0001140361-16-085613.txt : 20161109 0001140361-16-085613.hdr.sgml : 20161109 20161109164001 ACCESSION NUMBER: 0001140361-16-085613 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 39 CONFORMED PERIOD OF REPORT: 20160930 FILED AS OF DATE: 20161109 DATE AS OF CHANGE: 20161109 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BIOSPECIFICS TECHNOLOGIES CORP CENTRAL INDEX KEY: 0000875622 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 113054851 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-34236 FILM NUMBER: 161984784 BUSINESS ADDRESS: STREET 1: 35 WILBUR ST CITY: LYNBROOK STATE: NY ZIP: 11563 BUSINESS PHONE: 5165937000 MAIL ADDRESS: STREET 1: 35 WILBUR STREET CITY: LYNBROOK STATE: NY ZIP: 11563 10-Q 1 form10q.htm BIOSPECIFICS TECHNOLOGIES CORP 10-Q 9-30-2016

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2016

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934

For the transition period from __________________to __________________

001-34236

(Commission file number)

BIOSPECIFICS TECHNOLOGIES CORP.

(Exact Name of Registrant as Specified in Its Charter)

Delaware		11-3054851
(State or Other Jurisdiction		(I.R.S. Employer
of Incorporation or Organization)		Identification No.)

35 Wilbur Street Lynbrook, NY 11563

(Address of Principal Executive Offices) (Zip Code)

516.593.7000

(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 ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ☒ 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 the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐ (Do not check if a smaller reporting company)	Smaller reporting company	☐

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

Yes ☐ No ☒

Indicate the number of shares outstanding of the issuer's classes of common stock, as of the latest practicable date:

Class of Stock	Outstanding November 8, 2016
Common Stock ($.001 par value)	7,147,159

BIOSPECIFICS TECHNOLOGIES CORP.

TABLE OF CONTENTS

		Page
	PART I – FINANCIAL INFORMATION
ITEM 1.	Financial Statements Unaudited Condensed Consolidated Financial Statements Condensed Consolidated Balance Sheets	4
	Condensed Consolidated Income Statements	5
	Condensed Consolidated Statements of Cash Flows	6
	Notes to Condensed Consolidated Financial Statements	7
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	25
ITEM 4.	Controls and Procedures	25

	PART II – OTHER INFORMATION
ITEM 1.	Legal Proceedings	26
ITEM 1A.	Risk Factors	26
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26
ITEM 6.	Exhibits	26
	Signatures	27

Table of Contents

Introductory Comments – Terminology

Throughout this Quarterly Report on Form 10-Q, the terms “BioSpecifics,” “Company,” “we,” “our,” and “us” refer to BioSpecifics Technologies Corp. and its subsidiary, Advance Biofactures Corp.

Throughout this Quarterly Report on Form 10-Q, Endo Global Ventures, a Bermuda unlimited liability company, an affiliate of Endo International plc, and Endo International plc are referred to collectively as “Endo”.

Introductory Comments – Forward-Looking Statements

This Report includes “forward-looking statements” within the meaning of, and made pursuant to the safe harbor provisions of, the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding our strategy, future operations, future financial position, future revenues, projected costs, prospects, plans and objectives of management, expected revenue growth, and the assumptions underlying or relating to such statements, are “forward-looking statements.” The forward-looking statements in this Report include statements concerning, among other things, the continued successful commercialization of XIAFLEX to treat Dupuytren’s contracture and Peyronie’s disease; the continued successful marketing and commercialization of XIAFLEX to treat Dupuytren’s contracture and Peyronie’s disease in Europe, Eurasia, Japan, Canada and Australia; Endo’s ability to obtain required regulatory approvals; Endo’s ability to manufacture XIAFLEX at an acceptable cost, in a timely manner and with appropriate quality; successful development of CCH for additional indications; the ability to successfully develop, market and commercialize our drug candidates; the funding of research and development at medical institutions under agreements that are generally cancellable; the future receipt of payments from Endo, including milestone and royalty payments, in connection with the License Agreement; the recognition of the $8.25 million payment from Endo in connection with the First Amendment; the plans for the repurchase of stock and reacquired stock; the suspension or discontinuation of the stock repurchase plan; the risk of doubtful accounts and how we provide for estimates of uncollectable accounts; the adoption of new accounting pronouncements and their impact; which accounting policies we consider to be critical to the estimates and judgments used to prepare the unaudited condensed consolidated financial statements; the effect of changes in interest rates on the Company’s results of operations, financial position and cash flow; changes in internal controls; the ability of internal controls and procedures to achieve desired control objectives; the existence of significant uncertain tax positions and provision for income taxes; the sufficiency of the Company’s available funds and cash flow from operations to meet our operational cash needs; whether the carrying amounts of the Company’s financial instruments approximate fair value due to the nature of the instruments; the changes in the Company’s exposure to market risk; the fair value of the Company’s stock option awards; whether the Company’s bank account balances will exceed insured limits; whether the Company is exposed to any significant credit risk on our cash; our milestone achievements and payments; whether we will continue to make payments to buy down our future royalty obligations; whether we will experience uneven payment flows due to the variance in financial terms in contracts with third parties to perform clinical trial activities and ongoing development of potential drugs; estimates concerning our development period; our interpretation of the definition of milestone; whether the Company will choose to cancel the lease prior to the expiration of the term; whether and when we will hear from Endo the results of their analysis regarding the CCH pipeline: the timing of Endo’s determination of clinical trial timelines for additional indications; and the nature of our accounts receivable balance. In some cases, these statements can be identified by forward-looking words such as “believe,” “expect,” “anticipate,” “estimate,” “likely,” “may,” “will,” “can,” and “could,” the negative or plural of these words, and other similar expressions. These forward-looking statements are predictions based on our current expectations and our projections about future events and various assumptions. There can be no assurance that we will realize our expectations or that our beliefs will prove correct. There are a number of important factors that could cause BioSpecifics’ actual results to differ materially from those indicated by such forward-looking statements, including the timing of regulatory filings and action; the ability of Endo and its partners, Asahi Kasei Pharma Corporation and Swedish Orphan Biovitrum AB, to achieve their objectives for XIAFLEX in their applicable territories; the market for XIAFLEX in, and timing, initiation and outcome of clinical trials for, additional indications including frozen shoulder, cellulite, human lipoma, canine lipoma, uterine fibroids, plantar fibromatosis and lateral hip fat all of which will determine the amount of milestone, royalty, mark-up on cost of goods sold, license and sublicense income BioSpecifics may receive; the potential of CCH to be used in additional indications; Endo modifying its objectives or allocating resources other than to XIAFLEX; and other risk factors identified in BioSpecifics’ Quarterly Reports on Form 10Q for the periods ended March 31, 2016 and June 30, 2016 and its Annual Report on Form 10-K for the year ended December 31, 2015 and its Current Reports on Form 8-K filed with the Securities and Exchange Commission. All forward-looking statements included in this Report are made as of the date hereof, are expressly qualified in their entirety by the cautionary statements included in this Report and, except as may be required by law, we assume no obligation to update these forward-looking statements.

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1:

Condensed Consolidated Financial Statements

BioSpecifics Technologies Corp.

Condensed Consolidated Balance Sheets

	September 30, 2016			December 31, 2015
	(unaudited)			(audited)
Assets
Current assets:
Cash and cash equivalents	$	4,747,745		$	5,137,875
Short term investments		45,075,570			28,347,542
Accounts receivable		3,846,752			2,547,920
Income tax receivable		-			916,843
Deferred royalty buy-down		1,215,620			1,017,981
Prepaid expenses and other current assets		554,401			383,810
Total current assets		55,440,088			38,351,971

Long-term investments		1,443,099			3,596,541
Deferred royalty buy-down – long term, net		1,913,697			2,851,423
Deferred tax assets, net		3,370,836			622,972
Patent costs, net		268,928			275,206

Total assets	$	62,436,648		$	45,698,113

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued expenses		991,867			611,009
Income taxes payable		279,333			-
Deferred revenue		1,223,479			149,378
Accrued liabilities of discontinued operations		78,138			78,138
Total current liabilities		2,572,817			838,525

Long-term deferred revenue		6,642,441			49,379

Stockholders’ equity:
Series A Preferred stock, $.50 par value, 700,000 shares authorized; none outstanding		-			-
Common stock, $.001 par value; 10,000,000 shares authorized; 7,545,167 and 7,290,167 shares issued, 7,149,559 and 6,918,579 shares outstanding as of September 30, 2016 and December 31, 2015, respectively		7,545			7,290
Additional paid-in capital		32,650,938			31,797,418
Retained earnings		27,694,041			19,238,610
Treasury stock, 395,608 and 371,588 shares at cost as of September 30, 2016 and December 31, 2015, respectively		(7,131,134	)		(6,233,109	)
Total stockholders’ equity		53,221,390			44,810,209

Total liabilities and stockholders’ equity	$	62,436,648		$	45,698,113

See accompanying notes to condensed consolidated financial statements.

Table of Contents

BioSpecifics Technologies Corp.

Condensed Consolidated Income Statements

(unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Revenues:
Royalties	$	6,119,815		$	5,277,494		$	18,843,273		$	15,574,234
Licensing revenues		762,345			1,012,345			787,034			1,037,034
Total Revenues		6,882,160			6,289,839			19,630,307			16,611,268

Costs and expenses:
Research and development		312,907			258,837			1,005,884			755,038
General and administrative		1,843,368			1,709,044			5,909,785			5,307,431
Total Cost and Expenses		2,156,275			1,967,881			6,915,669			6,062,469

Operating income		4,725,885			4,321,958			12,714,638			10,548,799

Other income:
Interest income		80,674			26,744			200,704			58,946
Other income		6,254			1,477			37,448			6,110
		86,928			28,221			238,152			65,056

Income before income tax expense		4,812,813			4,350,179			12,952,790			10,613,855
Provision for income tax expense		(1,759,220	)		(1,479,200	)		(4,497,359	)		(3,654,772	)

Net income	$	3,053,593		$	2,870,979		$	8,455,431		$	6,959,083


Basic net income per share	$	0.43		$	0.42		$	1.20		$	1.02
Diluted net income per share	$	0.42		$	0.39		$	1.16		$	0.96

Shares used in computation of basic net income per share		7,062,543			6,892,637			7,031,068			6,797,506
Shares used in computation of diluted net income per share		7,280,375			7,316,287			7,277,780			7,259,338

See accompanying notes to condensed consolidated financial statements.

Table of Contents

BioSpecifics Technologies Corp.

Condensed Consolidated Statements of Cash Flows

(unaudited)

	Nine Months Ended September 30,
Cash flows from operating activities:	2016			2015
Net income	$	8,455,431		$	6,959,083
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization		1,215,814			647,071
Stock-based compensation expense		100,428			72,305
Deferred tax expense		(2,747,864	)		441,211
Changes in operating assets and liabilities:
Accounts receivable		(1,298,832	)		(1,273,079	)
Income tax receivable		916,843			(521,121	)
Prepaid expenses and other current assets		(170,591	)		(136,152	)
Patent costs		(23,341	)		(24,204	)
Accounts payable and accrued expenses		380,858			107,372
Income taxes payable		279,333			-
Deferred revenue		7,667,163			(37,034	)
Net cash provided by operating activities		14,775,242			6,235,452

Cash flows from investing activities:
Maturity of marketable investments		32,548,040			11,043,544
Purchases of marketable investments		(47,568,734	)		(24,422,334	)
Net cash used in investing activities		(15,020,694	)		(13,378,790	)

Cash flows from financing activities:
Proceeds from stock option exercises		529,300			2,813,984
Payments for repurchase of common stock		(898,025	)		(1,182,068	)
Excess tax benefits from share-based payment arrangements		224,047			3,188,682
Net cash (used in) provided by financing activities		(144,678	)		4,820,598

Decrease in cash and cash equivalents		(390,130	)		(2,322,740	)
Cash and cash equivalents at beginning of year		5,137,875			9,810,816
Cash and cash equivalents at end of period	$	4,747,745		$	7,488,076

Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest		-			-
Taxes	$	5,825,000		$	546,000

See accompanying notes to condensed consolidated financial statements.

Table of Contents

BIOSPECIFICS TECHNOLOGIES CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2016

(Unaudited)

1.	ORGANIZATION AND DESCRIPTION OF BUSINESS

We are a biopharmaceutical company involved in the development of an injectable collagenase clostridium histolyticum, or CCH, for multiple indications. We currently have a development and license agreement with Endo Global Ventures International plc (together with Endo International plc, an affiliate of Endo Global Ventures, “Endo”) for injectable collagenase for marketed indications and indications in development. Endo assumed this agreement when Endo acquired Auxilium Pharmaceuticals, Inc. (“Auxilium”) on January 29, 2015 (the “Acquisition”). CCH is marketed as XIAFLEX® (or XIAPEX® in Europe).

On February 5, 2016, we announced that we had entered into with Endo the First Amendment (the “First Amendment”) to the Second Amended and Restated Development and Licensing Agreement (the “Auxilium Agreement”), by and between us and Auxilium, now a wholly-owned subsidiary of Endo, to amend certain provisions of the Auxilium Agreement (as amended by the First Amendment, the “License Agreement”). The effective date of the First Amendment was January 1, 2016. Pursuant to the First Amendment, we and Endo mutually agreed that in exchange for a $8.25 million lump sum payment, we will not receive future additional mark-up on cost of goods sold for sales by non-affiliated sublicensees of Endo outside of the U.S.; provided, however, that Endo will still be required to pay a mark-up on cost of goods sold for sales made in the "Endo Territory," which includes sales made in the U.S. and sales made in any other country where Endo sells the product directly or through affiliated sublicensees. We received this $8.25 million lump sum payment in February 2016 and began recognizing this income over time based on sales by non-affiliated sublicensees of Endo outside of the U.S. according to our revenue recognition policy in the second quarter of 2016.

Additionally, we agreed that Endo may opt-in early to indications, prior to our submission of a clinical trial report, with our consent, such consent not to be unreasonably withheld. For early opt-ins, Endo will be required to make an opt-in payment of $0.5 million on a per indication basis. For regular opt-ins, following our submission of a clinical trial report, Endo will be required to make an opt-in payment of $0.75 million on a per indication basis.

The two marketed indications involving our injectable collagenase are Dupuytren’s contracture and Peyronie’s disease. Prior to the Acquisition, Auxilium had, and after the Acquisition, Endo has, opted-in to the following indications: frozen shoulder, cellulite, canine lipoma, lateral hip fat, plantar fibromatosis and human lipoma. We manage the development of CCH for uterine fibroids and initiate the development of CCH in new potential indications, not licensed by Endo.

Endo is currently selling XIAFLEX in the U.S. for the treatment of Dupuytren’s contracture and Peyronie’s disease and has an agreement with Swedish Orphan Biovitrum AB (“Sobi”), pursuant to which Sobi has marketing rights for XIAPEX for Dupuytren’s contracture and Peyronie’s disease in Europe and certain Eurasian countries. Sobi is currently selling XIAPEX in Europe for the treatment of Dupuytren’s contracture and Peyronie’s disease. In addition, Endo has an agreement with Asahi Kasei Pharma Corporation (“Asahi”) pursuant to which Asahi has the right to commercialize XIAFLEX for the treatment of Dupuytren’s contracture and Peyronie’s disease in Japan. Asahi has received regulatory approval and is currently selling XIAFLEX for the treatment of Dupuytren’s contracture in Japan.

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying condensed consolidated financial statements are unaudited, but include all adjustments (consisting only of normal, recurring adjustments) which we consider necessary for a fair presentation of our financial position at such dates and the operating results and cash flows for those periods. Although we believe that the disclosures in our financial statements are adequate to make the information presented not misleading, certain information normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) has been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for quarterly reporting.

Table of Contents

The information included in this Report should be read in conjunction with the risk factors discussed in “Part I, Item 1A. Risk Factors” in our Quarterly Reports on Form 10Q for the periods ended March 31, 2016 and June 30, 2016 filed with the SEC on May 10, 2016 and August 9, 2016, respectively and our Annual Report on Form 10-K for the period ended December 31, 2015 filed with the SEC on March 14, 2016.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company and its subsidiary, Advance Biofactures Corp. (“ABC-NY”). All intercompany balances and transactions have been eliminated.

Critical Accounting Policies, Estimates and Assumptions

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires the use of management’s estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. The Company makes certain assumptions and estimates for its deferred tax assets and deferred royalty buy-down. For further details see notes “Provision for Income Taxes” and “Third-Party Royalties and Royalty Buy-Down.” Actual results may differ from those estimates.

Cash, Cash Equivalents and Investments

Cash equivalents include only securities having a maturity of three months or less at the time of purchase. Investments are stated on an amortized cost basis. The Company limits its credit risk associated with cash, cash equivalents and investments by placing its investments with banks it believes are highly creditworthy and with highly rated money market funds, certificates of deposit and municipal bonds. All investments are classified as held to maturity. As of September 30, 2016 and December 31, 2015, the aggregate fair value of these investments was $46.5 million and $31.9 million, respectively.

Fair Value Measurements

Management believes that the carrying amounts of the Company’s financial instruments, including cash, cash equivalents, held to maturity investments, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short-term nature of those instruments. As of September 30, 2016 and December 31, 2015, there were no recorded unrealized gains or losses on our investments as they are held to maturity. As of September 30, 2016, amortized cost basis of the investments approximate their fair value. At September 30, 2016 and December 31, 2015, the amortized premium included in interest income was $446,000 and $316,000, respectively.

The following table presents the Company’s schedule of maturities at September 30, 2016 and December 31, 2015:

	Maturities as of September 30, 2016				Maturities as of December 31, 2015

	1 Year or Less		Greater than 1 Year		1 Year or Less		Greater than 1 Year

Municipal bonds	$	6,917,696	$	-	$	6,461,216	$	155,826

Corporate Bonds		31,218,996		1,194,049		9,882,285		1,597,715

Certificates of deposit		6,938,878		249,050		12,004,041		1,843,000
Total	$	45,075,570	$	1,443,099	$	28,347,542	$	3,596,541

Table of Contents

The authoritative literature for fair value measurements established a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. These tiers are as follows: Level 1, defined as observable inputs such as quoted market prices in active markets; Level 2, defined as inputs other than the quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as significant unobservable inputs (entity developed assumptions) in which little or no market data exists.

As of September 30, 2016, the Company held certain investments that are required to be measured at fair value on a recurring basis. The following tables present the Company’s fair value hierarchy for these financial assets as of September 30, 2016 and December 31, 2015:

September 30, 2016	Type of Instrument	Fair Value		Level 1		Level 2		Level 3

Cash equivalents	Institutional Money Market	$	1,894,904	$	1,894,904		-		-

Investments	Municipal Bonds		6,917,696		-	$	6,917,696		-

Investments	Corporate Bonds		32,413,045		-		32,413,045		-

Investments	Certificates of Deposit		7,187,928		7,187,928		-		-

December 31, 2015	Type of Instrument	Fair Value		Level 1		Level 2		Level 3

Cash equivalents	Institutional Money Market	$	715,784	$	715,784		-		-

Investments	Municipal Bonds		6,617,042		-	$	6,617,042		-

Investments	Corporate Bonds		11,480,000		-		11,480,000		-

Investments	Certificates of Deposit		13,847,041		13,847,041		-		-

Concentration of Credit Risk and Major Customers

The Company maintains its investment in FDIC insured certificates of deposits with several banks, pre-refunded municipal bonds, municipal bonds and corporate bonds.

The Company is currently dependent on one customer, Endo, who generates almost all its revenues. For the three and nine months ended September 30, 2016, licensing, sublicensing, milestones and royalty revenues under the License Agreement with Endo were approximately $6.9 million and $19.6 million, respectively, and for the three and nine months ended September 30, 2015, the licensing, sublicensing, milestones and royalty revenues under the License Agreement with Endo were approximately $6.3 million and $16.6 million, respectively.

At September 30, 2016 and December 31, 2015, our accounts receivable balances were $3.8 million and $2.5 million, respectively.

Revenue Recognition

We currently recognize revenues resulting from the licensing and sublicensing of the use of our technology and from services we sometimes perform in connection with the licensed technology under the guidance of Accounting Standards Codification 605, Revenue Recognition (“ASC 605”).

If we determine that separate elements exist in a revenue arrangement under ASC 605, we recognize revenue for delivered elements only when the fair values of undelivered elements are known, when the associated earnings process is complete, when payment is reasonably assured and, to the extent the milestone amount relates to our performance obligation, when our customer confirms that we have met the requirements under the terms of the agreement.

Table of Contents

Revenues, and their respective treatment for financial reporting purposes, are as follows:

Royalty / Mark-Up on Cost of Goods Sold

For those arrangements for which royalty and mark-up on cost of goods sold information becomes available and collectability is reasonably assured, we recognize revenue during the applicable period in which it is earned. For interim quarterly and year-end reporting purposes, when collectability is reasonably assured, but a reasonable estimate of royalty and mark-up on cost of goods sold cannot be made, the royalty and mark-up on cost of goods sold are generally recognized in the quarter that the applicable licensee provides the written report and related information to us.

Under the License Agreement, we do not participate in the selling, marketing or manufacturing of products for which we receive royalties and a mark-up on the cost of goods sold. The royalty and mark-up on cost of goods sold will generally be recognized in the quarter that Endo provides the written reports and related information to us; that is, royalty and mark-up on cost of goods sold are generally recognized one quarter following the quarter in which the underlying sales by Endo occurred. The royalties payable by Endo to us are subject to set-off for certain patent costs.

Pursuant to the First Amendment with Endo, in exchange for a $8.25 million lump sum payment, we will not receive future additional mark-up on cost of goods sold for sales by non-affiliated sublicensees of Endo outside of the U.S.; provided, however, that Endo will still be required to pay a mark-up on cost of goods sold for sales made in the “Endo Territory,” which includes sales made in the U.S. and sales made in any other country where Endo sells the product directly or through affiliated sublicensees. We received this $8.25 million lump sum payment in February 2016. We classified this payment as deferred revenue in our balance sheet and began recognizing this income over time in the second quarter of 2016 based on sales by non-affiliated sublicensees of Endo outside of the U.S. according to our revenue recognition policy. We recognized approximately $274,000 and $546,000 for the three and nine months ended September 30, 2016, and zero in each of the 2015 corresponding periods.

Licensing Revenue

We include revenue recognized from upfront licensing, sublicensing and milestone payments in “License Revenues” in our condensed consolidated statements of income in this Quarterly Report on Form 10-Q.

Upfront License and Sublicensing Fees

We generally recognize revenue from upfront licensing and sublicensing fees when the license or sublicense agreement is signed, we have completed the earnings process and we have no ongoing performance obligation with respect to the arrangement. We recognized licensing fees related to the exercise of an opt-in right by Endo for the human lipoma indication of $750,000 for the three and nine months ended September 30, 2016 as compared to zero in each of the 2015 periods. Nonrefundable upfront technology license fees for product candidates for which we are providing continuing services related to product development are deferred and recognized as revenue over the development period. We recognized deferred revenue of $12,345 and $37,034 for the three and nine months ended September 30, 2016, respectively, and $12,345 and $37,034 for the three and nine months ended September 30, 2015, respectively.

