Discontinued Operations

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Discontinued Operations [Abstract]

Discontinued Operations

Note 4—Discontinued Operations

On August 31, 2012, the Company sold all of the shares of common stock of Agera held by the Company, which represents 57% of the outstanding common stock of Agera, to Rohto Pharmaceutical Co., Ltd. for approximately $1.0 million. Accordingly, all operating results from continuing operations exclude the results for Agera which are presented as discontinued operations for all prior year numbers. The Company recorded a gain of approximately $0.4 million on the sale.

As of December 31, 2011, the assets ($188 accounts receivable, net, $271 inventory and $39 prepaid expenses) and liabilities of Agera have been segregated as assets and liabilities of discontinued operations in the accompanying consolidated balance sheets. The financial results of Agera are classified as discontinued operations in the accompanying Consolidated Statement of Operations. Summary financial information related to discontinued operations is as follows:

	For the three months ended September 30, 2012		For the three months ended September 30, 2011			For the nine months ended September 30, 2012			For the nine months ended September 30, 2011
Product sales	$	142	$	159		$	516		$	621
Cost of sales		65		93			275			317
Gross profit		77		66			241			304
Operating income (loss)	$	20	$	(38	)	$	27		$	22
Net income (loss)	$	11	$	(32	)	$	(2	)	$	(19	)

Note 5—Discontinued Operations

On June 7, 2012, the Company entered into a share purchase agreement (Agreement) with Rohto Pharmaceutical Co., Ltd. (Purchaser), pursuant to which the Company agreed to sell to Purchaser all of the shares of common stock of Agera held by the Company (the Agera Shares), which represents 57% of the outstanding common stock of Agera. The closing of the Agreement is expected to take place on August 31, 2012, or such earlier time as the parties agree. Pursuant to the Agreement, the purchase price (Purchase Price) for the Agera Shares will be (i) $850,000; plus (ii) the amount equivalent to 57% of total sum of the cash held by Agera at the date of closing; plus (iii) the amount equivalent to 57% of Agera’s accounts receivable less allowance for uncollectible account at the date of closing. Purchaser paid $400,000 of the Purchase Price (the Initial Payment) within ten business days after the execution of the Agreement, with the remaining portion of the Purchase Price to be paid within ten business days after the closing date. In the event that the Agreement is terminated due to a material breach of the Agreement by the Company the Initial Payment shall be returned to Purchaser. In the event that the Agreement is terminated due to the material breach of the Agreement by Purchaser or due to Purchaser’s failure to close the transaction by August 31, 2012, the Initial Payment shall be deemed nonrefundable and shall be retained by the Company. Accordingly, all operating results from continuing operations exclude the results for Agera which are presented as discontinued operations. The Company will not have continuing involvement after the sale and the Company expects to record a gain on the sale.

The assets and liabilities of Agera have been segregated as assets and liabilities of discontinued operations in the accompanying consolidated balance sheets. In addition, the financial results of Agera are classified as discontinued operations in the accompanying Consolidated Statement of Operations. Summary financial information related to discontinued operations is as follows:

As of December 31, 2011 and 2010, assets and liabilities classified as discontinued operations on the consolidated balance sheets are as follows:

	December 31, 2011		December 31, 2010
Accounts receivable, net	$	188,439	$	229,891
Inventory		266,347		258,939
Prepaid expenses		42,667		62,028
Current assets of discontinued operations	$	497,453	$	550,858
Accounts payable		11,855		36,224
Accrued expenses		7,782		4,909
Current liabilities of discontinued operations	$	19,637	$	41,133

As of December 31, 2011 and 2010, loss from discontinued operations on the consolidated statement of operations included the foreign subsidiaries and Agera. Agera’s loss from discontinued operations on the consolidated statement of operations is as follows:

	Successor			Successor			Successor			Predecessor
	For the year ended December 31, 2011			For the year ended December 31, 2010			Cumulative period from September 1, 2009 (date of inception) to December 31, 2011			Cumulative period from December 28, 1995 (date of inception) to August 31, 2009
Product sales	$	812,235		$	936,369		$	2,078,545		$	3,428,882
Cost of sales		451,078			502,648			1,135,775			1,876,877
Gross profit		361,157			433,721			942,770			1,552,005
Operating income (loss)	$	(54,853	)	$	23,492		$	(27,733	)	$	(5,259,848	)
Net income (loss)	$	(73,062	)	$	(28,406	)	$	(113,330	)	$	(3,460,325	)