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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2014	May 15, 2014
Document And Entity Information
Entity Registrant Name	Retrophin, Inc.
Entity Central Index Key	0001438533
Document Type	10-Q
Document Period End Date	Mar. 31, 2014
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		25,485,339
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2014

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2014	Dec. 31, 2013
Current assets:
Cash	$ 3,695,463	$ 5,997,307
Accounts receivable	28,800
Inventory	349,130
Marketable securities	1,345,339	132,994
Prepaid expenses and other current assets	1,023,564	1,370,943
Total current assets	6,442,296	7,501,244
Property and equipment, net	280,353	127,427
Security deposits	244,225	244,058
Restricted cash	40,000	40,000
Other asset	1,522,063
Indefinite lived intangible assets	10,567,736	10,560,355
Goodwill	1,036,160
Other intangible assets, net	73,915,788	2,025,795
Total Assets	94,048,621	20,498,879
Current liabilities:
Deferred technology purchase liability, current portion	1,500,000	1,634,630
Accounts payable	5,711,253	3,553,567
Accrued expenses	3,302,071	3,526,434
Securities sold, not yet purchased	308,000	1,457,901
Notes payable	31,282,972
Contingent consideration, current portion	1,991,913
Derivative financial instruments, warrants	69,350,988	25,037,346
Total current liabilities	113,447,197	35,209,878
Other liability	1,522,063
Contingent consideration	10,805,297
Deferred technology purchase liability	1,000,000	1,000,000
Deferred income tax liability, net	2,666,275	2,600,899
Total liabilities	129,440,832	38,810,777
Commitments and contingencies
Stockholders' Deficit:
Preferred stock Series A $0.001 par value; 20,000,000 shares authorized; 0 issued and outstanding
Common stock $0.0001 par value; 100,000,000 shares authorized; 24,801,942 and 18,546,363 issued and 24,422,351 and 18,415,573 outstanding, respectively	2,481	1,855
Additional paid-in capital	105,369,174	50,189,127
Treasury stock, at cost, 379,591 and 130,790, respectively	(3,214,608)	(957,272)
Accumulated deficit	(138,061,347)	(67,435,621)
Accumulated other comprehensive income (loss)	512,089	(109,987)
Total stockholders' deficit	(35,392,211)	(18,311,898)
Total liabilities and stockholders' deficit	$ 94,048,621	$ 20,498,879

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2014	Dec. 31, 2013
STOCKHOLDERS' EQUITY ( DEFICIT )
Preferred Series A, Par Value	$ 0.001	$ 0.001
Preferred Series A,Authorized	20,000,000	20,000,000
Preferred Stock Shares A, Issued	0	0
Preferred Stock Shares A, Outstanding	0	0
Common Stock Par Value	$ 0.0001	$ 0.0001
Common Stock Shares Authorized	100,000,000	100,000,000
Common Stock Shares Issued	24,801,942	18,546,363
Common Stock Shares Outstanding	24,422,351	18,415,573

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Statement [Abstract]
Net product sales	$ 27,900
Operating expenses:
Cost of goods sold	900
Research and development	6,886,726	158,690
Selling, general and administrative	10,092,022	1,726,923
Total operating expenses	16,979,648	1,885,613
Operating loss	(16,951,748)	(1,885,613)
Other income (expenses):
Interest income (expense), net	536	(40,779)
Realized gain on sale of marketable securities, net	4,664
Change in fair value of derivative instruments	(53,613,802)	(2,942,343)
Total other expense, net	(53,608,602)	(2,983,122)
Loss before provision for income taxes	(70,560,350)	(4,868,735)
Income tax expense	(65,376)
Net loss	$ (70,625,726)	$ (4,868,735)
Net loss per common share, basic and diluted	$ (3.03)	$ (0.46)
Weighted average common shares outstanding, basic and diluted	23,334,967	10,697,129
Comprehensive Loss:
Net loss	$ (70,625,726)	$ (4,868,735)
Unrealized gain	622,076
Comprehensive Loss	$ (70,003,650)	$ (4,868,735)

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT - 3 months ended Mar. 31, 2014 - USD ($)	Common Stock	Common Stock In Treasury	Additional Paid-In Capital	Accumulated other comprehensive loss	Accumulated Deficit	Total
Beginning Balance, Shares at Dec. 31, 2013	18,546,363	(130,790)	50,189,127	(109,987)	(67,435,621)
Beginning Balance, Amount at Dec. 31, 2013	$ 1,855	$ (957,272)				$ (18,311,898)
Share based compensation - employees	$ 72		$ 5,006,283			5,006,355
Share based compensation - employees, shares	716,500
Issuance of common stock in connection with January 2014 public offering	$ 471		36,834,536			36,835,007
Issuance of common stock in connection with January 2014 public offering, shares	4,705,882
Exercise of warrants and reclassification of the derivative liability	$ 83		13,339,228			13,339,311
Exercise of warrants and reclassification of the derivative liability, shares	833,197
Treasury stock		$ (2,257,336)				(2,257,336)
Treasury stock, shares		(248,801)
Unrealized gain				622,076		622,076
Net loss					(70,625,726)	(70,625,726)
Ending Balance, Shares at Mar. 31, 2014	24,801,942	(379,591)
Ending Balance, Amount at Mar. 31, 2014	$ 2,481	$ (3,214,608)	$ 105,369,174	$ 512,089	$ (138,061,347)	$ (35,392,211)

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash Flows From Operating Activities:
Net loss	$ (70,625,726)	$ (4,868,735)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	127,187	52,168
Realized gain on marketable securities	(4,664)
Share based compensation	5,006,355	159,205
Change in estimated fair value of liability classified warrants	53,613,802	2,942,343
Changes in operating assets and liabilities:
Accounts receivable	(28,800)
Inventory	900
Prepaid expenses and other current assets	462,861	(112,627)
Accounts payable and accrued expenses	1,642,412	(2,750,938)
Net cash used in operating activities	(9,805,673)	(4,578,584)
Cash Flows From Investing Activities:
Purchase of fixed assets	(166,144)	(6,842)
Purchase of indefinite lived intangible assets	(7,381)
Purchase of amortizable intangible asset	(53,962)
Repayment of technology license liability		(1,300,000)
Proceeds from the sale of marketable securities	1,604,456
Purchase of marketable securities	(2,669,454)
Proceeds from securities sold, not yet purchased	4,314,953
Cover securities sold, not yet purchased	(4,985,462)
Cash paid upon acquisition, net of cash acquired	(29,150,000)
Net cash used in investing activities	(31,112,994)	(1,306,842)
Cash Flows From Financing Activities:
Repayment of net amounts due to related parties		(13,200)
Repayment of note payable - related party		(884,764)
Proceeds from the exercise of warrants	4,039,152
Proceeds received from issuance of common stock, net	36,835,007	9,275,465
Purchase of treasury stock, at cost	(2,257,336)
Net cash provided by financing activities	38,616,823	8,377,501
Net increase in cash	(2,301,844)	2,492,075
Cash, beginning of year	5,997,307	11,388
Cash, end of year	3,695,463	2,503,463
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest		28,263
Non-cash investing and financing activities:
Unrealized gain on marketable securities	537,516
Unrealized gain on securities sold, not yet purchased	84,560
Allocation of proceeds from issuance of common stock to registration payment obligation		360,000
Reclassification of derivative liability to equity due to exercise of warrants	9,300,160
Note payable entered into upon consummation of Manchester Pharmaceuticals LLC	31,282,972
Present value of contingent consideration payable to sellers of Manchester Pharmaceuticals LLC	$ 12,797,210

1. DESCRIPTION OF BUSINESS

3 Months Ended

Mar. 31, 2014

Notes to Financial Statements

1. DESCRIPTION OF BUSINESS

NOTE 1. DESCRIPTION OF BUSINESS

Organization and Description of Business

Retrophin, Inc. and its subsidiaries (the “Company”) is a fully integrated biopharmaceutical company focused on the development, acquisition and commercialization of therapies for the treatment of serious, catastrophic or rare diseases.

