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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2012	Feb. 27, 2013	Jun. 30, 2012
Document And Entity Information
Entity Registrant Name	AP PHARMA INC /DE/
Entity Central Index Key	0000818033
Document Type	10-K
Document Period End Date	Dec. 31, 2012
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	Accelerated Filer
Entity Public Float			$ 76,584,169
Entity Common Stock, Shares Outstanding		305,628,293
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2012

Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Current Assets:
Cash and cash equivalents	$ 53,506	$ 17,974
Prepaid expenses and other current assets	584	266
Total Current Assets	54,090	18,240
Property and equipment, net	1,752	1,075
Other long-term assets	130	130
Total Assets	55,972	19,445
Current Liabilities:
Accounts payable	1,912	1,010
Accrued expenses	1,750	1,498
Accrued disposition costs	0	1,082
Convertible notes payable to related parties, net of discount	492	103
Total current liabilities	4,154	3,693
Commitments and Contingencies (Note 7)
Stockholders' Equity:
Preferred stock, 2,500,000 shares authorized; none issued or outstanding at December31, 2012 and 2011
Common stock, $0.01 par value, 1,500,000,000 shares and 1,500,000,000 shares authorized; and 302,232,459 shares and 200,046,292 shares issued and outstanding at December31, 2012 and 2011, respectively	3,024	2,002
Additional paid-in capital	232,381	173,989
Accumulated deficit	(183,587)	(160,239)
Total Stockholders' Equity	51,818	15,752
Total Liabilities and Stockholders' Equity	$ 55,972	$ 19,445

Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2012	Dec. 31, 2011
Statement of Financial Position [Abstract]
Preferred stock, authorized preferred shares	2,500,000	2,500,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized common shares	1,500,000,000	1,500,000,000
Common stock, shares issued	302,232,459	200,046,292
Common stock, shares outstanding	302,232,459	200,046,292

Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
REVENUE
Contract revenue		$ 646	$ 1,301
OPERATING EXPENSES
Research and development	15,045	8,207	7,264
General and administrative	8,786	3,501	3,971
Total operating expenses	23,831	11,708	11,235
Operating loss	(23,831)	(11,062)	(9,934)
OTHER INCOME (EXPENSES)
Gain on sale of royalty interest			2,500
Other income, net			240
Interest expense, net	(599)	(373)	(2)
Total other income (expenses)	(599)	(373)	2,738
Loss from continuing operations	(24,430)	(11,435)	(7,196)
Gain (loss) from discontinued operations	1,082	(379)	(150)
Net loss	$ (23,348)	$ (11,814)	$ (7,346)
Basic and diluted net loss per share:
Loss from continuing operations	$ (0.10)	$ (0.10)	$ (0.18)
Net loss	$ (0.10)	$ (0.10)	$ (0.19)
Weighted-average common shares used to compute basic and diluted net loss per share	244,458	120,263	39,671

Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings / Accumulated Deficit	Total
Beginning BALANCE, shares at Dec. 31, 2009	39,395
Beginning BALANCE, value at Dec. 31, 2009	$ 394	$ 147,481	$ (141,079)	$ 6,796
Net loss			(7,346)	(7,346)
Common stock and warrants issued in private placement, net of issuance costs, value		40		40
Fair value of stock-based compensation for restricted stock awards issued/(cancelled) to directors, shares	661
Fair value of stock-based compensation for restricted stock awards issued/(cancelled) to directors, value	$ 7	378		385
Common stock issued upon exercise of stock options, shares	38
Common stock issued upon exercise of stock options, value		47		47
Common stock issued to employees under ESPP, shares	49
Common stock issued to employees under ESPP, value		30		30
Stock-based compensation expense related to stock options and ESPP		1,364		1,364
Ending BALANCE, shares at Dec. 31, 2010	40,143
Ending BALANCE, value at Dec. 31, 2010	$ 401	149,340	(148,425)	1,316
Net loss			(11,814)	(11,814)
Common stock and warrants issued in private placement, net of issuance costs, shares	160,000
Common stock and warrants issued in private placement, net of issuance costs, value	$ 1,600	21,172		22,772
Conversion benefit included in convertible notes issued		1,573		1,573
Fair value of stock-based compensation for restricted stock awards issued/(cancelled) to directors, shares	(175)
Fair value of stock-based compensation for restricted stock awards issued/(cancelled) to directors, value		98		$ 98
Common stock issued upon exercise of stock options, shares
Common stock issued to employees under ESPP, shares	78
Common stock issued to employees under ESPP, value	$ 1	15		$ 16
Stock-based compensation expense related to stock options and ESPP		1,761		1,761
Fair value of warrants issued to non-employee		30		30
Ending BALANCE, shares at Dec. 31, 2011	200,046
Ending BALANCE, value at Dec. 31, 2011	$ 2,002	173,989	(160,239)	15,752
Net loss			(23,348)	(23,348)
Common stock and warrants issued in private placement, net of issuance costs, shares	102,000
Common stock and warrants issued in private placement, net of issuance costs, value	$ 1,020	49,472		50,492
Conversion benefit included in convertible notes issued		3,168		$ 3,168
Common stock issued upon exercise of stock options, shares
Common stock issued to employees under ESPP, shares	85
Common stock issued to employees under ESPP, value	$ 1	21		$ 22
Warrant exercise, shares	101
Warrant exercise, value	$ 1	(1)
Stock-based compensation expense related to stock options and ESPP		5,552		5,552
Fair value of warrants issued to non-employee		180		180
Ending BALANCE, shares at Dec. 31, 2012	302,232
Ending BALANCE, value at Dec. 31, 2012	$ 3,024	$ 232,381	$ (183,587)	$ 51,818

Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
Statements of Cash Flows - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (23,348)	$ (11,814)	$ (7,346)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss (gain) from discontinued operations	(1,082)	379	150
Depreciation and amortization	197	179	227
Amortization of debt discount	389	103
Stock-based compensation	5,732	1,890	1,749
Loss on retirement of fixed assets			4
Changes in operating assets and liabilities:
Accounts receivable		110	61
Prepaid expenses and other current assets	(318)	16	267
Loss on retirement of fixed assets		(77)	75
Accounts payable	984	467	(3)
Accrued expenses	437	1,298	(579)
Deferred revenue		(272)	(88)
Net cash used in continuing operating activities	(17,009)	(7,721)	(5,483)
Net cash provided by discontinued operations
Net cash used in operating activities	(17,009)	(7,721)	(5,483)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(972)	(513)	(78)
Net cash used in investing activities	(972)	(513)	(78)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock, net of issuance costs	50,491
Proceeds from sale of units of common stock and warrants, net of issuance costs		22,772
Proceeds from convertible note financing, net of issuance costs	3,000	1,312
Proceeds from the exercise of stock options			47
Proceeds from the issuance of shares under the Employee Stock Purchase Plan	22	15	30
Net cash provided by financing activities	53,513	24,099	77
Net increase (decrease) in cash and cash equivalents	35,532	15,865	(5,484)
Cash and cash equivalents, beginning of year	17,974	2,109	7,593
Cash and cash equivalents, end of year	53,506	17,974	2,109
Supplemental Cash Flow Data:
Cash paid for interest		$ 2	$ 4

NOTE 1 BUSINESS

12 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

NOTE 1 BUSINESS

NOTE 1 BUSINESS

A.P. Pharma, Inc. (the “Company,” “we,” “us” and “our”) is a specialty pharmaceutical company developing products using its proprietary Biochronomer™ polymer-based drug delivery platform. This drug delivery platform is designed to improve the therapeutic profile of injectable pharmaceuticals by converting them from products that must be injected once or twice per day to products that need to be injected only once every one or two weeks.

The Company’s lead product candidate, APF530, is being developed for the prevention of both acute CINV for patients undergoing both moderately and highly emetogenic chemotherapy and for the prevention of delayed CINV for patients undergoing moderately emetogenic chemotherapy. One of the most debilitating side effects of cancer chemotherapy, CINV is a leading cause of premature discontinuations of treatment. There is only one injectable 5-HT3 antagonist approved for the prevention of delayed-onset CINV, so this indication represents an area of particular unmet medical need. APF530 contains the 5-HT3 antagonist granisetron formulated in the Company’s proprietary Biochonomer™ drug delivery system, which allows therapeutic drug levels to be maintained for five days with a single subcutaneous injection. This five-day range is designed to cover the delayed phase of CINV. Granisetron was selected for APF530 because it is widely prescribed by physicians based on a well-established record of safety and efficacy.

In May 2009, we filed the original New Drug Application (NDA) seeking approval for APF530 with the U.S. Food and Drug Administration (FDA). The FDA issued a Complete Response Letter for the APF530 in March 2010. We met with the FDA in February and March 2011 to clarify the work needed to address the issues identified in the letter. In September 2012, we resubmitted the NDA seeking approval for APF530 with the FDA. The FDA set a Prescription Drug User Fee Act (PDUFA) action date of March 27, 2013.

We own the worldwide rights to APF530 and are in the early stage of building commercial infrastructure necessary to commercialize APF530 in the U.S. on our own. We are seeking corporate partners to commercialize APF530 in markets outside of the U.S.

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2012

Accounting Policies [Abstract]

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates were made relating to useful lives of fixed assets, valuation allowances, impairment of assets, accruals for research and development expenses and stock-based compensation expenses. Actual results could differ materially from those estimates.

We have evaluated subsequent events through the date the audited financial statements were issued and determined that there were no subsequent events that required disclosure in the financial statements.

Liquidity

We have incurred significant operating losses and negative cash flows from operations and have an accumulated deficit of $183.6 million as of December 31, 2012. During 2011 and 2012, we entered into three financing agreements, which provided us capital to fund operations. In April 2011, we entered into definitive agreements for a convertible note financing, which served as a bridge loan to fund the Company's operations until additional financing was secured (See Note 6). The initial cash received from the bridge loan was approximately $1.3 million, net of issuance costs. In June 2011, we entered into definitive agreements for a private placement of units, which comprised of common stock and warrants (see Note 8). The unit financing, which closed in July 2011, provided the Company with approximately $22.8 million of proceeds, net of issuance costs. In May 2012, we received $3.0 million of cash through the issuance of additional convertible notes as a result of the purchasers who participated in the April 2011 convertible note financing fully exercising their rights to purchase additional convertible notes. In July 2012, the Company closed a common stock financing whereby the Company received approximately $50.5 million of proceeds, net of issuance costs (See Note 7). As of December 31, 2012, we had cash and cash equivalents of $53.5 million. The Company believes that its current working capital is sufficient to fund its operations into 2014.

Cash Equivalents

We consider all highly liquid investments with a maturity from the date of purchase of less than three months to be cash equivalents. We have classified all our investments in certain debt securities as “available-for-sale.” As of December 31, 2012 and 2011, our available-for-sale securities consisted of money market funds primarily containing U.S. government-backed or collateralized overnight securities with original maturities of ninety days or less. The carrying value of our money market funds is included in cash equivalents and approximates their fair value. The Company’s bank accounts have been placed under a control agreement in accordance with the April 2011 convertible note financing (see Note 6).

Property and Equipment

Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows: equipment and machinery, three to five years; furniture and fixtures, five years; and leasehold improvements, over the shorter of the respective lease terms or the respective useful lives of the leasehold improvements.

Long-Lived Assets

As circumstances dictate, we evaluate whether changes have occurred that would require us to consider whether long-lived assets have been impaired. Recoverability of assets to be held and used is determined by comparing the undiscounted net cash flows of long-lived assets to their respective carrying values. If such assets are considered to be impaired, the amount of impairment to be recognized is measured by comparing the projected discounted cash flows using an appropriate discount rate to the asset’s carrying value.

