1.	RESTATEMENT OF PREVIOUSLY REPORTED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In our Quarterly Report on Form 10-Q for the quarter ended June 30, 2018 filed with the Securities and Exchange Commission on August 9, 2018, we underestimated the amount of royalty revenue from Endo by approximately $750,000 because we did not have sufficient controls in place and Endo’s sales materially exceeded our estimates based on available historical data for the relevant period. Consequently, we have corrected that amount for the relevant period in this Quarterly Report on Form 10-Q. We have requested that Endo provide this interim data consistently going forward and, they have provided it to us for this quarter ended September 30, 2018. As we continue to refine our estimation process and controls around the process, we will need this data to make reasonable estimates.

The “As Reported” amounts in the tables below represent the amounts reported in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2018.

The nature of the restatement adjustments and the impact of the adjustments to June 30, 2018 are shown in the following tables:

	June 30, 2018 Condensed Consolidated Balance Sheet
	As Reported		Adjustments		Restated
Assets
Accounts Receivable	$	12,893,893	$	754,365	$	13,648,258
Total Current Assets		81,402,261		754,365		82,156,626
Total Assets		89,330,315		754,365		90,084,680

Liabilities
AP and Accrued Liabilities		1,591,707		58,740		1,650,447
Income Tax Payable		801,800		148,361		950,161
Total Current Liabilities		2,393,507		207,101		2,600,608

Stockholders' Equity
Retained Earnings		60,402,721		547,264		60,949,985
Total Stockholders' Equity		86,936,808		547,264		87,484,072
Total Liabilities and Stockholders' Equity	$	89,330,315	$	754,365	$	90,084,680

	Condensed Consolidated Income Statements
	Three months ended June 30, 2018									Six months ended June 30, 2018
	As Reported			Adjustments			Restated			As Reported			Adjustments			Restated
Revenues
Royalties	$	7,061,139		$	754,365		$	7,815,504		$	14,146,139		$	754,365		$	14,900,504
Total Revenues		7,096,409			754,365			7,850,774			14,185,818			754,365			14,940,183

Cost and expenses
General and administrative		1,985,212			58,740			2,043,952			4,054,845			58,740			4,113,585
Total cost and expenses		2,197,008			58,740			2,255,748			4,461,868			58,740			4,520,608

Operating income		4,899,401			695,625			5,595,026			9,723,950			695,625			10,419,575

Income before income tax expense		5,255,132			695,625			5,950,757			10,312,310			695,625			11,007,935
Provision for income tax expense		(954,465	)		(148,361	)		(1,102,826	)		(2,033,039	)		(148,361	)		(2,181,400	)
Net income	$	4,300,667		$	547,264		$	4,847,931		$	8,279,271		$	547,264		$	8,826,535

Basic net income per share	$	0.60					$	0.67		$	1.15					$	1.23
Diluted net income per share	$	0.59					$	0.66		$	1.13					$	1.21

	Condensed Consolidated Statement of Cash Flow Six months ended June 30, 2018
	As Reported			Adjustments			Restated
Cash Flows from Operating Activities
Net Income	$	8,279,271		$	547,264		$	8,826,535
Changes in Operating Assets and Liabilities:
Accounts Receivable		(684,061	)		(754,365	)		(1,438,426	)
Income tax receivable		(666,874	)		148,361			(518,513	)
Accounts payable and accrued expenses		118,696			58,740			177,436