<SEC-DOCUMENT>0001387131-16-008753.txt : 20170307
<SEC-HEADER>0001387131-16-008753.hdr.sgml : 20170307
<ACCEPTANCE-DATETIME>20161229180535
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001387131-16-008753
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20161229

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TherapeuticsMD, Inc.
		CENTRAL INDEX KEY:			0000025743
		STANDARD INDUSTRIAL CLASSIFICATION:	PHARMACEUTICAL PREPARATIONS [2834]
		IRS NUMBER:				870233535
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		6800 BROKEN SOUND PARKWAY NW
		STREET 2:		THIRD FLOOR
		CITY:			BOCA RATON
		STATE:			FL
		ZIP:			33487
		BUSINESS PHONE:		561-961-1911

	MAIL ADDRESS:	
		STREET 1:		6800 BROKEN SOUND PARKWAY NW
		STREET 2:		THIRD FLOOR
		CITY:			BOCA RATON
		STATE:			FL
		ZIP:			33487

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AMHN, Inc.
		DATE OF NAME CHANGE:	20090930

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CROFF ENTERPRISES INC
		DATE OF NAME CHANGE:	19970915

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CROFF OIL CO
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
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<SEQUENCE>1
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<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin: 0"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="margin: 0"></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>TherapeuticsMD, Inc.</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>6800 Broken Sound Parkway NW, Third Floor</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Boca Raton, Florida 33487</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">December
29, 2016</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>VIA
EDGAR SUBMISSION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Mr.
Jim B. Rosenberg</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Senior
Assistant Chief Accountant</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Division
of Corporation Finance</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Securities
and Exchange Commission</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">100
F Street, NE</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Washington,
DC 20549</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 -11pt 0.5in; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Re:&#9;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>TherapeuticsMD,
Inc.</B><BR>
<B>Form 10-K for the Fiscal Year Ended December 31, 2015</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Filed
February 26, 2016</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Form
10-Q for Quarterly Period Ended September 30, 2016</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Filed
November 4, 2016</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>File
No. 001-00100</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 6pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dear
Mr. Rosenberg:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
behalf of TherapeuticsMD, Inc., a Nevada corporation (the &ldquo;<U>Company</U>&rdquo; or &ldquo;<U>we</U>&rdquo;), this letter
is in response to the comments of the staff (the &ldquo;<U>Staff</U>&rdquo;) of the United States Securities and Exchange Commission
(the &ldquo;<U>Commission</U>&rdquo;) contained in its letter to the Company, dated December 15, 2016, regarding the Company&rsquo;s
Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the Commission on February 26, 2016 (the &ldquo;<U>Form
10-K</U>&rdquo;), and the Company&rsquo;s Quarterly Report on Form 10-Q for the period ended September 30, 2016, filed with the
Commission on November 4, 2016 (the &ldquo;<U>Form 10-Q</U>&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
your convenience, we have set forth the text of each of the Staff&rsquo;s comments in bold, followed in each case by the Company&rsquo;s
response thereto.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Form
10-Q for the Quarterly Period Ended September 30, 2016</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Notes
to Unaudited Consolidated Financial Statements</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Note
14: Business Concentrations, page 19</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 -11pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>1.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Please
tell us the name of each of the customers you identify as customers A, B, C and D. In addition, although ASC 280-10-50-42 does
not require disclosure of their identity, please represent to us that in future Forms 10-K you will name each such customer in
the Business section as required by Item 101(c)(1)(vii) of Regulation S-K. </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Company&rsquo;s
Response:</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">The
customers that are identified as customers A, B, C and D in Note 14 to the financial statements contained in the Form 10-Q for
the period ended September 30, 2016 are: Woodstock Pharmaceutical and Compounding (&ldquo;<U>Woodstock</U>&rdquo;), Due West Pharmacy,
Inc. (&ldquo;<U>Due West</U>&rdquo;), Medical Center Pharmacy and Pharmacy Innovations. The Company represents to the Staff that,
as required by Item 101(c)(1)(vii) of Regulation S-K, in future Forms 10-K the Company will name each customer if sales to the
customer are made in an aggregate amount equal to 10 percent or more of the Company&rsquo;s consolidated revenues and the loss
of such customer would have a material adverse effect on the Company and its subsidiaries taken as a whole.</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 -11pt; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Please
address the following comments related to your write-off of $2.2 million in accounts receivable balances during the three months
ended September 30, 2016:</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 -11pt 0.5in; text-align: justify; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-align: justify; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Tell us the identity of the two former customers whose balances you wrote-off.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Company&rsquo;s
Response:</I></FONT></P>

<P STYLE="font: 10pt/107% Times New Roman, Times, Serif; margin: 0 0 8pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
identity of the two former customers whose accounts receivable balances of approximately $2.2 million the Company wrote-off is
