0001493152-18-012358.txt : 20180820 0001493152-18-012358.hdr.sgml : 20180820 20180820164632 ACCESSION NUMBER: 0001493152-18-012358 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 48 CONFORMED PERIOD OF REPORT: 20170630 FILED AS OF DATE: 20180820 DATE AS OF CHANGE: 20180820 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ProPhase Labs, Inc. CENTRAL INDEX KEY: 0000868278 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 232577138 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-21617 FILM NUMBER: 181028668 BUSINESS ADDRESS: STREET 1: 621 N. SHADY RETREAT ROAD CITY: DOYLESTOWN STATE: PA ZIP: 18901 BUSINESS PHONE: 2153450919 MAIL ADDRESS: STREET 1: 621 N. SHADY RETREAT ROAD CITY: DOYLESTOWN STATE: PA ZIP: 18901 FORMER COMPANY: FORMER CONFORMED NAME: QUIGLEY CORP DATE OF NAME CHANGE: 19930328 10-Q/A 1 form10-qa.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q/A

(Amendment No. 1)

(Mark One)

 

[X]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2017

 

OR

 

  [  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT

 

For the transition period from ______________ to ______________

 

Commission file number 0-21617

 

ProPhase Labs, Inc.

 

(Exact name of registrant as specified in its charter)

 

Delaware   23-2577138
(State or other jurisdiction of   (I.R.S. Employer
incorporation or organization)   Identification No.)

 

621 N. Shady Retreat Road, Doylestown, Pennsylvania   18901
(Address of principal executive office)   (Zip Code)

 

(215) 345-0919

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or shorter period that the registration was required to submit and post such files). Yes [X] No [  ]

 

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 definition of “large accelerated filer”, “accelerated filer”, “non-accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer [  ] Accelerated filer [  ] Non-accelerated filer [  ] Smaller reporting company [X]
Emerging growth company [  ]      

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [  ] No [X]

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

Class   Outstanding at August 11, 2017
Common Stock, $0.0005 par value   16,166,796

 

 

 

   
 

 

ProPhase Labs, Inc. and Subsidiaries

 

TABLE OF CONTENTS

 

     PAGE
PART I. FINANCIAL INFORMATION  
     
Item 1. Financial Statements 4
     
  Condensed Consolidated Balance Sheets as of June 30, 2017 (unaudited) and December 31, 2016 4
     
  Condensed Consolidated Statements of Operations for the Three Months Ended and Six Months Ended June 30, 2017 and 2016 (unaudited) 5
     
  Condensed Consolidated Statement of Stockholders’ Equity for the Six Months Ended June 30, 2017 (unaudited) 6
     
  Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2017 and 2016 (unaudited) 7
     
  Notes to Condensed Consolidated Financial Statements (unaudited) 8
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 23
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 31
     
Item 4. Controls and Procedures 31
     
PART II. OTHER INFORMATION  
 
Item 1. Legal Proceedings 32
     
Item 1A. Risk Factors 32
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 33
     
Item 3. Defaults Upon Senior Securities 33
     
Item 4. Mine Safety Disclosures 33
     
Item 5. Other Information 33
     
Item 6. Exhibits 34
     
Signatures 35
   
Certifications

 

2
 

 

explanatory note

 

On August 10, 2018, the Company’s management, after consultation and discussions with EisnerAmper LLP, the Company’s independent registered public accounting firm, and the Audit Committee of the Board of Directors, concluded that the Company’s previously issued audited consolidated financial statements for the fiscal year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K for such period and unaudited condensed consolidated financial statements for the fiscal quarters ended March 31, 2017, June 30, 2017, September 30, 2017 and March 31, 2018 (collectively with the fiscal year ended December 31, 2017, the “Restated and Revised Periods”) included in the Company’s Quarterly Reports on Form 10-Q for such periods should no longer be relied upon, and determined that these financial statements will be restated due to the identification of certain accounting errors related to income tax accounting.

 

The Company has determined that it miscalculated its income tax benefit by incorrectly utilizing certain net operating losses without taking into account the statutory limitation imposed by the State of Pennsylvania, which resulted in an overstatement of net income as discussed below. The Company also incorrectly determined the amount of income tax benefit allocable to continuing operations, which resulted in an overstatement of income from continuing operations, and an equal understatement of the gain on sale of discontinued operations, presented net of taxes, which had no impact on net income.

 

Based on its review, the Company has determined that its income tax expense was understated and its net income was overstated by approximately $1.2 million for the fiscal year ended December 31, 2017. Concurrently with the filing of this Form10-Q/A, the Company is filing an amendment on Form 10-K/A to its Annual Report on Form 10-K for the fiscal year ended December 31, 2017 to restate the audited consolidated financial statements included in the Form 10-K and amendments on Form 10-Q/A to its Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2017, June 30, 2017, September 30, 2017 and March 31, 2018 to correct the errors described above.

 

The corrections to the Restated and Revised Periods, which we refer to herein collectively as the “Restatement”, were prepared following an independent review by the Company.

 

Description of the Restatement

 

In completing our Federal and State income tax preparation review procedures for filing of the Federal and State income tax returns for the fiscal year ended December 31, 2017 during the second quarter of fiscal 2018, the Company identified an error in the accounting treatment of state Net Operating Loss (NOL) limitations which resulted in understatement of state income tax liability and expense of approximately $0.7 million and a corresponding overstatement net income for the six months ended June 30, 2017. We also identified an error in our treatment of the reversal of certain valuation allowances in 2017 and their allocation between continuing and discontinued operations resulting in the overstatement of the tax benefit allocated to continuing operations and an equal overstatement of the tax provision for discontinued operations of approximately $16.3 million for the six months ended June 30, 2017, and the understatement of the tax benefit allocated to continuing operations and an equal understatement of the tax provision for discontinued operations of approximately $0.6 million for the three months ended June 30, 2017, which had no further impact on net income.

 

For additional information regarding the corrections to the financial statements in the Restated and Revised Periods, see Notes 2, 4 and 7 of the Condensed Consolidated Financial Statements included in Part I, Item 1, “Financial Statements”.

 

Internal Controls Over Financial Reporting

 

As a result of the Restatement, we also concluded that we had a material weakness related to our internal control over financial reporting. For more information regarding management’s assessment of internal control over financial reporting and disclosure controls and procedures, as well as the related remediation actions, refer to Item 4 “Controls and Procedures” in this Quarterly Report on Form 10-Q/A.

 

Items Amended by this Form 10-Q/A

 

This Form 10-Q/A amends and restates the entire contents of the original Form 10-Q. The portions of this Form 10-Q/A that have been revised to give effect to the Restatement and matters related thereto are as follows:

 

Part I, Item 1. Financial Statements
Part I, Item 2. Management’s Discussions and Analysis of Financial Condition and Results of Operations
Part I, Item 4. Controls and Procedures

 

In addition, the Company’s Chief Executive Officer and Principal Accounting Officer have provided new certifications dated as of the date of this filing in connection with this Form 10-Q/A.

 

Except as described above, no other changes have been made to the Company’s Quarterly Report on Form 10-Q ended June 30, 2017 (the “Original Filing”). This Form 10-Q/A speaks as of the date of the Original Filing and does not reflect events that may have occurred after the date of the Original Filing or modify or update any disclosures that may have been affected by subsequent events.

 

3
 

 

PART I. FINANCIAL INFORMATION

 

Item 1. Financial Statements.

 

ProPhase Labs, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except share and per share amounts)

 

    June 30, 2017     December 31, 2016  
    (unaudited)        
  (as restated)        
ASSETS            
Cash and cash equivalents (Note 3)   $ 37,280     $ 441  
Accounts receivable, net (Note 3)     1,835       5,770  
Inventory (Note 3)     1,966       2,736  
Prepaid expenses and other current assets (Note 3)     849       680  
Assets held for sale (Note 4)     294       -  
Total current assets     42,224       9,627  
                 
Property, plant and equipment, net of accumulated depreciation of $5,274 and $5,134, respectively (Note 3)     2,875       3,175  
Escrow receivable     5,000       -  
Total assets   $ 50,099     $ 12,802  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
LIABILITIES                
Secured promissory notes, net (Note 5)   $ -     $ 1,490  
Accounts payable     916       2,156  
Accrued advertising and other allowances (Note 3)     1,551       2,805  
Other current liabilities     289       389  
Due to Mylan, Inc. and affiliates (Note 4)     717       -  
Income taxes payable     751       -  
Total current liabilities     4,224       6,840  
                 
COMMITMENTS AND CONTINGENCIES (Note 8)     -       -  
                 
STOCKHOLDERS' EQUITY                
Preferred stock, authorized 1,000,000, $.0005 par value, no shares issued (Note 6)     -       -  
Common stock, $.0005 par value; authorized 50,000,000;issued: 26,4454,593 and 26,313,593 shares, respectively (Note 6)     13       13  
Additional paid-in-capital     56,567       56,378  
Retained earnings (Accumulated deficit)     21,895       (19,687 )
Treasury stock, at cost, 10,294,797 and 9,232,817 shares (Note 6)     (32,600 )     (30,742 )
Total stockholders' equity     45,875       5,962  
Total liabilities and stockholders' equity   $ 50,099     $ 12,802  

 

See accompanying notes to condensed consolidated financial statements

 

4
 

 

ProPhase Labs, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

 

   Three Months Ended   Six Months Ended 
   June 30, 2017   June 30, 2016   June 30, 2017   June 30, 2016 
   (as restated)       (as restated)     
Net sales (Note 3)  $1,905   $1,021   $2,676   $2,037 
                     
Cost of sales (Note 3)   1,765    993    2,451    1,723 
                     
Gross profit   140    28    225    314 
                     
Operating expenses (Note 3):                    
Sales and marketing   221    236    336    534 
Administration   1,306    943    2,387    2,146 
Research and development   224    121    258    160 
Total operating expenses   1,751    1,300    2,981    2,840 
Other income (expense), net   151    (53)   97    (105)
                     
Loss from continuing operations before income taxes (Note 7)   (1,460)   (1,325)   (2,659)   (2,631)
                     
Income tax benefit from continuing operations   574    -    1,027    - 
                     
Loss from continuing operations   (886)   (1,325)   (1,632)   (2,631)
                     
Discontinued operations (Note 4):                    
Income (loss) from discontinued operations   (835)   198    530    168 
Gain on sale of discontinued operations, net of taxes   (584)   -    42,684    - 
                     
Income (loss) from discontinued operations   (1,419)   198    43,214    168 
                     
Net income (loss)  $(2,305)  $(1,127)  $41,582   $(2,463)
                     
Basic earnings (loss) per share:                    
Loss from continuing operations  $(0.06)  $(0.08)  $(0.10)  $(0.15)
Income (loss) from discontinued operations   (0.08)   0.01    2.54    0.01 
Net income (loss)  $(0.14)  $(0.07)  $2.44   $(0.14)
                     
Diluted earnings (loss) per share:                    
Loss from continuing operations  $(0.06)  $(0.08)  $(0.10)  $(0.15)
Income (loss) from discontinued operations   (0.08)   0.01    2.44    0.01 
Net income (loss)  $(0.14)  $(0.07)  $2.34   $(0.14)
                     
Weighted average common shares outstanding:                    
Basic   16,943    17,081    17,030    17,081 
Diluted   16,943    17,081    17,680    17,081 

 

See accompanying notes to condensed consolidated financial statements

 

5
 

 

ProPhase Labs, Inc. and Subsidiaries

Condensed Consolidated Statement of

Stockholders’ Equity

(in thousands, except share data)

(unaudited)

 

   Common Stock Shares Outstanding,
Net of Shares of Treasury Stock
   Par Value   Additional Paid-In
Capital
   Retained Earnings (Accum.
Deficit)
   Treasury
Stock
   Total 
                         
Balance at December 31, 2016   17,080,776   $13   $56,378   $(19,687)  $(30,742)  $5,962 
Net income (as restated)   -    -    -    41,582    -    41,582 
Proceeds from warrants exercised   51,000    -    69    -    -    69 
Proceeds from options exercised   90,000    -    102    -    -    102 
Treasury stock acquired   (1,061,980)   -    -    -    (1,858)   (1,858)
Share-based compensation expense   -    -    18    -    -    18 
Tax benefits from exercise of warrants and options   -    -    43    -    -    43 
Tax benefit allowance   -    -    (43)   -    -    (43)
Balance at June 30, 2017 (as restated)   16,159,796   $13   $56,567   $21,895   $(32,600)  $45,875 

 

See accompanying notes to condensed consolidated financial statements

 

6
 

 

ProPhase Labs, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

   Six Months Ended 
   June 30, 2017   June 30, 2016 
   (as restated)     
         
Cash flows from operating activities:          
Net income (loss)  $41,582   $(2,463)
Adjustments to reconcile net income (loss) to net cash (used in) operating activities:          
Gain on sale of assets, net of taxes   (42,684)   - 
Change in valuation allowance, income tax   (1,027)   - 
Depreciation and amortization   419    213 
Amortization of loan origination and warrant expenses   10    12 
Share-based compensation expense   18    1 
Changes in operating assets and liabilities:          
Accounts receivable   3,935    2,199 
Inventory   770    (18)
Prepaid and other assets   (169)   703 
Accounts payable   (1,240)   382 
Accrued advertising and other allowances   (1,254)   (621)
Due to Mylan, Inc. and affiliates   717    - 
Other current liabilities   (1,450)   (596)
Assets held for sale, discontinued operations   (294)   - 
Net cash used in operating activities   (667)   (188)
           
Cash flows from investing activities:          
Net proceeds from the sale of asset   40,825    - 
Capital expenditures   (132)   (327)
Net cash provided by (used in) investing activities   40,693    (327)
           
Cash flows from financing activities:          
Payments to retire Notes   (1,500)   - 
Payments to acquire treasury stock   (1,858)   - 
Proceeds from exercise of warrants and stock options   171    - 
Net cash used in financing activities   (3,187)   - 
           
Net increase (decrease) in cash and cash equivalents   36,839    (515)
           
Cash and cash equivalents at beginning of period   441    1,664 
           
Cash and cash equivalents at end of period  $37,280   $1,149 
           
Supplemental disclosures of cash flow information:          
           
Interest paid  $54   $95 
Income taxes paid  $1,350   $- 
           
Non-cash investing activities          
Escrow receivable  $5,000   $- 

 

See accompanying notes to condensed consolidated financial statements

 

7
 

 

ProPhase Labs, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

 

Note 1 – Organization and Business

 

ProPhase Labs, Inc. (“we”, “us” or the “Company”) was initially organized in Nevada in July 1989. Effective June 18, 2015, we changed our state of incorporation from the State of Nevada to the State of Delaware. We are a manufacturer, marketer and distributor of a diversified range of health care and cold remedy products that are offered to the general public. We are also engaged in the research and development of potential over-the-counter (“OTC”) drug and natural base health products including supplements, personal care and cosmeceutical products.

 

Discontinued Operations

 

Prior to March 29, 2017, our flagship OTC drug brand was Cold-EEZE® and our principal product was Cold-EEZE® cold remedy zinc gluconate lozenges, proven in clinical studies to reduce the duration and severity of symptoms of the common cold. In addition to Cold-EEZE® cold remedy lozenges, we also marketed and distributed non-lozenge forms of our proprietary zinc gluconate formulation, (i) Cold-EEZE® cold remedy QuickMelts®, (ii) Cold-EEZE® Gummies and (iii) Cold-EEZE® cold remedy Oral Spray. Each of the Cold-EEZE® QuickMelts® and Gummies products are based on a proprietary zinc gluconate formulation in combination with certain (i) immune system support, (ii) energy, (iii) sleep and relaxation, and/or (iv) cold and flu symptom relieving active ingredients.

 

On January 6, 2017, we signed an asset purchase agreement (as amended, the “Asset Purchase Agreement”), by and among the Company, Meda Consumer Healthcare Inc. (“MCH”) and Mylan Inc. (together with MCH, “Mylan”), for the sale of assets by us to Mylan (see Note 4). The sale of assets (i) was subject to stockholder approval and other customary closing conditions and (ii) consisted principally of the sale of our intellectual property rights and other assets relating to our Cold-EEZE® brand and product line (collectively, referred to herein as the “Cold-EEZE® Business”) to Mylan, including all current and pipeline over-the-counter allergy, cold, flu, multi-symptom relief and immune support treatments for adults and children to the extent each is, or is intended to be, branded “Cold-EEZE®”, and all private label versions thereof, including all formulations and derivatives thereof as set forth in the Asset Purchase Agreement.

 

A special meeting of our stockholders was held on March 29, 2017 (the “Special Meeting”). At the Special Meeting, our stockholders approved the sale of assets and the transactions contemplated by the Asset Purchase Agreement. Effective March 29, 2017, we completed the sale of the Cold-EEZE® Business to Mylan. As a consequence of the sale of the Cold-EEZE® Business, for the three and six months ended June 30, 2017 and 2016, we have classified as discontinued operations (i) the gain from the sale of the Cold-EEZE® Business, (ii) all income and expenses attributable to the Cold-EEZE® Business and (iii) the income tax expense attributed to the sale of the Cold-EEZE® Business (see Notes 4 and 7). Excluded from the sale of the Cold-EEZE® Business were our accounts receivable and inventory, and we also retained all liabilities associated with our Cold-EEZE® Business operations arising prior to March 29, 2017.

 

Continuing Operations

 

We continue to own and operate our manufacturing facility and manufacturing business in Lebanon, Pennsylvania, and our headquarters in Doylestown, Pennsylvania. As part of the sale of the Cold-EEZE® Business, we entered into a manufacturing agreement (see Note 8) with Mylan and our wholly-owned subsidiary, Pharmaloz Manufacturing, Inc. (“PMI”), to supply various Cold-EEZE® lozenge products to Mylan. In addition to the production services we provide to Mylan under the manufacturing agreement, we produce OTC drug and dietary supplement lozenges and other products for other third party customers in addition to performing operational tasks such as warehousing, customer order processing and shipping.

 

We are also pursuing a series of new product development and pre-commercialization initiatives in the OTC dietary supplement category. Initial OTC dietary supplement product development activities were completed in the fourth quarter of Fiscal 2015 under the brand name of TK Supplements®. The TK Supplements® product line comprises three men’s health products: (i) Legendz XL® for sexual health, (ii) Triple Edge XL®, a daily energy booster plus testosterone support, and (iii) Super ProstaFlow PlusTM for prostate and urinary health. We recently completed a broad series of clinical studies which support important product claims which have now been incorporated in our product packaging and marketing communications. In addition to developing direct-to-consumer (“Direct Response”) marketing strategies of Legendz XL®, we received initial product acceptance and shipped into a national chain drug retailer during the second quarter of Fiscal 2017. In addition, we have received initial product acceptance from several regional retailers to begin shipments in the third and fourth quarters of Fiscal 2017.

 

For the three and six months ended June 30, 2017 and 2016, our revenues from continuing operations have come principally from our OTC health care products.

 

8
 

 

ProPhase Labs, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

 

Note 1 – Organization and Business – continued

 

We use a December 31 year-end for financial reporting purposes. References herein to “Fiscal 2017” shall mean the fiscal year ended December 31, 2017 and references to other “Fiscal” years shall mean the year, which ended on December 31 of the year indicated. The term “we”, “us” or the “Company” as used herein also refer, where appropriate, to the Company, together with its subsidiaries unless the context otherwise requires.

 

Note 2 - Restatement of Previously Issued Financial Statements

 

The Company determined that when calculating its income tax provision related to the gain on sale of discontinued operations, it incorrectly utilized available net operating losses without considering the statutory limitations imposed by the state of Pennsylvania, and that it incorrectly allocated the amount of income tax benefit resulting from the reversal of certain valuation allowances to continuing operations, which resulted in an overstatement of income the tax benefit from continuing operations and an understatement of the gain on sale of discontinued operations, which is presented net of taxes. In the process of this determination, the Company determined that such information existed at June 30, 2017 which affected the income tax benefit/ provision from continuing and discontinued operations reported in the three and six months ended June 30, 2017. The Company concluded that the impact of applying corrections for these errors and misstatements on the consolidated financial statements as of and for the three and six months ended June 30, 2017 is material. As a result, the Company is restating its consolidated financial statements as of and for the three and six months ended June 30, 2017. See below for a reconciliation of the previously reported amounts to the restated amounts.

 

The table below sets forth the condensed consolidated balance sheet, including the balances as originally reported, adjustments and the as restated balances (in thousands):

 

   As of June 30, 2017 
   As originally reported   Adjustments   As restated 
             
Income taxes payable  $-   $751   $751 
Total current liabilities   3,473    751    4,224 
                
Retained earnings   22,646    (751)   21,895 
Total stockholders' equity   46,626    (751)   45,875 
Total liabilities and stockholders' equity  $50,099   $-   $50,099 

 

The table below sets for the condensed consolidated statements of operations, including the balances as originally reported, adjustments, and the as restated amounts (in thousands):

   For the three months ended June 30, 2017 
   As originally
reported
   Adjustments   As restated 
             
Income tax benefit from continuing operations  $-   $574   $574 
Loss from continuing operations   (1,460)   574    (886)
                
Gain on sale of discontinued operations, net of taxes   (10)   (574)   (584)
Loss from discontinued operations, net of tax   (845)   (574)   (1,419)
Net loss   (2,305)   -    (2,305)
                
Basic loss per share:               
Loss from continuing operations  $(0.09)  $0.03   $(0.06)
Loss from discontinued operations   (0.05)   (0.03)   (0.08)
Net loss  $(0.14)  $0.00   $(0.14)
                
Diluted loss per share:               
Loss from continuing operations  $(0.09)  $0.03   $(0.06)
Loss from discontinued operations   (0.05)   (0.03)   (0.08)
Net loss  $(0.14)  $0.00   $(0.14)

 

9
 

 

   For the six months ended June 30, 2017 
   As originally
reported
   Adjustments   As restated 
             
Income tax benefit from continuing operations  $18,123   $(17,096)  $1,027 
Income (loss) from continuing operations   15,464    (17,096)   (1,632)
                
Gain on sale of discontinued operations, net of taxes   26,339    16,345    42,684 
Income from discontinued operations   26,869    16,345    43,214 
Net income   42,333    (751)   41,582 
                
Basic earnings (loss) per share:               
Income (loss) from continuing operations  $0.91   $(1.01)  $(0.10)
Income income from discontinued operations   1.58    0.96    2.54 
Net income  $2.49   $(0.05)  $2.44 
                
Diluted earnings (loss) per share:               
Income (loss) from continuing operations  $0.87   $(0.97)  $(0.10)
Income from discontinued operations   1.52    0.92    2.44 
Net income  $2.39   $(0.05)  $2.34 

 

The table below sets forth the condensed consolidated statements of cash flows from operating activities, including the balances as originally reported, adjustments and the as restated balances (in thousands):

 

   For the six months ended June 30, 2017 
   As originally
reported
   Adjustments   As restated 
             
Net income  $42,333   $(751)  $41,582 
Gain on sale of assets, net of taxes   (26,339)   (16,345)   (42,684)
Change in valuation allowance, income tax   (19,473)   18,446    (1,027)
Other current liabilities   (100)   (1,350)   (1,450)
Net cash used in operating activities  $(667)  $-   $(667)

 

The restatement had no impact on cash flows from investing activities or financing activities or net increase in cash.

 

Note 3 – Summary of Significant Accounting Policies

 

Basis of Presentation

 

The unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial statements and within the rules of the Securities and Exchange Commission (“SEC”) applicable to interim financial statements and therefore do not include all disclosures that might normally be required for financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The accompanying unaudited condensed consolidated financial statements have been prepared by management without audit and should be read in conjunction with our consolidated financial statements, including the notes thereto, appearing in our Annual Report on Form 10-K for the year ended December 31, 2016. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial position, consolidated results of operations and consolidated cash flows, for the periods indicated, have been made. The results of operations for the three and six months ended June 30, 2017 are not necessarily indicative of operating results that may be achieved over the course of the full year. Historical financial statements have been reclassified to conform to the current period presentation, principally reflecting the sale of Cold-EEZE® Business as discontinued operations.

 

Discontinued Operations Carve Out and ProPhase Allocations

 

For the three and six months ended June 30, 2017 and 2016, results from operations for our Cold-EEZE® Business are classified as discontinued operations The carve out of the discontinued operations (i) were prepared in accordance with the SEC’s carve out rules under Staff Accounting Bulletin (“SAB”) Topic 1B1 and (ii) are derived from identifying and carving out the specific assets, liabilities, net sales, cost of sales, operating expenses and interest expense associated with the Cold-EEZE® Business’s operations. General administrative and overhead expenses, including personnel expenses and bonuses, and research and development overhead expenses incurred by us (for which the discontinued operation benefits from such resources) are allocated to discontinued operations based upon the percentage of the Cold-EEZE® Business’s net sales to our consolidated net sales. For the three months ended June 30, 2017 and 2016, we allocated (i) zero and $319,000, respectively, of administrative expenses and (ii) zero and $48,000, respectively, of research and development expenses, to discontinued operations in the accompanying condensed statements of operations. For the six months ended June 30, 2017 and 2016, we allocated (i) $348,000 and $656,000, respectively, of administrative expenses and (ii) $52,000 and $95,000, respectively, of research and development expenses, to discontinued operations in the accompanying condensed statements of operations (see Note 4).

 

Seasonality of the Business

 

Our net sales are derived principally from our OTC heath care and cold remedy products sold in the United States of America. Our sales are influenced by and subject to fluctuations in the timing of purchase and the ultimate level of demand for our products which are a function of the timing, length and severity of each cold season. Generally, a cold season is defined as the period of September to March when the incidence of the common cold rises as a consequence of the change in weather and other factors. We generally experience in the first, third and fourth quarter higher levels of net sales. Revenues are generally at their lowest levels in the second quarter when customer demand generally declines.

 

For the three and six months ended June 30, 2017 and 2016, our net sales were principally related to domestic markets.

 

10
 

 

ProPhase Labs, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

 

Note 3 – Summary of Significant Accounting Policies – continued

 

Use of Estimates

 

The preparation of financial statements and the accompanying notes thereto, in conformity with GAAP, requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the respective reporting periods. Examples include the provision for bad debt, sales returns and allowances, inventory obsolescence, useful lives of property and equipment, impairment of property and equipment, income tax valuations and assumptions related to accrued advertising. When providing for the appropriate sales returns, allowances, cash discounts and cooperative incentive promotion costs (“Sales Allowances”), we apply a uniform and consistent method for making certain assumptions for estimating these provisions. These estimates and assumptions are based on historical experience, current trends and other factors that management believes to be relevant at the time the financial statements are prepared. Management reviews the accounting policies, assumptions, estimates and judgments on a quarterly basis. Actual results could differ from those estimates.

 

Cash and Cash Equivalents

 

We consider all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. Cash equivalents include cash on hand and monies invested in money market funds. The carrying amount approximates the fair market value due to the short-term maturity of these investments.

 

Inventory Valuation

 

Inventory is valued at the lower of cost, determined on a first-in, first-out basis (FIFO), or market. Inventory items are analyzed to determine cost and the market value and appropriate valuation adjustments are established. At June 30, 2017 and December 31, 2016, the financial statements include adjustments to reduce inventory for excess or obsolete inventory of $1.7 million and $1.6 million, respectively. The components of inventory are as follows (in thousands):

 

   June 30, 2017   December 31, 2016 
Raw materials  $1,590   $1,404 
Work in process   342    466 
Finished goods   34    866 
   $1,966   $2,736 

 

Property, Plant and Equipment

 

Property, plant and equipment are recorded at cost. We use the straight-line method in computing depreciation for financial reporting purposes. Depreciation expense is computed in accordance with the following ranges of estimated asset lives: building and improvements – ten to thirty-nine years; machinery and equipment – three to seven years; computer software – three years; and furniture and fixtures – five years.

 

Concentration of Risks

 

Future revenues, costs, margins and profits will continue to be influenced by our ability to maintain our manufacturing availability and capacity together with our marketing and distribution capabilities and the regulatory requirements associated with the development of OTC and other personal care products in order to compete on a national level and/or international level.

 

Our business is subject to federal and state laws and regulations adopted for the health and safety of users of our products. Our OTC health care products are subject to regulations by various federal, state and local agencies, including the Food and Drug Administration (“FDA”) and, as applicable, the Homeopathic Pharmacopoeia of the United States.

 

11
 

 

ProPhase Labs, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

 

Note 3 – Summary of Significant Accounting Policies – continued

 

Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash investments and trade accounts receivable.

 

We maintain cash and cash equivalents with certain major financial institutions. As of June 30, 2017, our cash balance was $37.3 million and our bank balance was $38.5 million. Of the total bank balance, $342,000 was covered by federal depository insurance and $38.1 million was uninsured at June 30, 2017.

 

Trade accounts receivable potentially subject us to credit concentrations from time-to-time as a consequence of the timing, payment pattern and ultimate purchase volumes or shipping schedules with our customers. We extend credit to our customers based upon an evaluation of the customer’s financial condition and credit history and generally we do not require collateral. Our broad range of customers includes many large national chain, regional, specialty and local retail stores. These credit concentrations may impact our overall exposure to credit risk, either positively or negatively, in that our customers may be similarly affected by changes in economic, regulatory or other conditions that may impact the timing and collectability of amounts due to us. As a consequence of an evaluation of our customer’s financial condition, payment patterns, balance due to us and other factors, we did not offset our account receivable with an allowance for bad debt at June 30, 2017 and December 31, 2016.

 

Long-lived Assets

 

We review our carrying value of our long-lived assets with definite lives whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. When indicators of impairment exist, we determine whether the estimated undiscounted sum of the future cash flows of such assets is less than their carrying amounts. If less, an impairment loss is recognized in the amount, if any, by which the carrying amount of such assets exceeds their respective fair values. The determination of fair value is based on quoted market prices in active markets, if available, or independent appraisals; sales price negotiations; or projected future cash flows discounted at a rate determined by management to be commensurate with our business risk. The estimation of fair value utilizing discounted forecasted cash flows includes significant judgments regarding assumptions of revenue, operating and marketing costs; selling and administrative expenses; interest rates; property and equipment additions and retirements; industry competition; and general economic and business conditions, among other factors.

 

Fair value is based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a three-tier fair value hierarchy prioritizes the inputs used to measure fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.

 

Fair Value of Financial Instruments

 

Cash and cash equivalents, accounts receivable, assets held for sale, accounts payable, accrued expenses and notes payable are reflected in the Condensed Consolidated Financial Statements at carrying value which approximates fair value.

 

Revenue Recognition

 

Sales are recognized at the time ownership is transferred to the customer. Revenue is reduced for trade promotions, estimated sales returns, cash discounts and other allowances in the same period as the related sales are recorded. We make estimates of potential future product returns and other allowances related to current period revenue. We analyze historical returns, current trends, and changes in customer and consumer demand when evaluating the adequacy of the sales returns and other allowances.

 

Our return policy accommodates returns for (i) discontinued products, (ii) store closings and (iii) products that have reached or exceeded their designated expiration date. We do not impose a period of time within which product may be returned. All requests for product returns must be submitted to us for pre-approval. The main components of our returns policy are: (i) we will accept returns that are due to damaged product that is un-saleable and such return request activity falls within an acceptable range, (ii) we will accept returns for products that have reached or exceeded designated expiration dates and (iii) we will accept returns in the event that we discontinue a product provided that the customer will have the right to return only such items that it purchased directly from us. We will not accept return requests pertaining to customer inventory “Overstocking” or “Resets”. We will only accept return requests for product in its intended package configuration. We reserve the right to terminate shipment of product to customers who have made unauthorized deductions contrary to our return policy or pursue other methods of reimbursement. We compensate the customer for authorized returns by means of a credit applied to amounts owed or to be owed and in the case of discontinued product only, also by way of an exchange. We do not have any significant product exchange history.

 

12
 

 

ProPhase Labs, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

 

Note 3 – Summary of Significant Accounting Policies – continued

 

Pursuant to the terms of the Asset Purchase Agreement, we are responsible for and continue to accept product returns of the Cold-EEZE® Business for product shipped prior to March 30, 2017. Additionally, pursuant to the terms of the Asset Purchase Agreement, we allocated and, in June 2017, issued a credit to Mylan in an aggregate of $400,000 for future sales returns and allowances arising from certain product returns that were sold by us prior to March 30, 2017.

 

As of June 30, 2017 and December 31, 2016, we included a provision for sales allowances of zero and $108,000, respectively. Additionally, accrued advertising and other allowances as of June 30, 2017 included (i) $934,000 for estimated future sales returns and (ii) $598,000 for cooperative incentive promotion costs. As of December 31, 2016, accrued advertising and other allowances included (i) $1.2 million for estimated future sales returns and (ii) $1.5 million for cooperative incentive promotion costs.

 

Advertising and Incentive Promotions

 

Advertising and incentive promotion costs are expensed within the period in which they are utilized. Advertising and incentive promotion expense is comprised of (i) media advertising, presented as part of sales and marketing expense, (ii) cooperative incentive promotions and coupon program expenses, which are accounted for as part of net sales, and (iii) free product, which is accounted for as part of cost of sales. Advertising and incentive promotion expenses incurred (i) from continuing operations for the three months ended June 30, 2017 and 2016 were $21,000 and $139,000, respectively, and (ii) attributed to and classified as discontinued operations were $205,000 and $471,000, respectively. Advertising and incentive promotion expenses incurred (i) from continuing operations for the six months ended June 30, 2017 and 2016 were $53,000 and $339,000 , respectively, and (ii) attributed to and classified as discontinued operations were $2.8 million and $3.3 million, respectively. Included in prepaid expenses and other current assets was $17,000 and $263,000 at June 30, 2017 and December 31, 2016, respectively, relating to prepaid advertising and promotion expenses.

 

Shipping and Handling

 

Product sales may carry shipping and handling charges to the purchaser, included as part of the invoiced price, which is classified as revenue. In all cases, costs related to this revenue are recorded in cost of sales.

 

Stock-Based Compensation

 

We recognize all share-based payments to employees and directors, including grants of stock options, as compensation expense in the financial statements based on their fair values. Fair values of stock options are determined through the use of the Black-Scholes option pricing model. The compensation cost is recognized as an expense over the requisite service period of the award, which usually coincides with the vesting period.

 

Stock and stock options for the purchase of our common stock, $0.0005 par value (“Common Stock”), have been granted to both employees and non-employees pursuant to the terms of certain agreements and stock option plans (see Note 6). Stock options are exercisable during a period determined by us, but in no event later than ten years from the date granted. For the three and six months ended June 30, 2017 and 2016, we charged to operations $18,000 and $1,000, respectively, for share-based compensation expense for the aggregate fair value of stock grants issued and vested stock options earned.

 

Research and Development

 

Research and development costs are charged to operations in the period incurred. Research and development costs incurred for the three months ended June 30, 2017 and 2016 (i) from continuing operations were $224,000 and $121,000, respectively, and (ii) attributed to and classified as discontinued operations of zero and $48,000, respectively. Research and development costs incurred for the six months ended June 30, 2017 and 2016 (i) from continuing operations were $258,000 and $160,000, respectively, and (ii) attributed to and classified as discontinued operations of $52,000 and $95,000, respectively. Research and development costs are principally related to personnel expenses and new product development initiatives and costs associated with our OTC health care products.

 

13
 

 

ProPhase Labs, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

 

Note 3 – Summary of Significant Accounting Policies – continued

 

Income Taxes

 

We utilize the asset and liability approach which requires the recognition of deferred tax assets and liabilities for the future tax consequences of events that have been recognized in our financial statements or tax returns. In estimating future tax consequences, we generally consider all expected future events other than enactments of changes in the tax law or rates. Until we have sufficient taxable income to offset the temporary timing differences attributable to operations and the tax deductions attributable to option, warrant and stock activities are assured, a full valuation allowance equaling the total deferred tax asset is being provided (see Notes 4 and 7).

 

We utilize a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than fifty percent likely of being realized upon ultimate settlement. Any interest or penalties related to income taxes will be recorded as interest or administrative expense, respectively.

 

As a result of our continuing tax losses, we have recorded a full valuation allowance against a net deferred tax asset. Additionally, we have not recorded a liability for unrecognized tax benefits.

 

Recently Issued Accounting Standards

 

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”, on revenue recognition. The new standard provides for a single five-step model to be applied to all revenue contracts with customers as well as requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This ASU, as amended, is effective for fiscal years and interim periods within those years beginning after December 15, 2017. We are currently assessing the impact of this update, but preliminarily believe that its adoption will not have a material impact on our consolidated financial statements.

 

In February 2016, the FASB issued ASU No. 2016-02 “Leases”. The new standard will require most leases to be recognized on the balance sheet which will increase reported assets and liabilities. Lessor accounting remains substantially similar to current guidance. The new standard is effective for annual and interim periods in fiscal years beginning after December 15, 2018, which for us is the first quarter of fiscal 2019 and mandates a modified retrospective transition method. We do not intend to early adopt and are currently assessing the impact of this update, but preliminarily believe that its adoption will not have a material impact on our consolidated financial statements.

 

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses.” The standard modifies the impairment model for most financial assets, including trade accounts receivables and loans, and will require the use of an “expected loss” model for instruments measured at amortized cost. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The effective date of the standard is for fiscal years beginning after December 15, 2019 with early adoption permitted. We are currently evaluating the impact of adoption of this update on our consolidated financial statements.

 

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments”. The new standard attempts to reduce diversity in practice in how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU No. 2016-15 provides guidance on eight specific cash flow issues. The new guidance will be effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted including adoption in an interim period. We do not intend to early adopt and we are currently assessing the impact of adoption of this update will have on our consolidated financial statements.

 

In October 2016, the FASB issued ASU No. 2016-16, “Income Taxes: Intra-Entity Transfers of Assets Other than Inventory”. The new standard requires entities should recognize the income tax consequences of an asset other than inventory when the asset transfer occurs. The new guidance will be effective for fiscal years beginning after December 15, 2017 and requires a modified retrospective adoption through a cumulative effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are currently evaluating the impact of adoption of this update on our consolidated financial statements.

 

14
 

 

ProPhase Labs, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

 

Note 4 – Discontinued Operations, Sale of the Cold-EEZE® Business

 

At the Special Meeting held on March 29, 2017, our stockholders approved the sale of the Cold-EEZE® Business and the transactions contemplated by the Asset Purchase Agreement. Effective March 29, 2017, we completed the sale of the Cold-EEZE® Business to Mylan.

 

As a consequence of the sale of the Cold-EEZE® Business, for the three and six months ended June 30, 2017 and 2016, we have classified as discontinued operations (i) the gain from the sale of the Cold-EEZE® Business, (ii) all gains and losses attributable to the Cold-EEZE® Business operations and (iii) the income tax expense attributed to the sale of the Cold-EEZE® Business (see Note 7). Excluded from the sale of the Cold-EEZE® Business were our accounts receivable and inventory, and we also retained all liabilities associated with our Cold-EEZE® Business operations arising prior to March 29, 2017.

 

Pursuant to the Asset Purchase Agreement, we also agreed to a one-time sale to Mylan of certain non-lozenge-based Cold-EEZE® inventory. At June 30, 2017, we classified as assets held for sale approximately $294,000 of such inventory, which approximates our cost. At December 31, 2016, the balance sheet impact of discontinued operations was deemed not material, as such, no reclassifications for discontinued operations have been presented.

 

Pursuant to the Asset Purchase Agreement, we entered into a 90 day transition service arrangement with Mylan, for which we earned $150,000 in transition service fees through June 30, 2017. Pursuant to this arrangement, we (i) received, processed, fulfilled, and shipped customer orders, and billed such customers for these shipments on behalf of Mylan from March 30, 2017 to June 30, 2017, (ii) processed certain sales allowances, returns and other customer promotional deductions, and (iii) paid certain Cold-EEZE® Business expenses which are to be reimbursed by Mylan. At June 30, 2017, we have a balance due to Mylan of $717,000 which is comprised of (i) net billings to Mylan’s customers for product shipments, less sales and other allowances, of $1.8 million (ii) return allocation of $400,000 for future sales returns and allowances (see Note 3), offset by (ii1) $1.4 million for product shipments and transition service fee due from Mylan and (iv) $106,000 for the reimbursement of certain Cold-EEZE® Business expenses we paid on behalf of Mylan. For the three and six months ended June 30, 2017, the $150,000 transition service fees earned are recorded as a component of other income (expense).

 

15
 

 

ProPhase Labs, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

 

Note 4 – Discontinued Operations, Sale of the Cold-EEZE® Business – continued

 

The net proceeds received from the sale of the Cold-EEZE® Business were as follows (in thousands):

 

  

Amount

(as restated)

 
Gross consideration from the sale of the Cold-EEZE® Business  $50,000 
Closing and transaction costs   (4,175)
Net proceeds from sale of the Cold-EEZE® Business   45,825 
Book value of assets sold   (13)
Gain on sale of the Cold-EEZE® Business before income taxes   45,812 
Income tax expense   (3,128)
Gain on sale of the Cold-EEZE® Business after income taxes  $42,684 
      
Net proceeds:     
Cash paid at closing, net of closing and transaction costs  $43,145 
Proceeds due on sale of assets, cash held in escrow   5,000 
   $48,145 

 

For the three and six months ended June 30, 2017, we incurred $10,000 and $4.2 million in closing and transaction costs associated with the sale of the Cold-EEZE® Business which were comprised of (i) transaction fees and related closing costs of $1.9 million and (ii) performance bonuses, contract termination compensation and severance payments to certain employees associated with the sale of the Cold-EEZE® Business of $2.3 million. The compensation committee of our board of directors approved these compensation arrangements. These compensation and termination payments were paid by us in April 2017.

