BALANCE SHEET ACCOUNT DETAIL

The composition of selected financial statement captions that comprise the accompanying Condensed Consolidated Balance Sheets are summarized below:

(a) Cash and Cash Equivalents and Marketable Securities

As of September 30, 2016 and December 31, 2015, our holdings included within “cash and cash equivalents” and “marketable securities” were at major financial institutions.

Our investment policy requires that investments in marketable securities be in only highly-rated instruments, which are primarily U.S. treasury bills or U.S. treasury-backed securities, and limited investments in securities of any single issuer. We maintain cash balances in excess of federally insured limits with reputable financial institutions. To a limited degree, the Federal Deposit Insurance Corporation ("FDIC") and other third parties insure these investments. However, these investments are not insured against the possibility of a complete loss of earnings or principal and are inherently subject to the credit risk related to the continued credit worthiness of the underlying issuer and general credit market risks. We manage such risks on our portfolio by investing in highly liquid, highly rated instruments, and limit investing in long-term maturity instruments.

The carrying amount of our equity securities, money market funds, bank certificates of deposits, and mutual funds approximates their fair value (utilizing Level 1 or Level 2 inputs – see Note 2(xiii)) because of our ability to immediately convert these instruments into cash with minimal expected change in value.

The following is a summary of our “cash and cash equivalents” and “marketable securities”:



											Marketable Securities
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cash and Cash Equivalents			Current		Long Term
September 30, 2016
Bank deposits	$	28,134	$	—	$	—	$	28,134	$	28,134		$	—	$	—
Money market funds	138,472		—		—		138,472		138,472			—		—
Bank certificates of deposits	5,246		—		—		5,246		4,999			247		—
Total cash and cash equivalents and marketable securities	$	171,852	$	—	$	—	$	171,852	$	171,605		$	247	$	—
December 31, 2015
Bank deposits	$	59,625	$	—	$	—	$	59,625	$	59,625		$	—	$	—
Money market funds	80,116		—		—		80,116		80,116			—		—
Bank certificates of deposits	245		—		—		245		—			245		—
Total cash and cash equivalents and marketable securities	$	139,986	$	—	$	—	$	139,986	$	139,741		$	245	$	—

As of September 30, 2016, none of these securities had been in a continuous unrealized loss position longer than one year.

(b) Property and Equipment, Net of Accumulated Depreciation

“Property and equipment, net of accumulated depreciation” consist of the following:



	September 30, 2016			December 31, 2015
Computer hardware and software	$	3,823		$	3,785
Laboratory equipment	622			608
Office furniture	354			355
Leasehold improvements	2,880			2,872
Property and equipment, at cost	7,679			7,620
(Less): Accumulated depreciation	(7,141		)	(6,702		)
Property and equipment, net of accumulated depreciation	$	538		$	918

Depreciation expense (included within “total operating costs and expenses” in the accompanying Condensed Consolidated Statements of Operations) for the nine months ended September 30, 2016 and 2015, was $0.4 million and $0.5 million, respectively.

In February 2016, the FASB issued ASU 2016-02, which amends the FASB Accounting Standards Codification and creates Topic 842, “Leases.” The new topic supersedes Topic 840, “Leases,” and requires lease assets and lease liabilities (including for operating leases) to be presented on the balance sheet at its "gross amount" and requires additional disclosures regarding lease arrangements. The guidance is effective for us beginning January 1, 2019, and mandates a "modified retrospective" transition method. We are currently assessing the impact this guidance will have on our consolidated financial statements. We presently do not have any capital lease arrangements, though we have several operating lease agreements that primarily relate to our principal executive office in Henderson, Nevada, and our research and development facility in Irvine, California, in addition to several other administrative office leases.

“Inventories” consist of the following:



	September 30, 2016			December 31, 2015
Raw materials	$	2,632		$	1,606
Work-in-process*	10,091			4,228
Finished goods	1,380			1,498
(Less:) Non-current portion of inventories included within "other assets" **	(6,800		)	(3,156		)
Inventories	$	7,303		$	4,176

* In January 2016, we received $3.4 million of ZEVALIN antibody materials for its future manufacture (representing strategic long-term supply).

** The "non-current" portion of inventories is presented within "other assets" in the accompanying Condensed Consolidated Balance Sheet at September 30, 2016 and December 31, 2015, respectively. This value of $6.8 million at September 30, 2016 represents product that we expect to sell beyond September 30, 2017.

(d) Prepaid expenses and other assets

“Prepaid expenses and other assets” consist of the following:



	September 30, 2016		December 31, 2015
Prepaid operating expenses	$	2,702	$	3,507
Current portion of debt issuance costs*	—		—
Prepaid expenses and other assets	$	2,702	$	3,507

* Beginning January 1, 2016, our debt issuance costs (current and non-current portions) were retrospectively reclassified from “prepaid expenses and other assets” and "other assets" to a reduction of the carrying amount of “convertible senior notes” (i.e., contra-liability - see Note 14) within our accompanying Consolidated Balance Sheets, in accordance with the FASB-issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). These amounts were $1.7 million and $2.2 million (including current and non-current portions) as of September 30, 2016 and December 31, 2015, respectively.