Woodstock and Due West.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 -11pt 0.5in; text-align: justify; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-align: justify; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Tell us by quarter when you recognized the revenue underlying the balances you wrote-off.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Company&rsquo;s
Response:</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
write-off of accounts receivable balance of $2.2 million for both customers included approximately $0.8 million, $1.3 million
and $0.1 million related to revenue recognized in the first, second and third quarters of 2016, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 -11pt 0.5in; text-align: justify; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-align: justify; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Tell us the total amount of sales you made to each of these customers and the period when you began making sales to each.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Company&rsquo;s
Response:</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company began making sales to Woodstock in the second quarter of 2013; the total amount of sales made to this customer by the
Company was approximately $16.9 million from such time through the third quarter of 2016. The Company began making sales to Due
West. in the third quarter of 2014; the total amount of sales made to this customer by the Company was approximately $6.7 million
from such time through the third quarter of 2016.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 -11pt 0.5in; text-align: justify; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-align: justify; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Tell us whether the revenue underlying these write-offs was recognized related to sales under special terms.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Company&rsquo;s
Response:</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
revenue underlying the indicated write-offs was recognized by the Company related to sales under standard terms, not special terms.</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 -11pt 0.5in; text-align: justify; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-align: justify; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Tell us why you characterize the entire $2.2 million write-off as an other operating expense in your MD&amp;A disclosure in
the first paragraph on page 26 when it is apparent that your allowance for doubtful accounts declined from $529.3 thousand at
June 30, 2016 to $113.0 thousand at September 30, 2016.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Company&rsquo;s
Response:</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company characterized the entire $2.2 million write-off of the Woodstock and Due West accounts receivable balances as an other
operating expense in the MD&amp;A disclosure in order to explain to readers the scope of one of the contributing events that resulted
in an increase in other operating expenses. The characterization refers to the event based on the total amount of the receivables
that was written off. The actual expense related to the write-off of the Woodstock and Due West accounts receivable balances during
the three months ended September 30, 2016 was approximately $1.7 million because the Company applied previously established allowances
of approximately $0.5 million against the accounts receivable balances prior to the write-off.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 -11pt 0.5in; text-align: justify; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-align: justify; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Tell us why you wrote these balances off during the third quarter of 2016 as opposed to a prior period and why you did not
provide for these write-offs in your allowance for doubtful accounts in an earlier period.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Company&rsquo;s
Response:</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company performs an analysis of its outstanding accounts receivable on a quarterly basis to determine adjustments, if any, to
its allowance for doubtful accounts. This analysis considers several factors, which include the customer&rsquo;s payment history,
the length of time of outstanding balances, available information about the customer&rsquo;s financial condition and current or
expected market trends that might impact the customer&rsquo;s ability to pay. Both Woodstock and Due West are relatively small
owner-managed pharmacies and share a similar amount of collection risk. The Company identified the following factors during the
third quarter of 2016 that caused management to believe these customers&rsquo; respective accounts receivable balances were at
risk and required a full reserve against their outstanding balances:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 -11pt 0.5in; text-align: justify; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The last payments on account received from each of these customers prior to the filing of the Form 10-Q were in July 2016, which
amounted to approximately $1 million in the aggregate.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 -11pt 0.5in; text-align: justify; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Unlike prior quarters, when the Company collected payments post-quarter-end but before its quarterly or annual report, as applicable,
was filed, there were no payments made from Woodstock or Due West subsequent to September 30, 2016 but before filing the Form
10-Q on November 4, 2016 and the majority of the outstanding accounts receivable related to these customers as of the date of
the filing was greater than 120 days past due.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 -11pt 0.5in; text-align: justify; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The Company attempted to communicate with Woodstock and Due West beginning in the third quarter of 2016 and after receipt of the
$1 million in payments noted above. The basis of the communications was to collect the remaining outstanding accounts receivable
balances of these two customers. The communications, at first, appeared productive but no additional payments were received. During
these communications, the Company became
aware that these two customers were going through various audits from health insurance carriers, which is common in the industry.