 

The following table sets forth the condensed operating results of our discontinued operations for the three and six months ended June 30, 2017 and 2016, respectively, (in thousands):

 

    Three Months Ended June 30,     Six Months Ended June 30,  
    2017   2016     2017     2016  
Net sales   $ (371 )   $ 1,826     $ 4,687     $ 6,179  
Cost of sales     264     728       2,037       2,427  
Sales and marketing     200     533       1,720       2,833  
Administration     -     319       348       656  
Research and development     -     48       52       95  
Income (loss) from discontinued operations   $ (835 )   $ 198     $ 530     $ 168  

 

Note 5 – Secured Promissory Notes and Other Obligations

 

Secured Promissory Notes

 

On December 11, 2015, we executed two Subscription Agreements (the “Subscription Agreements”) with the investors named therein (the “Investors”) providing for the purchase of 12% Secured Promissory Notes – Series A (“Notes”) in the aggregate principal amount of up to $3.0 million and warrants to purchase shares of our Common Stock (the “Warrants”).

 

Notes in the amount of $1.5 million and 51,000 Warrants, at an exercise price of $1.35 per share, which was equal to the closing price of our Common Stock on the date of investment, were issued by the Company and its wholly-owned subsidiaries, PMI and Quigley Pharma, Inc. (collectively, the “Obligors”), and funded on December 11, 2015. We incurred loan origination costs of $22,000 which were recorded as a reduction of the Notes and the origination costs are charged to other income (expense) over the term of the loan. The Warrants had an exercise term equal to three years and were exercisable commencing on the date of issuance. The fair value of the Warrants at the date of grant was $14,000 which is recorded as a reduction of the Notes and is charged to other income (expense) over the term of the loan.

 

16
 

 

ProPhase Labs, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

 

The Notes bore interest at the rate of 12% per annum, payable semi-annually and the principal is due and payable on June 15, 2017. The Notes could be pre-paid at any time prior to maturity without penalty. The effective interest, inclusive of the Warrant and loan origination costs, was 14.3% per annum. For the six months ended June 30, 2017 and 2016, we charged to other income (expense) $54,000 and $105,000, respectively, in connection with the Notes.

 

On March 29, 2017, in connection with the sale of the Cold-EEZE® Business, we paid in full the remaining principal and accrued interest, in the total amount of $1,553,000, due under the Notes. Of the $1,553,000 paid to the Investors, $69,000 was netted against the aggregate exercise price of the Warrants, which were simultaneously being exercised by the Investors.

 

In connection with the issuance of the Notes, the Company entered into a security agreement with John E. Ligums, Jr., as collateral agent for the Investors (the “Security Agreement”) to secure the timely payment and performance in full of the Company’s obligations under the Notes. Under the Security Agreement, we granted to the collateral agent, for the benefit of the Investors a lien upon and security interest in the property and assets listed as collateral in the Security Agreement, including without limitation, all of our personal property, inventory, equipment, general intangibles, cash and cash equivalents, and proceeds. In connection with the payoff of the Notes, the Security Agreement was terminated.

 

Note 6 – Transactions Affecting Stockholders’ Equity

 

Our authorized capital stock consists of 50 million shares of Common Stock and 1 million shares of preferred stock, $.0005 par value (“Preferred Stock”).

 

Preferred Stock

 

On June 16, 2015, our stockholders approved the change to our state of incorporation from the State of Nevada to the State of Delaware pursuant to a plan of conversion (the “Conversion Plan”) and the filing of a certificate of incorporation in the State of Delaware. The Preferred Stock authorized under our certificate of incorporation may be issued from time to time in one or more series. As of June 30, 2017, no shares of Preferred Stock have been issued. Our board of directors has the full authority permitted by law to establish, without further stockholder approval, one or more series of Preferred Stock and the number of shares constituting each such series and to fix by resolution, voting powers, preferences and relative, participating, optional and other special rights of each series of Preferred Stock, and the qualifications, limitations or restrictions thereof, if any. Subject to the limitation on the total number of shares of Preferred Stock that we have authority to issue under our certificate of incorporation, the board of directors is also authorized to increase or decrease the number of shares of any series, subsequent to the issue of that series, but not below the number of shares of such series then-outstanding. In case the number of shares of any series is so decreased, the shares constituting such decrease will resume the status that they had prior to the adoption of the resolution originally fixing the number of shares of such series. We may amend from time to time our certificate of incorporation and bylaws to increase the number of authorized shares of Preferred Stock or Common Stock or to make other changes or additions to our capital structure or the terms of our capital stock.

 

Stockholder Rights Plan

 

On September 8, 1998, our Board of Directors declared a dividend distribution of Common Stock Purchase Rights (each individually, a “Right” and collectively, the “Rights”) payable to our stockholders of record on September 25, 1998, thereby creating a Stockholder Rights Plan (the “Rights Agreement”). The Plan was subsequently amended effective each of (i) May 23, 2008, (ii) August 18, 2009, (iii) June 18, 2014 and (iv) January 6, 2017. The Rights Agreement, as amended and restated, provides that each Right entitles the stockholder of record to purchase from the Company that number of shares of Common Stock having a combined market value equal to two times the Rights exercise price of $45. The Rights are not exercisable until the distribution date, which will be the earlier of a public announcement that a person or group of affiliated or associated persons has acquired 15% or more of the outstanding shares of Common Stock, or the announcement of an intention by a similarly constituted party to make a tender or exchange offer resulting in the ownership of 15% or more of the outstanding shares of Common Stock (such person, the “acquirer”). The Rights Agreement allows for an exemption for Ted Karkus, the Company’s Chairman and Chief Executive Officer, to acquire up to 20% of our Common Stock without our Board of Directors declaring a dividend distribution.

 

17
 

 

ProPhase Labs, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

 

Note 6– Transactions Affecting Stockholders’ Equity – continued

 

The dividend has the effect of diluting the acquirer by giving our other stockholders a 50% discount on our Common Stock’s current market value for exercising the Rights. In the event of a cashless exercise of the Right and the acquirer has acquired less than 50% beneficial ownership of the Company, a stockholder may exchange one Right for one share of Common Stock of the Company. The Rights Agreement, as amended, includes a provision pursuant to which our Board of Directors may exempt from the provisions of the Rights Agreement an offer for all outstanding shares of our Common Stock that the directors determine to be fair and not inadequate and to otherwise be in the best interests of the Company and its stockholders, after receiving advice from one or more investment banking firms. The expiration date of the Rights Agreement, as amended, is June 18, 2024.

 

Equity Line of Credit

 

On July 30, 2015, we entered into a new equity line of credit agreement (such arrangement, the “2015 Equity Line”) with Dutchess Opportunity Fund II, LP (“Dutchess”). Pursuant to the 2015 Equity Line, Dutchess committed to purchase, subject to certain restrictions and conditions, up to 3,200,000 shares of our Common Stock, over a period of 36 months from the effectiveness of the registration statement registering the resale of shares purchased by Dutchess pursuant to the Investment Agreement.

 

We may, at our discretion, draw on the 2015 Equity Line from time to time, as and when we determine appropriate in accordance with the terms and conditions of the 2015 Equity Line. The maximum number of shares that we are entitled to put to Dutchess in any one draw down notice shall not exceed 500,000 shares with a purchase price calculated in accordance with the terms of the 2015 Equity Line. We may deliver a notice for a subsequent put from time to time, following the one day pricing period for the prior put.

 

The purchase price shall be set at ninety-five percent (95%) of the volume weighted average price (VWAP) of the Common Stock during the one trading day immediately following our put notice. We have the right to withdraw all or any portion of any put, except that portion of the put that has already been sold to a third party, including any portion of a put that is below the minimum acceptable price set forth on the put notice, before the closing. In the event Dutchess receives more than a five percent (5%) return on the net sales for a specific put, Dutchess must remit such excess proceeds to us; however, in the event Dutchess receives less than a five percent (5%) return on the net sales for a specific put, Dutchess will have the right to deduct from the proceeds of the put amount on the applicable closing date so Dutchess’s return will equal five percent (5%).

 

There are put restrictions applied on days between the draw down notice date and the closing date with respect to that particular put. During such time, we are entitled to deliver another draw down notice. In addition, Dutchess will not be obligated to purchase shares if Dutchess’ total number of shares beneficially held at that time would exceed 4.99% of the number of shares of Common Stock as determined in accordance with Rule 13d-1(j) of the Securities Exchange Act of 1934, as amended. In addition, we are not permitted to draw on the facility unless there is an effective registration statement to cover the resale of the shares.

 

Pursuant to the terms of the 2015 Equity Line, we are obligated to file one or more registration statements with the SEC to register the resale by Dutchess of the shares of Common Stock issued or issuable under the 2015 Equity Line. In addition, we are obligated to use all commercially reasonable efforts to have the registration statement declared effective by the SEC within 90 days after the registration statement is filed. On August 4, 2015, we filed a registration statement for the underlying shares of the 2015 Equity Line with the SEC and the registration statement was declared effective by the SEC on August 21, 2015.

 

At June 30, 2017, we have 2,450,000 shares of our Common Stock available for sale, at our discretion, under the terms of our 2015 Equity Line and covered pursuant to an effective registration statement.

 

18
 

 

ProPhase Labs, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

 

Note 6 – Transactions Affecting Stockholders’ Equity – continued

 

The 2010 Equity Compensation Plan

 

On May 5, 2010, our stockholders approved the 2010 Equity Compensation Plan which was subsequently amended, restated and approved by our stockholders on April 24, 2011, and further amended and approved by stockholders on May 6, 2013, and further amended and approved by stockholders on May 24, 2016 (the “2010 Plan”). The 2010 Plan provides that the total number of shares of Common Stock that may be issued under the 2010 Plan is equal to 3.2 million shares, including 900,000 shares that are authorized for issuance but unissued under a 1997 incentive stock option plan and 700,000 shares added to the 2010 Plan effective May 24, 2016.

 

For the six month ended June 30, 2017 and 2016, we granted, 600,000 options, exercisable at $2.00 per share and subject to vesting over a four year term, and zero options, respectively, to employees to acquire our Common Stock pursuant to the terms of 2010 Plan. The assumptions used in determining the fair value of the 600,000 stock options granted in Fiscal 2017 were (i) expected option life of 4.5 years, (ii) weighted average risk rate of 1.81%, (iii) dividend yield of 0% and (iv) expected volatility of 44.51%.

 

For the six months ended June 30, 2017, 90,000 stock options were exercised pursuant to the 2010 Plan and we derived net proceeds of $102,000. For the six months ended June 30, 2016, there were no stock options exercised. At June 30, 2017, there were 2,209,000 options outstanding under the 2010 Plan and 133,659 options available to be issued pursuant to the terms of the 2010 Plan.

 

The 2010 Directors’ Equity Compensation Plan

 

On May 5, 2010, our stockholders approved the 2010 Directors’ Equity Compensation Plan, which was subsequently amended and approved by stockholders on May 6, 2013. A primary purpose of the 2010 Directors’ Equity Compensation Plan is to provide us with the ability to pay all or a portion of the fees of directors in restricted stock instead of cash. The 2010 Directors’ Equity Compensation Plan provides that the total number of shares of Common Stock that may be issued under the 2010 Directors’ Equity Compensation Plan is equal to 425,000. For the six months ended June 30, 2017 and 2016, no shares were granted to our directors. At June 30, 2017, there were 147,808 shares of Common Stock that may be issued pursuant to the terms of the 2010 Directors’ Equity Compensation Plan.

 

Treasury Stock Purchase Agreement

 

On June 12, 2017 we entered into a Stock Purchase Agreement with each of Mark S. Leventhal, a former director of the Company, and certain other persons and entities associated and/or affiliated with Mr. Leventhal (the “Leventhal Holders”), pursuant to which we purchased all 1,061,980 shares of our Common Stock then held by the Leventhal Holders, representing an approximate 6.2% aggregate ownership interest (based on 17,221,776 shares of common stock outstanding as of June 12, 2017). Upon consummation of the transactions, the Leventhal Holders ceased to hold any direct or indirect ownership interest in the Company.

 

Pursuant to the terms of the Stock Purchase Agreements, the total consideration paid by us to the Leventhal Holders for their shares was $1,858,465, which amount was equal to the product of (i) $1.75 multiplied by (ii) the number of shares purchased.

 

Note 7 – Income Taxes

 

At December 31, 2016, there were $47.1 million in net operating loss carryforwards, subject to applicable limitations, available to us for federal purposes which will expire beginning for the year ended December 31, 2020 through 2036. Additionally, there were $22.1 million in net operating loss carryforwards, subject to limitations, available to us for state purposes which will expire beginning for the year ended December 31, 2020 through 2036.

 

We believe that a significant portion of our income tax liability arising from our taxable gain for federal and state income tax purposes from the sale of the Cold-EEZE® Business will be offset to the extent of our current year losses from operations, the write-off for tax purposes of the tax-basis of the Cold-EEZE® Business and the available net operating loss carryforwards at the federal and state levels. However, for state income tax purposes, based upon the available state net operating loss carryforwards and corresponding limitations, we estimate a net income tax expense arising from the sale of the Cold-EEZE® Business of $2.1 million.

 

19
 

 

ProPhase Labs, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

 

Utilization of net operating loss carryforwards may be subject to limitations as set forth in Section 382 of the Internal Revenue Code (“Section 382”). Based on our preliminary Section 382 analysis, we do not believe that our current net operating loss carryforwards are subject to these limitations as of June 30, 2017. However, until we complete a final Section 382 analysis upon filing of our 2017 income tax return, there can be no assurances that our preliminary analysis is accurate or complete. Should we identify any limitations upon the completion of our final Section 382 analysis, the impact could be material to our consolidated financial statements and that we could incur additional income tax expense arising from the sale of the Cold-EEZE® Business.

 

For the six months ended June 30, 2017, we charged to discontinued operations $3.1 million for estimated federal and state income taxes arising from the sale of the Cold-EEZE® Business and we have realized an income tax benefit from continuing operations of $1.0 million as a consequence of the utilization of the federal and state net operating losses.

 

Subsequent to the income tax effects arising from the sale of the Cold-EEZE® Business, we will continue to have net operating loss carry-forwards for federal income tax purposes. Until sufficient taxable income to offset the temporary timing differences attributable to operations, and the tax deductions attributable to option, warrant and stock activities are assured, a valuation allowance equaling the total deferred tax asset is being provided. As a consequence of the accumulated losses of the Company, we believe that this allowance is required due to the uncertainty of realizing these tax benefits in the future.

 

20
 

 

ProPhase Labs, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

 

Note 8– Commitments and Contingencies

 

Escrow Receivable

 

We have indemnification obligations to Mylan under the Asset Purchase Agreement that may require us to make future payments to Mylan and other related persons for any damages incurred by Mylan or such related persons as a result of any breaches of our representations, warranties, covenants or agreements contained in the Asset Purchase Agreement, or arising from the Retained Liabilities (as such term is defined in the Asset Purchase Agreement) or certain third party claims specified in the Asset Purchase Agreement. Generally, our representations and warranties survive for a period of 24 months from the closing date, other than certain fundamental representations which survive until the expiration of the applicable statute of limitations. There is a limited indemnification cap with respect to a majority of the Company’s indemnification obligations under the Asset Purchase Agreement with the exception of claims for actual fraud, the breach of any fundamental representations and certain other items, which have a larger indemnification cap (e.g., the purchase price).

 

Pursuant to the terms of the Asset Purchase Agreement, we, Mylan, and an escrow agent entered into an Escrow Agreement at closing, pursuant to which Mylan deposited $5 million of the aggregate purchase price for the Cold-EEZE® Business into an escrow account established with the Escrow Agent in order to satisfy, in whole or in part, certain of our indemnity obligations under the Asset Purchase Agreement. If, on the 18th month anniversary of the closing date, there are funds remaining in the escrow account, then the escrow account will be reduced by the difference, if a positive number, of (i) $2.5 million minus (ii) the aggregate amount of all escrow claims asserted by Mylan prior to this date that have either been paid out of the escrow account or are pending as of such date, and, within two business days of such date, the Escrow Agent will disburse such difference, if a positive number, to us. Within two business days of the second anniversary of the closing date, the Escrow Agent will release any funds remaining in the escrow account to us minus any amounts being reserved for escrow claims asserted by Mylan prior to such date. Upon the resolution of any pending escrow claims, the Escrow Agent will, within two business days of receipt of joint instructions or a final order from a court (as described in the Escrow Agreement) disburse such reserved amount to the parties entitled to such funds.

 

Management does not believe that we will be subject to indemnity claims contemplated by the Asset Purchase Agreement. However, in the event that such a claim is made, and if successful, we would be required to pay Mylan pursuant to the indemnification provisions of the Asset Purchase Agreement which may reduce the amount we ultimately collect from escrow or could even require us to return a portion of the net proceeds received from the sale of the Cold-EEZE® Division.

 

Manufacturing Agreement

 

In connection with the Asset Purchase Agreement, the Company and its wholly-owned subsidiary, PMI, entered into a Manufacturing Agreement (the “Manufacturing Agreement”) with Mylan. Pursuant to the terms of the Manufacturing Agreement, Mylan (or an affiliate or designee) will purchase the inventory of the Company’s Cold-EEZE® brand and product line and PMI will manufacture certain products for Mylan, as described in the Manufacturing Agreement, at prices that reflect current market conditions for such products and include an agreed upon mark-up on our costs. Unless terminated sooner by the parties, the Manufacturing Agreement will remain in effect until March 29, 2022. Thereafter, the Manufacturing Agreement may be renewed by Mylan for up to five successive one year periods by providing notice of its intent to renew not less than 90 days prior to the expiration of the then-current term.

 

Transition Services Agreement

 

In connection with the Asset Purchase Agreement, we entered into a transition services agreement with Mylan to provide litigation support, insurance coverage, supply chain, customer support, finance, accounting, commercial advertising and packaging services, quality control, IT and research and development services to Mylan for time periods ranging from two to nine months from the closing date. We will continue to incur certain operating costs during the transition period to support Mylan.

 

21
 

 

ProPhase Labs, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

 

Note 8– Commitments and Contingencies – continued

 

Future Obligations:

 

We have estimated future minimum obligations over the next five years, including the remainder of Fiscal 2017, as follows (in thousands):

 

Fiscal year   Employment
Contracts
 
2017     338  
2018     675  
2019     -  
2020     -  
2021     -  
Total   $ 1,013  

 

Note 9 – Earnings (Loss) Per Share

 

Basic earnings (loss) per share for continuing and discontinued operations are computed by dividing respective net income or loss attributable to common stockholders by the weighted-average number of shares of our Common Stock outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue Common Stock were exercised or converted into Common Stock or resulted in the issuance of Common Stock that shared in the earnings of the entity. Diluted earnings (loss) per share also utilize the treasury stock method which prescribes a theoretical buy-back of shares from the theoretical proceeds of all options and warrants outstanding during the period. Options and warrants outstanding to acquire shares of our Common Stock at June 30, 2017 and 2016 were 2,209,000 and 1,706,500, respectively.

 

For the three months ended June 30, 2017 and June 30, 2016 dilutive earnings (loss) per share is the same as basic earnings per share due to (i) the inclusion of Common Stock, in the form of stock options and warrants (“Common Stock Equivalents”), would have an anti-dilutive effect on the loss per share or (ii) there were no Common Stock Equivalents for the respective period. For the three months ended June 30, 2017 and 2016 there were 641,754 and 276,165, Common Stock Equivalents which were in the money, that were excluded from the earnings (loss) per share computation as a consequence of their anti-dilutive effect.

 

For the six months ended June 30, 2017 there were 650,190 Common Stock Equivalents which were in the money, that were included in the fully diluted earnings per share computation. For the six months ended June 30, 2016, for continuing operations dilutive earnings (loss) per share is the same as basic earnings per share due to (i) the inclusion of Common Stock, in the form of stock options and warrants (“Common Stock Equivalents”), would have an anti-dilutive effect on the loss per share or (ii) there were no Common Stock Equivalents for the respective period. For the six months ended June 30, 2016, there were 244,112, Common Stock Equivalents which were in the money, that were excluded from the earnings (loss) per share computation as a consequence of their anti-dilutive effect.

 

22
 

 

ProPhase Labs, Inc. and Subsidiaries

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

The following discussion and analysis should be read in conjunction with our interim unaudited condensed financial statements and related notes included in this Quarterly Report on Form 10-Q/A (“Quarterly Report”) which has been restated as discussed in Note 2 in the condensed consolidated financial statements and the audited financial statements and notes thereto as of and for the year ended December 31, 2016 and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations, both of which are contained in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 24, 2017 (the “2016 Annual Report”). As used in this Quarterly Report, unless the context suggests otherwise, “we,” “us,” “our,” or “ProPhase” refer to ProPhase Labs, Inc. and its subsidiaries and consolidated variable interest entities, unless the context otherwise requires.

 

Restatement and revision of the consolidated financial

 

As discussed in the Explanatory Note, this Amendment to Form 10-K (this Amendment), amends and restates the Company’s consolidated financial statements and related disclosures in Part I, Item 2. “Financial Statements” as of and for the six months ended June 30, 2017 to reflect the correction of certain errors discussed in Note 2 Restatement of Previously Issued Financial Statements. Accordingly, the Management’s Discussion and Analysis of Financial Condition and Results of Operations set forth below reflects the effects of these restatements and revisions.

 

General

 

ProPhase was initially organized in Nevada in July 1989. Effective June 18, 2015, we changed our state of incorporation from the State of Nevada to the State of Delaware. We are a manufacturer, marketer and distributor of a diversified range of health care products and cold remedy products that are offered to the general public. We are also engaged in the research and development of potential over-the-counter (“OTC”) drug and natural base health products including supplements, personal care and cosmeceutical products.

 

Discontinued Operations

 

Prior to March 29, 2017, our flagship OTC drug brand was Cold-EEZE® and our principal product was Cold-EEZE® cold remedy zinc gluconate lozenges and various non-lozenge forms of our proprietary zinc gluconate formulation. On January 6, 2017, we signed an asset purchase agreement (as amended, the “Asset Purchase Agreement”), by and among the Company, Meda Consumer Healthcare Inc. (“MCH”) and Mylan Inc. (together with MCH, “Mylan”), for the sale of assets by us to Mylan. The sale of assets (i) was subject to stockholder approval and other customary closing conditions and (ii) consisted principally of the sale of our intellectual property rights and other assets relating to our Cold-EEZE® brand and product line (collectively, referred to herein as the “Cold-EEZE® Business”) to Mylan, including all current and pipeline over-the-counter allergy, cold, flu, multi-symptom relief and immune support treatments for adults and children to the extent each is, or is intended to be, branded “Cold-EEZE®”, and all private label versions thereof, including all formulations and derivatives thereof as set forth in the Asset Purchase Agreement.

 

A special meeting of our stockholders was held on March 29, 2017 (the “Special Meeting”). At the Special Meeting, our stockholders approved the sale of assets and the transactions contemplated by the Asset Purchase Agreement. Effective March 29, 2017, we completed the sale of the Cold-EEZE® Business to Mylan. As a consequence of the sale of the Cold-EEZE® Business, for the three and six months ended June 30, 2017 and 2016, we have classified as discontinued operations (i) the gain from the sale of the Cold-EEZE® Business, (ii) all income and expenses attributable to the Cold-EEZE® Business and (iii) the income tax expense attributed to the sale of the Cold-EEZE® Business. Excluded from the sale of the Cold-EEZE® Business were our accounts receivable and inventory, and we also retained all liabilities associated with our Cold-EEZE® Business operations arising prior to March 29, 2017.

 

Continuing Operations and Product Development

 

We continue to own and operate our manufacturing facility and manufacturing business in Lebanon, Pennsylvania, and our headquarters in Doylestown, Pennsylvania. As part of the sale of the Cold-EEZE® Business, we entered into a manufacturing agreement with Mylan and our wholly-owned subsidiary, Pharmaloz Manufacturing, Inc. (“PMI”), to supply various Cold-EEZE® lozenge products to Mylan. In addition to the production service we provide to Mylan under the manufacturing agreement, we produce OTC drug and dietary supplement lozenges and other products for other third party customers in addition to performing operational tasks such as warehousing, customer order processing and shipping. We will seek to expand our contract manufacturing operations through developing new products and creating new contract manufacturing opportunities.

 

23
 

 

ProPhase Labs, Inc. and Subsidiaries

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

 

We are also pursuing a series of new product development and pre-commercialization initiatives in the dietary supplement category. Initial dietary supplement product development activities were completed in the fourth quarter of Fiscal 2015 under the brand name of TK Supplements®. The TK Supplements® product line comprises three men’s health products: (i) Legendz XL® for sexual health, (ii) Triple Edge XL®, a daily energy booster plus testosterone support, and (iii) Super ProstaFlow PlusTM for prostate and urinary health. We recently completed a broad series of clinical studies which support important product claims which have now been incorporated in our product packaging and marketing communication. In addition to developing direct-to-consumer (“Direct Response”) marketing strategies of Legendz XL®, we received initial product acceptance and shipped into a national chain drug retailer during the second quarter of Fiscal 2017. In addition, we have received initial product acceptance from several regional retailers to begin shipments in the third and fourth quarters of Fiscal 2017.

 

If we are successful in achieving retail distribution, we intend to ramp up the media spend for our Direct Response TV spots to support this retail launch with the added benefit that it should also generate additional direct to consumer sales. As with any new product launch, we anticipate losses from our TK Supplements® initiatives as we optimize our retail and direct response strategy. Therefore, no assurance can be made that our new product efforts will be successful and/or profitable.

 

Additionally, we are active in exploring new product technologies, applications, product line extensions, new contract manufacturing applications and other new product opportunities consistent with our Company and brand image, and our standard of proven consumer benefit and efficacy.

 

Seasonality of the Business

 

Our net sales are derived principally from our OTC heath care and cold remedy products sold in the United States of America. Our sales are influenced by and subject to fluctuations in the timing of purchase and the ultimate level of demand for our products which are a function of the timing, length and severity of each cold season. Generally, a cold season is defined as the period of September to March when the incidence of the common cold rises as a consequence of the change in weather and other factors. We generally experience in the first, third and fourth quarter higher levels of net sales. Revenues and related marketing costs are generally at their lowest levels in the second quarter when customer demand generally declines.

 

Financial Condition and Results of Operations

 

Results from Continuing Operations for the Three Months Ended June 30, 2017 (as restated)

as Compared to the Three Months Ended June 30, 2016

 

For the three months ended June 30, 2017, net sales were $1.9 million as compared to $1.0 million for the three months ended June 30, 2016. The increase in net sales from period to period is due principally to an increase in the timing of shipments of lozenge-based products principally as a result of initial shipments to Mylan’s new OTC warehouse facility.

 

Cost of sales for the three months ended June 30, 2017 were $1.8 million as compared to $993,000 for the three months ended June 30, 2016. Gross margins are generally influenced by fluctuations in quarter-to-quarter production volume, fixed production costs and related overhead absorption, raw ingredient costs, inventory mark to market write-downs, if any, and the timing of shipments to customers which are factors of the seasonality of our sales activities and products.

 

Sales and marketing expense for the three months ended June 30, 2017 was $221,000 as compared to $236,000 for the three months ended June 30, 2016. The decrease of $15,000 in sales and marketing expense for the three months ended June 30, 2017 as compared to the three months ended June 30, 2016 was principally due to a decrease in personnel and other sales costs.

 

General and administration (“G&A”) expenses for the three months ended June 30, 2017 was $1.3 million as compared to $943,000 for the three months ended June 30, 2016. The increase of $363,000 in G&A expense for the three months ended June 30, 2017 as compared to the three months ended June 30, 2016 was principally due to increases to professional services and personnel.

 

Research and development costs during the three months ended June 30, 2017 was $224,000, as compared to $121,000 for the three months ended June 30, 2016. The increase in research and development costs for the three months ended June 30, 2017 as compared to the three months ended June 30, 2016 was due principally to an increase in the amount and timing of our product development expenditures.

 

24
 

 

ProPhase Labs, Inc. and Subsidiaries

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

 

Other income (expense) for the three months ended June, 2017 and 2016 was income of $151,000 compared to an expense of $53,000, respectively. The income for the three month ended June 30, 2017 was principally the result of the $150,000 of transition service fees earned by us. Other expense for the three months ended June 30, 2016 was principally comprise of the interest expense, inclusive of the warrant and loan origination costs, incurred pursuant to the terms of the secured promissory notes which were repaid on March 29, 2017.

 

For the three months ended June 30, 2017 and 2016, results from operations for our Cold-EEZE® Business are classified as discontinued operations. The carve out of the discontinued operations are derived from identifying and carving out the specific assets, liabilities, net sales, cost of sales, operating expenses and interest expense associated with the Cold-EEZE® Business’s operations. In addition, G&A, including personnel expenses, and bonuses, and research and development overhead costs incurred by us (for which the discontinued operation benefits from such resources) are allocated to discontinued operations based upon the percentage of the Cold-EEZE® Business’s net sales to our consolidated net sales. For the three months ended June 30, 2017 and 2016, we allocated (i) zero and $319,000, respectively, included in G&A and (ii) zero and $48,000, respectively, included in research and development expenses, in the accompanying condensed statements of operations.

 

As a consequence of the effects of the above, the net loss from continuing operations for the three months ended June 30, 2017 was $886,000, or ($0.06) per share, as compared to a net loss of $1.3 million, or ($0.08) per share, for the three months ended June 30, 2016. Net loss from discontinued operations for the three months ended June 30, 2017 was $1.4 million, or ($0.08) per share, as compared to net income of $198,000, or $0.01 per share, for the three months ended June 30, 2016. Net loss for the three months ended June 30, 2017 was $2.3 million, or ($0.14) per share, as compared to a net loss of $1.1 million, or ($0.07) per share, for the three months ended June 30, 2016.

 

Financial Condition and Results of Operations

 

Results from Continuing Operations for the Six Months Ended June 30, 2017 (as restated)

as Compared to the Six Months Ended June 30, 2016

 

For the six months ended June 30, 2017, net sales were $2.7 million as compared to $2.0 million for the six months ended June 30, 2016. The increase in net sales from period to period is due principally to an increase in the timing of shipments of lozenge-based products principally as a result of initial shipments to Mylan’s new OTC warehouse facility.

 

Cost of sales for the six months ended June 30, 2017 were $2.4 million as compared to $1.7 million for the six months ended June 30, 2016. Gross margins are generally influenced by fluctuations in quarter-to-quarter production volume, fixed production costs and related overhead absorption, raw ingredient costs, inventory mark to market write-downs, if any, and the timing of shipments to customers, which are factors of the seasonality of our sales activities and products.

 

Sales and marketing expense for the six months ended June 30, 2017 was $336,000 as compared to $534,000 for the six months ended June 30, 2016. The decrease of $198,000 in sales and marketing expense for the six months ended June 30, 2017 as compared to the six months ended June 30, 2016 was principally due to a decrease in advertising costs.

 

General and administration (“G&A”) expenses for the six months ended June 30, 2017 was $2.4 million as compared to $2.1 million for the six months ended June 30, 2016. The increase of $241,000 in G&A expense for the six months ended June 30, 2017 as compared to the six months ended June 30, 2016 was principally due to the net effect of (i) an increase principally due to a one-time charge for certain obsolete equipment, offset by (ii) a decrease in professional and legal fees.

 

Research and development costs during the six months ended June 30, 2017 was $258,000 as compared to $160,000 for the six months ended June 30, 2016. The increase in research and development costs for the six months ended June 30, 2017 as compared to the six months ended June 30, 2016 was due principally to an increase in the amount and timing of our product development expenditures.

 

Other income (expense) for the six months ended June 30, 2017 and 2016 was income of $97,000 compared to an expense of $105,000, respectively. Other income (expense) for the six month ended June 30, 2017 was principally the result of the net effects of (i) $150,000 of transition service fees earned by us, offset by (ii) interest expense, inclusive of the warrant and loan origination costs, of $54,000 incurred pursuant to the terms of the secured promissory notes. Other income (expense) for the six months ended June 30, 2016 was principally comprise of the interest expense, inclusive of the warrant and loan origination costs, incurred pursuant to the terms of the secured promissory notes which were repaid on March 29, 2017.

 

25
 

 

ProPhase Labs, Inc. and Subsidiaries

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

 

For the six months ended June 30, 2017, we charged to discontinued operations $3.1 million for estimated federal and state income taxes arising from the sale of the Cold-EEZE® Business and we have realized an income tax benefit from continuing operations of $1.0 million as a consequence of the utilization of the federal and state net operating losses.

 

For the six months ended June 30, 2017 and 2016, results from operations for our Cold-EEZE® Business are classified as discontinued operations The carve out of the discontinued operations are derived from identifying and carving out the specific assets, liabilities, net sales, cost of sales, operating expenses and interest expense associated with the Cold-EEZE® Business’s operations. In addition, G&A, including personnel expenses and bonuses, and research and development overhead expenses incurred by us (for which the discontinued operation benefits from such resources) are allocated to discontinued operations based upon the percentage of the Cold-EEZE® Business’s net sales to our consolidated net sales. For the six months ended June 30, 2017 and 2016, we allocated (i) $348,000 and $656,000, respectively, included in G&A and (ii) $52,000 and $95,000, respectively, included in research and development expenses, in the accompanying statements of operations.

 

As a consequence of the sale of the Cold-EEZE® Business, we recorded a gain on the sale of the assets of $42.7 million, net of $3.1 million of income tax.

 

As a consequence of the effects of the above, the net loss from continuing operations for the six months ended June 30, 2017 was $1.6 million, or ($0.10) per share, as compared to a net loss of $2.6 million, or ($0.15) per share, for the six months ended June 30, 2016. Net income from discontinued operations for the six months ended June 30, 2017 was $43.2 million, or $2.54 per share, as compared to net income of $168,000, or $0.01 per share, for the six months ended June 30, 2016. Net income for the six months ended June 30, 2017 was $41.6 million, or $2.44 per share, as compared to a net loss of $2.5 million, or ($0.14) per share, for the six months ended June 30, 2016.

 

Liquidity and Capital Resources

 

Our aggregate cash and cash equivalents as of June 30, 2017 were $37.3 million compared to $441,000 at December 31, 2016. The increase of $36.9 million in our cash balance for the six months ended June 30, 2017 was principally due to the net effect of (i) the net proceeds of $40.8 million, excluding the $5.0 million escrow receivable, derived from the sale of the Cold-EEZE® Business, (ii) proceeds from the exercise of stock options and warrants of $171,000, offset by (iii) payments of $1.5 million to retire the secured promissory notes, (iv) payments of $1.9 for the repurchase our Common Stock and (v) capital expenditures of $132,000.

 

Equity Line of Credit

 

On July 30, 2015, we entered into a new equity line of credit agreement (such arrangement, the “2015 Equity Line”) with Dutchess Opportunity Fund II, LP (“Dutchess”). Pursuant to the 2015 Equity Line, Dutchess committed to purchase, subject to certain restrictions and conditions, up to 3,200,000 shares of our Common Stock, over a period of 36 months from the effectiveness of the registration statement registering the resale of shares purchased by Dutchess pursuant to the Investment Agreement.

 

We may, at our discretion, draw on the 2015 Equity Line from time to time, as and when we determine appropriate in accordance with the terms and conditions of the 2015 Equity Line. The maximum number of shares that we are entitled to put to Dutchess in any one draw down notice shall not exceed 500,000 shares with a purchase price calculated in accordance with the 2015 Equity Line. We may deliver a notice for a subsequent put from time to time, following the one day pricing period for the prior put.

 

The purchase price shall be set at ninety-five percent (95%) of the volume weighted average price (VWAP) of the Common Stock during the one trading day immediately following our put notice. We have the right to withdraw all or any portion of any put, except that portion of the put that has already been sold to a third party, including any portion of a put that is below the minimum acceptable price set forth on the put notice, before the closing. In the event Dutchess receives more than a five percent (5%) return on the net sales for a specific put, Dutchess must remit such excess proceeds to us; however, in the event Dutchess receives less than a five percent (5%) return on the net sales for a specific put, Dutchess will have the right to deduct from the proceeds of the put amount on the applicable closing date so Dutchess’s return will equal five percent (5%).

 

26
 

 

ProPhase Labs, Inc. and Subsidiaries

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

 

There are put restrictions applied on days between the draw down notice date and the closing date with respect to that particular put. In addition, Dutchess will not be obligated to purchase shares if Dutchess’ total number of shares beneficially held at that time would exceed 4.99% of the number of shares of Common Stock as determined in accordance with Rule 13d-1(j) of the Securities Exchange Act of 1934, as amended. In addition, we are not permitted to draw on the facility unless there is an effective registration statement to cover the resale of the shares.

 

Pursuant to the terms of the 2015 Equity Line, we are obligated to file one or more registrations statements with the SEC to register the resale by Dutchess of the shares of Common Stock issued or issuable under the 2015 Equity Line. In addition, we are obligated to use all commercially reasonable efforts to have the registration statement declared effective by the SEC within 90 days after the registration statement is filed. On August 4, 2015, we filed a registration statement for the underlying shares of the 2015 Equity Line with the SEC and the registration statement was declared effective by the SEC on August 21, 2015.

 

At June 30, 2017, we have 2,450,000 shares of our Common Stock available for sale, at our discretion, under the terms of the 2015 Equity Line and covered pursuant to an effective registration statement.

 

General

 

As a consequence of the seasonality of our business, we realize variations in operating results and demand for working capital from quarter to quarter. As of June 30, 2017, we had working capital of approximately $38.0 million and 2,450,000 shares of Common Stock available for sale under the 2015 Equity line. We believe our current working capital, cash generated from operations and available 2015 Equity Line is an acceptable and adequate level of working capital to support our business for at least the next twelve months.

 

We have indemnification obligations to Mylan under the Asset Purchase Agreement that may require us to make future payments to Mylan and other related persons for any damages incurred by Mylan or such related persons as a result of any breaches of our representations, warranties, covenants or agreements contained in the Asset Purchase Agreement, or arising from the Retained Liabilities (as such term is defined in the Asset Purchase Agreement) or certain third party claims specified in the Asset Purchase Agreement. Generally, our representations and warranties survive for a period of 24 months from the closing date, other than certain fundamental representations which survive until the expiration of the applicable statute of limitations. There is a limited indemnification cap with respect to a majority of the Company’s indemnification obligations under the Asset Purchase Agreement with the exception of claims for actual fraud, the breach of any fundamental representations and certain other items, which have a larger indemnification cap (e.g., the purchase price).

 

Pursuant to the terms of the Asset Purchase Agreement, we, Mylan, and an escrow agent entered into an Escrow Agreement at closing, pursuant to which Mylan deposited $5 million of the aggregate purchase price for the Cold-EEZE® Business into an escrow account established with the Escrow Agent in order to satisfy, in whole or in part, certain of our indemnity obligations under the Asset Purchase Agreement. If, on the 18th month anniversary of the closing date, there are funds remaining in the escrow account, then the escrow account will be reduced by the difference, if a positive number, of (i) $2.5 million minus (ii) the aggregate amount of all escrow claims asserted by Mylan prior to this date that have either been paid out of the escrow account or are pending as of such date, and, within two business days of such date, the Escrow Agent will disburse such difference, if a positive number, to us. Within two business days of the second anniversary of the closing date, the Escrow Agent will release any funds remaining in the escrow account to us minus any amounts being reserved for escrow claims asserted by Mylan prior to such date. Upon the resolution of any pending escrow claims, the Escrow Agent will, within two business days of receipt of joint instructions or a final order from a court (as described in the Escrow Agreement) disburse such reserved amount to the parties entitled to such funds.

 

Our current cash position supports our (i) operations, (ii) reorganization costs associated with the sale of the Cold-EEZE® Business, (iii) current research and development expenditures and (iv) initial operating losses related to new products, including the launch of Legendz XL®. Additionally, we are active in exploring new product technologies, applications, product line extensions, new contract manufacturing applications and other new business opportunities consistent with our Company and brand image, and our standard of proven consumer benefit and efficacy.

 

27
 

 

ProPhase Labs, Inc. and Subsidiaries

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

 

Management is not aware of any other trends, events or uncertainties that have or are reasonably likely to have a material negative impact upon our (i) short-term or long-term liquidity, or (ii) net sales or income from continuing operations. Any challenge to our patent or trademark rights could have a material adverse effect on our future; however, we are not aware of any condition that would make such an event probable. Our business is subject to seasonal variations thereby impacting our liquidity and working capital during the course of our fiscal year.

 

To the extent that we do not generate sufficient cash from operations, our cash balances will decline. We may also use our cash to explore and/or acquire new product technologies, applications, product line extensions, new contract manufacturing applications and other new business opportunities. In the event that our available cash is insufficient to support such initiatives, we may need to incur indebtedness or issue Common Stock to finance plans for growth. Volatility in the credit markets and the liquidity of major financial institutions may have an adverse effect on our ability to fund our business strategy through borrowings, under either existing or newly created instruments in the public or private markets on terms that we believe to be reasonable, if at all.

