			2014			2014			2013
				(Unaudited)
Revenue	$	1		$	—		$	—		$	—
Cost of goods sold		1			—			—			—

Gross margin		—			—			—			—
Operating expenses:
Research and development		365			103			2,519			671
Sales and marketing		378			73			2,299			132
General and administrative		401			165			2,953			711

Total operating expenses		1,144			341			7,771			1,514

Loss from operations		(1,144	)		(341	)		(7,771	)		(1,514	)
Other income		—			—			40			—
Interest expense, net		—			(23	)		(76	)		(74	)

Net and comprehensive loss		(1,144	)		(364	)		(7,807	)		(1,588	)
Accretion on Series A convertible redeemable preferred stock		(43	)		—			(163	)		—
Deemed dividend on Series A convertible redeemable preferred stock		(50	)		—			(159	)		—

Net loss available to common stockholders	$	(1,237	)	$	(364	)	$	(8,129	)	$	(1,588	)



Basic and diluted net loss available to common stockholders per share	$	(0.11	)	$	(0.05	)	$	(0.80	)	$	(0.22	)



Shares used in computing basic and diluted net loss per share		11,408,000			7,750,000			10,217,000			7,119,000

The accompanying notes are an integral part of these consolidated financial statements.

BIOPHARMX CORPORATION

CONSOLIDATED STATEMENTS OF CONVERTIBLE REDEEMABLE PREFERRED
STOCK AND STOCKHOLDERS' DEFICIT

for the month ended January 31, 2015 and the years ended December 31, 2014 and 2013

(in thousands, except share and per share data)

	Series A Convertible Redeemable Preferred Stock


					Common Stock
					Common Stock					Additional Paid-in Capital			Accumulated Deficit			Total Stockholders' Deficit
	Shares		Amount		Shares			Amount
	Shares		Amount		Shares			Amount
Balance at December 31, 2012		—	$	—		7,400,000		$	7	$	42		$	(95	)	$	(46	)
Repurchase of common stock		—		—		(375,000	)		—		—			—			—
Stock-based compensation		—		—		—			—		58			—			58
Issuance of convertible notes payable with beneficial conversion feature		—		—		—			—		206			—			206
Net and comprehensive loss		—		—		—			—		—			(1,588	)		(1,588	)

Balance at December 31, 2013		—		—		7,025,000			7		306			(1,683	)		(1,370	)
Thompson Designs, Inc. common stock assumed in conjunction with Share Exchange		—		—		2,000,000			2		(2	)		—			—
Issuance of convertible notes payable with beneficial conversion feature		—		—		—			—		204			—			204
Issuance of common stock due to exercise of options and release of awards		—		—		824,310			1		98			—			99
Issuance of warrants to non-employees		—		—		—			—		204			—			204
Conversion of convertible notes payable to common stock		—		—		1,526,001			1		1,846			—			1,847
Stock-based compensation		—		—		—			—		1,193			—			1,193
Issuance of preferred stock, related warrants and common stock		4,207,987		6,408		—			—		845			—			845
Interest on preferred stock				159		—			—		(159	)		—			(159	)
Accrection of stock issuance costs		—		163		—			—		(163	)		—			(163	)
Net and comprehensive loss		—		—		—			—		—			(7,807	)		(7,807	)

Balance at December 31, 2014		4,207,987	$	6,730		11,375,311		$	11	$	4,372		$	(9,490	)	$	(5,107	)

Stock-based compensation		—		—		—			—		99			—			99
Issuance of common stock due to exercise of options and release of awards		—		—		40,105			—		38			—			38
Interest on preferred stock		—		50		—			—		(50	)		—			(50	)
Accrection of stock issuance costs		—		43		—			—		(43	)		—			(43	)
Net and comprehensive loss		—		—		—			—		—			(1,144	)		(1,144	)

Balance at January 31, 2015		4,207,987	$	6,823		11,415,416		$	11	$	4,416		$	(10,634	)	$	(6,207	)

The accompanying notes are an integral part of these consolidated financial statements.

BIOPHARMX CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

for the months ended January 31, 2015 and 2014 and the years ended December 31, 2014 and 2013

(in thousands)

	Month ended January 31,						Year ended December 31,

	2015			2014			2014			2013
				(Unaudited)
Cash flows from operating activities:
Net loss	$	(1,144	)	$	(364	)	$	(7,807	)	$	(1,588	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense		99			11			1,193			58
Depreciation expense		1			—			25			5
Amortization expense		1			—			—			—
Warrants issued for services provided		—			—			99			—
Non-cash interest expense		—			12			76			74
Changes in assets and liabilities:
Accounts receivable		1			—			(2	)		—
Inventories		(22	)		—			(138	)		—
Prepaid expenses and other assets		30			(21	)		(133	)		(184	)
Accounts payable		666			36			257			446
Accrued expenses and other liabilities		(424	)		(20	)		214			—
Payroll liabilities		(71	)		(39	)		135			—
Deferred revenue		—			—			6			—
Related party payables		19			1			74			109

Net cash used in operating activities		(844	)		(384	)		(6,001	)		(1,080	)

Cash flows from investing activities:
Change in restricted cash		—			—			(35	)		—
Purchases of property and equipment		—			(8	)		(228	)		(25	)
Purchase of intellectual property		—			—			—			(60	)

Net cash used in investing activities		—			(8	)		(263	)		(85	)

Cash flows from financing activities:
Proceeds from issuance of common stock		38			—			99			—
Repurchase of common stock		—			—			—			—
Net proceeds from issuance of convertible redeemable preferred stock and common stock warrants		—			—			7,253			—
Proceeds from issuance of convertible notes payable		—			749			1,020			1,030

Net cash provided by financing activities		38			749			8,372			1,030

Net increase (decrease) in cash		(806	)		357			2,108			(135	)
Cash at beginning of year		2,111			3			3			138

Cash at end of year	$	1,305		$	360		$	2,111		$	3



Non-cash investing and financing activities:
Intellectual assets purchase accrued	$	—		$	—		$	—		$	90



Conversion of convertible notes payable to common stock	$	—		$	—		$	1,847		$	—



Fair value of beneficial conversion feature issued in connection with convertible notes payable	$	—		$	148		$	204		$	206



Issuance of common stock warrants in connection with convertible notes payable	$	—		$	—		$	105		$	—

The accompanying notes are an integral part of these consolidated financial statements.

On March 26, 2015, the board of directors of BioPharmX Corporation approved a change in the Company's fiscal year end from December 31 to January 31, beginning January 31, 2015. Corresponding results for the years ended December 31, 2014 and 2013 are both for twelve-month periods. In addition, the consolidated statements of operations and comprehensive loss and cashflows also include an unaudited one-month period ended January 31, 2014.

BioPharmX Corporation is incorporated under the laws of the state of Delaware and originally incorporated on August 30, 2010 in Nevada under the name Thompson Designs, Inc. The Company has only one wholly owned subsidiary, BioPharmX, Inc. a Nevada corporation.

The Company is a specialty pharmaceutical company focused on utilizing our proprietary drug delivery technologies to develop and commercialize novel prescription and over-the-counter, or OTC, products that address large markets in women's health and dermatology. The Company's objective is to develop products that treat health or age-related conditions that (1) are not presently being addressed or treated at all or (2) are currently treated with drug therapies or drug delivery approaches that are suboptimal. The Company's strategy is designed to bring new products to market by identifying optimal delivery mechanisms and/or alternative applications for FDA-approved active pharmaceutical ingredients, or APIs, while in appropriate circumstances, reducing the time, cost and risk typically associated with new product development by repurposing drugs with demonstrated safety profiles taking advantage of the regulatory approval pathway under Section 505(b)(2) of the Federal Food, Drug and Cosmetic Act, or FDC Act available for repurposed/reformulated drugs. The Company believes the 505(b)(2) regulatory pathway may reduce drug development risk and could reduce the time and resources it spends during development.

Since the Company's inception, substantially all of the Company's efforts have been devoted to developing its product candidates, including conducting preclinical and clinical trials and providing general and administrative support for its operations. The Company commercially launched its breast health supplement at the end of 2014, although to-date the Company has generated a de minimis amount of revenue from product sales and the Company is not dependent on sales to any one customer. The Company has financed its operations primarily through the sale of equity securities and convertible debt securities from which it raised $9.6 million of net cash from its inception through January 31, 2015.

On January 23, 2014, the Company (then operating as Thompson Designs, Inc.), BioPharmX, Inc. and stockholders of BioPharmX, Inc., who collectively owned 100% of BioPharmX, Inc., entered into and consummated transactions pursuant to a share exchange agreement, such transaction referred to as the Share Exchange, whereby the Company issued to the stockholders of BioPharmX, Inc. an aggregate of 7,025,000 shares of its common stock, in exchange for 100% of the shares of BioPharmX, Inc. The shares of the Company's common stock received by the stockholders of BioPharmX, Inc. in the Share Exchange constituted approximately 77.8% of our then issued and outstanding common stock, after giving effect to the issuance of shares pursuant to the share exchange agreement. As a result of the Share Exchange, BioPharmX, Inc. became the Company's wholly-owned subsidiary. For accounting

purposes, the Share Exchange was treated as a reverse acquisition with BioPharmX, Inc. as the acquirer and the Company as the acquired party, and as a result the historical financial statements prior to the Share Exchange included in this prospectus and registration statement are the historical financial statements of BioPharmX, Inc. On March 3, 2014, the Company changed its name to BioPharmX Corporation. On May 16, 2014, the Company reincorporated from Nevada to Delaware.

