Quarterly Financial Information (Unaudited)

12 Months Ended

Dec. 31, 2012

Quarterly Financial Information (Unaudited) [Abstract]

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

QUARTERLY FINANCIAL INFORMATION (UNAUDITED):

The following table summarizes selected quarterly data for the years ended December 31, 2012 and 2011:

	First Quarter			Second Quarter		Third Quarter			Fourth Quarter			Full Year
2012
Net product sales	$	3,118,632		$	7,361,829	$	5,620,889		$	6,129,123		$	22,230,473
Royalties	680,377			834,211		1,017,609			927,655			$	3,459,852
Other revenues	34,532			34,496		34,540			34,484			$	138,052
Net revenues	3,833,541			8,230,536		6,673,038			7,091,262			25,828,377
Gross profit	1,830,555			3,764,690		3,486,246			3,958,622			$	13,040,113
Operating expenses	3,105,003			2,082,428		2,045,675			2,997,499			10,230,605
Income (loss) from operations	(1,274,448		)	1,682,262		1,440,571			961,123			$	2,809,508
Unrealized gain (loss) on stock warrants	6,259,367			205,700		(1,065,498		)	1,595,530			$	6,995,099
Net income (loss)	4,954,393			1,942,810		388,729			2,631,341			$	9,917,273
Income (loss) per common share:
Basic	$	0.06		$	0.02	$0.00			$	0.03		$	0.11
Diluted	$	(0.02	)	$	0.02	$0.00			$	0.01		$	0.03
Market price per share:
High	$	2.96		$	0.77	$	1.15		$	1.23		$	2.96
Low	$	0.62		$	0.61	$	0.68		$	0.55		$	0.55
2011
Net product revenues	$	3,464,944		$	4,942,085	$	4,129,112		$	5,441,467		$	17,977,608
Royalties	600,813			686,719		782,694			900,754			$	2,970,980
Other revenues	8,428,582			13,615,315		34,888			34,648			$	22,113,433
Net revenues	12,494,339			19,244,119		4,946,694			6,376,869			43,062,021
Gross profit	10,459,501			16,242,031		1,822,410			2,846,714			$	31,370,656
Operating expenses	3,759,921			504,975		2,045,675			2,131,223			8,441,794
Income (loss) from operations	6,699,580			15,737,056		(595,090		)	1,087,316			$	22,928,862
Unrealized gain (loss) on stock warrants	(7,779,316		)	2,797,928		5,050,520			(2,233,675		)	$	(2,164,543	)
Net income (loss)	(1,186,887		)	18,314,195		4,417,241			(1,017,357		)	$	20,527,192
Income (loss) per common share:
Basic	$	(0.01	)	$	0.21	$	0.05		$	(0.01	)	$	0.24
Diluted	$	(0.01	)	$	0.16	$	(0.01	)	$	(0.01	)	$	0.22
Market price per share:
High	$	4.09		$	4.31	$	3.39		$	2.74		$	4.31
Low	$	2.07		$	2.90	$	1.92		$	1.78		$	1.78

*    The addition of earnings (loss) per share by quarter may not equal total earnings (loss) per share for the year.

The explanations for major variances from quarter to quarter for the year ended December 31, 2012 are:

1. During the first, third and fourth quarters, the Company recorded credits of $0.1 million, $0.1 million and $0.5 million, respectively, for reflecting reduction to to the sales return reserves for expired products that can no longer be returned.

2. The Company recorded severance expenses of $0.4 million related to the Reduction In Force in the first quarter of 2012 in operating expenses.

3. The Company recorded severance expenses of $0.9 millionrelated to the departure of two executive officers in the fourth quarter of 2012in operating expenses.

4. The Company recorded an expense for the impairment of long-lived assets of $0.9 millionin the fourth quarter of 2012in operating expenses.

5. In the fourth quarter of 2012 the Company reversed accruals in the amount of $0.2 million.

The explanations for major variances from quarter to quarter for the year ended December 31, 2011 are:

1. Other revenues in the first and second quarter of 2011 primarily reflects the amortization of the gain from the sale of the progesterone assets to Actavis of $8.5 million and $8.6 million, respectively; the amortization was completed as of June 30, 2011. In addition, in the second quarter of 2011, the $5.0 million milestone payment from Actavis was recognized for the filing of the PREGNANT Study NDA with the FDA which was also recorded in other revenue.

2. The Company recognized a one-time gain of $2.5 million on the U.S. sale of STRIANT to Actient in the second quarter of 2011 reported within operating expenses.

3. Strong positive results in the first two quarters of 2011 are due to the amortization of the gain from the sale of the progesterone assets to Actavis which commenced in the third quarter of 2010, as well as reduction in costs related to the elimination of the commercial sales organization, and amortization of intangible costs which also occurred in the third quarter of 2010, coupled with the receipt of the $5.0 million milestone payment in 2011.

4. In the fourth quarter of 2011, the Company reversed accruals in the amount of $0.2 million.