 

Off-Balance Sheet Arrangements

 

It is not our usual business practice to enter into off-balance sheet arrangements such as guarantees on loans and financial commitments and retained interests in assets transferred to an unconsolidated entity for securitization purposes. We have no off-balance sheet arrangements that have, or are reasonably likely to have, a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

 

Critical Accounting Policies and Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Our significant accounting policies are described in Note 3 of Notes to Condensed Consolidated Financial Statements included under Item 1 of this Part I. However, certain accounting policies are deemed “critical”, as they require management’s highest degree of judgment, estimates and assumptions. These accounting estimates and disclosures have been discussed with Audit Committee of our Board of Directors. A discussion of our critical accounting policies, the judgments and uncertainties affecting their application and the likelihood that materially different amounts would be reported under different conditions or using different assumptions are as follows:

 

Revenue Recognition – Sales Allowances

 

When providing for the appropriate sales returns, allowances, cash discounts and cooperative incentive promotion costs (“Sales Allowances”), we apply a uniform and consistent method for making certain assumptions for estimating these provisions. These estimates and assumptions are based on historical experience, current trends and other factors that management believes to be relevant at the time the financial statements are prepared. Management reviews the accounting policies, assumptions, estimates and judgments on a quarterly basis. Actual results could differ from those estimates.

 

Pursuant to the terms of the Asset Purchase Agreement, we are responsible for and continue to accept product returns of the Cold-EEZE® Business for product shipped prior to March 30, 2017. Additionally, pursuant to the terms of the Asset Purchase Agreement, we allocated and, in June 2017, issued a credit to Mylan in an aggregate of $400,000 for future sales returns and allowances arising from certain product returns that were sold by us prior to March 30, 2017.

 

As of June 30, 2017 and December 31, 2016, we included a provision for sales allowances of zero and $108,000, respectively. Additionally, accrued advertising and other allowances as of June 30, 2017 included (i) $934,000 for estimated future sales returns and (ii) $598,000 for cooperative incentive promotion costs. As of December 31, 2016, accrued advertising and other allowances included (i) $1.2 million for estimated future sales returns and (ii) $1.5 million for cooperative incentive promotion costs.

 

Income Taxes

 

As of December 31, 2016, we have net operating loss carry-forwards of approximately $47.1 million for federal purposes that will expire beginning in Fiscal 2020 through 2036. Additionally, there are net operating loss carry-forwards of $22.1 million for state purposes that will expire beginning in Fiscal 2020 through 2036.

 

28
 

 

ProPhase Labs, Inc. and Subsidiaries

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

 

We believe that a significant portion of our income tax liability arising from our taxable gain for federal and state income tax purposes from the sale of the Cold-EEZE® Business will be offset to the extent of our current year losses from operations, the write-off for tax purposes of the tax-basis of the Cold-EEZE® Business and the available net operating loss carryforwards at the federal and state levels. However, for state income tax purposes, based upon the available state net operating loss carryforwards and corresponding limitations, we estimate a net income tax expense arising from the sale of the Cold-EEZE® Business of $2.1 million.

 

Utilization of net operating loss carryforwards may be subject to limitations as set forth in Section 382 of the Internal Revenue Code (“Section 382”). Based on our preliminary Section 382 analysis, we do not believe that our current net operating loss carryforwards are subject to these limitations as of June 30, 2017. However, until we complete a final Section 382 analysis upon filing of our 2017 income tax return, there can be no assurances that our preliminary analysis is accurate or complete. Should we identify any limitations upon the completion of our final Section 382 analysis, the impact could be material to our consolidated financial statements and that we could incur additional income tax expense arising from the sale of the Cold-EEZE® Business.

 

Until sufficient taxable income to offset the temporary timing differences attributable to operations, and the tax deductions attributable to option, warrant and stock activities are assured, a valuation allowance equaling the total deferred tax asset is being provided. As a consequence of the accumulated losses of the Company, we believe that this allowance is required due to the uncertainty of realizing these tax benefits in the future.

 

Recently Issued Accounting Standards

 

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”, on revenue recognition. The new standard provides for a single five-step model to be applied to all revenue contracts with customers as well as requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This ASU, as amended, is effective for fiscal years and interim periods within those years beginning after December 15, 2017. We are currently assessing the impact of this update, but preliminarily believe that its adoption will not have a material impact on our consolidated financial statements.

 

In February 2016, the FASB issued ASU No. 2016-02 “Leases”. The new standard will require most leases to be recognized on the balance sheet which will increase reported assets and liabilities. Lessor accounting remains substantially similar to current guidance. The new standard is effective for annual and interim periods in fiscal years beginning after December 15, 2018, which for us is the first quarter of fiscal 2019 and mandates a modified retrospective transition method. We do not intend to early adopt and are currently assessing the impact of this update, but preliminarily believe that its adoption will not have a material impact on our consolidated financial statements.

 

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses.” The standard modifies the impairment model for most financial assets, including trade accounts receivables and loans, and will require the use of an “expected loss” model for instruments measured at amortized cost. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The effective date of the standard is for fiscal years beginning after December 15, 2019 with early adoption permitted. We are currently evaluating the impact of adoption of this update on our consolidated financial statements.

 

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments”. The new standard attempts to reduce diversity in practice in how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU No. 2016-15 provides guidance on eight specific cash flow issues. The new guidance will be effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted including adoption in an interim period. We do not intend to early adopt and we are currently assessing the impact of adoption of this update will have on our consolidated financial statements.

 

In October 2016, the FASB issued ASU No. 2016-16, “Income Taxes: Intra-Entity Transfers of Assets Other than Inventory”. The new standard requires entities should recognize the income tax consequences of an asset other than inventory when the asset transfer occurs. The new guidance will be effective for fiscal years beginning after December 15, 2017 and requires a modified retrospective adoption through a cumulative effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are currently evaluating the impact of adoption of this update on our consolidated financial statements.

 

29
 

 

ProPhase Labs, Inc. and Subsidiaries

Management’s Discussion and Analysis of

Financial Condition and Results of Operations

 

Forward-Looking Statements

 

This Quarterly Report contains “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward looking statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by the forward-looking statements. Many of these factors are beyond our ability to predict. Given the risks and uncertainties surrounding forward-looking statements, you should not place undue reliance on these statements. Forward-looking statements typically are identified by use of terms such as “anticipate”, “believe”, “plan”, “expect”, “intend”, “may”, “will”, “should”, “estimate”, “predict”, “potential”, “continue” and similar words although some forward-looking statements are expressed differently. This Quarterly Report may contain forward-looking statements attributed to third parties relating to their estimates regarding the growth of our markets. You are cautioned that such forward looking statements are not guarantees of future performance and that all forward-looking statements address matters that involve risk and uncertainties, and there are many important risks, uncertainties and other factors that could cause our actual results, levels of activity, performance, achievements and prospects, as well as those of the markets we serve, to differ materially from the forward-looking statements contained in this Quarterly Report.

 

Such risks and uncertainties include, but are not limited to:

 

The ability of our management to successfully implement our business plan and strategy;
Our ability to fund our operations including the cost and availability of capital and credit;
Our ability to compete effectively, including our ability to maintain and increase our markets and/or market share in the markets in which we do business;
Our ability to grow our manufacturing business and operate it profitably;
Our ability to successfully develop and commercialize our existing products and new products without leveraging the Cold-EEZE® brand name;
Changes in our retail and distribution customers strategic business plans including, but not limited to, (i) expansions, mergers, and/or consolidations, (ii) retail shelf space allocations for products within each outlet and in particular the homeopathic and health care category in which we compete, (iii) changes in their private label assortment and (iv) product selections, distribution allocation, merchandising programs and retail pricing of our products as well as competitive products;
The general financial and economic uncertainty, fluctuations in consumer confidence and the strength of the United States economy, and their impacts on our business including demand for our products;
Our ability to protect our proprietary rights;
Our continued ability to comply with regulations relating to our current products and any new products we develop, including our ability to effectively respond to changes in laws and regulations or the interpretation thereof including changing market rules and evolving federal, state and regional laws and regulations;
Potential disruptions in our ability to manufacture our products or our access to raw materials;
Seasonal fluctuations in demand for our products;
Our ability to attract, retain and motivate our key employees;
Other risks identified in this Quarterly Report.

 

You should also consider carefully the statements under other sections of this Quarterly Report and our 2016 Annual Report, as well as in other documents we file from time to time with the SEC which address additional risks that could cause our actual results to differ from those set forth in any forward-looking statements. Our forward-looking statements speak only as the date of this Quarterly Report. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise.

 

30
 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

 

Like virtually all commercial enterprises, we can be exposed to the risk (“market risk”) that the cash flows to be received or paid relating to certain financial instruments could change as a result of changes in interest rate, exchange rates, commodity prices, equity prices and other market changes.

 

Our operations are not subject to risks of material foreign currency fluctuations, nor do we use derivative financial instruments in our investment practices. We place our marketable investments in instruments that meet high credit quality standards. We do not expect material losses with respect to our investment portfolio or exposure to market risks associated with interest rates. The impact on our results of one percentage point change in short-term interest rates would not have a material impact on our future earnings, fair value, or cash flows related to investments in cash equivalents or interest-earning marketable securities.

 

Current economic conditions may cause a decline in business and consumer spending which could adversely affect our business and financial performance including the collection of accounts receivables, realization of inventory and recoverability of assets. In addition, our business and financial performance may be adversely affected by current and future economic conditions, including due to a reduction in the availability of credit, financial market volatility and recession.

 

Item 4. Controls and Procedures.

 

Disclosure Controls and Procedures

 

The management of the Company, under the supervision and with the participation of our Chief Executive Officer and Principal Accounting Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of June 30, 2017. Based on this evaluation, our Chief Executive Officer and Principal Accounting Officer have concluded that, as of that date and due to the material weakness described below, the Company’s disclosure controls and procedures were not effective to provide reasonable assurance that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer and our Chief Accounting Officer, as appropriate, to allow timely decisions regarding required disclosure. During the quarter ended June 30, 2017, there were no changes in our internal control over financial reporting that materially affected, or were reasonably likely to materially affect, our internal control over financial reporting. In addition, management has begun implementation of some of the remediation measures in August 2018 to address the material weakness identified as a result of the Restatement.

 

A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurances that the objectives of the control system will be met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the company have been detected. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected. However, our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives.

 

Because of its inherent limitations, a system of internal control over financial reporting can provide only reasonable assurance and may not prevent or detect misstatements. Further, because of changes in conditions, effectiveness of internal controls over financial reporting may vary over time. Our system contains self-monitoring mechanisms, and actions are taken to correct deficiencies as they are identified.

 

Our management conducted an evaluation of our effectiveness of the system of internal control over financial reporting based on the framework in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework).

 

Following the filing of our original 2017 Form 10-K and during the financial statement close process for the quarter ended June 30, 2018 in connection with the preparation of our 2017 Federal and State income tax returns, management identified a material weakness that existed as of June 30, 2017 and at December 31, 2017, primarily related to our lack of adequate controls over the accounting for recording of income tax expense and the allocation of income tax expense/ benefit between continuing and discontinued operations.

 

Plan for Material Weakness in Internal Control over Financial Reporting

 

Starting in August 2018, the Company’s management has begun to design and implement certain remediation measures to address the above-described material weakness and enhance the Company’s internal control over financial reporting. We will take the following actions to improve the design and operating effectiveness of our internal control in order to remediate this material weakness:

 

As part of our remediation measure, the Company has identified and will implement plans to enhance the Company’s process and controls including ensuring adequate, resources, use of tax accounting experts and management oversight with respect to the review of income tax reporting and disclosures.

 

31
 


 

Part II. Other Information

 

Item 1. Legal Proceedings.

 

The Company is not currently involved in any legal proceeding arising in the normal course of business. From time to time, the Company could become involved in disputes and various litigation matters that arise in the normal course of business. These may include disputes and lawsuits related to intellectual property, licensing, contract law and employee relations matters.

 

Item 1A. Risk Factors.

 

The risks described in Item 1A. Risk Factors of our Quarterly Report on Form 10-Q filed with the SEC on May 15, 2017 (“May 2017 Quarterly Report”) are updated as follows:

 

Any of the following risks could materially affect our business, financial condition, or results of operations. These risks could also cause our actual results to differ materially from those indicated in the forward-looking statements contained herein and elsewhere. The risks described in our May 2017 Quarterly Report, as updated below are not the only risks facing us. Additional risks not currently known to us or those we currently deem to be immaterial may also materially and adversely affect our business, financial condition or results of operations.

 

We have a history of losses

 

We have experienced net losses for each of the four of the past five fiscal years. There can be no assurance that our strategic focus will result in any revenue growth or that we will be successful in initiating or acquiring any new lines of business, or that any such new lines of business will achieve profitability. As of June 30, 2017, we had working capital of approximately $38.0million which we believe is an acceptable and adequate level of working capital to support our business for at least the next twelve months ending August 2018. Our ability to fund working capital and debt service needs will depend on our ability to generate cash in the future.

 

Our ability to use our net operating loss carryforwards to offset future taxable income may be subject to certain limitations

 

In general, under Section 382 of the Internal Revenue Code of 1986, as amended (the “Section 382”), a corporation that undergoes an “ownership change” is subject to limitations on its ability to use its pre-change net operating loss carryforwards, or NOLs, to offset future taxable income. Future changes in our stock ownership, some of which are outside of our control, could result in an ownership change under Section 382. Furthermore, our ability to use NOLs of companies that we may acquire in the future may be subject to limitations.

 

We believe that a significant portion of our income tax liability arising from our taxable gain for federal and state income tax purposes from the sale of the Cold-EEZE® Business will be offset to the extent of our current year losses from operations, the write-off for tax purposes of the tax-basis of the Cold-EEZE® Business and the available net operating loss carryforwards at the federal and state levels.

 

Based on our preliminary Section 382 analysis, we do not believe that our current net operating loss carryforwards are subject to these limitations as of June 30, 2017. However, until we complete a final Section 382 analysis upon filing of our 2017 income tax return, there can be no assurances that our preliminary analysis is accurate or complete. Should we identify any limitations upon the completion of our final Section 382 analysis, the impact could be material to our consolidated financial statements and that we could incur additional income tax expense arising from the sale of the Cold-EEZE® Business.

 

Future sales of shares of our Common Stock in the public market could adversely affect the trading price of shares of our Common Stock and our ability to raise funds in new stock offerings

 

Future sales of substantial amounts of shares of our Common Stock in the public market, or the perception that such sales are likely to occur, could affect prevailing trading prices of our Common Stock.

 

As of June 30, 2017, there were outstanding options, which were fully vested, to purchase an aggregate of 1,609,000 shares of our Common Stock at an average exercise price of $1.21 per share. If these options are exercised, and the holders of these options were to attempt to sell a substantial amount of their holdings at once, the market price of our Common Stock would likely decline. Moreover, the perceived risk of this potential dilution could cause stockholders to attempt to sell their shares and investors to “short” our stock, a practice in which an investor sells shares that he or she does not own at prevailing market prices, hoping to purchase shares later at a lower price to cover the sale. As each of these events would cause the number of shares of Common Stock being offered for sale to increase, our Common Stock’s market price would likely further decline. All of these events could combine to make it very difficult for us to sell equity or equity-related securities in the future at a time and price that we deem appropriate.

 

32
 

 

Our officers and directors own a substantial amount of our Common Stock

 

As of June 30, 2017, our executive officers and directors beneficially owned approximately 25% of our Common Stock. These individuals have significant influence over the outcome of all matters submitted to stockholders for approval, including the election of directors. Consequently, they exercise substantial influence over all major decisions including major corporate actions such as mergers and other business combinations transactions which could result in or prevent a change of control of the Company. Circumstances may occur in which the interests of our officers and directors could be in conflict with the interests of other stockholders. Accordingly, a stockholder’s ability to influence us through voting their shares may be limited or the market price of our Common Stock may be adversely affected.

 

We have identified a material weakness in our internal control over financial reporting which, if not timely remediated, may adversely affect the accuracy and reliability of our financial statements, and our reputation, business and the price of our common stock, as well as lead to a loss of investor confidence in us.

 

In completing our Federal and State tax preparation review procedures during the second quarter of 2018, the Company identified errors in the treatment of the Net Operating Loss (NOL) limitations and our treatment of the amount of tax benefit allocated to continuing operations. We did not perform an effective risk assessment related to our internal controls over the accounting for income taxes. As a result, we identified a deficiency in the design of our internal control over financial reporting related to our accounting for income taxes, which affected the recording of income tax accounts by us in our interim and annual consolidated financial statements during 2017, including audit adjustments to the income tax accounts. As described under “Item 4. Controls and Procedures” above, our management has concluded that this deficiency constitutes a material weakness in our internal control over financial reporting and, accordingly, internal control over financial reporting and our disclosure controls and procedures were not effective as of December 31, 2017.

 

A material weakness is a deficiency, or a 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.

 

While we have developed and are in the process of implementing a remediation plan to remediate this material weakness, there can be no assurance that this will occur in 2018. We may identify additional material weaknesses in our internal control over financial reporting in the future. If we are unable to remediate this material weakness or we identify additional material weaknesses in our internal control over financial reporting in the future, our ability to analyze, record and report financial information accurately, to prepare our financial statements within the time periods specified by the rules and forms of the SEC and to otherwise comply with our reporting obligations under the federal securities laws and our long-term debt and credit agreements will likely be adversely affected. The occurrence of, or failure to remediate, this material weakness and any future material weaknesses in our internal control over financial reporting may adversely affect the accuracy and reliability of our financial statements, and our reputation, business and the price of our Common Stock or any other securities we may issue, as well as lead to a loss of investor confidence in us.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

 

None

 

Item 3. Defaults Upon Senior Securities.

 

None

 

Item 4. Mine Safety Disclosures.

 

Not applicable

 

Item 5. Other Information.

 

None

 

33
 

 

Item 6. Exhibits

 

Exhibit No.   Description
     
10.1   Stock Purchase Agreement, dated June 12, 2017, by and between ProPhase Labs, Inc. and Mark Leventhal (incorporated by reference to Exhibit 10.1 to the Form 8-K (File No. 000-21617) filed on June 14, 2017
     
10.2   Stock Purchase Agreement, dated June 12, 2017, by and between ProPhase Labs, Inc. and Mark S. Leventhal and Donna R. Leventhal (incorporated by reference to Exhibit 10.2 to the Form 8-K (File No. 000-21617) filed on June 14, 2017
     
10.3   Stock Purchase Agreement, dated June 12, 2017, by and between ProPhase Labs, Inc. and Mark S. and Donna R Family Foundation, Inc. (incorporated by reference to Exhibit 10.3 to the Form 8-K (File No. 000-21617) filed on June 14, 2017
     
10.4   Stock Purchase Agreement, dated June 12, 2017, by and between The Bonnybrook Trust and ProPhase Labs, Inc. (incorporated by reference to Exhibit 10.4 to the Form 8-K (File No. 000-21617) filed on June 14, 2017
     
31.1   Certification by the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
     
31.2   Certification by the Chief Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
     
32.1   Certification by the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
     
32.2   Certification by the Chief Accounting Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
     
101. INS#   XBRL Instance Document
     
101.SCH#   XBRL Taxonomy Extension Schema Document
     
101.CAL#   XBRL Taxonomy Extension Calculation Linkbase Document
     
101.DEF#   XBRL Taxonomy Extension Definition Linkbase Document
     
101.LAB#   XBRL Taxonomy Extension Label Linkbase Document
     
101.PRE#   XBRL Taxonomy Extension Presentation Linkbase Document

 

34
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

  ProPhase Labs, Inc.
     
  By: /s/ Ted Karkus
    Ted Karkus
    Chairman of the Board and Chief Executive Officer
    (Principal Executive Officer)

 

Date: August 20, 2018

 

  By: /s/ Monica Brady
    Monica Brady
    Chief Accounting Officer
    (Principal Financial Officer and Principal Accounting Officer)

 

Date: August 20, 2018

 

35
 

EX-31.1 2 ex31-1.htm

 

EXHIBIT 31.1

 

OFFICER’S CERTIFICATION PURSUANT TO

RULE 13a-14(a)/15d-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934

 

I, Ted Karkus, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q/A of ProPhase Labs, Inc.;
   
2. Based on my knowledge, this Quarterly Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Quarterly Report;
   
3. Based on my knowledge, the financial statements, and other financial information included in this Quarterly Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Quarterly Report;
   
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f) for the registrant and have:

 

  (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Quarterly Report is being prepared;
     
  (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
     
  (c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this Quarterly Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
     
  (d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
     
  (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: August 20, 2018    
  By: /s/ Ted Karkus
    Ted Karkus
    Chairman of the Board and Chief Executive Officer
    (Principal Executive Officer)

 

 
 

EX-31.2 3 ex31-2.htm

 

EXHIBIT 31.2

 

OFFICER’S CERTIFICATION PURSUANT TO

RULE 13a-14(a)/15d-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934

 

I, Monica Brady., certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q/A of ProPhase Labs, Inc.;
   
2. Based on my knowledge, this Quarterly Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Quarterly Report;
   
3. Based on my knowledge, the financial statements, and other financial information included in this Quarterly Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Quarterly Report;
   
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f) for the registrant and have:

 

  (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Quarterly Report is being prepared;
     
  (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
     
  (c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this Quarterly Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
     
  (d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
     
  (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: August 20, 2018    
  By: /s/ Monica Brady
    Monica Brady
   

Chief Accounting Officer

(Principal Accounting and Financial Officer)

 

 
 

 

EX-32.1 4 ex32-1.htm

 

EXHIBIT 32.1

 

PROPHASE LABS, INC.

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO RULE 13a-14(b) OF THE SECURITIES EXCHANGE ACT OF 1934

AND 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Ted Karkus, Chief Executive Officer of ProPhase Labs, Inc., a Delaware corporation (the “Registrant”), in connection with the Registrant’s Quarterly Report on Form 10-Q/A for the period ended June 30, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), do hereby represent, warrant and certify, in compliance with Rule 13a-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

 

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
   
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

  /s/ Ted Karkus
  Ted Karkus
  Chairman of the Board and Chief Executive Officer
  (Principal Executive Officer)
  August 20, 2018

 

 
 

 

EX-32.2 5 ex32-2.htm

 

EXHIBIT 32.2

 

PROPHASE LABS, INC.

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO RULE 13a-14(b) OF THE SECURITIES EXCHANGE ACT OF 1934

AND 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Monica Brady, Chief Accounting Officer of ProPhase Labs, Inc., a Delaware corporation (the “Registrant”), in connection with the Registrant’s Quarterly Report on Form 10-Q/A for the period ended June 30, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), do hereby represent, warrant and certify, in compliance with Rule 13a-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

 

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
   
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

 

  /s/ Monica Brady
  Monica Brady
  Chief Accounting Officer
 

(Principal Accounting and Financial Officer)

  August 20, 2018

 

 
 