Stock-Based Compensation

We account for share-based payment arrangements in accordance with ASC 718, Compensation – Stock Compensation and ASC 505-50, Equity – Equity Based Payments to Non-Employees, which requires the recognition of compensation expense, using a fair-value based method, for all costs related to share-based payments including stock options, restricted stock awards and stock issued under the employee stock purchase plan. These standards require companies to estimate the fair value of share-based payment awards on the date of the grant using an option-pricing model. See Note 8 for further discussion of our stock-based compensation plans.

Warrants Issued in Connection with Equity Financings

We generally account for warrants issued in connection with equity financings as a component of equity, unless there is a deemed possibility that we may have to settle warrants in cash.

Revenue Recognition

Our revenue arrangements with multiple deliverables are divided into separate units of accounting if certain criteria are met, including whether the delivered item has stand-alone value to the customer and whether there is objective and reliable evidence of the fair value of the undelivered items. The consideration we receive is allocated among the separate units based on their respective fair values, and the applicable revenue recognition criteria are considered separately for each of the separate units. For revenue arrangements entered into after June 15, 2010, management’s estimate of the selling price is considered when fair value is not determinable. Advance payments received in excess of amounts earned are classified as deferred revenue until earned. Milestone payments are recorded as revenue upon achievement of the milestone.

Contract Revenue

We have licensing agreements that generally provide for a non-refundable license fee. The license agreements provide for us to earn future revenue through royalty payments. These non-refundable license fees are generally initially reported as deferred revenue and recognized as revenue over an appropriate period, depending on the license. Revenue recognized from deferred license fees is classified as Contract Revenue in the accompanying statements of operations.

Contract revenue relates to research and development arrangements that generally provide for us to invoice research and development fees based on full-time equivalent hours for each project. Revenue from these arrangements is recognized as the related development services are rendered. This revenue approximates the costs incurred.

Clinical Trial Accruals

Our expenses related to clinical trials are based on estimates of the services received and efforts expended pursuant to contracts with multiple research institutions and clinical research organizations that conduct and manage clinical trials on our behalf. Since the invoicing related to these services does not always coincide with our financial statement close process, we must estimate the level of services performed and fees incurred in determining the accrued clinical trial costs.

The financial terms of these agreements are subject to negotiation and vary from contract to contract, which may result in uneven payment flows. Payments under the contracts depend on factors such as the successful enrollment of patients or achievement of certain events or the completion of portions of the clinical trial or similar conditions. Expenses related to clinical trials generally are accrued based on the level of patient enrollment and services performed by the clinical research organization or related service provider according to the protocol. We monitor patient enrollment levels and related activity to the extent possible and adjust our estimates accordingly. Historically these estimates have been reasonably accurate and no material adjustments have had to be made.

Research and Development

Research and development consists of costs incurred for company-sponsored and collaborative research and development expenses. These costs consist primarily of employee salaries and other personnel-related expenses, facility-related expenses, laboratory consumables, polymer development manufacturing, clinical and pre-clinical related services performed by clinical research organizations, research institutions and other outside service providers.

Research and development expenses under collaborative agreements approximate the revenue recognized, excluding milestone and up-front payments received under such arrangements.

Net Income (Loss) Per Share

Basic income (loss) per share is estimated based on the weighted-average number of common shares outstanding. Diluted income (loss) per share is calculated using the weighted-average number of common shares outstanding and other dilutive securities. Dilutive securities are not included in the computation of diluted net loss per share if the inclusion of these potentially dilutive securities is anti-dilutive (see Note 9).

Concentrations of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents. We invest excess cash in a variety of high-grade short-term, interest-bearing securities. This diversification of risk is consistent with our policy to ensure safety of principal and maintain liquidity.

Segment and Geographic Information

Our operations are confined to a single business segment, the design and commercialization of polymer technologies for pharmaceutical and other applications. Substantially all of our revenues are derived from customers within the United States.

Comprehensive Income (Loss)

ASC 220, Comprehensive Income, requires that an entity’s change in equity or net assets during a period from transactions and other events from non-owner sources be reported. Comprehensive loss for the periods reported was comprised solely of our net loss. The comprehensive loss for the years ended December 31, 2012, 2011 and 2010 was $23.3 million, $11.8 million and $7.3 million, respectively. There were no other changes in equity that were excluded from our net loss for all periods.

Recent Accounting Pronouncements

There have been no recent accounting pronouncements or changes in accounting pronouncements during the fiscal year ended December 31, 2012 that we believe are of significance, or potential significance, to us.

NOTE 3 FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

NOTE 3 FAIR VALUE MEASUREMENTS

NOTE 3 FAIR VALUE MEASUREMENTS

We follow the provisions of ASC 820-10, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and requires certain disclosures about fair value measurements. Broadly, the ASC 820-10 framework clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability.

As a basis for considering such assumptions, ASC 820-10 establishes a three tier value hierarchy which prioritizes the inputs used in measuring fair value as follows: Level 1) observable inputs such as quoted prices in active markets; Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and Level 3) unobservable inputs in which there is little or no market data, which require us to develop our own assumptions. The hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value.

On a recurring basis, we measure our available-for-sale securities at fair value. We used quoted prices in active markets (Level 1) to measure our cash equivalents at fair value on a recurring basis in our balance sheets at December 31, 2012 and 2011. Cash equivalents consist of highly rated money market funds with maturities of ninety days or less and purchased daily at par value with specified yield rates. Due to the high ratings and short-term nature of these funds, we consider the values of all cash equivalents as Level 1 inputs.

The carrying amounts reported in the balance sheets for accounts receivable, accounts payable and accrued expenses approximate fair value because of the short-term nature of these items.

- 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13504-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13433-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

NOTE 4 PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

NOTE 4 PROPERTY AND EQUIPMENT

NOTE 4 PROPERTY AND EQUIPMENT

Property and equipment consist of the following (in thousands):

December 31,	2012			2011

Leasehold improvements	$	1,346		$	1,338
Furniture and equipment		4,036			3,302
Construction-in-progress		777			718

Total property and equipment		6,159			5,358
Accumulated depreciation		(4,407	)		(4,283	)

Property and equipment, net	$	1,752		$	1,075

Depreciation expense amounted to $197,000, $179,000 and $227,000 for the years ended December 31, 2012, 2011 and 2010, respectively. At December 31, 2012 and 2011, construction-in-progress relates to equipment purchases not placed in service.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

NOTE 5 ACCRUED EXPENSES

12 Months Ended

Dec. 31, 2012

Payables and Accruals [Abstract]

NOTE 5 ACCRUED EXPENSES

NOTE 5 ACCRUED EXPENSES

Accrued expenses consist of the following (in thousands):

December 31,	2012		2011

Project costs	$	651	$	555
Accrued compensation		401		555
Other		698		388

Total	$	1,750	$	1,498

NOTE 6 CONVERTIBLE NOTES TO RELATED PARTIES

12 Months Ended

Dec. 31, 2012

Debt Disclosure [Abstract]

NOTE 6 CONVERTIBLE NOTES TO RELATED PARTIES

NOTE 6 CONVERTIBLE NOTES PAYABLE TO RELATED PARTIES

In April 2011, we entered into a Securities Purchase Agreement (Purchase Agreement) with certain institutional investors (Purchasers), including a fund affiliated with Kevin C. Tang, who is one of our directors, for a private placement of up to $4.5 million in Senior Secured Convertible Notes due 2021 (Notes). The Purchase Agreement provided for the Purchasers to purchase $1.5 million aggregate principal amount of Notes at the initial closing. Pursuant to the Purchase Agreement, the Purchasers had the option to purchase an additional $3.0 million aggregate principal amount of Notes at any time until May 2, 2013 (Purchase Option). The Notes are convertible into shares of the Company’s common stock at a rate of 25,000 shares for every $1,000 of principal and accrued interest due under the Notes (Conversion Shares).

The cash received from the initial closing of the Note financing, which resulted in the issuance of $1.5 million aggregate principal amount of Notes, was approximately $1.3 million, net of issuance costs. In May 2012, the Purchasers exercised their Purchase Option in full, and we received $3.0 million of cash through the issuance of the remaining $3.0 million aggregate principal amount of Notes. As a result of the exercise of the Purchase Option, the Purchasers have purchased the full amount of Notes that the Company was obligated to sell under the Purchase Agreement. If the $4.5 million principal amount of Notes is converted, the Company would issue 112.5 million shares of its common stock.

The Notes are secured by substantially all of the assets of the Company, including placing our bank accounts under a control agreement. The Notes initially bore interest at 20% per annum, payable quarterly in cash or in additional principal amount of Notes, at the election of the Purchasers. In June 2011, the Notes were amended to reduce the interest rate to 6% per annum effective July 1, 2011. The Notes mature on May 2, 2021; however, the holders of the Notes may require prepayment of the Notes at any time beginning on or after May 2, 2012, at each holder’s option.

There is no right to convert the Notes to the extent that, after giving effect to such conversion, the holder would beneficially own in excess of 9.99% of the Company’s outstanding common stock. Each holder of the Notes can increase or decrease this beneficial ownership conversion limit by written notice to the Company, which will not be effective until 61 days after delivery of the notice.

As of December 31, 2012, the Company was in compliance with all debt-related covenants under the Notes. Upon the occurrence of an event of default under the Notes, the holders of the Notes have the right to require the Company to redeem all or a portion of their Notes.

Pursuant to the Purchase Agreement, the Company filed a registration statement on Form S-1 registering for resale 69.6 million shares underlying the Notes. The registration statement was declared effective on July 29, 2011. The Purchasers have agreed to waive their right to require the Company to register the additional shares underlying the Notes until they provide notice otherwise.

Concurrent with the approval of the offer and sale of the Notes, our board of directors approved the termination of the Company’s Preferred Shares Rights Agreement (Rights Agreement), effective immediately prior to the Purchase Agreement’s initial closing date.

The Notes contain an embedded conversion feature that was in-the-money on both issuance dates. Based on an effective fixed conversion rate of 25,000 shares for every $1,000 of principal and accrued interest due under the Notes, the total conversion benefit at issuance exceeded the loan proceeds. Therefore, a full debt discount was recorded in an amount equal to the face value of the Notes on the issuance dates and the Company began amortizing the resultant debt discount over the respective 10-year term of the Notes. During fiscal year 2012, accrued interest of approximately $168,000 was paid-in-kind and rolled into the Note principal balance, which resulted in an additional debt discount of approximately $168,000. For the years ended December 31, 2012 and 2011, interest expense relating to the stated rate was approximately $216,000 and $97,000, respectively, and interest expense relating to the amortization of the debt discount was approximately $389,000 and $103,000, respectively.

As of December 31, 2012, the carrying value of the Notes was approximately $492,000, which is comprised of the $4,742,000 Note principal less debt discount of $4,250,000. Accrued interest on the principal balance was approximately $71,000 at December 31, 2012.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

NOTE 7 COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

NOTE 7 COMMITMENTS AND CONTINGENCIES

NOTE 7 COMMITMENTS AND CONTINGENCIES

Our lease for office, warehouse and laboratory space in Redwood City, California expires in 2016. Our Stamford, Connecticut office is being leased for the year 2013 and converts to a month-to-month basis thereafter. We also lease certain office equipment under operating lease arrangements, which expire in 2013. Our future minimum lease payments under these non-cancelable operating leases for facilities and equipment are as follows (in thousands):

		Minimum
For the Years Ended December 31,		Payments
	2013	$	951
	2014		739
	2015		744
	2016		751
	2017		709
	Total	$	3,894

Total rental expense for facilities and equipment was $580,000, $591,000 and $555,000 for the years ended December 31, 2012, 2011 and 2010, respectively.

As part of the sale of our cosmeceutical and toiletry business to RP Scherer Corporation in July 2000, we guaranteed a minimum gross profit percentage on RP Scherer’s sales of products to Ortho Dermatologics (Ortho) and Dermik Laboratories, Inc. (Dermik) (see Note 10).

