SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2016

Sales to certain of our customers during 2016 and 2015 accounting for 10% or more of our annual product sales, whether the product shipment was recognized immediately as a sales or as a deferred sale, is presented below. Sales to customers designated with an ” * ” accounted for less than 10% of our annual product sales.

Customer	2016			2015
Rite Aid Corporation		55	%		54	%
Cardinal Health, Inc.		13	%		14	%
McKesson Corporation		10	%		*

Trade accounts receivable from certain of our customers at December 31, 2016 and 2015 accounting for 10% or more of our gross accounts receivable is presented below. Trade accounts receivable from customers designated with an ” ** ” accounted for less than 10% of our gross trade accounts receivable.

Customer	2016			2015
AmerisourceBergen Corporation		35	%		**
McKesson Corporation		24	%		11	%
Cardinal Health, Inc.		19	%		**
The Kroger Co.		18	%		**
Rite Aid Corporation		**			68	%

Estimated Lives of Major Classification of Depreciable Assets

The estimated useful lives of the major classification of depreciable assets are:

Building and improvements			10 - 40 years
Land and improvements			20 - 40 years
Machinery and equipment			7 - 10 years
Scientific equipment			5 - 10 years
Computer hardware and software			3 - 10 years

Non-Cash Share-Based Compensation Expense

Our share-based compensation expense recognized in the Company’s results of operations from all types of instruments issued comprised the following (in thousands):

	Year ended
	December 31,
	2016		2015
Research and development:
Stock option awards	$	167	$	158
RSU awards		-		-
	$	167	$	158

Selling, general and administrative:
Stock option awards		301		384
RSU awards		143		95
	$	444	$	479

Total share-based compensation expense	$	611	$	637

Computation of Diluted Earnings (loss) Per Share

A reconciliation of the numerators and denominators of basic and diluted EPS consisted of the following (in thousands, except per share data):

	Years ended December 31,
	2016		2015
EPS – basic
Numerator: net loss	$	(7,388)	$	(4,989)
Denominator (weighted):
Common shares		11,834		10,777
Vested RSUs		36		19
Basic weighted average shares outstanding		11,870		10,796
EPS - basic	$	(0.62)	$	(0.46)

EPS – assuming dilution
Numerator: net loss	$	(7,388)	$	(4,989)
Denominator (weighted):
Common shares		11,834		10,777
Vested RSUs		36		19
Stock options		-		-
Common stock warrants		-		-
Diluted weighted average shares outstanding		11,870		10,796
EPS - diluted	$	(0.62)	$	(0.46)

Excluded dilutive securities:
Common stock issuable (non weighted):
Stock options		1,397		1,198
Common stock warrants		60		60
Total excluded potentially dilutive shares		1,457		1,258