EX-101.INS 6 prph-20170630.xml XBRL INSTANCE FILE 0000868278 2017-01-01 2017-06-30 0000868278 2016-12-31 0000868278 2017-06-30 0000868278 PRPH:EstimatedFutureSalesReturnMember 2017-06-30 0000868278 us-gaap:EmploymentContractsMember 2017-06-30 0000868278 us-gaap:DomesticCountryMember 2016-01-01 2016-12-31 0000868278 us-gaap:StateAndLocalJurisdictionMember 2016-01-01 2016-12-31 0000868278 PRPH:TwoThousandTenEquityCompensationPlanMember 2010-05-05 0000868278 PRPH:TwoThousandFifteenEquityLineOfCreditMember PRPH:DutchessMember 2015-07-29 2015-07-30 0000868278 us-gaap:SecuredDebtMember 2015-12-11 0000868278 2015-12-11 0000868278 2015-12-10 2015-12-11 0000868278 us-gaap:CommonStockMember 2016-12-31 0000868278 us-gaap:AdditionalPaidInCapitalMember 2016-12-31 0000868278 us-gaap:RetainedEarningsMember 2016-12-31 0000868278 us-gaap:TreasuryStockMember 2016-12-31 0000868278 us-gaap:MachineryAndEquipmentMember us-gaap:MinimumMember 2017-01-01 2017-06-30 0000868278 us-gaap:MachineryAndEquipmentMember us-gaap:MaximumMember 2017-01-01 2017-06-30 0000868278 us-gaap:FurnitureAndFixturesMember 2017-01-01 2017-06-30 0000868278 PRPH:StockholderRightsPlanMember 2017-01-01 2017-06-30 0000868278 PRPH:TwoThousandFifteenEquityLineOfCreditMember PRPH:DutchessMember 2017-01-01 2017-06-30 0000868278 PRPH:TwoThousandFifteenEquityLineOfCreditMember PRPH:DutchessMember 2017-06-30 0000868278 PRPH:TwoThosandTenDirectorsEquityCompensationPlanMember 2017-06-30 0000868278 PRPH:StockholderRightsPlanMember 2017-06-30 0000868278 2016-01-01 2016-06-30 0000868278 PRPH:ChairmanandChiefExecutiveOfficerMember PRPH:RightsAgreementMember 2017-01-01 2017-06-30 0000868278 PRPH:TwoThousandTenEquityCompensationPlanMember 2016-05-24 0000868278 2016-06-30 0000868278 us-gaap:CommonStockMember 2017-01-01 2017-06-30 0000868278 us-gaap:CommonStockMember 2017-06-30 0000868278 us-gaap:AdditionalPaidInCapitalMember 2017-01-01 2017-06-30 0000868278 us-gaap:AdditionalPaidInCapitalMember 2017-06-30 0000868278 us-gaap:RetainedEarningsMember 2017-01-01 2017-06-30 0000868278 us-gaap:RetainedEarningsMember 2017-06-30 0000868278 us-gaap:TreasuryStockMember 2017-01-01 2017-06-30 0000868278 us-gaap:TreasuryStockMember 2017-06-30 0000868278 2015-12-31 0000868278 2016-01-01 2016-12-31 0000868278 PRPH:EstimatedFutureSalesReturnMember 2016-12-31 0000868278 us-gaap:SegmentDiscontinuedOperationsMember 2017-01-01 2017-06-30 0000868278 us-gaap:SegmentDiscontinuedOperationsMember 2016-01-01 2016-06-30 0000868278 PRPH:ColdEEZEBusinessMember 2017-03-28 2017-03-29 0000868278 PRPH:ColdEEZEBusinessMember PRPH:InvestorsMember 2017-03-28 2017-03-29 0000868278 PRPH:NineteeenNinetySevenEquityCompensationPlanMember 2010-05-05 0000868278 PRPH:TwoThosandTenDirectorsEquityCompensationPlanMember 2017-01-01 2017-06-30 0000868278 PRPH:MylanandEscrowAgentMember PRPH:EscrowAgreementMember 2017-06-30 0000868278 PRPH:MylanandEscrowAgentMember PRPH:EscrowAgreementMember 2017-01-01 2017-06-30 0000868278 PRPH:ColdEEZEBusinessMember 2017-01-01 2017-06-30 0000868278 PRPH:CooperativeIncentiveMember 2017-01-01 2017-06-30 0000868278 us-gaap:BuildingImprovementsMember us-gaap:MinimumMember 2017-01-01 2017-06-30 0000868278 us-gaap:BuildingImprovementsMember us-gaap:MaximumMember 2017-01-01 2017-06-30 0000868278 PRPH:ComputerSoftwareMember 2017-01-01 2017-06-30 0000868278 PRPH:CooperativeIncentiveMember 2016-01-01 2016-12-31 0000868278 PRPH:AssetPurchaseAgreementMember 2017-06-30 0000868278 PRPH:AssetPurchaseAgreementMember 2017-01-01 2017-06-30 0000868278 2017-04-01 2017-06-30 0000868278 2016-04-01 2016-06-30 0000868278 2017-08-11 0000868278 us-gaap:SegmentDiscontinuedOperationsMember 2017-04-01 2017-06-30 0000868278 us-gaap:SegmentDiscontinuedOperationsMember 2016-04-01 2016-06-30 0000868278 PRPH:AssetPurchaseAgreementMember PRPH:MylanMember 2017-01-01 2017-06-30 0000868278 PRPH:AssetPurchaseAgreementMember PRPH:MylanMember 2017-06-30 0000868278 PRPH:AssetPurchaseAgreementMember PRPH:MylanMember 2017-04-01 2017-06-30 0000868278 2017-06-15 0000868278 PRPH:EmployeesMember 2017-01-01 2017-06-30 0000868278 PRPH:EmployeesMember 2016-01-01 2016-06-30 0000868278 PRPH:TwoThousandTenPlanMember 2017-06-30 0000868278 PRPH:StockPurchaseAgreementMember 2017-06-11 2017-06-12 0000868278 PRPH:StockPurchaseAgreementMember 2017-06-12 0000868278 PRPH:StockPurchaseAgreementMember PRPH:LeventhalHoldersMember 2017-06-11 2017-06-12 0000868278 PRPH:StockPurchaseAgreementMember PRPH:LeventhalHoldersMember 2017-06-12 0000868278 us-gaap:ScenarioPreviouslyReportedMember 2017-06-30 0000868278 us-gaap:RestatementAdjustmentMember 2017-06-30 0000868278 us-gaap:ScenarioPreviouslyReportedMember 2017-04-01 2017-06-30 0000868278 us-gaap:RestatementAdjustmentMember 2017-04-01 2017-06-30 0000868278 us-gaap:ScenarioPreviouslyReportedMember 2017-01-01 2017-06-30 0000868278 us-gaap:RestatementAdjustmentMember 2017-01-01 2017-06-30 xbrli:shares iso4217:USD iso4217:USD xbrli:shares xbrli:pure 10-Q/A true 2017-06-30 Q2 ProPhase Labs, Inc. --12-31 Smaller Reporting Company PRPH 5134000 5274000 0.0005 0.0005 50000000 50000000 9232817 10294797 2209000 17221776 26313593 26454593 147808 1.35 45 0.0005 0.0005 1000000 1000000 1404000 1590000 466000 342000 866000 34000 3000000 51000 14000 2017-06-15 0.143 22000 1500000 54000 105000 <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The components of inventory are as follows (in thousands):</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">June 30, 2017</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">December 31, 2016</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 54%; text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Raw materials</font></td> <td style="width: 2%; line-height: 107%">&#160;</td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 20%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,590</font></td> <td style="width: 1%; line-height: 107%">&#160;</td> <td style="width: 1%; line-height: 107%">&#160;</td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 19%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,404</font></td> <td style="width: 1%; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Work in process</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">342</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">466</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Finished goods</font></td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">34</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">866</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,966</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,736</font></td> <td style="line-height: 107%">&#160;</td></tr> </table> <p style="margin: 0pt"></p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We have estimated future minimum obligations over the next five years, including the remainder of Fiscal 2017, as follows (in thousands):</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Fiscal year</font></td> <td style="line-height: 107%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Employment&#160;</font><br /> <font style="font: 10pt Times New Roman, Times, Serif">Contracts</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 66%; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2017</font></td> <td style="width: 2%; line-height: 107%">&#160;</td> <td style="width: 1%; line-height: 107%">&#160;</td> <td style="width: 30%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">338</font></td> <td style="width: 1%; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2018</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">675</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2019</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2020</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2021</font></td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,013</font></td> <td style="line-height: 107%">&#160;</td></tr> </table> <p style="margin: 0pt"></p> 0000868278 5962000 45875000 13000 56378000 -19687000 -30742000 13000 56567000 21895000 -32600000 46626000 -751000 258000 160000 52000 95000 224000 121000 0 48000 1027000 1000000 574000 574000 18123000 -17096000 41582000 -2463000 41582000 -2305000 -1127000 -2305000 42333000 -751000 42684000 3100000 -584000 -10000 -574000 26339000 16345000 530000 168000 -835000 198000 17080776 16159796 51000 348000 656000 319000 52000 95000 48000 1600000 1700000 400000 934000 1200000 0 108000 53000 339000 2800000 3300000 598000 1500000 21000 139000 205000 471000 263000 17000 18000 1000 18000 1000 4687000 6179000 -371000 1826000 2037000 2427000 264000 728000 1720000 2833000 200000 533000 0.12 0.12 1553000 69000 50000000 -4175000 13000 45812000 3128000 43145000 133659 47100000 22100000 Expire beginning for the year ended December 31, 2020 through 2036 Expire beginning for the year ended December 31, 2020 through 2036 5000000 5000000 2022-03-29 650190 244112 641754 276165 2100000 43000 43000 -43000 -43000 P3Y P7Y P5Y P10Y P39Y P3Y P10Y P3Y <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>Note 1 &#8211; Organization and Business</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">ProPhase Labs, Inc. (&#8220;we&#8221;, &#8220;us&#8221; or the &#8220;Company&#8221;) was initially organized in Nevada in July 1989. Effective June 18, 2015, we changed our state of incorporation from the State of Nevada to the State of Delaware. We are a manufacturer, marketer and distributor of a diversified range of health care and cold remedy products that are offered to the general public. We are also engaged in the research and development of potential over-the-counter (&#8220;OTC&#8221;) drug and natural base health products including supplements, personal care and cosmeceutical products.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>Discontinued Operations</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Prior to March 29, 2017, our flagship OTC drug brand was Cold-EEZE<sup>&#174;</sup>&#160;and our principal product was Cold-EEZE<sup>&#174;&#160;</sup>cold remedy zinc gluconate lozenges, proven in clinical studies to reduce the duration and severity of symptoms of the common cold. In addition to Cold-EEZE<sup>&#174;</sup>&#160;cold remedy lozenges, we also marketed and distributed non-lozenge forms of our proprietary zinc gluconate formulation, (i) Cold-EEZE<sup>&#174;</sup>&#160;cold remedy QuickMelts<sup>&#174;</sup>, (ii) Cold-EEZE<sup>&#174;&#160;</sup>Gummies and (iii) Cold-EEZE<sup>&#174;</sup>&#160;cold remedy Oral Spray. Each of the Cold-EEZE<sup>&#174;</sup>&#160;QuickMelts<sup>&#174;&#160;</sup>and Gummies products are based on a proprietary zinc gluconate formulation in combination with certain (i) immune system support, (ii) energy, (iii) sleep and relaxation, and/or (iv) cold and flu symptom relieving active ingredients.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On January 6, 2017, we signed an asset purchase agreement (as amended, the &#8220;Asset Purchase Agreement&#8221;), by and among the Company, Meda Consumer Healthcare Inc. (&#8220;MCH&#8221;) and Mylan Inc. (together with MCH, &#8220;Mylan&#8221;), for the sale of assets by us to Mylan (see Note 4). The sale of assets (i) was subject to stockholder approval and other customary closing conditions and (ii) consisted principally of the sale of our intellectual property rights and other assets relating to our Cold-EEZE<sup>&#174;&#160;</sup>brand and product line (collectively, referred to herein as the &#8220;Cold-EEZE<sup>&#174;</sup>&#160;Business&#8221;) to Mylan, including all current and pipeline over-the-counter allergy, cold, flu, multi-symptom relief and immune support treatments for adults and children to the extent each is, or is intended to be, branded &#8220;Cold-EEZE<sup>&#174;</sup>&#8221;, and all private label versions thereof, including all formulations and derivatives thereof as set forth in the Asset Purchase Agreement.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">A special meeting of our stockholders was held on March 29, 2017 (the &#8220;Special Meeting&#8221;). At the Special Meeting, our stockholders approved the sale of assets and the transactions contemplated by the Asset Purchase Agreement. Effective March 29, 2017, we completed the sale of the Cold-EEZE<sup>&#174;&#160;</sup>Business to Mylan. As a consequence of the sale of the Cold-EEZE<sup>&#174;&#160;</sup>Business, for the three and six months ended June 30, 2017 and 2016, we have classified as discontinued operations (i) the gain from the sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business, (ii) all income and expenses attributable to the Cold-EEZE<sup>&#174;&#160;</sup>Business and (iii) the income tax expense attributed to the sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business (see Notes 4 and 7). Excluded from the sale of the Cold-EEZE<sup>&#174;&#160;</sup>Business were our accounts receivable and inventory, and we also retained all liabilities associated with our Cold-EEZE<sup>&#174;&#160;</sup>Business operations arising prior to March 29, 2017.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>Continuing Operations</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We continue to own and operate our manufacturing facility and manufacturing business in Lebanon, Pennsylvania, and our headquarters in Doylestown, Pennsylvania. As part of the sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business, we entered into a manufacturing agreement (see Note 8) with Mylan and our wholly-owned subsidiary, Pharmaloz Manufacturing, Inc. (&#8220;PMI&#8221;), to supply various Cold-EEZE<sup>&#174;</sup>&#160;lozenge products to Mylan. In addition to the production services we provide to Mylan under the manufacturing agreement, we produce OTC drug and dietary supplement lozenges and other products for other third party customers in addition to performing operational tasks such as warehousing, customer order processing and shipping.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We are also pursuing a series of new product development and pre-commercialization initiatives in the OTC dietary supplement category. Initial OTC dietary supplement product development activities were completed in the fourth quarter of Fiscal 2015 under the brand name of TK Supplements<sup>&#174;</sup>. The TK Supplements<sup>&#174;</sup>&#160;product line comprises three men&#8217;s health products: (i) Legendz XL<sup>&#174;</sup>&#160;for sexual health, (ii) Triple Edge XL<sup>&#174;</sup>, a daily energy booster plus testosterone support, and (iii) Super ProstaFlow Plus<sup>TM</sup>&#160;for prostate and urinary health. We recently completed a broad series of clinical studies which support important product claims which have now been incorporated in our product packaging and marketing communications. In addition to developing direct-to-consumer (&#8220;Direct Response&#8221;) marketing strategies of Legendz XL<sup>&#174;</sup>, we received initial product acceptance and shipped into a national chain drug retailer during the second quarter of Fiscal 2017. In addition, we have received initial product acceptance from several regional retailers to begin shipments in the third and fourth quarters of Fiscal 2017.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">For the three and six months ended June 30, 2017 and 2016, our revenues from continuing operations have come principally from our OTC health care products.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We use a December 31 year-end for financial reporting purposes. References herein to &#8220;Fiscal 2017&#8221; shall mean the fiscal year ended December 31, 2017 and references to other &#8220;Fiscal&#8221; years shall mean the year, which ended on December 31 of the year indicated. The term &#8220;we&#8221;, &#8220;us&#8221; or the &#8220;Company&#8221; as used herein also refer, where appropriate, to the Company, together with its subsidiaries unless the context otherwise requires.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>Note 3 &#8211; Summary of Significant Accounting Policies</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Basis of Presentation</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.6in">The unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial statements and within the rules of the Securities and Exchange Commission (&#8220;SEC&#8221;) applicable to interim financial statements and therefore do not include all disclosures that might normally be required for financial statements prepared in accordance with accounting principles generally accepted in the United States of America (&#8220;GAAP&#8221;). The accompanying unaudited condensed consolidated financial statements have been prepared by management without audit and should be read in conjunction with our consolidated financial statements, including the notes thereto, appearing in our Annual Report on Form 10-K for the year ended December 31, 2016. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial position, consolidated results of operations and consolidated cash flows, for the periods indicated, have been made. The results of operations for the three and six months ended June 30, 2017 are not necessarily indicative of operating results that may be achieved over the course of the full year. Historical financial statements have been reclassified to conform to the current period presentation, principally reflecting the sale of Cold-EEZE<sup>&#174;</sup>&#160;Business as discontinued operations.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Discontinued Operations Carve Out and ProPhase Allocations</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">For the three and six months ended June 30, 2017 and 2016, results from operations for our Cold-EEZE<sup>&#174;</sup>&#160;Business are classified as discontinued operations The carve out of the discontinued operations (i) were prepared in accordance with the SEC&#8217;s carve out rules under Staff Accounting Bulletin (&#8220;SAB&#8221;) Topic 1B1 and (ii) are derived from identifying and carving out the specific assets, liabilities, net sales, cost of sales, operating expenses and interest expense associated with the Cold-EEZE<sup>&#174;&#160;</sup>Business&#8217;s operations. General administrative and overhead expenses, including personnel expenses and bonuses, and research and development overhead expenses incurred by us (for which the discontinued operation benefits from such resources) are allocated to discontinued operations based upon the percentage of the Cold-EEZE<sup>&#174;</sup>&#160;Business&#8217;s net sales to our consolidated net sales. For the three months ended June 30, 2017 and 2016, we allocated (i) zero and $319,000, respectively, of administrative expenses and (ii) zero and $48,000, respectively, of research and development expenses, to discontinued operations in the accompanying condensed statements of operations. For the six months ended June 30, 2017 and 2016, we allocated (i) $348,000 and $656,000, respectively, of administrative expenses and (ii) $52,000 and $95,000, respectively, of research and development expenses, to discontinued operations in the accompanying condensed statements of operations (see Note 4).</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 31.5pt">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Seasonality of the Business</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our net sales are derived principally from our OTC heath care and cold remedy products sold in the United States of America. Our sales are influenced by and subject to fluctuations in the timing of purchase and the ultimate level of demand for our products which are a function of the timing, length and severity of each cold season. Generally, a cold season is defined as the period of September to March when the incidence of the common cold rises as a consequence of the change in weather and other factors. We generally experience in the first, third and fourth quarter higher levels of net sales. Revenues are generally at their lowest levels in the second quarter when customer demand generally declines.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 31.5pt">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 31.5pt">For the three and six months ended June 30, 2017 and 2016, our net sales were principally related to domestic markets.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Use of Estimates</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The preparation of financial statements and the accompanying notes thereto, in conformity with GAAP, requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the respective reporting periods. Examples include the provision for bad debt, sales returns and allowances, inventory obsolescence, useful lives of property and equipment, impairment of property and equipment, income tax valuations and assumptions related to accrued advertising. When providing for the appropriate sales returns, allowances, cash discounts and cooperative incentive promotion costs (&#8220;Sales Allowances&#8221;), we apply a uniform and consistent method for making certain assumptions for estimating these provisions. These estimates and assumptions are based on historical experience, current trends and other factors that management believes to be relevant at the time the financial statements are prepared. Management reviews the accounting policies, assumptions, estimates and judgments on a quarterly basis. Actual results could differ from those estimates.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Cash and Cash Equivalents</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We consider all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. Cash equivalents include cash on hand and monies invested in money market funds. The carrying amount approximates the fair market value due to the short-term maturity of these investments.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Inventory Valuation</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Inventory is valued at the lower of cost, determined on a first-in, first-out basis (FIFO), or market. Inventory items are analyzed to determine cost and the market value and appropriate valuation adjustments are established. At June 30, 2017 and December 31, 2016, the financial statements include adjustments to reduce inventory for excess or obsolete inventory of $1.7 million and $1.6 million, respectively. The components of inventory are as follows (in thousands):</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">June 30, 2017</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">December 31, 2016</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 54%; text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Raw materials</font></td> <td style="width: 2%; line-height: 107%">&#160;</td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 20%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,590</font></td> <td style="width: 1%; line-height: 107%">&#160;</td> <td style="width: 1%; line-height: 107%">&#160;</td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 19%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,404</font></td> <td style="width: 1%; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Work in process</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">342</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">466</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Finished goods</font></td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">34</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">866</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,966</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,736</font></td> <td style="line-height: 107%">&#160;</td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Property, Plant and Equipment</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Property, plant and equipment are recorded at cost. We use the straight-line method in computing depreciation for financial reporting purposes. Depreciation expense is computed in accordance with the following ranges of estimated asset lives: building and improvements &#8211; ten to thirty-nine years; machinery and equipment &#8211; three to seven years; computer software &#8211; three years; and furniture and fixtures &#8211; five years.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Concentration of Risks</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Future revenues, costs, margins and profits will continue to be influenced by our ability to maintain our manufacturing availability and capacity together with our marketing and distribution capabilities and the regulatory requirements associated with the development of OTC and other personal care products in order to compete on a national level and/or international level.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our business is subject to federal and state laws and regulations adopted for the health and safety of users of our products. Our OTC health care products are subject to regulations by various federal, state and local agencies, including the Food and Drug Administration (&#8220;FDA&#8221;) and, as applicable, the Homeopathic Pharmacopoeia of the United States.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash investments and trade accounts receivable.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We maintain cash and cash equivalents with certain major financial institutions. As of June 30, 2017, our cash balance was $37.3 million and our bank balance was $38.5 million. Of the total bank balance, $342,000 was covered by federal depository insurance and $38.1 million was uninsured at June 30, 2017.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Trade accounts receivable potentially subject us to credit concentrations from time-to-time as a consequence of the timing, payment pattern and ultimate purchase volumes or shipping schedules with our customers. We extend credit to our customers based upon an evaluation of the customer&#8217;s financial condition and credit history and generally we do not require collateral. Our broad range of customers includes many large national chain, regional, specialty and local retail stores. These credit concentrations may impact our overall exposure to credit risk, either positively or negatively, in that our customers may be similarly affected by changes in economic, regulatory or other conditions that may impact the timing and collectability of amounts due to us. As a consequence of an evaluation of our customer&#8217;s financial condition, payment patterns, balance due to us and other factors, we did not offset our account receivable with an allowance for bad debt at June 30, 2017 and December 31, 2016.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Long-lived Assets</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We review our carrying value of our long-lived assets with definite lives whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. When indicators of impairment exist, we determine whether the estimated undiscounted sum of the future cash flows of such assets is less than their carrying amounts. If less, an impairment loss is recognized in the amount, if any, by which the carrying amount of such assets exceeds their respective fair values. The determination of fair value is based on quoted market prices in active markets, if available, or independent appraisals; sales price negotiations; or projected future cash flows discounted at a rate determined by management to be commensurate with our business risk. The estimation of fair value utilizing discounted forecasted cash flows includes significant judgments regarding assumptions of revenue, operating and marketing costs; selling and administrative expenses; interest rates; property and equipment additions and retirements; industry competition; and general economic and business conditions, among other factors.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Fair value is based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a three-tier fair value hierarchy prioritizes the inputs used to measure fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Fair Value of Financial Instruments</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Cash and cash equivalents, accounts receivable, assets held for sale, accounts payable, accrued expenses and notes payable are reflected in the Condensed Consolidated Financial Statements at carrying value which approximates fair value.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Revenue Recognition</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Sales are recognized at the time ownership is transferred to the customer. Revenue is reduced for trade promotions, estimated sales returns, cash discounts and other allowances in the same period as the related sales are recorded. We make estimates of potential future product returns and other allowances related to current period revenue. We analyze historical returns, current trends, and changes in customer and consumer demand when evaluating the adequacy of the sales returns and other allowances.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our return policy accommodates returns for (i) discontinued products, (ii) store closings and (iii) products that have reached or exceeded their designated expiration date. We do not impose a period of time within which product may be returned. All requests for product returns must be submitted to us for pre-approval. The main components of our returns policy are: (i) we will accept returns that are due to damaged product that is un-saleable and such return request activity falls within an acceptable range, (ii) we will accept returns for products that have reached or exceeded designated expiration dates and (iii) we will accept returns in the event that we discontinue a product provided that the customer will have the right to return only such items that it purchased directly from us. We will not accept return requests pertaining to customer inventory &#8220;Overstocking&#8221; or &#8220;Resets&#8221;. We will only accept return requests for product in its intended package configuration. We reserve the right to terminate shipment of product to customers who have made unauthorized deductions contrary to our return policy or pursue other methods of reimbursement. We compensate the customer for authorized returns by means of a credit applied to amounts owed or to be owed and in the case of discontinued product only, also by way of an exchange. We do not have any significant product exchange history.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Pursuant to the terms of the Asset Purchase Agreement, we are responsible for and continue to accept product returns of the Cold-EEZE<sup>&#174;&#160;</sup>Business for product shipped prior to March 30, 2017. Additionally, pursuant to the terms of the Asset Purchase Agreement, we allocated and, in June 2017, issued a credit to Mylan in an aggregate of $400,000 for future sales returns and allowances arising from certain product returns that were sold by us prior to March 30, 2017.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27pt">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As of June 30, 2017 and December 31, 2016, we included a provision for sales allowances of zero and $108,000, respectively. Additionally, accrued advertising and other allowances as of June 30, 2017 included (i) $934,000 for estimated future sales returns and (ii) $598,000 for cooperative incentive promotion costs. As of December 31, 2016, accrued advertising and other allowances included (i) $1.2 million for estimated future sales returns and (ii) $1.5 million for cooperative incentive promotion costs.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Advertising and Incentive Promotions</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Advertising and incentive promotion costs are expensed within the period in which they are utilized. Advertising and incentive promotion expense is comprised of (i) media advertising, presented as part of sales and marketing expense, (ii) cooperative incentive promotions and coupon program expenses, which are accounted for as part of net sales, and (iii) free product, which is accounted for as part of cost of sales. Advertising and incentive promotion expenses incurred (i) from continuing operations for the three months ended June 30, 2017 and 2016 were $21,000 and $139,000, respectively, and (ii) attributed to and classified as discontinued operations were $205,000 and $471,000, respectively. Advertising and incentive promotion expenses incurred (i) from continuing operations for the six months ended June 30, 2017 and 2016 were $53,000 and $339,000 , respectively, and (ii) attributed to and classified as discontinued operations were $2.8 million and $3.3 million, respectively. Included in prepaid expenses and other current assets was $17,000 and $263,000 at June 30, 2017 and December 31, 2016, respectively, relating to prepaid advertising and promotion expenses.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Shipping and Handling</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Product sales may carry shipping and handling charges to the purchaser, included as part of the invoiced price, which is classified as revenue. In all cases, costs related to this revenue are recorded in cost of sales.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Stock-Based Compensation</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We recognize all share-based payments to employees and directors, including grants of stock options, as compensation expense in the financial statements based on their fair values. Fair values of stock options are determined through the use of the Black-Scholes option pricing model. The compensation cost is recognized as an expense over the requisite service period of the award, which usually coincides with the vesting period.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Stock and stock options for the purchase of our common stock, $0.0005 par value (&#8220;Common Stock&#8221;), have been granted to both employees and non-employees pursuant to the terms of certain agreements and stock option plans (see Note 6). Stock options are exercisable during a period determined by us, but in no event later than ten years from the date granted. For the three and six months ended June 30, 2017 and 2016, we charged to operations $18,000 and $1,000, respectively, for share-based compensation expense for the aggregate fair value of stock grants issued and vested stock options earned.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Research and Development</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Research and development costs are charged to operations in the period incurred. Research and development costs incurred for the three months ended June 30, 2017 and 2016 (i) from continuing operations were $224,000 and $121,000, respectively, and (ii) attributed to and classified as discontinued operations of zero and $48,000, respectively. Research and development costs incurred for the six months ended June 30, 2017 and 2016 (i) from continuing operations were $258,000 and $160,000, respectively, and (ii) attributed to and classified as discontinued operations of $52,000 and $95,000, respectively. Research and development costs are principally related to personnel expenses and new product development initiatives and costs associated with our OTC health care products.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Income Taxes</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We utilize the asset and liability approach which requires the recognition of deferred tax assets and liabilities for the future tax consequences of events that have been recognized in our financial statements or tax returns. In estimating future tax consequences, we generally consider all expected future events other than enactments of changes in the tax law or rates. Until we have sufficient taxable income to offset the temporary timing differences attributable to operations and the tax deductions attributable to option, warrant and stock activities are assured, a full valuation allowance equaling the total deferred tax asset is being provided (see Notes 4 and 7).</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We utilize a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than fifty percent likely of being realized upon ultimate settlement. Any interest or penalties related to income taxes will be recorded as interest or administrative expense, respectively.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As a result of our continuing tax losses, we have recorded a full valuation allowance against a net deferred tax asset. Additionally, we have not recorded a liability for unrecognized tax benefits.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Recently Issued Accounting Standards</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In May 2014, the Financial Accounting Standards Board (&#8220;FASB&#8221;) issued Accounting Standards Update (&#8220;ASU&#8221;) No. 2014-09, &#8220;Revenue from Contracts with Customers&#8221;, on revenue recognition. The new standard provides for a single five-step model to be applied to all revenue contracts with customers as well as requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This ASU, as amended, is effective for fiscal years and interim periods within those years beginning after December 15, 2017. We are currently assessing the impact of this update, but preliminarily believe that its adoption will not have a material impact on our consolidated financial statements.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In February 2016, the FASB issued ASU No. 2016-02 &#8220;Leases&#8221;. The new standard will require most leases to be recognized on the balance sheet which will increase reported assets and liabilities. Lessor accounting remains substantially similar to current guidance. The new standard is effective for annual and interim periods in fiscal years beginning after December 15, 2018, which for us is the first quarter of fiscal 2019 and mandates a modified retrospective transition method. We do not intend to early adopt and are currently assessing the impact of this update, but preliminarily believe that its adoption will not have a material impact on our consolidated financial statements.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In June 2016, the FASB issued ASU No. 2016-13, &#8220;Financial Instruments&#8212;Credit Losses.&#8221; The standard modifies the impairment model for most financial assets, including trade accounts receivables and loans, and will require the use of an &#8220;expected loss&#8221; model for instruments measured at amortized cost. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The effective date of the standard is for fiscal years beginning after December 15, 2019 with early adoption permitted. We are currently evaluating the impact of adoption of this update on our consolidated financial statements.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In August 2016, the FASB issued ASU No. 2016-15, &#8220;Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments&#8221;<i>.</i>&#160;The new standard attempts to reduce diversity in practice in how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU No. 2016-15 provides guidance on eight specific cash flow issues. The new guidance will be effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted including adoption in an interim period. We do not intend to early adopt and we are currently assessing the impact of adoption of this update will have on our consolidated financial statements.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In October 2016, the FASB issued ASU No. 2016-16, &#8220;Income Taxes: Intra-Entity Transfers of Assets Other than Inventory&#8221;. The new standard requires entities should recognize the income tax consequences of an asset other than inventory when the asset transfer occurs. The new guidance will be effective for fiscal years beginning after December 15, 2017 and requires a modified retrospective adoption through a cumulative effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are currently evaluating the impact of adoption of this update on our consolidated financial statements.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b>Note 4 &#8211; Discontinued Operations, Sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">At the Special Meeting held on March 29, 2017, our stockholders approved the sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business and the transactions contemplated by the Asset Purchase Agreement. Effective March 29, 2017, we completed the sale of the Cold-EEZE<sup>&#174;&#160;</sup>Business to Mylan.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As a consequence of the sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business, for the three and six months ended June 30, 2017 and 2016, we have classified as discontinued operations (i) the gain from the sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business, (ii) all gains and losses attributable to the Cold-EEZE<sup>&#174;</sup>&#160;Business operations and (iii) the income tax expense attributed to the sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business (see Note 7). Excluded from the sale of the Cold-EEZE<sup>&#174;&#160;</sup>Business were our accounts receivable and inventory, and we also retained all liabilities associated with our Cold-EEZE<sup>&#174;&#160;</sup>Business operations arising prior to March 29, 2017.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Pursuant to the Asset Purchase Agreement, we also agreed to a one-time sale to Mylan of certain non-lozenge-based Cold-EEZE<sup>&#174;</sup>&#160;inventory. At June 30, 2017, we classified as assets held for sale approximately $294,000 of such inventory, which approximates our cost. At December 31, 2016, the balance sheet impact of discontinued operations was deemed not material, as such, no reclassifications for discontinued operations have been presented.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Pursuant to the Asset Purchase Agreement, we entered into a 90 day transition service arrangement with Mylan, for which we earned $150,000 in transition service fees through June 30, 2017. Pursuant to this arrangement, we (i) received, processed, fulfilled, and shipped customer orders, and billed such customers for these shipments on behalf of Mylan from March 30, 2017 to June 30, 2017, (ii) processed certain sales allowances, returns and other customer promotional deductions, and (iii) paid certain Cold-EEZE<sup>&#174;</sup>&#160;Business expenses which are to be reimbursed by Mylan. At June 30, 2017, we have a balance due to Mylan of $717,000 which is comprised of (i) net billings to Mylan&#8217;s customers for product shipments, less sales and other allowances, of $1.8 million (ii) return allocation of $400,000 for future sales returns and allowances (see Note 3), offset by (ii1) $1.4 million for product shipments and transition service fee due from Mylan and (iv) $106,000 for the reimbursement of certain Cold-EEZE<sup>&#174;</sup>&#160;Business expenses we paid on behalf of Mylan. For the three and six months ended June 30, 2017, the $150,000 transition service fees earned are recorded as a component of other income (expense).</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The net proceeds received from the sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business were as follows (in thousands):</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Amount</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">(as restated)</p></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 80%; padding-left: 1.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Gross consideration from the sale of the Cold-EEZE<sup>&#174;&#160;</sup>Business</font></td> <td style="width: 2%; line-height: 107%">&#160;</td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 16%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">50,000</font></td> <td style="width: 1%; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 1.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Closing and transaction costs</font></td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(4,175</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 10pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net proceeds from sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">45,825</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 1.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Book value of assets sold</font></td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(13</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 20pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Gain on sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business before income taxes</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">45,812</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 1.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Income tax expense</font></td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(3,128</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 20pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Gain on sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business after income taxes</font></td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">42,684</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 1.5pt; line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 1.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net proceeds:</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 20pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Cash paid at closing, net of closing and transaction costs</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">43,145</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 20pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Proceeds due on sale of assets, cash held in escrow</font></td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">5,000</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 1.5pt; line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">48,145</font></td> <td style="line-height: 107%">&#160;</td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">For the three and six months ended June 30, 2017, we incurred $10,000 and $4.2 million in closing and transaction costs associated with the sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business which were comprised of (i) transaction fees and related closing costs of $1.9 million and (ii) performance bonuses, contract termination compensation and severance payments to certain employees associated with the sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business of $2.3 million. The compensation committee of our board of directors approved these compensation arrangements. These compensation and termination payments were paid by us in April 2017.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The following table sets forth the condensed operating results of our discontinued operations for the three and six months ended June 30, 2017 and 2016, respectively, (in thousands):</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.75in"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td colspan="6" style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Three Months Ended June 30,</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td colspan="6" style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Six Months Ended June 30,</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2017</font></td> <td style="padding-left: 3pt">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2016</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2017</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2016</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 45%; padding-left: 2pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net sales</font></td> <td style="width: 1%; padding-left: 3pt; line-height: 107%">&#160;</td> <td style="width: 1%; padding-left: 3pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(371</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="width: 1%; padding-left: 3pt; line-height: 107%">&#160;</td> <td style="width: 1%; padding-left: 3pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 12%; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,826</font></td> <td style="width: 1%; padding-left: 3pt; line-height: 107%">&#160;</td> <td style="width: 1%; padding-left: 3pt; line-height: 107%">&#160;</td> <td style="width: 1%; padding-left: 3pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 10%; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,687</font></td> <td style="width: 1%; padding-left: 3pt; line-height: 107%">&#160;</td> <td style="width: 1%; padding-left: 3pt; line-height: 107%">&#160;</td> <td style="width: 1%; padding-left: 3pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 10%; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">6,179</font></td> <td style="width: 1%; padding-left: 3pt; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 2pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Cost of sales</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">264</font></td> <td style="padding-left: 3pt">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">728</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,037</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,427</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 2pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Sales and marketing</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">200</font></td> <td style="padding-left: 3pt">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">533</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,720</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,833</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 2pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Administration</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="padding-left: 3pt">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">319</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">348</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">656</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 2pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Research and development</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="padding-bottom: 1.5pt; padding-left: 3pt">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">48</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">52</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">95</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 2pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Income (loss) from discontinued operations</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(835</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">198</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">530</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">168</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td></tr> </table> <p style="margin: 0pt"></p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 5 &#8211; Secured Promissory Notes and Other Obligations</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Secured Promissory Notes</u></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">On December 11, 2015, we executed two Subscription Agreements (the &#8220;Subscription Agreements&#8221;) with the investors named therein (the &#8220;Investors&#8221;) providing for the purchase of 12% Secured Promissory Notes &#8211; Series A (&#8220;Notes&#8221;) in the aggregate principal amount of up to $3.0 million and warrants to purchase shares of our Common Stock (the &#8220;Warrants&#8221;).</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Notes in the amount of $1.5 million and 51,000 Warrants, at an exercise price of $1.35 per share, which was equal to the closing price of our Common Stock on the date of investment, were issued by the Company and its wholly-owned subsidiaries, PMI and Quigley Pharma, Inc. (collectively, the &#8220;Obligors&#8221;), and funded on December 11, 2015. We incurred loan origination costs of $22,000 which were recorded as a reduction of the Notes and the origination costs are charged to other income (expense) over the term of the loan. The Warrants had an exercise term equal to three years and were exercisable commencing on the date of issuance. The fair value of the Warrants at the date of grant was $14,000 which is recorded as a reduction of the Notes and is charged to other income (expense) over the term of the loan.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Notes bore interest at the rate of 12% per annum, payable semi-annually and the principal is due and payable on June 15, 2017. The Notes could be pre-paid at any time prior to maturity without penalty. The effective interest, inclusive of the Warrant and loan origination costs, was 14.3% per annum. For the six months ended June 30, 2017 and 2016, we charged to other income (expense) $54,000 and $105,000, respectively, in connection with the Notes.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On March 29, 2017, in connection with the sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business, we paid in full the remaining principal and accrued interest, in the total amount of $1,553,000, due under the Notes. Of the $1,553,000 paid to the Investors, $69,000 was netted against the aggregate exercise price of the Warrants, which were simultaneously being exercised by the Investors.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In connection with the issuance of the Notes, the Company entered into a security agreement with John E. Ligums, Jr., as collateral agent for the Investors (the &#8220;Security Agreement&#8221;) to secure the timely payment and performance in full of the Company&#8217;s obligations under the Notes. Under the Security Agreement, we granted to the collateral agent, for the benefit of the Investors a lien upon and security interest in the property and assets listed as collateral in the Security Agreement, including without limitation, all of our personal property, inventory, equipment, general intangibles, cash and cash equivalents, and proceeds. In connection with the payoff of the Notes, the Security Agreement was terminated.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 6 &#8211; Transactions Affecting Stockholders&#8217; Equity</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our authorized capital stock consists of 50 million shares of Common Stock and 1 million shares of preferred stock, $.0005 par value (&#8220;Preferred Stock&#8221;).</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Preferred Stock</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On June 16, 2015, our stockholders approved the change to our state of incorporation from the State of Nevada to the State of Delaware pursuant to a plan of conversion (the &#8220;Conversion Plan&#8221;) and the filing of a certificate of incorporation in the State of Delaware. The Preferred Stock authorized under our certificate of incorporation may be issued from time to time in one or more series. As of June 30, 2017, no shares of Preferred Stock have been issued. Our board of directors has the full authority permitted by law to establish, without further stockholder approval, one or more series of Preferred Stock and the number of shares constituting each such series and to fix by resolution, voting powers, preferences and relative, participating, optional and other special rights of each series of Preferred Stock, and the qualifications, limitations or restrictions thereof, if any. Subject to the limitation on the total number of shares of Preferred Stock that we have authority to issue under our certificate of incorporation, the board of directors is also authorized to increase or decrease the number of shares of any series, subsequent to the issue of that series, but not below the number of shares of such series then-outstanding. In case the number of shares of any series is so decreased, the shares constituting such decrease will resume the status that they had prior to the adoption of the resolution originally fixing the number of shares of such series. We may amend from time to time our certificate of incorporation and bylaws to increase the number of authorized shares of Preferred Stock or Common Stock or to make other changes or additions to our capital structure or the terms of our capital stock.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><i>&#160;</i></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Stockholder Rights Plan</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On September 8, 1998, our Board of Directors declared a dividend distribution of Common Stock Purchase Rights (each individually, a &#8220;Right&#8221; and collectively, the &#8220;Rights&#8221;) payable to our stockholders of record on September 25, 1998, thereby creating a Stockholder Rights Plan (the &#8220;Rights Agreement&#8221;). The Plan was subsequently amended effective each of (i) May 23, 2008, (ii) August 18, 2009, (iii) June 18, 2014 and (iv) January 6, 2017. The Rights Agreement, as amended and restated, provides that each Right entitles the stockholder of record to purchase from the Company that number of shares of Common Stock having a combined market value equal to two times the Rights exercise price of $45. The Rights are not exercisable until the distribution date, which will be the earlier of a public announcement that a person or group of affiliated or associated persons has acquired 15% or more of the outstanding shares of Common Stock, or the announcement of an intention by a similarly constituted party to make a tender or exchange offer resulting in the ownership of 15% or more of the outstanding shares of Common Stock (such person, the &#8220;acquirer&#8221;). The Rights Agreement allows for an exemption for Ted Karkus, the Company&#8217;s Chairman and Chief Executive Officer, to acquire up to 20% of our Common Stock without our Board of Directors declaring a dividend distribution.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The dividend has the effect of diluting the acquirer by giving our other stockholders a 50% discount on our Common Stock&#8217;s current market value for exercising the Rights. In the event of a cashless exercise of the Right and the acquirer has acquired less than 50% beneficial ownership of the Company, a stockholder may exchange one Right for one share of Common Stock of the Company. The Rights Agreement, as amended, includes a provision pursuant to which our Board of Directors may exempt from the provisions of the Rights Agreement an offer for all outstanding shares of our Common Stock that the directors determine to be fair and not inadequate and to otherwise be in the best interests of the Company and its stockholders, after receiving advice from one or more investment banking firms. The expiration date of the Rights Agreement, as amended, is June 18, 2024.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Equity Line of Credit</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>&#160;</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On July 30, 2015, we entered into a new equity line of credit agreement (such arrangement, the &#8220;2015 Equity Line&#8221;) with Dutchess Opportunity Fund II, LP (&#8220;Dutchess&#8221;). Pursuant to the 2015 Equity Line, Dutchess committed to purchase, subject to certain restrictions and conditions, up to 3,200,000 shares of our Common Stock, over a period of 36 months from the effectiveness of the registration statement registering the resale of shares purchased by Dutchess pursuant to the Investment Agreement.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We may, at our discretion, draw on the 2015 Equity Line from time to time, as and when we determine appropriate in accordance with the terms and conditions of the 2015 Equity Line. The maximum number of shares that we are entitled to put to Dutchess in any one draw down notice shall not exceed 500,000 shares with a purchase price calculated in accordance with the terms of the 2015 Equity Line. We may deliver a notice for a subsequent put from time to time, following the one day pricing period for the prior put.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The purchase price shall be set at ninety-five percent (95%) of the volume weighted average price (VWAP) of the Common Stock during the one trading day immediately following our put notice. We have the right to withdraw all or any portion of any put, except that portion of the put that has already been sold to a third party, including any portion of a put that is below the minimum acceptable price set forth on the put notice, before the closing. In the event Dutchess receives more than a five percent (5%) return on the net sales for a specific put, Dutchess must remit such excess proceeds to us; however, in the event Dutchess receives less than a five percent (5%) return on the net sales for a specific put, Dutchess will have the right to deduct from the proceeds of the put amount on the applicable closing date so Dutchess&#8217;s return will equal five percent (5%).</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">There are put restrictions applied on days between the draw down notice date and the closing date with respect to that particular put. During such time, we are entitled to deliver another draw down notice. In addition, Dutchess will not be obligated to purchase shares if Dutchess&#8217; total number of shares beneficially held at that time would exceed 4.99% of the number of shares of Common Stock as determined in accordance with Rule 13d-1(j) of the Securities Exchange Act of 1934, as amended. In addition, we are not permitted to draw on the facility unless there is an effective registration statement to cover the resale of the shares.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Pursuant to the terms of the 2015 Equity Line, we are obligated to file one or more registration statements with the SEC to register the resale by Dutchess of the shares of Common Stock issued or issuable under the 2015 Equity Line. In addition, we are obligated to use all commercially reasonable efforts to have the registration statement declared effective by the SEC within 90 days after the registration statement is filed. On August 4, 2015, we filed a registration statement for the underlying shares of the 2015 Equity Line with the SEC and the registration statement was declared effective by the SEC on August 21, 2015.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">At June 30, 2017, we have 2,450,000 shares of our Common Stock available for sale, at our discretion, under the terms of our 2015 Equity Line and covered pursuant to an effective registration statement.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>&#160;</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>The 2010 Equity Compensation Plan</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>&#160;</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On May 5, 2010, our stockholders approved the 2010 Equity Compensation Plan which was subsequently amended, restated and approved by our stockholders on April 24, 2011, and further amended and approved by stockholders on May 6, 2013, and further amended and approved by stockholders on May 24, 2016 (the &#8220;2010 Plan&#8221;). The 2010 Plan provides that the total number of shares of Common Stock that may be issued under the 2010 Plan is equal to 3.2 million shares, including 900,000 shares that are authorized for issuance but unissued under a 1997 incentive stock option plan and 700,000 shares added to the 2010 Plan effective May 24, 2016.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">For the six month ended June 30, 2017 and 2016, we granted, 600,000 options, exercisable at $2.00 per share and subject to vesting over a four year term, and zero options, respectively, to employees to acquire our Common Stock pursuant to the terms of 2010 Plan. The assumptions used in determining the fair value of the 600,000 stock options granted in Fiscal 2017 were (i) expected option life of 4.5 years, (ii) weighted average risk rate of 1.81%, (iii) dividend yield of 0% and (iv) expected volatility of 44.51%.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">For the six months ended June 30, 2017, 90,000 stock options were exercised pursuant to the 2010 Plan and we derived net proceeds of $102,000. For the six months ended June 30, 2016, there were no stock options exercised. At June 30, 2017, there were 2,209,000 options outstanding under the 2010 Plan and 133,659 options available to be issued pursuant to the terms of the 2010 Plan.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>The 2010 Directors&#8217; Equity Compensation Plan</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b><i>&#160;</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On May 5, 2010, our stockholders approved the 2010 Directors&#8217; Equity Compensation Plan, which was subsequently amended and approved by stockholders on May 6, 2013. A primary purpose of the 2010 Directors&#8217; Equity Compensation Plan is to provide us with the ability to pay all or a portion of the fees of directors in restricted stock instead of cash. The 2010 Directors&#8217; Equity Compensation Plan provides that the total number of shares of Common Stock that may be issued under the 2010 Directors&#8217; Equity Compensation Plan is equal to 425,000. For the six months ended June 30, 2017 and 2016, no shares were granted to our directors. At June 30, 2017, there were 147,808 shares of Common Stock that may be issued pursuant to the terms of the 2010 Directors&#8217; Equity Compensation Plan.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Treasury Stock Purchase Agreement</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b><i>&#160;</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On June 12, 2017 we entered into a Stock Purchase Agreement with each of Mark S. Leventhal, a former director of the Company, and certain other persons and entities associated and/or affiliated with Mr. Leventhal (the &#8220;Leventhal Holders&#8221;), pursuant to which we purchased all 1,061,980 shares of our Common Stock then held by the Leventhal Holders, representing an approximate 6.2% aggregate ownership interest (based on 17,221,776 shares of common stock outstanding as of June 12, 2017). Upon consummation of the transactions, the Leventhal Holders ceased to hold any direct or indirect ownership interest in the Company.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Pursuant to the terms of the Stock Purchase Agreements, the total consideration paid by us to the Leventhal Holders for their shares was $1,858,465, which amount was equal to the product of (i) $1.75 multiplied by (ii) the number of shares purchased.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 7 &#8211; Income Taxes</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 31.5pt">At December 31, 2016, there were $47.1&#160;million in net operating loss carryforwards, subject to applicable limitations, available to us for federal purposes which will expire beginning for the year ended December 31, 2020 through 2036. Additionally, there were $22.1&#160;million in net operating loss carryforwards, subject to limitations, available to us for state purposes which will expire beginning for the year ended December 31, 2020 through 2036.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 31.5pt">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We believe that a significant portion of our income tax liability arising from our taxable gain for federal and state income tax purposes from the sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business will be offset to the extent of our current year losses from operations, the write-off for tax purposes of the tax-basis of the Cold-EEZE<sup>&#174;&#160;</sup>Business and the available net operating loss carryforwards at the federal and state levels. However, for state income tax purposes, based upon the available state net operating loss carryforwards and corresponding limitations, we estimate a net income tax expense arising from the sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business of $2.1 million.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Utilization of net operating loss carryforwards may be subject to limitations as set forth in Section 382 of the Internal Revenue Code (&#8220;Section 382&#8221;). Based on our preliminary Section 382 analysis, we do not believe that our current net operating loss carryforwards are subject to these limitations as of June 30, 2017. However, until we complete a final Section 382 analysis upon filing of our 2017 income tax return, there can be no assurances that our preliminary analysis is accurate or complete. Should we identify any limitations upon the completion of our final Section 382 analysis, the impact could be material to our consolidated financial statements and that we could incur additional income tax expense arising from the sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 31.5pt">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 31.5pt">For the six months ended June 30, 2017, we charged to discontinued operations $3.1 million for estimated federal and state income taxes arising from the sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business and we have realized an income tax benefit from continuing operations of $1.0 million as a consequence of the utilization of the federal and state net operating losses.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 31.5pt">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Subsequent to the income tax effects arising from the sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business, we will continue to have net operating loss carry-forwards for federal income tax purposes. Until sufficient taxable income to offset the temporary timing differences attributable to operations, and the tax deductions attributable to option, warrant and stock activities are assured, a valuation allowance equaling the total deferred tax asset is being provided. As a consequence of the accumulated losses of the Company, we believe that this allowance is required due to the uncertainty of realizing these tax benefits in the future.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 9 &#8211; Earnings (Loss) Per Share</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Basic earnings (loss) per share for continuing and discontinued operations are computed by dividing respective net income or loss attributable to common stockholders by the weighted-average number of shares of our Common Stock outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue Common Stock were exercised or converted into Common Stock or resulted in the issuance of Common Stock that shared in the earnings of the entity. Diluted earnings (loss) per share also utilize the treasury stock method which prescribes a theoretical buy-back of shares from the theoretical proceeds of all options and warrants outstanding during the period. Options and warrants outstanding to acquire shares of our Common Stock at June 30, 2017 and 2016 were 2,209,000 and 1,706,500, respectively.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">For the three months ended June 30, 2017 and June 30, 2016 dilutive earnings (loss) per share is the same as basic earnings per share due to (i) the inclusion of Common Stock, in the form of stock options and warrants (&#8220;Common Stock Equivalents&#8221;), would have an anti-dilutive effect on the loss per share or (ii) there were no Common Stock Equivalents for the respective period. For the three months ended June 30, 2017 and 2016 there were 641,754 and 276,165, Common Stock Equivalents which were in the money, that were excluded from the earnings (loss) per share computation as a consequence of their anti-dilutive effect.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">For the six months ended June 30, 2017 there were 650,190 Common Stock Equivalents which were in the money, that were included in the fully diluted earnings per share computation. For the six months ended June 30, 2016, for continuing operations dilutive earnings (loss) per share is the same as basic earnings per share due to (i) the inclusion of Common Stock, in the form of stock options and warrants (&#8220;Common Stock Equivalents&#8221;), would have an anti-dilutive effect on the loss per share or (ii) there were no Common Stock Equivalents for the respective period. For the six months ended June 30, 2016, there were 244,112, Common Stock Equivalents which were in the money, that were excluded from the earnings (loss) per share computation as a consequence of their anti-dilutive effect.</p> 1900000 4200000 10000 2209000 1706500 48145000 294000 294000 90000 102000 102000 -1061980 18000 18000 37300000 38500000 342000 38100000 150000 150000 150000 1400000 106000 717000 1800000 0.15 0.20 0.50 0.50 0.062 2024-06-18 3200000 500000 The purchase price shall be set at ninety-five percent (95%) of the volume weighted average price (VWAP) of the Common Stock during the one trading day immediately following our put notice. We have the right to withdraw all or any portion of any put, except that portion of the put that has already been sold to a third party, including any portion of a put that is below the minimum acceptable price set forth on the put notice, before the closing. In the event Dutchess receives more than a five percent (5%) return on the net sales for a specific put, Dutchess must remit such excess proceeds to us; however, in the event Dutchess receives less than a five percent (5%) return on the net sales for a specific put, Dutchess will have the right to deduct from the proceeds of the put amount on the applicable closing date so Dutchess’s return will equal five percent (5%). 0.0499 2450000 3200000 700000 900000 600000 600000 600000 2.00 P4Y P4Y6M 0.0181 0.00 0.4451 90000 425000 1061980 1858465 1.75 If, on the 18th month anniversary of the closing date, there are funds remaining in the escrow account, then the escrow account will be reduced by the difference, if a positive number, of (i) $2.5 million minus (ii) the aggregate amount of all escrow claims asserted by Mylan prior to this date that have either been paid out of the escrow account or are pending as of such date, and, within two business days of such date, the Escrow Agent will disburse such difference, if a positive number, to us. Within two business days of the second anniversary of the closing date, the Escrow Agent will release any funds remaining in the escrow account to us minus any amounts being reserved for escrow claims asserted by Mylan prior to such date. Upon the resolution of any pending escrow claims, the Escrow Agent will, within two business days of receipt of joint instructions or a final order from a court (as described in the Escrow Agreement) disburse such reserved amount to the parties entitled to such funds. 338000 675000 1013000 <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Note 8&#8211; Commitments and Contingencies</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>&#160;</i></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Escrow Receivable</u></i></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We have indemnification obligations to Mylan under the Asset Purchase Agreement that may require us to make future payments to Mylan and other related persons for any damages incurred by Mylan or such related persons as a result of any breaches of our representations, warranties, covenants or agreements contained in the Asset Purchase Agreement, or arising from the Retained Liabilities (as such term is defined in the Asset Purchase Agreement) or certain third party claims specified in the Asset Purchase Agreement. Generally, our representations and warranties survive for a period of 24 months from the closing date, other than certain fundamental representations which survive until the expiration of the applicable statute of limitations. There is a limited indemnification cap with respect to a majority of the Company&#8217;s indemnification obligations under the Asset Purchase Agreement with the exception of claims for actual fraud, the breach of any fundamental representations and certain other items, which have a larger indemnification cap (e.g., the purchase price).</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Pursuant to the terms of the Asset Purchase Agreement, we, Mylan, and an escrow agent entered into an Escrow Agreement at closing, pursuant to which Mylan deposited $5 million of the aggregate purchase price for the Cold-EEZE<sup>&#174;</sup>Business into an escrow account established with the Escrow Agent in order to satisfy, in whole or in part, certain of our indemnity obligations under the Asset Purchase Agreement. If, on the 18<sup>th&#160;</sup>month anniversary of the closing date, there are funds remaining in the escrow account, then the escrow account will be reduced by the difference, if a positive number, of (i) $2.5 million minus (ii) the aggregate amount of all escrow claims asserted by Mylan prior to this date that have either been paid out of the escrow account or are pending as of such date, and, within two business days of such date, the Escrow Agent will disburse such difference, if a positive number, to us. Within two business days of the second anniversary of the closing date, the Escrow Agent will release any funds remaining in the escrow account to us minus any amounts being reserved for escrow claims asserted by Mylan prior to such date. Upon the resolution of any pending escrow claims, the Escrow Agent will, within two business days of receipt of joint instructions or a final order from a court (as described in the Escrow Agreement) disburse such reserved amount to the parties entitled to such funds.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Management does not believe that we will be subject to indemnity claims contemplated by the Asset Purchase Agreement. However, in the event that such a claim is made, and if successful, we would be required to pay Mylan pursuant to the indemnification provisions of the Asset Purchase Agreement which may reduce the amount we ultimately collect from escrow or could even require us to return a portion of the net proceeds received from the sale of the Cold-EEZE<sup>&#174;</sup>&#160;Division.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Manufacturing Agreement</u></i></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><i>&#160;</i></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In connection with the Asset Purchase Agreement, the Company and its wholly-owned subsidiary, PMI, entered into a Manufacturing Agreement (the &#8220;Manufacturing Agreement&#8221;) with Mylan. Pursuant to the terms of the Manufacturing Agreement, Mylan (or an affiliate or designee) will purchase the inventory of the Company&#8217;s Cold-EEZE<sup>&#174;</sup>&#160;brand and product line and PMI will manufacture certain products for Mylan, as described in the Manufacturing Agreement, at prices that reflect current market conditions for such products and include an agreed upon mark-up on our costs. Unless terminated sooner by the parties, the Manufacturing Agreement will remain in effect until March 29, 2022. Thereafter, the Manufacturing Agreement may be renewed by Mylan for up to five successive one year periods by providing notice of its intent to renew not less than 90 days prior to the expiration of the then-current term.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Transition Services Agreement</u></i></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In connection with the Asset Purchase Agreement, we entered into a transition services agreement with Mylan to provide litigation support, insurance coverage, supply chain, customer support, finance, accounting, commercial advertising and packaging services, quality control, IT and research and development services to Mylan for time periods ranging from two to nine months from the closing date. We will continue to incur certain operating costs during the transition period to support Mylan.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Future Obligations:</u></i></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><i>&#160;</i></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We have estimated future minimum obligations over the next five years, including the remainder of Fiscal 2017, as follows (in thousands):</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Fiscal year</font></td> <td style="line-height: 107%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Employment&#160;</font><br /> <font style="font: 10pt Times New Roman, Times, Serif">Contracts</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 66%; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2017</font></td> <td style="width: 2%; line-height: 107%">&#160;</td> <td style="width: 1%; line-height: 107%">&#160;</td> <td style="width: 30%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">338</font></td> <td style="width: 1%; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2018</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">675</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2019</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2020</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2021</font></td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,013</font></td> <td style="line-height: 107%">&#160;</td></tr> </table> <p style="margin: 0pt"></p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Basis of Presentation</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.6in">The unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial statements and within the rules of the Securities and Exchange Commission (&#8220;SEC&#8221;) applicable to interim financial statements and therefore do not include all disclosures that might normally be required for financial statements prepared in accordance with accounting principles generally accepted in the United States of America (&#8220;GAAP&#8221;). The accompanying unaudited condensed consolidated financial statements have been prepared by management without audit and should be read in conjunction with our consolidated financial statements, including the notes thereto, appearing in our Annual Report on Form 10-K for the year ended December 31, 2016. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial position, consolidated results of operations and consolidated cash flows, for the periods indicated, have been made. The results of operations for the three and six months ended June 30, 2017 are not necessarily indicative of operating results that may be achieved over the course of the full year. Historical financial statements have been reclassified to conform to the current period presentation, principally reflecting the sale of Cold-EEZE<sup>&#174;</sup>&#160;Business as discontinued operations.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Discontinued Operations Carve Out and ProPhase Allocations</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">For the three and six months ended June 30, 2017 and 2016, results from operations for our Cold-EEZE<sup>&#174;</sup>&#160;Business are classified as discontinued operations The carve out of the discontinued operations (i) were prepared in accordance with the SEC&#8217;s carve out rules under Staff Accounting Bulletin (&#8220;SAB&#8221;) Topic 1B1 and (ii) are derived from identifying and carving out the specific assets, liabilities, net sales, cost of sales, operating expenses and interest expense associated with the Cold-EEZE<sup>&#174;&#160;</sup>Business&#8217;s operations. General administrative and overhead expenses, including personnel expenses and bonuses, and research and development overhead expenses incurred by us (for which the discontinued operation benefits from such resources) are allocated to discontinued operations based upon the percentage of the Cold-EEZE<sup>&#174;</sup>&#160;Business&#8217;s net sales to our consolidated net sales. For the three months ended June 30, 2017 and 2016, we allocated (i) zero and $319,000, respectively, of administrative expenses and (ii) zero and $48,000, respectively, of research and development expenses, to discontinued operations in the accompanying condensed statements of operations. For the six months ended June 30, 2017 and 2016, we allocated (i) $348,000 and $656,000, respectively, of administrative expenses and (ii) $52,000 and $95,000, respectively, of research and development expenses, to discontinued operations in the accompanying condensed statements of operations (see Note 4).</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Seasonality of the Business</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our net sales are derived principally from our OTC heath care and cold remedy products sold in the United States of America. Our sales are influenced by and subject to fluctuations in the timing of purchase and the ultimate level of demand for our products which are a function of the timing, length and severity of each cold season. Generally, a cold season is defined as the period of September to March when the incidence of the common cold rises as a consequence of the change in weather and other factors. We generally experience in the first, third and fourth quarter higher levels of net sales. Revenues are generally at their lowest levels in the second quarter when customer demand generally declines.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 31.5pt">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 31.5pt">For the three and six months ended June 30, 2017 and 2016, our net sales were principally related to domestic markets.