As permitted under Delaware law and in accordance with our bylaws, we indemnify our officers and directors for certain events or occurrences while the officer or director is or was serving at our request in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. The maximum amount of potential future indemnification is unlimited; however, we have a director or officer insurance policy that limits our exposure and may enable us to recover a portion of any future payments. We believe the fair value of these indemnification agreements is minimal. Accordingly, we have not recorded any liabilities for these agreements as of December 31, 2012.

In the normal course of business, we provide indemnifications of varying scope under our agreements with other companies, typically our clinical research organizations, investigators, clinical sites, suppliers and others. Pursuant to these agreements, we generally indemnify, hold harmless, and agree to reimburse the indemnified parties for losses suffered or incurred by the indemnified parties in connection with use or testing of our products or product candidates or with any U.S. patent or any copyright or other intellectual property infringement claims by any third party with respect to our products. The term of these indemnification agreements is generally perpetual. The potential future payments we could be required to make under these indemnification agreements is unlimited. Historically, costs related to these indemnification provisions have been immaterial. We also maintain various liability insurance policies that limit our exposure. As a result, we believe the fair value of these indemnification agreements is minimal. Accordingly, we have not recorded any liabilities for these agreements as of December 31, 2012.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

NOTE 8 STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2012

Equity [Abstract]

NOTE 8 STOCKHOLDERS’ EQUITY

NOTE 8 STOCKHOLDERS’ EQUITY

Amendments to Articles of Incorporation

In June 2011, we amended our certificate of incorporation to increase the number of shares of authorized common stock from 100,000,000 to 1,500,000,000, par value $0.01 per share. The certificate of amendment was approved by a majority of our stockholders on June 29, 2011.

2009 Private Placement

In October 2009, in a private placement, we sold 7,954,543 shares of our common stock at $0.88 per share and warrants to purchase 3,977,270 shares of our common stock, exercisable through January 7, 2015, at an exercise price of $0.88 per share (2009 Private Placement). The purchasers paid $0.125 per underlying share for the warrants. Additionally, the purchasers had the right to purchase up to an additional 5,165,286 shares at $0.97 per share prior to May 14, 2010 and paid $0.125 per underlying share for the right to purchase such additional shares. These rights expired unexercised on May 14, 2010. Total proceeds from the 2009 Private Placement were approximately $7.9 million, net of issuance costs. We filed a Registration Statement on Form S-3 covering 7,532,617 shares on November 6, 2009, which was declared effective by the SEC on November 17, 2009. On June 30, 2010, we filed a Registration Statement on Form S-3 covering the remaining 421,926 shares and the 3,977,270 shares of our common stock underlying the warrants, which was declared effective by the SEC on July 8, 2010. If we fail to keep any registration statements continuously effective, we may be obligated to pay to the holders of the shares and warrants liquidated damages in the amount of 1% per month of the purchase price for the shares and warrants, up to a maximum cap of 8% of such purchase price.

2011 Private Placement

In June 2011, we entered into a Securities Purchase Agreement with certain purchasers (Securities Purchase Agreement), pursuant to which we agreed to sell for an aggregate price of $24.0 million, 160,000,006 shares of our common stock (Shares) and warrants to purchase 80,000,005 shares of our common stock (Warrants) with an exercise price of $0.18 per share (2011 Private Placement). The 2011 Private Placement closed on July 1, 2011. For each share purchased, the investors received one Warrant to purchase 0.5 shares of common stock (together with a Share, a Unit), at a purchase price of $0.15 per Unit. The Warrants were immediately exercisable and expire on the fifth anniversary of the closing date of July 1, 2011. The Warrants may be exercised for cash only or, if a registration statement is not then effective and available for the resale of the shares of common stock issuable upon exercise of the Warrants, by surrender of such Warrant, or a portion of such Warrant, by way of cashless exercise. There is no right to exercise the Warrants to the extent that after giving effect to such exercise the holder would beneficially own in excess of 9.99% of our outstanding shares of common stock or such other limit as may be designated by any particular purchaser. Each holder of the Warrants can amend or waive the foregoing limitation by written notice to the Company, with such waiver taking effect only upon the expiration of a 61-day notice period.

Under the terms of the Securities Purchase Agreement, on July 29, 2011, the Company filed a registration statement with the SEC to register for resale the Shares and the shares of common stock issuable upon the exercise of the Warrants (collectively, the Registrable Securities). The registration statement was declared effective on August 4, 2011. If the Company fails to keep the registration statement continuously effective for a designated time (with limited exceptions), the Company may be obligated to pay to the holders of the Registrable Securities liquidated damages in an amount equal to 1.0% per month of such holder's pro rata interest in the total purchase price of the Private Placement, capped at a total penalty of 6.0%.

The Company received advance proceeds of approximately $20.3 million as of June 30, 2011. The remaining $3.7 million was received in July 2011 when the Private Placement closed. Total proceeds, net of issuance costs of approximately $1.2 million, were $22.8 million. The 2011 Shares and Warrants were recorded as equity at their fair values on the issuance date.

2012 Private Placement

In July 2012, the Company entered into a securities purchase agreement with certain purchasers, pursuant to which the Company agreed to sell 102,000,000 share of its common stock (2012 Shares) at a purchase price of $0.525 per share of common stock, for an aggregate price of approximately $53.6 million, (2012 Private Placement). The 2012 Private Placement closed on July 30, 2012. The proceeds to the Company from the offering, net of issuance costs, were approximately $50.5 million.

In connection with entering into the securities purchase agreement, the Company also entered into a registration rights agreement. On August 24, 2012, the Company filed a registration statement with the SEC to register the 2012 Shares for resale. The registration statement was declared effective on September 6, 2012. If the Company fails to keep the registration statements continuously effective for a designated time (with limited exceptions), the Company may be obligated to pay to each holder of the 2012 Shares an amount equal to 1.5% per month of the aggregate purchase price of the unregistered 2012 Shares held by such holder, capped at a total penalty of 9.0%.

Stock-Based Compensation Plans

We have two types of stock-based compensation plans, which consist of an employee stock purchase plan and three stock option plans.

In 1997, our stockholders approved our 1997 Employee Stock Purchase Plan (the Purchase Plan). In December 2007, May 2009 and June 2011, our stockholders authorized increases in the number of shares reserved for issuance under the Purchase Plan by 100,000, 200,000 and 500,000 shares, respectively, for a total of 1,000,000 shares reserved at December 31, 2012. Under the terms of the Purchase Plan, employees can elect to have up to a maximum of 10% of their base earnings withheld to purchase our common stock. The purchase price of the stock is 85% of the lower of the closing prices for our common stock on: (i) the first trading day in the enrollment period, as defined in the Purchase Plan, in which the purchase is made, or (ii) the purchase date. The length of the enrollment period may not exceed a maximum of six months. Our compensation committee modified the Purchase Plan such that beginning in May 2008, the length of all offering periods was decreased from 24 months to six months. Enrollment dates are the first business day of May and November and the first enrollment date was April 30, 1997. Approximately 16% of eligible employees participated in the Purchase Plan in 2012. Under the Purchase Plan, we issued 85,475, 77,982 and 48,921 shares in 2012, 2011 and 2010, respectively. The weighted-average fair value per share of purchase rights granted during 2012, 2011 and 2010 was $0.26, $0.20 and $0.30, respectively. The weighted-average exercise price per share of the purchase rights exercised during 2012, 2011 and 2010 was $0.26, $0.20 and $0.61, respectively. We had 445,701, 531,176 and 109,158 shares reserved for issuance under the Purchase Plan at December 31, 2012, 2011 and 2010, respectively.

We currently have one stock option plan from which we can grant options and restricted stock awards to employees, officers, directors and consultants. In December 2007, the stockholders approved our 2007 Equity Incentive Plan (the 2007 Plan). In May 2010 and June 2011, our stockholders approved amendments to our 2007 Equity Incentive Plan to increase the maximum number of shares of common stock available for grant by 2,000,000 and 90,000,000 shares of common stock, respectively, resulting in an aggregate of 95,000,000 shares of common stock authorized for issuance pursuant to awards granted under our 2007 Equity Incentive Plan. We have also granted stock options and restricted stock awards under the 2002 Stock Incentive Plan (the 2002 Plan) and the Non-Qualified Stock Plan (the NQ Plan) in prior years. We were authorized to issue up to 425,000 shares under the 2002 Plan, which includes an increase of 100,000 shares which were approved by stockholders in May 2006, and 2,062,500 shares under the NQ Plan, a plan that had not undergone stockholder approval and could only be utilized to grant stock options and restricted stock awards as inducements to attract new employees, to which 1,000,000 shares were added by the Board of Directors in September 2007, and an additional 1,000,000 shares were added in July 2008. The remaining shares available in the NQ Plan and 2002 Plan expired in October 2010 and February 2012, respectively. In 2012, we granted options to new employees outside of our approved stock option plan. The options to purchase our common stock are granted with an exercise price which equals fair market value of the underlying common stock on the grant dates and expire no later than ten years from the date of grant. The options are exercisable in accordance with vesting schedules that generally provide for them to be fully vested and exercisable four years after the date of grant. Any shares that are issuable upon exercise of options granted that expire or become unexercisable for any reason without having been exercised in full are available for future grant and issuance under the same stock option plan.

As discussed in Note 2, we record stock-based compensation expense based on the fair value of stock options and purchase rights issued to employees in conjunction with our stock option plans or the Purchase Plan on the grant date or purchase date. We also record compensation expense for warrants and stock options issued to non-employees and restricted stock awards to employees and directors.

The fair value of each employee and director grant of options to purchase common stock and purchase rights under the Purchase Plan is estimated on the date of the grant using the Black-Scholes option-pricing model assuming no dividends and the following weighted-average assumptions:

	2012	2011	2010
Expected term (years):
Stock options	5.51	5.00	6.00
Employee Stock Purchase Plan	.49	.50	.50
Risk-free interest rate:
Stock options	0.8%	1.6%	2.6%
Employee Stock Purchase Plan	0.2%	0.8%	0.2%
Volatility:
Stock options	106%	106%	164%
Employee Stock Purchase Plan	0.8%	142%	92%

The expected term is based on historical data. The expected term for the Purchase Plan is based on the weighted-average purchase period of the Purchase Plan. The expected volatility is based on our historical stock prices, and the estimated forfeiture rate of the options is based on historical data.

The Black-Scholes option valuation model requires the input of highly subjective assumptions, including the expected life of the award and stock price volatility. The assumptions listed above represent management’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if other assumptions had been used, our recorded stock-based compensation expense could have been materially different.

Stock-based compensation expense recorded for awards granted under the stock option plans and the Purchase Plan, net of estimated forfeitures, was as follows (in thousands, except per share amounts):

For the Years Ended December 31,	2012		2011		2010

Research and development	$	1,585	$	819	$	398
General and administrative		4,147		1,071		1,351

Total	$	5,732	$	1,890	$	1,749

Impact on basic and diluted net loss per common share	$	0.02	$	0.02	$	0.04

In 2012, we recorded additional stock-based compensation expense as a result of accelerated vesting of stock options in connection with the resignation of two directors. In 2010, we recorded additional stock-based compensation expense as a result of accelerated vesting of stock options in connection with the resignation of our former chief executive officer. No tax benefit was recognized related to stock-based compensation expense since we have incurred operating losses and we have established a full valuation allowance to offset all the potential tax benefits associated with our deferred tax assets.