Acquisition of Manchester Pharmaceuticals LLC

On March 26, 2014, the Company completed its acquisition of all of the membership interests of Manchester Pharmaceuticals LLC, a privately-held specialty pharmaceutical company that focuses on treatments for rare diseases. The acquisition expands the Company’s ability to address the special needs of patients with rare diseases.

The Company currently markets the two following products:

·	Chenodal®, which is available in the United States for the treatment of patients suffering from gallstones in whom surgery poses an unacceptable health risk due to disease or advanced age.
·	Vecamyl®, which is available in the United States for the treatment of moderately severe to severe essential hypertension and uncomplicated cases of malignant hypertension.

The Company generated its first sales in March 2014. The Company’s planned principal operations have commenced due to the acquisition and commercialization of its two marketable products. Accordingly, the Company is no longer deemed to be a development stage company.

The Company is developing RE-024, a novel small molecule, as a potential treatment for pantothenate kinase-associated neurodegeneration, or PKAN. Also, the Company is developing sparsentan, formerly known as RE-021, a dual acting receptor antagonist of angiotensin and endothelin receptors, for the treatment of focal segmental glomerulosclerosis, or FSGS. The Company is developing SyntocinonTM Nasal Spray in the U.S. to assist initial postpartum milk ejection, and for the treatment of Schizophrenia and Autism. Syntocinon Nasal Spray is currently marketed by Novartis and Sigma-Tau in Europe and other countries for aiding milk let-down. In addition, the Company is developing RE-034, a synthetic hormone analogue that is composed of the first 24 amino acids of the 39 amino acids contained in ACTH for the treatment of Infantile Spasms, or IS, and Nephrotic Syndrome, or NS. The Company also has several additional programs in preclinical development, including RE-001, a therapy for the treatment of Duchenne muscular dystrophy, or DMD.

2. BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

2. BASIS OF PRESENTATION

NOTE 2. BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements of the Company should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 (the “2013 10-K”) filed with the Securities and Exchange Commission (the “SEC”) on March 28, 2014. The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions to Form 10-Q and the rules and regulations of the SEC. Accordingly, since they are interim statements, the accompanying condensed consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements, but reflect all adjustments consisting of normal, recurring adjustments, that are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The December 31, 2013 balance sheet information was derived from the audited financial statements as of that date.

3. LIQUIDITY AND FINANCIAL CONDITION AND MANAGEMENT'S PLANS

3 Months Ended

Mar. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

3. LIQUIDITY AND FINANCIAL CONDITION AND MANAGEMENT'S PLANS

NOTE 3. LIQUIDITY AND FINANCIAL CONDITION AND MANAGEMENT’S PLANS

The Company incurred a net loss of approximately $70.6 million, which includes a charge for the change in fair value of derivative instruments in the amount of $53.6 million, for the three months ended March 31, 2014. At March 31, 2014, the Company had a cash balance of approximately $3.7 million and working capital deficit of approximately $107 million. Included in the Company’s working capital deficit is a liability for derivative financial instruments in the amount of $69 million. The Company’s accumulated deficit amounted to approximately $138 million as of March 31, 2014.

The Company has principally financed its operations from inception using proceeds from sales of its equity securities in a series of private placement transactions. On January 9, 2014, the Company completed a public offering of 4,705,882 shares of common stock at a price of $8.50 per share. The Company received net proceeds from the offering of approximately $36.8 million, after deducting the underwriting fees and other offering costs.

Management believes the Company’s ability to continue its operations depends on its ability to raise capital. The Company’s future depends on the costs, timing, and outcome of regulatory reviews of its product candidates and the costs of commercialization activities, including product marketing, sales and distribution. The Company expects to continue to finance its cash needs through additional private and public equity offerings and debt financings, corporate collaboration and licensing arrangements and grants from patient advocacy groups, foundations and government agencies. Although management believes that the Company has access to capital resources, there are no commitments for financing in place at this time, nor can management provide any assurance that such financing will be available on commercially acceptable terms, if at all.

These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These unaudited condensed consolidated financial statements do not include any adjustments relating to the recovery of assets or the classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A summary of the significant accounting policies applied in the preparation of the accompanying condensed consolidated financial statements follows:

Principles of Consolidation

The unaudited condensed consolidated financial statements represent the consolidation of the accounts of the Company and its subsidiaries in conformity with United States of America generally accepted accounting principles (“U.S. GAAP”). All intercompany accounts and transactions have been eliminated in consolidation.

Restatement of Prior Quarters

In the fourth quarter of 2013, the Company discovered that certain warrants issued to a placement agent in connection with the Company’s February Private Placement were not recorded and certain consulting expenses were overstated in the Company’s condensed consolidated financial statements for the first quarter of 2013. The overstated expenses include costs related to the February 14, 2013 Private Placement Offering and costs associated with the Company’s consultants. The adjustments necessary to reflect such issuance were recorded in the fourth quarter of 2013.

	March 31, 2013
	As Reported			As Restated
Operating loss	$	(2,251	)	$	(1,886	)
Non-operating loss		(2,492	)		(2,982	)
Net loss		(4,743	)		(4,868	)
Net loss per common share, basic and diluted	$	(0.44	)	$	(0.46	)

Restatement of Previously Issued Financial Statements for Additional Disclosures

The Company also determined that its obligation to pay liquidated damages under a registration agreement that it entered into in connection with a financing transaction completed on February 14, 2013, which required the Company to cause a registration statement to be declared effective by the Securities and Exchange Commission by May 15, 2013, should have also been disclosed. Accordingly, the Company restated the condensed consolidated financial statements for the quarter ended March 31, 2013 to disclose that it allocated approximately $360,000 of the proceeds received in this financing transaction to a registration payment obligation that was deemed probable at the date that the financing transaction was completed.

Accounts Receivable – Trade

The Company's trade accounts receivable represents amounts due from its customer. The Company monitors the financial performance and credit worthiness of its customer so that it can properly assess and respond to changes in its credit profile. The Company provides reserves against trade receivables for estimated losses that may result from a customer's inability to pay. Amounts determined to be uncollectible are written-off against the reserve.

Inventory

Inventories are stated at the lower of cost or estimated realizable value. The Company determines the cost of inventory using the first-in, first-out, or FIFO, method. The Company periodically analyzes its inventory levels to identify inventory that may expire prior to expected sale or has a cost basis in excess of its estimated realizable value, and write down such inventories as appropriate. In addition, the Company's products are subject to strict quality control and monitoring which the Company’s manufacturers perform throughout their manufacturing process.

Inventory consists of the following at March 31, 2014:

	March 31, 2014
Raw material	$	207,900
Finished goods		141,230
Total inventory	$	349,130

Income Taxes

The Company follows FASB ASC 740, Income Taxes, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the asset will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

The standard addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under FASB ASC 740, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the tax authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. FASB ASC 740 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. As of March 31, 2014 and December 31, 2013, the Company has $1,522,063, and $0, respectively, as a liability for unrecognized tax uncertainties.

Revenue Recognition

Product sales consist of U.S. sales of Chenodal and Vecamyl. Revenue from product sales is recognized when persuasive evidence of an arrangement exists, title to product and associated risk of loss have passed to the customer, the price is fixed or determinable, collection from the customer is reasonably assured, the Company has no further performance obligations, and returns can be reasonably estimated. The Company records revenue from product sales upon delivery to its customer.

