Restatements

6 Months Ended

Jun. 30, 2012

Restatements [Abstract]

Restatements

12. Restatements:

In September 2012, the Company began a review of its revenue recognition accounting with respect to certain non-refundable cash payments received by the Company during the three months ended March 31, 2012 under the Endo Agreement (including the $30 million non-refundable upfront license fee received by the Company under the Endo Agreement in January 2012 (the “Upfront Fee”)).

Based on the Company’s process and related internal deliberations, and with input from outside consultants and representatives of Cherry Bekaert LLP, the Company’s independent registered public accounting firm, the Audit Committee of the Board of Directors and the executive management of the Company jointly determined that the Company should have allocated approximately $14.4 million of the Upfront Fee to the clinical development services unit of accounting under the Endo arrangement, and accordingly the Company should have deferred such $14.4 million amount. As such, and since the Upfront Fee was originally recognized in full during the quarter ended March 31, 2012, a determination was made that the Company’s unaudited financial statements for the three months ended March 31, 2012 required restatement to correct the error with respect to such recognition of revenue under the Endo Agreement. The following represents a summary of the restatement adjustments by financial statement line item:

	As of June 30, 2012
Balance Sheet data:
Deferred revenue, current		7,234,697
Deferred revenue, long term		5,062,366
Total liabilities		12,297,063
Accumulated deficit		(12,297,063	)
Total stockholders’ equity		(12,297,063	)

	Three months ended June 30, 2012		Six months ended June 30, 2012
Statement of Operations data:
Contract revenue		1,248,372		(12,297,063	)
Income (loss) from operations		1,248,372		(12,297,063	)
Income (loss) before income taxes		1,248,372		(12,297,063	)
Net income (loss)		1,248,372		(12,297,063	)

	June 30, 2012
	As Reported			As Restated
Balance Sheet data:
Deferred revenue, current		15,079,801			22,314,498
Deferred revenue, long term		1,475,719			6,538,085
Total liabilities		28,006,887			40,303,950
Accumulated deficit		(72,741,256	)		(85,038,319	)
Total stockholders’ equity		28,061,123			15,764,060

	Three months ended June 30, 2012				Six months ended June 30, 2012
	As Reported		As Restated		As Reported		As Restated
Statement of Operations data:
Contract revenue		15,049,600		16,297,972		45,099,200		32,802,137
Income from operations		5,899,237		7,147,609		28,009,382		15,712,319
Income before income taxes		2,534,269		3,782,641		22,830,320		10,533,257
Net income		2,534,269		3,782,641		22,830,320		10,533,257
Basic earnings per share		0.09		0.13		0.77		0.36
Diluted earnings per share		0.08		0.12		0.76		0.35