The following table summarizes option activity for the years ended December 31, 2012, 2011 and 2010:

	2012									2011					2010
						Weighted-		Aggregate
				Weighted-		Average		Intrinsic					Weighted-					Weighted-
				Average		Remaining		Value as of					Average					Average
				Exercise		Contractual		December 31,					Exercise					Exercise
	Shares			Price		Term (Years)		2012		Shares			Price		Shares			Price

Outstanding at beginning of year		50,106,287		$	0.31						3,217,240		$	1.49		3,092,417		$	1.91
Granted		37,485,000			0.58						48,070,000			0.26		1,087,700			1.45
Exercised		—			—						—			—		(37,786	)		1.24
Expired or Forfeited		(1,308,779	)		0.74						(1,180,953	)		1.63		(925,091	)		2.85
Outstanding at end of year		86,282,508			0.42		8.20	$	14,555,918		50,106,287			0.31		3,217,240			1.49

Options exercisable at year end		22,646,940			0.38		7.13	$	5,137,054		6,740,497			0.53		1,316,567			1.72

Options vested or expected to vest		85,471,879			0.42		8.20	$	14,466,053		49,434,997			0.31

Shares available for future grant at year end		20,471,897									44,261,608					2,039,549

Weighted-average fair value of stock options granted during the year				$	0.46								$	0.21				$	1.39

As of December 31, 2012, there was approximately $21.1 million of total unrecognized compensation expense related to unvested stock options. This expense is expected to be recognized over a weighted-average period of 2.9 years. Cash received from option exercises for the years ended December 31, 2012, 2011 and 2010 was $0, $0 and $47,000, respectively. The total intrinsic value of options exercised in the year ended December 31, 2012, 2011 and 2010 was $0, $0, and $5,000, respectively.

The following table summarizes information about stock options outstanding at December 31, 2012:

		OPTIONS OUTSTANDING						OPTIONS EXERCISABLE
				Weighted-
				Average		Weighted-				Weighted-
				Remaining		Average				Average
Range of		Number		Contractual		Exercise		Number		Exercise
Exercise Prices		Outstanding		Life (Years)		Price		Exercisable		Price

	$0.19 - $0.19		162,500		5.61	$	0.19		91,667	$	0.19
	$0.26 - $0.26		47,022,303		7.33		0.26		17,200,939		0.26
	$0.32 - $0.53		11,285,000		9.71		0.47		546,875		0.34
	$0.58 - $0.61		2,046,436		4.93		0.59		1,764,145		0.59
	$0.62 - $0.62		10,400,000		9.79		0.62		—		—
	$0.63 - $0.63		10,000,000		9.46		0.63		1,708,334		0.63
	$0.64 - $6.96		5,355,769		8.59		0.84		1,324,480		1.36
	$7.00 - $7.00		5,000		0.67		7.00		5,000		7.00
	$9.80 - $9.80		3,000		1.04		9.80		3,000		9.80
	$11.756 - $11.756		2,500		1.40		11.76		2,500		11.76

	$0.19 - $11.756		86,282,508		8.20	$	0.42		22,646,940	$	0.38

As of December 31, 2012, there were no unvested restricted stock awards granted to employees and directors. The compensation cost that has been expensed in the statements of operations for the restricted stock awards issued to employees and directors was $0, $98,000 and $385,000 for 2012, 2011 and 2010, respectively.

In November 2009, our Board of Directors extended the vesting period for certain restricted stock awards granted in May 2009 from December 31, 2009 to January 2, 2010. The modification of the restricted stock awards did not result in additional compensation expense.

The following table summarizes information about the Company’s warrants outstanding at December 31, 2012:

	Number of Shares Exercisable		Exercise Price			Expiration Date

Issued to private placement investors in October 2009		3,977,270	$	0.88		1/7/2015
Issued to private placement investors in July 2011		80,000,005	$	0.18		7/1/2016
Other		400,000	$	0.69		8/1/2015
Total warrants outstanding at December 31, 2012		84,377,275	$	0.21	*

* Average exercise price

Common Stock Reserved for Future Issuance

As of December 31, 2012, the Company had reserved shares of common stock for future issuance as follows:

	No. of Shares

Issuance upon exercise of outstanding stock options		86,282,508
Issuance of future grants under stock option plans		20,471,897
Issuance of future grants under employee stock purchase plan		445,701
Issuance of common stock related to convertible notes*		197,686,842
Issuance upon exercise of warrants		84,377,275

Total		389,264,223


* Assumes all interest payments are paid-in-kind through the maturity date.

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Section B
-Paragraph 7, 11A
-Chapter 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

NOTE 9 NET LOSS PER SHARE

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

NOTE 9 NET LOSS PER SHARE

NOTE 9 NET LOSS PER SHARE

Basic and diluted net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding for the applicable period. Diluted net loss per share excludes the effect of outstanding potentially dilutive securities because they are anti-dilutive. The following table shows the outstanding potentially dilutive options, unvested restricted stock awards, warrants and convertible notes as of December 31, 2012, 2011 and 2010 (in thousands):

For the Years Ended December 31,	2012		2011		2010

Number of options outstanding		86,283		50,106		3,217
Number of unvested restricted stock awards outstanding		—		—		319
Number of warrants outstanding		84,377		84,127		3,977
Common stock related to convertible notes outstanding		118,542		39,331		—

NOTE 10 DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2012

Discontinued Operations and Disposal Groups [Abstract]

NOTE 10 DISCONTINUED OPERATIONS

NOTE 10 DISCONTINUED OPERATIONS

Cosmeceutical and Toiletry Business

On July 25, 2000, we completed the sale of certain technology rights for our cosmeceutical and toiletry business to RP Scherer Corporation (RP Scherer), a subsidiary of Cardinal Health, Inc.

Under the terms of the agreement with RP Scherer, we guaranteed a minimum gross profit percentage on RP Scherer’s combined sales of products to Ortho and Dermik (Gross Profit Guaranty). In July 2011, Valeant Pharmaceuticals announced it was acquiring both Ortho and Dermik. The guaranty period initially commenced on July 1, 2000 and was to end on the earlier of July 1, 2010 or the end of two consecutive guaranty periods where the combined gross profit on sales to Ortho and Dermik equals or exceeds the guaranteed gross profit (Two Period Test). The Gross Profit Guaranty expense totaled $944,000 for the first seven guaranty years and in those years profits did not meet the Two Period Test. Effective March 2007, in conjunction with a sale of assets by RP Scherer’s successor company to an Amcol International subsidiary (Amcol), a new agreement was signed between us and Amcol to provide continuity of product supply to Ortho and Dermik. This new agreement potentially extended the Gross Profit Guaranty period an additional two years to July 1, 2013, unless it was terminated earlier with the Two Period Test. In February 2013, an arbitrator ruled that no additional amounts were owed under the gross profit guaranty and that the term of the gross profit guaranty has ended. We had previously recorded a liability of the $1.1 million related to the amount that Amcol asserted was due under the Gross Profit Guaranty. This event qualifies as an adjusting event under ASC 855, Subsequent Event and in light of the arbitrator’s decision in February 2013, which was final and binding, we reversed this accrual as of December 31, 2012.

The cosmeceutical and toiletry business is reported as discontinued operations for all periods presented in the accompanying Statements of Operations. Gain (loss) from discontinued operations represents primarily the gain (loss) attributable to changes in estimates of our cosmeceutical and toiletry business that was sold to RP Scherer on July 25, 2000, as follows (in thousands):

For the years ended December 31,	2012		2011			2010
Cosmeceutical and Toiletry Business:
Change in estimates for guarantees	$	1,082	$	(379	)	$	(150	)

There was no revenue relating to discontinued operations for the years ended December 31, 2012, 2011 and 2010.

Basic and diluted loss per common share from discontinued operations was $0 for the years ended December 31, 2012, 2011 and 2010.

As of December 31, 2012, 2011 and 2010, accrued disposition cost of $0, $1.1 million and $0.7 million, respectively, represents accruals for gross profit guarantees related to discontinued operations.

- Definition

Disclosure of accounting policy for any discontinued operations. The results of operations of a component of an entity that either has been disposed of or is classified as held for sale is reported in discontinued operations if both: (a) the operations and cash flows of the component have been (or will be) eliminated from the ongoing operations of the entity as a result of the disposal transaction and (b) the entity will not have any significant continuing involvement in the operations of the component after the disposal transaction. If the entity elects to allocate interest expense to a discontinued operation, it may disclose its accounting policy for this election and describe its method of allocation.

+ References + Details

NOTE 11 DEFINED CONTRIBUTION PLAN

12 Months Ended

Dec. 31, 2012

Compensation and Retirement Disclosure [Abstract]

NOTE 11 DEFINED CONTRIBUTION PLAN

NOTE 11 DEFINED CONTRIBUTION PLAN

We have a defined contribution plan (401k) covering substantially all of our employees. In the past three calendar years, we made matching cash contributions equal to 50% of each participant’s contribution during the plan year up to a maximum amount equal to the lesser of 3% of each participant’s annual compensation or $7,500 for the year 2012 and $7,350 for the years 2011 and 2010, and such amounts were recorded as expense in the corresponding years. We may also contribute additional discretionary amounts to the defined contribution plan as we may determine. For the years ended December 31, 2012, 2011 and 2010, we contributed to the plan approximately $71,000, $46,000 and $51,000, respectively. No discretionary contributions have been made to the plan since its inception.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Implementation Guide (Q and A)
-Number FAS88
-Paragraph 63
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-2
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph q
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 8
-Subparagraph m
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS106-2
-Paragraph 20, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 30
-Paragraph 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

NOTE 12 INCOME TAXES

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

NOTE 12 INCOME TAXES

NOTE 12 INCOME TAXES

There is no provision recorded for the fiscal years ended 2012, 2011 and 2010 because we have incurred operating losses.

Deferred income taxes reflect the net tax effects of net operating loss and tax credit carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets are as follows (in thousands):

December 31,	2012			2011			2010

Deferred Tax Assets:
Net operating loss carryforwards	$	13,900		$	6,700		$	22,800
Research credits		2,300			2,100			3,200
Stock compensation expense		2,600			600			900
Other		400			900			700
Total deferred tax assets		19,200			10,300			27,600
Valuation allowance		(19,200	)		(10,300	)		(27,600	)
Net deferred tax assets	$	—		$	—		$	—

Realization of our deferred tax assets is dependent upon our future taxable income, if any, the timing and amount of which are uncertain. Accordingly, our deferred tax assets have been fully offset by a valuation allowance. The valuation allowance increased by $8.9 million and $0.7 million during 2012 and 2010, respectively, and decreased by $17.3 million during 2011.

As of December 31, 2012, we had federal and California net operating loss carryforwards of $35.1 million and $34.1 million, respectively, and federal and California research and development tax credit carryforwards of $0 million and $3.4 million, respectively. Of the carryforwards, federal and California net operating loss carryforwards of $12.2 million and $10.9 million, respectively, are subject to annual limitations and will be available from 2013 through 2031, as a result of federal ownership change limitations. The remaining federal and state net operating losses carryforwards expire at various dates beginning in the years 2012 through 2032, if not utilized. The state research credits have no expiration date.

Federal and state laws limit the use of net operating loss and tax credit carryforwards in certain situations where changes occur in the stock ownership of a company. We conducted an analysis of our stock ownership under Internal Revenue Code Section 382 and have reported our deferred tax assets related to net operating loss and research credit carryforwards after recognizing change of control limitations in 2007 and 2011. The limitation of our federal and state carryforwards associated with previous net operating loss and research credit carryforwards, and the associated reduction in our deferred tax assets, was offset by a reduction in our valuation allowance. Utilization of our remaining net operating loss and research and development credit carryforwards may still be subject to substantial annual limitations due to ownership change limitations after December 31, 2012. Such an annual limitation could result in the expiration of the net operating loss and research and development credit carryforwards available as of December 31, 2012 before utilization.