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). The accompanying financial statements include the accounts of BioPharmX and our wholly-owned subsidiary. All intercompany transactions have been eliminated in consolidation.

The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures. On an ongoing basis, management evaluates its significant accounting policies or estimates. The Company bases its estimates on historical experience and on various market specific and other relevant assumptions that the Company believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ significantly from these estimates and such differences may be material to the financial statements.

Certain prior year amounts have been reclassified to conform to the current year presentation. The amounts for the prior periods have been reclassified to be consistent with the current year presentation and have no impact on previously reported total assets, total stockholders' deficit or net loss.

Carrying amounts of certain of the Company's financial instruments, including cash, prepaid and other current assets, accounts payable and accrued expenses and related party payables approximate fair value due to their short maturities. Based on borrowing rates currently available to the Company for loans with similar terms, the carrying value of the convertible notes payable approximates fair value.

Inventory is stated at the lower of cost or market. Cost is determined using the standard cost method which approximates actual cost on a first-in, first-out basis. Market value is determined as the lower of replacement cost or net realizable value. The Company regularly reviews inventory quantities in consideration of actual loss experiences, projected future demand, and remaining shelf life to record a provision for excess and obsolete inventory when appropriate.

Shipping and handling costs are expensed as incurred and are included in cost of revenue.

The Company shipped its first product to a retailer in December 2014. The product, the VI₂OLET iodine dietary supplement, is a new product in the dietary supplement field. Revenue is recognized provided that persuasive evidence of a sales arrangement exists, the price is fixed or determinable, title and risk of loss has transferred, calculability of the resulting receivable is reasonably assured, there are no customer acceptance requirements and the Company does not have any significant post-shipment obligations. The Company recognizes revenue on a sell through basis since the Company does not have the historical information to estimate product returns. As a result, the Company accounts for these product shipments using a deferred revenue recognition model. Under the deferred revenue recognition model, the Company does not recognize revenue upon product shipment. For these product shipments, the Company invoices the reseller, records deferred revenue at gross invoice sales price, and classifies the cost basis of the product held by the wholesaler as a component of inventory. The Company recognizes revenue when product is sold by the reseller to the end-user, on a first-in first-out (FIFO) basis.

Property, plant and equipment is stated at cost less accumulated depreciation and amortization. Depreciation and amortization are recognized using the straight-line method. Repairs and maintenance costs are expensed as incurred. Estimated useful lives in years are as follows:

Intangible assets with finite useful lives are amortized over their estimated useful lives. Intangible assets with finite useful lives are reviewed for impairment when facts or circumstances suggest that the carrying value of these assets may not be recoverable.

The intangible assets were acquired in March 2013 in connection with the collaboration and license agreement with Iogen LLC detailed in Note 12. Amortization of the intangible assets commenced in January 2015 with the first recognition of revenue related to VI₂OLET and is being taken on a straight-line basis over 5 years. Although VI₂OLET was launched through online stores in December 2014, the Company determined the criteria for revenue recognition had not been met until sell through to the end customer as discussed in the revenue recognition section in Note 3.

During the one-month period ended January 31, 2015, $1,000 of amortization was expensed to costs of net revenues. As of January 31, 2015, the estimated aggregate future amortization expense in future years is as follows (in thousands):

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable. When such an event occurs, management determines whether there has been an impairment by comparing the anticipated undiscounted future net cash flows to the related asset's carrying value. If an asset is considered impaired, the asset is written down to fair value, which is determined based either on discounted cash flows or appraised value, depending on the nature of the asset. The Company has not identified any such impairment losses to date.

The Company accounts for income taxes using the liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases 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. Valuation allowances are established to reduce deferred tax assets when management estimates, based on available objective evidence, that it is more likely than not that the benefit will not be realized for the deferred tax assets.

The Company's policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of the date of adoption of accounting for uncertain tax positions there was no accrued interest or penalties associated with any unrecognized tax benefits, nor was any interest expense recognized during the year.

Comprehensive loss is the changes in equity of an enterprise, except those resulting from stockholder transactions. Accordingly, comprehensive loss includes certain changes in equity that are excluded from net loss. For the months ended January 31, 2015 and 2014 and the years ended December 31, 2014 and 2013, the Company's comprehensive loss is equal to the net loss. There were no components of other comprehensive loss for any of the periods presented.

Research and development expenses are expensed as incurred and consist primarily of personnel costs, including salaries, benefits and stock-based compensation, clinical studies performed by contract research organizations (CROs), materials and supplies and overhead allocations consisting of various and facilities-related costs.

The Company recognizes stock-based compensation for awards granted to employees on a straight-line basis over the requisite service period, usually the vesting period, based on the grant-date fair value using the Black-Scholes pricing model.

The Company records stock-based compensation expense for awards granted to non-employees, excluding non-employee directors, based upon the estimated then-current fair value of the equity instrument using the Black-Scholes pricing model. The Company charges the value of the equity instrument to the Consolidated Statements of Operations and Comprehensive Loss over the term of the service agreement and the unvested shares underlying the option are subject to periodic revaluation over the remaining vesting period.

The Company expenses the costs of advertising, including promotional expenses, as incurred. Advertising expenses were $90,000, $2,000 (unaudited), $68,000 and $7,000 in the months ended January 31, 2015 and 2014 and the years ended December 31, 2014 and 2013, respectively.

The following table is a reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per share attributable to BioPharmX common stockholders:

	Month ended January 31,						Year ended December 31,

	2015			2014			2014			2013
				(Unaudited)
Numerator:
Net loss available to BioPharmX common stockholders (in thousands)	$	(1,237	)	$	(364	)	$	(8,129	)	$	(1,588	)
Denominator:
Weighted-avarage shares of common stock outstanding used in the calculation of basic net income per share attributable to BioPharmX common stockholders		11,408,000			7,750,000			10,217,000			7,119,000
Effect of dilutive securities:
Stock options and equivalents		—			—			—			—
Convertible redeemable preferred stock		—			—			—			—

Weighted-avarage shares of common stock outstanding used in the calculation of diluted net income per share attributable to BioPharmX common stockholders		11,408,000			7,750,000			10,217,000			7,119,000

Basic net loss per share attributable to BioPharmX common stockholders is calculated based on the weighted-average number of shares of our common stock outstanding during the period. Diluted net loss per share attributable to BioPharmX common stockholders is calculated based on the weighted-average number of shares of our common stock outstanding and other dilutive securities outstanding during the period. The potential dilutive shares of our common stock resulting from the assumed exercise of outstanding stock options and the assumed conversion of convertible notes are determined under the treasury stock method.

The following outstanding shares of common stock equivalents were excluded from the computation of diluted net loss per share of common stock for the periods presented because including them would have been antidilutive:

In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, (ASU 2014-09), which converges the

FASB and the International Accounting Standards Board standards on revenue recognition. Areas of revenue recognition that will be affected include, but are not limited to, transfer of control, variable consideration, allocation of transfer pricing, licenses, time value of money, contract costs and disclosures. This guidance is effective for the fiscal years and interim reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact that the adoption of ASU 2014-09 will have on its consolidated financial statements and related disclosures.

On June 10, 2014, the FASB issued ASU 2014-10, Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation, (ASU 2014-10), which eliminates the definition of a development stage entity, eliminates the development stage presentation and disclosure requirements under Accounting Standards Codification, or ASC, 915 Development Stage Entities, or ASC 915, and amends provisions of existing variable interest entity guidance under ASC 810 Consolidation. As a result of the changes, entities which meet the former definition of a development stage entity will no longer be required to: (1) present inception-to-date information in the statements of income, cash flows, and stockholder equity; (2) label the financial statements as those of a development stage entity; (3) disclose a description of the development stage activities in which the entity is engaged; and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. Furthermore, ASU 2014-10 clarifies disclosures about risks and uncertainties under ASC Topic 275, Risks and Uncertainties, that apply to companies that have not commenced planned principal operations. Finally, variable interest entity rules no longer contain an exception for development stage entities and, as a result, development stage entities will have to be evaluated for consolidation in the same manner as non-development stage entities.

The Company has adopted ASU 2014-10 effective as of its issuance date. Adoption of this standard had no impact on its financial position, results of operations, or cash flows; however, the presentation of the consolidated financial statements and related disclosures in the notes to the consolidated financial statements has been changed to eliminate the disclosures that are no longer required.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (ASU 2014-15). This standard includes guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern within one year after the financial statements are issued. If conditions or events raise substantial doubt, the entity must disclose the conditions or events that raise substantial doubt about the entity's ability to continue as a going concern, management's evaluation of those conditions or events, and management's plans to mitigate the conditions or events. This update is effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2014-15 will have on its consolidated financial statements and related disclosures.