Milestones

Milestones, in the form of additional license fees, typically represent nonrefundable payments to be received in conjunction with the achievement of a specific event identified in the license or sublicense agreement, such as completion of specified development activities and/or regulatory submissions and/or approvals. We believe that a milestone represents the culmination of a distinct earnings process when it is not associated with ongoing research, development or other performance on our part. We recognize such milestones as revenue when they become due and collection is reasonably assured. When a milestone does not represent the culmination of a distinct earnings process, we recognize revenue in a manner similar to that of an upfront license fee.

Table of Contents

The timing and amount of revenue that we recognize from licenses of technology, either from upfront fees or milestones where we are providing continuing services related to product development, are primarily dependent upon our estimates of the development period. We define the development period as the point from which research activities commence up to regulatory approval of either our or our partners’ submission, assuming no further research is necessary. As product candidates move through the development process, it is necessary to revise these estimates to consider changes to the product development cycle, such as changes in the clinical development plan, regulatory requirements, or various other factors, many of which may be outside of our control. Should the U.S. Food and Drug Administration (“FDA”) or other regulatory agencies require additional data or information, we would adjust our development period estimates accordingly. The impact on revenue of changes in our estimates and the timing thereof is recognized prospectively over the remaining estimated product development period. We did not recognize any milestone revenue in the three and nine month periods ended September 30, 2016. Milestone revenue recognized for the three and nine months ended September 30, 2015 was $1.0 million in each period. The $1.0 million milestone revenue recognized in the 2015 periods related to the first commercial sale of XIAFLEX by Asahi for the treatment of Dupuytren's contracture in Japan.

Treasury Stock

The Company accounts for treasury stock under the cost method and includes treasury stock as a component of stockholders’ equity. For the nine months ended September 30, 2016, we repurchased 24,020 shares at an average price of $37.39 as compared to the repurchase of 27,433 shares at an average price of $43.07 in the corresponding 2015 period.

Receivables and Doubtful Accounts

Trade accounts receivable are stated at the amount the Company expects to collect. We may maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. We consider the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. Our accounts receivable balance is typically due from Endo, our one large specialty pharmaceutical customer. Endo has historically paid timely and has been a financially stable organization. Due to the nature of the accounts receivable balance, we believe the risk of doubtful accounts is minimal. If the financial condition of our customer were to deteriorate, adversely affecting its ability to make payments, additional allowances would be required. We may provide for estimated uncollectible amounts through a charge to earnings and a credit to a valuation allowance. Balances that remain outstanding after we have used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. At September 30, 2016 and December 31, 2015 our accounts receivable balance was $3.8 million and $2.5 million, respectively, and was from one customer, Endo.

Deferred Revenue

Deferred revenue consists of the remaining $7.7 million related to the First Amendment with Endo of mark-up on cost of goods sold revenue for sales by non-affiliated sublicensees, approximately $62,000 related to nonrefundable upfront product license fees for product candidates for which we are providing continuing services related to product development and $100,000 related to a milestone payment withheld by Endo due to a foreign tax withholding which remains uncollected. Currently, the Company expects to recover the full amount. As of September 30, 2016 and December 31, 2015, deferred revenue was $7.9 million and $0.2 million, respectively.

Reimbursable Third-Party Development Costs

We accrued patent expenses for that are reimbursable by us under the License Agreement. We capitalize certain patent costs related to estimated third-party development costs that are reimbursable under the License Agreement. As of September 30, 2016 and December 31, 2015, our net reimbursable third party patent expense accrual was approximately $25,000 and $20,000, respectively.

Third-Party Royalties

We have entered into licensing and royalty agreements with third parties and agreed to pay certain royalties on net sales of products for specific indications. The royalty rates differ from agreement to agreement and, in certain cases, have been redacted with the permission of the SEC. No assumptions should be made that any disclosed royalty rate payable to a particular third party is the same or similar with respect to any royalty rate payable to any other third parties. We accrue third-party royalty expenses on net sales reported to us by Endo. Third-party royalty costs are generally expensed in the quarter that Endo provides the written reports and related information to us; that is, generally one quarter following the quarter in which the underlying sales by Endo occurred. For the three and nine month periods ended September 30, 2016, third-party royalty expenses were $0.4 million and $1.2 million , respectively, and for the three and nine month periods ended September 30, 2015, third-party royalty expenses were $0.3 million and $1.0 million, respectively. Our third-party royalty expense under general and administrative expenses may increase if net sales by Endo and its partners for XIAFLEX and XIAPEX increase and potential new indications for CCH are approved.

Table of Contents

Royalty Buy-Down

On March 31, 2012, we entered into an amendment to our existing agreement with Dr. Martin K. Gelbard, dated August 27, 2008, related to our future royalty obligations in connection with Peyronie’s disease. The amendment enables us to buy down a portion of our future royalty obligations in exchange for an initial cash payment of $1.5 million and five additional cash payments of $600,000, three of which have been paid as of September 30, 2016. We are currently making the payments to buy down the future royalty obligations, which royalty obligations terminate five years after first commercial sale. The Company amortizes long-term contracts with finite lives in a manner that reflects the pattern in which the economic benefits of the assets are consumed or otherwise used up. Dr. Gelbard’s agreement is amortized based on an income forecast method by estimating sales of XIAFLEX for Peyronie’s disease on an annual basis as measured by the proportion of the total estimated sales over the five year period. Related to this agreement, we amortized approximately $247,000 and $740,000 for the three and nine months ended September 30, 2016, respectively, and $221,000 and $420,000 for the three and nine months ended September 30, 2015, respectively. The remaining capitalized balance as of September 30, 2016 was $3.1 million. We perform an evaluation of the recoverability of the carrying value to determine if facts and circumstances indicate that the carrying value of the assets may be impaired and if any adjustment is warranted. Based on our evaluation as of September 30, 2016, no impairment existed and no adjustment was warranted.

R&D Expenses

R&D expenses include, but are not limited to, internal costs, such as salaries and benefits, costs of materials, lab expenses, facility costs and overhead. R&D expenses also consist of third party costs, such as medical professional fees, product costs used in clinical trials, consulting fees and costs associated with clinical study arrangements. We may fund R&D at medical research institutions under agreements that are generally cancelable. All of these costs are charged to R&D as incurred, which may be measured by percentage of completion, contract milestones, patient enrollment, or the passage of time.

Clinical Trial Expenses

Our cost accruals for clinical trials are based on estimates of the services received and efforts expended pursuant to contracts with various clinical trial centers and clinical research organizations. In the normal course of business we contract with third parties to perform various clinical trial activities in the ongoing development of potential drugs. The financial terms of these agreements are subject to negotiation and vary from contract to contract and may result in uneven payment flows. Payments under the contracts depend on factors such as the achievement of certain events, the successful enrollment of patients, the completion of portions of the clinical trial, and other similar conditions. The objective of our accrual policy is to match the recording of expenses in our financial statements to the actual cost of services received and efforts expended. As such, expenses related to each patient enrolled in a clinical trial are recognized ratably beginning upon entry into the trial and over the course of the patient’s continued participation in the trial. In the event of early termination of a clinical trial, we accrue an amount based on our estimate of the remaining non-cancelable obligations associated with the winding down of the clinical trial. Our estimates and assumptions could differ significantly from the amounts that may actually be incurred.

Stock-Based Compensation

The Company has one stock-based compensation plan in effect. Accounting Standards Codification 718, Compensation - Stock Compensation (“ASC 718”), requires the recognition of compensation expense, using a fair-value based method, for costs related to all stock options including stock options and common stock issued to our employees and directors under our stock plans. ASC 718 requires companies to estimate the fair value of stock option awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense on a straight-line basis over the requisite service periods in our condensed consolidated statements of operations.

Table of Contents

Under ASC 718, we estimate the fair value of our employee stock option awards at the date of grant using the Black-Scholes option-pricing model, which requires the use of certain subjective assumptions. The most significant of these assumptions are our estimates of the expected volatility of the market price of our stock and the expected term of an award. When establishing an estimate of the expected term of an option award, we consider the vesting period for the award, our recent historical experience of employee stock option exercises (including forfeitures) and the expected volatility of our common stock. As required under the accounting rules, we review our estimates at each grant date and, as a result, the valuation assumptions that we use to value employee stock-based awards granted in future periods may change. No stock options were granted during the nine months ended September 30, 2016 and 2015.

Further, ASC 718 requires that employee stock-based compensation costs be recognized over the requisite service period, or the vesting period, in a manner similar to all other forms of compensation paid to employees. The allocation of employee stock-based compensation costs to each operating expense line are estimated based on specific employee headcount information at each grant date and estimated stock option forfeiture rates and revised, if necessary, in future periods if actual employee headcount information or forfeitures differ materially from those estimates. As a result, the amount of employee stock-based compensation costs we recognize in each operating expense category in future periods may differ significantly from what we have recorded in the current period.

Stock-based compensation expense recognized in general and administrative expenses was approximately $33,000 and $100,000 for the three and nine months ended September 30, 2016, respectively, and $33,000 and $72,000 for the three and nine months ended September 30, 2015, respectively.

Stock Option Activity

A summary of our stock option activity during the nine months ended September 30, 2016 is presented below:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2016		562,000		$	11.91		2.51	$	17,456,220
Grants		-			-		-		-
Exercised		(255,000	)		2.08		-		-
Forfeitures or expirations		-			-		-		-
Outstanding at September 30, 2016		307,000		$	20.08		3.33	$	7,857,070
Exercisable at September 30, 2016		260,750		$	17.89		2.83	$	7,243,095

During the nine months ended September 30, 2016 and 2015, the Company received $0.5 million and $2.8 million, respectively, from stock options exercised by option holders.

Aggregate intrinsic value represents the total pre-tax intrinsic value based on the closing price of our common stock of $45.67 on September 30, 2016, which would have been received by the option holders had all option holders exercised their options as of that date. We have approximately $301,000 in unrecognized compensation cost related to stock options outstanding as of September 30, 2016, which we expect to recognize over the next 2.40 years.

Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation. Machinery and equipment, furniture and fixtures, and autos are depreciated on a straight-line basis over their estimated useful lives of five to ten years. Leasehold improvements are amortized over the lesser of their estimated useful lives or the remaining life of the lease. As of September 30, 2016 and December 31, 2015, respectively, property and equipment were fully depreciated.

Comprehensive Income

For the three and nine months ended September 30, 2016 and 2015, respectively, we had no components of other comprehensive income other than net income itself.

Table of Contents

Provision for Income Taxes

Deferred tax assets and liabilities are recognized based on the expected future tax consequences, using current tax rates, of temporary differences between the financial statement carrying amounts and the income tax basis of assets and liabilities. A valuation allowance is applied against any net deferred tax asset if, based on the weighted available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

We use the asset and liability method of accounting for income taxes, as set forth in Accounting Standards Codification. Under this method, deferred income taxes, when required, are provided on the basis of the difference between the financial reporting and income tax basis of assets and liabilities at the statutory rates enacted for future periods. We classify interest associated with income taxes under interest expense and tax penalties under other expense.

The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefit recognized in the consolidated financial statements from such position is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon the ultimate settlement. As of September 30, 2016 and 2015, respectively, the Company has not recorded any unrecognized tax benefits.

Commitments and Contingencies

On November 1, 2016, the Company entered into an agreement with the Landlord to extend the term of the lease to the Headquarters for an additional one year period (the “Extended Lease Agreement”). The one year extension will end on November 30, 2017. Pursuant to the Extended Lease Agreement, the base rent is $10,757 per month and the Company may cancel the lease with three months’ prior written notice to the Landlord at any time during the term. The Extended Lease Agreement was filed with the SEC as Exhibit 10.1 to the Company’s Quarterly Report on Form 10Q on November 9, 2016.

New Accounting Pronouncements

The Financial Accounting Standards Board, or FASB, issued in May 2014, in August 2015, March 2016 and April 2016, respectively, Accounting Standards Updates No. 2014-09, No. 2015-14, No. 2016-08, and No. 2016-10 (the “ASUs”). These ASUs were issued in connection with revenue from contracts with customers. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. In August 2015, the FASB deferred the effective date of the guidance to reporting periods, including interim periods, beginning after December 15, 2017, and will be applied retrospectively. Early adoption is not permitted. We are currently evaluating the timing, method of adoption and the expected impact that the standard could have on our consolidated financial statements and related disclosures. We are currently evaluating the expected impact that the standard could have on our consolidated financial statements and related disclosures.

In January 2016, the FASB issued new guidance on recognition and measurement of financial assets and financial liabilities. The new guidance will impact the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. All equity investments in unconsolidated entities (other than those accounted for under the equity method of accounting) will generally be measured at fair value with changes in fair value recognized through earnings. There will no longer be an available-for-sale classification (changes in fair value reported in other comprehensive income (loss) for equity securities with readily determinable fair values. In addition, the FASB clarified the need for a valuation allowance on deferred tax assets resulting from unrealized losses on available-for-sale debt securities. In general, the new guidance will require modified retrospective application to all outstanding instruments, with a cumulative effect adjustment recorded to opening retained earnings. This guidance will be effective for us on January 1, 2018. We are currently evaluating the expected impact that the standard could have on our consolidated financial statements and related disclosures.

In February 2016, FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the lease commencement date: a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). Early application is permitted. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. We are currently evaluating the expected impact that the standard could have on our consolidated financial statements and related disclosures.

Table of Contents

In March 2016, FASB issued ASU No. 2016-09 related to stock-based compensation. The new guidance simplifies the accounting for stock-based compensation transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2016, and early adoption is permitted. We are currently evaluating this guidance and the impact it will have on the consolidated financial statements and related disclosures.

In May 2016, FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which is intended to not change the core principle of the guidance in Topic 606, but rather affect only the narrow aspects of Topic 606 by reducing the potential for diversity in practice at initial application and by reducing the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. We are currently evaluating the expected impact that the standard could have on our consolidated financial statements and related disclosures.

In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses. The amendment revises the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses on financial instruments, including, but not limited to, available for sale debt securities and accounts receivable. The Company is required to adopt this standard starting in the first quarter of fiscal year 2021. Early adoption is permitted. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements and related disclosures.

3.	NET INCOME PER SHARE

In accordance with Accounting Standards Codification 260, Earnings Per Share, basic net income per share amount is computed using the weighted-average number of shares of common stock outstanding during the periods presented, while diluted net income per share is computed using the sum of the weighted-average number of common and common equivalent shares outstanding. Common equivalent shares used in the computation of diluted earnings per share result from the assumed exercise of stock options using the treasury stock method.

The following table summarizes the number of common equivalent shares that were excluded for the calculation of diluted net income per share reported in the condensed consolidated statement of operations.

	Three Months Ended September 30,		Nine Months Ended September 30,
	2016	2015	2016	2015
Stock options	20,000	20,000	20,000	20,000

At September 30, 2016, the Company had 20,000 options, which have an exercise price of $29.21, and will vest upon the achievement of certain performance criteria, which have not yet been met. These options expire on December 2, 2019.

4.	ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of the following:

	September 30, 2016		December 31, 2015
Trade accounts payable and accrued expenses	$	728,425	$	372,367
Accrued legal and other professional fees		66,775		74,138
Accrued payroll and related costs		196,667		164,504
Total	$	991,867	$	611,009

Table of Contents

5.	PATENT COSTS

We amortize intangible assets with definite lives on a straight-line basis over their remaining estimated useful lives, ranging from one to twelve years, and review for impairment on a quarterly basis and when events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We analyze our intangible assets, specifically, capitalized patent costs, on an annual basis for any indicator that an impairment exist.

We capitalized legal patent costs related to patent prosecution and maintenance. For the nine months ended September 30, 2016, we increased our capitalized patent costs by approximately $23,300, based on reports provided to us by Endo. These patent costs are creditable against future royalty revenues. For each period presented below, net patent costs consisted of:

	September 30, 2016			December 31, 2015
Patents	$	720,600		$	697,260
Accumulated amortization		(451,672	)		(422,054	)
	$	268,928		$	275,206

The amortization expense for patents for the three and nine months ended September 30, 2016 was approximately $10,300 and $29,600, respectively, and the amortization expense for patents for the three and nine months ended September 30, 2015 was approximately $11,000 and $34,000, respectively. The estimated aggregate amortization expense for the remaining three months of 2016 and each of the years below is approximately as follows:

October 1, 2016 to December 31, 2016	$	10,600
2017		38,700
2018		38,700
2019		38,700
2020		27,400
Thereafter	$	114,800

6.	PROVISION FOR INCOME TAXES

In determining our provision for income taxes, we consider all available information, including operating results, ongoing tax planning, and forecasts of future taxable income. The significant components of the Company’s deferred tax assets consist of stock-based compensation and deferred revenues. For the three and nine months ended September 30, 2016, the provision for income taxes was $1.8 million and $4.5 million, respectively. As of September 30, 2016 and December 31, 2015, our remaining deferred tax assets were approximately $3.4 million and $0.6 million, respectively.

For the three and nine month periods ended September 30, 2015, the provision for income taxes was $1.5 million and $3.7 million, respectively.

As of September 30, 2016, the Company believes that there are no significant uncertain tax positions and no amounts have been recorded for interest and penalties.

7.	SUBSEQUENT EVENTS

On November 8, 2016, following the change in Endo management, Endo announced as part of its earnings call that an analysis is ongoing of the XIAFLEX exercised but non-marketed indications, including frozen shoulder, cellulite, canine lipoma, lateral hip fat, plantar fibromatosis and human lipoma, so that Endo can best prioritize its R & D efforts and determine clinical trial timelines moving forward.

Table of Contents

Item 2:

Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the condensed consolidated financial statements and the related notes thereto included elsewhere in this Report and is qualified by reference to them.

Overview

We are a biopharmaceutical company involved in the development of an injectable collagenase clostridium histolyticum, or CCH, for multiple indications. We currently have a development and license agreement with Endo for injectable collagenase for marketed indications and indications in development. Endo assumed this agreement when Endo acquired Auxilium. CCH is marketed as XIAFLEX® (or XIAPEX® in Europe).

Endo is currently selling XIAFLEX in the U.S. for the treatment of Dupuytren’s contracture and Peyronie’s disease and has an agreement with Sobi, pursuant to which Sobi has marketing rights for XIAPEX for Dupuytren’s contracture and Peyronie’s disease in Europe and certain Eurasian countries. Sobi is currently selling XIAPEX in Europe for the treatment of Dupuytren’s contracture and Peyronie’s disease. In addition, Endo has an agreement with Asahi pursuant to which Asahi has the right to commercialize XIAFLEX for the treatment of Dupuytren’s contracture and Peyronie’s disease in Japan. Asahi has received regulatory approval and is currently selling XIAFLEX for the treatment of Dupuytren’s contracture in Japan.

Operational Highlights

On July 29, 2016, Endo notified us that it was exercising its right to opt-in for the human lipoma indication, bringing their total number of licensed indications to eight. As a result of Endo's opt-in for this indication, in addition to an opt-in payment of $750,000 received in the third quarter of 2016, they are now responsible for all costs for future clinical development and will owe potential future milestone, royalty and mark-up on cost of goods payments to us.

Outlook

We generated revenue from primarily one source, the License Agreement. Under the License Agreement, we receive license, sublicense income, royalties, milestones and mark-up on cost of goods sold payments related to the sale, regulatory submissions and approval of XIAFLEX as described above.

Significant Risks

We are dependent to a significant extent on third parties, and our principal licensee, Endo, may not be able to continue successfully commercializing XIAFLEX for Dupuytren’s contracture and Peyronie’s disease, successfully develop CCH for additional indications, obtain required regulatory approvals, manufacture XIAFLEX at an acceptable cost, in a timely manner and with appropriate quality, or successfully market products or maintain desired margins for products sold, and, as a result, we may not achieve sustained profitable operations.

The Company maintains bank account balances, which, at times, may exceed insured limits. The Company has not experienced any losses with these accounts and believes that it is not exposed to any significant credit risk on cash. The Company maintains its investment in FDIC insured certificates of deposits with several banks, municipal bonds and corporate bonds.

For more information regarding the risks facing the Company, please see the risk factors discussed under the heading “Risk Factors” under Item 1A of Part 2 within this report and our Quarterly Reports on Form 10Q for the periods ended March 31, 2016 and June 30, 2016 filed with the SEC on May 10, 2016 and August 9, 2016, respectively, and under item 1A of Part 1 of our Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on March 14, 2016.

Table of Contents

Critical Accounting Policies, Estimates and Assumptions

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on historical experience and on various other assumptions that we believe are reasonable under the circumstances. The financial information at September 30, 2016 and for the three and nine months ended September 30, 2016 and 2015 is unaudited, but includes all adjustments (consisting only of normal recurring adjustments) which, in the opinion of management, are necessary to state fairly the financial information set forth herein. The December 31, 2015 balance sheet amounts and disclosures included herein have been derived from the Company’s December 31, 2015 audited consolidated financial statements. The interim results are not necessarily indicative of results to be expected for the full fiscal year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2015 included in the Company’s Annual Report on Form 10-K and with the unaudited condensed consolidated financial statements included in our Quarterly Reports on Form 10-Q for the first and second quarter of 2016 filed with the SEC. While our significant accounting policies are described in more detail in the notes to our unaudited condensed consolidated financial statements, we believe the following accounting policies to be critical to the judgments and estimates used in the preparation of our unaudited condensed consolidated financial statements. Actual results have differed in the past, and may differ in the future, from our estimates and could impact our earnings in any period during which an adjustment is made.

Revenue Recognition

We currently recognize revenues resulting from the licensing, sublicensing and use of our technology and from services we sometimes perform in connection with the licensed technology.

We enter into product development licenses and collaboration agreements that may contain multiple elements, such as upfront license and sublicense fees, milestones related to the achievement of particular stages in product development and royalties. As a result, significant contract interpretation is sometimes required to determine the appropriate accounting, including whether the deliverables specified in a multiple-element arrangement should be treated as separate units of accounting for revenue recognition purposes, and if deliverables should be treated as separate units, how the aggregate contract value should be allocated among the deliverable elements and when to recognize revenue for each element.

We recognize revenue for delivered elements only when the fair values of undelivered elements are known, when the associated earnings process is complete and, to the extent the milestone amount relates to our performance obligation, when our licensee confirms that we have met the requirements under the terms of the agreement, and when payment is reasonably assured. Changes in the allocation of the contract value between various deliverable elements might impact the timing of revenue recognition, but in any event, would not change the total revenue recognized on the contract. For example, nonrefundable upfront product license fees for product candidates for which we are providing continuing services related to product development are deferred and recognized as revenue over the development period.

