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NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2013
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]  
Estimates related to gross-to-net sales adjustments for product
Below is a table showing gross sales and net sales by quarter for the years ended December 31, 2013 and 2012.
 
(in thousands)
Three months ended
March 31, 2013
Three months ended
June 30, 2013
Three months ended
Sept 30, 2013
Three months ended
Dec 31, 2013
Twelve months ended
Dec 31, 2013
   
Gross sales
$ 1,255
$  508
$     -
$      -
$  1,763
   
Cash discounts
       10
      36
       -
       5
         51
   
Contract discounts
       83
      92
       -
       8
       183
   
Net sales
$ 1,162
$  380
$     -
$   (13)
$  1,529
   
               
               
 
Three months ended
March 31, 2012
Three months ended
June 30, 2012
Three months ended
Sept 30, 2012
Three months ended
Dec 31, 2012
Twelve months ended
Dec 31, 2012
   
Gross sales
$  577
$  712
$    877
$   1,048
$  3,214
   
Cash discounts
        5
      13
          7
           9
         34
   
Contract discounts
       18
      84
         89
      124
        315
   
Net sales
$  554
$  615
$    781
$     915
$   2,865
   
         
Basic and diluted net income (loss) per share
Basic and diluted net income (loss) per share were determined as follows:

(in thousands, except share and per share amounts)
      
     
   
For the year ended December 31,
 
   
2013
  
2012
 
        
Net income (loss)
 $1,551  $(12,531)
Weighted average shares outstanding
  25,243,160   24,178,768 
Basic net income (loss) per common share
 $0.05  $(0.52)
          
Net income (loss)
 $1,551  $(12,531)
Weighted average shares outstanding
  25,243,160   24,178,768 
Effect of dilutive options and warrants
  230,486   - 
Weighted average shares outstanding
  assuming dilution
  25,473,646   24,178,768 
Diluted net income (loss) per common share
 $0.06  $(0.52)
Antidilutive securities excluded from computation of earnings per share
We did not include the following securities in the table below in the computation of diluted net income (loss) per common share because the securities were anti-dilutive during the periods presented:

   
For the year ended December 31,
 
   
2013
  
2012
 
        
Warrants
  31,879,063   35,733,943 
Stock options
  919,200   2,703,284 
Preferred stock Series A
  58,067,234   58,267,234 
Preferred stock Series B
  20,000,000   20,000,000 
Total
  110,865,497   116,704,461 
Stock options assumptions
During 2013 and 2012, no stock options and 1,235,000 stock options, respectively, were granted under the 2005 Equity Incentive Plan. Assumptions for 2012 are:

 
   2012  
Expected volatility assumption was based upon a combination of historical stock price volatility measured on a weekly basis and is considered a reasonable indicator of expected volatility.
 
 
98%
Risk-free interest rate assumption is based upon U.S. Treasury bond interest rates appropriate for the term of the our employee stock options.
 
 
0.45%
Dividend yield assumption is based on our history and expectation of dividend payments.
 
 
None
Estimated expected term (average of number years) is based on the simplified method as prescribed by SAB 107/110 as we do not have sufficient information to calculate an expected term.
 
5.5 years
Stock-based compensation allocation
The following table summarizes stock-based compensation for the years ended December 31, 2013 and 2012 which was allocated as follows (in thousands):

   
Year ended
December 31, 2013
  
Year ended
December 31, 2012
 
Research and development
 $31  $93 
General and administrative
  408   297 
    Stock-based compensation expense included in operating expense
  439   390 
          
Total stock-based compensation expense
  439   390 
Tax benefit
  -   - 
    Stock-based compensation expense, net of tax
 $439  $390