2.	Liquidity:

At December 31, 2017, the Company had cash of approximately $21.2 million. The Company used $32.5 million of cash in operations during the year-ended December 31, 2017 and had stockholders’ equity of $8.9 million, versus stockholders’ deficit of $17.7 million at December 31, 2016. The Company expects that it has sufficient cash to manage the business as currently planned into the second quarter of 2019, which includes access to additional capital through CRG Servicing LLC (“CRG”) from the CRG loan of $15 million if it satisfies the third draw requirements (see note 11) as well as equity markets if the Company chooses or a combination of both that would provide sufficient capital necessary to support the commercialization of BELBUCA^® and BUNAVAIL^®. This estimation assumes that the Company does not otherwise face unexpected events, costs or contingencies, any of which could affect the Company’s cash requirements from time to time. As a result of the Company’s late filing of certain financing information related to its reacquisition of BELBUCA^® in 2017, the Company is unable to utilize its universal shelf registration statement and associated at-the-market offering program until April 2018.

Additional capital will be required to support the continued commercialization of the Company’s BELBUCA^® and BUNAVAIL^® products, the reformulation project for and the anticipated commercial relaunch of ONSOLIS^®, the potential continued development of Buprenorphine Extended Release 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. Additional funding, capital or loans (including, without limitation, milestone or other payments from commercialization agreements) may be unavailable on favorable terms, if at all.