Milestones, in the form of additional license fees, typically represent nonrefundable payments to be received in conjunction with the achievement of a specific event identified in a contract, such as completion of specified clinical development activities and/or regulatory submissions and/or approvals. We believe that a milestone represents the culmination of a distinct earnings process when it is not associated with ongoing research, development or other performance on our part. We recognize such milestones as revenue when they become due and payment is reasonably assured. When a milestone does not represent the culmination of a distinct earnings process, we recognize revenue in a manner similar to that of an upfront product license fee.

We recognize revenues from product sales in other income when there is persuasive evidence that an arrangement exists, title passes, the price is fixed and determinable, and payment is reasonably assured.

Table of Contents

Royalty / Mark-up on Cost of Goods Sold

For those arrangements for which royalty and mark-up on cost of goods sold information becomes available and collectability is reasonably assured, we recognize revenue during the applicable period earned. For interim quarterly reporting purposes, when collectability is reasonably assured, but a reasonable estimate of royalty and mark-up on cost of goods sold cannot be made, the royalty and mark-up on cost of goods sold are generally recognized in the quarter that the applicable licensee provides the written report and related information to us.

Pursuant to the First Amendment with Endo, in exchange for a $8.25 million lump sum payment, we will not receive future additional mark-up on cost of goods sold for sales by non-affiliated sublicensees of Endo outside of the U.S.; provided, however, that Endo will still be required to pay a mark-up on cost of goods sold for sales made in the “Endo Territory,” which includes sales made in the U.S. and sales made in any other country where Endo sells the product directly or through affiliated sublicensees. We received this $8.25 million lump sum payment in February 2016. We classified this payment as deferred revenue in our balance sheet and began recognizing this income over time beginning in the second quarter of 2016 based on sales by non-affiliated sublicensees of Endo outside of the U.S. according to our revenue recognition policy. We recognized approximately $274,000 and $546,000 for the three and nine months ended September 30, 2016, respectively, and zero in each of the 2015 corresponding periods.

Reimbursable Third-Party Development Costs

We accrue patent expenses for that are reimbursable by us under the License Agreement. We capitalize certain patent costs related to estimated third-party development costs that are reimbursable under the License Agreement. As of September 30, 2016 and December 31, 2015, our estimated net reimbursable third party patent costs accrual were approximately $25,000 and $20,000, respectively.

Receivables

At September 30, 2016 and December 31, 2015 our accounts receivable balance which consists of royalties, mark-up on costs of goods sold and a portion of a milestone payment from Endo due to a foreign tax withholding, was $3.8 million and $2.5 million, respectively, and was from one customer, Endo.

Deferred Revenue

Deferred revenue consists of the mark-up on cost of goods sold for sales by non-affiliated sublicensees and will be recognized as income over time based on sales by non-affiliated sublicensees of Endo outside of the U.S in accordance with our revenue recognition policy beginning in the second quarter of 2016. In addition, deferred revenue consists of licensing fees related to the cash payments received under the License Agreement in prior years and amortized over the expected development period of certain indications for XIAFLEX and a portion of a milestone payment withheld by Endo due to a foreign tax withholding which remains uncollected. As of September 30, 2016 and December 31, 2015, deferred revenue was approximately $7.9 million and $0.2 million, respectively.

Third-Party Royalties

We have entered into licensing and royalty agreements with third parties and have agreed to pay certain royalties on net sales of products for specific indications. The royalty rates differ from agreement to agreement and, in certain cases, have been redacted with the permission of the SEC. No assumptions should be made that any disclosed royalty rate payable to any particular third party are the same or similar with respect to any royalty rate payable to any other third parties. We accrue third-party royalty expenses on net sales reported to us by Endo. Third-party royalty costs are generally expensed in the quarter that Endo provides the written reports and related information to us; that is, generally one quarter following the quarter in which the underlying sales by Endo occurred. For the three and nine month periods ended September 30, 2016, third-party royalty expenses were $0.4 million and $1.2 million, respectively, and for the three and nine month periods ended September 30, 2015, third-party royalty expenses were $0.3 million and $1.0 million, respectively. Our third-party royalty expense under general and administrative expenses may increase if net sales by Endo and its partners for XIAFLEX and XIAPEX increase and potential new indications for CCH are approved.

Table of Contents

Royalty Buy-Down

Stock Based Compensation

Under ASC 718, we estimate the fair value of our employee stock option awards at the date of grant using the Black-Scholes option-pricing model, which requires the use of certain subjective assumptions. The most significant assumptions are our estimates of the expected volatility of the market price of our stock and the expected term of an option award. Expected volatility is based on the historical volatility of our common stock. When establishing an estimate of the expected term of an option award, we consider the vesting period for the award, our historical experience of employee stock option exercises (including forfeitures) and the expected volatility of our common stock. We review our estimates at each grant date and, as a result, we are likely to change our valuation assumptions used to value future employee stock-based awards granted, to the extent any such awards are granted.

Further, ASC 718 requires that employee stock-based compensation costs be recognized over the requisite service period, or the vesting period, in a manner similar to all other forms of compensation paid to employees. The allocation of employee stock-based compensation costs to each operating expense line is estimated based on specific employee headcount information at each grant date and estimated stock option forfeiture rates and are revised, if necessary, in future periods if actual employee headcount information or forfeitures differ materially from those estimates. As a result, the amount of employee stock-based compensation costs we recognize in each operating expense category in future periods may differ significantly from what we have recorded in the current period.

RESULTS OF OPERATIONS

THREE MONTHS ENDED SEPTEMBER 30, 2016 COMPARED TO THREE MONTHS ENDED SEPTEMBER 30, 2015

Revenues

Royalties

Royalties consist of royalties and the mark-up on cost of goods sold under the License Agreement. Total royalty and mark-up on cost of goods sold for the three month period ended September 30, 2016 were $6.1 million as compared to $5.3 million in the corresponding 2015 period, an increase of $0.8 million or 15%. This increase in royalties and the mark-up on cost of goods sold was primarily due to the increase in sales of XIAFLEX for the treatment of Dupuytren’s contracture and Peyronie’s disease.

Licensing Revenue

Licensing revenue consists of licensing fees, sublicensing fees and milestones. We recognized licensing fees related to the exercise of an opt-in right by Endo for the human lipoma indication of $750,000 for the three months ended September 30, 2016 as compared to zero in the corresponding 2015 period. In addition, we recognized certain licensing fees related to the cash payments received under the Auxilium Agreement in prior years and amortized them over the expected development period. For each of the three month periods ended September 30, 2016 and 2015, we recognized licensing revenue related to the development of injectable collagenase of approximately $12,000.

Table of Contents

Milestone revenue recognized for the three months ended September 30, 2016 was zero as compared to $1.0 million for the corresponding 2015 period. The $1.0 million milestone revenue recognized in the corresponding 2015 period related to the first commercial sale of XIAFLEX by Asahi for the treatment of Dupuytren's contracture in Japan.

Research and Development Activities and Expenses

R&D expenses include, but are not limited to, internal costs, such as salaries and benefits, costs of materials, lab expenses, facility costs and overhead. R&D expenses also consist of third party costs, such as medical professional fees, product costs used in clinical trials, consulting fees, and costs associated with clinical study arrangements. For each of the three months ended September 30, 2016 and 2015, R&D expenses were $0.3 million and are primarily related to the development work associated with our clinical programs, preclinical and other R&D programs.

We manage the development of CCH for uterine fibroids and initiate the development of CCH in new potential indications, not licensed by Endo. We have finished the development work on human lipomas. On July 29, 2016, Endo exercised its opt-in right under the license agreement with respect to the human lipoma indication.

The following table summarizes our R&D expenses related to our development programs:

	Three Months Ended September 30, 2016		Three Months Ended September 30, 2015
Program
Human Lipoma	$	100,973	$	68,606
Uterine Fibroids		18,762		19,915
Pre-clinical/other research projects		193,172		170,316

The successful development of drugs is inherently difficult and uncertain. Our business requires investments in R&D over many years, often for drug candidates that may fail during the R&D process. Even if the Company is able to successfully complete the development of our drug candidates, our long-term prospects depend upon our ability and the ability of our partners, particularly with respect to XIAFLEX and CCH, to continue to successfully commercialize these drug candidates.

There is significant uncertainty regarding our ability to successfully develop drug candidates in other indications. These risks include the uncertainty of:

the nature, timing and estimated costs of the efforts necessary to complete the development of our drug candidate projects;

the anticipated completion dates for our drug candidate projects;

the scope, rate of progress and cost of our clinical trials that we are currently running or may commence in the future with respect to our drug candidate projects;

the scope, rate of progress of our preclinical studies and other R&D activities related to our drug candidate projects;

the clinical trial results for our drug candidate projects;

the cost of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights relating to our drug candidate projects;

the terms and timing of any strategic alliance, partnership, joint venture, licensing and other arrangements that we have or may establish in the future relating to our drug candidate projects;

the cost and timing of regulatory approvals with respect to our drug candidate projects; and

the cost of establishing clinical supplies for our drug candidate projects.

Table of Contents

We believe that our current resources and liquidity are sufficient to advance our significant current clinical and R&D projects.

General and Administrative Expenses

General and administrative expenses consist primarily of salaries and other related costs for personnel, third-party royalty fees, amortization of deferred royalty buy-down, consultant costs, legal fees, investor relations, professional fees and overhead costs. General and administrative expenses for the three months ended September 30, 2016 and 2015 were $1.8 million and $1.7 million, respectively. The increase in general and administrative expenses was mainly due to the increased amortization of the deferred royalty buy-down, third party royalty and consulting fees.

Other Income

Other income for the three months ended September 30, 2016 was approximately $87,000 compared to $28,000 in the corresponding 2015 period. Other income consists of interest earned on our investments and product sales of collagenase for laboratory use.

Provision for Income Taxes

Our deferred tax liabilities and deferred tax assets are impacted by events and transactions arising in the ordinary course of business, R&D activities, vesting of nonqualified options, deferred revenues and other items. The provision for income taxes is based on an estimated effective tax rate derived from an estimate of condensed consolidated earnings before taxes, adjusted for nondeductible expenses and other permanent differences for the fiscal year.

For the three month period ended September 30, 2016, our provision for income taxes was $1.8 million. Our taxes payable as of September 30, 2016 were reduced by $0.2 million due to the windfall associated with the disqualified sale of incentive stock options and the exercise of nonqualified options. Our deferred tax assets remained unchanged as of September 30, 2016.

For the three month period ended September 30, 2015, the provision for income taxes was $1.5 million.

Net Income

For the three months ended September 30, 2016, we recorded net income of $3.1 million, or $0.43 per basic common share and $0.42 per diluted common share, compared to a net income of $2.9 million, or $0.42 per basic common share and $0.39 per diluted common share, for the same period in 2015.

NINE MONTHS ENDED SEPTEMBER 30, 2016 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30, 2015

Revenues

Royalties

Royalties consist of royalties and the mark-up on cost of goods sold under the License Agreement. Total royalty and mark-up on cost of goods sold for the nine month period ended September 30, 2016 were $18.8 million as compared to $15.6 million in the corresponding 2015 period, an increase of $3.2 million or 21%. This increase in royalties and the mark-up on cost of goods sold was primarily due to the increase in sales of XIAFLEX for the treatment of Dupuytren’s contracture and Peyronie’s disease.

Licensing Revenue

Licensing revenue consists of licensing fees, sublicensing fees and milestones. We recognized licensing fees related to the exercise of an opt-in right by Endo for the human lipoma indication of $750,000 for the nine months ended September 30, 2016 as compared to zero in the corresponding 2015 period. In addition, we recognized certain licensing fees related to the cash payments received under the Auxilium Agreement in prior years and amortized them over the expected development period. For each of the nine month periods ended September 30, 2016 and 2015, we recognized licensing revenue related to the development of injectable collagenase of approximately $37,000.

Table of Contents

Milestone revenue recognized for the nine months ended September 30, 2016 was zero as compared to $1.0 million for the corresponding 2015 period. The $1.0 million milestone revenue recognized in the corresponding 2015 period related to the first commercial sale of XIAFLEX by Asahi for the treatment of Dupuytren's contracture in Japan.

Research and Development Activities and Expenses

R&D expenses include, but are not limited to, internal costs, such as salaries and benefits, costs of materials, lab expenses, facility costs and overhead. R&D expenses also consist of third party costs, such as medical professional fees, product costs used in clinical trials, consulting fees and costs associated with clinical study arrangements. For the nine months ended September 30, 2016 and 2015, R&D expenses were $1.0 million and $0.8 million, respectively. This increase is primarily related to the development work associated with our clinical programs, preclinical and other R&D programs.

The following table summarizes our R&D expenses related to our development programs:

	Nine Months Ended September 30, 2016		Nine Months Ended September 30, 2015
Program
Human Lipoma	$	352,073	$	193,704
Uterine Fibroids		111,782		26,858
Pre-clinical/other research projects		542,029		534,476

There is significant uncertainty regarding our ability to successfully develop drug candidates in other indications. These risks include the uncertainty of:

the nature, timing and estimated costs of the efforts necessary to complete the development of our drug candidate projects;

the anticipated completion dates for our drug candidate projects;

the scope, rate of progress and cost of our clinical trials that we are currently running or may commence in the future with respect to our drug candidate projects;

the scope, rate of progress of our preclinical studies and other R&D activities related to our drug candidate projects;

the clinical trial results for our drug candidate projects;

the cost of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights relating to our drug candidate projects;

the terms and timing of any strategic alliance, partnership, joint venture, licensing and other arrangements that we have or may establish in the future relating to our drug candidate projects;

the cost and timing of regulatory approvals with respect to our drug candidate projects; and

the cost of establishing clinical supplies for our drug candidate projects.

Table of Contents

We believe that our current resources and liquidity are sufficient to advance our significant current clinical and R&D projects.

General and Administrative Expenses

General and administrative expenses consist primarily of salaries and other related costs for personnel, third-party royalty fees, amortization of deferred royalty buy-down, consultant costs, legal fees, investor relations, professional fees and overhead costs. General and administrative expenses for the nine months ended September 30, 2016 and 2015 were $5.9 million and $5.3 million, respectively. The increase in general and administrative expenses was mainly due to the increased amortization of the deferred royalty buy-down, third party royalty, patent fees, director fees and stock-based compensation partially offset by lower legal and consulting fees.

Other Income

Other income for the nine months ended September 30, 2016 was approximately $238,000 compared to $65,000 in the corresponding 2015 period. Other income consists of interest earned on our investments and product sales of collagenase for laboratory use.

Provision for Income Taxes

For the nine month period ended September 30, 2016, our provision for income taxes was $4.5 million. Our taxes payable as of September 30, 2016 were reduced by $0.2 million due to the windfall associated with the disqualified sale of incentive stock options and the exercise of nonqualified options. Our deferred tax assets increased by $2.7 million due to the deferred revenue associated with the receipt of $8.25 million under the First Amendment with Endo on sales by non-affiliated sublicensees of Endo outside of the U.S. As of September 30, 2016, our remaining deferred tax assets were approximately $3.4 million.

For the nine month period ended September 30, 2015, the provision for income taxes was $3.7 million.

Net Income

For the nine months ended September 30, 2016, we recorded net income of $8.5 million, or $1.20 per basic common share and $1.16 per diluted common share, compared to a net income of $7.0 million, or $1.02 per basic common share and $0.96 per diluted common share, for the same period in 2015.

Liquidity and Capital Resources

To date, we have financed our operations primarily through product sales, licensing revenues and royalties under agreements with third parties and sales of our common stock. At September 30, 2016 and December 31, 2015, we had cash and cash equivalents and investments in the aggregate of approximately $51.3 million and $37.1 million, respectively. We currently anticipate that our available funds and cash flow from operations will be sufficient to meet our operational cash needs for at least the next 12 months.

Net cash provided by operating activities for the nine months ended September 30, 2016 and 2015 was $14.8 million and $6.2 million, respectively. Net cash provided by operating activities in the 2016 period was primarily attributable to our net income of $8.5 million, an increase in operating assets and liabilities of $7.8 million of which $7.7 million was related to the First Amendment with Endo for mark-up on cost of goods sold for sales by non-affiliated sublicensees of Endo outside of the U.S. Non-cash items included amortization, stock-based compensation expense, and deferred taxes which was reduced by adjustments to reconcile net income to net cash provided by operating activities of $1.4 million. Net cash provided by operating activities in the 2015 period was primarily attributable to our net income of $7.0 million, adjustments to reconcile net income to net cash provided by operating activities of $1.2 million and changes in operating assets and liabilities of $1.9 million. Non-cash items included amortization, stock-based compensation expense, deferred taxes and deferred revenue.

Table of Contents

Net cash used in investing activities for the nine months ended September 30, 2016 was $15.0 million as compared to $13.4 million for the corresponding 2015 period. The net cash used in investing activities in the 2016 period reflects the maturing of $32.5 million and investment of $47.6 million in marketable securities. The net cash used in investing activities in the 2015 period reflects the maturing of $11.0 million and investment of $24.4 million in marketable securities.

Net cash used in financing activities for the nine months ended September 30, 2016 was $0.1 million as compared to net cash provided by financing activities of $4.8 million in the corresponding 2015 period. In the 2016 period, net cash used in financing activities was mainly due to the repurchase of $0.9 million of our common stock under our stock repurchase program partially offset by the excess tax benefits related to share-based payments of $0.2 million and the proceeds received from stock option exercises of approximately $0.5 million. In the 2015 period, net cash provided by financing activities was mainly due to the excess tax benefits related to share-based payments of $3.2 million and the proceeds received from stock option exercises of approximately $2.8 million partially offset by the repurchase of $1.2 million of our common stock under our stock repurchase program.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements as defined in Item 303(a)(4) of Regulation S-K.

Item 3:

Quantitative and Qualitative Disclosures About Market Risk

We do not use derivative financial instruments or derivative commodity instruments for trading purposes. Our financial instruments consist of cash, cash equivalents, investments, trade accounts receivable, accounts payable and long-term obligations. We consider investments that, when purchased, have a remaining maturity of three months or less to be cash equivalents.

Our investment portfolio is subject to interest rate risk, although limited given the short term nature of the investments, and will fall in value in the event market interest rates increase. All of our cash and cash equivalents and investments at September 30, 2016, amounting to approximately $51.3 million, were maintained in bank demand accounts, money market accounts, certificates of deposit, corporate bonds and municipal bonds. We do not hedge our interest rate risks, as we believe reasonably possible near-term changes in interest rates would not materially affect our results of operations, financial position or cash flows.

We are subject to market risks in the normal course of our business, including changes in interest rates. There have been no significant changes in our exposure to market risks since December 31, 2015.

Item 4:

Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company, under the supervision and with the participation of Thomas L. Wegman, the Company’s President, Principal Executive Officer and Principal Financial Officer, evaluated the effectiveness of its disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on that evaluation, Thomas L. Wegman, in his capacity as the sole named executive officer of the Company, the Company’s Principal Executive Officer and the Company’s Principal Financial Officer, concluded that the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by it in reports the Company files or submits under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and that such material information is accumulated and communicated to the Company’s management, including its Principal Executive Officer and Principal Financial Officer, to allow timely decisions regarding required disclosure. Because of the inherent limitations in all control systems, any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Furthermore, the Company’s controls and procedures can be circumvented by the individual acts of some persons, by collusion of two or more people or by management override of such control, and misstatements due to error or fraud may occur and not be detected on a timely basis.

Table of Contents

Changes in Internal Controls

There were no changes in our internal controls over financial reporting during the quarter ended September 30, 2016 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II: OTHER INFORMATION

Item 1.

Legal Proceedings

None.

Item 1A.

Risk Factors

The outcome and effects of Endo’s ongoing analysis of the XIAFLEX exercised but non-marketed indications is uncertain.

Following the change in Endo management, Endo has announced an analysis of the XIAFLEX exercised but non-marketed indications, including frozen shoulder, cellulite, canine lipoma, lateral hip fat, plantar fibromatosis and human lipoma, so that Endo can best prioritize its R & D efforts and determine clinical trial timelines moving forward. At the present time, it is unclear how long this analysis will take to complete and the effect that it will have on Endo’s willingness to develop further such exercised but non-marketed indications. It is also unclear what effect, if any, the analysis will have on the willingness of Endo to exercise its rights to opt in for any additional indications, including uterine fibroid, currently under development by the Company.

In addition to the other information contained elsewhere in this Report, you should carefully consider the risk factors discussed in “Part I, Item 1A. Risk Factors” in our Quarterly Report on Form 10-Q for the periods ended March 31, 2016 and June 30, 2016 filed with the SEC on May 10, 2016 and August 9, 2016, respectively, and our Annual Report on Form 10-K for the period ended December 31, 2015 filed with the SEC on March 4, 2016, which could materially affect our business, financial condition or future results.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

During the nine month period ended September 30, 2016, we did not issue any unregistered equity securities.

Issuer Purchases of Equity Securities

The following table presents a summary of share repurchases made by us during the quarter ended September 30, 2016.

Period	Total Number of Shares Purchased ⁽²⁾		Average Price Paid Per Share ⁽³⁾		Total Number of Shares Purchased as Part of Publicly Announced Plan		Maximum Number (or Dollar Value) of Shares that may yet be Purchased under the Plan
							$	927,193	⁽¹⁾
July 1, 2016 – July 31, 2016		1,655	$	40.62		256,053		859,969
August 1, 2016 – August 31, 2016		2,235		38.66		258,288		773,563
September 1, 2016 – September 30, 2016		1,400		36.84		259,688		721,986

(1)

On August 17, 2015, we announced that our Board of Directors had authorized the repurchase of up to $2.5 million of our common stock under the stock repurchase program.

(2)

The purchases were made in open-market transactions in compliance with rule 10b-18 or under the company’s 10b-18 plan.

(3)

Includes commissions paid, if any, related to the stock repurchase transactions.

Item 6.

Exhibits

	10.1*	Amended Agreement of Lease, dated as of November 1, 2016, among the Company, ABC-NY and 35 Wilbur Street Associates.
	31*	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Rule13a-14(a)/15d-14(a).
	32**	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002.
	101*	The following materials from BioSpecifics Technologies Corp.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Cash Flows, and (iv) the Notes to the Condensed Consolidated Financial Statements.

* filed herewith

** furnished herewith

Table of Contents

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.

	BIOSPECIFICS TECHNOLOGIES CORP.
	(Registrant)

Date: November 9, 2016	/s/ Thomas L. Wegman
	Thomas L. Wegman
	President, Principal Executive Officer and Principal Financial Officer

EX-10.1 2 ex10_1.htm EXHIBIT 10.1

Exhibit 10.1

35 Wilbur Street Associates, LLC

19 Wilbur Street

Lynbrook, NY 11563

November 1, 2016

Mr. Thomas Wegman

Advance Biofactures Corp.

35 Wilbur Street

Lynbrook, NY 11563

Re:	Lease dated November 21, 2013 between 35 Wilbur Street Assoc., LLC and Advance Biofactures Corp., premises; 35 Wilbur Street, Lynbrook, NY 11563.

Dear Mr. Wegman:

It is our understanding that you would like to renew the lease. The current lease expires on November 30, 2016. We propose that the current terms of the lease remain in effect except where the following is concerned:

1)	The landlord will take occupancy of additional warehouse space in the rear of the building as discussed and agreed.