The Company has reviewed other recent accounting pronouncements and concluded they are either not applicable to the business, or no material effect is expected on the consolidated financial statements as a result of future adoption.

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has incurred recurring losses and negative cash flows from operations since inception. The Company has not generated revenues and has funded its operating losses through the issuance of convertible notes payable and Series A convertible redeemable preferred stock ("Series A preferred stock"). The Company has a limited operating history and its prospects are subject to risks, expenses and uncertainties frequently encountered by companies in the industry.

The significant risks and uncertainties described herein could have a significant negative impact on the financial viability of BioPharmX and raise substantial doubt about the Company's ability to continue as a going concern. Management is working on the Company's business model to increase working capital by managing its cash flow, securing financing and introducing its first product to market.

Risks include, but are not limited to, the uncertainty of availability of additional financing and the uncertainty of achieving future profitability. Management of the Company intends to raise additional funds through the issuance of equity securities. There can be no assurance that such financing will be available or on terms which are favorable to the Company. Failure to generate sufficient cash flows from operations, raise additional capital or reduce certain discretionary spending could have a material adverse effect on the Company's ability to achieve its intended business objectives. These factors raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not contain any adjustments that might result from the outcome of this uncertainty.

As shown in the accompanying consolidated financial statements, the Company incurred a net loss of $1.1 million and $364,000 (unaudited) during the months ended January 31, 2015 and 2014, respectively, and $7.8 million and $1.6 million during the years ended December 31, 2014 and 2013, respectively, and had an accumulated deficit of $10.6 million as of January 31, 2015. As of January 31, 2015, the Company had working capital of $148,000. While management of the Company believes that it has a plan to fund ongoing operations, there is no assurance that its plan will be successfully implemented. The Company is experiencing the following risks and uncertainties in the business:

The discovery of key raw materials to formulate novel products depends on the Company's ability to identify, negotiate and secure procurement of such materials. This also depends on the Company's ability to establish comprehensive and long term vendor contracts and relationships.

The Company's ability to compete and to achieve its product platform strategy depends on its ability to protect its proprietary discoveries and technologies. The Company currently relies on a combination of copyrights, trademarks, trade secret laws and confidentiality agreements to protect its intellectual property rights. The Company also relies upon unpatented know-how and continuing technological innovation.

The Company's continued operations are dependent upon its ability to identify, recruit and retain adequate management personnel and contractors to perform certain jobs such as research and

development, patent generation, regulatory affairs and general administrative functions. The Company requires highly trained professionals of varying levels and experience along with a flexible work force.

The Company's ability to generate income in the short-run will depend greatly on the rate of adoption and ability to establish a market for the Company's VI₂OLET iodine dietary supplement.

Research and development for novel prescription or OTC based products can be very extensive and lengthy in nature; and the clinical trial process with the Food and Drug Administration can require significant funding and time consuming patient studies. The competitive landscape could change significantly over the time period to complete targeted product development milestones. The current competition for BioPharmX's products could also turn into strategic partners or potential acquirers in the future.

The Company recognizes and discloses the fair value of its assets and liabilities using a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (Level 3 measurements). Each level of input has different levels of subjectivity and difficulty involved in determining fair value.

As of January 31, 2015, December 31, 2014 and 2013, the Company held no assets or liabilities with instrument valuations measured on a recurring basis.

Inventory at January 31, 2015, December 31, 2014 and 2013 consisted of the following (in thousands):

Property and equipment, net at January 31, 2015, December 31, 2014 and 2013 consisted of the following (in thousands):

Depreciation expense for the months ended January 31, 2015 and 2014 and the years ended December 31, 2014 and 2013 was $1,000, $0 (unaudited), $25,000 and $5,000.

The Company has restricted cash in the amount of $35,000 held by Bank of America in a money market account to secure the credit line of the Company's credit cards.

Accrued liabilities at January 31, 2015, December 31, 2014 and 2013 consisted of the following (in thousands):

Since inception, the founding executives of the Company have made advances to cover short-term operating expenses. Additionally, since the beginning of 2014 a portion of their compensation is being deferred and is included in this balance. These advances and deferred compensation are non-interest bearing. As of January 31, 2015, December 31, 2014 and 2013, related party payables were $218,000, $199,000 and $125,000, respectively.

In September and November 2012, the Company issued convertible notes payable ("Notes") to two individuals, respectively, in exchange for $200,000 in cash. These Notes carry an interest rate of 6% per annum and mature in September and November 2015, respectively, with principal and interest payable at maturity.

During the year ended December 31, 2013, the Company issued Notes to twelve individuals in exchange for $1.0 million in cash. These notes carry an interest rate of 6% per annum and mature between June 2014 and October 2016, with principal and interest payable at maturity.

During the first quarter of 2014, the Company issued convertible notes payable to thirteen individuals in exchange for $1.0 million in cash. The Notes carry an interest rate of 6% per annum and mature between January 2015 and March 2017, with principal and interest payable at maturity.

The Notes automatically convert into common stock upon the Company entering into a qualified preferred stock financing at 80% of the price per share at which such preferred stock is issued in such an offering. Additionally, there is a special conversion that at maturity, unless the Company repays all outstanding principal and interest, the Notes shall be automatically converted into a number of shares of common stock of the Company at 80% of the then fair market value per share.

As a result of this beneficial conversion feature, the Company recorded $0, $148,000 (unaudited), $204,000 and $206,000, as a debt discount during the months ended January 31, 2015 and 2014 and the years ended December 31, 2014 and 2013. The debt discount was amortized to interest expense over the term of the Notes using the effective interest rate method. The amortization expense related to the debt discount was $0, $12,000 (unaudited), $49,000 and $41,000 for the months ended January 31, 2015 and 2014 and the years ended December 31, 2014 and 2013, respectively.

During the year ended December 31, 2014, the Company completed a private placement (the "Private Placement") of shares of its Series A preferred stock and warrants to purchase common stock ("Warrants"). The Private Placement was consummated in a series of closings that occurred between April 2014 and November 2014. The Company sold to accredited investors and non-U.S. persons 4.2 million shares of Series A preferred stock at a per share price of $1.85 for total net proceeds of approximately $7.3 million and issued to the investors for no additional consideration the Warrants to purchase in the aggregate 2.0 million shares of the Company's common stock, at an exercise price of $3.70 per share pursuant to a series of subscription agreements. See Note 13.

As a result, upon the first Series A preferred stock closing on April 11, 2014, the convertible notes payable balance, net of unamortized discounts, of $1.8 million was converted into 1,526,001 shares of common stock. The balance of the accrued interest was waived. As of January 31, 2015, there were no remaining outstanding convertible notes.

On August 23, 2013, the Company signed a lease for 10,800 square feet of office and laboratory space in Menlo Park, California. The lease expires in November 2016. Future minimum commitments under this lease are as follows (in thousands):

The Company is not currently a party to any legal proceedings. The Company is not aware of any pending legal proceeding to which any of its officers, directors, or any beneficial holders of 5% or more of its voting securities are adverse to the Company or have a material interest adverse to the Company.

The Company enters into standard indemnification arrangements in the ordinary course of business. Pursuant to these arrangements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third-party with respect to the Company's technology. The term of these indemnification agreements is generally perpetual. The maximum potential amount of future payments the Company could be required to make under these agreements is not determinable because it involves claims that may be made against the Company in the future, but have not yet been made.

The Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. No liability associated with such indemnifications has been recorded to date.

In March 2013, the Company entered into an amended and restated collaboration and license agreement with Iogen LLC, which provides the Company the license the rights to label, market, and resell the finished inventory and ongoing manufacturing of the Iogen molecular iodine technology for future product formulation development and commercialization. New formulation patents developed by the Company will be the sole ownership of the Company. The agreement gives the Company a perpetual, fully paid-up, non-exclusive license to make, have made, use, sell, offer for sale and import products.

The Company capitalized as Intangible Assets, in the year ended December 31, 2013, the amount of $150,000 related to this agreement. As of January 31, 2015, the balance, net of amortization, was $149,000. See Note 3 for information on related amortization. No royalties have been paid as of January 31, 2015.

On March 27, 2013, the Company terminated one of the founders and repurchased 375,000 shares for $18.

As described in Note 2, on January 23, 2014, the Company issued 7,025,000 shares of its common stock to BioPharmX, Inc. stockholders.

As described in Note 11, on April 11, 2014, the Company's convertible notes and eligible interest were converted to 1,526,001 shares of common stock upon the first closing of the offer and sale of Series A preferred stock.

During the year ended December 31, 2014, the Company issued 727,643 shares of common stock upon the exercise of stock options. During the one-month period ended January 31, 2015, the Company issued 40,105 shares of common stock upon the exercise of stock options.

In November 2014, the Company issued 290,000 shares of common stock to Korea Investment Partners Overseas Expansion Platform Fund of which 96,667 vested immediately and 193,333 will vest upon completion of the $2.0 million investment outlined in the Series A preferred stock subscription agreement. The unvested shares are not considered outstanding for financial reporting purposes.

At January 31, 2015, the Company had 11,415,416 shares of common stock issued and outstanding.