The provision for income taxes differs from the amount computed by applying the U.S. federal statutory tax rate (34% in 2012, 2011 and 2010) to income taxes as follows (in thousands):

December 31,	2012			2011			2010

Tax benefit computed at 34%	$	(7,937	)	$	(4,017	)	$	(2,498	)
Stock compensation expense		176			148			173
Other		210			70			84
AMT credit		—			—			—
NOL not benefitted		7,551			3,799			2,241

Tax Provision (Benefit)	$	—		$	—		$	—

We follow the provisions of ASC 740-10-50, Accounting for Uncertainty in Income Tax Provisions. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):

December 31,	2012		2011		2010
Unrecognized tax benefit:
At the beginning of the period	$	120	$	120	$	120
Gross increases – tax positions in the current period		—		—		—
Gross decreases – tax positions in the current period		—		—		—
At the end of the period	$	120	$	120	$	120

The unrecognized tax benefit, if recognized in full, would result in adjustments to deferred taxes and the related valuation allowance. We do not currently anticipate any significant changes to the unrecognized tax benefits in 2013. Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of tax expense. To date, we have not used the unrecognized tax benefits to reduce any of our past tax obligations. As a result, we had no accrual for the payment of interest and penalties related to the unrecognized tax benefits. As of December 31, 2012, our tax returns were subject to future examination in the U.S. federal and state tax jurisdictions for the tax years 1997 through 2012, due to net operating losses and research credits that are being carried forward.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

+ Details

NOTE 13 SIGNIFICANT AGREEMENTS

12 Months Ended

Dec. 31, 2012

Organization, Consolidation and Presentation of Financial Statements [Abstract]

NOTE 13 SIGNIFICANT AGREEMENTS

NOTE 13 SIGNIFICANT AGREEMENTS

Merial Limited

In September 2009, we entered into a world-wide license and development agreement with Merial Limited (Merial), a world leading animal health company, for a long acting pain management product for companion animals. Under the terms of the agreement, we received a nonrefundable upfront license fee and would receive development funding and potential future milestone payments and royalties following commercialization.

Under the license and development agreement, we were obligated to perform reimbursable development services and provide any improvements related to the licensed technology during the six-year development period. We recognized the upfront license fee ratably over the development period, and recognized revenue from the development services when the services were rendered.

In May 2011, we received notice of termination from Merial due to their concerns about the commercial potential of the product under development in the animal health market. We recognized $0.0 million, $0.6 million and $1.3 million in revenue related to development services to Merial for the years ended 2012, 2011 and 2010, respectively. The remaining balance of deferred revenue related to the upfront license fee of $0.1 million was recognized as revenue in the quarter ended June 30, 2011, upon termination of the licensing agreement by Merial.

Paul Royalty Fund

On January 18, 2006, we sold our rights to royalties on sales of Retin-A Micro® and Carac®, effective October 1, 2005, to an affiliate of the Paul Royalty Fund for $30.0 million. Proceeds of $25.0 million were received upon the closing of the transaction and used primarily to fund the Phase 3 pivotal trial of APF530. Subsequent $2.5 million payments were received in both 2007 and January 2010 upon the achievement of certain milestones.

- Definition

Tabular disclosure of significant agreements under research and development arrangements accounted for as a contract to perform research and development for others (including royalty arrangements, purchase provisions, license agreements, and commitments to provide additional funding), aggregated by similar arrangements or individually if necessary to understand the effects on the financial statements. Include also the amount of costs incurred under a research and development arrangement accounted for as a contract to perform research and development for others. Aggregation of similar arrangements by type may be appropriate. Include also the amount of compensation earned (contract income) under a research and development arrangement accounted for as a contract to perform research and development for others. Aggregation of similar arrangements by type may be appropriate.

+ References + Details

NOTE 14 QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

12 Months Ended

Dec. 31, 2012

Quarterly Financial Information Disclosure [Abstract]

NOTE 14 QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

NOTE 14 QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The following table presents summarized unaudited results of operations for each of our quarters in the years ended December 31, 2012 and 2011.

Quarterly Results of Operations

(in thousands, except per share data)

(unaudited)

	First			Second			Third			Fourth
Year Ended December 31, 2012		Quarter			Quarter			Quarter			Quarter
Total revenue	$	—		$	—		$	—		$	—
Operating expenses		4,769			4,380			6,054			8,628
Interest and other expense, net		(61	)		(146	)		(195	)		(197	)
Loss from continuing operations		(4,830	)		(4,526	)		(6,249	)		(8,825	)
Discontinued operations		(91	)		(43	)		128			1,088
Net loss		(4,921	)		(4,569	)		(6,121	)		(7,737	)
Basic and diluted net loss per share:
Loss from continuing operations	$	(0.02	)	$	(0.02	)	$	(0.02	)	$	(0.03	)
Net loss		(0.02	)		(0.02	)		(0.02	)	$	(0.03	)

		First			Second			Third			Fourth
Year Ended December 31, 2011		Quarter			Quarter			Quarter			Quarter
Total revenue	$	395		$	251		$	—		$	—
Operating expenses		1,710			1,791			4,089			4,118
Interest and other expense, net		(1	)		(263	)		(62	)		(47	)
Loss from continuing operations		(1,316	)		(1,803	)		(4,151	)		(4,165	)
Discontinued operations		(103	)		(129	)		(51	)		(96	)
Net loss		(1,419	)		(1,932	)		(4,202	)		(4,261	)
Basic and diluted net loss per share:
Loss from continuing operations	$	(0.03	)	$	(0.05	)	$	(0.02	)	$	(0.02	)
Net loss		(0.04	)		(0.05	)		(0.02	)		(0.02	)

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2012
Summary of significant accounting policies
Basis of Presentation and Use of Estimates	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates were made relating to useful lives of fixed assets, valuation allowances, impairment of assets, accruals for research and development expenses and stock-based compensation expenses. Actual results could differ materially from those estimates. We have evaluated subsequent events through the date the audited financial statements were issued and determined that there were no subsequent events that required disclosure in the financial statements.
Liquidity	We have incurred significant operating losses and negative cash flows from operations and have an accumulated deficit of $183.6 million as of December 31, 2012. During 2011 and 2012, we entered into three financing agreements, which provided us capital to fund operations. In April 2011, we entered into definitive agreements for a convertible note financing, which served as a bridge loan to fund the Company's operations until additional financing was secured (See Note 6). The initial cash received from the bridge loan was approximately $1.3 million, net of issuance costs. In June 2011, we entered into definitive agreements for a private placement of units, which comprised of common stock and warrants (see Note 8). The unit financing, which closed in July 2011, provided the Company with approximately $22.8 million of proceeds, net of issuance costs. In May 2012, we received $3.0 million of cash through the issuance of additional convertible notes as a result of the purchasers who participated in the April 2011 convertible note financing fully exercising their rights to purchase additional convertible notes. In July 2012, the Company closed a common stock financing whereby the Company received approximately $50.5 million of proceeds, net of issuance costs (See Note 7). As of December 31, 2012, we had cash and cash equivalents of $53.5 million. The Company believes that its current working capital is sufficient to fund its operations into 2014.
Cash Equivalents	We consider all highly liquid investments with a maturity from the date of purchase of less than three months to be cash equivalents. We have classified all our investments in certain debt securities as “available-for-sale.” As of December 31, 2012 and 2011, our available-for-sale securities consisted of money market funds primarily containing U.S. government-backed or collateralized overnight securities with original maturities of ninety days or less. The carrying value of our money market funds is included in cash equivalents and approximates their fair value. The Company’s bank accounts have been placed under a control agreement in accordance with the April 2011 convertible note financing (see Note 6).
Property and Equipment	Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows: equipment and machinery, three to five years; furniture and fixtures, five years; and leasehold improvements, over the shorter of the respective lease terms or the respective useful lives of the leasehold improvements.
Long-Lived Assets	As circumstances dictate, we evaluate whether changes have occurred that would require us to consider whether long-lived assets have been impaired. Recoverability of assets to be held and used is determined by comparing the undiscounted net cash flows of long-lived assets to their respective carrying values. If such assets are considered to be impaired, the amount of impairment to be recognized is measured by comparing the projected discounted cash flows using an appropriate discount rate to the asset’s carrying value.
Stock-Based Compensation	We account for share-based payment arrangements in accordance with ASC 718, Compensation – Stock Compensation and ASC 505-50, Equity – Equity Based Payments to Non-Employees, which requires the recognition of compensation expense, using a fair-value based method, for all costs related to share-based payments including stock options, restricted stock awards and stock issued under the employee stock purchase plan. These standards require companies to estimate the fair value of share-based payment awards on the date of the grant using an option-pricing model. See Note 8 for further discussion of our stock-based compensation plans.
Warrants Issued in Connection with Equity Financings	We generally account for warrants issued in connection with equity financings as a component of equity, unless there is a deemed possibility that we may have to settle warrants in cash.
Revenue Recognition	Our revenue arrangements with multiple deliverables are divided into separate units of accounting if certain criteria are met, including whether the delivered item has stand-alone value to the customer and whether there is objective and reliable evidence of the fair value of the undelivered items. The consideration we receive is allocated among the separate units based on their respective fair values, and the applicable revenue recognition criteria are considered separately for each of the separate units. For revenue arrangements entered into after June 15, 2010, management’s estimate of the selling price is considered when fair value is not determinable. Advance payments received in excess of amounts earned are classified as deferred revenue until earned. Milestone payments are recorded as revenue upon achievement of the milestone.
Contract Revenue	We have licensing agreements that generally provide for a non-refundable license fee. The license agreements provide for us to earn future revenue through royalty payments. These non-refundable license fees are generally initially reported as deferred revenue and recognized as revenue over an appropriate period, depending on the license. Revenue recognized from deferred license fees is classified as Contract Revenue in the accompanying statements of operations. Contract revenue relates to research and development arrangements that generally provide for us to invoice research and development fees based on full-time equivalent hours for each project. Revenue from these arrangements is recognized as the related development services are rendered. This revenue approximates the costs incurred.
Clinical Trial Accruals	Our expenses related to clinical trials are based on estimates of the services received and efforts expended pursuant to contracts with multiple research institutions and clinical research organizations that conduct and manage clinical trials on our behalf. Since the invoicing related to these services does not always coincide with our financial statement close process, we must estimate the level of services performed and fees incurred in determining the accrued clinical trial costs. The financial terms of these agreements are subject to negotiation and vary from contract to contract, which may result in uneven payment flows. Payments under the contracts depend on factors such as the successful enrollment of patients or achievement of certain events or the completion of portions of the clinical trial or similar conditions. Expenses related to clinical trials generally are accrued based on the level of patient enrollment and services performed by the clinical research organization or related service provider according to the protocol. We monitor patient enrollment levels and related activity to the extent possible and adjust our estimates accordingly. Historically these estimates have been reasonably accurate and no material adjustments have had to be made.
Research and Development	Research and development consists of costs incurred for company-sponsored and collaborative research and development expenses. These costs consist primarily of employee salaries and other personnel-related expenses, facility-related expenses, laboratory consumables, polymer development manufacturing, clinical and pre-clinical related services performed by clinical research organizations, research institutions and other outside service providers. Research and development expenses under collaborative agreements approximate the revenue recognized, excluding milestone and up-front payments received under such arrangements.
Net Income (Loss) Per Share	Basic income (loss) per share is estimated based on the weighted-average number of common shares outstanding. Diluted income (loss) per share is calculated using the weighted-average number of common shares outstanding and other dilutive securities. Dilutive securities are not included in the computation of diluted net loss per share if the inclusion of these potentially dilutive securities is anti-dilutive (see Note 9).
Concentrations of Credit Risk	Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents. We invest excess cash in a variety of high-grade short-term, interest-bearing securities. This diversification of risk is consistent with our policy to ensure safety of principal and maintain liquidity.
Segment and Geographic Information	Our operations are confined to a single business segment, the design and commercialization of polymer technologies for pharmaceutical and other applications. Substantially all of our revenues are derived from customers within the United States.
Comprehensive Income (Loss)	ASC 220, Comprehensive Income, requires that an entity’s change in equity or net assets during a period from transactions and other events from non-owner sources be reported. Comprehensive loss for the periods reported was comprised solely of our net loss. The comprehensive loss for the years ended December 31, 2012, 2011 and 2010 was $23.3 million, $11.8 million and $7.3 million, respectively. There were no other changes in equity that were excluded from our net loss for all periods.
Recent Accounting Pronouncements	There have been no recent accounting pronouncements or changes in accounting pronouncements during the fiscal year ended December 31, 2012 that we believe are of significance, or potential significance, to us.