The Company sells Chenodal and Vecamyl in the United States to a specialty pharmacy. Under this distribution model, the specialty pharmacy takes title of the inventory FOB shipping point and sells directly to patients.

Government Rebates and Chargebacks: The Company estimates reductions to product sales for Medicaid programs, and for certain other qualifying federal and state government programs. Based upon the Company's contracts with government agencies, statutorily-defined discounts applicable to government-funded programs, historical experience, and estimated payer mix, the Company estimates and records an allowance for rebates and chargebacks. The Company's liability for Medicaid rebates consists of estimates for claims that a state will make for a current quarter, claims for prior quarters that have been estimated for which an invoice has not been received, and invoices received for claims from prior quarters that have not been paid. The Company's customer charges the Company for the difference between what they pay for the products and the ultimate selling price.

Distribution-Related Fees: The Company has written contracts with its customer that include terms for distribution-related fees. The Company estimates and records distribution and related fees due to its customer based on gross sales.

Prompt Pay Discounts: The Company offers discounts to its customer for prompt payments. The Company estimates these discounts based on customer terms and historical experience, and expect that its customer will always take advantage of this discount. Therefore, the Company accrues 100% of the prompt pay discount that is based on the gross amount of each invoice, at the time of sale.

Product Returns: Consistent with industry practice, the Company offers its customer a limited right to return product purchased directly from the Company, which is principally based upon the product's expiration date. Product returned is generally not resalable given the nature of the Company's products and method of administration. The Company develops estimates for product returns based upon historical experience, inventory levels in the distribution channel, shelf life of the product, and other relevant factors. The Company monitors product supply levels in the distribution channel, as well as sales by its customer to patients using product-specific data provided by its customer. If necessary, the Company's estimates of product returns may be adjusted in the future based on actual returns experience, known or expected changes in the marketplace, or other factors.

During the quarter ended March 31, 2014, one customer accounted for 100% of the Company’s revenues and accounts receivable.

Financial Instruments and Fair Value

The Company accounts for financial instruments in accordance with ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described below:

Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 – Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly; and

Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

In estimating the fair value of the Company’s marketable securities available-for-sale and securities sold, not yet purchased, the Company used quoted prices in active markets (see Note 6 and Note 8).

In estimating the fair value of the Company’s derivative liabilities, the Company used the Binomial Lattice options pricing model at inception and on each subsequent valuation date (see Note 7 and Note 8).

In estimating the fair value of the Company’s contingent consideration, the Company used the comparable uncontrolled transaction (“CUT”) method. Based on the fair value hierarchy, the Company classified contingent consideration within Level 3 because valuation inputs are based on projected revenues discounted to a present value (see Note 8).

In estimating the fair value of the Company’s note payable, the Company discounted the note using an estimated interest rate of 11.07% and recorded the $33 million note payable at present value of $31.3 million.

Financial assets with carrying values approximating fair value include cash as well as accounts receivable, deposits on license agreements. Financial liabilities with carrying values approximating fair value include accounts payable.

5. BUSINESS COMBINATION

3 Months Ended

Mar. 31, 2014

Business Combinations [Abstract]

Note 5: BUSINESS COMBINATION

Note 5: BUSINESS COMBINATION

Manchester Pharmaceuticals LLC

On March 26, 2014 (the “Closing Date”), the Company acquired 100% of the outstanding membership interests of Manchester Pharmaceuticals, LLC (“Manchester”). Under the terms of the agreement, the Company paid $29.5 million upon consummation of the transaction, of which $3.2 million was paid by Retrophin Therapeutics International LLC, a newly formed indirect wholly owned subsidiary, for rights of product sales outside of the United States. Acquisition costs amounted to approximately $0.3 million and have been recorded as selling, general, and administrative expense in the accompanying condensed consolidated financial statements. The Company entered into a promissory note with Manchester principals for $33 million which was discounted to $31.3 million to be paid in three equal installments of $11 million within three, six, and nine months after closing. In addition, the Company agreed to make contractual payments based on 10% of net sales of the products Chenodal and Vecamyl to the former members of Manchester. Additional contingent payments will be made based on 5% of net sales from new products derived from the existing products. Contingent consideration will be revalued at each reporting period and any change in valuation will be recorded in the Company’s statement of operations. The Company expects to raise additional funds through a public equity offering, a private equity offering, and/or debt financing to satisfy its short term obligations.

The acquisition was accounted for under the purchase method of accounting in accordance with ASC 805, with the excess purchase price over the fair market value of the assets acquired and liabilities assumed allocated to goodwill. Based on the preliminary purchase price allocation, the purchase price of $73.23 million has resulted in goodwill of $1.04 million and is primarily attributed to the synergies expected to arise after the acquisition. The $1.04 million of goodwill resulting from the acquisition is deductible for income tax purposes.

The fair value of assets acquired and liabilities assumed was based upon a preliminary valuation and the Company’s estimates and assumptions are subject to change within the measurement period. Critical estimates in valuing certain intangible assets include but are not limited to future expected cash flows from customer relationships and developed technology, present value and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates.

The purchase included $72 million of intangible assets with definite lives related to product rights, trade names, and customer relationships with values of $71.4 million, $0.2 million, and $0.4 million, respectively. The useful lives related to the acquired product rights, trade names, and customer relationships are expected to be approximately 16, 1 and 10 years, respectively. Under the terms of the agreement, the sellers agreed to indemnify the Company for uncertain tax liabilities, any breach of any representation or warranty the sellers made to the purchaser, failure of the sellers to perform any covenants or obligations made to the purchaser, and third party claims relating to the operation of the Company and events occurring prior to the Closing Date. As of March 31, 2014, the Company has recorded an indemnification asset with a corresponding liability in the amount of $1.5 million related to uncertain tax liabilities.

The purchase price allocation of $73.23 million was as follows:

	Amount (in thousands)
Cash paid upon consummation, net	$	29,150
Secured promissory note		31,283
Fair value of contingent consideration		12,800
Total purchase price	$	73,233

Prepaid expenses		116
Inventory		350
Product rights		71,372
Trade names		175
Customer relationship		403
Goodwill		1,036
Other asset		1,522
Accounts payable and accrued expenses		(219	)
Other liability		(1,522	)
Total allocation of purchase price consideration	$	73,233

Pro Forma Operating Results

The following table provides unaudited pro forma results of operations for the three months ended March 31, 2014 and 2013, as if the March 26, 2014 acquisition had occurred on January 1, 2013. The pro forma results of operations were prepared for comparative purposes only and do not purport to be indicative of what would have occurred had the acquisitions been made as of January 1, 2013 or of results that may occur in the future.

	Pro Forma (Unaudited)
	Three months ended March 31, (In thousands, except per share data)
	2014			2013
Net sales	$	1,247		$	1,092
Net loss	$	(70,006	)	$	(7,579	)
Net loss per common share, basic and diluted	$	(3.00	)	$	(0.71	)

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
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+ Details

6. MARKETABLE SECURITIES AND SECURITIES SOLD, NOT YET PURCHASED

3 Months Ended

Mar. 31, 2014

Marketable Securities [Abstract]

5. MARKETABLE SECURITIES

NOTE 6. MARKETABLE SECURITIES AND SECURITIES SOLD, NOT YET PURCHASED

The Company measures marketable securities and securities sold, not yet purchased on a recurring basis. Generally, the types of securities the Company invests in are traded on a market such as the NASDAQ Global Market, which the Company considers to be Level 1 measurements.