Based on the Company&rsquo;s industry experience, these audits can create financial stress on small pharmacy operators such as
these customers. Management believed these audits could have been impacting the financial condition of these customers and their
ability to pay their outstanding balances with the Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.25in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 -11pt 0.5in; text-align: justify; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&#9679;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-align: justify; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">During the third quarter of 2016, management also decided to centralize the distribution channel for both the Company&rsquo;s
retail pharmacies and wholesale distributors, in order to facilitate sales to a broader population of pharmacies and minimize
business risk exposure to any one pharmacy. On September 1, 2016, management made effective the new distribution agreements with
all of the Company&rsquo;s pharmacy distributors, which were signed throughout the months of July and August. Woodstock and Due
West did not sign these agreements, which put the Company on notice of their intent not to continue their respective relationships
with the Company. After repeated communications subsequent to the September 1, 2016 new distribution agreement date and through
the date of the filing of the Form 10-Q, both customers continued to be nonresponsive.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based
on the timeline of events described above and management&rsquo;s assessment of the Company&rsquo;s relationship with these customers,
management concluded that the likelihood of collecting the remaining outstanding accounts receivable balances was remote. Therefore,
the Company concluded that a full reserve on these customers&rsquo; outstanding balance was required as of September 30, 2016.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&rsquo;s analysis of outstanding accounts receivable and the requirements for an allowance for doubtful accounts during
earlier periods did not contain the preponderance of negative factors that the Company identified during the third quarter of
2016. Also, subsequent to the end of the first and second quarters of 2016 but prior to the filing of the Company&rsquo;s quarterly
reports for such quarters, the Company had received significant cash payments on account from these customers. In addition, the
Company had open and responsive communication from these customers in prior quarters.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company established reserves related to these customers during the first and second quarters of 2016 based on information available
to the Company at such times. During such times, the Company had identified some risk associated with these customers as part
of its quarterly analysis, which included risks associated with the size of operations of these pharmacies and a slight deterioration
in the customers&rsquo; accounts receivable balances over time. As a result, the Company had increased the allowance for doubtful
accounts related to these customers&rsquo; open accounts receivable balances during the three months ended March 31, 2016 and
June 30, 2016. The balance of the Company&rsquo;s allowance for doubtful accounts reserve increased from $81,910 at December 31,
2015 to $318,061 at March 31, 2016 and $529,298 at June 30, 2016. In September 2016, based on additional information available
at that time, management reserved an additional $1.7 million to the allowance for doubtful accounts related to the accounts receivable
balances of Woodstock and Due West. During the third quarter close, management concluded that the Company should write-off accounts
receivable balances of $2.2 million related to these two pharmacy distributors based on the Company&rsquo;s inability to collect
the outstanding balances and the
Company&rsquo;s lack of a continuing relationship with these parties. The Company believes the reserves it previously established
related to these customers were appropriate given the information available during the first and second quarters of 2016. Management
continues to monitor its receivables and reserve for doubtful accounts estimate taking into account quantitative and qualitative
factors in the business environment that may affect the Company&rsquo;s customers&rsquo; ability to pay.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 -11pt 0.5in; text-align: justify; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-align: justify; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Given that the amount of these write-offs represents almost 15% of your revenues for the nine months ended September 30, 2016,
tell us how you were able to recognize the revenue associated with these write-offs. In this regard, specifically explain how
each criterion in ASC 605-15-25-1 was met.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Company&rsquo;s
Response:</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company recognized substantially all of the revenue underlying the indicated write-off of accounts receivable for both customers
in the first and second quarters of 2016; an immaterial amount of the revenue underlying the indicated write-off of accounts receivable
for both customers was recognized in the third quarter of 2016. During the first and second quarters, the Company believed that
sales made to these customers met the following requirements of ASC 605 and were appropriately recognized as revenue:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 -11pt 0.5in; text-indent: 0">&#9679;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Persuasive evidence of an arrangement existed</B> &ndash; The Company had written contracts with these customers to sell product
at specified prices.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 -11pt 0.5in; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Delivery had occurred</B> &ndash; Delivery of the product to the customers had occurred.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 -11pt 0.5in; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>The seller's price to the buyer was fixed or determinable</B> - The Company had written contracts with these customers to sell
product at specified prices.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 -11pt 0.5in; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 1in; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Collectibility was reasonably assured</B> &ndash; Woodstock and Due West had been customers of the Company since the second