NOTE 4 PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

Property and equipment consist of the following (in thousands):

December 31,	2012			2011

Leasehold improvements	$	1,346		$	1,338
Furniture and equipment		4,036			3,302
Construction-in-progress		777			718

Total property and equipment		6,159			5,358
Accumulated depreciation		(4,407	)		(4,283	)

Property and equipment, net	$	1,752		$	1,075

NOTE 5 ACCRUED EXPENSES (Tables)

12 Months Ended

Dec. 31, 2012

Payables and Accruals [Abstract]

Accrued expenses consist of the following (in thousands):

December 31,	2012		2011

Project costs	$	651	$	555
Accrued compensation		401		555
Other		698		388

Total	$	1,750	$	1,498

NOTE 7 COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Future minimum lease payments (in thousands)

		Minimum
For the Years Ended December 31,		Payments
	2013	$	951
	2014		739
	2015		744
	2016		751
	2017		709
	Total	$	3,894

NOTE 8 STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Dec. 31, 2012

Equity [Abstract]

Stock option valuation assumptions

	2012			2011			2010
Expected term (years):
Stock options		5.51			5.00			6.00
Employee Stock Purchase Plan		.49			.50			.50
Risk-free interest rate:
Stock options		0.8	%		1.6	%		2.6	%
Employee Stock Purchase Plan		0.2	%		0.8	%		0.2	%
Volatility:
Stock options		106	%		106	%		164	%
Employee Stock Purchase Plan		0.8	%		142	%		92	%

Stock-based compensation expense (in thousands, except per share amounts)

For the Years Ended December 31,	2012		2011		2010

Research and development	$	1,585	$	819	$	398
General and administrative		4,147		1,071		1,351

Total	$	5,732	$	1,890	$	1,749

Impact on basic and diluted net loss per common share	$	0.02	$	0.02	$	0.04

Stock option activity

	2012									2011					2010
						Weighted-		Aggregate
				Weighted-		Average		Intrinsic					Weighted-					Weighted-
				Average		Remaining		Value as of					Average					Average
				Exercise		Contractual		December 31,					Exercise					Exercise
	Shares			Price		Term (Years)		2012		Shares			Price		Shares			Price

Outstanding at beginning of year		50,106,287		$	0.31						3,217,240		$	1.49		3,092,417		$	1.91
Granted		37,485,000			0.58						48,070,000			0.26		1,087,700			1.45
Exercised		—			—						—			—		(37,786	)		1.24
Expired or Forfeited		(1,308,779	)		0.74						(1,180,953	)		1.63		(925,091	)		2.85
Outstanding at end of year		86,282,508			0.42		8.20	$	14,555,918		50,106,287			0.31		3,217,240			1.49

Options exercisable at year end		22,646,940			0.38		7.13	$	5,137,054		6,740,497			0.53		1,316,567			1.72

Options vested or expected to vest		85,471,879			0.42		8.20	$	14,466,053		49,434,997			0.31

Shares available for future grant at year end		20,471,897									44,261,608					2,039,549

Weighted-average fair value of stock options granted during the year				$	0.46								$	0.21				$	1.39

Stock options outstanding

		OPTIONS OUTSTANDING						OPTIONS EXERCISABLE
				Weighted-
				Average		Weighted-				Weighted-
				Remaining		Average				Average
Range of		Number		Contractual		Exercise		Number		Exercise
Exercise Prices		Outstanding		Life (Years)		Price		Exercisable		Price

	$0.19 - $0.19		162,500		5.61	$	0.19		91,667	$	0.19
	$0.26 - $0.26		47,022,303		7.33		0.26		17,200,939		0.26
	$0.32 - $0.53		11,285,000		9.71		0.47		546,875		0.34
	$0.58 - $0.61		2,046,436		4.93		0.59		1,764,145		0.59
	$0.62 - $0.62		10,400,000		9.79		0.62		—		—
	$0.63 - $0.63		10,000,000		9.46		0.63		1,708,334		0.63
	$0.64 - $6.96		5,355,769		8.59		0.84		1,324,480		1.36
	$7.00 - $7.00		5,000		0.67		7.00		5,000		7.00
	$9.80 - $9.80		3,000		1.04		9.80		3,000		9.80
	$11.756 - $11.756		2,500		1.40		11.76		2,500		11.76

	$0.19 - $11.756		86,282,508		8.20	$	0.42		22,646,940	$	0.38

Warrants outstanding

	Number of Shares Exercisable		Exercise Price			Expiration Date

Issued to private placement investors in October 2009		3,977,270	$	0.88		1/7/2015
Issued to private placement investors in July 2011		80,000,005	$	0.18		7/1/2016
Other		400,000	$	0.69		8/1/2015
Total warrants outstanding at December 31, 2012		84,377,275	$	0.21	*

* Average exercise price

Common shares reserved for future issuance

	No. of Shares

Issuance upon exercise of outstanding stock options		86,282,508
Issuance of future grants under stock option plans		20,471,897
Issuance of future grants under employee stock purchase plan		445,701
Issuance of common stock related to convertible notes*		197,686,842
Issuance upon exercise of warrants		84,377,275

Total		389,264,223


* Assumes all interest payments are paid-in-kind through the maturity date.

NOTE 9 NET LOSS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Schedule of antidilutive securities (in thousands)

For the Years Ended December 31,	2012		2011		2010

Number of options outstanding		86,283		50,106		3,217
Number of unvested restricted stock awards outstanding		—		—		319
Number of warrants outstanding		84,377		84,127		3,977
Common stock related to convertible notes outstanding		118,542		39,331		—

NOTE 10 DISCONTINUED OPERATIONS (Tables)

12 Months Ended

Dec. 31, 2012

Discontinued Operations and Disposal Groups [Abstract]

Discontinued operations (in thousands)

For the years ended December 31,	2012		2011			2010
Cosmeceutical and Toiletry Business:
Change in estimates for guarantees	$	1,082	$	(379	)	$	(150	)

NOTE 12 INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Income Tax Disclosure [Abstract]

Deferred tax assets (in thousands)

December 31,	2012			2011			2010

Deferred Tax Assets:
Net operating loss carryforwards	$	13,900		$	6,700		$	22,800
Research credits		2,300			2,100			3,200
Stock compensation expense		2,600			600			900
Other		400			900			700
Total deferred tax assets		19,200			10,300			27,600
Valuation allowance		(19,200	)		(10,300	)		(27,600	)
Net deferred tax assets	$	—		$	—		$	—

Provision for income taxes (in thousands)

December 31,	2012			2011			2010

Tax benefit computed at 34%	$	(7,937	)	$	(4,017	)	$	(2,498	)
Stock compensation expense		176			148			173
Other		210			70			84
AMT credit		—			—			—
NOL not benefitted		7,551			3,799			2,241

Tax Provision (Benefit)	$	—		$	—		$	—

Unrecognized tax benefits (in thousands)

December 31,	2012		2011		2010
Unrecognized tax benefit:
At the beginning of the period	$	120	$	120	$	120
Gross increases – tax positions in the current period		—		—		—
Gross decreases – tax positions in the current period		—		—		—
At the end of the period	$	120	$	120	$	120

NOTE 14 QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations (in thousands, except per share data) (unaudited)

	First			Second			Third			Fourth
Year Ended December 31, 2012	Quarter			Quarter			Quarter			Quarter
Total revenue	$	—		$	—		$	—		$	—
Operating expenses		4,769			4,380			6,054			8,628
Interest and other expense, net		(61	)		(146	)		(195	)		(197	)
Loss from continuing operations		(4,830	)		(4,526	)		(6,249	)		(8,825	)
Discontinued operations		(91	)		(43	)		128			1,088
Net loss		(4,921	)		(4,569	)		(6,121	)		(7,737	)
Basic and diluted net loss per share:
Loss from continuing operations	$	(0.02	)	$	(0.02	)	$	(0.02	)	$	(0.03	)
Net loss		(0.02	)		(0.02	)		(0.02	)	$	(0.03	)

	First			Second			Third			Fourth
Year Ended December 31, 2011	Quarter			Quarter			Quarter			Quarter
Total revenue	$	395		$	251		$	—		$	—
Operating expenses		1,710			1,791			4,089			4,118
Interest and other expense, net		(1	)		(263	)		(62	)		(47	)
Loss from continuing operations		(1,316	)		(1,803	)		(4,151	)		(4,165	)
Discontinued operations		(103	)		(129	)		(51	)		(96	)
Net loss		(1,419	)		(1,932	)		(4,202	)		(4,261	)
Basic and diluted net loss per share:
Loss from continuing operations	$	(0.03	)	$	(0.05	)	$	(0.02	)	$	(0.02	)
Net loss		(0.04	)		(0.05	)		(0.02	)		(0.02	)

NOTE 4 PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Property, Plant and Equipment [Abstract]
Leasehold improvements	$ 1,346	$ 1,338
Furniture and equipment	4,036	3,302
Construction-in-progress	777	718
Total property and equipment	6,159	5,358
Accumulated depreciation	(4,407)	(4,283)
Property and equipment, net	$ 1,752	$ 1,075

- Definition

The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement.

+ References + Details

NOTE 5 ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Payables and Accruals [Abstract]
Project costs	$ 651	$ 555
Accrued compensation	401	555
Other	698	388
Total	$ 1,750	$ 1,498

- Definition

Carrying value as of the balance sheet date of obligations incurred through that date and payable arising from transactions not otherwise specified in the taxonomy. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

NOTE 7 COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Dec. 31, 2012 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Future minimum lease payments due in one year	$ 951
Future minimum lease payments due in two years	739
Future minimum lease payments due in three years	744
Future minimum lease payments due in four years	751
Future minimum lease payments due in five years	709
Total	$ 3,894

NOTE 8 STOCKHOLDERS' EQUITY - Option valuation assumptions (Details) - Y	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Stock options
Expected term (years):	5.51	5.00	6.00
Risk-free interest rate:	0.80%	1.60%	2.60%
Volatility:	106.00%	106.00%	164.00%
Employee Stock Purchase Plan
Expected term (years):	0.49	0.50	0.50
Risk-free interest rate:	0.20%	0.80%	0.20%
Volatility:	0.80%	142.00%	92.00%

NOTE 8 STOCKHOLDERS' EQUITY - Stock-based compensation expense (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Operating expenses:
Research and development	$ 1,585	$ 819	$ 398
General and administrative	4,147	1,071	1,351
Total stock-based compensation expense	$ 5,732	$ 1,890	$ 1,749
Impact on basic and diluted net loss per common share	$ 0.02	$ 0.02	$ 0.04