Marketable securities and securities sold, not yet purchased at March 31, 2014 consisted of the following:

	Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value

Marketable securities available-for-sale:	$	1,245,903	$	99,436	$	-	$	1,345,339
Securities sold, not yet purchased	$	720,654	$	412,654	$	-	$	308,000

Marketable securities and securities sold, not yet purchased at December 31, 2013 consisted of the following:

	Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value

Marketable securities available-for-sale:	$	129,702	$	3,292	$	-	$	132,994
Securities sold, not yet purchased	$	1,344,622	$	13,256	$	126,535	$	1,457,901

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

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+ Details

7. DERIVATIVE FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2014

Investments, All Other Investments [Abstract]

6. DERIVATIVE FINANCIAL INSTRUMENTS

NOTE 7. DERIVATIVE FINANCIAL INSTRUMENTS

The Company accounts for derivative financial instruments in accordance with ASC 815-40, “Derivative and Hedging – Contracts in Entity’s Own Equity” (“ASC 815-40”), instruments which do not have fixed settlement provisions are deemed to be derivative instruments. The Company’s warrants are classified as liability instruments due to an anti-dilution provision that provides for a reduction to the exercise price of the warrants if the Company issues additional equity or equity linked instruments in the future at an effective price per share less than the exercise price then in effect.

The warrants are re-measured at each balance sheet date based on estimated fair value. Changes in estimated fair value are recorded as non-cash valuation adjustments within other income (expense) in the Company’s accompanying consolidated statements of operations. The Company recorded a loss on a change in the estimated fair value of warrants of $53.6 million and $2.9 million during the three months ended March 31, 2014 and 2013 respectively.

The Company calculated the fair value of the warrants using the Binomial Lattice options pricing model at inception and on each subsequent valuation date. The assumptions used at March 31, 2014 and December 31, 2013 are as follows:

	As of
	December 31, 2013	March 31, 2014
Fair market price of common stock	$7.00	$21.20
Contractual term	4.12-4.62 years	3.88 – 4.38 years
Risk-free interest rate	1.39%	1.73%
Expected volatility	93-97%	70%
Dividend yield	0.00%	0.00%

Expected volatility is based on historical stock volatilities of several comparable publicly-traded companies over a period equal to the expected terms of the warrants, as the Company does not have a long trading history to estimate the volatility of its own common stock. The warrants have a transferability provision. Based on guidance provided in SEC Staff Accounting Bulletin No. 107 (“SAB 107”) for options issued with such a provision, the Company used the full contractual term as the initial expected term of the warrants. The risk free interest rate is based on the U.S. Treasury security rates for the remaining term of the warrants at the measurement date.

8. FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

7. FAIR VALUE MEASUREMENTS

NOTE 8. FAIR VALUE MEASUREMENTS

The following table presents the Company’s asset and liabilities that are measured and recognized at fair value on a recurring basis classified under the appropriate level of the fair value hierarchy as of March 31, 2014:

	As of March 31, 2014		Fair Value Hierarchy at March 31, 2014
	Total carrying and estimated fair value		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Asset:
Marketable securities, available-for-sale	$	1,345,339	$	1,345,339	$	-	$	-
Liabilities:

Derivative liability related to warrants	$	69,350,988		-		-	$	69,350,988
Securities sold, not yet purchased	$	308,000	$	308,000	$	-	$	-
Contingent consideration	$	12,797,210	$	-	$	-	$	12,797,210

	As of December 31, 2013		Fair Value Hierarchy at December 31, 2013
	Total carrying and estimated fair value		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Asset:
Marketable securities, available-for-sale	$	132,994	$	132,994	$	-	$	-
Liability:
Derivative liability related to warrants	$	25,037,346	$	-	$	-	$	25,037,346
Securities sold, not yet purchased	$	1,457,901	$	1,457,901	$	-	$	-

The following table sets forth a summary of changes in the estimated fair value of the Company’s Level 3 liability for the period from January 1, 2014 through March 31, 2014:

	Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3)
Balance at January 1, 2014	$	25,037,346
Reclassification of derivative liability to equity upon exercise of warrants		(9,300,160	)
Change in estimated fair value of liability classified warrants		53,613,802
Balance at March 31, 2014	$	69,350,988

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. At each reporting period, the Company performs a detailed analysis of the assets and liabilities that are subject to ASC 820.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

9. INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 9. INTANGIBLE ASSETS

NOTE 9. INTANGIBLE ASSETS

Indefinite lived intangible assets

Syntocinon License Agreement

On December 12, 2013 (the “Effective Date”), the Company entered into an agreement with Novartis Pharma AG and Novartis AG pursuant to which Novartis Pharma AG and Novartis AG agreed to grant the Company an exclusive, perpetual, and royalty-bearing license for the manufacture, development and commercialization of Syntocinon and related intranasal products in the United States. Under the license, Novartis Pharma AG and Novartis AG are obligated to transfer to the Company certain information that is necessary for or related to the development or commercialization of Syntocinon. As consideration for the license, the Company paid to Novartis Pharma AG and Novartis AG and capitalized a $5 million upfront fee. The intellectual property underlying the license is held in perpetuity. The Company has examined the Novartis licensing agreement and has capitalized the license fee in accordance with ASC 350 due to future alternative uses such as re-licensing of the technology to other third parties, the sale of the licensed technology to other life science companies, and the potential development of various ingestible drug products using the licensed technologies.

Kyalin - Carbetocin Technology Purchase

On December 23, 2013 (the “Closing Date”), the Company entered into a Stock Purchase Agreement with Kyalin to acquire substantially all of Kyalin’s assets which include patents, patent applications, contracts and data related to the intranasal formulation of the compound Carbetocin (collectively, the “Carbetocin Assets”). Carbetocin, similar to Oxytocin, has potential utility for the treatment of milk let-down in post pregnant women, inducing contractions during labor, postpartum hemorrhage, as well as for autism and schizophrenia.

The Company capitalized $3,000,000 of fixed minimum payments and $42,612 in closing costs. For tax purposes, intangible assets are subject to different amortization allowances than for book purposes. FASB ASC 740-10-55 (“ASC 740”) addresses the accounting treatment when an asset is acquired outside of a business combination, and the tax basis of that asset differs from the amount paid. Pursuant to the guidance in ASC 740, the Company has stepped-up the basis of its intangible assets by $2,525,124 and has recorded a deferred tax liability in the same amount, to account for the book/tax basis difference resulting from the Kyalin acquisition.

Indefinite lived intangible assets as of March 31, 2014 and December 31, 2013 consist of the following:

	March 31, 2014		December 31, 2013
Syntocinon License	$	5,000,000	$	5,000,000
Carbetocin Assets		5,567,736		5,560,355
Total	$	10,567,736	$	10,560,355

These intangible assets are measured initially at cost not subject to amortization and are tested for impairment annually or in interim reporting periods if events or changes in circumstances indicate that the carrying amounts of these intangible assets might not be recoverable.

Amortizable intangible assets

Manchester Pharmaceuticals LLC

Upon the completion of the Company’s acquisition of Manchester on March 26, 2014, it acquired intangible assets with definite lives related to product rights, trade names, and customer relationships with the values of $71.4 million, $0.2 million, and $0.4 million, respectively. The useful lives related to the acquired product rights, trade names, and customer relationships are expected to be approximately 16, 1 and, 10 years, respectively.

Ligand License Agreement

On February 16, 2012, the Company entered into an agreement for a worldwide sublicense for $2,450,000 to develop, manufacture and commercialize a drug technology which is referred to as DARA. The cost of the License Agreement, which is presented net of amortization in the accompanying condensed consolidated balance sheet as other amortizable intangible asset, is being amortized on a straight-line basis through September 30, 2023.

As of March 31, 2014 and December 31, 2013, amortizable intangible assets were $73,915,788 and $2,025,795, respectively. Amortization is recorded as research and development expense and amounted to $113,969 and $0 for the three months ended March 31, 2014 and 2013, respectively.