2)	The lease will be renewed for 1 (one) year at the rate of $129,082 annually. $10,756.83/ month.

3)	This will be less 14.89% of the utilities.

4)	The proposed warehouse space must be delivered to the landlord empty and broom clean.

5)	The Tenant has the option to cancel this lease, without penalty, by providing the Landlord with three (3) months prior notice at any time during the Term of this lease.

A current copy of the certificate of liability insurance is included.

Sincerely yours,

Valorie Mancuso

Controller

Thomas Wegman, President		Richard Arote
Advance Biofactures Corp.		35 Wilbur Street Assoc., LLC

/S/ Thomas Wegman		/S/ Richard Arote

State of New York		ss:
County of Nassau

On this 1st day of November , 2015, before me personally came, Thomas Wegman to me known, who, being by me duly sworn, did say that he is the President of Advance Biofactures Corp. and that he signed his name thereto by authority of the board of directors.

/S/ Helen L. Piazza

EX-31 3 ex31.htm EXHIBIT 31

Exhibit 31

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER

PURSUANT TO RULES 13a-14(a) AND 15d-14(a) OF

THE SECURITIES EXCHANGE ACT OF 1934

I, Thomas L. Wegman, certify that:

1.	I have reviewed this report on Form 10-Q for the quarterly period ended September 30, 2016 of BioSpecifics Technologies Corp.;

2.	Based on my knowledge, the 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 report;

3.	Based on my knowledge, the financial statements, and other financial information included in this 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 report;

The registrant’s other certifying officer(s) 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 Rules 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 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 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(s) 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 controls over financial reporting.

Date: November 9, 2016

/s/ Thomas L. Wegman
Thomas L. Wegman
President, Principal Executive Officer and Principal Financial Officer

EX-32 4 ex32.htm EXHIBIT 32

Exhibit 32

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER

PURSUANT TO RULES 13a-14(b) AND 15d-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

The undersigned, Thomas L. Wegman, the President, Principal Executive Officer and Principal Financial Officer of BioSpecifics Technologies Corp. (the “Company”), DOES HEREBY CERTIFY that:

1.	The Company’s report on Form 10-Q for the quarterly period ended September 30, 2016 (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act); and

2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

IN WITNESS WHEREOF, the undersigned has executed this certification this 9th day of November, 2016.

/s/ Thomas L. Wegman
Thomas L. Wegman
President, Principal Executive Officer and Principal Financial Officer

This certification shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to liability pursuant to that section. Such certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-101.INS 5 bstc-20160930.xml XBRL INSTANCE DOCUMENT 0000875622 2016-01-01 2016-09-30 0000875622 2016-11-08 0000875622 2015-12-31 0000875622 2016-09-30 0000875622 2015-01-01 2015-09-30 0000875622 2015-07-01 2015-09-30 0000875622 2016-07-01 2016-09-30 0000875622 2014-12-31 0000875622 2015-09-30 0000875622 bstc:EndoMember 2016-02-05 0000875622 bstc:EndoMember 2016-02-01 2016-02-29 0000875622 2015-01-01 2015-12-31 0000875622 us-gaap:CorporateBondSecuritiesMember 2015-12-31 0000875622 us-gaap:MunicipalBondsMember 2015-12-31 0000875622 us-gaap:CorporateBondSecuritiesMember 2016-09-30 0000875622 us-gaap:CertificatesOfDepositMember 2015-12-31 0000875622 us-gaap:MunicipalBondsMember 2016-09-30 0000875622 us-gaap:CertificatesOfDepositMember 2016-09-30 0000875622 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2016-09-30 0000875622 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2015-12-31 0000875622 us-gaap:FairValueInputsLevel2Member us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember 2016-09-30 0000875622 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel3Member 2016-09-30 0000875622 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member 2015-12-31 0000875622 us-gaap:FairValueInputsLevel2Member us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember 2015-12-31 0000875622 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2016-09-30 0000875622 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MoneyMarketFundsMember 2015-12-31 0000875622 us-gaap:CertificatesOfDepositMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2015-12-31 0000875622 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember 2016-09-30 0000875622 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateBondSecuritiesMember us-gaap:FairValueInputsLevel3Member 2015-12-31 0000875622 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember us-gaap:FairValueInputsLevel3Member 2016-09-30 0000875622 us-gaap:CorporateBondSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2016-09-30 0000875622 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MunicipalBondsMember us-gaap:FairValueInputsLevel1Member 2016-09-30 0000875622 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MunicipalBondsMember 2015-12-31 0000875622 us-gaap:MunicipalBondsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2016-09-30 0000875622 us-gaap:CertificatesOfDepositMember us-gaap:FairValueMeasurementsRecurringMember 2015-12-31 0000875622 us-gaap:CorporateBondSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2016-09-30 0000875622 us-gaap:MunicipalBondsMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2015-12-31 0000875622 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:MunicipalBondsMember 2015-12-31 0000875622 us-gaap:FairValueMeasurementsRecurringMember us-gaap:MunicipalBondsMember us-gaap:FairValueInputsLevel2Member 2015-12-31 0000875622 us-gaap:CertificatesOfDepositMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel2Member 2015-12-31 0000875622 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateBondSecuritiesMember 2015-12-31 0000875622 us-gaap:MunicipalBondsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2016-09-30 0000875622 us-gaap:FairValueInputsLevel2Member us-gaap:CorporateBondSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2015-12-31 0000875622 us-gaap:CertificatesOfDepositMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2015-12-31 0000875622 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember us-gaap:FairValueInputsLevel1Member 2016-09-30 0000875622 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CorporateBondSecuritiesMember 2016-09-30 0000875622 us-gaap:MunicipalBondsMember us-gaap:FairValueMeasurementsRecurringMember 2016-09-30 0000875622 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:CertificatesOfDepositMember 2016-09-30 0000875622 us-gaap:CorporateBondSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember 2015-12-31 0000875622 us-gaap:CorporateBondSecuritiesMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2016-09-30 0000875622 bstc:EndoMember 2016-07-01 2016-09-30 0000875622 bstc:EndoMember 2015-01-01 2015-09-30 0000875622 bstc:EndoMember 2016-01-01 2016-09-30 0000875622 bstc:EndoMember 2015-07-01 2015-09-30 0000875622 bstc:EndoMember 2016-09-30 0000875622 bstc:EndoMember 2015-12-31 0000875622 2012-01-01 2012-03-31 0000875622 us-gaap:GeneralAndAdministrativeExpenseMember 2015-07-01 2015-09-30 0000875622 us-gaap:GeneralAndAdministrativeExpenseMember 2016-07-01 2016-09-30 0000875622 us-gaap:GeneralAndAdministrativeExpenseMember 2015-01-01 2015-09-30 0000875622 us-gaap:GeneralAndAdministrativeExpenseMember 2016-01-01 2016-09-30 0000875622 us-gaap:EmployeeStockOptionMember 2015-12-31 0000875622 us-gaap:EmployeeStockOptionMember 2015-01-01 2015-09-30 0000875622 us-gaap:EmployeeStockOptionMember 2016-01-01 2016-09-30 0000875622 us-gaap:EmployeeStockOptionMember 2016-09-30 0000875622 us-gaap:EmployeeStockOptionMember 2015-01-01 2015-12-31 0000875622 us-gaap:MaximumMember 2016-01-01 2016-09-30 0000875622 us-gaap:MinimumMember 2016-01-01 2016-09-30 0000875622 us-gaap:SubsequentEventMember 2016-11-01 2016-11-01 0000875622 us-gaap:StockOptionMember 2015-01-01 2015-09-30 0000875622 us-gaap:StockOptionMember 2016-07-01 2016-09-30 0000875622 us-gaap:StockOptionMember 2016-01-01 2016-09-30 0000875622 us-gaap:StockOptionMember 2015-07-01 2015-09-30 0000875622 us-gaap:StockOptionMember 2016-09-30 0000875622 us-gaap:PatentsMember us-gaap:MaximumMember 2016-01-01 2016-09-30 0000875622 us-gaap:PatentsMember us-gaap:MinimumMember 2016-01-01 2016-09-30 0000875622 us-gaap:PatentsMember 2016-01-01 2016-09-30 0000875622 us-gaap:PatentsMember 2015-12-31 0000875622 us-gaap:PatentsMember 2016-09-30 0000875622 us-gaap:PatentsMember 2015-07-01 2015-09-30 0000875622 us-gaap:PatentsMember 2015-01-01 2015-09-30 0000875622 us-gaap:PatentsMember 2016-07-01 2016-09-30 xbrli:shares iso4217:USD iso4217:USD xbrli:shares bstc:Payment bstc:Plan false --12-31 2016-09-30 No No Yes Accelerated Filer BIOSPECIFICS TECHNOLOGIES CORP 0000875622 7147159 2016 Q3 10-Q

991867

611009

3846752

2547920

3800000

2500000

74138

66775

32650938

31797418

420000

247000

221000

740000

33000

72000

100000

11000

29600

34000

10300

316000

446000

20000

45698113

62436648

38351971

55440088

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Basis of Presentation</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The accompanying condensed consolidated financial statements are unaudited, but include all adjustments (consisting only of normal, recurring adjustments) which we consider necessary for a fair presentation of our financial position at such dates and the operating results and cash flows for those periods. Although we believe that the disclosures in our financial statements are adequate to make the information presented not misleading, certain information normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) has been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for quarterly reporting.</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;"> </div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The information included in this Report should be read in conjunction with the risk factors discussed in “Part I, Item 1A. Risk Factors” in our Quarterly Reports on Form 10Q for the periods ended March 31, 2016 and June 30, 2016 filed with the SEC on May 10, 2016 and August 9, 2016, respectively and our Annual Report on Form 10-K for the period ended December 31, 2015 filed with the SEC on March 14, 2016.</div></div>

5137875

4747745

9810816

7488076

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Cash, Cash Equivalents and Investments</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Cash equivalents include only securities having a maturity of three months or less at the time of purchase.<font style="font-size: 10pt; font-family: 'Times New Roman';"> </font>Investments are stated on an amortized cost basis. The Company limits its credit risk associated with cash, cash equivalents and investments by placing its investments with banks it believes are highly creditworthy and with highly rated money market funds, certificates of deposit and municipal bonds. All investments are classified as held to maturity. As of September 30, 2016 and December 31, 2015, the aggregate fair value of these investments was $46.5 million and $31.9 million, respectively.</div></div>

-2322740

-390130

1894904

715784

1894904

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left;">Commitments and Contingencies</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">On November 1, 2016, the Company entered into an agreement with the Landlord to extend the term of the lease to the Headquarters for an additional one year period (the “Extended Lease Agreement”). The one year extension will end on November 30, 2017. Pursuant to the Extended Lease Agreement, the base rent is $10,757 per month and the Company may cancel the lease with three months’ prior written notice to the Landlord at any time during the term. The Extended Lease Agreement was filed with the SEC as Exhibit 10.1 to the Company’s Quarterly Report on Form 10Q on November 9, 2016.</div></div>

7545167

7290167

10000000

7545

7290

0.001

7149559

6918579

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Concentration of Credit Risk and Major Customers</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The Company maintains bank account balances, which, at times, may exceed insured limits. The Company has not experienced any losses with these accounts and believes that it is not exposed to any significant credit risk on cash.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The Company maintains its investment in FDIC insured certificates of deposits with several banks, pre-refunded municipal bonds, municipal bonds and corporate bonds.</div><div style="text-align: justify;"><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The Company is currently dependent on one customer, Endo, who generates almost all its revenues. For the three and nine months ended September 30, 2016, licensing, sublicensing, milestones and royalty revenues under the License Agreement with Endo were approximately $6.9 million and $19.6 million, respectively, and for the three and nine months ended September 30, 2015, the licensing, sublicensing, milestones and royalty revenues under the License Agreement with Endo were approximately $6.3 million and $16.6 million, respectively.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">At September 30, 2016 and December 31, 2015, our accounts receivable balances were $3.8 million and $2.5 million, respectively.</div></div>

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Principles of Consolidation</div><div style="text-align: justify;"><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The condensed<font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;"> </font>consolidated financial statements include the accounts of the Company and its subsidiary, Advance Biofactures Corp. (“ABC-NY”). All intercompany balances and transactions have been eliminated.</div></div>

6062469

2156275

1967881

6915669

3100000

274000

12345

37034

546000

37034

12345

2851423

1913697

1017981

1215620

1223479

149378

7900000

200000

7700000

49379

6642441

8250000

600000

3400000

622972

3370836

1215814

647071

78138

1.02

1.20

0.42

0.43

1.16

0.39

0.42

0.96

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: left;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman'; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman'; vertical-align: top; font-weight: bold; width: 18pt; align: right;">3.</td><td style="vertical-align: top; text-align: left; width: auto;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">NET INCOME PER SHARE</div></td></tr></table></div><div style="text-align: justify;"><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">In accordance with Accounting Standards Codification 260,<font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;"> Earnings Per Share</font>, basic net income per share amount is computed using the weighted-average number of shares of common stock outstanding during the periods presented, while diluted net income per share is computed using the sum of the weighted-average number of common and common equivalent shares outstanding. Common equivalent shares used in the computation of diluted earnings per share result from the assumed exercise of stock options using the treasury stock method.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The following table summarizes the number of common equivalent shares that were excluded for the calculation of diluted net income per share reported in the condensed<font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;"> </font>consolidated statement of operations.</div><div><br /></div><table border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman'; margin-left: 27pt; width: 60%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 24%;"><div style="margin-left: 9pt;"> </div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 0.79%;"> </td><td colspan="4" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Three Months Ended</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">September 30,</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 0.79%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 0.79%;"> </td><td colspan="4" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Nine Months Ended</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">September 30,</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 0.79%;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 24%;"><div style="margin-left: 9pt;"> </div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 0.79%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; width: 17%;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">2016</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 0.79%;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; width: 0.79%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; width: 17%;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">2015</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 0.79%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 0.79%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; width: 17%;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">2016</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 0.79%;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; width: 0.79%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; width: 17%;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">2015</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 0.79%;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 24%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left;">Stock options</div></td><td valign="bottom" style="vertical-align: bottom; width: 0.79%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 17%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">20,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 0.79%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 0.79%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 17%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">20,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 0.79%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 0.79%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 17%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">20,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 0.79%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 0.79%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 17%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">20,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 0.79%; background-color: #cceeff;"> </td></tr></table><div> </div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">At September 30, 2016, the Company had 20,000 options, which have an exercise price of $29.21, and will vest upon the achievement of certain performance criteria, which have not yet been met.  These options expire on December 2, 2019.</div></div>

196667

164504

P2Y4M24D

301000

224047

3188682

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left;">Fair Value Measurements</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Management believes that the carrying amounts of the Company’s financial instruments, including cash, cash equivalents, held to maturity investments, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short-term nature of those instruments. As of September 30, 2016 and December 31, 2015, there were no recorded unrealized gains or losses on our investments as they are held to maturity. <font style="font-size: 10pt; font-family: 'Times New Roman'; background-color: #ffffff;">As of </font>September<font style="font-size: 10pt; font-family: 'Times New Roman'; background-color: #ffffff;"> 30, 2016, amortized cost basis of the investments approximate their fair value.</font><font style="font-size: 10pt; font-family: 'Times New Roman';"> </font>At September 30, 2016 and December 31, 2015, the amortized premium included in interest income was $446,000 and $316,000, respectively.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The following table presents the Company’s schedule of maturities at September 30, 2016 and December 31, 2015:</div><div><br /></div><table align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman'; width: 90%;"><tr><td valign="bottom" style="vertical-align: bottom; margin-left: 9pt; width: 42%; text-indent: -9pt;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Maturities as of</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">September 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Maturities as of</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">December 31, 2015</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; margin-left: 9pt; width: 42%; text-indent: -9pt;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; margin-left: 9pt; width: 42%; text-indent: -9pt;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">1 Year or Less</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Greater than </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">1 Year</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">1 Year or </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Less</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Greater than 1 </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Year</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Municipal bonds</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">6,917,696</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">6,461,216</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">155,826</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Corporate Bonds</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">31,218,996</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">1,194,049</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">9,882,285</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">1,597,715</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 42%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Certificates of deposit</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">6,938,878</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">249,050</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">12,004,041</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">1,843,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 42%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left; margin-left: 9pt; text-indent: -9pt;">Total</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">45,075,570</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">1,443,099</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">28,347,542</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">3,596,541</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr></table><div> </div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The authoritative literature for fair value measurements established a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. These tiers are as follows: Level 1, defined as observable inputs such as quoted market prices in active markets; Level 2, defined as inputs other than the quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as significant unobservable inputs (entity developed assumptions) in which little or no market data exists.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">As of September 30, 2016, the Company held certain investments that are required to be measured at fair value on a recurring basis. The following tables present the Company’s fair value hierarchy for these financial assets as of September 30, 2016 and December 31, 2015:</div><div><br /></div><table align="center" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman'; width: 90%;"><tr><td valign="bottom" style="vertical-align: top; padding-bottom: 2px; width: 21%;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-variant: normal; font-weight: bold; font-style: normal; text-align: left;"><u>September 30, 2016</u></div></td><td valign="bottom" style="vertical-align: top; padding-bottom: 2px; width: 21%;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-variant: normal; font-weight: bold; font-style: normal; text-align: left;"><u>Type of Instrument</u></div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Fair Value</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Level 1</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Level 2</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Level 3</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%;"> </td><td valign="bottom" style="vertical-align: top; width: 21%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Cash equivalents</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Institutional Money Market</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">1,894,904</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">1,894,904</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Investments</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Municipal Bonds</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">6,917,696</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">6,917,696</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Investments</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Corporate Bonds</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">32,413,045</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">32,413,045</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Investments</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Certificates of Deposit</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">7,187,928</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">7,187,928</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; padding-bottom: 2px; width: 21%;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-variant: normal; font-weight: bold; font-style: normal; text-align: left;"><u>December 31, 2015</u></div></td><td valign="bottom" style="vertical-align: top; padding-bottom: 2px; width: 21%;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-variant: normal; font-weight: bold; font-style: normal; text-align: left;"><u>Type of Instrument</u></div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Fair Value</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Level 1</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Level 2</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Level 3</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Cash equivalents</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Institutional Money Market</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">715,784</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">715,784</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Investments</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Municipal Bonds</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">6,617,042</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">6,617,042</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Investments</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Corporate Bonds</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">11,480,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">11,480,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Investments</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Certificates of Deposit</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">13,847,041</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">13,847,041</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr></table></div>

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div>The following tables present the Company’s fair value hierarchy for these financial assets as of September 30, 2016 and December 31, 2015:</div><div><br /></div><table align="center" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman'; width: 90%;"><tr><td valign="bottom" style="vertical-align: top; padding-bottom: 2px; width: 21%;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-variant: normal; font-weight: bold; font-style: normal; text-align: left;"><u>September 30, 2016</u></div></td><td valign="bottom" style="vertical-align: top; padding-bottom: 2px; width: 21%;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-variant: normal; font-weight: bold; font-style: normal; text-align: left;"><u>Type of Instrument</u></div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Fair Value</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Level 1</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Level 2</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Level 3</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%;"> </td><td valign="bottom" style="vertical-align: top; width: 21%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Cash equivalents</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Institutional Money Market</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">1,894,904</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">1,894,904</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Investments</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Municipal Bonds</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">6,917,696</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">6,917,696</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Investments</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Corporate Bonds</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">32,413,045</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">32,413,045</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Investments</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Certificates of Deposit</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">7,187,928</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">7,187,928</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; padding-bottom: 2px; width: 21%;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-variant: normal; font-weight: bold; font-style: normal; text-align: left;"><u>December 31, 2015</u></div></td><td valign="bottom" style="vertical-align: top; padding-bottom: 2px; width: 21%;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-variant: normal; font-weight: bold; font-style: normal; text-align: left;"><u>Type of Instrument</u></div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Fair Value</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Level 1</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Level 2</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Level 3</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Cash equivalents</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Institutional Money Market</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">715,784</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">715,784</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Investments</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Municipal Bonds</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">6,617,042</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">6,617,042</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Investments</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Corporate Bonds</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">11,480,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">11,480,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Investments</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Certificates of Deposit</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">13,847,041</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">13,847,041</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr></table></div>

114800

38700

422054

451672

697260

720600

P12Y

P1Y

10600

27400

23300

38700

1843368

1709044

5909785

5307431

9882285

6461216

45075570

31218996

12004041

6917696

28347542

6938878

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The following table presents the Company’s schedule of maturities at September 30, 2016 and December 31, 2015:</div><div><br /></div><table align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman'; width: 90%;"><tr><td valign="bottom" style="vertical-align: bottom; margin-left: 9pt; width: 42%; text-indent: -9pt;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Maturities as of</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">September 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Maturities as of</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">December 31, 2015</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; margin-left: 9pt; width: 42%; text-indent: -9pt;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; margin-left: 9pt; width: 42%; text-indent: -9pt;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">1 Year or Less</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Greater than </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">1 Year</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">1 Year or </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Less</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Greater than 1 </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Year</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Municipal bonds</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">6,917,696</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">6,461,216</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">155,826</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Corporate Bonds</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">31,218,996</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">1,194,049</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">9,882,285</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">1,597,715</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 42%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Certificates of deposit</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">6,938,878</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">249,050</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">12,004,041</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">1,843,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 42%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left; margin-left: 9pt; text-indent: -9pt;">Total</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">45,075,570</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">1,443,099</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">28,347,542</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">3,596,541</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr></table></div>

3596541

1843000

1597715

249050

155826

1443099

1194049

4812813

4350179

12952790

10613855

4497359

1479200

3654772

1759220

916843

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Provision for Income Taxes</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Deferred tax assets and liabilities are recognized based on the expected future tax consequences, using current tax rates, of temporary differences between the financial statement carrying amounts and the income tax basis of assets and liabilities. A valuation allowance is applied against any net deferred tax asset if, based on the weighted available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';">We use the asset and liability method of accounting for income taxes, as set forth in Accounting Standards Codification. Under this method, deferred income taxes, when required, are provided on the basis of the difference between the financial reporting and income tax basis of assets and liabilities at the statutory rates enacted for future periods. </font>We classify interest associated with income taxes under interest expense and tax penalties under other expense.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefit recognized in the consolidated financial statements from such position is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon the ultimate settlement. As of September 30, 2016 and 2015, respectively, the Company has not recorded any unrecognized tax benefits.</div></div>