NOTE 8 STOCKHOLDERS' EQUITY - Option activity (Details)	12 Months Ended
NOTE 8 STOCKHOLDERS' EQUITY - Option activity (Details)	Dec. 31, 2012 USD ($) Y $ / shares shares	Dec. 31, 2011 $ / shares shares	Dec. 31, 2010 $ / shares shares
Equity [Abstract]
Outstanding, beginning balance, shares \| shares	50,106,287	3,217,240	3,092,417
Granted, shares \| shares	37,485,000	48,070,000	1,087,700
Exercised, shares \| shares			(37,786)
Expired and forfeited, shares \| shares	(1,308,779)	(1,180,953)	(925,091)
Outstanding, ending balance, shares \| shares	86,282,508	50,106,287	3,217,240
Options exercisable at year end, shares \| shares	22,646,940	6,740,497	1,316,567
Options vested or expected to vest at year end, shares \| shares	85,471,879	49,434,997
Shares available for future grant at year end, shares \| shares	20,471,897	44,261,608	2,039,549
Outstanding, weighted average exercise price, beginning \| $ / shares	$ 0.31	$ 1.49	$ 1.91
Granted, weighted average exercise price \| $ / shares	0.58	0.26	1.45
Exercised, weighted average exercise price \| $ / shares			1.24
Expired and forfeited, weighted average exercise price \| $ / shares	0.74	1.63	2.85
Outstanding, weighted average exercise price, ending \| $ / shares	0.42	0.31	1.49
Options exercisable at year end, weighted average exercise price \| $ / shares	0.38	0.53	1.72
Options vested or expected to vest, weighted average exercise price \| $ / shares	$ 0.42	0.31
Outstanding, weighted averge remaining contractual term (in years) \| Y	8.2
Options exercisable at year end, weighted averge remaining contractual term (in years) \| Y	7.13
Options vested or expected to vest, weighted averge remaining contractual term (in years) \| Y	8.2
Weighted-average fair value of stock options granted during the year \| $ / shares	$ 0.46	$ 0.21	$ 1.39
Outstanding at end of year, intrinsic value \| $	$ 14,555,918
Options exercisable at year end, intrinsic value \| $	5,137,054
Options vested or expected to vest, intrinsic value \| $	$ 14,466,053

NOTE 8 STOCKHOLDERS' EQUITY - Stock options outstanding (Details)	Dec. 31, 2012 Y $ / shares shares	Dec. 31, 2011 $ / shares shares	Dec. 31, 2010 $ / shares shares	Dec. 31, 2009 $ / shares shares
Options outstanding \| shares	86,282,508	50,106,287	3,217,240	3,092,417
Weighted- Average Remaining Contractual Life (Years) (options outstanding) \| Y	8.2
Weighted- Average Exercise Price (options outstanding) \| $ / shares	$ 0.42	$ 0.31	$ 1.49	$ 1.91
Options Exercisable \| shares	22,646,940	6,740,497	1,316,567
Weighted- Average Exercise Price (options exercisable) \| $ / shares	$ 0.38	$ 0.53	$ 1.72
Range of exercise price ($0.19 - $11.756)
Options outstanding \| shares	86,282,508
Weighted- Average Remaining Contractual Life (Years) (options outstanding) \| Y	8.2
Weighted- Average Exercise Price (options outstanding) \| $ / shares	$ 0.42
Options Exercisable \| shares	22,646,940
Weighted- Average Exercise Price (options exercisable) \| $ / shares	$ 0.38
Range of exercise price ($0.19 - $0.19)
Options outstanding \| shares	162,500
Weighted- Average Remaining Contractual Life (Years) (options outstanding) \| Y	5.61
Weighted- Average Exercise Price (options outstanding) \| $ / shares	$ 0.19
Options Exercisable \| shares	91,667
Weighted- Average Exercise Price (options exercisable) \| $ / shares	$ 0.19
Range of exercise price ($0.26 - $0.26)
Options outstanding \| shares	47,022,303
Weighted- Average Remaining Contractual Life (Years) (options outstanding) \| Y	7.33
Weighted- Average Exercise Price (options outstanding) \| $ / shares	$ 0.26
Options Exercisable \| shares	17,200,939
Weighted- Average Exercise Price (options exercisable) \| $ / shares	$ 0.26
Range of exercise price ($0.32 - $0.53)
Options outstanding \| shares	11,285,000
Weighted- Average Remaining Contractual Life (Years) (options outstanding) \| Y	9.71
Weighted- Average Exercise Price (options outstanding) \| $ / shares	$ 0.47
Options Exercisable \| shares	546,875
Weighted- Average Exercise Price (options exercisable) \| $ / shares	$ 0.34
Range of exercise price ($0.58 - $0.61)
Options outstanding \| shares	2,046,436
Weighted- Average Remaining Contractual Life (Years) (options outstanding) \| Y	4.93
Weighted- Average Exercise Price (options outstanding) \| $ / shares	$ 0.59
Options Exercisable \| shares	1,764,145
Weighted- Average Exercise Price (options exercisable) \| $ / shares	$ 0.59
Range of exercise price ($0.62 - $0.62)
Options outstanding \| shares	10,400,000
Weighted- Average Remaining Contractual Life (Years) (options outstanding) \| Y	9.79
Weighted- Average Exercise Price (options outstanding) \| $ / shares	$ 0.62
Options Exercisable \| shares
Weighted- Average Exercise Price (options exercisable) \| $ / shares
Range of exercise price ($0.63 - $0.63)
Options outstanding \| shares	10,000,000
Weighted- Average Remaining Contractual Life (Years) (options outstanding) \| Y	9.46
Weighted- Average Exercise Price (options outstanding) \| $ / shares	$ 0.63
Options Exercisable \| shares	1,708,334
Weighted- Average Exercise Price (options exercisable) \| $ / shares	$ 0.63
Range of exercise price ($0.64 - $6.96)
Options outstanding \| shares	5,355,769
Weighted- Average Remaining Contractual Life (Years) (options outstanding) \| Y	8.59
Weighted- Average Exercise Price (options outstanding) \| $ / shares	$ 0.84
Options Exercisable \| shares	1,324,480
Weighted- Average Exercise Price (options exercisable) \| $ / shares	$ 1.36
Range of exercise price ($7.00 - $7.00)
Options outstanding \| shares	5,000
Weighted- Average Remaining Contractual Life (Years) (options outstanding) \| Y	0.67
Weighted- Average Exercise Price (options outstanding) \| $ / shares	$ 7.00
Options Exercisable \| shares	5,000
Weighted- Average Exercise Price (options exercisable) \| $ / shares	$ 7.00
Range of exercise price ($9.80 - $9.80)
Options outstanding \| shares	3,000
Weighted- Average Remaining Contractual Life (Years) (options outstanding) \| Y	1.04
Weighted- Average Exercise Price (options outstanding) \| $ / shares	$ 9.80
Options Exercisable \| shares	3,000
Weighted- Average Exercise Price (options exercisable) \| $ / shares	$ 9.80
Range of exercise price ($11.756 - $11.756)
Options outstanding \| shares	2,500
Weighted- Average Remaining Contractual Life (Years) (options outstanding) \| Y	1.40
Weighted- Average Exercise Price (options outstanding) \| $ / shares	$ 11.76
Options Exercisable \| shares	2,500
Weighted- Average Exercise Price (options exercisable) \| $ / shares	$ 11.76

NOTE 8 STOCKHOLDERS' EQUITY - Warrants outstanding (Details)	12 Months Ended
	Dec. 31, 2012 $ / shares shares
Number of Shares Exercisable	84,377,275
Total warrants outstanding at December 31, 2012
Number of Shares Exercisable	84,377,275
Exercise Price \| $ / shares	$ 0.21
Issued to private placement investors in October 2009
Number of Shares Exercisable	3,977,270
Exercise Price \| $ / shares	$ 0.88
Expiration Date	Jan. 07, 2015
Issued to private placement investors in July 2011
Number of Shares Exercisable	80,000,005
Exercise Price \| $ / shares	$ 0.18
Expiration Date	Jul. 01, 2016
Other
Number of Shares Exercisable	400,000
Exercise Price \| $ / shares	$ 0.69
Expiration Date	Aug. 01, 2015

NOTE 8 STOCKHOLDERS' EQUITY - Common shares reserved (Details) - shares	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
No. of Shares
Issuance upon exercise of outstanding stock options	86,282,508	50,106,287	3,217,240	3,092,417
Issuance of future grants under stock option plans	20,471,897	44,261,608	2,039,549
Issuance of future grants under employee stock purchase plan	445,701
Issuance of common stock related to convertible notes	197,686,842
Issuance upon exercise of warrants	84,377,275
Total	389,264,223

NOTE 9 NET LOSS PER SHARE (Details) - shares	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
NET LOSS PER SHARE
Options outstanding	86,282,508	50,106,287	3,217,240	3,092,417
Number of unvested restricted stock awards outstanding			319,000
Warrants outstanding	84,377,000	84,127,000	3,977,000
Common stock underlying convertible notes outstanding	118,542,000	39,331,000

NOTE 10 DISCONTINUED OPERATIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Discontinued Operations and Disposal Groups [Abstract]
Change in estimates for guarantees	$ 1,082	$ (379)	$ (150)

NOTE 12 INCOME TAXES - Deferred tax assets (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Deferred Tax Assets:
Net operating loss carryforwards	$ 13,900	$ 6,700	$ 22,800
Research credits	2,300	2,100	3,200
Stock compensation expense	2,600	600	900
Other	400	900	700
Total deferred tax assets	19,200	10,300	27,600
Valuation allowance	(19,200)	(10,300)	(27,600)
Net deferred tax assets

- Definition

Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences from share-based compensation.

+ References + Details

- Definition

Amount of an unrecognized tax benefit that is directly related to a position taken in a tax year that results in a net operating loss carryforward. This amount is presented as a reduction of the related deferred tax asset in the balance sheet if that deferred tax asset is not used. This amount is presented separately from the deferred tax asset for a net operating loss carryforward if this unrelated tax benefit is associated with a different tax position.

+ References + Details

NOTE 12 INCOME TAXES - Provision (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Tax Disclosure [Abstract]
Tax benefit computed at 34%	$ (7,937)	$ (4,017)	$ (2,498)
Stock compensation expense	176	148	173
Other	210	70	84
AMT credit
NOL not benefitted	7,551	3,799	2,241
Tax Provision (Benefit)

- Definition

The component of income tax expense for the period representing the increase (decrease) in the entity's deferred tax assets and liabilities pertaining to continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Deferred Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6510177

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.7)
-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 289
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Subsection 7

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

NOTE 12 INCOME TAXES - Unrecognized tax benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Unrecognized tax benefit:
At the beginning of the period	$ 120	$ 120	$ 120
Gross increases – tax positions in the current period
Gross decreases – tax positions in the current period
At the end of the period	$ 120	$ 120	$ 120

NOTE 14 QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) - 2012 (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Quarterly Financial Information Disclosure [Abstract]
Total revenue							$ 251	$ 395		$ 646	$ 1,301
Operating expenses	8,628	6,054	4,380	4,769	4,118	4,089	1,791	1,710	23,831	11,708	11,235
Interest and other expense, net	(197)	(195)	(146)	(61)	(47)	(62)	(263)	(1)	(599)	(373)	2,738
Loss from continuing operations	(8,825)	(6,249)	(4,526)	(4,830)	(4,165)	(4,151)	(1,803)	(1,316)	(24,430)	(11,435)	(7,196)
Discontinued operations	1,088	128	(43)	(91)	(96)	(51)	(129)	(103)	1,082	(379)	(150)
Net loss	$ (7,737)	$ (6,121)	$ (4,569)	$ (4,921)	$ (4,261)	$ (4,202)	$ (1,932)	$ (1,419)	$ (23,348)	$ (11,814)	$ (7,346)
Basic and diluted net loss per share:
Loss from continuing operations	$ (0.03)	$ (0.02)	$ (0.02)	$ (0.02)	$ (0.02)	$ (0.02)	$ (0.05)	$ (0.03)	$ (0.10)	$ (0.10)	$ (0.18)
Net loss	$ (0.03)	$ (0.02)	$ (0.02)	$ (0.02)	$ (0.02)	$ (0.02)	$ (0.05)	$ (0.04)	$ (0.10)	$ (0.10)	$ (0.19)

