Quarterly report pursuant to Section 13 or 15(d)

Subsequent Event

Subsequent Event

9 Months Ended

Sep. 30, 2016

16.	Subsequent Events

CRG Litigation: CRG’s objection to the supersedeas was heard on October 31, 2016, during which the Texas court ruled that an additional $500,000 should be placed in the pledged collateral account within ten days of the ruling.

Also in October 2016, a revised temporary restraining order was issued by the Ohio court, allowing the Company to receive 100% of the receivables due from Cardinal Health, with an additional $1.0 million deposited in the pledged collateral account by the Company as a bond. Further, the Ohio court ruled that the Company remain current on its quarterly interest payments to CRG. On October 7, 2016 the Company paid $1.3 million to CRG to cover the third quarter 2016 interest payment. The $1.0 million previously deposited by Cardinal Health in the Court’s registry as a bond will also be transferred to the pledged collateral account.

FTI Consulting, Inc. Litigation: On October 11, 2016, the Company was served with a Complaint filed in the Supreme Court of the State of New York, County of New York, alleging damages of at least $782,601.51 arising from investigative and consulting services that Plaintiff alleges it was retained by the Company to perform. The Company disputes the amount claimed to be due, as well as whether the services performed were properly authorized, and intends to vigorously defend the action.