5825000

546000

279333

1273079

1298832

2747864

-441211

107372

380858

24204

23341

7667163

-37034

-916843

521121

170591

136152

275206

268928

275206

268928

80674

200704

58946

26744

13847041

7187928

32413045

6617042

6917696

13847041

32413045

6617042

11480000

7187928

6917696

11480000

46500000

31900000

45698113

62436648

838525

2572817

1037034

1012345

762345

787034

3596541

1443099

-15020694

-13378790

4820598

-144678

6235452

14775242

8455431

2870979

3053593

6959083

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left;">New Accounting Pronouncements</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify; background-color: #ffffff;"><font style="font-size: 10pt; font-family: 'Times New Roman'; background-color: #ffffff;">The Financial Accounting Standards Board, or FASB</font><font style="font-size: 10pt; font-family: 'Times New Roman';">, issued in May 2014, in August 2015, March 2016 and April 2016,</font> respectively, <font style="font-size: 10pt; font-family: 'Times New Roman';">Accounting Standards Updates No. 2014-09, No. 2015-14, No. 2016-08, and No. 2016-10 (the “ASUs”). These ASUs were issued in connection with revenue from contracts with customers. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. In August 2015, the FASB deferred the effective date of the guidance to reporting periods, including interim periods, beginning after December 15, 2017, and will be applied retrospectively. Early adoption is not permitted. </font><font style="font-size: 10pt; font-family: 'Times New Roman'; background-color: #ffffff;">We are currently evaluating the timing, method of adoption and the expected impact that the standard could have on our consolidated financial statements and related disclosures. We are currently evaluating the expected impact that the standard could have on our consolidated financial statements and related disclosures.</font></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify; background-color: #ffffff;">                                                                           <br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">In January 2016, the FASB issued new guidance on recognition and measurement of financial assets and financial liabilities. The new guidance will impact the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. All equity investments in unconsolidated entities (other than those accounted for under the equity method of accounting) will generally be measured at fair value with changes in fair value recognized through earnings. There will no longer be an available-for-sale classification (changes in fair value reported in other comprehensive income (loss) for equity securities with readily determinable fair values. In addition, the FASB clarified the need for a valuation allowance on deferred tax assets resulting from unrealized losses on available-for-sale debt securities. In general, the new guidance will require modified retrospective application to all outstanding instruments, with a cumulative effect adjustment recorded to opening retained earnings. This guidance will be effective for us on January 1, 2018. We are currently evaluating the expected impact that the standard could have on our consolidated financial statements and related disclosures.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman'; background-color: #ffffff;">In February 2016, FASB issued Accounting Standards Update (ASU) No. 2016-02, </font><font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic; background-color: #ffffff;">Leases (Topic 842). </font><font style="font-size: 10pt; font-family: 'Times New Roman'; background-color: #ffffff;">Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the lease commencement date: a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, </font><font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic; background-color: #ffffff;">Revenue from Contracts with Customers</font><font style="font-size: 10pt; font-family: 'Times New Roman'; background-color: #ffffff;">. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). Early application is permitted.  Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach.</font> We are currently evaluating the expected impact that the standard could have on our consolidated financial statements and related disclosures.</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;"> </div><div style="background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">In March 2016, FASB issued ASU No. 2016-09 related to stock-based compensation. The new guidance simplifies the accounting for stock-based compensation transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2016, and early adoption is permitted. We are currently evaluating this guidance and the impact it will have on the consolidated financial statements and related disclosures.</div><div><br /></div></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">In May 2016, FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which is intended to not change the core principle of the guidance in Topic 606, but rather affect only the narrow aspects of Topic 606 by reducing the potential for diversity in practice at initial application and by reducing the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. We are currently evaluating the expected impact that the standard could have on our consolidated financial statements and related disclosures.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses. The amendment revises the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses on financial instruments, including, but not limited to, available for sale debt securities and accounts receivable. The Company is required to adopt this standard starting in the first quarter of fiscal year 2021. Early adoption is permitted. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements and related disclosures.</div></div>

238152

65056

86928

28221

10548799

4725885

4321958

12714638

1477

6110

6254

37448

24422334

47568734

1182068

898025

700000

0.50

554401

383810

8250000

750000

32548040

11043544

529300

2813984

500000

2800000

P10Y

P5Y

755038

312907

258837

1005884

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">R&D Expenses</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">R&D<font style="font-size: 10pt; font-family: 'Times New Roman';"> expenses </font>include, but are not limited to, internal costs, such as salaries and benefits, costs of materials, lab expenses, facility costs and overhead. R&D expenses also consist of third party costs, such as medical professional fees, product costs used in clinical trials, consulting fees and costs associated with clinical study arrangements. We may fund R&D at medical research institutions under agreements that are generally cancelable. All of these costs are charged to R&D as incurred, which may be measured by percentage of completion, contract milestones, patient enrollment, or the passage of time.</div></div>

19238610

27694041

1000000

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; font-style: italic; text-align: justify; text-indent: 36pt;">Licensing Revenue</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">We include revenue recognized from upfront licensing, sublicensing and milestone payments in “License Revenues” in our condensed consolidated statements of income in this Quarterly Report on Form 10-Q.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic; text-align: justify; text-indent: 36pt;">Upfront License and Sublicensing Fees</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">We generally recognize revenue from upfront licensing and sublicensing fees when the license or sublicense agreement is signed, we have completed the earnings process and we have no ongoing performance obligation with respect to the arrangement. We recognized licensing fees related to the exercise of an opt-in right by Endo <font style="font-size: 10pt; font-family: 'Times New Roman'; background-color: #ffffff;">for the human lipoma indication</font> of $750,000 for the three and nine months ended September 30, 2016 as compared to zero in each of the 2015 periods. Nonrefundable upfront technology license fees for product candidates for which we are providing continuing services related to product development are deferred and recognized as revenue over the development period. <font style="font-size: 10pt; font-family: 'Times New Roman';">We recognized deferred revenue of $12,345 and $37,034 for the three and nine months ended </font>September<font style="font-size: 10pt; font-family: 'Times New Roman';"> 30, 2016, respectively, and $12,345 and $37,034 for the three and nine months ended </font>September<font style="font-size: 10pt; font-family: 'Times New Roman';"> 30, 2015, respectively.</font></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic; text-align: justify; text-indent: 36pt;">Milestones</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Milestones, in the form of additional license fees, typically represent nonrefundable payments to be received in conjunction with the achievement of a specific event identified in the license or sublicense agreement, such as completion of specified development activities and/or regulatory submissions and/or approvals. We believe that a milestone represents the culmination of a distinct earnings process when it is not associated with ongoing research, development or other performance on our part. We recognize such milestones as revenue when they become due and collection is reasonably assured. When a milestone does not represent the culmination of a distinct earnings process, we recognize revenue in a manner similar to that of an upfront license fee.</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;"> </div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The timing and amount of revenue that we recognize from licenses of technology, either from upfront fees or milestones where we are providing continuing services related to product development, are primarily dependent upon our estimates of the development period. We define the development period as the point from which research activities commence up to regulatory approval of either our or our partners’ submission, assuming no further research is necessary. As product candidates move through the development process, it is necessary to revise these estimates to consider changes to the product development cycle, such as changes in the clinical development plan, regulatory requirements, or various other factors, many of which may be outside of our control. Should the U.S. Food and Drug Administration (“FDA”) or other regulatory agencies require additional data or information, we would adjust our development period estimates accordingly. The impact on revenue of changes in our estimates and the timing thereof is recognized prospectively over the remaining estimated product development period.<font style="font-size: 10pt; font-family: 'Times New Roman';"> We did not recognize any milestone revenue in the three and nine month periods ended September 30, 2016. Milestone revenue recognized for the three and nine months ended September 30, 2015 was $1.0 million in each period.  The $1.0 million </font>milestone revenue recognized in the 2015 periods related to the <font style="font-size: 10pt; font-family: 'Times New Roman';">first commercial sale of XIAFLEX by Asahi for the treatment of Dupuytren's contracture in Japan</font><font style="font-size: 10pt; font-family: 'Times New Roman';">.</font></div></div>

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Deferred Revenue</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Deferred revenue consists of the remaining $7.7 million related to the First Amendment with Endo of mark-up on cost of goods sold revenue for sales by non-affiliated sublicensees, approximately $62,000 related to nonrefundable upfront product license fees for product candidates for which we are providing continuing services related to product development and $100,000 related to a milestone payment withheld by Endo due to a foreign tax withholding which remains uncollected. Currently, the Company expects to recover the full amount. As of September 30, 2016 and December 31, 2015, deferred revenue was $7.9 million and $0.2 million, respectively.</div></div>

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left;">Revenue Recognition</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left;"> </div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">We currently recognize revenues resulting from the licensing and sublicensing of the use of our technology and from services we sometimes perform in connection with the licensed technology under the guidance of Accounting Standards Codification 605, <font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">Revenue Recognition</font> (“ASC 605”).</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">If we determine that separate elements exist in a revenue arrangement under ASC 605, we recognize revenue for delivered elements only when the fair values of undelivered elements are known, when the associated earnings process is complete, when payment is reasonably assured and, to the extent the milestone amount relates to our performance obligation, when our customer confirms that we have met the requirements under the terms of the agreement.</div></div>

1200000

1000000

400000

300000

15574234

18843273

5277494

6119815

6900000

16600000

19600000

6300000

7243095

P2Y6M4D

P3Y3M29D

P2Y9M29D

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div>The estimated aggregate amortization expense for the remaining three months of 2016 and each of the years below is approximately as follows:</div><div><br /></div><table cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman'; margin-left: 27pt; width: 50%;"><tr><td valign="bottom" style="vertical-align: top; width: 40%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">October 1, 2016 to December 31, 2016</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">10,600</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 40%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">2017</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">38,700</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 40%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">2018</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">38,700</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 40%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">2019</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">38,700</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 40%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">2020</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">27,400</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 40%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Thereafter</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 7%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">114,800</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr></table></div>

6289839

6882160

19630307

16611268

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Accounts payable and accrued expenses consisted of the following:</div><div><br /></div><table border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman'; width: 70%;"><tr><td valign="bottom" style="vertical-align: top; padding-bottom: 2px; margin-left: 9pt; width: 46%; text-indent: -9pt;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">September 30,</div>2016</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">December 31,</div>2015</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 46%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Trade accounts payable and accrued expenses</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">728,425</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">372,367</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 46%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Accrued legal and other professional fees</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">66,775</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">74,138</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; padding-bottom: 2px; width: 46%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Accrued payroll and related costs</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">196,667</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">164,504</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: middle; padding-bottom: 4px; width: 46%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left; margin-left: 9pt; text-indent: -9pt;">Total</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">991,867</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">611,009</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr></table></div>

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">A summary of our stock option activity during the nine months ended September 30, 2016 is presented below:</div><div><br /></div><table align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman'; width: 90%;"><tr><td valign="bottom" style="vertical-align: middle; padding-bottom: 2px; margin-left: 9pt; width: 42%; text-indent: -9pt;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Shares</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Weighted</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Average </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Exercise </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Price</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Weighted</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Average </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Remaining </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Contractual </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Term</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Aggregate </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Intrinsic </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Value</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Outstanding at January 1, 2016</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">562,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">11.91</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">2.51</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">17,456,220</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Grants</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Exercised</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(255,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">2.08</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 42%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Forfeitures or expirations</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left; margin-left: 9pt; text-indent: -9pt;">Outstanding at September 30, 2016</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">307,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">20.08</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">3.33</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">7,857,070</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left; margin-left: 9pt; text-indent: -9pt;">Exercisable at September 30, 2016</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">260,750</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">17.89</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">2.83</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">7,243,095</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr></table></div>

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The following table summarizes the number of common equivalent shares that were excluded for the calculation of diluted net income per share reported in the condensed<font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;"> </font>consolidated statement of operations.</div><div><br /></div><table border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman'; margin-left: 27pt; width: 60%;"><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 24%;"><div style="margin-left: 9pt;"> </div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 0.79%;"> </td><td colspan="4" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Three Months Ended</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">September 30,</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 0.79%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 0.79%;"> </td><td colspan="4" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Nine Months Ended</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">September 30,</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 0.79%;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 24%;"><div style="margin-left: 9pt;"> </div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 0.79%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; width: 17%;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">2016</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 0.79%;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; width: 0.79%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; width: 17%;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">2015</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 0.79%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 0.79%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; width: 17%;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">2016</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 0.79%;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; width: 0.79%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; width: 17%;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">2015</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 0.79%;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 24%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left;">Stock options</div></td><td valign="bottom" style="vertical-align: bottom; width: 0.79%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 17%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">20,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 0.79%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 0.79%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 17%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">20,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 0.79%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 0.79%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 17%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">20,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 0.79%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 0.79%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 17%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">20,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 0.79%; background-color: #cceeff;"> </td></tr></table></div>

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div>For each period presented below, net patent costs consisted of:</div><div><br /></div><table align="left" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman'; width: 70%;"><tr><td valign="bottom" style="vertical-align: top; padding-bottom: 2px; width: 46%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">September 30, </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">2016</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">December 31,</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">2015</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 46%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Patents</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">720,600</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">697,260</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; padding-bottom: 2px; width: 46%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Accumulated amortization</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(451,672</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(422,054</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td></tr><tr><td valign="bottom" style="vertical-align: top; padding-bottom: 4px; width: 46%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">268,928</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">275,206</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr></table></div>

72305

100428

2.08

45.67

17.89

11.91

20.08

29.21

562000

307000

17456220

7857070

260750

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Stock-Based Compensation</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The Company has one stock-based compensation plan in effect. Accounting Standards Codification 718, <font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">Compensation - Stock Compensation </font>(“ASC 718”), requires the recognition of compensation expense, using a fair-value based method, for costs related to all stock options including stock options and common stock issued to our employees and directors under our stock plans. ASC 718 requires companies to estimate the fair value of stock option awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense on a straight-line basis over the requisite service periods in our condensed<font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;"> </font>consolidated statements of operations.</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;"> </div><div>Under ASC 718, we estimate the fair value of our employee stock option awards at the date of grant using the Black-Scholes option-pricing model, which requires the use of certain subjective assumptions. The most significant of these assumptions are our estimates of the expected volatility of the market price of our stock and the expected term of an award. When establishing an estimate of the expected term of an option award, we consider the vesting period for the award, our recent historical experience of employee stock option exercises (including forfeitures) and the expected volatility of our common stock.  As required under the accounting rules, we review our estimates at each grant date and, as a result, the valuation assumptions that we use to value employee stock-based awards granted in future periods may change. <font style="font-size: 10pt; font-family: 'Times New Roman';">No stock options were granted</font> during the nine months ended September 30, 2016 and 2015.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Further, ASC 718 requires that employee stock-based compensation costs be recognized over the requisite service period, or the vesting period, in a manner similar to all other forms of compensation paid to employees. The allocation of employee stock-based compensation costs to each operating expense line are estimated based on specific employee headcount information at each grant date and estimated stock option forfeiture rates and revised, if necessary, in future periods if actual employee headcount information or forfeitures differ materially from those estimates. As a result, the amount of employee stock-based compensation costs we recognize in each operating expense category in future periods may differ significantly from what we have recorded in the current period.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Stock-based compensation expense recognized in general and administrative expenses was approximately $33,000 and $100,000 for the three and nine months ended September 30, 2016, respectively, and $33,000 and $72,000 for the three and nine months ended September 30, 2015, respectively.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic; text-align: justify;">Stock Option Activity</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">A summary of our stock option activity during the nine months ended September 30, 2016 is presented below:</div><div><br /></div><table align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman'; width: 90%;"><tr><td valign="bottom" style="vertical-align: middle; padding-bottom: 2px; margin-left: 9pt; width: 42%; text-indent: -9pt;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Shares</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Weighted</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Average </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Exercise </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Price</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Weighted</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Average </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Remaining </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Contractual </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Term</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Aggregate </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Intrinsic </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Value</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Outstanding at January 1, 2016</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">562,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">11.91</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">2.51</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">17,456,220</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Grants</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Exercised</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(255,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">2.08</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 42%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Forfeitures or expirations</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left; margin-left: 9pt; text-indent: -9pt;">Outstanding at September 30, 2016</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">307,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">20.08</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">3.33</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">7,857,070</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left; margin-left: 9pt; text-indent: -9pt;">Exercisable at September 30, 2016</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">260,750</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">17.89</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">2.83</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">7,243,095</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr></table><div> </div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">During the nine months ended September 30, 2016 and 2015, the Company received $0.5 million and $2.8 million, respectively, from stock options exercised by option holders.</div><div style="text-align: left;"><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Aggregate intrinsic value represents the total pre-tax intrinsic value based on the closing price of our common stock of $45.67 on September 30, 2016, which would have been received by the option holders had all option holders exercised their options as of that date. We have approximately $301,000 in unrecognized compensation cost related to stock options outstanding as of September 30, 2016, which we expect to recognize over the next 2.40 years.</div></div>