13. CONVERTIBLE REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (Continued)

The warrants with an allocated fair value of $845,000 were classified as additional paid-in capital. The Company determined the fair value using the Black-Scholes pricing model with the following assumptions: dividend rate of 0%, risk-free rate of 1.6% to 4.0%, contractual term of 5 years and expected volatility of 88.8%. These warrants were immediately exercisable, and as of January 31, 2015, were all outstanding.

In connection with the subscription agreements, the Company, the majority stockholders of the Company and the investors entered into investor rights agreements with the investors, whereby the investors were granted certain rights including: (i) right to receive copies of quarterly and annual reports of the Company, (ii) right of inspection of the Company's properties and records, (iii) right of participation in future securities offerings, (iv) tag-along rights in connection with sales of the Company's stock by a major stockholder and (v) board of directors representation rights for the subscribers who purchased at least 500,000 shares of Series A preferred stock and who hold at least 30% of their original holdings, or the Qualified Subscribers. The Company made certain covenants under the agreement including: (i) uplisting to NYSE or NASDAQ within three years from the issuance shares of Series A preferred stock, and (ii) increase of the board of directors to five members including one member to be appointed by the Qualified Subscribers.

13. CONVERTIBLE REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (Continued)

In addition to the warrants issued in conjunction with the subscription agreements, the Company issued warrants on May 15, 2014, to a service provider for 316,395 shares of common stock at an exercise price of $2.035 per share, which were valued at $99,000 and expensed. The Company also issued to a qualified investor as a part of his convertible loan package for 343,559 shares of common stock at an exercise price of $1.85 per share, which was valued at $105,000. These warrants expire after five years. The Company determined the fair value using the Black-Scholes option pricing model with the following assumptions: dividend rate of 0%, risk-free rate of 1.6%, contractual term of 5 years and expected volatility of 88.8%. These warrants were immediately exercisable, and as of January 31, 2015, were all outstanding.

On January 23, 2014, the Company adopted the 2014 Equity Incentive Plan, or the 2014 Plan, which permits the Company to grant stock options to directors, officers or employees of the Company or others to purchase shares of common stock of the Company through awards of incentive and nonqualified stock options, restricted stock awards and stock appreciation rights. Options previously issued under the BioPharmX, Inc. 2011 Equity Incentive Plan were substituted, and options under the 2014 Plan were issued to replace all substituted BioPharmX, Inc. options.

The Company currently has time-based options outstanding. The time-based options generally vest in two to four years and expire ten years from the date of grant. Total number of shares originally reserved and available for grant and issuance pursuant to this Plan was 2,700,000. Shares issued under the Plan will be drawn from authorized and unissued shares or shares now held or subsequently acquired by the Company. On November 7, 2014, the Company increased the stock available to the 2014 Equity Incentive Plan for options grants from 2,700,000 shares to 4,500,000 shares. At January 31, 2015, there were 1,043,000 shares available for grant under the Plan.

13. CONVERTIBLE REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (Continued)

The following table summarizes the Company's stock option activities for month ended January 31, 2015 and the years ended December 31, 2014 and 2013:

			Weighted Average Exercise Price			Aggregate Intrinsic Value

						(in thousands)
Outstanding at January 1, 2014	1,150,000		$	0.06
Granted	1,456,000		$	0.40
Exercised	—			—
Cancelled	—			—

Outstanding at December 31, 2013	2,606,000		$	0.25
Granted	891,000		$	1.85
Exercised	(727,643	)	$	0.14
Cancelled	(160,000	)	$	0.37

Outstanding at December 31, 2014	2,609,357		$	0.82	8.52	$	5,686

Granted	130,000		$	2.75
Exercised	(40,105	)	$	0.95
Cancelled	(10,000	)	$	1.85

Outstanding at January 31, 2015	2,689,252		$	0.91	8.58	$	5,625



Vested and exercisable	1,019,299		$	0.43	7.88	$	2,619



Vested and expected to vest	2,561,421		$	0.88	8.55	$	5,420

The weighted-average grant date fair values of the stock options granted during the month ended January 31, 2015 and the years ended December 31, 2014 and 2013 were $1.92, $1.10 and $0.28 per share, respectively.

The following table summarizes significant ranges of outstanding and exercisable options as of January 31, 2015 (in thousands, except contractual life and exercise price):

13. CONVERTIBLE REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (Continued)

The total intrinsic value of employee stock options exercised during the month ended January 31, 2015, and the years ended December 31, 2014 and 2013 was $82,000, $676,000 and zero, respectively.

As of January 31, 2015, total compensation costs related to unvested, but not yet recognized, stock-based awards was $2.5 million, net of estimated forfeitures. This cost will be amortized on a straight-line basis over a weighted average remaining period of 3.26 years and will be adjusted for subsequent changes in estimated forfeitures.

The following table summarizes the stock-based compensation expenses included in our Statement of Operations and Comprehensive Loss the months ended January 31, 2015 and 2014 and the years ended December 31, 2014 and 2013 (in thousands):

The Company estimates the fair value of time-based stock options, if any, granted using the Black-Scholes pricing model. The fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. Time-based and performance-based options, if any, typically have a ten-year life from date of grant and vesting periods of two to four years.

The fair value of stock-based awards to employees is calculated through the use of the Black-Scholes pricing model, even though such model was developed to estimate the fair value of freely tradable, fully transferable options without vesting restrictions, which differ significantly from the Company's stock option awards. This model also requires subjective assumptions, including future stock price volatility and expected time to exercise, which greatly affect the calculated values.

The expected term represents the period that the Company's stock-based awards are expected to be outstanding. For awards granted subject only to service vesting requirements, the Company utilizes the simplified method for estimating the expected term of the stock-based award, instead of historical exercise data.

The Company uses the historical volatility of the price of the common shares of selected public companies in the biotechnology sector.

The Company has never paid dividends on its common shares and currently does not intend to do so and, accordingly, the dividend yield percentage is zero for all periods.

The Company bases the risk-free interest rate used in the Black-Scholes-Merton valuation method upon the implied yield curve currently available on U.S. Treasury zero-coupon issues with a remaining term equal to the expected term used as the assumption in the model.

The following assumptions were used to calculate the estimated fair value of the awards for the month ended January 31, 2015 and the years ended December 31, 2014 and 2013:

The Company sponsors a 401(k) defined contribution plan for its employees. This plan provides for tax-deferred salary deductions for all employees. Employee contributions are voluntary. Employees may contribute up to 100% of their annual compensation to this plan, as limited by an annual maximum amount as determined by the Internal Revenue Service. The Company may match employee contributions in amounts to be determined at the Company's sole discretion. The Company has made no contributions to the plan for the months ended January 31, 2015 and 2014 or the years ended December 31, 2014 and 2013.

No federal income taxes were provided in the month ended January 2015 or the years ended December 31, 2014 and 2013 due to the Company's net losses. State minimum income and franchise taxes are included in general and administrative expenses and were immaterial for the periods presented.

At January 31, 2015, the Company had available federal net operating loss, or NOL, carry-forwards of approximately $8.8 million which will begin to expire in 2031 and California state NOL carry-forwards of approximately $8.8 million which will begin to expire in 2031. At January 31, 2015, December 31, 2014 and 2013, the net deferred tax assets of approximately $3.6 million, $3.2 million and

$594,000, respectively, generated primarily by NOL carry-forwards, have been fully reserved due to the uncertainty surrounding the realization of such benefits. The net valuation allowance increased by approximately $0.4 million, $2.6 million and $563,000 during the month ended January 31, 2015 and years ended December 31, 2014 and 2013, respectively.

Current tax laws impose substantial restrictions on the utilization of net operating loss and credit carry-forwards in the event of an "ownership change," as defined by the Internal Revenue Code. If there should be an ownership change, the Company's ability to utilize its carry-forwards could be limited.

As of January 31, 2015, December 31, 2014 and 2013, the Company did not have any material unrecognized tax benefits. The tax years from 2010 to 2014 remain open for examination by the federal and state authorities.

On April 9, 2015, the Company filed a Form S-1 with the SEC in connection with a proposed public offering of common stock for an aggregate offering amount up to $20 million.