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Accounting Policies [Abstract]
Accumulated deficit	$ (183,587)	$ (160,239)
Proceeds from common stock financing, net of issuance costs	50,491
Proceeds from unit financing, net of issuance costs		22,772
Proceeds from convertible note financing, net of issuance costs	3,000	1,312
Cash and cash equivalents	53,506	17,974	2,109	$ 7,593
Comprehensive loss	$ (23,348)	$ (11,814)	$ (7,346)

- Definition

Amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Also includes short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Excludes cash and cash equivalents within disposal group and discontinued operation.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Cash
-URI http://asc.fasb.org/extlink&oid=6506951

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section 45
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6361293&loc=d3e6676-107765

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3044-108585

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Cash Equivalents
-URI http://asc.fasb.org/extlink&oid=6507016

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.1)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 1
-Article 5

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 7, 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 7
-Footnote 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 8, 9
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References + Details

NOTE 4 PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 197,000	$ 179,000	$ 227,000

NOTE 6 CONVERTIBLE NOTES TO RELATED PARTIES (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended			18 Months Ended	21 Months Ended
	Jul. 31, 2011	Jun. 30, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2012	Dec. 31, 2012	Apr. 30, 2011
Interest expense relating to the amortization of debt discount			$ 389	$ 103
Carrying value of the notes outstanding			492	103		$ 492	$ 492
Securities purchase agreement, April 2011
Aggregate principal amount of notes authorized under private placement								$ 4,500
Principal amount of notes purchased at initial closing of private placement								1,500
Purchase option for additional notes under private placement								$ 3,000
Number of shares that can be converted per $1,000 of convertible note principal and accrued interest								25,000
Amount of convertible debt principal and interest that can be exchanged for twenty five thousand common shares								$ 1
Gross proceeds, issuance of notes			$ 3,000	1,500
Net proceeds, issuance of notes				1,300
Common shares issuable for convertible debt, $4.5 million principal			112,500,000			112,500,000	112,500,000
Debt instrument interest rate		20.00%				6.00%
Beneficial ownership threshold percentage of the Company's outstanding common stock after conversion of Notes							9.99%
Notice period associated with beneficial ownership percentage limitation convertible notes							61 days
Common shares registered for resale in connection with convertible notes	69,600,000
Term of the Notes							10 years
Paid-in kind interest			$ 168
Interest expense relating to the stated rate of the Notes			216	97
Interest expense relating to the amortization of debt discount			389	$ 103
Carrying value of the notes outstanding			492			$ 492	$ 492
Principal amount of the notes outstanding			4,742			4,742	4,742
Debt discount			4,250			4,250	4,250
Accrued interest on the principal balance			$ 71			$ 71	$ 71

NOTE 7 COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Commitments and Contingencies Disclosure [Abstract]
Rental expense for facilities and equipment	$ 580,000	$ 591,000	$ 555,000

NOTE 8 STOCKHOLDERS' EQUITY (Details Narrative)	1 Months Ended		2 Months Ended	4 Months Ended	12 Months Ended						56 Months Ended	61 Months Ended
NOTE 8 STOCKHOLDERS' EQUITY (Details Narrative)	Jul. 31, 2011 USD ($)	Jun. 30, 2011 USD ($) $ / shares shares	Jul. 31, 2011 USD ($)	Apr. 30, 2008	Dec. 31, 2012 USD ($) $ / shares shares	Dec. 31, 2011 USD ($) $ / shares shares	Dec. 31, 2010 USD ($) $ / shares shares	Dec. 31, 2009 USD ($) $ / shares shares	Dec. 31, 2008 shares	Dec. 31, 2007 shares	Dec. 31, 2012 USD ($) $ / shares shares	Dec. 31, 2012 USD ($) $ / shares shares	Jun. 29, 2011 shares
Authorized common stock		1,500,000,000			1,500,000,000	1,500,000,000					1,500,000,000	1,500,000,000	100,000,000
Par value \| $ / shares		$ 0.0100			$ 0.01	$ 0.01					$ 0.01	$ 0.01
common shares reserved for issuance (under the Plan)					445,701						445,701	445,701
Total unrecognized compensation expense related to unvested stock options \| $					$ 21,100,000						$ 21,100,000	$ 21,100,000
Weighted average period over which expense related to unvested stock options is expected to be recognized					2.9
Cash received from option exercises \| $							$ 47,000
Total intrinsic value of options exercised \| $							5,000
Compensation cost for the restricted stock awards issued to employees and directors \| $						$ 98,000	$ 385,000
2012 Private Placement
Number of shares sold					102,000,000
Terms of failure to keep any registration statements continuously effective					If the Company fails to keep the registration statements continuously effective for a designated time (with limited exceptions), the Company may be obligated to pay to each holder of the 2012 Shares an amount equal to 1.5% per month of the aggregate purchase price of the unregistered 2012 Shares held by such holder, capped at a total penalty of 9.0%.
Gross proceeds from private placement \| $	$ 53,600,000
Net proceeds from private placement \| $	50,500,000
2011 Private Placement
Number of shares sold		160,000,006
Number of underlying common shares relating to warrants sold		80,000,005
Warrant exercise price \| $ / shares		$ 0.18
Terms of failure to keep any registration statements continuously effective		If the Company fails to keep the registration statement continuously effective for a designated time (with limited exceptions), the Company may be obligated to pay to the holders of the Registrable Securities liquidated damages in an amount equal to 1.0% per month of such holder's pro rata interest in the total purchase price of the Private Placement, capped at a total penalty of 6.0%.
Gross proceeds from private placement \| $	$ 3,700,000	$ 20,300,000	$ 24,000,000
Terms of purchase (Private Placement)		For each share purchased, the investors received one Warrant to purchase 0.5 shares of common stock (together with a Share, a Unit), at a purchase price of $0.15 per Unit. The Warrants were immediately exercisable and expire on the fifth anniversary of the closing date of July 1, 2011. The Warrants may be exercised for cash only or, if a registration statement is not then effective and available for the resale of the shares of common stock issuable upon exercise of the Warrants, by surrender of such Warrant, or a portion of such Warrant, by way of cashless exercise. There is no right to exercise the Warrants to the extent that after giving effect to such exercise the holder would beneficially own in excess of 9.99% of our outstanding shares of common stock or such other limit as may be designated by any particular purchaser. Each holder of the Warrants can amend or waive the foregoing limitation by written notice to the Company, with such waiver taking effect only upon the expiration of a 61-day notice period.
Payments of stock issuance costs \| $			1,200,000
Net proceeds from private placement \| $			$ 22,800,000
2009 Private Placement
Number of shares sold								7,954,543
Share price \| $ / shares								$ .88
Number of underlying common shares relating to warrants sold								3,977,270
Warrant exercise price \| $ / shares								$ 0.88
Price per underlying share, warrants \| $ / shares								$ 0.125
Terms of additional rights								The purchasers had the right to purchase up to an additional 5,165,286 shares at $0.97 per share prior to May 14, 2010 and paid $0.125 per underlying share for the right to purchase such additional shares.
Proceeds, net of issuance costs \| $								$ 7,900,000
Number of shares sold, covered by Form S-3 Registration Statement							421,926	7,532,617
Number of underlying common shares of warrants sold, covered by Form S-3 Registration Statement							3,977,270
Terms of failure to keep any registration statements continuously effective								If we fail to keep any registration statements continuously effective, we may be obligated to pay to the holders of the shares and warrants liquidated damages in the amount of 1% per month of the purchase price for the shares and warrants, up to a maximum cap of 8% of such purchase price.
2007 Equity Incentive Plan
Increase in the maximum number of shares of common stock available for grant		90,000,000					2,000,000
Number of shares of common stock authorized for issuance					95,000,000						95,000,000	95,000,000
2002 Stock Incentive Plan
Number of shares of common stock authorized for issuance					425,000						425,000	425,000
1997 Employee Stock Purchase Plan
Increase in the number of common shares reserved for issuance		500,000						200,000		100,000		1,000,000
Terms of Employee Stock Purchase Plan					Under the terms of the Purchase Plan, employees can elect to have up to a maximum of 10% of their base earnings withheld to purchase our common stock. The purchase price of the stock is 85% of the lower of the closing prices for our common stock on: (i) the first trading day in the enrollment period, as defined in the Purchase Plan, in which the purchase is made, or (ii) the purchase date. The length of the enrollment period may not exceed a maximum of six months.
Length of all offering periods				24 months							6 months
Percentage of employees who participated in the Plan					16.00%
Total shares issued under the plan					85,475	77,982	48,921
Weighted-average fair value per share of purchase rights granted \| $ / shares					$ 0.26	$ 0.20	$ 0.30
Weighted-average exercise price per share of the purchase rights exercised \| $ / shares					$ 0.26	$ 0.20	$ 0.61
common shares reserved for issuance (under the Plan)					445,701	531,176	109,158				445,701	445,701
Non-qualified stock plan
Increase in the maximum number of shares of common stock available for grant									1,000,000	1,000,000
Number of shares of common stock authorized for issuance					2,062,500						2,062,500	2,062,500

NOTE 10 DISCONTINUED OPERATIONS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended			84 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Jun. 30, 2007
Discontinued Operations and Disposal Groups [Abstract]
Gross profit guaranty expense				$ 944
Revenue relating to discontinued operations	$ 0	$ 0	$ 0
Basic and diluted loss per common share from discontinued operations	$ 0	$ 0	$ 0
Accrued disposition costs	$ 0	$ 1,082	$ 703

NOTE 11 DEFINED CONTRIBUTION PLAN (Details Narrative) - USD ($)	12 Months Ended			36 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2012
Compensation and Retirement Disclosure [Abstract]
Description of 401(k) plan				We have a defined contribution plan (401k) covering substantially all of our employees. In the past three calendar years, we made matching cash contributions equal to 50% of each participant’s contribution during the plan year up to a maximum amount equal to the lesser of 3% of each participant’s annual compensation or $7,500 for the year 2012 and $7,350 for the years 2011 and 2010, and such amounts were recorded as expense in the corresponding years. We may also contribute additional discretionary amounts to the defined contribution plan as we may determine.
Contributions to 401(k) plan	$ 71,000	$ 46,000	$ 51,000

- Definition

Description of the terms and benefits provided by the employer's defined contribution plans. A defined contribution plan provides benefits in return for services rendered, provides an individual account for each participant, and has terms that specify how contributions to the individual's account are to be determined rather than the amount of benefits the individual is to receive. Under a defined contribution pension plan, the benefits a participant will receive depend solely on the amount contributed to the participant's account, the returns earned on investments of those contributions, and forfeitures of other participants' benefits that may be allocated to such participant's account. A description of the plan(s) including employee groups covered, the basis for determining contributions, and the nature and effects of significant matters affecting comparability of information for all periods presented.

+ References + Details

NOTE 12 INCOME TAXES (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Tax Disclosure [Abstract]
Valuation allowance increase/(decrease)	$ 8,900	$ (17,300)	$ 700
Federal NOL carryforwards	35,100
California NOL carryforwards	34,100
Federal and research and development tax credit carryforwards
California research and development tax credit carryforwards	3,400
Federal NOL carryforwards subject to annual limitations	12,200
California NOL carryforwards subject to annual limitations	$ 10,900

- Definition

Amount before allocation of valuation allowances of deferred tax asset attributable to deductible state and local operating loss carryforwards.

+ References + Details

NOTE 13 SIGNIFICANT AGREEMENTS (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Jun. 30, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2007	Dec. 31, 2006
Revenue related to development services			$ 600,000	$ 1,300,000
UpfrontLicenseFeeMember
Revenue related to development services	$ 100,000
Sale of rights to royalties on sales of Retin-A Micro® and Carac®
Revenue from sale						$ 30,000,000
Proceeds				$ 2,500,000	$ 2,500,000	$ 25,000,000