28347542

45075570

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="text-align: justify;"><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="font-size: 10pt; font-family: 'Times New Roman'; width: 100%;"><tr><td style="font-size: 10pt; font-family: 'Times New Roman'; vertical-align: top; font-weight: bold; width: 18pt; align: right;">2.</td><td style="vertical-align: top; text-align: justify; width: auto;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</div></td></tr></table></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Basis of Presentation</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The accompanying condensed consolidated financial statements are unaudited, but include all adjustments (consisting only of normal, recurring adjustments) which we consider necessary for a fair presentation of our financial position at such dates and the operating results and cash flows for those periods. Although we believe that the disclosures in our financial statements are adequate to make the information presented not misleading, certain information normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) has been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for quarterly reporting.</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;"> </div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The information included in this Report should be read in conjunction with the risk factors discussed in “Part I, Item 1A. Risk Factors” in our Quarterly Reports on Form 10Q for the periods ended March 31, 2016 and June 30, 2016 filed with the SEC on May 10, 2016 and August 9, 2016, respectively and our Annual Report on Form 10-K for the period ended December 31, 2015 filed with the SEC on March 14, 2016.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Principles of Consolidation</div><div style="text-align: justify;"><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The condensed<font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;"> </font>consolidated financial statements include the accounts of the Company and its subsidiary, Advance Biofactures Corp. (“ABC-NY”). All intercompany balances and transactions have been eliminated.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Critical Accounting Policies, Estimates and Assumptions</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The preparation of condensed<font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;"> </font>consolidated financial statements in conformity with U.S. GAAP requires the use of management’s estimates and assumptions that affect the amounts reported in the condensed<font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;"> </font>consolidated financial statements and accompanying notes. The Company makes certain assumptions and estimates for its deferred tax assets and deferred royalty buy-down. For further details see notes “Provision for Income Taxes” and “Third-Party Royalties and Royalty Buy-Down.” Actual results may differ from those estimates.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Cash, Cash Equivalents and Investments</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Cash equivalents include only securities having a maturity of three months or less at the time of purchase.<font style="font-size: 10pt; font-family: 'Times New Roman';"> </font>Investments are stated on an amortized cost basis. The Company limits its credit risk associated with cash, cash equivalents and investments by placing its investments with banks it believes are highly creditworthy and with highly rated money market funds, certificates of deposit and municipal bonds. All investments are classified as held to maturity. As of September 30, 2016 and December 31, 2015, the aggregate fair value of these investments was $46.5 million and $31.9 million, respectively.</div><div style="text-align: left;"><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left;">Fair Value Measurements</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Management believes that the carrying amounts of the Company’s financial instruments, including cash, cash equivalents, held to maturity investments, accounts receivable, accounts payable and accrued expenses approximate fair value due to the short-term nature of those instruments. As of September 30, 2016 and December 31, 2015, there were no recorded unrealized gains or losses on our investments as they are held to maturity. <font style="font-size: 10pt; font-family: 'Times New Roman'; background-color: #ffffff;">As of </font>September<font style="font-size: 10pt; font-family: 'Times New Roman'; background-color: #ffffff;"> 30, 2016, amortized cost basis of the investments approximate their fair value.</font><font style="font-size: 10pt; font-family: 'Times New Roman';"> </font>At September 30, 2016 and December 31, 2015, the amortized premium included in interest income was $446,000 and $316,000, respectively.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The following table presents the Company’s schedule of maturities at September 30, 2016 and December 31, 2015:</div><div><br /></div><table align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman'; width: 90%;"><tr><td valign="bottom" style="vertical-align: bottom; margin-left: 9pt; width: 42%; text-indent: -9pt;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Maturities as of</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">September 30, 2016</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Maturities as of</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">December 31, 2015</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; margin-left: 9pt; width: 42%; text-indent: -9pt;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td colspan="6" nowrap="nowrap" valign="bottom" style="vertical-align: bottom;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; margin-left: 9pt; width: 42%; text-indent: -9pt;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">1 Year or Less</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Greater than </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">1 Year</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">1 Year or </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Less</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Greater than 1 </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Year</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Municipal bonds</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">6,917,696</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">6,461,216</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">155,826</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Corporate Bonds</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">31,218,996</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">1,194,049</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">9,882,285</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">1,597,715</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 42%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Certificates of deposit</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">6,938,878</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">249,050</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">12,004,041</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">1,843,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 42%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left; margin-left: 9pt; text-indent: -9pt;">Total</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">45,075,570</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">1,443,099</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">28,347,542</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 4px double; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">3,596,541</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 4px; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr></table><div> </div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The authoritative literature for fair value measurements established a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. These tiers are as follows: Level 1, defined as observable inputs such as quoted market prices in active markets; Level 2, defined as inputs other than the quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as significant unobservable inputs (entity developed assumptions) in which little or no market data exists.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">As of September 30, 2016, the Company held certain investments that are required to be measured at fair value on a recurring basis. The following tables present the Company’s fair value hierarchy for these financial assets as of September 30, 2016 and December 31, 2015:</div><div><br /></div><table align="center" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman'; width: 90%;"><tr><td valign="bottom" style="vertical-align: top; padding-bottom: 2px; width: 21%;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-variant: normal; font-weight: bold; font-style: normal; text-align: left;"><u>September 30, 2016</u></div></td><td valign="bottom" style="vertical-align: top; padding-bottom: 2px; width: 21%;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-variant: normal; font-weight: bold; font-style: normal; text-align: left;"><u>Type of Instrument</u></div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Fair Value</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Level 1</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Level 2</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Level 3</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%;"> </td><td valign="bottom" style="vertical-align: top; width: 21%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Cash equivalents</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Institutional Money Market</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">1,894,904</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">1,894,904</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Investments</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Municipal Bonds</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">6,917,696</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">6,917,696</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Investments</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Corporate Bonds</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">32,413,045</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">32,413,045</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Investments</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Certificates of Deposit</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">7,187,928</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">7,187,928</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; padding-bottom: 2px; width: 21%;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-variant: normal; font-weight: bold; font-style: normal; text-align: left;"><u>December 31, 2015</u></div></td><td valign="bottom" style="vertical-align: top; padding-bottom: 2px; width: 21%;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-variant: normal; font-weight: bold; font-style: normal; text-align: left;"><u>Type of Instrument</u></div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Fair Value</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Level 1</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Level 2</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: top; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Level 3</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Cash equivalents</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Institutional Money Market</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">715,784</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">715,784</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Investments</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Municipal Bonds</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">6,617,042</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">6,617,042</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Investments</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Corporate Bonds</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">11,480,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">11,480,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"> </td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Investments</div></td><td valign="bottom" style="vertical-align: top; width: 21%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left;">Certificates of Deposit</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">13,847,041</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">13,847,041</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr></table><div> </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Concentration of Credit Risk and Major Customers</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The Company maintains bank account balances, which, at times, may exceed insured limits. The Company has not experienced any losses with these accounts and believes that it is not exposed to any significant credit risk on cash.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The Company maintains its investment in FDIC insured certificates of deposits with several banks, pre-refunded municipal bonds, municipal bonds and corporate bonds.</div><div style="text-align: justify;"><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The Company is currently dependent on one customer, Endo, who generates almost all its revenues. For the three and nine months ended September 30, 2016, licensing, sublicensing, milestones and royalty revenues under the License Agreement with Endo were approximately $6.9 million and $19.6 million, respectively, and for the three and nine months ended September 30, 2015, the licensing, sublicensing, milestones and royalty revenues under the License Agreement with Endo were approximately $6.3 million and $16.6 million, respectively.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">At September 30, 2016 and December 31, 2015, our accounts receivable balances were $3.8 million and $2.5 million, respectively.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left;">Revenue Recognition</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left;"> </div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">We currently recognize revenues resulting from the licensing and sublicensing of the use of our technology and from services we sometimes perform in connection with the licensed technology under the guidance of Accounting Standards Codification 605, <font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">Revenue Recognition</font> (“ASC 605”).</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">If we determine that separate elements exist in a revenue arrangement under ASC 605, we recognize revenue for delivered elements only when the fair values of undelivered elements are known, when the associated earnings process is complete, when payment is reasonably assured and, to the extent the milestone amount relates to our performance obligation, when our customer confirms that we have met the requirements under the terms of the agreement.</div><div> </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; font-style: italic; text-align: left;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: normal; font-style: normal; text-align: justify;">Revenues, and their respective treatment for financial reporting purposes, are as follows:</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: normal; text-align: justify;"> </div></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; font-style: italic; text-align: justify; text-indent: 36pt;">Royalty / Mark-Up on Cost of Goods Sold</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">For those arrangements for which royalty and mark-up on cost of goods sold information becomes available and collectability is reasonably assured, we recognize revenue during the applicable period in which it is earned. For interim quarterly and year-end reporting purposes, when collectability is reasonably assured, but a reasonable estimate of royalty and mark-up on cost of goods sold cannot be made, the royalty and mark-up on cost of goods sold are generally recognized in the quarter that the applicable licensee provides the written report and related information to us.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Under the License Agreement, we do not participate in the selling, marketing or manufacturing of products for which we receive royalties and a mark-up on the cost of goods sold. The royalty and mark-up on cost of goods sold will generally be recognized in the quarter that Endo provides the written reports and related information to us; that is, royalty and mark-up on cost of goods sold are generally recognized one quarter following the quarter in which the underlying sales by Endo occurred.<font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;"> </font>The royalties payable by Endo to us are subject to set-off for certain patent costs.</div><div style="background-color: #ffffff;"><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Pursuant to the First Amendment with Endo, in exchange for a $8.25 million lump sum payment, we will not receive future additional mark-up on cost of goods sold for sales by non-affiliated sublicensees of Endo outside of the U.S.; provided, however, that Endo will still be required to pay a mark-up on cost of goods sold for sales made in the “Endo Territory,” which includes sales made in the U.S. and sales made in any other country where Endo sells the product directly or through affiliated sublicensees. We received this $8.25 million lump sum payment in February 2016. We classified this payment as deferred revenue in our balance sheet and </font>began recognizing this income over time in the second quarter of 2016 based on sales by non-affiliated sublicensees of Endo outside of the U.S. according to our revenue recognition policy. We recognized approximately $274,000 and $546,000 for the three and nine months ended September 30, 2016, and zero in each of the 2015 corresponding periods.</div></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; font-style: italic; text-align: justify; text-indent: 36pt;">Licensing Revenue</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">We include revenue recognized from upfront licensing, sublicensing and milestone payments in “License Revenues” in our condensed consolidated statements of income in this Quarterly Report on Form 10-Q.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic; text-align: justify; text-indent: 36pt;">Upfront License and Sublicensing Fees</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">We generally recognize revenue from upfront licensing and sublicensing fees when the license or sublicense agreement is signed, we have completed the earnings process and we have no ongoing performance obligation with respect to the arrangement. We recognized licensing fees related to the exercise of an opt-in right by Endo <font style="font-size: 10pt; font-family: 'Times New Roman'; background-color: #ffffff;">for the human lipoma indication</font> of $750,000 for the three and nine months ended September 30, 2016 as compared to zero in each of the 2015 periods. Nonrefundable upfront technology license fees for product candidates for which we are providing continuing services related to product development are deferred and recognized as revenue over the development period. <font style="font-size: 10pt; font-family: 'Times New Roman';">We recognized deferred revenue of $12,345 and $37,034 for the three and nine months ended </font>September<font style="font-size: 10pt; font-family: 'Times New Roman';"> 30, 2016, respectively, and $12,345 and $37,034 for the three and nine months ended </font>September<font style="font-size: 10pt; font-family: 'Times New Roman';"> 30, 2015, respectively.</font></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic; text-align: justify; text-indent: 36pt;">Milestones</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Milestones, in the form of additional license fees, typically represent nonrefundable payments to be received in conjunction with the achievement of a specific event identified in the license or sublicense agreement, such as completion of specified development activities and/or regulatory submissions and/or approvals. We believe that a milestone represents the culmination of a distinct earnings process when it is not associated with ongoing research, development or other performance on our part. We recognize such milestones as revenue when they become due and collection is reasonably assured. When a milestone does not represent the culmination of a distinct earnings process, we recognize revenue in a manner similar to that of an upfront license fee.</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;"> </div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The timing and amount of revenue that we recognize from licenses of technology, either from upfront fees or milestones where we are providing continuing services related to product development, are primarily dependent upon our estimates of the development period. We define the development period as the point from which research activities commence up to regulatory approval of either our or our partners’ submission, assuming no further research is necessary. As product candidates move through the development process, it is necessary to revise these estimates to consider changes to the product development cycle, such as changes in the clinical development plan, regulatory requirements, or various other factors, many of which may be outside of our control. Should the U.S. Food and Drug Administration (“FDA”) or other regulatory agencies require additional data or information, we would adjust our development period estimates accordingly. The impact on revenue of changes in our estimates and the timing thereof is recognized prospectively over the remaining estimated product development period.<font style="font-size: 10pt; font-family: 'Times New Roman';"> We did not recognize any milestone revenue in the three and nine month periods ended September 30, 2016. Milestone revenue recognized for the three and nine months ended September 30, 2015 was $1.0 million in each period.  The $1.0 million </font>milestone revenue recognized in the 2015 periods related to the <font style="font-size: 10pt; font-family: 'Times New Roman';">first commercial sale of XIAFLEX by Asahi for the treatment of Dupuytren's contracture in Japan</font><font style="font-size: 10pt; font-family: 'Times New Roman';">.</font></div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Treasury Stock</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;"> </div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The Company accounts for treasury stock under the cost method and includes treasury stock as a component of stockholders’ equity. For the nine months ended <font style="font-size: 10pt; font-family: 'Times New Roman';">September</font> 30, 2016, we repurchased 24,020 shares at an average price of $37.39 as compared to the repurchase of 27,433 shares at an average price of $43.07 in the corresponding 2015 period.</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;"> </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Receivables and Doubtful Accounts</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;"> </div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Trade accounts receivable are stated at the amount the Company expects to collect. We may maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. We consider the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms.  Our accounts receivable balance is typically due from Endo, our one large specialty pharmaceutical customer.  Endo has historically paid timely and has been a financially stable organization.  Due to the nature of the accounts receivable balance, we believe the risk of doubtful accounts is minimal.  If the financial condition of our customer were to deteriorate, adversely affecting its ability to make payments, additional allowances would be required.  We may provide for estimated uncollectible amounts through a charge to earnings and a credit to a valuation allowance. Balances that remain outstanding after we have used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable.<font style="font-size: 10pt; font-family: 'Times New Roman';"> </font>At <font style="font-size: 10pt; font-family: 'Times New Roman';">September</font> 30, 2016 and December 31, 2015 our accounts receivable balance was $3.8 million and $2.5 million, respectively, and was from one customer, Endo.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Deferred Revenue</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Deferred revenue consists of the remaining $7.7 million related to the First Amendment with Endo of mark-up on cost of goods sold revenue for sales by non-affiliated sublicensees, approximately $62,000 related to nonrefundable upfront product license fees for product candidates for which we are providing continuing services related to product development and $100,000 related to a milestone payment withheld by Endo due to a foreign tax withholding which remains uncollected. Currently, the Company expects to recover the full amount. As of September 30, 2016 and December 31, 2015, deferred revenue was $7.9 million and $0.2 million, respectively.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Reimbursable Third-Party Development Costs</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">We accrued patent expenses for that are reimbursable by us under the License Agreement.  We capitalize certain patent costs related to estimated third-party development costs that are reimbursable under the License Agreement. As of September<font style="font-size: 10pt; font-family: 'Times New Roman';"> 30, 2016 and December 31, 2015,</font> our net reimbursable third party patent expense accrual was approximately $25,000 and $20,000, respectively.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Third-Party Royalties</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">We have entered into licensing and royalty agreements with third parties and agreed to pay certain royalties on net sales of products for specific indications. The royalty rates differ from agreement to agreement and, in certain cases, have been redacted with the permission of the SEC.  No assumptions should be made that any disclosed royalty rate payable to a particular third party is the same or similar with respect to any royalty rate payable to any other third parties.  We accrue third-party royalty expenses on net sales reported to us by Endo. Third-party royalty costs are generally expensed in the quarter that Endo provides the written reports and related information to us; that is, generally one quarter following the quarter in which the underlying sales by Endo occurred. For the three and nine month periods ended September 30, 2016, third-party royalty expenses were $0.4 million and $1.2 million , respectively, and for the three and nine month periods ended September 30, 2015, third-party royalty expenses were $0.3 million and $1.0 million, respectively. Our third-party royalty expense under general and administrative expenses may increase if net sales by Endo and its partners for XIAFLEX and XIAPEX increase and potential new indications for CCH are approved.</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;"> </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Royalty Buy-Down</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">On March 31, 2012, we entered into an amendment to our existing agreement with Dr. Martin K. Gelbard, dated August 27, 2008, related to our future royalty obligations in connection with Peyronie’s disease. The amendment enables us to buy down a portion of our future royalty obligations in exchange for an initial cash payment of $1.5 million and five additional cash payments of $600,000, three of which have been paid as of September 30, 2016.  We are currently making the payments to buy down the future royalty obligations, which royalty obligations terminate five years after first commercial sale. The Company amortizes long-term contracts with finite lives in a manner that reflects the pattern in which the economic benefits of the assets are consumed or otherwise used up. Dr. Gelbard’s agreement is amortized based on an income forecast method by estimating sales of XIAFLEX for Peyronie’s disease on an annual basis as measured by the proportion of the total estimated sales over the five year period. Related to this agreement, we amortized approximately $247,000 and $740,000 for the three and nine months ended September 30, 2016, respectively, and $221,000 and $420,000 for the three and nine months ended September 30, 2015, respectively. The remaining capitalized balance as of September 30, 2016 was $3.1 million. We perform an evaluation of the recoverability of the carrying value to determine if facts and circumstances indicate that the carrying value of the assets may be impaired and if any adjustment is warranted. Based on our evaluation as of September 30, 2016, no impairment existed and no adjustment was warranted.</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;"> </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">R&D Expenses</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">R&D<font style="font-size: 10pt; font-family: 'Times New Roman';"> expenses </font>include, but are not limited to, internal costs, such as salaries and benefits, costs of materials, lab expenses, facility costs and overhead. R&D expenses also consist of third party costs, such as medical professional fees, product costs used in clinical trials, consulting fees and costs associated with clinical study arrangements. We may fund R&D at medical research institutions under agreements that are generally cancelable. All of these costs are charged to R&D as incurred, which may be measured by percentage of completion, contract milestones, patient enrollment, or the passage of time.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left;">Clinical Trial Expenses</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Our cost accruals for clinical trials are based on estimates of the services received and efforts expended pursuant to contracts with various clinical trial centers and clinical research organizations. In the normal course of business we contract with third parties to perform various clinical trial activities in the ongoing development of potential drugs. The financial terms of these agreements are subject to negotiation and vary from contract to contract and may result in uneven payment flows. Payments under the contracts depend on factors such as the achievement of certain events, the successful enrollment of patients, the completion of portions of the clinical trial, and other similar conditions. The objective of our accrual policy is to match the recording of expenses in our financial statements to the actual cost of services received and efforts expended. As such, expenses related to each patient enrolled in a clinical trial are recognized ratably beginning upon entry into the trial and over the course of the patient’s continued participation in the trial. In the event of early termination of a clinical trial, we accrue an amount based on our estimate of the remaining non-cancelable obligations associated with the winding down of the clinical trial. Our estimates and assumptions could differ significantly from the amounts that may actually be incurred.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Stock-Based Compensation</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The Company has one stock-based compensation plan in effect. Accounting Standards Codification 718, <font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic;">Compensation - Stock Compensation </font>(“ASC 718”), requires the recognition of compensation expense, using a fair-value based method, for costs related to all stock options including stock options and common stock issued to our employees and directors under our stock plans. ASC 718 requires companies to estimate the fair value of stock option awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense on a straight-line basis over the requisite service periods in our condensed<font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;"> </font>consolidated statements of operations.</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;"> </div><div>Under ASC 718, we estimate the fair value of our employee stock option awards at the date of grant using the Black-Scholes option-pricing model, which requires the use of certain subjective assumptions. The most significant of these assumptions are our estimates of the expected volatility of the market price of our stock and the expected term of an award. When establishing an estimate of the expected term of an option award, we consider the vesting period for the award, our recent historical experience of employee stock option exercises (including forfeitures) and the expected volatility of our common stock.  As required under the accounting rules, we review our estimates at each grant date and, as a result, the valuation assumptions that we use to value employee stock-based awards granted in future periods may change. <font style="font-size: 10pt; font-family: 'Times New Roman';">No stock options were granted</font> during the nine months ended September 30, 2016 and 2015.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Further, ASC 718 requires that employee stock-based compensation costs be recognized over the requisite service period, or the vesting period, in a manner similar to all other forms of compensation paid to employees. The allocation of employee stock-based compensation costs to each operating expense line are estimated based on specific employee headcount information at each grant date and estimated stock option forfeiture rates and revised, if necessary, in future periods if actual employee headcount information or forfeitures differ materially from those estimates. As a result, the amount of employee stock-based compensation costs we recognize in each operating expense category in future periods may differ significantly from what we have recorded in the current period.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Stock-based compensation expense recognized in general and administrative expenses was approximately $33,000 and $100,000 for the three and nine months ended September 30, 2016, respectively, and $33,000 and $72,000 for the three and nine months ended September 30, 2015, respectively.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic; text-align: justify;">Stock Option Activity</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">A summary of our stock option activity during the nine months ended September 30, 2016 is presented below:</div><div><br /></div><table align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman'; width: 90%;"><tr><td valign="bottom" style="vertical-align: middle; padding-bottom: 2px; margin-left: 9pt; width: 42%; text-indent: -9pt;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Shares</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Weighted</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Average </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Exercise </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Price</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Weighted</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Average </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Remaining </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Contractual </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Term</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%;"> </td><td colspan="2" nowrap="nowrap" valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Aggregate </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Intrinsic </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: center;">Value</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Outstanding at January 1, 2016</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">562,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">11.91</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">2.51</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">17,456,220</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Grants</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Exercised</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">(255,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">)</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">2.08</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 42%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: left; margin-left: 9pt; text-indent: -9pt;">Forfeitures or expirations</div></td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 2px solid; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman';">-</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; padding-bottom: 2px; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left; margin-left: 9pt; text-indent: -9pt;">Outstanding at September 30, 2016</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">307,000</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">20.08</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">3.33</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #cceeff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #cceeff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">7,857,070</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #cceeff;"> </td></tr><tr><td valign="bottom" style="vertical-align: bottom; width: 42%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left; margin-left: 9pt; text-indent: -9pt;">Exercisable at September 30, 2016</div></td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">260,750</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">17.89</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">2.83</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; width: 1%; background-color: #ffffff;"> </td><td valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">$</div></td><td valign="bottom" style="vertical-align: bottom; text-align: right; width: 9%; background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;">7,243,095</div></td><td nowrap="nowrap" valign="bottom" style="vertical-align: bottom; text-align: left; width: 1%; background-color: #ffffff;"> </td></tr></table><div> </div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">During the nine months ended September 30, 2016 and 2015, the Company received $0.5 million and $2.8 million, respectively, from stock options exercised by option holders.</div><div style="text-align: left;"><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Aggregate intrinsic value represents the total pre-tax intrinsic value based on the closing price of our common stock of $45.67 on September 30, 2016, which would have been received by the option holders had all option holders exercised their options as of that date. We have approximately $301,000 in unrecognized compensation cost related to stock options outstanding as of September 30, 2016, which we expect to recognize over the next 2.40 years.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Property and Equipment</div><div style="text-align: justify;"><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Property and equipment are stated at cost, less accumulated depreciation. Machinery and equipment, furniture and fixtures, and autos are depreciated on a straight-line basis over their estimated useful lives of five to ten years. Leasehold improvements are amortized over the lesser of their estimated useful lives or the remaining life of the lease. As of September 30, 2016 and December 31, 2015, respectively, property and equipment were fully depreciated.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Comprehensive Income</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">For the three and nine months ended September 30, 2016 and 2015, respectively, we had no components of other comprehensive income other than net income itself.</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;"> </div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Provision for Income Taxes</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Deferred tax assets and liabilities are recognized based on the expected future tax consequences, using current tax rates, of temporary differences between the financial statement carrying amounts and the income tax basis of assets and liabilities. A valuation allowance is applied against any net deferred tax asset if, based on the weighted available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';">We use the asset and liability method of accounting for income taxes, as set forth in Accounting Standards Codification. Under this method, deferred income taxes, when required, are provided on the basis of the difference between the financial reporting and income tax basis of assets and liabilities at the statutory rates enacted for future periods. </font>We classify interest associated with income taxes under interest expense and tax penalties under other expense.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefit recognized in the consolidated financial statements from such position is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon the ultimate settlement. As of September 30, 2016 and 2015, respectively, the Company has not recorded any unrecognized tax benefits.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left;">Commitments and Contingencies</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">On November 1, 2016, the Company entered into an agreement with the Landlord to extend the term of the lease to the Headquarters for an additional one year period (the “Extended Lease Agreement”). The one year extension will end on November 30, 2017. Pursuant to the Extended Lease Agreement, the base rent is $10,757 per month and the Company may cancel the lease with three months’ prior written notice to the Landlord at any time during the term. The Extended Lease Agreement was filed with the SEC as Exhibit 10.1 to the Company’s Quarterly Report on Form 10Q on November 9, 2016.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left;">New Accounting Pronouncements</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify; background-color: #ffffff;"><font style="font-size: 10pt; font-family: 'Times New Roman'; background-color: #ffffff;">The Financial Accounting Standards Board, or FASB</font><font style="font-size: 10pt; font-family: 'Times New Roman';">, issued in May 2014, in August 2015, March 2016 and April 2016,</font> respectively, <font style="font-size: 10pt; font-family: 'Times New Roman';">Accounting Standards Updates No. 2014-09, No. 2015-14, No. 2016-08, and No. 2016-10 (the “ASUs”). These ASUs were issued in connection with revenue from contracts with customers. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. In August 2015, the FASB deferred the effective date of the guidance to reporting periods, including interim periods, beginning after December 15, 2017, and will be applied retrospectively. Early adoption is not permitted. </font><font style="font-size: 10pt; font-family: 'Times New Roman'; background-color: #ffffff;">We are currently evaluating the timing, method of adoption and the expected impact that the standard could have on our consolidated financial statements and related disclosures. We are currently evaluating the expected impact that the standard could have on our consolidated financial statements and related disclosures.</font></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify; background-color: #ffffff;">                                                                           <br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">In January 2016, the FASB issued new guidance on recognition and measurement of financial assets and financial liabilities. The new guidance will impact the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. All equity investments in unconsolidated entities (other than those accounted for under the equity method of accounting) will generally be measured at fair value with changes in fair value recognized through earnings. There will no longer be an available-for-sale classification (changes in fair value reported in other comprehensive income (loss) for equity securities with readily determinable fair values. In addition, the FASB clarified the need for a valuation allowance on deferred tax assets resulting from unrealized losses on available-for-sale debt securities. In general, the new guidance will require modified retrospective application to all outstanding instruments, with a cumulative effect adjustment recorded to opening retained earnings. This guidance will be effective for us on January 1, 2018. We are currently evaluating the expected impact that the standard could have on our consolidated financial statements and related disclosures.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman'; background-color: #ffffff;">In February 2016, FASB issued Accounting Standards Update (ASU) No. 2016-02, </font><font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic; background-color: #ffffff;">Leases (Topic 842). </font><font style="font-size: 10pt; font-family: 'Times New Roman'; background-color: #ffffff;">Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the lease commencement date: a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, </font><font style="font-size: 10pt; font-family: 'Times New Roman'; font-style: italic; background-color: #ffffff;">Revenue from Contracts with Customers</font><font style="font-size: 10pt; font-family: 'Times New Roman'; background-color: #ffffff;">. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). Early application is permitted.  Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach.</font> We are currently evaluating the expected impact that the standard could have on our consolidated financial statements and related disclosures.</div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;"> </div><div style="background-color: #ffffff;"><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">In March 2016, FASB issued ASU No. 2016-09 related to stock-based compensation. The new guidance simplifies the accounting for stock-based compensation transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This update is effective in fiscal years, including interim periods, beginning after December 15, 2016, and early adoption is permitted. We are currently evaluating this guidance and the impact it will have on the consolidated financial statements and related disclosures.</div><div><br /></div></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">In May 2016, FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which is intended to not change the core principle of the guidance in Topic 606, but rather affect only the narrow aspects of Topic 606 by reducing the potential for diversity in practice at initial application and by reducing the cost and complexity of applying Topic 606 both at transition and on an ongoing basis. We are currently evaluating the expected impact that the standard could have on our consolidated financial statements and related disclosures.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses. The amendment revises the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses on financial instruments, including, but not limited to, available for sale debt securities and accounts receivable. The Company is required to adopt this standard starting in the first quarter of fiscal year 2021. Early adoption is permitted. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements and related disclosures.</div></div>