	April 30, 2015			January 31, 2015

Assets
Current assets:
Cash	$	479		$	1,305
Accounts receivable		6			1
Inventories		215			160
Prepaid expenses and other current assets		672			239

Total current assets		1,372			1,705
Property and equipment, net		226			234
Intangible assets		142			149
Other assets		50			50
Restricted cash		35			35

Total assets	$	1,825		$	2,173



Liabilities, Convertible Redeemable Preferred Stock and Stockholders' Deficit
Current liabilities:
Accounts payable	$	1,781		$	1,152
Accrued expenses and other current liabilities		417			59
Payroll liabilities		202			128
Related party payables		274			218

Total current liabilities		2,674			1,557
Commitments and contingencies (Note 5)
Series A convertible redeemable preferred stock, $0.001 par value; 10,000,000 shares authorized; 4,207,987 issued and outstanding at April 30, 2015 and January 31, 2015 (liquidation preference of $8.1 million as of April 30, 2015)		7,061			6,823

Stockholders' deficit:
Common stock, $0.001 par value; 90,000,000 shares authorized; 12,026,994 and 11,415,416 shares issued and outstanding at April 30, 2015 and January 31, 2015, respectively		12			11
Additional paid-in capital		6,336			4,416
Accumulated deficit		(14,258	)		(10,634	)

Total stockholders' deficit		(7,910	)		(6,207	)

Total liabilities, convertible redeemable preferred stock and stockholders' deficit	$	1,825		$	2,173

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

	Three months ended April 30,

	2015			2014
Revenues, net	$	4		$	—
Cost of goods sold		9			—

Gross deficit		(5	)		—
Operating expenses:
Research and development		1,076			540
Sales and marketing		1,081			214
General and administrative		1,026			531

Total operating expenses		3,183			1,285

Loss from operations		(3,188	)		(1,285	)
Other expense		(436	)		—
Interest expense, net		—			(50	)

Net and comprehensive loss		(3,624	)		(1,335	)
Accretion on Series A convertible redeemable preferred stock		(123	)		—
Deemed dividend on Series A convertible redeemable preferred stock		(116	)		—

Net loss available to common stockholders	$	(3,863	)	$	(1,335	)



Basic and diluted net loss available to common stockholders per share	$	(0.33	)	$	(0.14	)



Shares used in computing basic and diluted net loss per share		11,741,000			9,351,000

	Three months ended April 30,

	2015			2014
Cash flows from operating activities:
Net loss	$	(3,624	)	$	(1,335	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense		300			115
Expense related to modification of warrants		436			—
Depreciation expense		8			2
Amortization expense		7			—
Noncash interest expense		—			25
Changes in assets and liabilities:
Accounts receivable		(5	)		—
Inventories		(55	)		—
Prepaid expenses and other assets		(896	)		(265	)
Accounts payable		1,092			197
Accrued expenses and other liabilities		358			(29	)
Payroll liabilities		74			34
Related party payables		56			97

Net cash used in operating activities		(2,249	)		(1,159	)

Cash flows from investing activities:
Purchases of property and equipment		—			(9	)

Net cash used in investing activities		—			(9	)

Cash flows from financing activities:
Proceeds from exercise of common stock		11			—
Net proceeds issuance of convertible redeemable preferred stock and warrants		—			1,456
Proceeds from exercise of common stock warrants		1,412			—
Proceeds from issuance of convertible notes payable		—			280

Net cash provided by financing activities		1,423			1,736

Net (decrease) increase in cash		(826	)		568
Cash at beginning of period		1,305			360

Cash at end of period	$	479		$	928

BioPharmX Corporation (the "Company") is incorporated under the laws of the state of Delaware and originally incorporated on August 30, 2010 in Nevada under the name Thompson Designs, Inc. The Company has one wholly owned subsidiary, BioPharmX, Inc. a Nevada corporation. The Company is a specialty pharmaceutical company focused on utilizing its proprietary drug delivery technologies to develop and commercialize novel prescription and over-the-counter, or OTC, products that address large markets in women's health and dermatology. The Company's objective is to develop products that treat health or age-related conditions that (1) are not presently being addressed or treated at all or (2) are currently treated with drug therapies or drug delivery approaches that are suboptimal. The Company's strategy is designed to bring new products to market by identifying optimal delivery mechanisms and/or alternative applications for FDA-approved active pharmaceutical ingredients, or APIs, while in appropriate circumstances, reducing the time, cost and risk typically associated with new product development by repurposing drugs with demonstrated safety profiles taking advantage of the regulatory approval pathway under Section 505(b)(2) of the Federal Food, Drug and Cosmetic Act available for repurposed/reformulated drugs. The Company believes the 505(b)(2) regulatory pathway may reduce drug development risk and could reduce the time and resources it spends during development.

Since the Company's inception, substantially all of the Company's efforts have been devoted to developing its product candidates, including conducting preclinical and clinical trials and providing general and administrative support for its operations. The Company commercially launched its breast health supplement at the end of 2014, although to-date the Company has generated a de minimis amount of revenue from product sales and the Company is not dependent on sales to any one customer. The Company has financed its operations primarily through the sale of equity securities and convertible debt securities from which it raised $11.0 million of net cash from its inception through April 30, 2015.

On March 26, 2015, the board of directors of the Company approved a change in its fiscal year end from December 31 to January 31.

These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting and include the accounts of the Company and its subsidiary. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, filed on March 30, 2015, and the Transition Report on Form 10-K for the one-month transition period ended January 31, 2015, filed on April 20, 2015. The

1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

condensed consolidated balance sheet as of January 31, 2015, included herein, was derived from the audited consolidated financial statements as of that date.

The unaudited interim condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary and have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the Company's statement of financial position as of April 30, 2015 and January 31, 2015, and the Company's results of operations and its cash flows for the three months ended April 30, 2015 and 2014. The results for the three months ended April 30, 2015 are not necessarily indicative of the results to be expected for the year ending January 31, 2016 or any future period.

The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses recognized during the reported period. Actual results could differ from those estimates.

The Company expenses the costs of advertising, including promotional expenses, as incurred. Advertising expenses were $235,000 for the three months ended April 30, 2015. No advertising expenses were incurred for the three months ended April 30, 2014.

Basic net loss per share attributable to common stockholders is calculated based on the weighted-average number of shares of the Company's common stock outstanding during the period. Diluted net loss per share attributable to common stockholders is calculated based on the weighted-average number of shares of the Company's common stock outstanding and other dilutive securities outstanding during the period. The potential dilutive shares of common stock resulting from the assumed exercise of outstanding stock options and the assumed conversion of convertible notes are determined under the treasury stock method.

1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

For the three months ended April 30, 2015 and 2014, 9,282,000 and 3,871,000 potentially dilutive securities, respectively, were excluded from the computation of diluted loss per share because their effect on net loss per share would be anti-dilutive.

Deferred offering costs, which primarily consist of legal, accounting and other regulatory fees relating to a proposed public offering of the Company's common stock (the "Offering"), are capitalized within prepaid expenses and other current assets. The deferred offering costs will be offset against the Offering proceeds upon the consummation of the Offering. In the event the Offering is terminated, deferred offering costs will be expensed.

These unaudited interim condensed consolidated financial statements and accompanying notes should be read in conjunction with the Company's annual financial statements and notes thereto contained in the Annual Report on Form 10-K and the Transition Report on Form 10-K for the one-month transition period ended January 31, 2015. There have been no significant changes in the Company's significant accounting policies for the three months ended April 30, 2015, as compared to the significant accounting policies described in the Annual Report on Form 10-K and the Transition Report on Form 10-K for the one-month transition period ended January 31, 2015.

The accompanying condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. The Company has incurred recurring losses and negative cash flows from operations since inception. The Company has generated de minimis revenues and has funded its operating losses through the issuance of convertible notes payable, Series A convertible redeemable preferred stock and warrants.

The Company has a limited operating history and its prospects are subject to risks, expenses and uncertainties frequently encountered by companies in the industry.

The significant risks and uncertainties described herein could have a significant negative impact on the financial viability of the Company and raise substantial doubt about the Company's ability to continue as a going concern. On April 9, 2015, the Company filed a registration statement on Form S-1 pursuant to the Securities Act of 1933, as amended (the "Registration Statement"), with the SEC in connection with the Offering for an aggregate offering amount of upto $20 million. Management is implementing a business model to increase working capital by managing its cash flow, securing financing and increasing revenue related to its first product.

Failure to generate sufficient cash flows from operations, raise additional capital or reduce certain discretionary spending could have a material adverse effect on the Company's ability to achieve its intended business objectives. These factors raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not contain any adjustments that might result from the outcome of this uncertainty.

As shown in the accompanying condensed consolidated financial statements, the Company incurred a net loss of $3.6 million and $1.3 million during the three months ended April 30, 2015 and 2014, respectively, and had an accumulated deficit of $14.3 million as of April 30, 2015. As of April 30, 2015, the Company had a working capital deficit of $1.3 million. While management of the Company believes that it has a plan to fund ongoing operations, there is no assurance that its plan will be successfully implemented. The Company is experiencing the following risks and uncertainties in the business:

Since inception, the founding executives of the Company have made advances to cover short-term operating expenses. Additionally, since the beginning of 2014 a portion of their compensation has been deferred and is included in this balance. These advances and deferred compensation are non-interest bearing.

The Company has entered into indemnification agreements with its directors and officers that may require the Company to indemnify its directors and officers against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual. The Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. No liability associated with such indemnifications has been recorded to date.

In March 2013, the Company entered into an amended and restated collaboration and license agreement with Iogen LLC, which provides the Company the license the rights to label, market, and resell the finished inventory and ongoing manufacturing of the Iogen molecular iodine technology for future product formulation development and commercialization. New formulation patents developed by the Company will be solely owned by the Company. The agreement gives the Company a perpetual, fully paid-up, non-exclusive license to make, have made, use, sell and offer for sale and import products.

The Company capitalized as intangible assets, in the year ended December 31, 2013, the amount of $150,000 related to this agreement. As of April 30, 2015 and January 31, 2015, the balance, net of amortization, was $142,000 and $149,000, respectively. No royalties have been paid as of April 30, 2015.

