Restatements

9 Months Ended

Sep. 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 September 30, 2012
Balance Sheet data:
Deferred revenue, current		7,570,064
Deferred revenue, long term		2,901,153
Total liabilities		10,471,217
Accumulated deficit		(10,471,217	)
Total stockholders’ equity		(10,471,217	)

	Three months ended September 30, 2012		Nine months  ended September 30, 2012
Statement of Operations data:
Contract revenue		1,825,846		(10,471,217	)
Income (loss) from operations		1,825,846		(10,471,217	)
Income (loss) before income taxes		1,825,846		(10,471,217	)
Net income (loss)		1,825,846		(10,471,217	)

	As of September 30, 2012
	As Reported			As Restated
Balance Sheet data:
Deferred revenue, current		15,149,561			22,719,625
Deferred revenue, long term		1,356,359			4,257,512
Total liabilities		32,844,791			43,316,008
Accumulated deficit		(92,044,389	)		(102,515,606	)
Total stockholders’ equity		11,029,947			558,730

	Three months ended September 30, 2012						Nine months ended September 30, 2012
	As Reported			As Restated			As Reported		As Restated
Statement of Operations data:
Contract revenue		49,600			1,875,446			45,148,800		34,677,583
(Loss) income from operations		(15,884,666	)		(14,058,820	)		12,124,716		1,653,499
(Loss) income before income taxes		(19,303,133	)		(17,477,287	)		3,527,187		(6,944,030	)
Net (loss) income		(19,303,133	)		(17,477,287	)		3,527,187		(6,944,030	)
Basic earnings per share		(0.64	)		(0.58	)		0.12		(0.23	)
Diluted earnings per share		(0.64	)		(0.58	)		0.12		(0.23	)