Amortizable intangible assets as of March 31, 2014 and December 31, 2013 consist of the following:

	March 31, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Product Rights	$	71,372,000	$	(61,064	)	$	71,310,936
Ligand License		2,300,000		(373,936	)		1,926,064
Customer Relationships		403,000		(552	)		402,448
Trade Name		175,000		(2,397	)		172,603
Patent Costs*		103,737		-			103,737
Total	$	74,353,737	$	(437,949	)	$	73,915,788

	December 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Ligand License	$	2,300,000	$	(323,980	)	$	1,976,020
Patent Costs*		49,775		-			49,775
Total	$	2,349,775	$	(323,980	)	$	2,025,795

*Patent costs will be amortized when a patent is procured and a life is assigned to the asset.

Amortization expense for the years ended December 31, 2014, 2015, 2016, 2017, and 2018 is expected to be $3,787,337, $4,741,315, $4,713,439, $4,700,561, and $4,700,561 respectively.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

10. RESEARCH AND DEVELOPMENT

3 Months Ended

Mar. 31, 2014

Research and Development [Abstract]

NOTE 10. RESEARCH AND DEVELOPMENT

NOTE 10. RESEARCH AND DEVELOPMENT

Research and development expenses consist of the following at March 31, 2014 and 2013:

	March 31, 2014		March 31, 2013 (restated)
External service provider costs:
Sparsentan	$	929,440	$	108,735
RE-024		2,365,009		-
Syntocinon		124,866		-
RE-034		575,686		-
General		1,131,675		49,955
Other product candidates		298,402		-
Total external service provider costs		5,425,078		158,690
Internal personnel costs		1,461,648		-
Total research and development	$	6,886,726	$	158,690

- Definition

The entire disclosure for research, development, and computer software activities, including contracts and arrangements to be performed for others and with federal government. Includes costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility and in-process research and development acquired in a business combination consummated during the period.

+ References + Details

11. SELLING, GENERAL, AND ADMINISTRATIVE

3 Months Ended

Mar. 31, 2014

Selling General And Administrative

11. SELLING, GENERAL, AND ADMINISTRATIVE

NOTE 11. SELLING, GENERAL, AND ADMINISTRATIVE

Selling, general, and administrative expenses consist of the following for the three months ended March 31, 2014 and 2013, respectively:

	March 31, 2014		March 31, 2013 (restated)
Professional fees	$	6,155,385	$	333,842
Compensation and related costs		2,083,589		930,287
Other		1,853,048		462,794
Total selling, general, and administrative expenses	$	10,092,022	$	1,726,923

12. NOTES PAYABLE

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

9. NOTES PAYABLE

NOTE 12. NOTES PAYABLE

Total interest expense recognized for the three months ended March 31, 2014 and 2013 aggregated to $0, and $41,563, respectively.

Note Payable – Manchester Pharmaceuticals, LLC

On March 26, 2014 upon the acquisition of Manchester, the Company entered into a note payable in the amount of $33 million. The note is non-interest bearing and therefore the Company recorded the loan at present value of $31.2 million using the effective interest rate of 11.07%. The note is due and payable in three consecutive payments, each in the amount of $11 million payable on June 26, 2014, September 26, 2014, and December 12, 2014 (the maturity date).

13. COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

13. COMMITMENTS AND CONTINGENCIES

NOTE 13. COMMITMENTS AND CONTINGENCIES

Leases and Sublease

On February 28, 2014, the Company amended its lease agreement for its offices located in Carlsbad, CA. The Company increased its Carlsbad office space for approximately $110,000 of additional annual base rent plus rent escalations, common area maintenance, insurance, and real estate taxes under a lease agreement expiring in June 2017.

On April 10, 2014, the Company entered into an amended lease agreement at its principal offices in New York, New York and is responsible for additional rent of approximately $537,264 annually plus rent escalations through April 2015.

Research Collaboration and Licensing Agreements

As part of the Company's research and development efforts, the Company enters into research collaboration and licensing agreements with unrelated companies, scientific collaborators, universities, and consultants. These agreements contain varying terms and provisions which include fees and milestones to be paid by the Company, services to be provided, and ownership rights to certain proprietary technology developed under the agreements. Some of the agreements contain provisions which require the Company to pay royalties, in the event the Company sells or licenses any proprietary products developed under the respective agreements.

Contract Commitments

The following table summarizes our principal contractual commitments, excluding open orders that support normal operations, as of March 31, 2014:

Year Ending December 31,	Research and Development and other Charitable Donations		Consultants		Operating Leases
2014	$	4,416,160	$	299,162	$	1,062,953
2015		2,941,144		-		1,054,961
2016		-		-		836,978
2017		-		-		69,592
2018		-		-		-
2019 and thereafter		-		-		-
Total	$	7,357,304	$	299,162	$	3,024,484

14. STOCKHOLDERS DEFICIT

3 Months Ended

Mar. 31, 2014

Equity [Abstract]

14. STOCKHOLDERS DEFICIT

NOTE 14. STOCKHOLDERS’ DEFICIT

Common Stock

The Company is currently authorized to issue up to 100,000,000 shares of $0.0001 par value common stock. All issued shares of common stock are entitled to vote on a 1 share/1 vote basis.

Preferred Stock

The Company is currently authorized to issue up to 20,000,000 shares of $0.001 preferred stock, of which 1,000 shares are designated Class "A" Preferred shares, $0.001 par value. Class A Preferred Shares are not entitled to interest, have certain liquidation preferences, special voting rights and other provisions. No Preferred Shares have been issued to date.

Issuances

Public Offering - 2014

On January 9, 2014, the Company completed a public offering of 4,705,882 shares of common stock at a price of $8.50 per share. The Company received net proceeds from the offering of $36,835,007, after deducting the underwriting fees and other offering costs of $3,164,990, which were recorded against additional paid in capital.

Share Based Compensation

For the three months ended March 31, 2014, the Company issued 716,500 shares of restricted common stock. Compensation expense amounted to $3,655,652 for the three months ended March 31, 2014.

For the three months ended March 31, 2013, the Company issued 12,500 shares of restricted common stock. Compensation expense amounted to $159,205 for the three months ended March 31, 2013.

Restricted Shares

As of March 31, 2014 and December 31, 2013, there was approximately $8,395,949 and $1,105,967 of unrecognized compensation cost related to restricted shares issued. As of March 31, 2014 and December 31, 2013, these amounts are expected to be recognized over a weighted average period of 2.80 and 2.19 years, respectively. Unvested restricted shares consist of the following as of March 31, 2014 and December 31, 2013.

	Employee - number of shares			Non Employee - number of shares			Total number of shares			Weighted Average Grant Date Fair Value

Unvested December 31, 2012		52,772			214,996			267,768		$	3.20
Granted		135,000			-			135,000			6.24
Vested		(36,724	)		(139,069	)		(175,793	)		5.44
Forfeited		(20,833	)		(37,500	)		(58,333	)		4.00
Unvested December 31, 2013		130,215			38,427			168,642			6.44
Granted		400,000			-			400,000			15.25
Vested		(16,810	)		(18,347	)		(35,247	)		13.67
Forfeited		-			-			-			-
Unvested March 31, 2014		513,405			19,990			533,395		$	13.53

Exercise of Warrants

During the three months ended March 31, 2014, the Company issued 833,197 shares of common stock upon the exercise of warrants for cash received by the Company in the amount of $4,039,151. The Company reclassified $9,300,160 of derivative liability as equity for the value of these warrants on the date of exercise. The warrants were revalued immediately prior to exercise and the change in the fair value of the warrants was recorded as other expense in the condensed consolidated financial statements of the Company.