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Use of Estimates</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The preparation of financial statements and the accompanying notes thereto, in conformity with GAAP, requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the respective reporting periods. Examples include the provision for bad debt, sales returns and allowances, inventory obsolescence, useful lives of property and equipment, impairment of property and equipment, income tax valuations and assumptions related to accrued advertising. When providing for the appropriate sales returns, allowances, cash discounts and cooperative incentive promotion costs (&#8220;Sales Allowances&#8221;), we apply a uniform and consistent method for making certain assumptions for estimating these provisions. These estimates and assumptions are based on historical experience, current trends and other factors that management believes to be relevant at the time the financial statements are prepared. Management reviews the accounting policies, assumptions, estimates and judgments on a quarterly basis. Actual results could differ from those estimates.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Cash and Cash Equivalents</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We consider all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. Cash equivalents include cash on hand and monies invested in money market funds. The carrying amount approximates the fair market value due to the short-term maturity of these investments.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Inventory Valuation</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Inventory is valued at the lower of cost, determined on a first-in, first-out basis (FIFO), or market. Inventory items are analyzed to determine cost and the market value and appropriate valuation adjustments are established. At June 30, 2017 and December 31, 2016, the financial statements include adjustments to reduce inventory for excess or obsolete inventory of $1.7 million and $1.6 million, respectively. The components of inventory are as follows (in thousands):</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">June 30, 2017</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">December 31, 2016</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 54%; text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Raw materials</font></td> <td style="width: 2%; line-height: 107%">&#160;</td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 20%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,590</font></td> <td style="width: 1%; line-height: 107%">&#160;</td> <td style="width: 1%; line-height: 107%">&#160;</td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 19%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,404</font></td> <td style="width: 1%; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Work in process</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">342</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">466</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="text-align: justify; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Finished goods</font></td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">34</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">866</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,966</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,736</font></td> <td style="line-height: 107%">&#160;</td></tr> </table> <p style="margin: 0pt"></p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Property, Plant and Equipment</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Property, plant and equipment are recorded at cost. We use the straight-line method in computing depreciation for financial reporting purposes. Depreciation expense is computed in accordance with the following ranges of estimated asset lives: building and improvements &#8211; ten to thirty-nine years; machinery and equipment &#8211; three to seven years; computer software &#8211; three years; and furniture and fixtures &#8211; five years.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Concentration of Risks</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Future revenues, costs, margins and profits will continue to be influenced by our ability to maintain our manufacturing availability and capacity together with our marketing and distribution capabilities and the regulatory requirements associated with the development of OTC and other personal care products in order to compete on a national level and/or international level.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our business is subject to federal and state laws and regulations adopted for the health and safety of users of our products. Our OTC health care products are subject to regulations by various federal, state and local agencies, including the Food and Drug Administration (&#8220;FDA&#8221;) and, as applicable, the Homeopathic Pharmacopoeia of the United States.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash investments and trade accounts receivable.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We maintain cash and cash equivalents with certain major financial institutions. As of June 30, 2017, our cash balance was $37.3 million and our bank balance was $38.5 million. Of the total bank balance, $342,000 was covered by federal depository insurance and $38.1 million was uninsured at June 30, 2017.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Trade accounts receivable potentially subject us to credit concentrations from time-to-time as a consequence of the timing, payment pattern and ultimate purchase volumes or shipping schedules with our customers. We extend credit to our customers based upon an evaluation of the customer&#8217;s financial condition and credit history and generally we do not require collateral. Our broad range of customers includes many large national chain, regional, specialty and local retail stores. These credit concentrations may impact our overall exposure to credit risk, either positively or negatively, in that our customers may be similarly affected by changes in economic, regulatory or other conditions that may impact the timing and collectability of amounts due to us. As a consequence of an evaluation of our customer&#8217;s financial condition, payment patterns, balance due to us and other factors, we did not offset our account receivable with an allowance for bad debt at June 30, 2017 and December 31, 2016.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Long-lived Assets</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We review our carrying value of our long-lived assets with definite lives whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. When indicators of impairment exist, we determine whether the estimated undiscounted sum of the future cash flows of such assets is less than their carrying amounts. If less, an impairment loss is recognized in the amount, if any, by which the carrying amount of such assets exceeds their respective fair values. The determination of fair value is based on quoted market prices in active markets, if available, or independent appraisals; sales price negotiations; or projected future cash flows discounted at a rate determined by management to be commensurate with our business risk. The estimation of fair value utilizing discounted forecasted cash flows includes significant judgments regarding assumptions of revenue, operating and marketing costs; selling and administrative expenses; interest rates; property and equipment additions and retirements; industry competition; and general economic and business conditions, among other factors.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Fair value is based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a three-tier fair value hierarchy prioritizes the inputs used to measure fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Fair Value of Financial Instruments</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Cash and cash equivalents, accounts receivable, assets held for sale, accounts payable, accrued expenses and notes payable are reflected in the Condensed Consolidated Financial Statements at carrying value which approximates fair value.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Revenue Recognition</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Sales are recognized at the time ownership is transferred to the customer. Revenue is reduced for trade promotions, estimated sales returns, cash discounts and other allowances in the same period as the related sales are recorded. We make estimates of potential future product returns and other allowances related to current period revenue. We analyze historical returns, current trends, and changes in customer and consumer demand when evaluating the adequacy of the sales returns and other allowances.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our return policy accommodates returns for (i) discontinued products, (ii) store closings and (iii) products that have reached or exceeded their designated expiration date. We do not impose a period of time within which product may be returned. All requests for product returns must be submitted to us for pre-approval. The main components of our returns policy are: (i) we will accept returns that are due to damaged product that is un-saleable and such return request activity falls within an acceptable range, (ii) we will accept returns for products that have reached or exceeded designated expiration dates and (iii) we will accept returns in the event that we discontinue a product provided that the customer will have the right to return only such items that it purchased directly from us. We will not accept return requests pertaining to customer inventory &#8220;Overstocking&#8221; or &#8220;Resets&#8221;. We will only accept return requests for product in its intended package configuration. We reserve the right to terminate shipment of product to customers who have made unauthorized deductions contrary to our return policy or pursue other methods of reimbursement. We compensate the customer for authorized returns by means of a credit applied to amounts owed or to be owed and in the case of discontinued product only, also by way of an exchange. We do not have any significant product exchange history.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Pursuant to the terms of the Asset Purchase Agreement, we are responsible for and continue to accept product returns of the Cold-EEZE<sup>&#174;&#160;</sup>Business for product shipped prior to March 30, 2017. Additionally, pursuant to the terms of the Asset Purchase Agreement, we allocated and, in June 2017, issued a credit to Mylan in an aggregate of $400,000 for future sales returns and allowances arising from certain product returns that were sold by us prior to March 30, 2017.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 27pt">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As of June 30, 2017 and December 31, 2016, we included a provision for sales allowances of zero and $108,000, respectively. Additionally, accrued advertising and other allowances as of June 30, 2017 included (i) $934,000 for estimated future sales returns and (ii) $598,000 for cooperative incentive promotion costs. As of December 31, 2016, accrued advertising and other allowances included (i) $1.2 million for estimated future sales returns and (ii) $1.5 million for cooperative incentive promotion costs.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Advertising and Incentive Promotions</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Advertising and incentive promotion costs are expensed within the period in which they are utilized. Advertising and incentive promotion expense is comprised of (i) media advertising, presented as part of sales and marketing expense, (ii) cooperative incentive promotions and coupon program expenses, which are accounted for as part of net sales, and (iii) free product, which is accounted for as part of cost of sales. Advertising and incentive promotion expenses incurred (i) from continuing operations for the three months ended June 30, 2017 and 2016 were $21,000 and $139,000, respectively, and (ii) attributed to and classified as discontinued operations were $205,000 and $471,000, respectively. Advertising and incentive promotion expenses incurred (i) from continuing operations for the six months ended June 30, 2017 and 2016 were $53,000 and $339,000 , respectively, and (ii) attributed to and classified as discontinued operations were $2.8 million and $3.3 million, respectively. Included in prepaid expenses and other current assets was $17,000 and $263,000 at June 30, 2017 and December 31, 2016, respectively, relating to prepaid advertising and promotion expenses.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Shipping and Handling</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Product sales may carry shipping and handling charges to the purchaser, included as part of the invoiced price, which is classified as revenue. In all cases, costs related to this revenue are recorded in cost of sales.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Stock-Based Compensation</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We recognize all share-based payments to employees and directors, including grants of stock options, as compensation expense in the financial statements based on their fair values. Fair values of stock options are determined through the use of the Black-Scholes option pricing model. The compensation cost is recognized as an expense over the requisite service period of the award, which usually coincides with the vesting period.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Stock and stock options for the purchase of our common stock, $0.0005 par value (&#8220;Common Stock&#8221;), have been granted to both employees and non-employees pursuant to the terms of certain agreements and stock option plans (see Note 6). Stock options are exercisable during a period determined by us, but in no event later than ten years from the date granted. For the three and six months ended June 30, 2017 and 2016, we charged to operations $18,000 and $1,000, respectively, for share-based compensation expense for the aggregate fair value of stock grants issued and vested stock options earned.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Research and Development</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Research and development costs are charged to operations in the period incurred. Research and development costs incurred for the three months ended June 30, 2017 and 2016 (i) from continuing operations were $224,000 and $121,000, respectively, and (ii) attributed to and classified as discontinued operations of zero and $48,000, respectively. Research and development costs incurred for the six months ended June 30, 2017 and 2016 (i) from continuing operations were $258,000 and $160,000, respectively, and (ii) attributed to and classified as discontinued operations of $52,000 and $95,000, respectively. Research and development costs are principally related to personnel expenses and new product development initiatives and costs associated with our OTC health care products.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Income Taxes</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We utilize the asset and liability approach which requires the recognition of deferred tax assets and liabilities for the future tax consequences of events that have been recognized in our financial statements or tax returns. In estimating future tax consequences, we generally consider all expected future events other than enactments of changes in the tax law or rates. Until we have sufficient taxable income to offset the temporary timing differences attributable to operations and the tax deductions attributable to option, warrant and stock activities are assured, a full valuation allowance equaling the total deferred tax asset is being provided (see Notes 4 and 7).</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We utilize a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than fifty percent likely of being realized upon ultimate settlement. Any interest or penalties related to income taxes will be recorded as interest or administrative expense, respectively.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As a result of our continuing tax losses, we have recorded a full valuation allowance against a net deferred tax asset. Additionally, we have not recorded a liability for unrecognized tax benefits.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><b><i>Recently Issued Accounting Standards</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In May 2014, the Financial Accounting Standards Board (&#8220;FASB&#8221;) issued Accounting Standards Update (&#8220;ASU&#8221;) No. 2014-09, &#8220;Revenue from Contracts with Customers&#8221;, on revenue recognition. The new standard provides for a single five-step model to be applied to all revenue contracts with customers as well as requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This ASU, as amended, is effective for fiscal years and interim periods within those years beginning after December 15, 2017. We are currently assessing the impact of this update, but preliminarily believe that its adoption will not have a material impact on our consolidated financial statements.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In February 2016, the FASB issued ASU No. 2016-02 &#8220;Leases&#8221;. The new standard will require most leases to be recognized on the balance sheet which will increase reported assets and liabilities. Lessor accounting remains substantially similar to current guidance. The new standard is effective for annual and interim periods in fiscal years beginning after December 15, 2018, which for us is the first quarter of fiscal 2019 and mandates a modified retrospective transition method. We do not intend to early adopt and are currently assessing the impact of this update, but preliminarily believe that its adoption will not have a material impact on our consolidated financial statements.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In June 2016, the FASB issued ASU No. 2016-13, &#8220;Financial Instruments&#8212;Credit Losses.&#8221; The standard modifies the impairment model for most financial assets, including trade accounts receivables and loans, and will require the use of an &#8220;expected loss&#8221; model for instruments measured at amortized cost. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The effective date of the standard is for fiscal years beginning after December 15, 2019 with early adoption permitted. We are currently evaluating the impact of adoption of this update on our consolidated financial statements.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b>&#160;</b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In August 2016, the FASB issued ASU No. 2016-15, &#8220;Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments&#8221;<i>.</i>&#160;The new standard attempts to reduce diversity in practice in how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU No. 2016-15 provides guidance on eight specific cash flow issues. The new guidance will be effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted including adoption in an interim period. We do not intend to early adopt and we are currently assessing the impact of adoption of this update will have on our consolidated financial statements.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In October 2016, the FASB issued ASU No. 2016-16, &#8220;Income Taxes: Intra-Entity Transfers of Assets Other than Inventory&#8221;. The new standard requires entities should recognize the income tax consequences of an asset other than inventory when the asset transfer occurs. The new guidance will be effective for fiscal years beginning after December 15, 2017 and requires a modified retrospective adoption through a cumulative effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are currently evaluating the impact of adoption of this update on our consolidated financial statements.</p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The net proceeds received from the sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business were as follows (in thousands):</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">Amount</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">(as restated)</p></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 80%; padding-left: 1.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Gross consideration from the sale of the Cold-EEZE<sup>&#174;&#160;</sup>Business</font></td> <td style="width: 2%; line-height: 107%">&#160;</td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 16%; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">50,000</font></td> <td style="width: 1%; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 1.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Closing and transaction costs</font></td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(4,175</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 10pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net proceeds from sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">45,825</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 1.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Book value of assets sold</font></td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(13</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 20pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Gain on sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business before income taxes</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">45,812</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 1.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Income tax expense</font></td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(3,128</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 20pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Gain on sale of the Cold-EEZE<sup>&#174;</sup>&#160;Business after income taxes</font></td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">42,684</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 1.5pt; line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 1.5pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net proceeds:</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="text-align: right; line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 20pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Cash paid at closing, net of closing and transaction costs</font></td> <td style="line-height: 107%">&#160;</td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">43,145</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 20pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Proceeds due on sale of assets, cash held in escrow</font></td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">5,000</font></td> <td style="line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 1.5pt; line-height: 107%">&#160;</td> <td style="line-height: 107%">&#160;</td> <td style="border-bottom: black 2.25pt double; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">48,145</font></td> <td style="line-height: 107%">&#160;</td></tr> </table> <p style="margin: 0pt"></p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The following table sets forth the condensed operating results of our discontinued operations for the three and six months ended June 30, 2017 and 2016, respectively, (in thousands):</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.75in"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td colspan="6" style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Three Months Ended June 30,</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td colspan="6" style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Six Months Ended June 30,</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2017</font></td> <td style="padding-left: 3pt">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2016</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2017</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: center; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2016</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 45%; padding-left: 2pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Net sales</font></td> <td style="width: 1%; padding-left: 3pt; line-height: 107%">&#160;</td> <td style="width: 1%; padding-left: 3pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 11%; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(371</font></td> <td style="width: 1%; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="width: 1%; padding-left: 3pt; line-height: 107%">&#160;</td> <td style="width: 1%; padding-left: 3pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 12%; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,826</font></td> <td style="width: 1%; padding-left: 3pt; line-height: 107%">&#160;</td> <td style="width: 1%; padding-left: 3pt; line-height: 107%">&#160;</td> <td style="width: 1%; padding-left: 3pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 10%; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">4,687</font></td> <td style="width: 1%; padding-left: 3pt; line-height: 107%">&#160;</td> <td style="width: 1%; padding-left: 3pt; line-height: 107%">&#160;</td> <td style="width: 1%; padding-left: 3pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="width: 10%; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">6,179</font></td> <td style="width: 1%; padding-left: 3pt; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 2pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Cost of sales</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">264</font></td> <td style="padding-left: 3pt">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">728</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,037</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,427</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 2pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Sales and marketing</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">200</font></td> <td style="padding-left: 3pt">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">533</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">1,720</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">2,833</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 2pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Administration</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="padding-left: 3pt">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">319</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">348</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">656</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-left: 2pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Research and development</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">-</font></td> <td style="padding-bottom: 1.5pt; padding-left: 3pt">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">48</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">52</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">95</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 2pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">Income (loss) from discontinued operations</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">(835</font></td> <td style="line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">198</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">530</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td> <td style="border-bottom: black 1.5pt solid; padding-left: 3pt; text-align: right; line-height: 107%"><font style="font: 10pt Times New Roman, Times, Serif">168</font></td> <td style="padding-left: 3pt; line-height: 107%">&#160;</td></tr> </table> <p style="margin: 0pt"></p> 2017 69000 69000 2300000 16166796 400000 45825000 5000000 12802000 50099000 3175000 2875000 9627000 42224000 680000 849000 2736000 1966000 5770000 1835000 6840000 4224000 3473000 751000 717000 389000 289000 2805000 1551000 2156000 916000 1490000 12802000 50099000 50099000 30742000 32600000 -19687000 21895000 22646000 -751000 56378000 56567000 13000 13000 751000 751000 -667000 -188000 -667000 294000 -1450000 -596000 -100000 -1350000 -1254000 -621000 -1240000 382000 169000 -703000 -770000 18000 -3935000 -2199000 18000 1000 -10000 -12000 419000 213000 -1027000 -19473000 18446000 42684000 26339000 16345000 40693000 -327000 132000 327000 40825000 -3187000 171000 1858000 1500000 36839000 -515000 441000 37280000 1149000 1664000 1350000 5000000 225000 314000 140000 28000 2451000 1723000 1765000 993000 2676000 2037000 1905000 1021000 -2659000 -2631000 -1460000 -1325000 97000 -105000 151000 -53000 2981000 2840000 1751000 1300000 2387000 2146000 1306000 943000 336000 534000 221000 236000 43214000 168000 -1419000 198000 -845000 -574000 26869000 16345000 -530000 -168000 835000 -198000 -1632000 -2631000 -886000 -1325000 -1460000 574000 15464000 -17096000 2.44 -0.14 -0.14 -0.07 2.54 0.01 -0.08 0.01 -0.05 -0.03 1.58 0.96 -0.10 -0.15 -0.06 -0.08 -0.09 0.03 0.91 -1.01 2.34 -0.14 -0.14 -0.07 2.44 0.01 -0.08 0.01 -0.05 -0.03 1.52 0.92 -0.10 -0.15 -0.06 -0.08 -0.09 0.03 0.87 -0.97 17680 17081 16943 17081 17030 17081 16943 17081 54000 95000 2.44 -0.14 -0.14 0.00 2.49 -0.05 2.34 -0.14 -0.14 0.00 2.39 -0.05 -717000 1858000 1858000 <p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>Note 2 - Restatement of Previously Issued Financial Statements</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company determined that when calculating its income tax provision related to the gain on sale of discontinued operations, it incorrectly utilized available net operating losses without considering the statutory limitations imposed by the state of Pennsylvania, and that it incorrectly allocated the amount of income tax benefit resulting from the reversal of certain valuation allowances to continuing operations, which resulted in an overstatement of income the tax benefit from continuing operations and an understatement of the gain on sale of discontinued operations, which is presented net of taxes. In the process of this determination, the Company determined that such information existed at June 30, 2017 which affected the income tax benefit/ provision from continuing and discontinued operations reported in the three and six months ended June 30, 2017. The Company concluded that the impact of applying corrections for these errors and misstatements on the consolidated financial statements as of and for the three and six months ended June 30, 2017 is material. As a result, the Company is restating its consolidated financial statements as of and for the three and six months ended June 30, 2017. See below for a reconciliation of the previously reported amounts to the restated amounts.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The table below sets forth the condensed consolidated balance sheet, including the balances as originally reported, adjustments and the as restated balances (in thousands):</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">As of June 30, 2017</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">As originally reported</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">Adjustments</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">As restated</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 43%; padding-bottom: 1.5pt"><font style="font-size: 10pt">Income taxes payable</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">751</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">751</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt"><font style="font-size: 10pt">Total current liabilities</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">3,473</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">751</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">4,224</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Retained earnings</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">22,646</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(751</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">21,895</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt; padding-left: 10pt"><font style="font-size: 10pt">Total stockholders' equity</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">46,626</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(751</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">45,875</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt; padding-left: 10pt"><font style="font-size: 10pt">Total liabilities and stockholders' equity</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">50,099</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">50,099</font></td> <td style="padding-bottom: 2.5pt">&#160;</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0.5in">The table below sets for the condensed consolidated statements of operations, including the balances as originally reported, adjustments, and the as restated amounts (in thousands):</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">For the three months ended June 30, 2017</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">As originally</font><br /> <font style="font-size: 10pt">reported</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">Adjustments</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">As restated</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 43%; padding-bottom: 1.5pt"><font style="font-size: 10pt">Income tax benefit from continuing operations</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">574</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">574</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Loss from continuing operations</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">(1,460</font></td> <td><font style="font-size: 10pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">574</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">(886</font></td> <td><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Gain on sale of discontinued operations, net of taxes</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(10</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(574</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(584</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Loss from discontinued operations, net of tax</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(845</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(574</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(1,419</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Net loss</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(2,305</font></td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(2,305</font></td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Basic loss per share:</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Loss from continuing operations</font></td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(0.09</font></td> <td><font style="font-size: 10pt">)</font></td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">0.03</font></td> <td>&#160;</td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(0.06</font></td> <td><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Loss from discontinued operations</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(0.05</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(0.03</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(0.08</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 2.5pt; padding-left: 10pt"><font style="font-size: 10pt">Net loss</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(0.14</font></td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.00</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(0.14</font></td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Diluted loss per share:</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Loss from continuing operations</font></td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(0.09</font></td> <td><font style="font-size: 10pt">)</font></td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">0.03</font></td> <td>&#160;</td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(0.06</font></td> <td><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Loss from discontinued operations</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(0.05</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(0.03</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(0.08</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt; padding-left: 10pt"><font style="font-size: 10pt">Net loss</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(0.14</font></td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.00</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(0.14</font></td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">For the six months ended June 30, 2017</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">As originally</font><br /> <font style="font-size: 10pt">reported</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">Adjustments</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">As restated</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 43%; padding-bottom: 1.5pt"><font style="font-size: 10pt">Income tax benefit from continuing operations</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">18,123</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(17,096</font></td> <td style="width: 1%; padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">1,027</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Income (loss) from continuing operations</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">15,464</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">(17,096</font></td> <td><font style="font-size: 10pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">(1,632</font></td> <td><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Gain on sale of discontinued operations, net of taxes</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">26,339</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">16,345</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">42,684</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Income from discontinued operations</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">26,869</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">16,345</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">43,214</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Net income</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">42,333</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(751</font></td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">41,582</font></td> <td style="padding-bottom: 2.5pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Basic earnings (loss) per share:</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Income (loss) from continuing operations</font></td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">0.91</font></td> <td>&#160;</td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(1.01</font></td> <td><font style="font-size: 10pt">)</font></td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(0.10</font></td> <td><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Income income from discontinued operations</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">1.58</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">0.96</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">2.54</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 2.5pt; padding-left: 10pt"><font style="font-size: 10pt">Net income</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">2.49</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(0.05</font></td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">2.44</font></td> <td style="padding-bottom: 2.5pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Diluted earnings (loss) per share:</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Income (loss) from continuing operations</font></td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">0.87</font></td> <td>&#160;</td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(0.97</font></td> <td><font style="font-size: 10pt">)</font></td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(0.10</font></td> <td><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Income from discontinued operations</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">1.52</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">0.92</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">2.44</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt; padding-left: 10pt"><font style="font-size: 10pt">Net income</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">2.39</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(0.05</font></td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">2.34</font></td> <td style="padding-bottom: 2.5pt">&#160;</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The table below sets forth the condensed consolidated statements of cash flows from operating activities, including the balances as originally reported, adjustments and the as restated balances (in thousands):</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">For the six months ended June 30, 2017</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">As originally</font><br /> <font style="font-size: 10pt">reported</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">Adjustments</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">As restated</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 43%; padding-left: 10pt"><font style="font-size: 10pt">Net income</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; text-align: right"><font style="font-size: 10pt">42,333</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; text-align: right"><font style="font-size: 10pt">(751</font></td> <td style="width: 1%"><font style="font-size: 10pt">)</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; text-align: right"><font style="font-size: 10pt">41,582</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Gain on sale of assets, net of taxes</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">(26,339</font></td> <td><font style="font-size: 10pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">(16,345</font></td> <td><font style="font-size: 10pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">(42,684</font></td> <td><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Change in valuation allowance, income tax</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">(19,473</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">18,446</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">(1,027</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Other current liabilities</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(100</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(1,350</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(1,450</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Net cash used in operating activities</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(667</font></td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(667</font></td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The restatement had no impact on cash flows from investing activities or financing activities or net increase in cash.</p> <p style="margin: 0pt"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The table below sets forth the condensed consolidated balance sheet, including the balances as originally reported, adjustments and the as restated balances (in thousands):</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">As of June 30, 2017</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">As originally reported</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">Adjustments</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">As restated</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 43%; padding-bottom: 1.5pt"><font style="font-size: 10pt">Income taxes payable</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">751</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">751</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-left: 10pt"><font style="font-size: 10pt">Total current liabilities</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">3,473</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">751</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">4,224</font></td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Retained earnings</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">22,646</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(751</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">21,895</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt; padding-left: 10pt"><font style="font-size: 10pt">Total stockholders' equity</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">46,626</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(751</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">45,875</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt; padding-left: 10pt"><font style="font-size: 10pt">Total liabilities and stockholders' equity</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">50,099</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">50,099</font></td> <td style="padding-bottom: 2.5pt">&#160;</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: justify; text-indent: 0.5in">The table below sets for the condensed consolidated statements of operations, including the balances as originally reported, adjustments, and the as restated amounts (in thousands):</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">For the three months ended June 30, 2017</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">As originally</font><br /> <font style="font-size: 10pt">reported</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">Adjustments</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">As restated</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 43%; padding-bottom: 1.5pt"><font style="font-size: 10pt">Income tax benefit from continuing operations</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">574</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">574</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Loss from continuing operations</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">(1,460</font></td> <td><font style="font-size: 10pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">574</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">(886</font></td> <td><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Gain on sale of discontinued operations, net of taxes</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(10</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(574</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(584</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Loss from discontinued operations, net of tax</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(845</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(574</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(1,419</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Net loss</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(2,305</font></td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(2,305</font></td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Basic loss per share:</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Loss from continuing operations</font></td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(0.09</font></td> <td><font style="font-size: 10pt">)</font></td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">0.03</font></td> <td>&#160;</td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(0.06</font></td> <td><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Loss from discontinued operations</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(0.05</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(0.03</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(0.08</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 2.5pt; padding-left: 10pt"><font style="font-size: 10pt">Net loss</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(0.14</font></td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.00</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(0.14</font></td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Diluted loss per share:</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Loss from continuing operations</font></td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(0.09</font></td> <td><font style="font-size: 10pt">)</font></td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">0.03</font></td> <td>&#160;</td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(0.06</font></td> <td><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Loss from discontinued operations</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(0.05</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(0.03</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(0.08</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt; padding-left: 10pt"><font style="font-size: 10pt">Net loss</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(0.14</font></td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">0.00</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(0.14</font></td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">For the six months ended June 30, 2017</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">As originally</font><br /> <font style="font-size: 10pt">reported</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">Adjustments</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">As restated</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 43%; padding-bottom: 1.5pt"><font style="font-size: 10pt">Income tax benefit from continuing operations</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">18,123</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(17,096</font></td> <td style="width: 1%; padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td> <td style="width: 1%; border-bottom: black 1.5pt solid"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">1,027</font></td> <td style="width: 1%; padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Income (loss) from continuing operations</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">15,464</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">(17,096</font></td> <td><font style="font-size: 10pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">(1,632</font></td> <td><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Gain on sale of discontinued operations, net of taxes</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">26,339</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">16,345</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">42,684</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Income from discontinued operations</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">26,869</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">16,345</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">43,214</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Net income</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">42,333</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(751</font></td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double">&#160;</td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">41,582</font></td> <td style="padding-bottom: 2.5pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Basic earnings (loss) per share:</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Income (loss) from continuing operations</font></td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">0.91</font></td> <td>&#160;</td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(1.01</font></td> <td><font style="font-size: 10pt">)</font></td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(0.10</font></td> <td><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Income income from discontinued operations</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">1.58</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">0.96</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">2.54</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 2.5pt; padding-left: 10pt"><font style="font-size: 10pt">Net income</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">2.49</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(0.05</font></td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">2.44</font></td> <td style="padding-bottom: 2.5pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td><font style="font-size: 10pt">Diluted earnings (loss) per share:</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Income (loss) from continuing operations</font></td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">0.87</font></td> <td>&#160;</td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(0.97</font></td> <td><font style="font-size: 10pt">)</font></td> <td>&#160;</td> <td><font style="font-size: 10pt">$</font></td> <td style="text-align: right"><font style="font-size: 10pt">(0.10</font></td> <td><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Income from discontinued operations</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">1.52</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">0.92</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">2.44</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 2.5pt; padding-left: 10pt"><font style="font-size: 10pt">Net income</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">2.39</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(0.05</font></td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">2.34</font></td> <td style="padding-bottom: 2.5pt">&#160;</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The table below sets forth the condensed consolidated statements of cash flows from operating activities, including the balances as originally reported, adjustments and the as restated balances (in thousands):</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td>&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="10" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">For the six months ended June 30, 2017</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">As originally</font><br /> <font style="font-size: 10pt">reported</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">Adjustments</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center"><font style="font-size: 10pt">As restated</font></td> <td style="padding-bottom: 1.5pt">&#160;</td></tr> <tr style="vertical-align: bottom"> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td> <td>&#160;</td> <td colspan="2">&#160;</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="width: 43%; padding-left: 10pt"><font style="font-size: 10pt">Net income</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; text-align: right"><font style="font-size: 10pt">42,333</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; text-align: right"><font style="font-size: 10pt">(751</font></td> <td style="width: 1%"><font style="font-size: 10pt">)</font></td> <td style="width: 1%">&#160;</td> <td style="width: 1%"><font style="font-size: 10pt">$</font></td> <td style="width: 16%; text-align: right"><font style="font-size: 10pt">41,582</font></td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom; background-color: white"> <td><font style="font-size: 10pt">Gain on sale of assets, net of taxes</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">(26,339</font></td> <td><font style="font-size: 10pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">(16,345</font></td> <td><font style="font-size: 10pt">)</font></td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">(42,684</font></td> <td><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Change in valuation allowance, income tax</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">(19,473</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">18,446</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="padding-bottom: 1.5pt">&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 10pt">(1,027</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: white"> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">Other current liabilities</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(100</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(1,350</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 1.5pt">&#160;</td> <td style="border-bottom: black 1.5pt solid">&#160;</td> <td style="border-bottom: black 1.5pt solid; text-align: right"><font style="font-size: 10pt">(1,450</font></td> <td style="padding-bottom: 1.5pt"><font style="font-size: 10pt">)</font></td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">Net cash used in operating activities</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(667</font></td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">-</font></td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="padding-bottom: 2.5pt">&#160;</td> <td style="border-bottom: black 2.25pt double"><font style="font-size: 10pt">$</font></td> <td style="border-bottom: black 2.25pt double; text-align: right"><font style="font-size: 10pt">(667</font></td> <td style="padding-bottom: 2.5pt"><font style="font-size: 10pt">)</font></td></tr> </table> <p style="margin: 0pt"></p> <p style="margin: 0pt"></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On August 10, 2018, the Company&#8217;s management, after consultation and discussions with EisnerAmper LLP, the Company&#8217;s independent registered public accounting firm, and the Audit Committee of the Board of Directors, concluded that the Company&#8217;s previously issued audited consolidated financial statements for the fiscal year ended December 31, 2017 included in the Company&#8217;s Annual Report on Form 10-K for such period and unaudited&#160;condensed&#160;consolidated financial statements for the fiscal quarters ended March 31, 2017, June 30, 2017, September 30, 2017 and March 31, 2018&#160;(collectively with the fiscal year ended December 31, 2017, the &#8220;Restated and Revised Periods&#8221;)&#160;included in the Company&#8217;s Quarterly Reports on Form 10-Q for such periods should no longer be relied upon, and determined that these financial statements will be restated due to the identification of certain accounting errors related to income tax accounting.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company has determined that it miscalculated its income tax benefit by incorrectly utilizing certain net operating losses without taking into account the statutory limitation imposed by the State of Pennsylvania, which resulted in an overstatement of net income as discussed below. The Company also incorrectly&#160;determined&#160;the amount of income tax benefit&#160;allocable&#160;to continuing operations, which resulted in an overstatement of income from continuing operations, and an equal understatement of the gain on sale of discontinued operations, presented net of taxes, which had no impact on net income.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Based on its review, the Company has determined that its income tax expense was understated and its net income was overstated by approximately $1.2 million for the fiscal year ended December 31, 2017. Concurrently with the filing of this Form10-Q/A, the Company is filing an amendment on Form 10-K/A to its Annual Report on Form 10-K for the fiscal year ended December 31, 2017 to restate the audited consolidated financial statements included in the Form 10-K and amendments on Form 10-Q/A to its Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2017, June 30, 2017, September 30, 2017&#160;and March 31, 2018&#160;to correct the errors described above.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The corrections to the Restated and Revised Periods, which we refer to herein collectively as the &#8220;Restatement&#8221;, were prepared following an independent review by the Company.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Description of the Restatement</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In completing our Federal and State income tax preparation review procedures&#160;for filing of the Federal and State income tax returns for the fiscal year ended December 31, 2017&#160;during the second quarter of fiscal 2018, the Company identified an error in the accounting treatment of state Net Operating Loss (NOL) limitations which resulted in understatement of state income tax liability&#160;and expense&#160;of approximately $0.7 million and a corresponding overstatement&#160;net income for the six months ended&#160;June 30, 2017. We also identified an error in our treatment of the reversal of certain valuation allowances in 2017&#160;and their allocation between continuing and discontinued operations&#160;resulting in the overstatement of the tax benefit allocated to continuing operations and an equal overstatement of the tax provision for discontinued operations of approximately $16.3 million for the six months ended June 30, 2017, and the understatement of the tax benefit allocated to continuing operations and an equal understatement of the tax provision for discontinued operations of approximately $0.6 million for the three months ended June 30, 2017, which had no further impact on net income.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">For additional information regarding the corrections to the financial statements in the Restated and Revised Periods, see Notes 2, 4 and 7 of the&#160;Condensed&#160;Consolidated Financial Statements included in Part I, Item 1, &#8220;Financial Statements&#8221;.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Internal Controls Over Financial Reporting</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-align: justify; text-indent: 0.5in">As a result of the Restatement, we also concluded that we had a material weakness related to our internal control over financial reporting. For more information regarding management&#8217;s assessment of internal control over financial reporting and disclosure controls and procedures, as well as the related remediation actions, refer to Item 4 &#8220;Controls and Procedures&#8221; in this Quarterly Report on Form 10-Q/A.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Items Amended by this Form 10-Q/A</i></b></p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">This Form 10-Q/A amends and restates the entire contents of the original Form 10-Q. The portions of this Form 10-Q/A that have been revised to give effect to the Restatement and matters related thereto are as follows:</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 72px">&#160;</td> <td style="width: 24px; font: 11pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">&#9679;</font></td> <td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Part I, Item 1. Financial Statements</font></td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">&#9679;</font></td> <td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Part I, Item 2. Management&#8217;s Discussions and Analysis of Financial Condition and Results of Operations</font></td></tr> <tr style="vertical-align: top"> <td>&#160;</td> <td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Times New Roman, Times, Serif">&#9679;</font></td> <td style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Part I, Item 4. Controls and Procedures</font></td></tr> </table> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">In addition, the Company&#8217;s Chief Executive Officer and Principal Accounting Officer have provided new certifications dated as of the date of this filing in connection with this Form 10-Q/A.</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Except as described above, no other changes have been made to the Company&#8217;s Quarterly Report on Form 10-Q ended June 30, 2017 (the &#8220;Original Filing&#8221;). This Form 10-Q/A speaks as of the date of the Original Filing and does not reflect events that may have occurred after the date of the Original Filing or modify or update any disclosures that may have been affected by subsequent events.</p> <p style="margin: 0pt"></p> EX-101.SCH 7 prph-20170630.xsd XBRL SCHEMA FILE 00000001 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 00000002 - Statement - Condensed Consolidated Balance Sheets link:presentationLink link:calculationLink link:definitionLink 00000003 - Statement - Condensed Consolidated Balance Sheets (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000004 - Statement - Condensed Consolidated Statements of Operations (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000005 - Statement - Condensed Consolidated Statement of Stockholders' Equity (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000006 - Statement - Condensed Consolidated Statements of Cash Flows (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000007 - Disclosure - Organization and Business link:presentationLink link:calculationLink link:definitionLink 00000008 - Disclosure - Restatement of Previously Issued Financial Statements link:presentationLink link:calculationLink link:definitionLink 00000009 - Disclosure - Summary of Significant Accounting Policies link:presentationLink link:calculationLink link:definitionLink 00000010 - Disclosure - Discontinued Operations, Sale of the Cold-EEZE® Business link:presentationLink link:calculationLink link:definitionLink 00000011 - Disclosure - Secured Promissory Notes and Other Obligations link:presentationLink link:calculationLink link:definitionLink 00000012 - Disclosure - Transactions Affecting Stockholders' Equity link:presentationLink link:calculationLink link:definitionLink 00000013 - Disclosure - Income Taxes link:presentationLink link:calculationLink link:definitionLink 00000014 - Disclosure - Commitments and Contingencies link:presentationLink link:calculationLink link:definitionLink 00000015 - Disclosure - Earnings (Loss) Per Share link:presentationLink link:calculationLink link:definitionLink 00000016 - Disclosure - Summary of Significant Accounting Policies (Policies) link:presentationLink link:calculationLink link:definitionLink 00000017 - Disclosure - Restatement of Previously Issued Financial Statements (Tables) link:presentationLink link:calculationLink link:definitionLink 00000018 - Disclosure - Summary of Significant Accounting Policies (Tables) link:presentationLink link:calculationLink link:definitionLink 00000019 - Disclosure - Discontinued Operations, Sale of the Cold-EEZE® Business (Tables) link:presentationLink link:calculationLink link:definitionLink 00000020 - Disclosure - Commitments and Contingencies (Tables) link:presentationLink link:calculationLink link:definitionLink 00000021 - Disclosure - Restatement of Previously Issued Financial Statements - Schedule of Consolidated Financial Statements Previously Issued (Details) link:presentationLink link:calculationLink link:definitionLink 00000022 - Disclosure - Summary of Significant Accounting Policies (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000023 - Disclosure - Summary of Significant Accounting Policies - Components of Inventory (Details) link:presentationLink link:calculationLink link:definitionLink 00000024 - Disclosure - Discontinued Operations, Sale of the Cold-EEZE® Business (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000025 - Disclosure - Discontinued Operations, Sale of the Cold-EEZE® Business - Schedule of Proceeds from Sale of Business (Details) link:presentationLink link:calculationLink link:definitionLink 00000026 - Disclosure - Discontinued Operations, Sale of the Cold-EEZE® Business - Schedule of Operating Results of Discontinued Operations (Details) link:presentationLink link:calculationLink link:definitionLink 00000027 - Disclosure - Secured Promissory Notes and Other Obligations (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000028 - Disclosure - Transactions Affecting Stockholders' Equity (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000029 - Disclosure - Income Taxes (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000030 - Disclosure - Commitments and Contingencies (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000031 - Disclosure - Commitments and Contingencies - Schedule of Estimated Future Minimum Obligations (Details) link:presentationLink link:calculationLink link:definitionLink 00000032 - Disclosure - Earnings (Loss) Per Share (Details Narrative) link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 8 prph-20170630_cal.xml XBRL CALCULATION FILE EX-101.DEF 9 prph-20170630_def.xml XBRL DEFINITION FILE EX-101.LAB 10 prph-20170630_lab.xml XBRL LABEL FILE Valuation Allowances and Reserves Type [Axis] Estimated Future Sales Return [Member] Loss Contingency Nature [Axis] Employment Contracts [Member] Income Tax Authority [Axis] Domestic Tax Authority [Member] State and Local Jurisdiction [Member] Plan Name [Axis] 2010 Equity Compensation Plan [Member] Short-term Debt, Type [Axis] 2015 Equity Line of Credit [Member] Legal Entity [Axis] Dutchess [Member] Debt Instrument [Axis] Secured Promissory Notes [Member] Equity Components [Axis] Common Stock Shares Outstanding, Net of Shares of Treasury Stock [Member] Additional Paid-In Capital [Member] Retained Earnings (Accum. Deficit) [Member] Treasury Stock [Member] Property, Plant and Equipment, Type [Axis] Machinery and Equipment [Member] Range [Axis] Minimum [Member] Maximum [Member] Furniture and Fixtures [Member] Stockholder Rights Plan [Member] 2010 Directors' Equity Compensation Plan [Member] Related Party [Axis] Chairman and Chief Executive Officer [Member] Type of Arrangement and Non-arrangement Transactions [Axis] Rights Agreement [Member] Operating Activities [Axis] Discontinued Operations [Member] Cold-EEZE Business [Member] Investors [Member] 1997 Equity Compensation Plan [Member] Mylan and Escrow Agent [Member] Escrow Agreement [Member] Cooperative Incentive [Member] Building and Improvements [Member] Computer Software [Member] Asset Purchase Agreement [Member] Mylan [Member] Title of Individual [Axis] Employees [Member] 2010 Plan [Member] Stock Purchase Agreement [Member] Leventhal Holders [Member] Scenario [Axis] As Originally Reported [Member] Adjustments [Member] Document And Entity Information [Abstract] Entity Registrant Name Entity Central Index Key Document Type Document Period End Date Amendment Flag Amendment Description Current Fiscal Year End Date Entity Filer Category Entity Common Stock, Shares Outstanding Trading Symbol Document Fiscal Period Focus Document Fiscal Year Focus Statement of Financial Position [Abstract] ASSETS Cash and cash equivalents (Note 3) Accounts receivable, net (Note 3) Inventory (Note 3) Prepaid expenses and other current assets (Note 3) Assets held for sale (Note 4) Total current assets Property, plant and equipment, net of accumulated depreciation of $5,274 and $5,134, respectively (Note 3) Escrow receivable Total assets LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Secured promissory notes, net (Note 5) Accounts payable Accrued advertising and other allowances (Note 3) Other current liabilities Due to Mylan, Inc. and affiliates (Note 4) Income taxes payable Total current liabilities COMMITMENTS AND CONTINGENCIES (Note 8) STOCKHOLDERS' EQUITY Preferred stock, authorized 1,000,000, $.0005 par value, no shares issued (Note 6) Common stock, $.0005 par value; authorized 50,000,000; issued: 26,4454,593 and 26,313,593 shares, respectively (Note 6) Additional paid-in-capital Retained earnings (Accumulated deficit) Treasury stock, at cost, 10,294,797 and 9,232,817 shares (Note 6) Total stockholders' equity Total liabilities and stockholders' equity Accumulated depreciation Preferred stock, shares authorized Preferred stock, par value Preferred stock, shares issued Common stock, par value Common stock, shares authorized Common stock, shares issued Treasury stock, shares Income Statement [Abstract] Net sales (Note 3) Cost of sales (Note 3) Gross profit Operating expenses (Note 3): Sales and marketing Administration Research and development Total operating expenses Other income (expense), net Loss from continuing operations before income taxes (Note 7) Income tax benefit from continuing operations Loss from continuing operations Discontinued operations (Note 4): Income (loss) from discontinued operations Gain on sale of discontinued operations, net of taxes Income (loss) from discontinued operations Net income (loss) Basic earnings (loss) per share: Loss from continuing operations Income (loss) from discontinued operations Net income (loss) Diluted earnings (loss) per share: Loss from continuing operations Income (loss) from discontinued operations Net income (loss) Weighted average common shares outstanding: Basic Diluted Statement [Table] Statement [Line Items] Balance Balance, shares Net income (as restated) Proceeds from warrants exercised Proceeds from warrants exercised, shares Proceeds from options exercised Proceeds from options exercised, shares Treasury stock acquired Treasury stock acquired, shares Share-based compensation expense Tax benefit from exercise of warrants and options Tax benefit allowance Balance Balance, shares Statement of Cash Flows [Abstract] Cash flows from operating activities: Net income (loss) Adjustments to reconcile net income (loss) to net cash (used in) operating activities: Gain on sale of assets, net of taxes Change in valuation allowance, income tax Depreciation and amortization Amortization of loan origination and warrant expenses Share-based compensation expense Changes in operating assets and liabilities: Accounts receivable Inventory Prepaid and other assets Accounts payable Accrued advertising and other allowances Due to Mylan, Inc. and affiliates Other current liabilities Assets held for sale, discontinued operations Net cash used in operating activities Cash flows from investing activities: Net proceeds from the sale of asset Capital expenditures Net cash provided by (used in) investing activities Cash flows from financing activities: Payments to retire Notes Payments to acquire treasury stock Proceeds from exercise of warrants and stock options Net cash used in financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Supplemental disclosures of cash flow information: Interest paid Income taxes paid Non-cash investing activities Escrow receivable Organization, Consolidation and Presentation of Financial Statements [Abstract] Organization and Business Accounting Changes and Error Corrections [Abstract] Restatement of Previously Issued Financial Statements Accounting Policies [Abstract] Summary of Significant Accounting Policies Discontinued Operations and Disposal Groups [Abstract] Discontinued Operations, Sale of the Cold-EEZE® Business Debt Disclosure [Abstract] Secured Promissory Notes and Other Obligations Equity [Abstract] Transactions Affecting Stockholders' Equity Income Tax Disclosure [Abstract] Income Taxes Commitments and Contingencies Disclosure [Abstract] Commitments and Contingencies Earnings Per Share [Abstract] Earnings (Loss) Per Share Basis of Presentation Discontinued Operations Carve Out and ProPhase Allocations Seasonality of the Business Use of Estimates Cash and Cash Equivalents Inventory Valuation Property, Plant and Equipment Concentration of Risks Long-lived Assets Fair Value of Financial Instruments Revenue Recognition Advertising and Incentive Promotions Shipping and Handling Stock-Based Compensation Research and Development Income Taxes Recently Issued Accounting Standards Schedule of Consolidated Financial Statements Previously Issued Components of Inventory Schedule of Proceeds from Sale of Business Schedule of Operating Results of Discontinued Operations Schedule of Estimated Future Minimum Obligations Total current liabilities Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Income (loss) from continuing operations Income (Loss) from discontinued operations, net of tax Income (loss) from continuing operations Income from discontinued operations Net income (loss) Income (loss) from continuing operations Income from discontinued operations Net income (loss) Change in valuation allowance, income tax benefit Net cash used in operating activities Administrative expense Research and development discontinued operation Adjustments to reduce inventory for excess or obsolete inventory Property, plant and equipment, useful life Cash balance Bank balance Amount of bank balance covered by federal depository insurance Amount of bank balance uninsured Allowance for bad debt Accrued liabilities Provision for sales allowances Advertising and incentive promotion expenses Prepaid expenses and other current assets Common stock par value Stock option exercisable period Share-based compensation expense Raw materials Work in process Finished goods Total inventory Assets held for sale Transition service fees Due to related party Sales and other allowances Sales return allocation Reimbursement expenses Closing and transaction costs Employees related compensation Gross consideration from the sale of the Cold-EEZE Business Closing and transaction costs Net proceeds from sale of the Cold-EEZE® Business Book value of assets sold Gain on sale of the Cold-EEZE Business before income taxes Income tax expense Gain on sale of the Cold-EEZE Business after income taxes Cash paid at closing, net of closing and transaction costs Proceeds due on sale of assets, cash held in escrow Net proceeds from the sale of assets Net sales Cost of sales Sales and marketing Administration Research and development Income (loss) from discontinued operations Notes bear interest at rate per annum Debt instruments principal amount, maximum limit Proceeds from notes payable Class of warrants issued during period Warrants exercise price per share Incurred loan origination costs Warrant exercise term Fair value of warrants Debt instruments maturity date Percentage of warrant and loan origination costs Interest expense Payment of principal and accrued interest Warrants aggregate exercise price Option Indexed to Issuer's Equity, Type [Axis] Derivative Instrument [Axis] Common stock right's exercise price Equity method investment ownership percentage required for rights exercisable under right agreement Percentage of discount on exercise of right Equity method investment ownership percentage Rights agreement expiration date Stock issued during period shares Maximum number of shares of draw down notice Derivative transaction, conditions description Number of shares beneficially held maximum percentage Available for sale, shares Plan provides total number of shares of common stock issued Stock option granted Common stock option exercisable, per share Stock option vesting period Stock option, expected life Weighted average risk rate Stock option, dividend yield Stock option, expected volatility Stock option, exercised Proceeds from stock option exercised Options outstanding - shares Available for grant, shares Number of shares issued during period Common stock, shares purchased Consideration paid Share price Net operating loss carry-forwards Additional net operating loss carry-forwards Operating loss carry forwards expiration dates description Income tax expense arising from sale Estimated federal and state income taxes to discontinued operations Escrow deposit Escrow receivable, description Agreement termination date 2017 2018 2019 2020 2021 Total Options and warrants outstanding to acquire shares Anti diluted shares Additional Net Operating Loss Carryforwards. Bank balance. Building And Improvements [Member] Chairman and Chief Executive Officer [Member] Computer Equipment and Software [Member] Computer Software Intangible CAsset [Member]. Cooperative Incentive. Derivative transaction, conditions description. Dutchess [Member]. Dutchess Opportunity Fund II, LP [Member] Employees [Member] Equity method investment ownership percentage required for rights exercisable under right agreement. Estimated Future Sales Return. Exercise Price Range One [Member] Exercise Price Range Two [Member] Future Product Development [Member] Godfrey Settlement Agreement [Member]. Net change during the period in the amount of Accrued advertising and other allowances at the period end. Maximum number of shares of draw down notice. Mr Cuddihy [Member] Mr Karkus [Member] Disclosure of accounting policy for the nature of an entity's business, the major products or services it sells or provides and its principal markets, including the locations of those markets. If the entity operates in more than one business, the disclosure also indicates the relative importance of its operations in each business and the basis for the determination (for example, assets, revenues, or earnings). Nineteeen Ninety Seven Equity Compensation Plan [Member] Number of shares beneficially held maximum percentage. OTC Health Care [Member] One Customer [Member] The expiration date of each operating loss carryforward included in total operating loss carryforward, or the applicable range of such expiration dates. This element represent percentage of discount on the current market price for exercise of right. Percentage Of Warrant And Loan Origination Costs. Phusion Joint Venture Entity [Member] Potential Division Sale [Member] PSI Parent. Psi Technology License [Member]. Retail Customer One [Member] Retail Customer Three [Member] Retail Customer Two [Member] Rights Agreement Expiration Date. Rights Agreement [Member] Secured Promissory Notes And Other Obligations [Text Block]. Secured Promissory Notes [Member] Settlement Agreement [Member] Stock issued during period shares under specific agreements. Stockholder Rights Plan [Member]. TK Supplements [Member] Third Party Contract Manufacturing Customer [Member] Total [Member] Two Customers [Member] Two Thosand Ten Directors Equity Compensation Plan [Member]. 2015 Equity Line of Credit [Member] Two Thousand Fourteen Equity Line Of Credit [Member]. Two Thousand Ten Equity Compensation Plan [Member]. Loss from discontinued operations. Proceeds from exercise of warrants, shares. Change in assets held for sale discontinued operations. Schedule of Proceeds from Sale of Business [Table Text Block] Research and development. Sales and marketing. Cold-EEZE Business [Member] Investors [Member] Warrants aggregate exercise price. Closing and transaction costs. Net proceeds from sale business. Book value of assets sold. Cash paid at closing, net of closing and transaction costs. Proceeds due on sale of assets, cash held in escrow. Gross consideration from the sale of the business. Income tax expense. Mylan and Escrow Agent [Member] Escrow Agreement [Member] Escrow receivable, description. Agreement termination date. September 30, 2017 [Member] September 30, 2016 [Member] Options And Warrants Outstanding To Acquire Shares. Income tax expense arising from sale. Computer Software [Member] Stock option exercisable period. Warrant exercise term. Income loss from continuing operations before income taxes. Asset Purchase Agreement [Member] Proceeds from options exercise, shares. Changes in continuing operating assets and liabilities [Abstract] Mylan [Member] Sales and other allowances. Reimbursement expenses. Common stock option exercisable, per share. 2010 Plan [Member] Common stock, shares purchased. Stock Purchase Agreement [Member] Consideration paid. Leventhal Holders [Member] Proceeds from warrants exercised. Escrow receivable. Change in valuation allowance, income tax. Due to an Unaffiliated reporting entity. Due to Mylan, Inc. and affiliates. Assets, Current Assets Treasury Stock, Value Gross Profit Operating Expenses IncomeLossFromContinuingOperationsBeforeIncomeTaxes Discontinued Operation, Tax Effect of Gain (Loss) from Disposal of Discontinued Operation Income (Loss) from Continuing Operations, Per Diluted Share Earnings Per Share, Diluted Shares, Outstanding Treasury Stock, Value, Acquired, Cost Method Gain (Loss) on Disposition of Property Plant Equipment Amortization of Deferred Loan Origination Fees, Net Allocated Share-based Compensation Expense Increase (Decrease) in Accounts Receivable Increase (Decrease) in Inventories Increase (Decrease) in Prepaid Expenses, Other Increase (Decrease) in Accounts Payable IncreaseDecreaseDueFromUnaffiliates Increase (Decrease) in Other Current Liabilities IncreaseDecreaseInAssetsHeldForSaleDiscontinuedOperations Payments to Acquire Property, Plant, and Equipment Net Cash Provided by (Used in) Investing Activities Repayments of Secured Debt Payments for Repurchase of Common Stock Net Cash Provided by (Used in) Financing Activities Cash and Cash Equivalents, Period Increase (Decrease) EscrowReceivable Income Tax, Policy [Policy Text Block] Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Diluted Share Share-based Compensation DiscontinuedOperationIntercompanyAmountWithDiscontinuedOperationBeforeDisposalTransactionCosts DiscontinuedOperationBookValueOfAssetsSold Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax DiscontinuedOperationIncomeTaxExpense Proceeds from Sale of Productive Assets DisposalGroupIncludingDiscontinuedOperationSalesAndMarketing DiscontinuedOperationGainLossFromDisposalOfDiscontinuedOperation Contractual Obligation EX-101.PRE 11 prph-20170630_pre.xml XBRL PRESENTATION FILE XML 12 R1.htm IDEA: XBRL DOCUMENT v3.10.0.1
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2017
Aug. 11, 2017
Document And Entity Information [Abstract]    
Entity Registrant Name ProPhase Labs, Inc.  
Entity Central Index Key 0000868278  
Document Type 10-Q/A  
Document Period End Date Jun. 30, 2017  
Amendment Flag true  
Amendment Description