255000

53221390

44810209

279333

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Receivables and Doubtful Accounts</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;"> </div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Trade accounts receivable are stated at the amount the Company expects to collect. We may maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. We consider the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms.  Our accounts receivable balance is typically due from Endo, our one large specialty pharmaceutical customer.  Endo has historically paid timely and has been a financially stable organization.  Due to the nature of the accounts receivable balance, we believe the risk of doubtful accounts is minimal.  If the financial condition of our customer were to deteriorate, adversely affecting its ability to make payments, additional allowances would be required.  We may provide for estimated uncollectible amounts through a charge to earnings and a credit to a valuation allowance. Balances that remain outstanding after we have used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable.<font style="font-size: 10pt; font-family: 'Times New Roman';"> </font>At <font style="font-size: 10pt; font-family: 'Times New Roman';">September</font> 30, 2016 and December 31, 2015 our accounts receivable balance was $3.8 million and $2.5 million, respectively, and was from one customer, Endo.</div></div>

37.39

43.07

395608

371588

27433

24020

7131134

6233109

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Critical Accounting Policies, Estimates and Assumptions</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The preparation of condensed<font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;"> </font>consolidated financial statements in conformity with U.S. GAAP requires the use of management’s estimates and assumptions that affect the amounts reported in the condensed<font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;"> </font>consolidated financial statements and accompanying notes. The Company makes certain assumptions and estimates for its deferred tax assets and deferred royalty buy-down. For further details see notes “Provision for Income Taxes” and “Third-Party Royalties and Royalty Buy-Down.” Actual results may differ from those estimates.</div></div>

7259338

7277780

7280375

7316287

6892637

7031068

7062543

6797506

<div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Royalty Buy-Down</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">On March 31, 2012, we entered into an amendment to our existing agreement with Dr. Martin K. Gelbard, dated August 27, 2008, related to our future royalty obligations in connection with Peyronie’s disease. The amendment enables us to buy down a portion of our future royalty obligations in exchange for an initial cash payment of $1.5 million and five additional cash payments of $600,000, three of which have been paid as of September 30, 2016.  We are currently making the payments to buy down the future royalty obligations, which royalty obligations terminate five years after first commercial sale. The Company amortizes long-term contracts with finite lives in a manner that reflects the pattern in which the economic benefits of the assets are consumed or otherwise used up. Dr. Gelbard’s agreement is amortized based on an income forecast method by estimating sales of XIAFLEX for Peyronie’s disease on an annual basis as measured by the proportion of the total estimated sales over the five year period. Related to this agreement, we amortized approximately $247,000 and $740,000 for the three and nine months ended September 30, 2016, respectively, and $221,000 and $420,000 for the three and nine months ended September 30, 2015, respectively. The remaining capitalized balance as of September 30, 2016 was $3.1 million. We perform an evaluation of the recoverability of the carrying value to determine if facts and circumstances indicate that the carrying value of the assets may be impaired and if any adjustment is warranted. Based on our evaluation as of September 30, 2016, no impairment existed and no adjustment was warranted.</div></div> <div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Third-Party Royalties</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">We have entered into licensing and royalty agreements with third parties and agreed to pay certain royalties on net sales of products for specific indications. The royalty rates differ from agreement to agreement and, in certain cases, have been redacted with the permission of the SEC.  No assumptions should be made that any disclosed royalty rate payable to a particular third party is the same or similar with respect to any royalty rate payable to any other third parties.  We accrue third-party royalty expenses on net sales reported to us by Endo. Third-party royalty costs are generally expensed in the quarter that Endo provides the written reports and related information to us; that is, generally one quarter following the quarter in which the underlying sales by Endo occurred. For the three and nine month periods ended September 30, 2016, third-party royalty expenses were $0.4 million and $1.2 million , respectively, and for the three and nine month periods ended September 30, 2015, third-party royalty expenses were $0.3 million and $1.0 million, respectively. Our third-party royalty expense under general and administrative expenses may increase if net sales by Endo and its partners for XIAFLEX and XIAPEX increase and potential new indications for CCH are approved.</div></div> <div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: left;">Clinical Trial Expenses</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Our cost accruals for clinical trials are based on estimates of the services received and efforts expended pursuant to contracts with various clinical trial centers and clinical research organizations. In the normal course of business we contract with third parties to perform various clinical trial activities in the ongoing development of potential drugs. The financial terms of these agreements are subject to negotiation and vary from contract to contract and may result in uneven payment flows. Payments under the contracts depend on factors such as the achievement of certain events, the successful enrollment of patients, the completion of portions of the clinical trial, and other similar conditions. The objective of our accrual policy is to match the recording of expenses in our financial statements to the actual cost of services received and efforts expended. As such, expenses related to each patient enrolled in a clinical trial are recognized ratably beginning upon entry into the trial and over the course of the patient’s continued participation in the trial. In the event of early termination of a clinical trial, we accrue an amount based on our estimate of the remaining non-cancelable obligations associated with the winding down of the clinical trial. Our estimates and assumptions could differ significantly from the amounts that may actually be incurred.</div></div> <div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Reimbursable Third-Party Development Costs</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">We accrued patent expenses for that are reimbursable by us under the License Agreement.  We capitalize certain patent costs related to estimated third-party development costs that are reimbursable under the License Agreement. As of September<font style="font-size: 10pt; font-family: 'Times New Roman';"> 30, 2016 and December 31, 2015,</font> our net reimbursable third party patent expense accrual was approximately $25,000 and $20,000, respectively.</div></div> <div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;">Treasury Stock</div><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; text-align: justify;"> </div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">The Company accounts for treasury stock under the cost method and includes treasury stock as a component of stockholders’ equity. For the nine months ended <font style="font-size: 10pt; font-family: 'Times New Roman';">September</font> 30, 2016, we repurchased 24,020 shares at an average price of $37.39 as compared to the repurchase of 27,433 shares at an average price of $43.07 in the corresponding 2015 period.</div></div> <div style="font-family: 'Times New Roman'; font-size: 10pt;"><div style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold; font-style: italic; text-align: justify; text-indent: 36pt;">Royalty / Mark-Up on Cost of Goods Sold</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">For those arrangements for which royalty and mark-up on cost of goods sold information becomes available and collectability is reasonably assured, we recognize revenue during the applicable period in which it is earned. For interim quarterly and year-end reporting purposes, when collectability is reasonably assured, but a reasonable estimate of royalty and mark-up on cost of goods sold cannot be made, the royalty and mark-up on cost of goods sold are generally recognized in the quarter that the applicable licensee provides the written report and related information to us.</div><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;">Under the License Agreement, we do not participate in the selling, marketing or manufacturing of products for which we receive royalties and a mark-up on the cost of goods sold. The royalty and mark-up on cost of goods sold will generally be recognized in the quarter that Endo provides the written reports and related information to us; that is, royalty and mark-up on cost of goods sold are generally recognized one quarter following the quarter in which the underlying sales by Endo occurred.<font style="font-size: 10pt; font-family: 'Times New Roman'; font-weight: bold;"> </font>The royalties payable by Endo to us are subject to set-off for certain patent costs.</div><div style="background-color: #ffffff;"><div><br /></div><div style="font-size: 10pt; font-family: 'Times New Roman'; text-align: justify;"><font style="font-size: 10pt; font-family: 'Times New Roman';">Pursuant to the First Amendment with Endo, in exchange for a $8.25 million lump sum payment, we will not receive future additional mark-up on cost of goods sold for sales by non-affiliated sublicensees of Endo outside of the U.S.; provided, however, that Endo will still be required to pay a mark-up on cost of goods sold for sales made in the “Endo Territory,” which includes sales made in the U.S. and sales made in any other country where Endo sells the product directly or through affiliated sublicensees. We received this $8.25 million lump sum payment in February 2016. We classified this payment as deferred revenue in our balance sheet and </font>began recognizing this income over time in the second quarter of 2016 based on sales by non-affiliated sublicensees of Endo outside of the U.S. according to our revenue recognition policy. We recognized approximately $274,000 and $546,000 for the three and nine months ended September 30, 2016, and zero in each of the 2015 corresponding periods.</div></div></div> 0 20000 25000 100000 62000 P3M P5Y 5 1500000 600000 3 10757 0 P1Y 1 372367 728425 611009 991867 750000 500000 EX-101.SCH 6 bstc-20160930.xsd XBRL TAXONOMY EXTENSION SCHEMA 000100 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 010000 - Statement - Condensed Consolidated Balance Sheets (unaudited) link:presentationLink link:calculationLink link:definitionLink 010100 - Statement - Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 020000 - Statement - Condensed Consolidated Income Statements (unaudited) link:presentationLink link:calculationLink link:definitionLink 030000 - Statement - Condensed Consolidated Statements of Cash Flows (unaudited) link:presentationLink link:calculationLink link:definitionLink 060100 - Disclosure - ORGANIZATION AND DESCRIPTION OF BUSINESS link:presentationLink link:calculationLink link:definitionLink 060200 - Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES link:presentationLink link:calculationLink link:definitionLink 060300 - Disclosure - NET INCOME PER SHARE link:presentationLink link:calculationLink link:definitionLink 060400 - Disclosure - ACCOUNTS PAYABLE AND ACCRUED EXPENSES link:presentationLink link:calculationLink link:definitionLink 060500 - Disclosure - PATENT COSTS link:presentationLink link:calculationLink link:definitionLink 060600 - Disclosure - PROVISION FOR INCOME TAXES link:presentationLink link:calculationLink link:definitionLink 060700 - Disclosure - SUBSEQUENT EVENTS link:presentationLink link:calculationLink link:definitionLink 070200 - Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) link:presentationLink link:calculationLink link:definitionLink 080200 - Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) link:presentationLink link:calculationLink link:definitionLink 080300 - Disclosure - NET INCOME PER SHARE (Tables) link:presentationLink link:calculationLink link:definitionLink 080400 - Disclosure - ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) link:presentationLink link:calculationLink link:definitionLink 080500 - Disclosure - PATENT COSTS (Tables) link:presentationLink link:calculationLink link:definitionLink 090100 - Disclosure - ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) link:presentationLink link:calculationLink link:definitionLink 090200 - Disclosure - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) link:presentationLink link:calculationLink link:definitionLink 090300 - Disclosure - NET INCOME PER SHARE (Details) link:presentationLink link:calculationLink link:definitionLink 090400 - Disclosure - ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) link:presentationLink link:calculationLink link:definitionLink 090500 - Disclosure - PATENT COSTS (Details) link:presentationLink link:calculationLink link:definitionLink 090600 - Disclosure - PROVISION FOR INCOME TAXES (Details) link:presentationLink link:calculationLink link:definitionLink 090700 - Disclosure - SUBSEQUENT EVENTS (Details) link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 7 bstc-20160930_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE EX-101.DEF 8 bstc-20160930_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE EX-101.LAB 9 bstc-20160930_lab.xml XBRL TAXONOMY EXTENSION LABEL LINKBASE Amendment Flag Current Fiscal Year End Date Document Period End Date Entity Well-known Seasoned Issuer Entity Voluntary Filers Entity Current Reporting Status Entity Filer Category Entity Registrant Name Entity Central Index Key Entity Common Stock, Shares Outstanding Document Fiscal Year Focus Document Fiscal Period Focus Document Type Award Type [Axis] SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] Total Accounts Payable and Accrued Liabilities, Current Accounts payable and accrued expenses [Abstract] Accounts Payable and Accrued Liabilities, Current [Abstract] ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts Payable and Accrued Liabilities Disclosure [Text Block] Accounts receivable Accounts receivable Accrued legal and other professional fees Additional paid-in capital Fair Value Measurements [Abstract] Additional Fair Value Elements [Abstract] Amount amortized related to agreement Adjustments to reconcile net income to net cash provided by operating activities: Stock-based compensation expense Allocated Share-based Compensation Expense Amortization expense for patents Amortization of Intangible Assets Amortized premium included in interest income Amortization of Debt Discount (Premium) Antidilutive Securities [Axis] Antidilutive securities excluded from earnings per share calculation (in shares) Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] Antidilutive Securities, Name [Domain] Total assets Assets Assets Assets [Abstract] Current assets: Total current assets Assets, Current Basis of Presentation Cash and cash equivalents Cash and cash equivalents at end of period Cash and cash equivalents at beginning of year Cash, Cash Equivalents and Investments Cash, Cash Equivalents and Investments [Abstract] Decrease in cash and cash equivalents Cash and Cash Equivalents, Period Increase (Decrease) Cash equivalents Cash and Cash Equivalents, Fair Value Disclosure Certificates of Deposit [Member] Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] Commitments and Contingencies Commitments and Contingencies, Policy [Policy Text Block] Common stock, issued (in shares) Common stock, authorized (in shares) Common stock, $.001 par value; 10,000,000 shares authorized; 7,545,167 and 7,290,167 shares issued, 7,149,559 and 6,918,579 shares outstanding as of September 30, 2016 and December 31, 2015, respectively Common Stock, Value, Issued Common stock, par value (in dollars per share) Common stock, outstanding (in shares) Common Stock, Shares, Outstanding Comprehensive Income [Abstract] Comprehensive Income Concentration Risk [Line Items] Concentration of Credit Risk and Major Customers Concentration Risk [Table] Principles of Consolidation Corporate Bonds [Member] Costs and expenses: Total Cost and Expenses Costs and Expenses Deferred royalty buy-down - long term Deferred Costs Deferred revenue recognized Deferred Revenue, Revenue Recognized Deferred royalty buy-down - long term, net Deferred royalty buy-down Deferred Costs, Current Deferred revenue Deferred Revenue, Current Deferred Revenue [Abstract] Deferred revenue Long-term deferred revenue Deferred revenue on licensing agreements Deferred revenue on licensing agreements Deferred tax assets Deferred Tax Assets, Net of Valuation Allowance Deferred tax assets, net Amortization Accrued liabilities of discontinued operations Basic net income per share (in dollars per share) Diluted net income per share (in dollars per share) NET INCOME PER SHARE Earnings Per Share [Text Block] NET INCOME PER SHARE [Abstract] Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] Accrued payroll and related costs Recognized compensation period Stock Options [Member] Employee Stock Option [Member] Unrecognized compensation cost related to non-vested stock options outstanding Excess tax benefits from share-based payment arrangements Excess Tax Benefit from Share-based Compensation, Financing Activities Fair Value Measurements Asset Class [Axis] Fair Value, Hierarchy [Axis] Measurement Frequency [Axis] Asset Class [Domain] Asset Class [Domain] Fair Value Measurements, Recurring and Nonrecurring [Table] Fair Value, Measurement Frequency [Domain] Recurring [Member] Fair Value, Measurements, Recurring [Member] Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] Fair Value Hierarchy [Domain] Fair Value Assets Measured on Recurring Basis Fair Value, Assets Measured on Recurring Basis [Table Text Block] Level 3 [Member] Fair Value, Inputs, Level 3 [Member] Level 1 [Member] Fair Value, Inputs, Level 1 [Member] Level 2 [Member] Fair Value, Inputs, Level 2 [Member] Thereafter Finite-Lived Intangible Assets by Major Class [Axis] 2017 Finite-Lived Intangible Assets, Amortization Expense, Year Two Accumulated amortization Finite-Lived Intangible Assets, Accumulated Amortization Finite-Lived Intangible Assets [Line Items] Patents Estimated useful lives Finite-Lived Intangible Asset, Useful Life October 1, 2016 to December 31, 2016 Finite-Lived Intangible Assets, Major Class Name [Domain] Net Patent Costs [Abstract] Finite-Lived Intangible Assets, Net [Abstract] 2020 Finite-Lived Intangible Assets, Amortization Expense, Year Five Estimated amortization expense [Abstract] Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] Increase in capitalized patent costs Finite-Lived Intangible Assets, Period Increase (Decrease) 2019 2018 General and administrative General and Administrative [Member] PATENT COSTS [Abstract] Held-to-maturity securities, current Schedule of Maturities Held-to-maturity Securities [Table Text Block] Held-to-maturity securities, noncurrent PROVISION FOR INCOME TAXES [Abstract] Income Statement Location [Axis] Income Statement Location [Domain] Income before income tax expense Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest PROVISION FOR INCOME TAXES Income Tax Disclosure [Text Block] Provision for income tax expense Provision for income taxes Income Tax Expense (Benefit) Condensed Consolidated Income Statements (unaudited) [Abstract] Provision for Income taxes [Abstract] Income Tax Expense (Benefit), Continuing Operations [Abstract] Income tax receivable Provision for Income Taxes Taxes Income taxes payable Increase (Decrease) in Income Taxes Payable Accounts receivable Increase (Decrease) in Accounts Receivable Deferred tax expense Increase (Decrease) in Deferred Income Taxes Accounts payable and accrued expenses Patent costs Increase (Decrease) in Intangible Assets, Current Deferred revenue Increase (Decrease) in Deferred Revenue Income tax receivable Increase (Decrease) in Income Taxes Receivable Changes in operating assets and liabilities: Prepaid expenses and other current assets Increase (Decrease) in Prepaid Expense and Other Assets PATENT COSTS Intangible Assets Disclosure [Text Block] Patent costs, net Net patent costs Interest Investments [Domain] Interest income Investment Income, Interest Investment Type [Axis] Investments Investments, Fair Value Disclosure Aggregate fair value of investments Investments Total liabilities and stockholders' equity Liabilities and Equity Liabilities and stockholders' equity Total current liabilities Liabilities, Current Current liabilities: Licensing revenues Long-term investments Major Customers [Axis] Maximum [Member] Minimum [Member] Institutional Money Market [Member] Municipal Bonds [Member] Municipal Bonds [Member] Name of Major Customer [Domain] Cash flows from financing activities: Net cash used in investing activities Net Cash Provided by (Used in) Investing Activities, Continuing Operations Cash flows from operating activities: Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] EX-101.PRE 10 bstc-20160930_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE XML 11 R1.htm IDEA: XBRL DOCUMENT

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2016	Nov. 08, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	BIOSPECIFICS TECHNOLOGIES CORP
Entity Central Index Key	0000875622
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		7,147,159
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016

XML 12 R2.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Balance Sheets (unaudited) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 4,747,745	$ 5,137,875
Short term investments	45,075,570	28,347,542
Accounts receivable	3,846,752	2,547,920
Income tax receivable	0	916,843
Deferred royalty buy-down	1,215,620	1,017,981
Prepaid expenses and other current assets	554,401	383,810
Total current assets	55,440,088	38,351,971
Long-term investments	1,443,099	3,596,541
Deferred royalty buy-down - long term, net	1,913,697	2,851,423
Deferred tax assets, net	3,370,836	622,972
Patent costs, net	268,928	275,206
Total assets	62,436,648	45,698,113
Current liabilities:
Accounts payable and accrued expenses	991,867	611,009
Income taxes payable	279,333	0
Deferred revenue	1,223,479	149,378
Accrued liabilities of discontinued operations	78,138	78,138
Total current liabilities	2,572,817	838,525
Long-term deferred revenue	6,642,441	49,379
Stockholders' equity:
Series A Preferred stock, $.50 par value, 700,000 shares authorized; none outstanding	0	0
Common stock, $.001 par value; 10,000,000 shares authorized; 7,545,167 and 7,290,167 shares issued, 7,149,559 and 6,918,579 shares outstanding as of September 30, 2016 and December 31, 2015, respectively	7,545	7,290
Additional paid-in capital	32,650,938	31,797,418
Retained earnings	27,694,041	19,238,610
Treasury stock, 395,608 and 371,588 shares at cost as of September 30, 2016 and December 31, 2015, respectively	(7,131,134)	(6,233,109)
Total stockholders' equity	53,221,390	44,810,209
Total liabilities and stockholders' equity	$ 62,436,648	$ 45,698,113

XML 13 R3.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Stockholders' equity:
Series A Preferred stock, par value (in dollars per share)	$ 0.50	$ 0.50
Series A Preferred stock, authorized (in shares)	700,000	700,000
Series A Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	10,000,000	10,000,000
Common stock, issued (in shares)	7,545,167	7,290,167
Common stock, outstanding (in shares)	7,149,559	6,918,579
Treasury stock, shares (in shares)	395,608	371,588

XML 14 R4.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Income Statements (unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues:
Royalties	$ 6,119,815	$ 5,277,494	$ 18,843,273	$ 15,574,234
Licensing revenues	762,345	1,012,345	787,034	1,037,034
Total Revenues	6,882,160	6,289,839	19,630,307	16,611,268
Costs and expenses:
Research and development	312,907	258,837	1,005,884	755,038
General and administrative	1,843,368	1,709,044	5,909,785	5,307,431
Total Cost and Expenses	2,156,275	1,967,881	6,915,669	6,062,469
Operating income	4,725,885	4,321,958	12,714,638	10,548,799
Other income:
Interest income	80,674	26,744	200,704	58,946
Other income	6,254	1,477	37,448	6,110
Total other income	86,928	28,221	238,152	65,056
Income before income tax expense	4,812,813	4,350,179	12,952,790	10,613,855
Provision for income tax expense	(1,759,220)	(1,479,200)	(4,497,359)	(3,654,772)
Net income	$ 3,053,593	$ 2,870,979	$ 8,455,431	$ 6,959,083
Basic net income per share (in dollars per share)	$ 0.43	$ 0.42	$ 1.20	$ 1.02
Diluted net income per share (in dollars per share)	$ 0.42	$ 0.39	$ 1.16	$ 0.96
Shares used in computation of basic net income per share (in shares)	7,062,543	6,892,637	7,031,068	6,797,506
Shares used in computation of diluted net income per share (in shares)	7,280,375	7,316,287	7,277,780	7,259,338

XML 15 R5.htm IDEA: XBRL DOCUMENT

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income	$ 8,455,431	$ 6,959,083
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization	1,215,814	647,071
Stock-based compensation expense	100,428	72,305
Deferred tax expense	(2,747,864)	441,211
Changes in operating assets and liabilities:
Accounts receivable	(1,298,832)	(1,273,079)
Income tax receivable	916,843	(521,121)
Prepaid expenses and other current assets	(170,591)	(136,152)
Patent costs	(23,341)	(24,204)
Accounts payable and accrued expenses	380,858	107,372
Income taxes payable	279,333	0
Deferred revenue	7,667,163	(37,034)
Net cash provided by operating activities	14,775,242	6,235,452
Cash flows from investing activities:
Maturity of marketable investments	32,548,040	11,043,544
Purchases of marketable investments	(47,568,734)	(24,422,334)
Net cash used in investing activities	(15,020,694)	(13,378,790)
Cash flows from financing activities:
Proceeds from stock option exercises	529,300	2,813,984
Payments for repurchase of common stock	(898,025)	(1,182,068)
Excess tax benefits from share-based payment arrangements	224,047	3,188,682
Net cash (used in) provided by financing activities	(144,678)	4,820,598
Decrease in cash and cash equivalents	(390,130)	(2,322,740)
Cash and cash equivalents at beginning of year	5,137,875	9,810,816
Cash and cash equivalents at end of period	4,747,745	7,488,076
Cash paid during the period for:
Interest	0	0
Taxes	$ 5,825,000	$ 546,000

XML 16 R6.htm IDEA: XBRL DOCUMENT

ORGANIZATION AND DESCRIPTION OF BUSINESS

9 Months Ended

Sep. 30, 2016

ORGANIZATION AND DESCRIPTION OF BUSINESS [Abstract]

ORGANIZATION AND DESCRIPTION OF BUSINESS

1.	ORGANIZATION AND DESCRIPTION OF BUSINESS

XML 17 R7.htm IDEA: XBRL DOCUMENT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2016

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Principles of Consolidation

Critical Accounting Policies, Estimates and Assumptions

Cash, Cash Equivalents and Investments

Fair Value Measurements

The following table presents the Company’s schedule of maturities at September 30, 2016 and December 31, 2015:

	Maturities as of September 30, 2016				Maturities as of December 31, 2015

	1 Year or Less		Greater than 1 Year		1 Year or Less		Greater than 1 Year

Municipal bonds	$	6,917,696	$	-	$	6,461,216	$	155,826

Corporate Bonds		31,218,996		1,194,049		9,882,285		1,597,715

Certificates of deposit		6,938,878		249,050		12,004,041		1,843,000
Total	$	45,075,570	$	1,443,099	$	28,347,542	$	3,596,541

September 30, 2016	Type of Instrument	Fair Value		Level 1		Level 2		Level 3

Cash equivalents	Institutional Money Market	$	1,894,904	$	1,894,904		-		-

Investments	Municipal Bonds		6,917,696		-	$	6,917,696		-

Investments	Corporate Bonds		32,413,045		-		32,413,045		-

Investments	Certificates of Deposit		7,187,928		7,187,928		-		-

December 31, 2015	Type of Instrument	Fair Value		Level 1		Level 2		Level 3

Cash equivalents	Institutional Money Market	$	715,784	$	715,784		-		-

Investments	Municipal Bonds		6,617,042		-	$	6,617,042		-

Investments	Corporate Bonds		11,480,000		-		11,480,000		-

Investments	Certificates of Deposit		13,847,041		13,847,041		-		-

Concentration of Credit Risk and Major Customers

The Company maintains its investment in FDIC insured certificates of deposits with several banks, pre-refunded municipal bonds, municipal bonds and corporate bonds.