Stock Options

During the three months ended March 31, 2014, the Company granted options to purchase 1,160,000 shares of common stock to employees of the Company. The options vest as follows: (i) 760,000 vest quarterly in pro rata portions during the 3 years following the effective date of April 1, 2014, (ii) 200,000 vest in twelve equal installments on the last day of each calendar quarter beginning on March 31, 2014, (iii) 100,000 vest upon such time as the Company’s revenues meet or exceed $50 million in the aggregate over any consecutive four fiscal quarter period (but no earlier than February 24, 2015), (iv) 50,000 vest upon such time as the trailing twenty day average of the closing price of the Company’s common stock equals or exceeds $25 per share (but no earlier than February 24, 2015), and (v) 50,000 upon such time as the trailing twenty day average of the closing price of the Company’s common stock equals or exceeds $33 per share (but no earlier than February 24, 2016).

The Company valued 960,000 of these options using the Black-Scholes option-pricing model with the following assumptions: risk-free interest rate of 1.57%, expected term (in years) of 5.81, expected volatility of 70%, and an exercise price equal to the fair value of the stock on the date of issuance of $19.00 per share. The Company valued 100,000 of the market performance based options using the Binomial Lattice options pricing model. The Company will record stock compensation expense for the 100,000 options that vest based on revenue performance conditions when achievement is considered probable. No compensation expense has been recorded in the current period in relation to the revenue performance based options as this achievement has not yet been deemed probable. For the three months ended March 31, 2014 and 2013, the Company recognized $1,350,703 and $0, respectively, as compensation expense related to the Options. As of March 31, 2014, there was approximately $24,091,555 of unrecognized compensation expense related to stock options.

Stock Repurchases

In the first quarter of 2014, the Company repurchased 248,801 shares of its common stock for an aggregate purchase price of $2,257,336. The Company currently recognizes such repurchased common stock as treasury stock.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Publisher FASB
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
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Reference 17: http://www.xbrl.org/2003/role/presentationRef
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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+ Details

15. SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2014

Subsequent Events [Abstract]

15. SUBSEQUENT EVENTS

NOTE 15. SUBSEQUENT EVENTS

Lease

On April 10, 2014, the Company entered into an amended lease agreement for additional office space at its principal offices in New York, New York and is responsible for additional rent of approximately $537,264 annually plus rent escalations through April 2015.

Exercise of Warrants

Subsequent to March 31, 2014, the Company issued 411,112 shares of common stock for total proceeds of $2,266,668 upon the exercise of warrants and the Company converted 268,805 warrants into shares of common stock through a cashless exercise.

Restricted Stock Grant

On April 1, 2014, the Company granted 3,500 shares of restricted stock.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2014

Summary Of Significant Accounting Policies Policies

Principles of Consolidation

Restatement of Previously Issued Financial Statements for Intangible Asset Stepped-Up Basis

In the first quarter of 2014, the Company determined that certain indefinite-lived intangible assets have finite lives. Management determined the Syntocinon License and Carbetocin Assets have estimated useful lives of 20 years. The impact of this item would have increased net income in 2013 by $2.5 million. As a result, the Company’s expense for its provision for income taxes was overstated for the year ended December 31, 2013. The Company has recorded a deferred tax benefit in the current period for the stepped-up basis of its intangible assets by $2.5 million, to account for the book/tax basis resulting from the Kyalin acquisition. The adjustment necessary to reflect such change is recorded in the first quarter of 2014. The Company’s management assessed the impact of such item on the financial statements and determined that the related correction in 2013 did not have a material impact on the Company’s financial statements for 2013. Therefore, the Company’s management determined that no restatement of prior filings is necessary.

Restatement of Prior Quarters

	March 31, 2013
	As Reported			As Restated
Operating loss	$	(2,251	)	$	(1,886	)
Non-operating loss		(2,492	)		(2,982	)
Net loss		(4,743	)		(4,868	)
Net loss per common share, basic and diluted	$	(0.44	)	$	(0.46	)

Restatement of Previously Issued Financial Statements for Additional Disclosures

Accounts Receivable - Trade

Inventory

Inventory consists of the following at March 31, 2014:

	March 31, 2014
Raw material	$	207,900
Finished goods		141,230
Total inventory	$	349,130

Income Taxes

Revenue Recognition

Government Rebates and Chargebacks

The Company estimates reductions to product sales for Medicaid programs, and for certain other qualifying federal and state government programs. Based upon the Company's contracts with government agencies, statutorily-defined discounts applicable to government-funded programs, historical experience, and estimated payer mix, the Company estimates and records an allowance for rebates and chargebacks. The Company's liability for Medicaid rebates consists of estimates for claims that a state will make for a current quarter, claims for prior quarters that have been estimated for which an invoice has not been received, and invoices received for claims from prior quarters that have not been paid. The Company's customer charges the Company for the difference between what they pay for the products and the ultimate selling price.

Distribution-Related Fees

The Company has written contracts with its customer that include terms for distribution-related fees. The Company estimates and records distribution and related fees due to its customer based on gross sales.

Prompt Pay Discounts

The Company offers discounts to its customer for prompt payments. The Company estimates these discounts based on customer terms and historical experience, and expect that its customer will always take advantage of this discount. Therefore, the Company accrues 100% of the prompt pay discount that is based on the gross amount of each invoice, at the time of sale.

Product Returns

Consistent with industry practice, the Company offers its customer a limited right to return product purchased directly from the Company, which is principally based upon the product's expiration date. Product returned is generally not resalable given the nature of the Company's products and method of administration. The Company develops estimates for product returns based upon historical experience, inventory levels in the distribution channel, shelf life of the product, and other relevant factors. The Company monitors product supply levels in the distribution channel, as well as sales by its customer to patients using product-specific data provided by its customer. If necessary, the Company's estimates of product returns may be adjusted in the future based on actual returns experience, known or expected changes in the marketplace, or other factors.

During the quarter ended March 31, 2014, one customer accounted for 100% of the Company’s revenues and accounts receivable.

Financial Instruments and Fair Value

Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 – Quoted prices in markets that are not active or financial instruments for which all significant inputs are observable, either directly or indirectly; and

Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Restatement of Prior Quarters

	March 31, 2013
	As Reported			As Restated
Operating loss	$	(2,251	)	$	(1,886	)
Non-operating loss		(2,492	)		(2,982	)
Net loss		(4,743	)		(4,868	)
Net loss per common share, basic and diluted	$	(0.44	)	$	(0.46	)

Schedule of Inventory

Inventory consists of the following at March 31, 2014:

	March 31, 2014
Raw material	$	207,900
Finished goods		141,230
Total inventory	$	349,130

5. BUSINESS COMBINATION (Tables)

3 Months Ended

Mar. 31, 2014

Business Combinations [Abstract]

Purchase price allocation

The purchase price allocation of $73.23 million was as follows:

	Amount (in thousands)
Cash paid upon consummation, net	$	29,150
Secured promissory note		31,283
Fair value of contingent consideration		12,800
Total purchase price	$	73,233

Prepaid expenses		116
Inventory		350
Product rights		71,372
Trade names		175
Customer relationship		403
Goodwill		1,036
Other asset		1,522
Accounts payable and accrued expenses		(219	)
Other liability		(1,522	)
Total allocation of purchase price consideration	$	73,233

Pro Forma Operating Results

	Pro Forma (Unaudited)
	Three months ended March 31, (In thousands, except per share data)
	2014			2013
Net sales	$	1,247		$	1,092
Net loss	$	(70,006	)	$	(7,579	)
Net loss per common share, basic and diluted	$	(3.00	)	$	(0.71	)