quarter of 2013 and third quarter of 2014, respectively. Both customers had relatively positive collection histories and ordered
product from the Company on a frequent basis. The Company&rsquo;s assessment of these customers&rsquo; outstanding accounts receivable
balances as of the first and second quarters of 2016 did not identify significant issues that impacted the Company&rsquo;s assessment
of such customers&rsquo; ability to pay on currently placed orders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company recognizes revenue only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service
is performed and collectability is reasonably assured. The revenue related to the two customers mentioned above was recognized
when the product was sold to the end customer &ndash; the patient &ndash; was dispensed by the pharmacy distributor, at which
point all revenue and discounts related to such product were known or determinable and there was no right of return with respect
to such product. The Company&rsquo;s return policy states that once customers buy a prescription product from a pharmacy distributor,
the product may not be returned. At the point that the Company&rsquo;s product was dispensed by the pharmacy distributor to the
patient, the pharmacy distributor was obligated to pay the Company for the product. Specifically, as stated in ASC 605-15-25-1,
the Company considered the following criteria:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">If
an entity sells its product but gives the buyer the right to return the product, revenue from the sales transaction shall be recognized
at time of sale only if all the following conditions are met:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The seller&rsquo;s price to the buyer is substantially fixed or determinable at the date of sale.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company recognized revenue only when the price was fixed or determinable, persuasive evidence of an arrangement existed, the
service was performed and collectability was reasonably assured at the time of sale. As discussed above, the Company had
written contracts with these customers to sell product at specified prices.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The buyer has paid the seller, or the buyer is obligated to pay the seller and the obligation is not contingent on resale of the
product. If the buyer does not pay at time of sale and the buyer&rsquo;s obligation to pay is contractually or implicitly excused
until the buyer resells the product, then this condition is not met.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">At
the time of sale to end customers described above, the Company recorded revenue based on a confirmation from the patient&rsquo;s
insurance company stating the fixed amount that would be paid for the product being dispensed. At that point, the pharmacy distributor
buyer was obligated to pay the Company and the obligation was not contingent on resale of the product. The revenue was recognized
at the time the product was dispensed to the end customer at which there was no right of return, the value of the sale was fixed
and the amount of any applicable discount was determined.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The buyer&rsquo;s obligation to the seller would not be changed in the event of theft or physical destruction or damage of the
product.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
revenue related to the two pharmacy distributor customers mentioned above was recognized when the product sold to the end customers
was dispensed, at which point all revenue and discounts were known or determinable and there was no right of return. Potential
theft would have occurred prior to the sale to the end customer, at which point revenue would have not been recognized. Revenue
was recognized after the pharmacy dispensed the product to the end customer and the risk of theft or physical destruction or damage
of the product transferred to the end customer.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>d.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The buyer acquiring the product for resale has economic substance apart from that provided by the seller. This condition relates
primarily to buyers that exist on paper, that is, buyers that have little or no physical facilities or employees. It prevents
entities from recognizing sales revenue on transactions with parties that the sellers have established primarily for the purpose
of recognizing such sales revenue. </I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
revenue related to the two pharmacy distributor customers mentioned above was generated by independent retail pharmacies that
have physical facilities and that sell products to both walk in patients and through home delivery.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>e.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The seller does not have significant obligations for future performance to directly bring about resale of the product by the buyer.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
revenue related to the two pharmacy distributor customers mentioned above was recognized when the product sold to the end customers
was dispensed, at which point all revenue and discounts were known or determinable and there was no right of return.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>f.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The amount of future returns can be reasonably estimated (see paragraphs 605-15-25-3 through 25-4). Because detailed record keeping
for returns for each product line might be costly in some cases, this Subtopic permits reasonable aggregations and approximations
of product returns. As explained in paragraph 605-15-15-2, exchanges by ultimate customers of one item for another of the same
kind, quality, and price (for example, one color or size for another) are not considered returns for purposes of this Subtopic.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
revenue related to the two pharmacy distributor customers mentioned above was recognized when the product sold to the end customers
was dispensed, at which point all revenue and discounts were known or determinable and there was no right of return. The Company&rsquo;s
return policy states that once customers buy a prescription product from the pharmacy distributor, the product may not be returned.