The Company entered into subscription agreements for a private placement of shares of its Series A preferred stock and warrants with 47 accredited investors during 2014 whereby the Company sold an aggregate of 4,207,987 shares of Series A preferred stock at a per share price of $1.85 for gross proceeds of $7.5 million and issued to the investors for no additional consideration warrants to purchase in the aggregate 2,042,589 shares of the Company's common stock, with an exercise price of $3.70 per share. Upon achieving an uplisting to the NYSE MKT in connection with the Offering, the Series A preferred stock, along with accrued and unpaid interest payable in stock in lieu of cash, will automatically convert into shares of common stock.

In March and April 2015, the Company amended certain warrants to reduce the exercise price of such warrants from $3.70 to $2.50 per share with a corresponding increase in the number of shares of common stock exercisable under the warrants so that the aggregate exercise value of such warrants remained the same. As of April 1, 2015, certain holders had exercised such warrants for an aggregate of 564,662 shares of common stock for an aggregate cash exercise price of $1,411,655. The Company recorded a charge for the incremental fair value of $436,000 in other expense related to the amended warrants. The fair value of the warrants exercised was computed as of the date of modification using the following assumptions: dividend rate of 0%, risk-free rate of 1.6%, contractual term of 4 to 5 years and expected volatility of 85.9%. As of April 30, 2015, warrants to purchase 1,661,055 shares of common stock remain outstanding related to the Series A preferred stock offering.

6. CONVERTIBLE REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (Continued)

common stock at an exercise price of $1.85 per share, which was valued at $105,000. These warrants expire after five years. These warrants were immediately exercisable, and as of April 30, 2015, were all outstanding.

On January 23, 2014, the Company adopted the 2014 Equity Incentive Plan, or the 2014 Plan, which permits the Company to grant stock options to directors, officers or employees of the Company or others to purchase shares of common stock of the Company through awards of incentive and nonqualified stock options, restricted stock awards and stock appreciation rights. Stock options previously issued under the BioPharmX, Inc.'s 2011 Equity Incentive Plan were substituted with stock options issued under the 2014 Plan. Stock options generally vest in two to four years and expire ten years from the date of grant.

The total number of shares originally reserved and available for grant and issuance pursuant to the 2014 Plan was 2,700,000. Shares issued under the 2014 Plan are drawn from authorized and unissued shares or shares now held or subsequently acquired by the Company. On November 7, 2014, the Company increased the stock reserve available to the 2014 Plan for stock awards from 2,700,000 shares to 4,500,000 shares.

The following table summarizes the Company's stock option activities under the 2014 Plan:

					Weighted Average Exercise Price			Aggregate Intrinsic Value

								(in thousands)
Outstanding at January 31, 2015	1,043,000		2,689,252		$	0.91	8.58	$	5,625
Granted	(365,000	)	365,000		$	3.00
Exercised	—		(46,916	)	$	0.24
Cancelled	254,375		(254,375	)	$	1.47

Outstanding at April 30, 2015	932,375		2,752,961		$	1.14	7.41	$	5,107



Vested and exercisable			1,109,670		$	0.51	4.85	$	2,768



Vested and expected to vest			2,629,418		$	1.11	7.32	$	4,957

6. CONVERTIBLE REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (Continued)

The following table summarizes significant ranges of outstanding and exercisable options as of April 30, 2015:

The total intrinsic value of employee stock options exercised during the three months ended April 30, 2015 was $126,000. There were no employee stock options exercised during the three months ended April 30, 2014.

The following table summarizes the stock-based compensation expenses included in the unaudited condensed consolidated statement of operations and comprehensive loss (in thousands):

The Company estimates the fair value of stock options granted using the Black-Scholes pricing model, even though such model was developed to estimate the fair value of freely tradable, fully transferable options without vesting restrictions, which differ significantly from the Company's stock option awards. This model also requires subjective assumptions, including future stock price volatility and expected time to exercise, which greatly affect the calculated values. The fair value is amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. As of April 30, 2015, total compensation costs related to unvested, but not yet recognized, stock-based awards was $2.9 million, net of estimated forfeitures. This cost will be amortized on straight-line basis over a weighted average remaining period of 3.07 years and will be adjusted for subsequent changes in estimated forfeitures.

The following assumptions were used to calculate the estimated fair value of awards granted during the three months ended April 30, 2015 and 2014:

The Company uses the historical volatility of the price of the common shares of selected public companies in the biotechnology sector due to its limited trading history.

The Company bases the risk-free interest rate used in the Black-Scholes pricing method upon the implied yield curve currently available on U.S. Treasury zero-coupon issues with a remaining term equal to the expected term used as the assumption in the model.

The Company has never paid dividends on its common shares and currently does not intend to do so and, accordingly, the dividend yield percentage is zero for all periods.

No federal income taxes were provided in the three months ended April 30, 2015 and 2014 due to the Company's net losses. The Company evaluates its ability to recover deferred tax assets, in full or in part, by considering all available positive and negative evidence, including past operating results and its forecast of future taxable income on a jurisdictional basis. The Company bases its estimate of current and deferred taxes on the tax laws and rates that are currently in effect in the appropriate jurisdiction. Changes in laws or rates may affect the tax provision as well as the amount of deferred tax assets or liabilities.

As of April 30, 2015 and January 31, 2015, the Company has not recorded any liability for unrecognized tax benefits related to uncertain tax positions. The 2010 to 2014 tax years remain open for examination by the federal and state authorities.

The following table sets forth all costs and expenses, other than underwriting discounts and commissions, paid or payable by the Registrant in connection with the sale of the common stock being registered. All amounts shown are estimates except for the SEC registration fee and the FINRA filing fee:

Section 145 of the Delaware General Corporation Law authorizes a court to award, or a corporation's board of directors to grant, indemnity to directors and officers under certain circumstances and subject to certain limitations. The terms of Section 145 of the Delaware General Corporation Law are sufficiently broad to permit indemnification under certain circumstances for liabilities, including reimbursement of expenses incurred, arising under the Securities Act of 1933, as amended, or the Securities Act.

As permitted by the Delaware General Corporation Law, the Registrant's certificate of incorporation contains provisions that eliminate the personal liability of its directors for monetary damages for any breach of fiduciary duties as a director, except liability for the following:

As permitted by the Delaware General Corporation Law, the Registrant's certificate of incorporation provides that the Registrant is required to indemnify each person that it has the power to indemnify to the fullest extent permitted by Section 145 of the Delaware General Corporation Law

The Registrant has entered into indemnification agreements with each of its current directors and executive officers to provide these directors and executive officers additional contractual assurances regarding the scope of the indemnification set forth in the Registrant's certificate of incorporation and to provide additional procedural protections. There is no pending litigation or proceeding involving a director or executive officer of the Registrant for which indemnification is sought. Reference is also made to the underwriting agreement to be filed as Exhibit 1.1 to this registration statement, which

provides for the indemnification of executive officers, directors and controlling persons of the Registrant against certain liabilities. The indemnification provisions in the Registrant's certificate of incorporation and the indemnification agreements entered into or to be entered into between the Registrant and each of its directors and executive officers may be sufficiently broad to permit indemnification of the Registrant's directors and executive officers for liabilities arising under the Securities Act.

The Registrant currently carries liability insurance for its directors and officers.

Reference is made to the following documents filed as exhibits to this registration statement regarding relevant indemnification provisions described above and elsewhere herein:

From September 2012 to March 2014, we issued 6% unsecured convertible notes to investors in the aggregate principal amount of $2.25 million. The entirety of the notes converted into shares of our common stock in 2014.

On January 23, 2014, we issued 7,025,000 shares of our common stock to the stockholders of BioPharmX, Inc. pursuant to a share exchange agreement.

From March 2014 to November 2014, we received $7.8 million from accredited investors to purchase 4,207,987 shares of Series A preferred stock and warrants to purchase 2,042,589 shares of common stock at a price of $3.70 per share.

On May 16, 2014, in connection with our reincorporation into Delaware, each outstanding share of common stock was converted into one share of the new Delaware corporation and each outstanding share of preferred stock was converted into one preferred share of the new Delaware corporation.

From September 3, 2014 to January 26, 2015, 15 individuals exercised stock options granted under the 2014 Equity Incentive Plan to purchase 767,748 shares of our common stock. These stock options were issued in exchange for services rendered to us in accordance with the terms of the 2014 Equity Incentive Plan. The weighted-average exercise price of the stock options exercised during this period was $0.18.

On November 10, 2014 we issued to KIP 290,000 shares of our common stock, of which 96,667 shares vested immediately on issuance and 193,333 will vest upon completion of a milestone, for director services rendered by Ping Wang. The shares have a fair value of $986,000 based on our stock price at the date of issuance.

In March and April 2015, warrant holders exercised warrants for an aggregate of 564,662 shares of common stock for an aggregate cash exercise price of $1,411,655.

In June 2015, one warrant holder exercised a warrant for an aggregate of 54,054 shares of common stock for an aggregate cash exercise price of $100,000.

In June 2015, we issued a 6% unsecured convertible note in the principal amount of $500,000 to an investor. The investor, with whom we had a pre-existing relationship, represented to us that he was an accredited or sophisticated investor, that he had been given access to the information he requested to make his investment decision, that he was capable of analyzing the merits and risks of his investment, and that he understood the speculative nature of his investment.

