2.	Liquidity and management’s plans:

At June 30, 2015, the Company had cash and cash equivalents of approximately $67.7 million. The Company used $19.4 million of cash from operations during the six months ended June 30, 2015 and had stockholders’ equity of $34.9 million, versus $54.4 million at December 31, 2014. The Company expects that it has sufficient cash to manage the business into mid 2016, although this assumes that the Company does not accelerate the development of other opportunities available to the Company or otherwise face unexpected events, costs or contingencies, any of which could affect the Company’s cash requirements. This expectation does not account for the potential receipt by the Company of up to a $50 million milestone payment from Endo Pharmaceutical, its commercial partner for BELBUCA™, should that product be approved by the U.S. Food and Drug Administration (“FDA”). See note 6.

Additional capital will likely be required to support the Company’s ongoing commercialization activities for BUNAVAIL^®, the reformulation project for and anticipated commercial relaunch of ONSOLIS^®, the development of Clonidine Topical Gel and Buprenorphine Depot Injection or other products which may be acquired or licensed by the Company, and general working capital requirements. Based on product development timelines and agreements with the Company’s development partners, the ability to scale up or reduce personnel and associated costs are factors considered throughout the product development life cycle. Available resources may be consumed more rapidly than currently anticipated, potentially resulting in the need for additional funding. Readers are cautioned that additional funding, capital or loans (including, without limitation, milestone or other payments from commercialization agreements) may be unavailable on favorable terms, if at all.