On August 10, 2018, the Company’s management, after consultation and discussions with EisnerAmper LLP, the Company’s independent registered public accounting firm, and the Audit Committee of the Board of Directors, concluded that the Company’s previously issued audited consolidated financial statements for the fiscal year ended December 31, 2017 included in the Company’s Annual Report on Form 10-K for such period and unaudited condensed consolidated financial statements for the fiscal quarters ended March 31, 2017, June 30, 2017, September 30, 2017 and March 31, 2018 (collectively with the fiscal year ended December 31, 2017, the “Restated and Revised Periods”) included in the Company’s Quarterly Reports on Form 10-Q for such periods should no longer be relied upon, and determined that these financial statements will be restated due to the identification of certain accounting errors related to income tax accounting.

 

The Company has determined that it miscalculated its income tax benefit by incorrectly utilizing certain net operating losses without taking into account the statutory limitation imposed by the State of Pennsylvania, which resulted in an overstatement of net income as discussed below. The Company also incorrectly determined the amount of income tax benefit allocable to continuing operations, which resulted in an overstatement of income from continuing operations, and an equal understatement of the gain on sale of discontinued operations, presented net of taxes, which had no impact on net income.

 

Based on its review, the Company has determined that its income tax expense was understated and its net income was overstated by approximately $1.2 million for the fiscal year ended December 31, 2017. Concurrently with the filing of this Form10-Q/A, the Company is filing an amendment on Form 10-K/A to its Annual Report on Form 10-K for the fiscal year ended December 31, 2017 to restate the audited consolidated financial statements included in the Form 10-K and amendments on Form 10-Q/A to its Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2017, June 30, 2017, September 30, 2017 and March 31, 2018 to correct the errors described above.

 

The corrections to the Restated and Revised Periods, which we refer to herein collectively as the “Restatement”, were prepared following an independent review by the Company.

 

Description of the Restatement

 

In completing our Federal and State income tax preparation review procedures for filing of the Federal and State income tax returns for the fiscal year ended December 31, 2017 during the second quarter of fiscal 2018, the Company identified an error in the accounting treatment of state Net Operating Loss (NOL) limitations which resulted in understatement of state income tax liability and expense of approximately $0.7 million and a corresponding overstatement net income for the six months ended June 30, 2017. We also identified an error in our treatment of the reversal of certain valuation allowances in 2017 and their allocation between continuing and discontinued operations resulting in the overstatement of the tax benefit allocated to continuing operations and an equal overstatement of the tax provision for discontinued operations of approximately $16.3 million for the six months ended June 30, 2017, and the understatement of the tax benefit allocated to continuing operations and an equal understatement of the tax provision for discontinued operations of approximately $0.6 million for the three months ended June 30, 2017, which had no further impact on net income.

 

For additional information regarding the corrections to the financial statements in the Restated and Revised Periods, see Notes 2, 4 and 7 of the Condensed Consolidated Financial Statements included in Part I, Item 1, “Financial Statements”.

 

Internal Controls Over Financial Reporting

 

As a result of the Restatement, we also concluded that we had a material weakness related to our internal control over financial reporting. For more information regarding management’s assessment of internal control over financial reporting and disclosure controls and procedures, as well as the related remediation actions, refer to Item 4 “Controls and Procedures” in this Quarterly Report on Form 10-Q/A.

 

Items Amended by this Form 10-Q/A

 

This Form 10-Q/A amends and restates the entire contents of the original Form 10-Q. The portions of this Form 10-Q/A that have been revised to give effect to the Restatement and matters related thereto are as follows:

 

  Part I, Item 1. Financial Statements
  Part I, Item 2. Management’s Discussions and Analysis of Financial Condition and Results of Operations
  Part I, Item 4. Controls and Procedures

 

In addition, the Company’s Chief Executive Officer and Principal Accounting Officer have provided new certifications dated as of the date of this filing in connection with this Form 10-Q/A.

 

Except as described above, no other changes have been made to the Company’s Quarterly Report on Form 10-Q ended June 30, 2017 (the “Original Filing”). This Form 10-Q/A speaks as of the date of the Original Filing and does not reflect events that may have occurred after the date of the Original Filing or modify or update any disclosures that may have been affected by subsequent events.

 
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   16,166,796
Trading Symbol PRPH  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2017  
XML 13 R2.htm IDEA: XBRL DOCUMENT v3.10.0.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2017
Dec. 31, 2016
ASSETS    
Cash and cash equivalents (Note 3) $ 37,280 $ 441
Accounts receivable, net (Note 3) 1,835 5,770
Inventory (Note 3) 1,966 2,736
Prepaid expenses and other current assets (Note 3) 849 680
Assets held for sale (Note 4) 294
Total current assets 42,224 9,627
Property, plant and equipment, net of accumulated depreciation of $5,274 and $5,134, respectively (Note 3) 2,875 3,175
Escrow receivable 5,000
Total assets 50,099 12,802
LIABILITIES    
Secured promissory notes, net (Note 5) 1,490
Accounts payable 916 2,156
Accrued advertising and other allowances (Note 3) 1,551 2,805
Other current liabilities 289 389
Due to Mylan, Inc. and affiliates (Note 4) 717
Income taxes payable 751
Total current liabilities 4,224 6,840
COMMITMENTS AND CONTINGENCIES (Note 8)
STOCKHOLDERS' EQUITY    
Preferred stock, authorized 1,000,000, $.0005 par value, no shares issued (Note 6)
Common stock, $.0005 par value; authorized 50,000,000; issued: 26,4454,593 and 26,313,593 shares, respectively (Note 6) 13 13
Additional paid-in-capital 56,567 56,378
Retained earnings (Accumulated deficit) 21,895 (19,687)
Treasury stock, at cost, 10,294,797 and 9,232,817 shares (Note 6) (32,600) (30,742)
Total stockholders' equity 45,875 5,962
Total liabilities and stockholders' equity $ 50,099 $ 12,802
XML 14 R3.htm IDEA: XBRL DOCUMENT v3.10.0.1
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2017
Dec. 31, 2016
Statement of Financial Position [Abstract]    
Accumulated depreciation $ 5,274 $ 5,134
Preferred stock, shares authorized 1,000,000 1,000,000
Preferred stock, par value $ 0.0005 $ 0.0005
Preferred stock, shares issued
Common stock, par value $ 0.0005 $ 0.0005
Common stock, shares authorized 50,000,000 50,000,000
Common stock, shares issued 26,454,593 26,313,593
Treasury stock, shares 10,294,797 9,232,817
XML 15 R4.htm IDEA: XBRL DOCUMENT v3.10.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Income Statement [Abstract]        
Net sales (Note 3) $ 1,905 $ 1,021 $ 2,676 $ 2,037
Cost of sales (Note 3) 1,765 993 2,451 1,723
Gross profit 140 28 225 314
Operating expenses (Note 3):        
Sales and marketing 221 236 336 534
Administration 1,306 943 2,387 2,146
Research and development 224 121 258 160
Total operating expenses 1,751 1,300 2,981 2,840
Other income (expense), net 151 (53) 97 (105)
Loss from continuing operations before income taxes (Note 7) (1,460) (1,325) (2,659) (2,631)
Income tax benefit from continuing operations 574 1,027
Loss from continuing operations (886) (1,325) (1,632) (2,631)
Discontinued operations (Note 4):        
Income (loss) from discontinued operations (835) 198 530 168
Gain on sale of discontinued operations, net of taxes (584) 42,684
Income (loss) from discontinued operations (1,419) 198 43,214 168
Net income (loss) $ (2,305) $ (1,127) $ 41,582 $ (2,463)
Basic earnings (loss) per share:        
Loss from continuing operations $ (0.06) $ (0.08) $ (0.10) $ (0.15)
Income (loss) from discontinued operations (0.08) 0.01 2.54 0.01
Net income (loss) (0.14) (0.07) 2.44 (0.14)
Diluted earnings (loss) per share:        
Loss from continuing operations (0.06) (0.08) (0.10) (0.15)
Income (loss) from discontinued operations (0.08) 0.01 2.44 0.01
Net income (loss) $ (0.14) $ (0.07) $ 2.34 $ (0.14)
Weighted average common shares outstanding:        
Basic 16,943 17,081 17,030 17,081
Diluted 16,943 17,081 17,680 17,081
XML 16 R5.htm IDEA: XBRL DOCUMENT v3.10.0.1
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2017 - USD ($)
$ in Thousands
Common Stock Shares Outstanding, Net of Shares of Treasury Stock [Member]
Additional Paid-In Capital [Member]
Retained Earnings (Accum. Deficit) [Member]
Treasury Stock [Member]
Total
Balance at Dec. 31, 2016 $ 13 $ 56,378 $ (19,687) $ (30,742) $ 5,962
Balance, shares at Dec. 31, 2016 17,080,776        
Net income (as restated) 41,582 41,582
Proceeds from warrants exercised 69 69
Proceeds from warrants exercised, shares 51,000        
Proceeds from options exercised 102 102
Proceeds from options exercised, shares 90,000        
Treasury stock acquired (1,858) (1,858)
Treasury stock acquired, shares (1,061,980)        
Share-based compensation expense 18 18
Tax benefit from exercise of warrants and options 43 43
Tax benefit allowance (43) (43)
Balance at Jun. 30, 2017 $ 13 $ 56,567 $ 21,895 $ (32,600) $ 45,875
Balance, shares at Jun. 30, 2017 16,159,796        
XML 17 R6.htm IDEA: XBRL DOCUMENT v3.10.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Cash flows from operating activities:    
Net income (loss) $ 41,582 $ (2,463)
Adjustments to reconcile net income (loss) to net cash (used in) operating activities:    
Gain on sale of assets, net of taxes (42,684)
Change in valuation allowance, income tax (1,027)
Depreciation and amortization 419 213
Amortization of loan origination and warrant expenses 10 12
Share-based compensation expense 18 1
Changes in operating assets and liabilities:    
Accounts receivable 3,935 2,199
Inventory 770 (18)
Prepaid and other assets (169) 703
Accounts payable (1,240) 382
Accrued advertising and other allowances (1,254) (621)
Due to Mylan, Inc. and affiliates 717
Other current liabilities (1,450) (596)
Assets held for sale, discontinued operations (294)
Net cash used in operating activities (667) (188)
Cash flows from investing activities:    
Net proceeds from the sale of asset 40,825
Capital expenditures (132) (327)
Net cash provided by (used in) investing activities 40,693 (327)
Cash flows from financing activities:    
Payments to retire Notes (1,500)
Payments to acquire treasury stock (1,858)
Proceeds from exercise of warrants and stock options 171
Net cash used in financing activities (3,187)
Net increase (decrease) in cash and cash equivalents 36,839 (515)
Cash and cash equivalents at beginning of period 441 1,664
Cash and cash equivalents at end of period 37,280 1,149
Supplemental disclosures of cash flow information:    
Interest paid 54 95
Income taxes paid 1,350
Non-cash investing activities    
Escrow receivable $ 5,000
XML 18 R7.htm IDEA: XBRL DOCUMENT v3.10.0.1
Organization and Business
6 Months Ended
Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Business

Note 1 – Organization and Business

 

ProPhase Labs, Inc. (“we”, “us” or the “Company”) was initially organized in Nevada in July 1989. Effective June 18, 2015, we changed our state of incorporation from the State of Nevada to the State of Delaware. We are a manufacturer, marketer and distributor of a diversified range of health care and cold remedy products that are offered to the general public. We are also engaged in the research and development of potential over-the-counter (“OTC”) drug and natural base health products including supplements, personal care and cosmeceutical products.

 

Discontinued Operations

 

Prior to March 29, 2017, our flagship OTC drug brand was Cold-EEZE® and our principal product was Cold-EEZE® cold remedy zinc gluconate lozenges, proven in clinical studies to reduce the duration and severity of symptoms of the common cold. In addition to Cold-EEZE® cold remedy lozenges, we also marketed and distributed non-lozenge forms of our proprietary zinc gluconate formulation, (i) Cold-EEZE® cold remedy QuickMelts®, (ii) Cold-EEZE® Gummies and (iii) Cold-EEZE® cold remedy Oral Spray. Each of the Cold-EEZE® QuickMelts® and Gummies products are based on a proprietary zinc gluconate formulation in combination with certain (i) immune system support, (ii) energy, (iii) sleep and relaxation, and/or (iv) cold and flu symptom relieving active ingredients.

 

On January 6, 2017, we signed an asset purchase agreement (as amended, the “Asset Purchase Agreement”), by and among the Company, Meda Consumer Healthcare Inc. (“MCH”) and Mylan Inc. (together with MCH, “Mylan”), for the sale of assets by us to Mylan (see Note 4). The sale of assets (i) was subject to stockholder approval and other customary closing conditions and (ii) consisted principally of the sale of our intellectual property rights and other assets relating to our Cold-EEZE® brand and product line (collectively, referred to herein as the “Cold-EEZE® Business”) to Mylan, including all current and pipeline over-the-counter allergy, cold, flu, multi-symptom relief and immune support treatments for adults and children to the extent each is, or is intended to be, branded “Cold-EEZE®”, and all private label versions thereof, including all formulations and derivatives thereof as set forth in the Asset Purchase Agreement.

 

A special meeting of our stockholders was held on March 29, 2017 (the “Special Meeting”). At the Special Meeting, our stockholders approved the sale of assets and the transactions contemplated by the Asset Purchase Agreement. Effective March 29, 2017, we completed the sale of the Cold-EEZE® Business to Mylan. As a consequence of the sale of the Cold-EEZE® Business, for the three and six months ended June 30, 2017 and 2016, we have classified as discontinued operations (i) the gain from the sale of the Cold-EEZE® Business, (ii) all income and expenses attributable to the Cold-EEZE® Business and (iii) the income tax expense attributed to the sale of the Cold-EEZE® Business (see Notes 4 and 7). Excluded from the sale of the Cold-EEZE® Business were our accounts receivable and inventory, and we also retained all liabilities associated with our Cold-EEZE® Business operations arising prior to March 29, 2017.

 

Continuing Operations

 

We continue to own and operate our manufacturing facility and manufacturing business in Lebanon, Pennsylvania, and our headquarters in Doylestown, Pennsylvania. As part of the sale of the Cold-EEZE® Business, we entered into a manufacturing agreement (see Note 8) with Mylan and our wholly-owned subsidiary, Pharmaloz Manufacturing, Inc. (“PMI”), to supply various Cold-EEZE® lozenge products to Mylan. In addition to the production services we provide to Mylan under the manufacturing agreement, we produce OTC drug and dietary supplement lozenges and other products for other third party customers in addition to performing operational tasks such as warehousing, customer order processing and shipping.

 

We are also pursuing a series of new product development and pre-commercialization initiatives in the OTC dietary supplement category. Initial OTC dietary supplement product development activities were completed in the fourth quarter of Fiscal 2015 under the brand name of TK Supplements®. The TK Supplements® product line comprises three men’s health products: (i) Legendz XL® for sexual health, (ii) Triple Edge XL®, a daily energy booster plus testosterone support, and (iii) Super ProstaFlow PlusTM for prostate and urinary health. We recently completed a broad series of clinical studies which support important product claims which have now been incorporated in our product packaging and marketing communications. In addition to developing direct-to-consumer (“Direct Response”) marketing strategies of Legendz XL®, we received initial product acceptance and shipped into a national chain drug retailer during the second quarter of Fiscal 2017. In addition, we have received initial product acceptance from several regional retailers to begin shipments in the third and fourth quarters of Fiscal 2017.

 

For the three and six months ended June 30, 2017 and 2016, our revenues from continuing operations have come principally from our OTC health care products.

 

We use a December 31 year-end for financial reporting purposes. References herein to “Fiscal 2017” shall mean the fiscal year ended December 31, 2017 and references to other “Fiscal” years shall mean the year, which ended on December 31 of the year indicated. The term “we”, “us” or the “Company” as used herein also refer, where appropriate, to the Company, together with its subsidiaries unless the context otherwise requires.

XML 19 R8.htm IDEA: XBRL DOCUMENT v3.10.0.1
Restatement of Previously Issued Financial Statements
6 Months Ended
Jun. 30, 2017
Accounting Changes and Error Corrections [Abstract]  
Restatement of Previously Issued Financial Statements

Note 2 - Restatement of Previously Issued Financial Statements

 

The Company determined that when calculating its income tax provision related to the gain on sale of discontinued operations, it incorrectly utilized available net operating losses without considering the statutory limitations imposed by the state of Pennsylvania, and that it incorrectly allocated the amount of income tax benefit resulting from the reversal of certain valuation allowances to continuing operations, which resulted in an overstatement of income the tax benefit from continuing operations and an understatement of the gain on sale of discontinued operations, which is presented net of taxes. In the process of this determination, the Company determined that such information existed at June 30, 2017 which affected the income tax benefit/ provision from continuing and discontinued operations reported in the three and six months ended June 30, 2017. The Company concluded that the impact of applying corrections for these errors and misstatements on the consolidated financial statements as of and for the three and six months ended June 30, 2017 is material. As a result, the Company is restating its consolidated financial statements as of and for the three and six months ended June 30, 2017. See below for a reconciliation of the previously reported amounts to the restated amounts.

 

The table below sets forth the condensed consolidated balance sheet, including the balances as originally reported, adjustments and the as restated balances (in thousands):

 

    As of June 30, 2017  
    As originally reported     Adjustments     As restated  
                   
Income taxes payable   $ -     $ 751     $ 751  
Total current liabilities     3,473       751       4,224  
                         
Retained earnings     22,646       (751 )     21,895  
Total stockholders' equity     46,626       (751 )     45,875  
Total liabilities and stockholders' equity   $ 50,099     $ -     $ 50,099  

 

The table below sets for the condensed consolidated statements of operations, including the balances as originally reported, adjustments, and the as restated amounts (in thousands):

    For the three months ended June 30, 2017  
    As originally
reported
    Adjustments     As restated  
                   
Income tax benefit from continuing operations   $ -     $ 574     $ 574  
Loss from continuing operations     (1,460 )     574       (886 )
                         
Gain on sale of discontinued operations, net of taxes     (10 )     (574 )     (584 )
Loss from discontinued operations, net of tax     (845 )     (574 )     (1,419 )
Net loss     (2,305 )     -       (2,305 )
                         
Basic loss per share:                        
Loss from continuing operations   $ (0.09 )   $ 0.03     $ (0.06 )
Loss from discontinued operations     (0.05 )     (0.03 )     (0.08 )
Net loss   $ (0.14 )   $ 0.00     $ (0.14 )
                         
Diluted loss per share:                        
Loss from continuing operations   $ (0.09 )   $ 0.03     $ (0.06 )
Loss from discontinued operations     (0.05 )     (0.03 )     (0.08 )
Net loss   $ (0.14 )   $ 0.00     $ (0.14 )

 

    For the six months ended June 30, 2017  
    As originally
reported
    Adjustments     As restated  
                   
Income tax benefit from continuing operations   $ 18,123     $ (17,096 )   $ 1,027  
Income (loss) from continuing operations     15,464       (17,096 )     (1,632 )
                         
Gain on sale of discontinued operations, net of taxes     26,339       16,345       42,684  
Income from discontinued operations     26,869       16,345       43,214  
Net income     42,333       (751 )     41,582  
                         
Basic earnings (loss) per share:                        
Income (loss) from continuing operations   $ 0.91     $ (1.01 )   $ (0.10 )
Income income from discontinued operations     1.58       0.96       2.54  
Net income   $ 2.49     $ (0.05 )   $ 2.44  
                         
Diluted earnings (loss) per share:                        
Income (loss) from continuing operations   $ 0.87     $ (0.97 )   $ (0.10 )
Income from discontinued operations     1.52       0.92       2.44  
Net income   $ 2.39     $ (0.05 )   $ 2.34  

 

The table below sets forth the condensed consolidated statements of cash flows from operating activities, including the balances as originally reported, adjustments and the as restated balances (in thousands):

 

    For the six months ended June 30, 2017  
    As originally
reported
    Adjustments     As restated  
                   
Net income   $ 42,333     $ (751 )   $ 41,582  
Gain on sale of assets, net of taxes     (26,339 )     (16,345 )     (42,684 )
Change in valuation allowance, income tax     (19,473 )     18,446       (1,027 )
Other current liabilities     (100 )     (1,350 )     (1,450 )
Net cash used in operating activities   $ (667 )   $ -     $ (667 )

 

The restatement had no impact on cash flows from investing activities or financing activities or net increase in cash.

XML 20 R9.htm IDEA: XBRL DOCUMENT v3.10.0.1
Summary of Significant Accounting Policies
6 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

Note 3 – Summary of Significant Accounting Policies

 

Basis of Presentation

 

The unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial statements and within the rules of the Securities and Exchange Commission (“SEC”) applicable to interim financial statements and therefore do not include all disclosures that might normally be required for financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The accompanying unaudited condensed consolidated financial statements have been prepared by management without audit and should be read in conjunction with our consolidated financial statements, including the notes thereto, appearing in our Annual Report on Form 10-K for the year ended December 31, 2016. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial position, consolidated results of operations and consolidated cash flows, for the periods indicated, have been made. The results of operations for the three and six months ended June 30, 2017 are not necessarily indicative of operating results that may be achieved over the course of the full year. Historical financial statements have been reclassified to conform to the current period presentation, principally reflecting the sale of Cold-EEZE® Business as discontinued operations.

 

Discontinued Operations Carve Out and ProPhase Allocations

 

For the three and six months ended June 30, 2017 and 2016, results from operations for our Cold-EEZE® Business are classified as discontinued operations The carve out of the discontinued operations (i) were prepared in accordance with the SEC’s carve out rules under Staff Accounting Bulletin (“SAB”) Topic 1B1 and (ii) are derived from identifying and carving out the specific assets, liabilities, net sales, cost of sales, operating expenses and interest expense associated with the Cold-EEZE® Business’s operations. General administrative and overhead expenses, including personnel expenses and bonuses, and research and development overhead expenses incurred by us (for which the discontinued operation benefits from such resources) are allocated to discontinued operations based upon the percentage of the Cold-EEZE® Business’s net sales to our consolidated net sales. For the three months ended June 30, 2017 and 2016, we allocated (i) zero and $319,000, respectively, of administrative expenses and (ii) zero and $48,000, respectively, of research and development expenses, to discontinued operations in the accompanying condensed statements of operations. For the six months ended June 30, 2017 and 2016, we allocated (i) $348,000 and $656,000, respectively, of administrative expenses and (ii) $52,000 and $95,000, respectively, of research and development expenses, to discontinued operations in the accompanying condensed statements of operations (see Note 4).

 

Seasonality of the Business

 

Our net sales are derived principally from our OTC heath care and cold remedy products sold in the United States of America. Our sales are influenced by and subject to fluctuations in the timing of purchase and the ultimate level of demand for our products which are a function of the timing, length and severity of each cold season. Generally, a cold season is defined as the period of September to March when the incidence of the common cold rises as a consequence of the change in weather and other factors. We generally experience in the first, third and fourth quarter higher levels of net sales. Revenues are generally at their lowest levels in the second quarter when customer demand generally declines.

 

For the three and six months ended June 30, 2017 and 2016, our net sales were principally related to domestic markets.

 

Use of Estimates

 

The preparation of financial statements and the accompanying notes thereto, in conformity with GAAP, requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the respective reporting periods. Examples include the provision for bad debt, sales returns and allowances, inventory obsolescence, useful lives of property and equipment, impairment of property and equipment, income tax valuations and assumptions related to accrued advertising. When providing for the appropriate sales returns, allowances, cash discounts and cooperative incentive promotion costs (“Sales Allowances”), we apply a uniform and consistent method for making certain assumptions for estimating these provisions. These estimates and assumptions are based on historical experience, current trends and other factors that management believes to be relevant at the time the financial statements are prepared. Management reviews the accounting policies, assumptions, estimates and judgments on a quarterly basis. Actual results could differ from those estimates.

 

Cash and Cash Equivalents

 

We consider all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. Cash equivalents include cash on hand and monies invested in money market funds. The carrying amount approximates the fair market value due to the short-term maturity of these investments.

 

Inventory Valuation

 

Inventory is valued at the lower of cost, determined on a first-in, first-out basis (FIFO), or market. Inventory items are analyzed to determine cost and the market value and appropriate valuation adjustments are established. At June 30, 2017 and December 31, 2016, the financial statements include adjustments to reduce inventory for excess or obsolete inventory of $1.7 million and $1.6 million, respectively. The components of inventory are as follows (in thousands):

 

    June 30, 2017     December 31, 2016  
Raw materials   $ 1,590     $ 1,404  
Work in process     342       466  
Finished goods     34       866  
    $ 1,966     $ 2,736  

 

Property, Plant and Equipment

 

Property, plant and equipment are recorded at cost. We use the straight-line method in computing depreciation for financial reporting purposes. Depreciation expense is computed in accordance with the following ranges of estimated asset lives: building and improvements – ten to thirty-nine years; machinery and equipment – three to seven years; computer software – three years; and furniture and fixtures – five years.

 

Concentration of Risks

 

Future revenues, costs, margins and profits will continue to be influenced by our ability to maintain our manufacturing availability and capacity together with our marketing and distribution capabilities and the regulatory requirements associated with the development of OTC and other personal care products in order to compete on a national level and/or international level.

 

Our business is subject to federal and state laws and regulations adopted for the health and safety of users of our products. Our OTC health care products are subject to regulations by various federal, state and local agencies, including the Food and Drug Administration (“FDA”) and, as applicable, the Homeopathic Pharmacopoeia of the United States.

 

Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash investments and trade accounts receivable.

 

We maintain cash and cash equivalents with certain major financial institutions. As of June 30, 2017, our cash balance was $37.3 million and our bank balance was $38.5 million. Of the total bank balance, $342,000 was covered by federal depository insurance and $38.1 million was uninsured at June 30, 2017.