The foregoing issuances of the equity securities were effectuated pursuant to the exemption from the registration requirements of the Securities Act, provided by Section 3(a)(9) of the Securities Act, Section 4(a)(2) of the Securities Act, and/or Regulation D promulgated thereunder as a transaction not involving a public offering and are restricted shares as defined in the Securities Act. The Company did not engage in any general solicitation or advertising in connection with the foregoing issuances.

					Incorporated by Reference

Exhibit Number					Incorporated by Reference				Filed Herewith
Exhibit Number			Description of Document	Form	File No.	Filing Date	Exhibit		Filed Herewith
	1.1	**	Form of Underwriting Agreement
	2.1		Form of Share Exchange Agreement dated January 23, 2014 by and among Thompson Designs, Inc., BioPharmX, Inc. and BioPharmX, Inc. Stockholders	8-K	000-54871	1/27/2014		2.1
	3.1		Certificate of Incorporation	S-8	333-201708	1/26/2015		4.01
	3.2		Bylaws	S-8	333-201708	1/26/2015		4.02
	4.1		Specimen Stock Certificate	S-8	333-201708	1/26/2015		4.03
	4.2	**	Amended and Restated Designations, Preferences and Rights of Series A Preferred Stock
	4.3		Certificate of Validation of Certificate of Designations, Preferences and Rights of Series A Preferred Stock filed with the Delaware Secretary of State on March 17, 2015	10-K	000-54871	3/30/2015		4.3
	4.4	**	Form of Underwriters' Warrant Agreement
	5.1	**	Opinion of Fenwick & West LLP as to legality of securities being registered
	10.1		Form of Stock Purchase Agreement between Kade Thompson and BioPharmX, Inc.	8-K	000-54871	1/27/2014		10.1
	10.2		Form of Employment Agreement between James Pekarsky and Thompson Designs, Inc.	8-K	000-54871	1/27/2014		10.2
	10.3		Form of Employment Agreement between Anja Krammer and Thompson Designs, Inc.	8-K	000-54871	1/27/2014		10.3
	10.4		Employment Agreement between Kin F. Chan, PhD and the Company	10-K	000-54871	3/30/2015		10.4
	10.5		Amended and Restated Collaboration and License Agreement dated March 1, 2013 between BioPharmX, Inc. and Iogen LLC	8-K	000-54871	1/27/2014		10.4

					Incorporated by Reference

Exhibit Number					Incorporated by Reference				Filed Herewith
Exhibit Number			Description of Document	Form	File No.	Filing Date	Exhibit		Filed Herewith
	10.6		Collaboration and Supply Agreement dated October 22, 2013 between BioPharmX, Inc. and Nutech Medical, Inc.	8-K	000-54871	1/27/2014		10.5
	10.7		Lease Agreement dated August 23, 2013 between Prologis, L.P. and BioPharmX, Inc.	8-K	000-54871	1/27/2014		10.6
	10.8		2014 Equity Incentive Plan	8-K	000-54871	1/27/2014		10.7
	10.9		Form of 2014 Equity Incentive Plan award agreement	S-8	333-201708	1/26/2015		4.05
	10.10		Form of Securities Purchase Agreement	8-K	000-54871	1/27/2014		10.8
	10.11		Form of Subscription Agreement	10-K	000-54871	3/31/14		10.11
	10.12		Investor Rights Agreement between the Company, Senior Management of the Company and the parties to Subscription Agreements	10-K	000-54871	3/31/14		10.12
	10.13		Promissory Note, dated December 21, 2012 between Thompson Designs, Inc. and Kade Thompson	10-K	000-54871	12/31/12		10.1
	10.14		Voting Agreement, dated October 24, 2014, between KIP Overseas Platform Expansion Fund, James Pekarsky and Anja Krammer	8-K	000-54871	11/12/2014		10.3
	10.15		Subscription Agreement, dated October 24, 2014, between the Company and KIP Overseas Expansion Platform Fund	10-K	000-54871	3/30/2015		10.15
	10.16	**	Form of Indemnification Agreement
	10.17	#**	Commercial Supply Agreement dated June 25, 2014 between Gregory Pharmaceutical Holdings, Inc. d/b/a UPM Pharmaceuticals and BioPharmX, Inc.
	16.1		Letter of Silberstein Ungar, PLLC to the SEC dated January 23, 2014	8-K	000-54871	1/27/2014		16.1
	21.1		Subsidiaries of the Registrant	10-K	000-54871	3/30/2015		21.1

No financial statement schedules are provided because the information called for is not required or is shown either in the consolidated financial statements or notes.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

Pursuant to the requirements of the Securities Act, the Registrant has duly caused this amendment to registration statement on Form S-1 to be signed on its behalf by the undersigned, thereunto duly authorized, in Menlo Park, California, on the 16th day of June, 2015.

Pursuant to the requirements of the Securities Act of 1933, this amendment to registration statement on Form S-1 has been signed by the following persons in the capacities and on the dates indicated.

					Incorporated by Reference

Exhibit Number					Incorporated by Reference			Filed Herewith
Exhibit Number			Description of Document	Form	File No.	Filing Date	Exhibit	Filed Herewith
	1.1	**	Form of Underwriting Agreement
	2.1		Form of Share Exchange Agreement dated January 23, 2014 by and among Thompson Designs, Inc., BioPharmX, Inc. and BioPharmX, Inc. Stockholders	8-K	000-54871	1/27/2014	2.1
	3.1		Certificate of Incorporation	S-8	333-201708	1/26/2015	4.01
	3.2		Bylaws	S-8	333-201708	1/26/2015	4.02
	4.1		Specimen Stock Certificate	S-8	333-201708	1/26/2015	4.03
	4.2	**	Amended and Restated Designations, Preferences and Rights of Series A Preferred Stock
	4.3		Certificate of Validation of Certificate of Designations, Preferences and Rights of Series A Preferred Stock filed with the Delaware Secretary of State on March 17, 2015	10-K	000-54871	3/30/2015	4.3
	4.4	**	Form of Underwriters' Warrant Agreement
	5.1	**	Opinion of Fenwick & West LLP as to legality of securities being registered
	10.1		Form of Stock Purchase Agreement between Kade Thompson and BioPharmX, Inc.	8-K	000-54871	1/27/2014	10.1
	10.2		Form of Employment Agreement between James Pekarsky and Thompson Designs, Inc.	8-K	000-54871	1/27/2014	10.2
	10.3		Form of Employment Agreement between Anja Krammer and Thompson Designs, Inc.	8-K	000-54871	1/27/2014	10.3
	10.4		Employment Agreement between Kin F. Chan, PhD and the Company	10-K	000-54871	3/30/2015	10.4
	10.5		Amended and Restated Collaboration and License Agreement dated March 1, 2013 between BioPharmX, Inc. and Iogen LLC	8-K	000-54871	1/27/2014	10.4
	10.6		Collaboration and Supply Agreement dated October 22, 2013 between BioPharmX, Inc. and Nutech Medical, Inc.	8-K	000-54871	1/27/2014	10.5
	10.7		Lease Agreement dated August 23, 2013 between Prologis, L.P. and BioPharmX, Inc.	8-K	000-54871	1/27/2014	10.6
	10.8		2014 Equity Incentive Plan	8-K	000-54871	1/27/2014	10.7
	10.9		Form of 2014 Equity Incentive Plan award agreement	S-8	333-201708	1/26/2015	4.05
	10.10		Form of Securities Purchase Agreement	8-K	000-54871	1/27/2014	10.8
	10.11		Form of Subscription Agreement	10-K	000-54871	3/31/14	10.11

					Incorporated by Reference

Exhibit Number					Incorporated by Reference			Filed Herewith
Exhibit Number			Description of Document	Form	File No.	Filing Date	Exhibit	Filed Herewith
	10.12		Investor Rights Agreement between the Company, Senior Management of the Company and the parties to Subscription Agreements	10-K	000-54871	3/31/14	10.12
	10.13		Promissory Note, dated December 21, 2012 between Thompson Designs, Inc. and Kade Thompson	10-K	000-54871	12/31/12	10.1
	10.14		Voting Agreement, dated October 24, 2014, between KIP Overseas Platform Expansion Fund, James Pekarsky and Anja Krammer	8-K	000-54871	11/12/2014	10.3
	10.15		Subscription Agreement, dated October 24, 2014, between the Company and KIP Overseas Expansion Platform Fund	10-K	000-54871	3/30/2015	10.15
	10.16	**	Form of Indemnification Agreement
	10.17	#**	Commercial Supply Agreement dated June 25, 2014 between Gregory Pharmaceutical Holdings, Inc. d/b/a UPM Pharmaceuticals and BioPharmX, Inc.
	16.1		Letter of Silberstein Ungar, PLLC to the SEC dated January 23, 2014	8-K	000-54871	1/27/2014	16.1
	21.1		Subsidiaries of the Registrant	10-K	000-54871	3/30/2015	21.1
	23.1		Consent of Burr Pilger Mayer, Inc., independent registered public accounting firm					X
	23.2	**	Consent of Fenwick & West LLP (included in Exhibit 5.1)
	24.1	**	Power of attorney
	101.INS		XBRL Instance Document					X
	101.SCH		XBRL Taxonomy Schema Linkbase Document					X
	101.CAL		XBRL Taxonomy Calculation Linkbase Document					X
	101.DEF		XBRL Taxonomy Definition Linkbase Document					X
	101.LAB		XBRL Taxonomy Labels Linkbase Document					X
	101.PRE		XBRL Taxonomy Presentation Linkbase Document					X