6. MARKETABLE SECURITIES AND SECURITIES SOLD, NOT YET PURCHASED (Tables)

3 Months Ended

Mar. 31, 2014

Marketable Securities And Securities Sold Not Yet Purchased Tables

Marketable securities

Marketable securities and securities sold, not yet purchased at March 31, 2014 consisted of the following:

	Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value

Marketable securities available-for-sale:	$	1,245,903	$	99,436	$	-	$	1,345,339
Securities sold, not yet purchased	$	720,654	$	412,654	$	-	$	308,000

Marketable securities and securities sold, not yet purchased at December 31, 2013 consisted of the following:

	Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value

Marketable securities available-for-sale:	$	129,702	$	3,292	$	-	$	132,994
Securities sold, not yet purchased	$	1,344,622	$	13,256	$	126,535	$	1,457,901

7. DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2014

Investments, All Other Investments [Abstract]

Assumptions for valuation of warrants

The assumptions used at the date of issuance and at March 31, 2014 and 2013, respectively are noted in the following table:

	As of
	December 31, 2013	March 31, 2014
Fair market price of common stock	$7.00	$21.20
Contractual term	4.12-4.62 years	3.88 – 4.38 years
Risk-free interest rate	1.39%	1.73%
Expected volatility	93-97%	70%
Dividend yield	0.00%	0.00%

8. FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Fair value on a recurring basis

	As of March 31, 2014		Fair Value Hierarchy at March 31, 2014
	Total carrying and estimated fair value		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Asset:
Marketable securities, available-for-sale	$	1,345,339	$	1,345,339	$	-	$	-
Liabilities:

Derivative liability related to warrants	$	69,350,988		-		-	$	69,350,988
Securities sold, not yet purchased	$	308,000	$	308,000	$	-	$	-
Contingent consideration	$	12,797,210	$	-	$	-	$	12,797,210

	As of December 31, 2013		Fair Value Hierarchy at December 31, 2013
	Total carrying and estimated fair value		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Asset:
Marketable securities, available-for-sale	$	132,994	$	132,994	$	-	$	-
Liability:
Derivative liability related to warrants	$	25,037,346	$	-	$	-	$	25,037,346
Securities sold, not yet purchased	$	1,457,901	$	1,457,901	$	-	$	-

Summary of changes in the estimated fair value of the Company's Level 3 liability

The following table sets forth a summary of changes in the estimated fair value of the Company’s Level 3 liability for the period from January 1, 2014 through March 31, 2014:

	Fair Value Measurements of Common Stock Warrants Using Significant Unobservable Inputs (Level 3)
Balance at January 1, 2014	$	25,037,346
Reclassification of derivative liability to equity upon exercise of warrants		(9,300,160	)
Change in estimated fair value of liability classified warrants		53,613,802
Balance at March 31, 2014	$	69,350,988

9. INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Indefinite lived intangible asset

Amortizable intangible assets as of March 31, 2014 and December 31, 2013 consist of the following:

	December 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Product Rights	$	71,372,000	$	(61,064	)	$	71,310,936
Carbetocin Assets		5,567,736		(67,834	)		5,499,902
Syntocinon License		5,000,000		(60,917	)		4,939,083
Ligand License		2,300,000		(373,936	)		1,926,064
Customer Relationships		403,000		(552	)		402,448
Trade Name		175,000		(2,397	)		172,603
Patent Costs*		103,737		-			103,737
Total	$	84,921,473	$	(323,980	)	$	85,354,773

	December 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Book Value
Ligand License	$	2,300,000	$	(323,980	)	$	1,976,020
Patent Costs*		49,775		-			49,775
Total	$	2,349,775	$	(323,980	)	$	2,025,795

10. RESEARCH AND DEVELOPMENT (Tables)

3 Months Ended

Mar. 31, 2014

Research and Development [Abstract]

Research and development expenses

Research and development expenses consist of the following at March 31, 2014 and 2013:

	March 31, 2014		March 31, 2013 (restated)
External service provider costs:
Sparsentan	$	929,440	$	108,735
RE-024		2,365,009		-
Syntocinon		124,866		-
RE-034		575,686		-
General		1,131,675		49,955
Other product candidates		298,402		-
Total external service provider costs		5,425,078		158,690
Internal personnel costs		1,461,648		-
Total research and development	$	6,886,726	$	158,690

11. SELLING, GENERAL, AND ADMINISTRATIVE (Tables)

3 Months Ended

Mar. 31, 2014

Selling General And Administrative

Selling, general, and administrative expenses

Selling, general, and administrative expenses consist of the following for the three months ended March 31, 2014 and 2013, respectively:

	March 31, 2014		March 31, 2013 (restated)
Professional fees	$	6,155,385	$	333,842
Compensation and related costs		2,083,589		930,287
Other		1,853,048		462,794
Total selling, general, and administrative expenses	$	10,092,022	$	1,726,923

13. COMMITMENTS AND CONTINGENCIES (Tables)

3 Months Ended

Mar. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Principal contractual commitments

The following table summarizes our principal contractual commitments, excluding open orders that support normal operations, as of March 31, 2014:

Year Ending December 31,	Research and Development and other Charitable Donations		Consultants		Operating Leases
2014	$	4,416,160	$	299,162	$	1,062,953
2015		2,941,144		-		1,054,961
2016		-		-		836,978
2017		-		-		69,592
2018		-		-		-
2019 and thereafter		-		-		-
Total	$	7,357,304	$	299,162	$	3,024,484

14. STOCKHOLDERS' DEFICIT (Tables)

3 Months Ended

Mar. 31, 2014

Stockholders Deficit Tables

Schedule of incentive shares

	Employee - number of shares			Non Employee - number of shares			Total number of shares			Weighted Average Grant Date Fair Value

Unvested December 31, 2012		52,772			214,996			267,768		$	3.20
Granted		135,000			-			135,000			6.24
Vested		(36,724	)		(139,069	)		(175,793	)		5.44
Forfeited		(20,833	)		(37,500	)		(58,333	)		4.00
Unvested December 31, 2013		130,215			38,427			168,642			6.44
Granted		400,000			-			400,000			15.25
Vested		(16,810	)		(18,347	)		(35,247	)		13.67
Forfeited		-			-			-			-
Unvested March 31, 2014		513,405			19,990			533,395		$	13.53

3. LIQUIDITY AND FINANCIAL CONDITION AND MANAGEMENT'S PLANS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Liquidity And Financial Condition And Managements Plans Details Narrative
Net loss	$ 70,625,726	$ 4,868,735
Cash	3,695,463		$ 5,997,307
Working Capital (Approximately)	107,000,000
Accumulated deficit	$ 138,061,347		$ 67,435,621

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Operating loss	$ (16,951,748)	$ (1,885,613)
Net loss	$ (70,625,726)	$ (4,868,735)
Net loss per common share, basic and diluted	$ (3.03)	$ (0.46)
As Reported
Operating loss		$ (2,251)
Non-operating loss		(2,492)
Net loss		$ (4,743)
Net loss per common share, basic and diluted		$ (0.44)
As Restated
Operating loss		$ (1,886)
Non-operating loss		(2,982)
Net loss		$ (4,868)
Net loss per common share, basic and diluted		$ (0.46)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	Mar. 31, 2014	Dec. 31, 2013
Accounting Policies [Abstract]
Raw material	$ 207,900
Finished goods	141,230
Total inventory	$ 349,130

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Summary Of Significant Accounting Policies Details Narrative
Proceeds from financing transactions	$ 360,000
Unrecognized tax uncertainties	$ 1,522,063	$ 0
Customer accounted for revenues and accounts receivable	100.00%

