2.	Liquidity and management’s plans:

At September 30, 2015, the Company had cash and cash equivalents of approximately $54.4 million. The Company used $32.7 million of cash from operations during the nine months ended September 30, 2015 and had stockholders’ equity of $19.7 million at September 30, 2015, versus $54.4 million at December 31, 2014. The Company expects that it has sufficient cash to manage the business into approximately the middle of 2017, although this estimation assumes that the Company does not accelerate the development of existing, or acquire other, drug development opportunities or otherwise face unexpected events, costs or contingencies, any of which could affect the Company’s cash requirements. This estimation also includes the anticipated receipt by the Company of a $50 million milestone payment, less approximately $6 million of cumulative pre-payments received and recorded in deferred revenue current in the accompanying condensed consolidated balance sheet from Endo Pharmaceuticals Inc., a subsidiary of Endo International plc (“Endo”), the Company’s commercial partner for BELBUCA™ (CIII) (buprenorphine HCl) which was approved by the U.S. Food and Drug Administration (“FDA”) on October 23, 2015 (see notes 6 and 11).

Additional capital may be required to support the Company’s ongoing commercialization activities for BUNAVAIL^®, the anticipated commercial relaunch of ONSOLIS^®, the continued development of Clonidine Topical Gel and Buprenorphine Depot Injection or other products which may be acquired or licensed by the Company, and for 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.