At September 30, 2016 and December 31, 2015, our accounts receivable balances were $3.8 million and $2.5 million, respectively.

Revenue Recognition

Revenues, and their respective treatment for financial reporting purposes, are as follows:

Royalty / Mark-Up on Cost of Goods Sold

Licensing Revenue

Upfront License and Sublicensing Fees

Milestones

Treasury Stock

Receivables and Doubtful Accounts

Deferred Revenue

Reimbursable Third-Party Development Costs

Third-Party Royalties

Royalty Buy-Down

R&D Expenses

Clinical Trial Expenses

Stock-Based Compensation

Stock Option Activity

A summary of our stock option activity during the nine months ended September 30, 2016 is presented below:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2016		562,000		$	11.91		2.51	$	17,456,220
Grants		-			-		-		-
Exercised		(255,000	)		2.08		-		-
Forfeitures or expirations		-			-		-		-
Outstanding at September 30, 2016		307,000		$	20.08		3.33	$	7,857,070
Exercisable at September 30, 2016		260,750		$	17.89		2.83	$	7,243,095

During the nine months ended September 30, 2016 and 2015, the Company received $0.5 million and $2.8 million, respectively, from stock options exercised by option holders.

Property and Equipment

Comprehensive Income

For the three and nine months ended September 30, 2016 and 2015, respectively, we had no components of other comprehensive income other than net income itself.

Provision for Income Taxes

Commitments and Contingencies

New Accounting Pronouncements

XML 18 R8.htm IDEA: XBRL DOCUMENT

NET INCOME PER SHARE

9 Months Ended

Sep. 30, 2016

NET INCOME PER SHARE [Abstract]

NET INCOME PER SHARE

3.	NET INCOME PER SHARE

	Three Months Ended September 30,		Nine Months Ended September 30,
	2016	2015	2016	2015
Stock options	20,000	20,000	20,000	20,000

XML 19 R9.htm IDEA: XBRL DOCUMENT

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

9 Months Ended

Sep. 30, 2016

ACCOUNTS PAYABLE AND ACCRUED EXPENSES [Abstract]

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

4.	ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of the following:

	September 30, 2016		December 31, 2015
Trade accounts payable and accrued expenses	$	728,425	$	372,367
Accrued legal and other professional fees		66,775		74,138
Accrued payroll and related costs		196,667		164,504
Total	$	991,867	$	611,009

XML 20 R10.htm IDEA: XBRL DOCUMENT

PATENT COSTS

9 Months Ended

Sep. 30, 2016

PATENT COSTS [Abstract]

PATENT COSTS

5.	PATENT COSTS

	September 30, 2016			December 31, 2015
Patents	$	720,600		$	697,260
Accumulated amortization		(451,672	)		(422,054	)
	$	268,928		$	275,206

October 1, 2016 to December 31, 2016	$	10,600
2017		38,700
2018		38,700
2019		38,700
2020		27,400
Thereafter	$	114,800

XML 21 R11.htm IDEA: XBRL DOCUMENT

PROVISION FOR INCOME TAXES

9 Months Ended

Sep. 30, 2016

PROVISION FOR INCOME TAXES [Abstract]

PROVISION FOR INCOME TAXES

6.	PROVISION FOR INCOME TAXES

For the three and nine month periods ended September 30, 2015, the provision for income taxes was $1.5 million and $3.7 million, respectively.

As of September 30, 2016, the Company believes that there are no significant uncertain tax positions and no amounts have been recorded for interest and penalties.

XML 22 R12.htm IDEA: XBRL DOCUMENT

SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2016

SUBSEQUENT EVENTS [Abstract]

SUBSEQUENT EVENTS

7.	SUBSEQUENT EVENTS

XML 23 R13.htm IDEA: XBRL DOCUMENT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2016

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

Basis of Presentation

Principles of Consolidation

Critical Accounting Policies, Estimates and Assumptions

Cash, Cash Equivalents and Investments

Fair Value Measurements

The following table presents the Company’s schedule of maturities at September 30, 2016 and December 31, 2015:

	Maturities as of September 30, 2016				Maturities as of December 31, 2015

	1 Year or Less		Greater than 1 Year		1 Year or Less		Greater than 1 Year

Municipal bonds	$	6,917,696	$	-	$	6,461,216	$	155,826

Corporate Bonds		31,218,996		1,194,049		9,882,285		1,597,715

Certificates of deposit		6,938,878		249,050		12,004,041		1,843,000
Total	$	45,075,570	$	1,443,099	$	28,347,542	$	3,596,541

September 30, 2016	Type of Instrument	Fair Value		Level 1		Level 2		Level 3

Cash equivalents	Institutional Money Market	$	1,894,904	$	1,894,904		-		-

Investments	Municipal Bonds		6,917,696		-	$	6,917,696		-

Investments	Corporate Bonds		32,413,045		-		32,413,045		-

Investments	Certificates of Deposit		7,187,928		7,187,928		-		-

December 31, 2015	Type of Instrument	Fair Value		Level 1		Level 2		Level 3

Cash equivalents	Institutional Money Market	$	715,784	$	715,784		-		-

Investments	Municipal Bonds		6,617,042		-	$	6,617,042		-

Investments	Corporate Bonds		11,480,000		-		11,480,000		-

Investments	Certificates of Deposit		13,847,041		13,847,041		-		-

Concentration of Credit Risk and Major Customers

The Company maintains its investment in FDIC insured certificates of deposits with several banks, pre-refunded municipal bonds, municipal bonds and corporate bonds.

At September 30, 2016 and December 31, 2015, our accounts receivable balances were $3.8 million and $2.5 million, respectively.

Revenue Recognition

Royalty / Mark-Up on Cost of Goods Sold

Licensing Revenue

Upfront License and Sublicensing Fees

Milestones

Treasury Stock

Receivables and Doubtful Accounts

Deferred Revenue

Reimbursable Third-Party Development Costs

Third-Party Royalties

Royalty Buy-Down

R&D Expenses

Clinical Trial Expenses

Stock-Based Compensation

Stock Option Activity

A summary of our stock option activity during the nine months ended September 30, 2016 is presented below:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2016		562,000		$	11.91		2.51	$	17,456,220
Grants		-			-		-		-
Exercised		(255,000	)		2.08		-		-
Forfeitures or expirations		-			-		-		-
Outstanding at September 30, 2016		307,000		$	20.08		3.33	$	7,857,070
Exercisable at September 30, 2016		260,750		$	17.89		2.83	$	7,243,095

During the nine months ended September 30, 2016 and 2015, the Company received $0.5 million and $2.8 million, respectively, from stock options exercised by option holders.

Property and Equipment

Comprehensive Income

For the three and nine months ended September 30, 2016 and 2015, respectively, we had no components of other comprehensive income other than net income itself.

Provision for Income Taxes

Commitments and Contingencies

New Accounting Pronouncements

XML 24 R14.htm IDEA: XBRL DOCUMENT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2016

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

Schedule of Maturities

The following table presents the Company’s schedule of maturities at September 30, 2016 and December 31, 2015:

	Maturities as of September 30, 2016				Maturities as of December 31, 2015

	1 Year or Less		Greater than 1 Year		1 Year or Less		Greater than 1 Year

Municipal bonds	$	6,917,696	$	-	$	6,461,216	$	155,826

Corporate Bonds		31,218,996		1,194,049		9,882,285		1,597,715

Certificates of deposit		6,938,878		249,050		12,004,041		1,843,000
Total	$	45,075,570	$	1,443,099	$	28,347,542	$	3,596,541

Fair Value Assets Measured on Recurring Basis

The following tables present the Company’s fair value hierarchy for these financial assets as of September 30, 2016 and December 31, 2015:

September 30, 2016	Type of Instrument	Fair Value		Level 1		Level 2		Level 3

Cash equivalents	Institutional Money Market	$	1,894,904	$	1,894,904		-		-

Investments	Municipal Bonds		6,917,696		-	$	6,917,696		-

Investments	Corporate Bonds		32,413,045		-		32,413,045		-

Investments	Certificates of Deposit		7,187,928		7,187,928		-		-

December 31, 2015	Type of Instrument	Fair Value		Level 1		Level 2		Level 3

Cash equivalents	Institutional Money Market	$	715,784	$	715,784		-		-

Investments	Municipal Bonds		6,617,042		-	$	6,617,042		-

Investments	Corporate Bonds		11,480,000		-		11,480,000		-

Investments	Certificates of Deposit		13,847,041		13,847,041		-		-

Summary of Stock Option Activity

A summary of our stock option activity during the nine months ended September 30, 2016 is presented below:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at January 1, 2016		562,000		$	11.91		2.51	$	17,456,220
Grants		-			-		-		-
Exercised		(255,000	)		2.08		-		-
Forfeitures or expirations		-			-		-		-
Outstanding at September 30, 2016		307,000		$	20.08		3.33	$	7,857,070
Exercisable at September 30, 2016		260,750		$	17.89		2.83	$	7,243,095

- Definition

Tabular disclosure of all investments in certain debt and equity securities for which the entity has the positive intent and ability to hold until maturity.

+ References + Details

XML 25 R15.htm IDEA: XBRL DOCUMENT

NET INCOME PER SHARE (Tables)

9 Months Ended

Sep. 30, 2016

NET INCOME PER SHARE [Abstract]

Number of Common Equivalent Shares Excluded from the Calculation of Diluted Net Income Per Share

	Three Months Ended September 30,		Nine Months Ended September 30,
	2016	2015	2016	2015
Stock options	20,000	20,000	20,000	20,000

XML 26 R16.htm IDEA: XBRL DOCUMENT

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)

9 Months Ended

Sep. 30, 2016

ACCOUNTS PAYABLE AND ACCRUED EXPENSES [Abstract]

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following:

	September 30, 2016		December 31, 2015
Trade accounts payable and accrued expenses	$	728,425	$	372,367
Accrued legal and other professional fees		66,775		74,138
Accrued payroll and related costs		196,667		164,504
Total	$	991,867	$	611,009

XML 27 R17.htm IDEA: XBRL DOCUMENT

PATENT COSTS (Tables)

9 Months Ended

Sep. 30, 2016

PATENT COSTS [Abstract]

Net Patent Costs

For each period presented below, net patent costs consisted of:

	September 30, 2016			December 31, 2015
Patents	$	720,600		$	697,260
Accumulated amortization		(451,672	)		(422,054	)
	$	268,928		$	275,206

Estimated Aggregate Future Amortization Expense

The estimated aggregate amortization expense for the remaining three months of 2016 and each of the years below is approximately as follows:

October 1, 2016 to December 31, 2016	$	10,600
2017		38,700
2018		38,700
2019		38,700
2020		27,400
Thereafter	$	114,800

XML 28 R18.htm IDEA: XBRL DOCUMENT

ORGANIZATION AND DESCRIPTION OF BUSINESS (Details) - Endo [Member] - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Feb. 05, 2016
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Deferred revenue on licensing agreements						$ 8,250,000
Proceeds from licensing agreement	$ 8,250,000	$ 750,000	$ 0	$ 750,000	$ 0
Opt-in fee receivable for each indication						500,000
Regular opt-in fee receivable for each indication						$ 750,000

XML 29 R19.htm IDEA: XBRL DOCUMENT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)		1 Months Ended	3 Months Ended			9 Months Ended		12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Nov. 01, 2016 USD ($)	Feb. 29, 2016 USD ($)	Sep. 30, 2016 USD ($) $ / shares shares	Sep. 30, 2015 USD ($)	Mar. 31, 2012 USD ($)	Sep. 30, 2016 USD ($) Payment Plan $ / shares shares	Sep. 30, 2015 USD ($) $ / shares shares	Dec. 31, 2015 USD ($) $ / shares shares	Feb. 05, 2016 USD ($)
Cash, Cash Equivalents and Investments [Abstract]
Aggregate fair value of investments			$ 46,500,000			$ 46,500,000		$ 31,900,000
Fair Value Measurements [Abstract]
Unrealized gains (losses) on investments						0		0
Amortized premium included in interest income						(446,000)		(316,000)
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity securities, current			45,075,570			45,075,570		28,347,542
Held-to-maturity securities, noncurrent			1,443,099			1,443,099		3,596,541
Concentration Risk [Line Items]
Royalty revenue			6,119,815	$ 5,277,494		18,843,273	$ 15,574,234
Accounts receivable			3,846,752			3,846,752		2,547,920
Milestones Revenue [Abstract]
Recognized milestone revenue			0	1,000,000		0	1,000,000
Deferred Revenue [Abstract]
Deferred revenue recognized			12,345	12,345		37,034	$ 37,034
Deferred revenue			7,900,000			7,900,000		200,000
Nonrefundable upfront product license fees						62,000
Deferred revenue from foreign tax withholding			100,000			$ 100,000
Treasury Stock [Abstract]
Treasury stock purchased (in shares) \| shares						24,020	27,433
Average price of share (in dollars per share) \| $ / shares						$ 37.39	$ 43.07
Reimbursable Third Party Development Costs [Abstract]
Accrued patent costs			25,000			$ 25,000		20,000
Third Party Royalties [Abstract]
Royalty expenses			400,000	300,000		1,200,000	$ 1,000,000
Royalty Buy Down [Abstract]
Payment for royalty buy down					$ 1,500,000	$ 600,000
Number of additional cash payments for royalty buy down \| Payment						5
Number of cash payments made for royalty obligation \| Payment						3
Amount amortized related to agreement			247,000	221,000		$ 740,000	420,000
Deferred costs amortization period						5 years
Deferred royalty buy-down - long term			$ 3,100,000			$ 3,100,000
Share-based Compensation [Abstract]
Number of stock based compensation plans in effect \| Plan						1
Additional Disclosures [Abstract]
Proceeds from stock option exercises						$ 529,300	2,813,984
Closing price of company stock (in dollars per share) \| $ / shares			$ 45.67			$ 45.67
Comprehensive Income [Abstract]
Other comprehensive income			$ 0	0		$ 0	0
Provision for Income taxes [Abstract]
Unrecognized tax benefits			0	0		$ 0	0
Subsequent Event [Member]
Subsequent Event [Line Items]
Additional lease term extension period	1 year
Monthly base rent	$ 10,757
Notice period to cancel lease agreements	3 months
Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life of property, plant and equipment						5 years
Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life of property, plant and equipment						10 years
Recurring [Member] \| Institutional Money Market [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents			1,894,904			$ 1,894,904		715,784
Recurring [Member] \| Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments			6,917,696			6,917,696		6,617,042
Recurring [Member] \| Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments			32,413,045			32,413,045		11,480,000
Recurring [Member] \| Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments			7,187,928			7,187,928		13,847,041
Recurring [Member] \| Level 1 [Member] \| Institutional Money Market [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents			1,894,904			1,894,904		715,784
Recurring [Member] \| Level 1 [Member] \| Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments			0			0		0
Recurring [Member] \| Level 1 [Member] \| Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments			0			0		0
Recurring [Member] \| Level 1 [Member] \| Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments			7,187,928			7,187,928		13,847,041
Recurring [Member] \| Level 2 [Member] \| Institutional Money Market [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents			0			0		0
Recurring [Member] \| Level 2 [Member] \| Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments			6,917,696			6,917,696		6,617,042
Recurring [Member] \| Level 2 [Member] \| Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments			32,413,045			32,413,045		11,480,000
Recurring [Member] \| Level 2 [Member] \| Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments			0			0		0
Recurring [Member] \| Level 3 [Member] \| Institutional Money Market [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents			0			0		0
Recurring [Member] \| Level 3 [Member] \| Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments			0			0		0
Recurring [Member] \| Level 3 [Member] \| Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments			0			0		0
Recurring [Member] \| Level 3 [Member] \| Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments			0			0		0
Endo [Member]
Concentration Risk [Line Items]
Royalty revenue			6,900,000	6,300,000		19,600,000	16,600,000
Accounts receivable			3,800,000			3,800,000		2,500,000
Royalty / Mark-Up on Cost of Goods Sold [Abstract]
Deferred revenue on licensing agreements									$ 8,250,000
Proceeds from licensing agreement		$ 8,250,000	750,000	0		750,000	0
Deferred Revenue [Abstract]
Deferred revenue recognized			274,000	0		546,000	0
Deferred revenue			7,700,000			7,700,000
Municipal Bonds [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity securities, current			6,917,696			6,917,696		6,461,216
Held-to-maturity securities, noncurrent			0			0		155,826
Corporate Bonds [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity securities, current			31,218,996			31,218,996		9,882,285
Held-to-maturity securities, noncurrent			1,194,049			1,194,049		1,597,715
Certificates of Deposit [Member]
Schedule of Held-to-maturity Securities [Line Items]
Held-to-maturity securities, current			6,938,878			6,938,878		12,004,041
Held-to-maturity securities, noncurrent			249,050			249,050		$ 1,843,000
General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense			$ 33,000	$ 33,000		$ 100,000	$ 72,000
Stock Options [Member]
Stock Option Activity [Roll Forward]
Outstanding, beginning of period (in shares) \| shares						562,000
Grants (in shares) \| shares						0	0
Exercised (in shares) \| shares						(255,000)
Forfeitures or expirations (in shares) \| shares						0
Outstanding, end of period (in shares) \| shares			307,000			307,000		562,000
Exercisable, end of period (in shares) \| shares			260,750			260,750
Weighted-Average Exercise Price [Roll Forward]
Outstanding, beginning of period (in dollars per share) \| $ / shares						$ 11.91
Grants (in dollars per share) \| $ / shares						0
Exercised (in dollars per share) \| $ / shares						2.08
Forfeitures or expirations (in dollars per share) \| $ / shares						0
Outstanding, end of period (in dollars per share) \| $ / shares			$ 20.08			20.08		$ 11.91
Exercisable, end of period (in dollars per share) \| $ / shares			$ 17.89			$ 17.89
Weighted Average Remaining Contractual Term [Roll Forward]
Weighted average remaining contractual term, outstanding						3 years 3 months 29 days		2 years 6 months 4 days
Weighted average remaining contractual term, exercisable						2 years 9 months 29 days
Aggregate Intrinsic Value [Roll Forward]
Aggregate intrinsic value, outstanding						$ 17,456,220
Aggregate intrinsic value, grants						0
Aggregate intrinsic value, exercised						0
Aggregate intrinsic value, forfeitures or expirations						0
Aggregate intrinsic value, outstanding			$ 7,857,070			7,857,070		$ 17,456,220
Aggregate intrinsic value, exercisable			7,243,095			7,243,095
Additional Disclosures [Abstract]
Proceeds from stock option exercises						500,000	$ 2,800,000
Unrecognized compensation cost related to non-vested stock options outstanding			$ 301,000			$ 301,000
Recognized compensation period						2 years 4 months 24 days

XML 30 R20.htm IDEA: XBRL DOCUMENT

NET INCOME PER SHARE (Details) - Stock Options [Member] - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share calculation (in shares)	20,000	20,000	20,000	20,000
Exercise price (in dollars per share)	$ 29.21		$ 29.21

XML 31 R21.htm IDEA: XBRL DOCUMENT

ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Accounts payable and accrued expenses [Abstract]
Trade accounts payable and accrued expenses	$ 728,425	$ 372,367
Accrued legal and other professional fees	66,775	74,138
Accrued payroll and related costs	196,667	164,504
Total	$ 991,867	$ 611,009

XML 32 R22.htm IDEA: XBRL DOCUMENT

PATENT COSTS (Details) - USD ($)	3 Months Ended		9 Months Ended
PATENT COSTS (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Net Patent Costs [Abstract]
Net patent costs	$ 268,928		$ 268,928		$ 275,206
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Increase in capitalized patent costs			23,300
Net Patent Costs [Abstract]
Patents	720,600		720,600		697,260
Accumulated amortization	(451,672)		(451,672)		(422,054)
Net patent costs	268,928		268,928		$ 275,206
Amortization expense for patents	10,300	$ 11,000	29,600	$ 34,000
Estimated amortization expense [Abstract]
October 1, 2016 to December 31, 2016	10,600		10,600
2017	38,700		38,700
2018	38,700		38,700
2019	38,700		38,700
2020	27,400		27,400
Thereafter	$ 114,800		$ 114,800
Patents [Member] \| Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives			1 year
Patents [Member] \| Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated useful lives			12 years

XML 33 R23.htm IDEA: XBRL DOCUMENT

PROVISION FOR INCOME TAXES (Details) - USD ($)	3 Months Ended		9 Months Ended
PROVISION FOR INCOME TAXES (Details) - USD ($)	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
PROVISION FOR INCOME TAXES [Abstract]
Provision for income taxes	$ 1,759,220	$ 1,479,200	$ 4,497,359	$ 3,654,772
Deferred tax assets	3,400,000		3,400,000		$ 600,000
Uncertain tax positions	0	$ 0	0	$ 0
Interest and penalties	$ 0		$ 0

XML 34 R24.htm IDEA: XBRL DOCUMENT

SUBSEQUENT EVENTS (Details) - Subsequent Event [Member]	Nov. 01, 2016 USD ($)
Subsequent Event [Line Items]
Additional lease term extension period	1 year
Monthly base rent	$ 10,757
Notice period to cancel lease agreements	3 months

EXCEL 35 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx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end