(e) Other receivables

“Other receivables” consist of the following:



	September 30, 2016		December 31, 2015
Income tax receivable	$	1,264	$	1,301
Insurance receivable	350		7,100
Mundipharma promissory note	—		2,215
CASI note - short term*	1,500		—
Eagle receivable for services and support costs (Note 13)	1,896		—
Research and development expenses - reimbursements due	1,726		1,699
Other miscellaneous receivables	355		257
Other receivables	$	7,091	$	12,572

* This full balance was prospectively reclassified beginning March 31, 2016 to "other receivables" (presented within current assets on the accompanying Condensed Consolidated Balance Sheets) from "other assets" (presented within non-current assets) due to this note's maturity date of March 17, 2017 (i.e., within 12 months of September 30, 2016) - see Note 10.

(f) Intangible Assets and Goodwill

“Intangible assets, net of accumulated amortization and impairment charges” consist of the following:



			September 30, 2016
	Historical Cost		Accumulated Amortization			Foreign Currency Translation			Impairment			Net Amount		Full Amortization Period (months)	Remaining Amortization Period (months)
MARQIBO IPR&D (NHL and other novel indications)	$	17,600	$	—		$	—		$	—		$	17,600	n/a	n/a
EVOMELA distribution rights (1)	7,700		(296		)	—			—			7,404		156	150
BELEODAQ distribution rights	25,000		(4,219		)	—			—			20,781		160	133
MARQIBO distribution rights	26,900		(11,783		)	—			—			15,117		81	42
FOLOTYN distribution rights (2)	118,400		(37,767		)	—			—			80,633		152	74
ZEVALIN distribution rights – U.S.	41,900		(33,214		)	—			—			8,686		123	30
ZEVALIN distribution rights – Ex-U.S.	23,490		(14,159		)	(3,818		)	—			5,513		96	42
FUSILEV distribution rights (3)	16,778		(9,618		)	—			(7,160		)	—		56	0
FOLOTYN out-license (4)	27,900		(11,151		)	—			(1,023		)	15,726		110	70
Total intangible assets	$	305,668	$	(122,207	)	$	(3,818	)	$	(8,183	)	$	171,460

(1)

The FDA approval of EVOMELA in March 2016 triggered a $6 million payment due to CyDex Pharmaceuticals, Inc. (a wholly-owned subsidiary of Ligand Pharmaceuticals Incorporated ("Ligand")). This event also resulted in a reclassification of our $7.7 million "EVOMELA IPR&D" to "EVOMELA distribution rights" due to our ability to begin its commercialization with this FDA approval. Amortization commenced on April 1, 2016, in accordance with our capitalization policy for intangible assets.


(2)	Beginning June 2016, we adjusted the amortization period of our FOLOTYN distribution rights to November 2022 from March 2025, representing the period through which we expect to have patent protection from generic competition (see Note 16(g)).

(3)

On February 20, 2015, the U.S. District Court for the District of Nevada found the patent covering FUSILEV to be invalid, which was upheld on appeal. On April 24, 2015, Sandoz began to commercialize a generic version of FUSILEV. This represented a “triggering event” under applicable GAAP in evaluating the value of our FUSILEV distribution rights as of March 31, 2015, resulting in a $7.2 million impairment charge (non-cash) in the first quarter of 2015. We accelerated amortization expense recognition in 2015 for the then remaining net book value of FUSILEV distribution rights.

(4)

On May 29, 2013, we amended our FOLOTYN collaboration agreement with Mundipharma International Corporation Limited ("Mundipharma"). As a result of the amendment, Europe and Turkey were excluded from Mundipharma’s commercialization territory, and their royalty rates and milestone payments to us were modified. This constituted a change under which we originally valued the FOLOTYN out-license as part of business combination accounting, resulting in an impairment charge (non-cash) of $1.0 million in the second quarter of 2013.



			December 31, 2015
	Historical Cost		Accumulated Amortization			Foreign Currency Translation			Impairment			Net Amount
MARQIBO IPR&D (NHL and other novel indications)	$	17,600	$	—		$	—		$	—		$	17,600
EVOMELA IPR&D	7,700		—			—			—			7,700
BELEODAQ distribution rights	25,000		(2,812		)	—			—			22,188
MARQIBO distribution rights	26,900		(8,544		)	—			—			18,356
FOLOTYN distribution rights	118,400		(29,474		)	—			—			88,926
ZEVALIN distribution rights – U.S.	41,900		(30,608		)	—			—			11,292
ZEVALIN distribution rights – Ex-U.S.	23,490		(12,632		)	(4,353		)	—			6,505
FUSILEV distribution rights	16,778		(9,618		)	—			(7,160		)	—
FOLOTYN out-license	27,900		(9,109		)	—			(1,023		)	17,768
Total intangible assets	$	305,668	$	(102,797	)	$	(4,353	)	$	(8,183	)	$	190,335

Intangible asset amortization expense recognized during the nine months ended September 30, 2016 was $19.1 million, as compared to $27.9 million of amortization and impairment expense recognized in the prior year period (of which $7.2 million relates to the impairment of the FUSILEV distribution rights, and the remaining $20.7 million relates to scheduled amortization expense).