5. BUSINESS COMBINATION (Details) $ in Thousands	Mar. 31, 2014 USD ($)
Business Combinations [Abstract]
Cash paid upon consummation, net	$ 29,150
Secured promissory note	31,283
Fair value of contingent consideration	12,800
Total purchase price	73,233
Prepaid expenses	116
Inventory	350
Product rights	71,372
Trade names	175
Customer relationship	403
Goodwill	1,036
Other asset	1,522
Accounts payable and accrued expenses	(219)
Other liability	(1,522)
Total allocation of purchase price consideration	$ 73,233

5. BUSINESS COMBINATION (Details 1) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Business Combinations [Abstract]
Net sales	$ 1,247	$ 1,092
Net loss	$ (70,006)	$ (7,579)
Net loss per common share, basic and diluted	$ (3.00)	$ (0.71)

6. MARKETABLE SECURITIES (Details) - USD ($)	Mar. 31, 2014	Dec. 31, 2013
Marketable securities available-for-sale [Member]
Cost	$ 1,245,903	$ 129,702
Unrealized Gains	99,436	3,292
Unrealized Losses
Estimated Fair Value	1,345,339	132,994
Securities Sold, Not yet Purchased [Member]
Cost	720,654	1,344,622
Unrealized Gains	412,654	13,256
Unrealized Losses		126,535
Estimated Fair Value	$ 308,000	$ 1,457,901

7. DERIVATIVE FINANCIAL INSTRUMENTS (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Fair market price of common stock	$ 21.20	$ 7.00
Risk-free interest rate	1.73%	1.39%
Expected volatility	70.00%
Dividend yield	0.00%	0.00%
Minimum [Member]
Contractual term	3 years 10 months 17 days	4 years 1 month 13 days
Expected volatility	92.00%	93.00%
Maximum [Member]
Contractual term	4 years 4 months 17 days	4 years 7 months 13 days

8. FAIR VALUE MEASUREMENTS (Details 1) - USD ($)	Mar. 31, 2014	Dec. 31, 2013
Marketable securities, available-for-sale	$ 1,345,339	$ 132,994
Derivative financial instruments, at estimated fair value	69,350,988	25,037,346
Securities sold, not yet purchased	308,000	1,457,901
Contingent consideration	12,797,210
Quoted prices in active markets (Level 1)
Marketable securities, available-for-sale	1,345,339	132,994
Derivative financial instruments, at estimated fair value
Securities sold, not yet purchased	308,000	1,457,901
Contingent consideration
Significant other observable inputs (Level 2)
Marketable securities, available-for-sale
Derivative financial instruments, at estimated fair value
Securities sold, not yet purchased
Contingent consideration
Significant unobservable inputs (Level 3)
Marketable securities, available-for-sale
Derivative financial instruments, at estimated fair value	69,350,988	25,037,346
Securities sold, not yet purchased
Contingent consideration	$ 12,797,210

8. FAIR VALUE MEASUREMENTS (Details 2) - USD ($)	3 Months Ended
8. FAIR VALUE MEASUREMENTS (Details 2) - USD ($)	Mar. 31, 2014	Mar. 31, 2013
Fair Value Measurements Details 2
Balance at January 1, 2013	$ 25,037,346
Reclassification of derivative liability to equity upon exercise of warrants	(9,300,162)
Change in estimated fair value of liability classified warrants	53,613,802	$ 2,942,343
Balance at March 31, 2014	$ 69,350,988

9. INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended
9. INTANGIBLE ASSETS (Details Narrative) - USD ($)	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
Other intangible assets, net	$ 73,915,788		$ 2,025,795
Amortization of intangible assets	$ 113,969	$ 0

10. RESEARCH AND DEVELOPMENT (Details) - USD ($)	3 Months Ended
10. RESEARCH AND DEVELOPMENT (Details) - USD ($)	Mar. 31, 2014	Mar. 31, 2013
External service provider costs:
Sparsentan	$ 929,440	$ 108,735
RE-024	2,365,009
Syntocinon	124,866
RE-034	575,686
General	131,375	49,955
Other product candidates	298,402
Total external service provider costs	542,078	158,690
Internal personnel costs	1,461,648
Total research and development	$ 6,886,726	$ 158,690

11. SELLING, GENERAL, AND ADMINISTRATIVE (Details) - USD ($)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Selling General And Administrative
Professional fees	$ 6,155,385	$ 333,842
Compensation and related costs	2,083,589	930,287
Other	1,853,048	462,794
Total selling, general, and administrative expenses	$ 10,092,022	$ 1,726,923

12. NOTES PAYABLE (Detail Narrative) - USD ($)	3 Months Ended
12. NOTES PAYABLE (Detail Narrative) - USD ($)	Mar. 31, 2014	Mar. 31, 2013
Notes Payable Detail Narrative
Interest expense	$ 0	$ 41,563

13. COMMITMENTS AND CONTINGENCIES (Details)	Mar. 31, 2014 USD ($)
Research and Development and other Charitable Donations
2014	$ 4,416,160
2015	2,941,144
2016
2017
2018
2019 and thereafter
Total	7,357,304
Consultants
2014	299,162
2015
2016
2017
2018
2019 and thereafter
Total	299,162
Operating Leases
2014	1,062,953
2015	1,054,961
2016	836,978
2017	69,592
2018
2019 and thereafter
Total	$ 3,024,484

14. STOCKHOLDERS' DEFICIT (Details) - $ / shares	3 Months Ended	12 Months Ended
14. STOCKHOLDERS' DEFICIT (Details) - $ / shares	Mar. 31, 2014	Dec. 31, 2013
Number of stock Unvested Outstanding, Beginning	168,642	267,768
Number of Options Granted	400,000	135,000
Stock vested	(35,247)	(175,793)
Number of Options Forfeited		(58,333)
Number of stock Unvested Outstanding, Ending	533,395	168,642
Weighted Average Fair Value Outstanding, Beginning	$ 6.44	$ 3.20
Weighted Average Fair Value Granted		6.24
Weighted Average Fair Value, stock vested		5.44
Weighted Average Fair Value Forfeited		4.00
Weighted Average Fair Value Outstanding, Ending		$ 6.44
Employee
Number of stock Unvested Outstanding, Beginning	130,215	52,772
Number of Options Granted	400,000	135,000
Stock vested	(16,810)	(36,724)
Number of Options Forfeited		(20,833)
Number of stock Unvested Outstanding, Ending	513,405	130,215
Non Employee
Number of stock Unvested Outstanding, Beginning	38,427	214,996
Number of Options Granted
Stock vested	(18,437)	(139,069)
Number of Options Forfeited		(37,500)
Number of stock Unvested Outstanding, Ending	19,990	38,427

14. STOCKHOLDERS' DEFICIT (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
14. STOCKHOLDERS' DEFICIT (Details Narrative) - USD ($)	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Compensation expense related to restricted shares	$ 771,318	$ 91,086
Unrecognized compensation cost related to restricted shares issued	8,395,949		$ 1,105,967
Expected weighted average period of amount recognized		2 years 9 months 18 days	2 years 2 months 8 days
Employee
Compensation expense related to restricted shares	380,453	$ 20,835
Non Employee
Compensation expense related to restricted shares	$ 3,275,199	$ 138,372

15. SUBSEQUENT EVENTS (Details Narrative) - USD ($)	3 Months Ended
15. SUBSEQUENT EVENTS (Details Narrative) - USD ($)	Mar. 31, 2014	Mar. 31, 2013
Total proceeds upon the exercise of warrants	$ 4,039,152
Subsequent Event [Member]
Common stock issued	411,112
Total proceeds upon the exercise of warrants	$ 2,266,668
Shares of common stock converted into warrants	268,805