Large accelerated filer o		Accelerated filer o		Non-accelerated filer o (Do not check if a smaller reporting company)		Smaller reporting company ý

	Per Share	Total

Public offering price	$	$
Underwriting discount(1)	$	$
Proceeds before expenses, to us	$	$

		Page

PROSPECTUS SUMMARY		1
THE OFFERING		8
RISK FACTORS		12
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS		51
INDUSTRY AND MARKET DATA		52
USE OF PROCEEDS		53
DIVIDEND POLICY		54
COMMON SHARE PRICE RANGE		55
CAPITALIZATION		56
DILUTION		58
SELECTED CONSOLIDATED FINANCIAL DATA		60
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		62
BUSINESS		73
MANAGEMENT		109
EXECUTIVE COMPENSATION		115
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS		123
PRINCIPAL STOCKHOLDERS		126
DESCRIPTION OF CAPITAL STOCK		129
SHARES ELIGIBLE FOR FUTURE SALE		134
MATERIAL U.S. FEDERAL INCOME AND ESTATE TAX CONSEQUENCES TO NON-U.S. HOLDERS		136
UNDERWRITING		141
LEGAL MATTERS		150
EXPERTS		150
WHERE YOU CAN FIND MORE INFORMATION		150
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS		F-1

Period	High		Low

Fiscal Year Ended December 31, 2014:
First Quarter (from March 3, 2014)	$	0.15	$	0.15
Second Quarter		0.15		0.15
Third Quarter		3.00		0.15
Fourth Quarter		3.50		2.01
Month Ended January 31, 2015	$	3.00	$	2.75
Fiscal Year Ending January 31, 2016:
First Quarter	$	3.50	$	2.00
Second Quarter (through June 15, 2015)	$	4.50	$	2.50



		Title					Patent Number

		Methods and pharmaceutical compositions for oral delivery of molecular iodine					US 5,885,592

		Stabilized oral pharmaceutical composition containing iodide and iodate and method					US 6,248,335

		Non-staining topical iodine composition and method					US 6,432,426

		Method for the eradication of pathogens including S. Aureus and antibiotic resistant microbes from the upper respiratory tract of mammals and for inhibiting the activation of immune cells					US 8,303,994

		Methods for inhibiting the activation of immune cells					US 8,691,290


Delaware (State or other jurisdiction of incorporation or organization)		2834 (Primary Standard Industrial Classification Code Number)		59-3843182 (I.R.S. Employer Identification Number)


Copies to:
Robert A. Freedman, Esq. Niki Fang, Esq. Fenwick & West LLP 801 California Street Mountain View, CA 94041 (650) 988-8500		David B. Allen David C. Lee K&L Gates LLP 1 Park Plaza Twelfth Floor Irvine, CA 92614

Three months ended April 30,									One month ended January 31,									Year ended December 31,

2015		2014		Change		%			2015		2014		Change		%			2014		2013		Change		%
(Unaudited)				($ in thousands)							(Unaudited)
									($ in thousands)
$	1,076	$	540	$	536		99	%	$	365	$	103	$	262		254	%	$	2,519	$	671	$	1,848		275	%

	April 30, 2015			January 31, 2015		December 31, 2014

Current assets	$	1,372		$	1,705	$	2,520
Current liabilities		2,674			1,557		1,367

Working (deficit) capital	$	(1,302	)	$	148	$	1,153

			Year ended December 31,

	Month ended January 31, 2015		Year ended December 31,
	Month ended January 31, 2015		2014		2013
James R. Pekarsky	$	65,000	$	59,000	$	112,000
Anja Krammer		81,000		75,000		11,000
Kin F. Chan, PhD		72,000		65,000		2,000

	$	218,000	$	199,000	$	125,000

Underwriters		Number of Shares

CRT Capital Group LLC
Feltl and Company, Inc.
Newport Coast Securities, Inc.

Total			3,333,334

	Per Share	No Exercise	Full Exercise

Public offering price	$	$	$
Underwriting discount (7%)	$	$	$
Proceeds, before expenses, to us	$	$	$

		Page

Audited Annual Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm			F-2
Audited Financial Statements:
Consolidated Balance Sheets			F-3
Consolidated Statements of Operations and Comprehensive Loss			F-4
Consolidated Statements of Convertible Redeemable Preferred Stock and Stockholders' Deficit			F-5
Consolidated Statements of Cash Flows			F-6
Notes to Consolidated Financial Statements			F-7
Unaudited Interim Condensed Consolidated Financial Statements:
Condensed Consolidated Financial Statements:
Condensed Consolidated Balance Sheets as of April 30, 2015 and January 31, 2015			F-26
Condensed Consolidated Statement of Operations and Comprehensive Loss for the three months ended April 30, 2015 and 2014			F-27
Condensed Consolidated Statement of Cash Flows for the three months ended April 30, 2015 and 2014			F-28
Notes to Condensed Consolidated Financial Statements			F-29


/s/ Burr Pilger Mayer, Inc.
San Jose, California April 20, 2015

Description		Estimated Useful Life

Furniture		5 and 7
Laboratory and manufacturing equipment		5
Computer & network equipment		3
Software		3


Feltl and Company		Newport Coast Securities, Inc.

	As of January 31, 2015

	Estimated Useful Life	Gross Value		Accumulated Amortization			Net Value
Intangible assets	5 years	$	150	$	(1	)	$	149

	Options Outstanding						Options Vested and Exercisable

Range of Exercise Price	Number Outstanding		Weighted Average Remaining Contractual Life (in Years)		Weighted Average Exercise Price		Number Vested and Exercisable		Weighted Average Exercise Price
$0.05 - $0.35		1,548,252		7.83	$	0.21		829,925	$	0.17
$1.00		130,000		8.87	$	1.00		64,374	$	1.00
$1.85		881,000		9.66	$	1.85		125,000	$	1.85
$2.75		130,000		9.95	$	2.75		—		—

		2,689,252		8.58	$	0.91		1,019,299	$	0.43

				Year ended December 31,

	Month ended January 31, 2015			Year ended December 31,
	Month ended January 31, 2015			2014			2013
Expected volatility		82.1	%		82.2	%	82.1%
Expected term in years		6.0			6.0		5.51 - 6.08
Risk-free interest rate		1.56	%		1.74	%	0.61 - 1.62%
Expected dividend yield		—	%		—	%	—%

	April 30, 2015		January 31, 2015

	(in thousands)
Inventories:
Work in process	$	80	$	61
Finished goods		11		63
Channel inventory		124		36

Total	$	215	$	160

	April 30, 2015		January 31, 2015

	(in thousands)
Prepaid expenses and other current assets:
Deferred offering costs	$	490	$	57
Other		182		182

Total	$	672	$	239

	April 30, 2015		January 31, 2015

	(in thousands)
Accrued expenses and other current liabilities:
Professional service fees	$	209	$	—
Marketing		72		—
Deferred revenue		51		6
Deferred rent		43		49
Other		42		4

Total	$	417	$	59


Nine months remaining in fiscal year 2016	$	217
Fiscal year 2017		246

Total	$	463

	Options Outstanding						Options Vested and Exercisable

Range of Exercise Price	Number Outstanding		Weighted Average Remaining Contractual Life (in Years)		Weighted Average Exercise Price		Number Vested and Exercisable		Weighted Average Exercise Price
$0.05 - $0.25		819,419		3.37	$	0.13		606,293	$	0.09
$0.26 - $1.00		692,542		8.31	$	0.47		320,462	$	0.49
$1.01 - $3.00		1,241,000		9.59	$	2.19		182,915	$	1.90

		2,752,961		7.41	$	1.14		1,109,670	$	0.51

	Amount Paid or to be Paid

SEC registration fee	$	2,394
FINRA filing fee		3,590
Initial NYSE MKT listing fee		70,000
Printing and engraving expenses		150,000
Legal fees and expenses		866,000
Accounting fees and expenses		88,000
Transfer agent and registrar fees and expenses		2,500
Miscellaneous expenses		17,516

Total	$	1,200,000


		BIOPHARMX CORPORATION
		By:		/s/ JAMES PEKARSKY James Pekarsky Chief Executive Officer, Chief Financial Officer and Chairman of the Board of Directors (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)

Signature		Title	Date


/s/ JAMES PEKARSKY James Pekarsky		Chief Executive Officer, Chief Financial Officer and Chairman of the Board of Directors (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)	June 16, 2015
/s/ ANJA KRAMMER Anja Krammer		President and Director	June 16, 2015
* Ping Wang		Director	June 16, 2015
* Michael Hubbard		Director	June 16, 2015
* Stephen Morlock		Director	June 16, 2015
*By	/s/ ANJA KRAMMER Anja Krammer