 

Trade accounts receivable potentially subject us to credit concentrations from time-to-time as a consequence of the timing, payment pattern and ultimate purchase volumes or shipping schedules with our customers. We extend credit to our customers based upon an evaluation of the customer’s financial condition and credit history and generally we do not require collateral. Our broad range of customers includes many large national chain, regional, specialty and local retail stores. These credit concentrations may impact our overall exposure to credit risk, either positively or negatively, in that our customers may be similarly affected by changes in economic, regulatory or other conditions that may impact the timing and collectability of amounts due to us. As a consequence of an evaluation of our customer’s financial condition, payment patterns, balance due to us and other factors, we did not offset our account receivable with an allowance for bad debt at June 30, 2017 and December 31, 2016.

 

Long-lived Assets

 

We review our carrying value of our long-lived assets with definite lives whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. When indicators of impairment exist, we determine whether the estimated undiscounted sum of the future cash flows of such assets is less than their carrying amounts. If less, an impairment loss is recognized in the amount, if any, by which the carrying amount of such assets exceeds their respective fair values. The determination of fair value is based on quoted market prices in active markets, if available, or independent appraisals; sales price negotiations; or projected future cash flows discounted at a rate determined by management to be commensurate with our business risk. The estimation of fair value utilizing discounted forecasted cash flows includes significant judgments regarding assumptions of revenue, operating and marketing costs; selling and administrative expenses; interest rates; property and equipment additions and retirements; industry competition; and general economic and business conditions, among other factors.

 

Fair value is based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a three-tier fair value hierarchy prioritizes the inputs used to measure fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.

 

Fair Value of Financial Instruments

 

Cash and cash equivalents, accounts receivable, assets held for sale, accounts payable, accrued expenses and notes payable are reflected in the Condensed Consolidated Financial Statements at carrying value which approximates fair value.

 

Revenue Recognition

 

Sales are recognized at the time ownership is transferred to the customer. Revenue is reduced for trade promotions, estimated sales returns, cash discounts and other allowances in the same period as the related sales are recorded. We make estimates of potential future product returns and other allowances related to current period revenue. We analyze historical returns, current trends, and changes in customer and consumer demand when evaluating the adequacy of the sales returns and other allowances.

 

Our return policy accommodates returns for (i) discontinued products, (ii) store closings and (iii) products that have reached or exceeded their designated expiration date. We do not impose a period of time within which product may be returned. All requests for product returns must be submitted to us for pre-approval. The main components of our returns policy are: (i) we will accept returns that are due to damaged product that is un-saleable and such return request activity falls within an acceptable range, (ii) we will accept returns for products that have reached or exceeded designated expiration dates and (iii) we will accept returns in the event that we discontinue a product provided that the customer will have the right to return only such items that it purchased directly from us. We will not accept return requests pertaining to customer inventory “Overstocking” or “Resets”. We will only accept return requests for product in its intended package configuration. We reserve the right to terminate shipment of product to customers who have made unauthorized deductions contrary to our return policy or pursue other methods of reimbursement. We compensate the customer for authorized returns by means of a credit applied to amounts owed or to be owed and in the case of discontinued product only, also by way of an exchange. We do not have any significant product exchange history.

 

Pursuant to the terms of the Asset Purchase Agreement, we are responsible for and continue to accept product returns of the Cold-EEZE® Business for product shipped prior to March 30, 2017. Additionally, pursuant to the terms of the Asset Purchase Agreement, we allocated and, in June 2017, issued a credit to Mylan in an aggregate of $400,000 for future sales returns and allowances arising from certain product returns that were sold by us prior to March 30, 2017.

 

As of June 30, 2017 and December 31, 2016, we included a provision for sales allowances of zero and $108,000, respectively. Additionally, accrued advertising and other allowances as of June 30, 2017 included (i) $934,000 for estimated future sales returns and (ii) $598,000 for cooperative incentive promotion costs. As of December 31, 2016, accrued advertising and other allowances included (i) $1.2 million for estimated future sales returns and (ii) $1.5 million for cooperative incentive promotion costs.

 

Advertising and Incentive Promotions

 

Advertising and incentive promotion costs are expensed within the period in which they are utilized. Advertising and incentive promotion expense is comprised of (i) media advertising, presented as part of sales and marketing expense, (ii) cooperative incentive promotions and coupon program expenses, which are accounted for as part of net sales, and (iii) free product, which is accounted for as part of cost of sales. Advertising and incentive promotion expenses incurred (i) from continuing operations for the three months ended June 30, 2017 and 2016 were $21,000 and $139,000, respectively, and (ii) attributed to and classified as discontinued operations were $205,000 and $471,000, respectively. Advertising and incentive promotion expenses incurred (i) from continuing operations for the six months ended June 30, 2017 and 2016 were $53,000 and $339,000 , respectively, and (ii) attributed to and classified as discontinued operations were $2.8 million and $3.3 million, respectively. Included in prepaid expenses and other current assets was $17,000 and $263,000 at June 30, 2017 and December 31, 2016, respectively, relating to prepaid advertising and promotion expenses.

 

Shipping and Handling

 

Product sales may carry shipping and handling charges to the purchaser, included as part of the invoiced price, which is classified as revenue. In all cases, costs related to this revenue are recorded in cost of sales.

 

Stock-Based Compensation

 

We recognize all share-based payments to employees and directors, including grants of stock options, as compensation expense in the financial statements based on their fair values. Fair values of stock options are determined through the use of the Black-Scholes option pricing model. The compensation cost is recognized as an expense over the requisite service period of the award, which usually coincides with the vesting period.

 

Stock and stock options for the purchase of our common stock, $0.0005 par value (“Common Stock”), have been granted to both employees and non-employees pursuant to the terms of certain agreements and stock option plans (see Note 6). Stock options are exercisable during a period determined by us, but in no event later than ten years from the date granted. For the three and six months ended June 30, 2017 and 2016, we charged to operations $18,000 and $1,000, respectively, for share-based compensation expense for the aggregate fair value of stock grants issued and vested stock options earned.

 

Research and Development

 

Research and development costs are charged to operations in the period incurred. Research and development costs incurred for the three months ended June 30, 2017 and 2016 (i) from continuing operations were $224,000 and $121,000, respectively, and (ii) attributed to and classified as discontinued operations of zero and $48,000, respectively. Research and development costs incurred for the six months ended June 30, 2017 and 2016 (i) from continuing operations were $258,000 and $160,000, respectively, and (ii) attributed to and classified as discontinued operations of $52,000 and $95,000, respectively. Research and development costs are principally related to personnel expenses and new product development initiatives and costs associated with our OTC health care products.

 

Income Taxes

 

We utilize the asset and liability approach which requires the recognition of deferred tax assets and liabilities for the future tax consequences of events that have been recognized in our financial statements or tax returns. In estimating future tax consequences, we generally consider all expected future events other than enactments of changes in the tax law or rates. Until we have sufficient taxable income to offset the temporary timing differences attributable to operations and the tax deductions attributable to option, warrant and stock activities are assured, a full valuation allowance equaling the total deferred tax asset is being provided (see Notes 4 and 7).

 

We utilize a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than fifty percent likely of being realized upon ultimate settlement. Any interest or penalties related to income taxes will be recorded as interest or administrative expense, respectively.

 

As a result of our continuing tax losses, we have recorded a full valuation allowance against a net deferred tax asset. Additionally, we have not recorded a liability for unrecognized tax benefits.

 

Recently Issued Accounting Standards

 

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”, on revenue recognition. The new standard provides for a single five-step model to be applied to all revenue contracts with customers as well as requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This ASU, as amended, is effective for fiscal years and interim periods within those years beginning after December 15, 2017. We are currently assessing the impact of this update, but preliminarily believe that its adoption will not have a material impact on our consolidated financial statements.

 

In February 2016, the FASB issued ASU No. 2016-02 “Leases”. The new standard will require most leases to be recognized on the balance sheet which will increase reported assets and liabilities. Lessor accounting remains substantially similar to current guidance. The new standard is effective for annual and interim periods in fiscal years beginning after December 15, 2018, which for us is the first quarter of fiscal 2019 and mandates a modified retrospective transition method. We do not intend to early adopt and are currently assessing the impact of this update, but preliminarily believe that its adoption will not have a material impact on our consolidated financial statements.

 

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses.” The standard modifies the impairment model for most financial assets, including trade accounts receivables and loans, and will require the use of an “expected loss” model for instruments measured at amortized cost. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The effective date of the standard is for fiscal years beginning after December 15, 2019 with early adoption permitted. We are currently evaluating the impact of adoption of this update on our consolidated financial statements.

 

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments”. The new standard attempts to reduce diversity in practice in how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU No. 2016-15 provides guidance on eight specific cash flow issues. The new guidance will be effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted including adoption in an interim period. We do not intend to early adopt and we are currently assessing the impact of adoption of this update will have on our consolidated financial statements.

 

In October 2016, the FASB issued ASU No. 2016-16, “Income Taxes: Intra-Entity Transfers of Assets Other than Inventory”. The new standard requires entities should recognize the income tax consequences of an asset other than inventory when the asset transfer occurs. The new guidance will be effective for fiscal years beginning after December 15, 2017 and requires a modified retrospective adoption through a cumulative effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are currently evaluating the impact of adoption of this update on our consolidated financial statements.

XML 21 R10.htm IDEA: XBRL DOCUMENT v3.10.0.1
Discontinued Operations, Sale of the Cold-EEZE® Business
6 Months Ended
Jun. 30, 2017
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations, Sale of the Cold-EEZE® Business

Note 4 – Discontinued Operations, Sale of the Cold-EEZE® Business

 

At the Special Meeting held on March 29, 2017, our stockholders approved the sale of the Cold-EEZE® Business and the transactions contemplated by the Asset Purchase Agreement. Effective March 29, 2017, we completed the sale of the Cold-EEZE® Business to Mylan.

 

As a consequence of the sale of the Cold-EEZE® Business, for the three and six months ended June 30, 2017 and 2016, we have classified as discontinued operations (i) the gain from the sale of the Cold-EEZE® Business, (ii) all gains and losses attributable to the Cold-EEZE® Business operations and (iii) the income tax expense attributed to the sale of the Cold-EEZE® Business (see Note 7). Excluded from the sale of the Cold-EEZE® Business were our accounts receivable and inventory, and we also retained all liabilities associated with our Cold-EEZE® Business operations arising prior to March 29, 2017.

 

Pursuant to the Asset Purchase Agreement, we also agreed to a one-time sale to Mylan of certain non-lozenge-based Cold-EEZE® inventory. At June 30, 2017, we classified as assets held for sale approximately $294,000 of such inventory, which approximates our cost. At December 31, 2016, the balance sheet impact of discontinued operations was deemed not material, as such, no reclassifications for discontinued operations have been presented.

 

Pursuant to the Asset Purchase Agreement, we entered into a 90 day transition service arrangement with Mylan, for which we earned $150,000 in transition service fees through June 30, 2017. Pursuant to this arrangement, we (i) received, processed, fulfilled, and shipped customer orders, and billed such customers for these shipments on behalf of Mylan from March 30, 2017 to June 30, 2017, (ii) processed certain sales allowances, returns and other customer promotional deductions, and (iii) paid certain Cold-EEZE® Business expenses which are to be reimbursed by Mylan. At June 30, 2017, we have a balance due to Mylan of $717,000 which is comprised of (i) net billings to Mylan’s customers for product shipments, less sales and other allowances, of $1.8 million (ii) return allocation of $400,000 for future sales returns and allowances (see Note 3), offset by (ii1) $1.4 million for product shipments and transition service fee due from Mylan and (iv) $106,000 for the reimbursement of certain Cold-EEZE® Business expenses we paid on behalf of Mylan. For the three and six months ended June 30, 2017, the $150,000 transition service fees earned are recorded as a component of other income (expense).

 

The net proceeds received from the sale of the Cold-EEZE® Business were as follows (in thousands):

 

   

Amount

(as restated)

 
Gross consideration from the sale of the Cold-EEZE® Business   $ 50,000  
Closing and transaction costs     (4,175 )
Net proceeds from sale of the Cold-EEZE® Business     45,825  
Book value of assets sold     (13 )
Gain on sale of the Cold-EEZE® Business before income taxes     45,812  
Income tax expense     (3,128 )
Gain on sale of the Cold-EEZE® Business after income taxes   $ 42,684  
         
Net proceeds:        
Cash paid at closing, net of closing and transaction costs   $ 43,145  
Proceeds due on sale of assets, cash held in escrow     5,000  
    $ 48,145  

 

For the three and six months ended June 30, 2017, we incurred $10,000 and $4.2 million in closing and transaction costs associated with the sale of the Cold-EEZE® Business which were comprised of (i) transaction fees and related closing costs of $1.9 million and (ii) performance bonuses, contract termination compensation and severance payments to certain employees associated with the sale of the Cold-EEZE® Business of $2.3 million. The compensation committee of our board of directors approved these compensation arrangements. These compensation and termination payments were paid by us in April 2017.

 

The following table sets forth the condensed operating results of our discontinued operations for the three and six months ended June 30, 2017 and 2016, respectively, (in thousands):

 

    Three Months Ended June 30,     Six Months Ended June 30,  
    2017     2016     2017     2016  
Net sales   $ (371 )   $ 1,826     $ 4,687     $ 6,179  
Cost of sales     264       728       2,037       2,427  
Sales and marketing     200       533       1,720       2,833  
Administration     -       319       348       656  
Research and development     -       48       52       95  
Income (loss) from discontinued operations   $ (835 )   $ 198     $ 530     $ 168  

XML 22 R11.htm IDEA: XBRL DOCUMENT v3.10.0.1
Secured Promissory Notes and Other Obligations
6 Months Ended
Jun. 30, 2017
Debt Disclosure [Abstract]  
Secured Promissory Notes and Other Obligations

Note 5 – Secured Promissory Notes and Other Obligations

 

Secured Promissory Notes

 

On December 11, 2015, we executed two Subscription Agreements (the “Subscription Agreements”) with the investors named therein (the “Investors”) providing for the purchase of 12% Secured Promissory Notes – Series A (“Notes”) in the aggregate principal amount of up to $3.0 million and warrants to purchase shares of our Common Stock (the “Warrants”).

 

Notes in the amount of $1.5 million and 51,000 Warrants, at an exercise price of $1.35 per share, which was equal to the closing price of our Common Stock on the date of investment, were issued by the Company and its wholly-owned subsidiaries, PMI and Quigley Pharma, Inc. (collectively, the “Obligors”), and funded on December 11, 2015. We incurred loan origination costs of $22,000 which were recorded as a reduction of the Notes and the origination costs are charged to other income (expense) over the term of the loan. The Warrants had an exercise term equal to three years and were exercisable commencing on the date of issuance. The fair value of the Warrants at the date of grant was $14,000 which is recorded as a reduction of the Notes and is charged to other income (expense) over the term of the loan.

 

The Notes bore interest at the rate of 12% per annum, payable semi-annually and the principal is due and payable on June 15, 2017. The Notes could be pre-paid at any time prior to maturity without penalty. The effective interest, inclusive of the Warrant and loan origination costs, was 14.3% per annum. For the six months ended June 30, 2017 and 2016, we charged to other income (expense) $54,000 and $105,000, respectively, in connection with the Notes.

 

On March 29, 2017, in connection with the sale of the Cold-EEZE® Business, we paid in full the remaining principal and accrued interest, in the total amount of $1,553,000, due under the Notes. Of the $1,553,000 paid to the Investors, $69,000 was netted against the aggregate exercise price of the Warrants, which were simultaneously being exercised by the Investors.

 

In connection with the issuance of the Notes, the Company entered into a security agreement with John E. Ligums, Jr., as collateral agent for the Investors (the “Security Agreement”) to secure the timely payment and performance in full of the Company’s obligations under the Notes. Under the Security Agreement, we granted to the collateral agent, for the benefit of the Investors a lien upon and security interest in the property and assets listed as collateral in the Security Agreement, including without limitation, all of our personal property, inventory, equipment, general intangibles, cash and cash equivalents, and proceeds. In connection with the payoff of the Notes, the Security Agreement was terminated.

XML 23 R12.htm IDEA: XBRL DOCUMENT v3.10.0.1
Transactions Affecting Stockholders' Equity
6 Months Ended
Jun. 30, 2017
Equity [Abstract]  
Transactions Affecting Stockholders' Equity

Note 6 – Transactions Affecting Stockholders’ Equity

 

Our authorized capital stock consists of 50 million shares of Common Stock and 1 million shares of preferred stock, $.0005 par value (“Preferred Stock”).

 

Preferred Stock

 

On June 16, 2015, our stockholders approved the change to our state of incorporation from the State of Nevada to the State of Delaware pursuant to a plan of conversion (the “Conversion Plan”) and the filing of a certificate of incorporation in the State of Delaware. The Preferred Stock authorized under our certificate of incorporation may be issued from time to time in one or more series. As of June 30, 2017, no shares of Preferred Stock have been issued. Our board of directors has the full authority permitted by law to establish, without further stockholder approval, one or more series of Preferred Stock and the number of shares constituting each such series and to fix by resolution, voting powers, preferences and relative, participating, optional and other special rights of each series of Preferred Stock, and the qualifications, limitations or restrictions thereof, if any. Subject to the limitation on the total number of shares of Preferred Stock that we have authority to issue under our certificate of incorporation, the board of directors is also authorized to increase or decrease the number of shares of any series, subsequent to the issue of that series, but not below the number of shares of such series then-outstanding. In case the number of shares of any series is so decreased, the shares constituting such decrease will resume the status that they had prior to the adoption of the resolution originally fixing the number of shares of such series. We may amend from time to time our certificate of incorporation and bylaws to increase the number of authorized shares of Preferred Stock or Common Stock or to make other changes or additions to our capital structure or the terms of our capital stock.

 

Stockholder Rights Plan

 

On September 8, 1998, our Board of Directors declared a dividend distribution of Common Stock Purchase Rights (each individually, a “Right” and collectively, the “Rights”) payable to our stockholders of record on September 25, 1998, thereby creating a Stockholder Rights Plan (the “Rights Agreement”). The Plan was subsequently amended effective each of (i) May 23, 2008, (ii) August 18, 2009, (iii) June 18, 2014 and (iv) January 6, 2017. The Rights Agreement, as amended and restated, provides that each Right entitles the stockholder of record to purchase from the Company that number of shares of Common Stock having a combined market value equal to two times the Rights exercise price of $45. The Rights are not exercisable until the distribution date, which will be the earlier of a public announcement that a person or group of affiliated or associated persons has acquired 15% or more of the outstanding shares of Common Stock, or the announcement of an intention by a similarly constituted party to make a tender or exchange offer resulting in the ownership of 15% or more of the outstanding shares of Common Stock (such person, the “acquirer”). The Rights Agreement allows for an exemption for Ted Karkus, the Company’s Chairman and Chief Executive Officer, to acquire up to 20% of our Common Stock without our Board of Directors declaring a dividend distribution.

 

The dividend has the effect of diluting the acquirer by giving our other stockholders a 50% discount on our Common Stock’s current market value for exercising the Rights. In the event of a cashless exercise of the Right and the acquirer has acquired less than 50% beneficial ownership of the Company, a stockholder may exchange one Right for one share of Common Stock of the Company. The Rights Agreement, as amended, includes a provision pursuant to which our Board of Directors may exempt from the provisions of the Rights Agreement an offer for all outstanding shares of our Common Stock that the directors determine to be fair and not inadequate and to otherwise be in the best interests of the Company and its stockholders, after receiving advice from one or more investment banking firms. The expiration date of the Rights Agreement, as amended, is June 18, 2024.

 

Equity Line of Credit

 

On July 30, 2015, we entered into a new equity line of credit agreement (such arrangement, the “2015 Equity Line”) with Dutchess Opportunity Fund II, LP (“Dutchess”). Pursuant to the 2015 Equity Line, Dutchess committed to purchase, subject to certain restrictions and conditions, up to 3,200,000 shares of our Common Stock, over a period of 36 months from the effectiveness of the registration statement registering the resale of shares purchased by Dutchess pursuant to the Investment Agreement.

 

We may, at our discretion, draw on the 2015 Equity Line from time to time, as and when we determine appropriate in accordance with the terms and conditions of the 2015 Equity Line. The maximum number of shares that we are entitled to put to Dutchess in any one draw down notice shall not exceed 500,000 shares with a purchase price calculated in accordance with the terms of the 2015 Equity Line. We may deliver a notice for a subsequent put from time to time, following the one day pricing period for the prior put.

 

The purchase price shall be set at ninety-five percent (95%) of the volume weighted average price (VWAP) of the Common Stock during the one trading day immediately following our put notice. We have the right to withdraw all or any portion of any put, except that portion of the put that has already been sold to a third party, including any portion of a put that is below the minimum acceptable price set forth on the put notice, before the closing. In the event Dutchess receives more than a five percent (5%) return on the net sales for a specific put, Dutchess must remit such excess proceeds to us; however, in the event Dutchess receives less than a five percent (5%) return on the net sales for a specific put, Dutchess will have the right to deduct from the proceeds of the put amount on the applicable closing date so Dutchess’s return will equal five percent (5%).

 

There are put restrictions applied on days between the draw down notice date and the closing date with respect to that particular put. During such time, we are entitled to deliver another draw down notice. In addition, Dutchess will not be obligated to purchase shares if Dutchess’ total number of shares beneficially held at that time would exceed 4.99% of the number of shares of Common Stock as determined in accordance with Rule 13d-1(j) of the Securities Exchange Act of 1934, as amended. In addition, we are not permitted to draw on the facility unless there is an effective registration statement to cover the resale of the shares.

 

Pursuant to the terms of the 2015 Equity Line, we are obligated to file one or more registration statements with the SEC to register the resale by Dutchess of the shares of Common Stock issued or issuable under the 2015 Equity Line. In addition, we are obligated to use all commercially reasonable efforts to have the registration statement declared effective by the SEC within 90 days after the registration statement is filed. On August 4, 2015, we filed a registration statement for the underlying shares of the 2015 Equity Line with the SEC and the registration statement was declared effective by the SEC on August 21, 2015.

 

At June 30, 2017, we have 2,450,000 shares of our Common Stock available for sale, at our discretion, under the terms of our 2015 Equity Line and covered pursuant to an effective registration statement.

 

The 2010 Equity Compensation Plan

 

On May 5, 2010, our stockholders approved the 2010 Equity Compensation Plan which was subsequently amended, restated and approved by our stockholders on April 24, 2011, and further amended and approved by stockholders on May 6, 2013, and further amended and approved by stockholders on May 24, 2016 (the “2010 Plan”). The 2010 Plan provides that the total number of shares of Common Stock that may be issued under the 2010 Plan is equal to 3.2 million shares, including 900,000 shares that are authorized for issuance but unissued under a 1997 incentive stock option plan and 700,000 shares added to the 2010 Plan effective May 24, 2016.

 

For the six month ended June 30, 2017 and 2016, we granted, 600,000 options, exercisable at $2.00 per share and subject to vesting over a four year term, and zero options, respectively, to employees to acquire our Common Stock pursuant to the terms of 2010 Plan. The assumptions used in determining the fair value of the 600,000 stock options granted in Fiscal 2017 were (i) expected option life of 4.5 years, (ii) weighted average risk rate of 1.81%, (iii) dividend yield of 0% and (iv) expected volatility of 44.51%.

 

For the six months ended June 30, 2017, 90,000 stock options were exercised pursuant to the 2010 Plan and we derived net proceeds of $102,000. For the six months ended June 30, 2016, there were no stock options exercised. At June 30, 2017, there were 2,209,000 options outstanding under the 2010 Plan and 133,659 options available to be issued pursuant to the terms of the 2010 Plan.

 

The 2010 Directors’ Equity Compensation Plan

 

On May 5, 2010, our stockholders approved the 2010 Directors’ Equity Compensation Plan, which was subsequently amended and approved by stockholders on May 6, 2013. A primary purpose of the 2010 Directors’ Equity Compensation Plan is to provide us with the ability to pay all or a portion of the fees of directors in restricted stock instead of cash. The 2010 Directors’ Equity Compensation Plan provides that the total number of shares of Common Stock that may be issued under the 2010 Directors’ Equity Compensation Plan is equal to 425,000. For the six months ended June 30, 2017 and 2016, no shares were granted to our directors. At June 30, 2017, there were 147,808 shares of Common Stock that may be issued pursuant to the terms of the 2010 Directors’ Equity Compensation Plan.

 

Treasury Stock Purchase Agreement

 

On June 12, 2017 we entered into a Stock Purchase Agreement with each of Mark S. Leventhal, a former director of the Company, and certain other persons and entities associated and/or affiliated with Mr. Leventhal (the “Leventhal Holders”), pursuant to which we purchased all 1,061,980 shares of our Common Stock then held by the Leventhal Holders, representing an approximate 6.2% aggregate ownership interest (based on 17,221,776 shares of common stock outstanding as of June 12, 2017). Upon consummation of the transactions, the Leventhal Holders ceased to hold any direct or indirect ownership interest in the Company.

 

Pursuant to the terms of the Stock Purchase Agreements, the total consideration paid by us to the Leventhal Holders for their shares was $1,858,465, which amount was equal to the product of (i) $1.75 multiplied by (ii) the number of shares purchased.

XML 24 R13.htm IDEA: XBRL DOCUMENT v3.10.0.1
Income Taxes
6 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]  
Income Taxes

Note 7 – Income Taxes

 

At December 31, 2016, there were $47.1 million in net operating loss carryforwards, subject to applicable limitations, available to us for federal purposes which will expire beginning for the year ended December 31, 2020 through 2036. Additionally, there were $22.1 million in net operating loss carryforwards, subject to limitations, available to us for state purposes which will expire beginning for the year ended December 31, 2020 through 2036.

 

We believe that a significant portion of our income tax liability arising from our taxable gain for federal and state income tax purposes from the sale of the Cold-EEZE® Business will be offset to the extent of our current year losses from operations, the write-off for tax purposes of the tax-basis of the Cold-EEZE® Business and the available net operating loss carryforwards at the federal and state levels. However, for state income tax purposes, based upon the available state net operating loss carryforwards and corresponding limitations, we estimate a net income tax expense arising from the sale of the Cold-EEZE® Business of $2.1 million.

 

Utilization of net operating loss carryforwards may be subject to limitations as set forth in Section 382 of the Internal Revenue Code (“Section 382”). Based on our preliminary Section 382 analysis, we do not believe that our current net operating loss carryforwards are subject to these limitations as of June 30, 2017. However, until we complete a final Section 382 analysis upon filing of our 2017 income tax return, there can be no assurances that our preliminary analysis is accurate or complete. Should we identify any limitations upon the completion of our final Section 382 analysis, the impact could be material to our consolidated financial statements and that we could incur additional income tax expense arising from the sale of the Cold-EEZE® Business.

 

For the six months ended June 30, 2017, we charged to discontinued operations $3.1 million for estimated federal and state income taxes arising from the sale of the Cold-EEZE® Business and we have realized an income tax benefit from continuing operations of $1.0 million as a consequence of the utilization of the federal and state net operating losses.

 

Subsequent to the income tax effects arising from the sale of the Cold-EEZE® Business, we will continue to have net operating loss carry-forwards for federal income tax purposes. Until sufficient taxable income to offset the temporary timing differences attributable to operations, and the tax deductions attributable to option, warrant and stock activities are assured, a valuation allowance equaling the total deferred tax asset is being provided. As a consequence of the accumulated losses of the Company, we believe that this allowance is required due to the uncertainty of realizing these tax benefits in the future.

XML 25 R14.htm IDEA: XBRL DOCUMENT v3.10.0.1
Commitments and Contingencies
6 Months Ended
Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 8– Commitments and Contingencies

 

Escrow Receivable

 

We have indemnification obligations to Mylan under the Asset Purchase Agreement that may require us to make future payments to Mylan and other related persons for any damages incurred by Mylan or such related persons as a result of any breaches of our representations, warranties, covenants or agreements contained in the Asset Purchase Agreement, or arising from the Retained Liabilities (as such term is defined in the Asset Purchase Agreement) or certain third party claims specified in the Asset Purchase Agreement. Generally, our representations and warranties survive for a period of 24 months from the closing date, other than certain fundamental representations which survive until the expiration of the applicable statute of limitations. There is a limited indemnification cap with respect to a majority of the Company’s indemnification obligations under the Asset Purchase Agreement with the exception of claims for actual fraud, the breach of any fundamental representations and certain other items, which have a larger indemnification cap (e.g., the purchase price).

 

Pursuant to the terms of the Asset Purchase Agreement, we, Mylan, and an escrow agent entered into an Escrow Agreement at closing, pursuant to which Mylan deposited $5 million of the aggregate purchase price for the Cold-EEZE®Business into an escrow account established with the Escrow Agent in order to satisfy, in whole or in part, certain of our indemnity obligations under the Asset Purchase Agreement. If, on the 18th month anniversary of the closing date, there are funds remaining in the escrow account, then the escrow account will be reduced by the difference, if a positive number, of (i) $2.5 million minus (ii) the aggregate amount of all escrow claims asserted by Mylan prior to this date that have either been paid out of the escrow account or are pending as of such date, and, within two business days of such date, the Escrow Agent will disburse such difference, if a positive number, to us. Within two business days of the second anniversary of the closing date, the Escrow Agent will release any funds remaining in the escrow account to us minus any amounts being reserved for escrow claims asserted by Mylan prior to such date. Upon the resolution of any pending escrow claims, the Escrow Agent will, within two business days of receipt of joint instructions or a final order from a court (as described in the Escrow Agreement) disburse such reserved amount to the parties entitled to such funds.

 

Management does not believe that we will be subject to indemnity claims contemplated by the Asset Purchase Agreement. However, in the event that such a claim is made, and if successful, we would be required to pay Mylan pursuant to the indemnification provisions of the Asset Purchase Agreement which may reduce the amount we ultimately collect from escrow or could even require us to return a portion of the net proceeds received from the sale of the Cold-EEZE® Division.

 

Manufacturing Agreement

 

In connection with the Asset Purchase Agreement, the Company and its wholly-owned subsidiary, PMI, entered into a Manufacturing Agreement (the “Manufacturing Agreement”) with Mylan. Pursuant to the terms of the Manufacturing Agreement, Mylan (or an affiliate or designee) will purchase the inventory of the Company’s Cold-EEZE® brand and product line and PMI will manufacture certain products for Mylan, as described in the Manufacturing Agreement, at prices that reflect current market conditions for such products and include an agreed upon mark-up on our costs. Unless terminated sooner by the parties, the Manufacturing Agreement will remain in effect until March 29, 2022. Thereafter, the Manufacturing Agreement may be renewed by Mylan for up to five successive one year periods by providing notice of its intent to renew not less than 90 days prior to the expiration of the then-current term.

 

Transition Services Agreement

 

In connection with the Asset Purchase Agreement, we entered into a transition services agreement with Mylan to provide litigation support, insurance coverage, supply chain, customer support, finance, accounting, commercial advertising and packaging services, quality control, IT and research and development services to Mylan for time periods ranging from two to nine months from the closing date. We will continue to incur certain operating costs during the transition period to support Mylan.

 

Future Obligations:

 

We have estimated future minimum obligations over the next five years, including the remainder of Fiscal 2017, as follows (in thousands):

 

Fiscal year   Employment 
Contracts
 
2017     338  
2018     675  
2019     -  
2020     -  
2021     -  
Total   $ 1,013  

XML 26 R15.htm IDEA: XBRL DOCUMENT v3.10.0.1
Earnings (Loss) Per Share
6 Months Ended
Jun. 30, 2017
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share

Note 9 – Earnings (Loss) Per Share

 

Basic earnings (loss) per share for continuing and discontinued operations are computed by dividing respective net income or loss attributable to common stockholders by the weighted-average number of shares of our Common Stock outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue Common Stock were exercised or converted into Common Stock or resulted in the issuance of Common Stock that shared in the earnings of the entity. Diluted earnings (loss) per share also utilize the treasury stock method which prescribes a theoretical buy-back of shares from the theoretical proceeds of all options and warrants outstanding during the period. Options and warrants outstanding to acquire shares of our Common Stock at June 30, 2017 and 2016 were 2,209,000 and 1,706,500, respectively.

 

For the three months ended June 30, 2017 and June 30, 2016 dilutive earnings (loss) per share is the same as basic earnings per share due to (i) the inclusion of Common Stock, in the form of stock options and warrants (“Common Stock Equivalents”), would have an anti-dilutive effect on the loss per share or (ii) there were no Common Stock Equivalents for the respective period. For the three months ended June 30, 2017 and 2016 there were 641,754 and 276,165, Common Stock Equivalents which were in the money, that were excluded from the earnings (loss) per share computation as a consequence of their anti-dilutive effect.

 

For the six months ended June 30, 2017 there were 650,190 Common Stock Equivalents which were in the money, that were included in the fully diluted earnings per share computation. For the six months ended June 30, 2016, for continuing operations dilutive earnings (loss) per share is the same as basic earnings per share due to (i) the inclusion of Common Stock, in the form of stock options and warrants (“Common Stock Equivalents”), would have an anti-dilutive effect on the loss per share or (ii) there were no Common Stock Equivalents for the respective period. For the six months ended June 30, 2016, there were 244,112, Common Stock Equivalents which were in the money, that were excluded from the earnings (loss) per share computation as a consequence of their anti-dilutive effect.

XML 27 R16.htm IDEA: XBRL DOCUMENT v3.10.0.1
Summary of Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

 

The unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial statements and within the rules of the Securities and Exchange Commission (“SEC”) applicable to interim financial statements and therefore do not include all disclosures that might normally be required for financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The accompanying unaudited condensed consolidated financial statements have been prepared by management without audit and should be read in conjunction with our consolidated financial statements, including the notes thereto, appearing in our Annual Report on Form 10-K for the year ended December 31, 2016. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial position, consolidated results of operations and consolidated cash flows, for the periods indicated, have been made. The results of operations for the three and six months ended June 30, 2017 are not necessarily indicative of operating results that may be achieved over the course of the full year. Historical financial statements have been reclassified to conform to the current period presentation, principally reflecting the sale of Cold-EEZE® Business as discontinued operations.

Discontinued Operations Carve Out and ProPhase Allocations

Discontinued Operations Carve Out and ProPhase Allocations

 

For the three and six months ended June 30, 2017 and 2016, results from operations for our Cold-EEZE® Business are classified as discontinued operations The carve out of the discontinued operations (i) were prepared in accordance with the SEC’s carve out rules under Staff Accounting Bulletin (“SAB”) Topic 1B1 and (ii) are derived from identifying and carving out the specific assets, liabilities, net sales, cost of sales, operating expenses and interest expense associated with the Cold-EEZE® Business’s operations. General administrative and overhead expenses, including personnel expenses and bonuses, and research and development overhead expenses incurred by us (for which the discontinued operation benefits from such resources) are allocated to discontinued operations based upon the percentage of the Cold-EEZE® Business’s net sales to our consolidated net sales. For the three months ended June 30, 2017 and 2016, we allocated (i) zero and $319,000, respectively, of administrative expenses and (ii) zero and $48,000, respectively, of research and development expenses, to discontinued operations in the accompanying condensed statements of operations. For the six months ended June 30, 2017 and 2016, we allocated (i) $348,000 and $656,000, respectively, of administrative expenses and (ii) $52,000 and $95,000, respectively, of research and development expenses, to discontinued operations in the accompanying condensed statements of operations (see Note 4).

Seasonality of the Business

Seasonality of the Business

 

Our net sales are derived principally from our OTC heath care and cold remedy products sold in the United States of America. Our sales are influenced by and subject to fluctuations in the timing of purchase and the ultimate level of demand for our products which are a function of the timing, length and severity of each cold season. Generally, a cold season is defined as the period of September to March when the incidence of the common cold rises as a consequence of the change in weather and other factors. We generally experience in the first, third and fourth quarter higher levels of net sales. Revenues are generally at their lowest levels in the second quarter when customer demand generally declines.

 

For the three and six months ended June 30, 2017 and 2016, our net sales were principally related to domestic markets.

Use of Estimates

Use of Estimates

 

The preparation of financial statements and the accompanying notes thereto, in conformity with GAAP, requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the respective reporting periods. Examples include the provision for bad debt, sales returns and allowances, inventory obsolescence, useful lives of property and equipment, impairment of property and equipment, income tax valuations and assumptions related to accrued advertising. When providing for the appropriate sales returns, allowances, cash discounts and cooperative incentive promotion costs (“Sales Allowances”), we apply a uniform and consistent method for making certain assumptions for estimating these provisions. These estimates and assumptions are based on historical experience, current trends and other factors that management believes to be relevant at the time the financial statements are prepared. Management reviews the accounting policies, assumptions, estimates and judgments on a quarterly basis. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and Cash Equivalents

 

We consider all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. Cash equivalents include cash on hand and monies invested in money market funds. The carrying amount approximates the fair market value due to the short-term maturity of these investments.

Inventory Valuation

Inventory Valuation

 

Inventory is valued at the lower of cost, determined on a first-in, first-out basis (FIFO), or market. Inventory items are analyzed to determine cost and the market value and appropriate valuation adjustments are established. At June 30, 2017 and December 31, 2016, the financial statements include adjustments to reduce inventory for excess or obsolete inventory of $1.7 million and $1.6 million, respectively. The components of inventory are as follows (in thousands):

 

    June 30, 2017     December 31, 2016  
Raw materials   $ 1,590     $ 1,404  
Work in process     342       466  
Finished goods     34       866  
    $ 1,966     $ 2,736  

Property, Plant and Equipment

Property, Plant and Equipment

 

Property, plant and equipment are recorded at cost. We use the straight-line method in computing depreciation for financial reporting purposes. Depreciation expense is computed in accordance with the following ranges of estimated asset lives: building and improvements – ten to thirty-nine years; machinery and equipment – three to seven years; computer software – three years; and furniture and fixtures – five years.

Concentration of Risks

Concentration of Risks

 

Future revenues, costs, margins and profits will continue to be influenced by our ability to maintain our manufacturing availability and capacity together with our marketing and distribution capabilities and the regulatory requirements associated with the development of OTC and other personal care products in order to compete on a national level and/or international level.

 

Our business is subject to federal and state laws and regulations adopted for the health and safety of users of our products. Our OTC health care products are subject to regulations by various federal, state and local agencies, including the Food and Drug Administration (“FDA”) and, as applicable, the Homeopathic Pharmacopoeia of the United States.

 

Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash investments and trade accounts receivable.

 

We maintain cash and cash equivalents with certain major financial institutions. As of June 30, 2017, our cash balance was $37.3 million and our bank balance was $38.5 million. Of the total bank balance, $342,000 was covered by federal depository insurance and $38.1 million was uninsured at June 30, 2017.

 

Trade accounts receivable potentially subject us to credit concentrations from time-to-time as a consequence of the timing, payment pattern and ultimate purchase volumes or shipping schedules with our customers. We extend credit to our customers based upon an evaluation of the customer’s financial condition and credit history and generally we do not require collateral. Our broad range of customers includes many large national chain, regional, specialty and local retail stores. These credit concentrations may impact our overall exposure to credit risk, either positively or negatively, in that our customers may be similarly affected by changes in economic, regulatory or other conditions that may impact the timing and collectability of amounts due to us. As a consequence of an evaluation of our customer’s financial condition, payment patterns, balance due to us and other factors, we did not offset our account receivable with an allowance for bad debt at June 30, 2017 and December 31, 2016.

Long-lived Assets

Long-lived Assets

 

We review our carrying value of our long-lived assets with definite lives whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. When indicators of impairment exist, we determine whether the estimated undiscounted sum of the future cash flows of such assets is less than their carrying amounts. If less, an impairment loss is recognized in the amount, if any, by which the carrying amount of such assets exceeds their respective fair values. The determination of fair value is based on quoted market prices in active markets, if available, or independent appraisals; sales price negotiations; or projected future cash flows discounted at a rate determined by management to be commensurate with our business risk. The estimation of fair value utilizing discounted forecasted cash flows includes significant judgments regarding assumptions of revenue, operating and marketing costs; selling and administrative expenses; interest rates; property and equipment additions and retirements; industry competition; and general economic and business conditions, among other factors.

 

Fair value is based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a three-tier fair value hierarchy prioritizes the inputs used to measure fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

 

Cash and cash equivalents, accounts receivable, assets held for sale, accounts payable, accrued expenses and notes payable are reflected in the Condensed Consolidated Financial Statements at carrying value which approximates fair value.

Revenue Recognition

Revenue Recognition

 

Sales are recognized at the time ownership is transferred to the customer. Revenue is reduced for trade promotions, estimated sales returns, cash discounts and other allowances in the same period as the related sales are recorded. We make estimates of potential future product returns and other allowances related to current period revenue. We analyze historical returns, current trends, and changes in customer and consumer demand when evaluating the adequacy of the sales returns and other allowances.

 

Our return policy accommodates returns for (i) discontinued products, (ii) store closings and (iii) products that have reached or exceeded their designated expiration date. We do not impose a period of time within which product may be returned. All requests for product returns must be submitted to us for pre-approval. The main components of our returns policy are: (i) we will accept returns that are due to damaged product that is un-saleable and such return request activity falls within an acceptable range, (ii) we will accept returns for products that have reached or exceeded designated expiration dates and (iii) we will accept returns in the event that we discontinue a product provided that the customer will have the right to return only such items that it purchased directly from us. We will not accept return requests pertaining to customer inventory “Overstocking” or “Resets”. We will only accept return requests for product in its intended package configuration. We reserve the right to terminate shipment of product to customers who have made unauthorized deductions contrary to our return policy or pursue other methods of reimbursement. We compensate the customer for authorized returns by means of a credit applied to amounts owed or to be owed and in the case of discontinued product only, also by way of an exchange. We do not have any significant product exchange history.