Estimated intangible asset amortization expense for the remainder of 2016 and the five succeeding fiscal years and thereafter is as follows:



Years Ending December 31,
Remainder of 2016	$	6,909
2017	27,635
2018	27,635
2019	25,029
2020	19,740
2021	18,266
2022 and thereafter	28,646
	$	153,860

“Goodwill” is comprised of the following:



	September 30, 2016			December 31, 2015
Acquisition of Talon (MARQIBO rights)	$	10,526		$	10,526
Acquisition of ZEVALIN Ex-U.S. distribution rights	2,525			2,525
Acquisition of Allos (FOLOTYN rights)	5,346			5,346
Foreign currency exchange translation effects	(380		)	(437		)
Goodwill	$	18,017		$	17,960

(g) Other assets

“Other assets” are comprised of the following:



	September 30, 2016		December 31, 2015
Equity securities and secured promissory note - CASI (see Note 10)*	$	9,146	$	6,689
Supplies and deposits	181		185
2018 Convertible Notes issuance costs (excluding current portion)**	—		—
Executive officer life insurance – cash surrender value	11,845		9,181
Inventories - non-current portion	6,800		3,156
Other miscellaneous assets	43		—
Other assets	$	28,015	$	19,211

* These equity securities were excluded from “marketable securities” (see Note 3(a)) due to our intent to hold these securities for at least one year beyond September 30, 2016, as discussed in Note 10. The “unrealized gain on available-for-sale securities" within the Condensed Consolidated Statements of Comprehensive Loss, totaled $3.0 million, net of income tax, for the nine months ended September 30, 2016.

** Beginning January 1, 2016, our debt issuance costs (current and non-current portions) were retrospectively reclassified from “prepaid expenses and other assets” and "other assets" to a reduction of the carrying amount of “convertible senior notes” (i.e., contra-liability - see Note 14) within our accompanying Consolidated Balance Sheets, in accordance with ASU 2015-03. These amounts were $1.7 million and $2.2 million (including current and non-current portions) as of September 30, 2016 and December 31, 2015, respectively.

(h) Accounts payable and other accrued liabilities

“Accounts payable and other accrued liabilities” are comprised of the following:



	September 30, 2016		December 31, 2015
Trade accounts payable and other accrued liabilities	$	27,180	$	26,684
Accrued rebates	10,130		18,166
Accrued product royalty	5,286		4,908
Allowance for returns	2,237		1,394
Accrued data and distribution fees	2,996		1,830
Accrued GPO administrative fees	342		1,058
Accrued inventory management fee	323		498
Allowance for chargebacks	1,483		2,001
Accounts payable and other accrued liabilities	$	49,977	$	56,539

Amounts presented within “accounts payable and other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets specifically for GTN estimates (see Note 2(i)) are as follows:



	Rebates and Chargebacks			Data and Distribution, GPO Fees, and Inventory Management Fees			Returns
Balance as of December 31, 2014	$	45,822		$	8,284		$	1,135
Add: provisions	75,498			15,928			1,486
(Less): credits or actual allowances	(101,153		)	(20,826		)	(1,227		)
Balance as of December 31, 2015	20,167			3,386			1,394
Add: provisions	67,390			10,235			1,558
(Less): credits or actual allowances	(75,944		)	(9,960		)	(715		)
Balance as of September 30, 2016	$	11,613		$	3,661		$	2,237

(i) Deferred revenue

Deferred revenue (current and non-current) is comprised of the following:



	September 30, 2016		December 31, 2015
Mundipharma deferred revenue (see Note 11)	$	1,700	$	—
EVOMELA deferred revenue*	3,094		—
FUSILEV deferred revenue**	—		6,083
Dr. Reddy's out-license (see Note 16(b)(iii))	405		430
Deferred revenue	$	5,199	$	6,513

*We commercialized EVOMELA beginning in April 2016, and have deferred revenue recognition (see Note 2(i)(a)) for any product shipped to our distributors, but not ordered and received by end-users as of September 30, 2016.

**In the third quarter of 2015, we deferred revenue recognition related to certain FUSILEV product shipments that did not meet our revenue recognition criteria (see Note 2(i)(a)), aggregating $9.9 million. Specifically, this deferral resulted from our inability to concurrently estimate future rebate values (with requisite precision) offered to our customers in order to compete with generic products. During the fourth quarter of 2015, we recognized $3.8 million for these third quarter shipments, and $6.1 million remained deferred as of December 31, 2015. In the first quarter of 2016, this $6.1 million of deferred revenue was recognized in full.

(j) Other long-term liabilities

Other long-term liabilities are comprised of the following:



	September 30, 2016		December 31, 2015
Accrued executive deferred compensation	$	7,797	$	6,458
Deferred rent (non-current portion)	193		248
Clinical study holdback costs, non-current	44		—
Other tax liabilities	738		738
Other long-term liabilities	$	8,772	$	7,444