 

Pursuant to the terms of the Asset Purchase Agreement, we are responsible for and continue to accept product returns of the Cold-EEZE® Business for product shipped prior to March 30, 2017. Additionally, pursuant to the terms of the Asset Purchase Agreement, we allocated and, in June 2017, issued a credit to Mylan in an aggregate of $400,000 for future sales returns and allowances arising from certain product returns that were sold by us prior to March 30, 2017.

 

As of June 30, 2017 and December 31, 2016, we included a provision for sales allowances of zero and $108,000, respectively. Additionally, accrued advertising and other allowances as of June 30, 2017 included (i) $934,000 for estimated future sales returns and (ii) $598,000 for cooperative incentive promotion costs. As of December 31, 2016, accrued advertising and other allowances included (i) $1.2 million for estimated future sales returns and (ii) $1.5 million for cooperative incentive promotion costs.

Advertising and Incentive Promotions

Advertising and Incentive Promotions

 

Advertising and incentive promotion costs are expensed within the period in which they are utilized. Advertising and incentive promotion expense is comprised of (i) media advertising, presented as part of sales and marketing expense, (ii) cooperative incentive promotions and coupon program expenses, which are accounted for as part of net sales, and (iii) free product, which is accounted for as part of cost of sales. Advertising and incentive promotion expenses incurred (i) from continuing operations for the three months ended June 30, 2017 and 2016 were $21,000 and $139,000, respectively, and (ii) attributed to and classified as discontinued operations were $205,000 and $471,000, respectively. Advertising and incentive promotion expenses incurred (i) from continuing operations for the six months ended June 30, 2017 and 2016 were $53,000 and $339,000 , respectively, and (ii) attributed to and classified as discontinued operations were $2.8 million and $3.3 million, respectively. Included in prepaid expenses and other current assets was $17,000 and $263,000 at June 30, 2017 and December 31, 2016, respectively, relating to prepaid advertising and promotion expenses.

Shipping and Handling

Shipping and Handling

 

Product sales may carry shipping and handling charges to the purchaser, included as part of the invoiced price, which is classified as revenue. In all cases, costs related to this revenue are recorded in cost of sales.

Stock-Based Compensation

Stock-Based Compensation

 

We recognize all share-based payments to employees and directors, including grants of stock options, as compensation expense in the financial statements based on their fair values. Fair values of stock options are determined through the use of the Black-Scholes option pricing model. The compensation cost is recognized as an expense over the requisite service period of the award, which usually coincides with the vesting period.

 

Stock and stock options for the purchase of our common stock, $0.0005 par value (“Common Stock”), have been granted to both employees and non-employees pursuant to the terms of certain agreements and stock option plans (see Note 6). Stock options are exercisable during a period determined by us, but in no event later than ten years from the date granted. For the three and six months ended June 30, 2017 and 2016, we charged to operations $18,000 and $1,000, respectively, for share-based compensation expense for the aggregate fair value of stock grants issued and vested stock options earned.

Research and Development

Research and Development

 

Research and development costs are charged to operations in the period incurred. Research and development costs incurred for the three months ended June 30, 2017 and 2016 (i) from continuing operations were $224,000 and $121,000, respectively, and (ii) attributed to and classified as discontinued operations of zero and $48,000, respectively. Research and development costs incurred for the six months ended June 30, 2017 and 2016 (i) from continuing operations were $258,000 and $160,000, respectively, and (ii) attributed to and classified as discontinued operations of $52,000 and $95,000, respectively. Research and development costs are principally related to personnel expenses and new product development initiatives and costs associated with our OTC health care products.

Income Taxes

Income Taxes

 

We utilize the asset and liability approach which requires the recognition of deferred tax assets and liabilities for the future tax consequences of events that have been recognized in our financial statements or tax returns. In estimating future tax consequences, we generally consider all expected future events other than enactments of changes in the tax law or rates. Until we have sufficient taxable income to offset the temporary timing differences attributable to operations and the tax deductions attributable to option, warrant and stock activities are assured, a full valuation allowance equaling the total deferred tax asset is being provided (see Notes 4 and 7).

 

We utilize a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than fifty percent likely of being realized upon ultimate settlement. Any interest or penalties related to income taxes will be recorded as interest or administrative expense, respectively.

 

As a result of our continuing tax losses, we have recorded a full valuation allowance against a net deferred tax asset. Additionally, we have not recorded a liability for unrecognized tax benefits.

Recently Issued Accounting Standards

Recently Issued Accounting Standards

 

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”, on revenue recognition. The new standard provides for a single five-step model to be applied to all revenue contracts with customers as well as requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This ASU, as amended, is effective for fiscal years and interim periods within those years beginning after December 15, 2017. We are currently assessing the impact of this update, but preliminarily believe that its adoption will not have a material impact on our consolidated financial statements.

 

In February 2016, the FASB issued ASU No. 2016-02 “Leases”. The new standard will require most leases to be recognized on the balance sheet which will increase reported assets and liabilities. Lessor accounting remains substantially similar to current guidance. The new standard is effective for annual and interim periods in fiscal years beginning after December 15, 2018, which for us is the first quarter of fiscal 2019 and mandates a modified retrospective transition method. We do not intend to early adopt and are currently assessing the impact of this update, but preliminarily believe that its adoption will not have a material impact on our consolidated financial statements.

 

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses.” The standard modifies the impairment model for most financial assets, including trade accounts receivables and loans, and will require the use of an “expected loss” model for instruments measured at amortized cost. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The effective date of the standard is for fiscal years beginning after December 15, 2019 with early adoption permitted. We are currently evaluating the impact of adoption of this update on our consolidated financial statements.

 

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments”. The new standard attempts to reduce diversity in practice in how cash receipts and cash payments are presented and classified in the statement of cash flows. ASU No. 2016-15 provides guidance on eight specific cash flow issues. The new guidance will be effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted including adoption in an interim period. We do not intend to early adopt and we are currently assessing the impact of adoption of this update will have on our consolidated financial statements.

 

In October 2016, the FASB issued ASU No. 2016-16, “Income Taxes: Intra-Entity Transfers of Assets Other than Inventory”. The new standard requires entities should recognize the income tax consequences of an asset other than inventory when the asset transfer occurs. The new guidance will be effective for fiscal years beginning after December 15, 2017 and requires a modified retrospective adoption through a cumulative effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are currently evaluating the impact of adoption of this update on our consolidated financial statements.

XML 28 R17.htm IDEA: XBRL DOCUMENT v3.10.0.1
Restatement of Previously Issued Financial Statements (Tables)
6 Months Ended
Jun. 30, 2017
Accounting Changes and Error Corrections [Abstract]  
Schedule of Consolidated Financial Statements Previously Issued

The table below sets forth the condensed consolidated balance sheet, including the balances as originally reported, adjustments and the as restated balances (in thousands):

 

    As of June 30, 2017  
    As originally reported     Adjustments     As restated  
                   
Income taxes payable   $ -     $ 751     $ 751  
Total current liabilities     3,473       751       4,224  
                         
Retained earnings     22,646       (751 )     21,895  
Total stockholders' equity     46,626       (751 )     45,875  
Total liabilities and stockholders' equity   $ 50,099     $ -     $ 50,099  

 

The table below sets for the condensed consolidated statements of operations, including the balances as originally reported, adjustments, and the as restated amounts (in thousands):

    For the three months ended June 30, 2017  
    As originally
reported
    Adjustments     As restated  
                   
Income tax benefit from continuing operations   $ -     $ 574     $ 574  
Loss from continuing operations     (1,460 )     574       (886 )
                         
Gain on sale of discontinued operations, net of taxes     (10 )     (574 )     (584 )
Loss from discontinued operations, net of tax     (845 )     (574 )     (1,419 )
Net loss     (2,305 )     -       (2,305 )
                         
Basic loss per share:                        
Loss from continuing operations   $ (0.09 )   $ 0.03     $ (0.06 )
Loss from discontinued operations     (0.05 )     (0.03 )     (0.08 )
Net loss   $ (0.14 )   $ 0.00     $ (0.14 )
                         
Diluted loss per share:                        
Loss from continuing operations   $ (0.09 )   $ 0.03     $ (0.06 )
Loss from discontinued operations     (0.05 )     (0.03 )     (0.08 )
Net loss   $ (0.14 )   $ 0.00     $ (0.14 )

 

    For the six months ended June 30, 2017  
    As originally
reported
    Adjustments     As restated  
                   
Income tax benefit from continuing operations   $ 18,123     $ (17,096 )   $ 1,027  
Income (loss) from continuing operations     15,464       (17,096 )     (1,632 )
                         
Gain on sale of discontinued operations, net of taxes     26,339       16,345       42,684  
Income from discontinued operations     26,869       16,345       43,214  
Net income     42,333       (751 )     41,582  
                         
Basic earnings (loss) per share:                        
Income (loss) from continuing operations   $ 0.91     $ (1.01 )   $ (0.10 )
Income income from discontinued operations     1.58       0.96       2.54  
Net income   $ 2.49     $ (0.05 )   $ 2.44  
                         
Diluted earnings (loss) per share:                        
Income (loss) from continuing operations   $ 0.87     $ (0.97 )   $ (0.10 )
Income from discontinued operations     1.52       0.92       2.44  
Net income   $ 2.39     $ (0.05 )   $ 2.34  

 

The table below sets forth the condensed consolidated statements of cash flows from operating activities, including the balances as originally reported, adjustments and the as restated balances (in thousands):

 

    For the six months ended June 30, 2017  
    As originally
reported
    Adjustments     As restated  
                   
Net income   $ 42,333     $ (751 )   $ 41,582  
Gain on sale of assets, net of taxes     (26,339 )     (16,345 )     (42,684 )
Change in valuation allowance, income tax     (19,473 )     18,446       (1,027 )
Other current liabilities     (100 )     (1,350 )     (1,450 )
Net cash used in operating activities   $ (667 )   $ -     $ (667 )

XML 29 R18.htm IDEA: XBRL DOCUMENT v3.10.0.1
Summary of Significant Accounting Policies (Tables)
6 Months Ended
Jun. 30, 2017
Accounting Policies [Abstract]  
Components of Inventory

The components of inventory are as follows (in thousands):

 

    June 30, 2017     December 31, 2016  
Raw materials   $ 1,590     $ 1,404  
Work in process     342       466  
Finished goods     34       866  
    $ 1,966     $ 2,736  

XML 30 R19.htm IDEA: XBRL DOCUMENT v3.10.0.1
Discontinued Operations, Sale of the Cold-EEZE® Business (Tables)
6 Months Ended
Jun. 30, 2017
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Proceeds from Sale of Business

The net proceeds received from the sale of the Cold-EEZE® Business were as follows (in thousands):

 

   

Amount

(as restated)

 
Gross consideration from the sale of the Cold-EEZE® Business   $ 50,000  
Closing and transaction costs     (4,175 )
Net proceeds from sale of the Cold-EEZE® Business     45,825  
Book value of assets sold     (13 )
Gain on sale of the Cold-EEZE® Business before income taxes     45,812  
Income tax expense     (3,128 )
Gain on sale of the Cold-EEZE® Business after income taxes   $ 42,684  
         
Net proceeds:        
Cash paid at closing, net of closing and transaction costs   $ 43,145  
Proceeds due on sale of assets, cash held in escrow     5,000  
    $ 48,145  

Schedule of Operating Results of Discontinued Operations

The following table sets forth the condensed operating results of our discontinued operations for the three and six months ended June 30, 2017 and 2016, respectively, (in thousands):

 

    Three Months Ended June 30,     Six Months Ended June 30,  
    2017     2016     2017     2016  
Net sales   $ (371 )   $ 1,826     $ 4,687     $ 6,179  
Cost of sales     264       728       2,037       2,427  
Sales and marketing     200       533       1,720       2,833  
Administration     -       319       348       656  
Research and development     -       48       52       95  
Income (loss) from discontinued operations   $ (835 )   $ 198     $ 530     $ 168  

XML 31 R20.htm IDEA: XBRL DOCUMENT v3.10.0.1
Commitments and Contingencies (Tables)
6 Months Ended
Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Estimated Future Minimum Obligations

We have estimated future minimum obligations over the next five years, including the remainder of Fiscal 2017, as follows (in thousands):

 

Fiscal year   Employment 
Contracts
 
2017     338  
2018     675  
2019     -  
2020     -  
2021     -  
Total   $ 1,013  

XML 32 R21.htm IDEA: XBRL DOCUMENT v3.10.0.1
Restatement of Previously Issued Financial Statements - Schedule of Consolidated Financial Statements Previously Issued (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Dec. 31, 2016
Income taxes payable $ 751   $ 751  
Total current liabilities 4,224   4,224   6,840
Retained earnings 21,895   21,895   (19,687)
Total stockholders' equity 45,875   45,875   5,962
Total liabilities and stockholders' equity 50,099   50,099   $ 12,802
Income tax benefit from continuing operations 574 1,027  
Income (loss) from continuing operations (886) (1,325) (1,632) (2,631)  
Gain on sale of discontinued operations, net of taxes (584) 42,684  
Income (Loss) from discontinued operations, net of tax (1,419) 198 43,214 168  
Net income (loss) $ (2,305) $ (1,127) $ 41,582 $ (2,463)  
Income (loss) from continuing operations $ (0.06) $ (0.08) $ (0.10) $ (0.15)  
Income from discontinued operations (0.08) 0.01 2.54 0.01  
Net income (loss) (0.14)   2.44    
Income (loss) from continuing operations (0.06) (0.08) (0.10) (0.15)  
Income from discontinued operations (0.08) $ 0.01 2.44 $ 0.01  
Net income (loss) $ (0.14)   $ 2.34    
Gain on sale of assets, net of taxes     $ (42,684)  
Change in valuation allowance, income tax benefit     (1,027)  
Other current liabilities     (1,450) (596)  
Net cash used in operating activities     (667) $ (188)  
As Originally Reported [Member]          
Income taxes payable      
Total current liabilities 3,473   3,473    
Retained earnings 22,646   22,646    
Total stockholders' equity 46,626   46,626    
Total liabilities and stockholders' equity 50,099   50,099    
Income tax benefit from continuing operations   18,123    
Income (loss) from continuing operations (1,460)   15,464    
Gain on sale of discontinued operations, net of taxes (10)   26,339    
Income (Loss) from discontinued operations, net of tax (845)   26,869    
Net income (loss) $ (2,305)   $ 42,333    
Income (loss) from continuing operations $ (0.09)   $ 0.91    
Income from discontinued operations (0.05)   1.58    
Net income (loss) (0.14)   2.49    
Income (loss) from continuing operations (0.09)   0.87    
Income from discontinued operations (0.05)   1.52    
Net income (loss) $ (0.14)   $ 2.39    
Gain on sale of assets, net of taxes     $ (26,339)    
Change in valuation allowance, income tax benefit     (19,473)    
Other current liabilities     (100)    
Net cash used in operating activities     (667)    
Adjustments [Member]          
Income taxes payable $ 751   751    
Total current liabilities 751   751    
Retained earnings (751)   (751)    
Total stockholders' equity (751)   (751)    
Total liabilities and stockholders' equity      
Income tax benefit from continuing operations 574   (17,096)    
Income (loss) from continuing operations 574   (17,096)    
Gain on sale of discontinued operations, net of taxes (574)   16,345    
Income (Loss) from discontinued operations, net of tax (574)   16,345    
Net income (loss)   $ (751)    
Income (loss) from continuing operations $ 0.03   $ (1.01)    
Income from discontinued operations (0.03)   0.96    
Net income (loss) 0.00   (0.05)    
Income (loss) from continuing operations 0.03   (0.97)    
Income from discontinued operations (0.03)   0.92    
Net income (loss) $ 0.00   $ (0.05)    
Gain on sale of assets, net of taxes     $ (16,345)    
Change in valuation allowance, income tax benefit     18,446    
Other current liabilities     (1,350)    
Net cash used in operating activities        
XML 33 R22.htm IDEA: XBRL DOCUMENT v3.10.0.1
Summary of Significant Accounting Policies (Details Narrative) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Dec. 31, 2016
Administrative expense $ 319 $ 348 $ 656  
Research and development discontinued operation 48 52 95  
Adjustments to reduce inventory for excess or obsolete inventory 1,700   1,700   $ 1,600
Cash balance 37,300   37,300    
Bank balance 38,500   38,500    
Amount of bank balance covered by federal depository insurance 342   342    
Amount of bank balance uninsured 38,100   38,100    
Allowance for bad debt    
Accrued liabilities 400   400    
Provision for sales allowances     0   108
Advertising and incentive promotion expenses 21 139 53 339  
Prepaid expenses and other current assets $ 17   $ 17   $ 263
Common stock par value $ 0.0005   $ 0.0005   $ 0.0005
Stock option exercisable period     10 years    
Share-based compensation expense $ 18 1 $ 18 1  
Research and development 224 121 258 160  
Discontinued Operations [Member]          
Advertising and incentive promotion expenses 205 471 2,800 3,300  
Research and development 0 $ 48 52 $ 95  
Estimated Future Sales Return [Member]          
Accrued liabilities $ 934   934   $ 1,200
Cooperative Incentive [Member]          
Advertising and incentive promotion expenses     $ 598   $ 1,500
Building and Improvements [Member] | Minimum [Member]          
Property, plant and equipment, useful life     10 years    
Building and Improvements [Member] | Maximum [Member]          
Property, plant and equipment, useful life     39 years    
Machinery and Equipment [Member] | Minimum [Member]          
Property, plant and equipment, useful life     3 years    
Machinery and Equipment [Member] | Maximum [Member]          
Property, plant and equipment, useful life     7 years    
Computer Software [Member]          
Property, plant and equipment, useful life     3 years    
Furniture and Fixtures [Member]          
Property, plant and equipment, useful life     5 years    
XML 34 R23.htm IDEA: XBRL DOCUMENT v3.10.0.1
Summary of Significant Accounting Policies - Components of Inventory (Details) - USD ($)
$ in Thousands
Jun. 30, 2017
Dec. 31, 2016
Accounting Policies [Abstract]    
Raw materials $ 1,590 $ 1,404
Work in process 342 466
Finished goods 34 866
Total inventory $ 1,966 $ 2,736
XML 35 R24.htm IDEA: XBRL DOCUMENT v3.10.0.1
Discontinued Operations, Sale of the Cold-EEZE® Business (Details Narrative) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2017
Dec. 31, 2016
Assets held for sale $ 294 $ 294
Transition service fees 150 150  
Closing and transaction costs   1,900  
Cold-EEZE Business [Member]      
Closing and transaction costs   4,200  
Employees related compensation   2,300  
Asset Purchase Agreement [Member]      
Assets held for sale 294 294  
Transition service fees   150  
Asset Purchase Agreement [Member] | Mylan [Member]      
Transition service fees   1,400  
Due to related party 717 717  
Sales and other allowances 1,800 1,800  
Sales return allocation   400  
Reimbursement expenses   $ 106  
Closing and transaction costs $ 10    
XML 36 R25.htm IDEA: XBRL DOCUMENT v3.10.0.1
Discontinued Operations, Sale of the Cold-EEZE® Business - Schedule of Proceeds from Sale of Business (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]        
Gross consideration from the sale of the Cold-EEZE Business     $ 50,000  
Closing and transaction costs     (4,175)  
Net proceeds from sale of the Cold-EEZE® Business     45,825  
Book value of assets sold     (13)  
Gain on sale of the Cold-EEZE Business before income taxes     45,812  
Income tax expense     (3,128)  
Gain on sale of the Cold-EEZE Business after income taxes $ (584) 42,684
Cash paid at closing, net of closing and transaction costs     43,145  
Proceeds due on sale of assets, cash held in escrow     5,000  
Net proceeds from the sale of assets     $ 48,145  
XML 37 R26.htm IDEA: XBRL DOCUMENT v3.10.0.1
Discontinued Operations, Sale of the Cold-EEZE® Business - Schedule of Operating Results of Discontinued Operations (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]        
Net sales $ (371) $ 1,826 $ 4,687 $ 6,179
Cost of sales 264 728 2,037 2,427
Sales and marketing 200 533 1,720 2,833
Administration 319 348 656
Research and development 48 52 95
Income (loss) from discontinued operations $ (835) $ 198 $ 530 $ 168
XML 38 R27.htm IDEA: XBRL DOCUMENT v3.10.0.1
Secured Promissory Notes and Other Obligations (Details Narrative) - USD ($)
$ / shares in Units, $ in Thousands
6 Months Ended
Mar. 29, 2017
Dec. 11, 2015
Jun. 30, 2017
Jun. 30, 2016
Jun. 15, 2017
Notes bear interest at rate per annum   12.00%     12.00%
Proceeds from notes payable   $ 1,500      
Class of warrants issued during period   51,000      
Warrants exercise price per share   $ 1.35      
Incurred loan origination costs   $ 22      
Warrant exercise term   3 years      
Fair value of warrants   $ 14      
Debt instruments maturity date   Jun. 15, 2017      
Percentage of warrant and loan origination costs   14.30%      
Interest expense     $ 54 $ 105  
Cold-EEZE Business [Member]          
Payment of principal and accrued interest $ 1,553        
Cold-EEZE Business [Member] | Investors [Member]          
Warrants aggregate exercise price $ 69        
Secured Promissory Notes [Member]          
Debt instruments principal amount, maximum limit   $ 3,000      
XML 39 R28.htm IDEA: XBRL DOCUMENT v3.10.0.1
Transactions Affecting Stockholders' Equity (Details Narrative) - USD ($)
6 Months Ended
Jun. 12, 2017
Jul. 30, 2015
Jun. 30, 2017
Jun. 30, 2016
Dec. 31, 2016
May 24, 2016
Dec. 11, 2015
May 05, 2010
Common stock, shares authorized     50,000,000   50,000,000      
Preferred stock, shares authorized     1,000,000   1,000,000      
Preferred stock, par value     $ 0.0005   $ 0.0005      
Common stock right's exercise price             $ 1.35  
Equity method investment ownership percentage     50.00%          
Stock option granted     600,000          
Common stock option exercisable, per share     $ 2.00          
Stock option, expected life     4 years 6 months          
Weighted average risk rate     1.81%          
Stock option, dividend yield     0.00%          
Stock option, expected volatility     44.51%          
Stock option, exercised     90,000        
Proceeds from stock option exercised     $ 102,000          
Common stock, shares issued     26,454,593   26,313,593      
Employees [Member]                
Stock option granted     600,000 600,000        
Stock option vesting period       4 years        
2015 Equity Line of Credit [Member] | Dutchess [Member]                
Stock issued during period shares   3,200,000            
Maximum number of shares of draw down notice   500,000            
Derivative transaction, conditions description     The purchase price shall be set at ninety-five percent (95%) of the volume weighted average price (VWAP) of the Common Stock during the one trading day immediately following our put notice. We have the right to withdraw all or any portion of any put, except that portion of the put that has already been sold to a third party, including any portion of a put that is below the minimum acceptable price set forth on the put notice, before the closing. In the event Dutchess receives more than a five percent (5%) return on the net sales for a specific put, Dutchess must remit such excess proceeds to us; however, in the event Dutchess receives less than a five percent (5%) return on the net sales for a specific put, Dutchess will have the right to deduct from the proceeds of the put amount on the applicable closing date so Dutchess’s return will equal five percent (5%).          
Number of shares beneficially held maximum percentage     4.99%          
Available for sale, shares     $ 2,450,000          
Stock Purchase Agreement [Member]                
Equity method investment ownership percentage 6.20%              
Options outstanding - shares 17,221,776              
Common stock, shares purchased 1,061,980              
Stock Purchase Agreement [Member] | Leventhal Holders [Member]                
Consideration paid $ 1,858,465              
Share price $ 1.75              
Chairman and Chief Executive Officer [Member] | Rights Agreement [Member]                
Equity method investment ownership percentage required for rights exercisable under right agreement     20.00%          
Stockholder Rights Plan [Member]                
Common stock right's exercise price     $ 45          
Equity method investment ownership percentage required for rights exercisable under right agreement     15.00%          
Percentage of discount on exercise of right     50.00%          
Rights agreement expiration date     Jun. 18, 2024          
2010 Equity Compensation Plan [Member]                
Plan provides total number of shares of common stock issued           700,000   3,200,000
1997 Equity Compensation Plan [Member]                
Plan provides total number of shares of common stock issued               900,000
2010 Plan [Member]                
Options outstanding - shares     2,209,000          
Available for grant, shares     133,659          
2010 Directors' Equity Compensation Plan [Member]                
Number of shares issued during period     425,000          
Common stock, shares issued     147,808          
XML 40 R29.htm IDEA: XBRL DOCUMENT v3.10.0.1
Income Taxes (Details Narrative) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Dec. 31, 2016
Net operating loss carry-forwards         $ 47,100
Additional net operating loss carry-forwards         $ 22,100
Estimated federal and state income taxes to discontinued operations $ (584) $ 42,684  
Income tax benefit from continuing operations $ 574 1,027  
Cold-EEZE Business [Member]          
Income tax expense arising from sale     2,100    
Estimated federal and state income taxes to discontinued operations     3,100    
Income tax benefit from continuing operations     $ 1,000    
Domestic Tax Authority [Member]          
Operating loss carry forwards expiration dates description         Expire beginning for the year ended December 31, 2020 through 2036
State and Local Jurisdiction [Member]          
Operating loss carry forwards expiration dates description         Expire beginning for the year ended December 31, 2020 through 2036
XML 41 R30.htm IDEA: XBRL DOCUMENT v3.10.0.1
Commitments and Contingencies (Details Narrative) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2017
Dec. 31, 2016
Escrow deposit $ 5,000
Mylan and Escrow Agent [Member] | Escrow Agreement [Member]    
Escrow deposit $ 5,000  
Escrow receivable, description If, on the 18th month anniversary of the closing date, there are funds remaining in the escrow account, then the escrow account will be reduced by the difference, if a positive number, of (i) $2.5 million minus (ii) the aggregate amount of all escrow claims asserted by Mylan prior to this date that have either been paid out of the escrow account or are pending as of such date, and, within two business days of such date, the Escrow Agent will disburse such difference, if a positive number, to us. Within two business days of the second anniversary of the closing date, the Escrow Agent will release any funds remaining in the escrow account to us minus any amounts being reserved for escrow claims asserted by Mylan prior to such date. Upon the resolution of any pending escrow claims, the Escrow Agent will, within two business days of receipt of joint instructions or a final order from a court (as described in the Escrow Agreement) disburse such reserved amount to the parties entitled to such funds.  
Agreement termination date Mar. 29, 2022  
XML 42 R31.htm IDEA: XBRL DOCUMENT v3.10.0.1
Commitments and Contingencies - Schedule of Estimated Future Minimum Obligations (Details) - Employment Contracts [Member]
$ in Thousands
Jun. 30, 2017
USD ($)
2017 $ 338
2018 675
2019
2020
2021
Total $ 1,013
XML 43 R32.htm IDEA: XBRL DOCUMENT v3.10.0.1
Earnings (Loss) Per Share (Details Narrative) - shares
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Earnings Per Share [Abstract]        
Options and warrants outstanding to acquire shares     2,209,000 1,706,500
Anti diluted shares 641,754 276,165 650,190 244,112
EXCEL 44 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx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end XML 45 Show.js IDEA: XBRL DOCUMENT /** * Rivet Software Inc. * * @copyright Copyright (c) 2006-2011 Rivet Software, Inc. All rights reserved. * Version 2.4.0.3 * */ var Show = {}; Show.LastAR = null, Show.hideAR = function(){ Show.LastAR.style.display = 'none'; }; Show.showAR = function ( link, id, win ){ if( Show.LastAR ){ Show.hideAR(); } var ref = link; do { ref = ref.nextSibling; } while (ref && ref.nodeName != 'TABLE'); if (!ref || ref.nodeName != 'TABLE') { var tmp = win ? win.document.getElementById(id) : document.getElementById(id); if( tmp ){ ref = tmp.cloneNode(true); ref.id = ''; link.parentNode.appendChild(ref); } } if( ref ){ ref.style.display = 'block'; Show.LastAR = ref; } }; Show.toggleNext = function( link ){ var ref = link; do{ ref = ref.nextSibling; }while( ref.nodeName != 'DIV' ); if( ref.style && ref.style.display && ref.style.display == 'none' ){ ref.style.display = 'block'; if( link.textContent ){ link.textContent = link.textContent.replace( '+', '-' ); }else{ link.innerText = link.innerText.replace( '+', '-' ); } }else{ ref.style.display = 'none'; if( link.textContent ){ link.textContent = link.textContent.replace( '-', '+' ); }else{ link.innerText = link.innerText.replace( '-', '+' ); } } }; XML 46 report.css IDEA: XBRL DOCUMENT /* Updated 2009-11-04 */ /* v2.2.0.24 */ /* DefRef Styles */ ..report table.authRefData{ background-color: #def; border: 2px solid #2F4497; font-size: 1em; position: absolute; } ..report table.authRefData a { display: block; font-weight: bold; } ..report table.authRefData p { margin-top: 0px; } ..report table.authRefData .hide { background-color: #2F4497; padding: 1px 3px 0px 0px; text-align: right; } ..report table.authRefData .hide a:hover { background-color: #2F4497; } ..report table.authRefData .body { height: 150px; overflow: auto; width: 400px; } ..report table.authRefData table{ font-size: 1em; } /* Report Styles */ ..pl a, .pl a:visited { color: black; text-decoration: none; } /* table */ ..report { background-color: white; border: 2px solid #acf; clear: both; color: black; font: normal 8pt Helvetica, Arial, san-serif; margin-bottom: 2em; } ..report hr { border: 1px solid #acf; } /* Top labels */ ..report th { background-color: #acf; color: black; font-weight: bold; text-align: center; } ..report th.void { background-color: transparent; color: #000000; font: bold 10pt Helvetica, Arial, san-serif; text-align: left; } ..report .pl { text-align: left; vertical-align: top; white-space: normal; width: 200px; white-space: normal; /* word-wrap: break-word; */ } ..report td.pl a.a { cursor: pointer; display: block; width: 200px; overflow: hidden; } ..report td.pl div.a { width: 200px; } ..report td.pl a:hover { background-color: #ffc; } /* Header rows... */ ..report tr.rh { background-color: #acf; color: black; font-weight: bold; } /* Calendars... */ ..report .rc { background-color: #f0f0f0; } /* Even rows... */ ..report .re, .report .reu { background-color: #def; } ..report .reu td { border-bottom: 1px solid black; } /* Odd rows... */ ..report .ro, .report .rou { background-color: white; } ..report .rou td { border-bottom: 1px solid black; } ..report .rou table td, .report .reu table td { border-bottom: 0px solid black; } /* styles for footnote marker */ ..report .fn { white-space: nowrap; } /* styles for numeric types */ ..report .num, .report .nump { text-align: right; white-space: nowrap; } ..report .nump { padding-left: 2em; } ..report .nump { padding: 0px 0.4em 0px 2em; } /* styles for text types */ ..report .text { text-align: left; white-space: normal; } ..report .text .big { margin-bottom: 1em; width: 17em; } ..report .text .more { display: none; } ..report .text .note { font-style: italic; font-weight: bold; } ..report .text .small { width: 10em; } ..report sup { font-style: italic; } ..report .outerFootnotes { font-size: 1em; } XML 48 FilingSummary.xml IDEA: XBRL DOCUMENT 3.10.0.1 html 77 224 1 false 37 0 false 4 false false R1.htm 00000001 - Document - Document and Entity Information Sheet http://prophaselabs.com/role/DocumentAndEntityInformation Document and Entity Information Cover 1 false false R2.htm 00000002 - Statement - Condensed Consolidated Balance Sheets Sheet http://prophaselabs.com/role/BalanceSheets Condensed Consolidated Balance Sheets Statements 2 false false R3.htm 00000003 - Statement - Condensed Consolidated Balance Sheets (Parenthetical) Sheet http://prophaselabs.com/role/BalanceSheetsParenthetical Condensed Consolidated Balance Sheets (Parenthetical) Statements 3 false false R4.htm 00000004 - Statement - Condensed Consolidated Statements of Operations (Unaudited) Sheet http://prophaselabs.com/role/StatementsOfOperations Condensed Consolidated Statements of Operations (Unaudited) Statements 4 false false R5.htm 00000005 - Statement - Condensed Consolidated Statement of Stockholders' Equity (Unaudited) Sheet http://prophaselabs.com/role/StatementOfStockholdersEquity Condensed Consolidated Statement of Stockholders' Equity (Unaudited) Statements 5 false false R6.htm 00000006 - Statement - Condensed Consolidated Statements of Cash Flows (Unaudited) Sheet http://prophaselabs.com/role/StatementsOfCashFlows Condensed Consolidated Statements of Cash Flows (Unaudited) Statements 6 false false R7.htm 00000007 - Disclosure - Organization and Business Sheet http://prophaselabs.com/role/OrganizationAndBusiness Organization and Business Notes 7 false false R8.htm 00000008 - Disclosure - Restatement of Previously Issued Financial Statements Sheet http://prophaselabs.com/role/RestatementOfPreviouslyIssuedFinancialStatements Restatement of Previously Issued Financial Statements Notes 8 false false R9.htm 00000009 - Disclosure - Summary of Significant Accounting Policies Sheet http://prophaselabs.com/role/SummaryOfSignificantAccountingPolicies Summary of Significant Accounting Policies Notes 9 false false R10.htm 00000010 - Disclosure - Discontinued Operations, Sale of the Cold-EEZE® Business Sheet http://prophaselabs.com/role/DiscontinuedOperationsSaleOfCold-eezeBusiness Discontinued Operations, Sale of the Cold-EEZE® Business Notes 10 false false R11.htm 00000011 - Disclosure - Secured Promissory Notes and Other Obligations Notes http://prophaselabs.com/role/SecuredPromissoryNotesAndOtherObligations Secured Promissory Notes and Other Obligations Notes 11 false false R12.htm 00000012 - Disclosure - Transactions Affecting Stockholders' Equity Sheet http://prophaselabs.com/role/TransactionsAffectingStockholdersEquity Transactions Affecting Stockholders' Equity Notes 12 false false R13.htm 00000013 - Disclosure - Income Taxes Sheet http://prophaselabs.com/role/IncomeTaxes Income Taxes Notes 13 false false R14.htm 00000014 - Disclosure - Commitments and Contingencies Sheet http://prophaselabs.com/role/CommitmentsAndContingencies Commitments and Contingencies Notes 14 false false R15.htm 00000015 - Disclosure - Earnings (Loss) Per Share Sheet http://prophaselabs.com/role/EarningsLossPerShare Earnings (Loss) Per Share Notes 15 false false R16.htm 00000016 - Disclosure - Summary of Significant Accounting Policies (Policies) Sheet http://prophaselabs.com/role/SummaryOfSignificantAccountingPoliciesPolicies Summary of Significant Accounting Policies (Policies) Policies http://prophaselabs.com/role/SummaryOfSignificantAccountingPolicies 16 false false R17.htm 00000017 - Disclosure - Restatement of Previously Issued Financial Statements (Tables) Sheet http://prophaselabs.com/role/RestatementOfPreviouslyIssuedFinancialStatementsTables Restatement of Previously Issued Financial Statements (Tables) Tables http://prophaselabs.com/role/RestatementOfPreviouslyIssuedFinancialStatements 17 false false R18.htm 00000018 - Disclosure - Summary of Significant Accounting Policies (Tables) Sheet http://prophaselabs.com/role/SummaryOfSignificantAccountingPoliciesTables Summary of Significant Accounting Policies (Tables) Tables http://prophaselabs.com/role/SummaryOfSignificantAccountingPolicies 18 false false R19.htm 00000019 - Disclosure - Discontinued Operations, Sale of the Cold-EEZE® Business (Tables) Sheet http://prophaselabs.com/role/DiscontinuedOperationsSaleOfCold-eezeBusinessTables Discontinued Operations, Sale of the Cold-EEZE® Business (Tables) Tables http://prophaselabs.com/role/DiscontinuedOperationsSaleOfCold-eezeBusiness 19 false false R20.htm 00000020 - Disclosure - Commitments and Contingencies (Tables) Sheet http://prophaselabs.com/role/CommitmentsAndContingenciesTables Commitments and Contingencies (Tables) Tables http://prophaselabs.com/role/CommitmentsAndContingencies 20 false false R21.htm 00000021 - Disclosure - Restatement of Previously Issued Financial Statements - Schedule of Consolidated Financial Statements Previously Issued (Details) Sheet http://prophaselabs.com/role/RestatementOfPreviouslyIssuedFinancialStatements-ScheduleOfConsolidatedFinancialStatementsPreviouslyIssuedDetails Restatement of Previously Issued Financial Statements - Schedule of Consolidated Financial Statements Previously Issued (Details) Details 21 false false R22.htm 00000022 - Disclosure - Summary of Significant Accounting Policies (Details Narrative) Sheet http://prophaselabs.com/role/SummaryOfSignificantAccountingPoliciesDetailsNarrative Summary of Significant Accounting Policies (Details Narrative) Details http://prophaselabs.com/role/SummaryOfSignificantAccountingPoliciesTables 22 false false R23.htm 00000023 - Disclosure - Summary of Significant Accounting Policies - Components of Inventory (Details) Sheet http://prophaselabs.com/role/SummaryOfSignificantAccountingPolicies-ComponentsOfInventoryDetails Summary of Significant Accounting Policies - Components of Inventory (Details) Details 23 false false R24.htm 00000024 - Disclosure - Discontinued Operations, Sale of the Cold-EEZE® Business (Details Narrative) Sheet http://prophaselabs.com/role/DiscontinuedOperationsSaleOfCold-eezeBusinessDetailsNarrative Discontinued Operations, Sale of the Cold-EEZE® Business (Details Narrative) Details http://prophaselabs.com/role/DiscontinuedOperationsSaleOfCold-eezeBusinessTables 24 false false R25.htm 00000025 - Disclosure - Discontinued Operations, Sale of the Cold-EEZE® Business - Schedule of Proceeds from Sale of Business (Details) Sheet http://prophaselabs.com/role/DiscontinuedOperationsSaleOfCold-eezeBusiness-ScheduleOfProceedsFromSaleOfBusinessDetails Discontinued Operations, Sale of the Cold-EEZE® Business - Schedule of Proceeds from Sale of Business (Details) Details 25 false false R26.htm 00000026 - Disclosure - Discontinued Operations, Sale of the Cold-EEZE® Business - Schedule of Operating Results of Discontinued Operations (Details) Sheet http://prophaselabs.com/role/DiscontinuedOperationsSaleOfCold-eezeBusiness-ScheduleOfOperatingResultsOfDiscontinuedOperationsDetails Discontinued Operations, Sale of the Cold-EEZE® Business - Schedule of Operating Results of Discontinued Operations (Details) Details 26 false false R27.htm 00000027 - Disclosure - Secured Promissory Notes and Other Obligations (Details Narrative) Notes http://prophaselabs.com/role/SecuredPromissoryNotesAndOtherObligationsDetailsNarrative Secured Promissory Notes and Other Obligations (Details Narrative) Details http://prophaselabs.com/role/SecuredPromissoryNotesAndOtherObligations 27 false false R28.htm 00000028 - Disclosure - Transactions Affecting Stockholders' Equity (Details Narrative) Sheet http://prophaselabs.com/role/TransactionsAffectingStockholdersEquityDetailsNarrative Transactions Affecting Stockholders' Equity (Details Narrative) Details http://prophaselabs.com/role/TransactionsAffectingStockholdersEquity 28 false false R29.htm 00000029 - Disclosure - Income Taxes (Details Narrative) Sheet http://prophaselabs.com/role/IncomeTaxesDetailsNarrative Income Taxes (Details Narrative) Details http://prophaselabs.com/role/IncomeTaxes 29 false false R30.htm 00000030 - Disclosure - Commitments and Contingencies (Details Narrative) Sheet http://prophaselabs.com/role/CommitmentsAndContingenciesDetailsNarrative Commitments and Contingencies (Details Narrative) Details http://prophaselabs.com/role/CommitmentsAndContingenciesTables 30 false false R31.htm 00000031 - Disclosure - Commitments and Contingencies - Schedule of Estimated Future Minimum Obligations (Details) Sheet http://prophaselabs.com/role/CommitmentsAndContingencies-ScheduleOfEstimatedFutureMinimumObligationsDetails Commitments and Contingencies - Schedule of Estimated Future Minimum Obligations (Details) Details 31 false false R32.htm 00000032 - Disclosure - Earnings (Loss) Per Share (Details Narrative) Sheet http://prophaselabs.com/role/EarningsLossPerShareDetailsNarrative Earnings (Loss) Per Share (Details Narrative) Details http://prophaselabs.com/role/EarningsLossPerShare 32 false false All Reports Book All Reports prph-20170630.xml prph-20170630.xsd prph-20170630_cal.xml prph-20170630_def.xml prph-20170630_lab.xml prph-20170630_pre.xml http://xbrl.sec.gov/dei/2014-01-31 http://fasb.org/us-gaap/2017-01-31 true true ZIP 50 0001493152-18-012358-xbrl.zip IDEA: XBRL DOCUMENT begin 644 0001493152-18-012358-xbrl.zip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�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