The Company provides a reserve for returns based on historical experience which to date has not been significant.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 -11pt 0.5in; text-align: justify; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt 1in; text-align: justify; text-indent: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Tell us your consideration for disclosing in MD&amp;A the impact of the loss of these customers on future product sales.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Company&rsquo;s
Response:</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company believes that its ultimate customer is the patient receiving the Company&rsquo;s products and that the pharmacy distributor
is the channel through which the patient receives the prescribed products. During the third quarter of 2016, management decided
to centralize the distribution channel for both the Company&rsquo;s retail pharmacies and wholesale distributors, in order to
facilitate sales to a broader population of pharmacies and mitigate exposure to any one pharmacy. As part of this centralization,
the Company expanded its network of pharmacy distributors through which patients are receiving prescriptions. The Company believes
that the loss of the pharmacy distributors mentioned above will not have an impact on the Company&rsquo;s future product sales
beyond the quarter in which the change in the network of pharmacy distributors occurred because the Company&rsquo;s ultimate customers
will acquire the Company&rsquo;s products through other pharmacy distributors in the Company&rsquo;s pharmacy distribution network.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations </U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><U>Liquidity
and Capital Resources, page 30</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 -11pt; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>3.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Please
tell us why your days sales outstanding for the quarters ended September 30, June 30 and March 31, 2016 of 84, 93 and 93 days,
respectively, are substantially higher than for December 31, September 30, June 30 and March 31, 2015 of 50, 65, 62, and 53, respectively.
In this regard, we computed days sales by dividing accounts receivable &ndash; trade, net at the end of a quarter by net product
sales for the respective quarter and multiplying the result by the number of days in the quarter. In your response, tell us how
the write-offs identified in the preceding comment impact your historical days sales outstanding amounts and
whether you had any changes in collection policies/practices in 2016. Also, tell us your consideration for disclosing the impact
of the increased collection time on liquidity as well as the underlying causes for this increase.</B></FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Company&rsquo;s
Response:</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: windowtext">As
</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">a result of developments in the pharmaceutical
industry that negatively affected independent pharmacies, including such pharmacies&rsquo; reliance on third party payors, in
2016 management identified that payment periods for the Company&rsquo;s independent pharmacy distributors were becoming longer
than in prior years. The Company had no significant changes in its collection policies or practices, except that management began
to communicate more frequently with the Company&rsquo;s independent pharmacy distributors and started to more closely monitor
the Company&rsquo;s independent pharmacy distributor relationships for signs of financial stress or non-responsiveness. The increase
in the Company&rsquo;s days sales outstanding as of June 30 and March 31, 2016 was primarily the result of the aging of the Woodstock
and Due West accounts receivable balances. As discussed above, the Company performed an analysis of the Woodstock and Due West
accounts receivable balances and customer relationship as of March 31, 2016 and June 30, 2016. Although the accounts receivable
balances had aged out longer than historical levels, the Company received approximately $1.1 million in payments from these customers
in April 2016 and approximately $1 million in payment from these customers in July 2016. Had these payments on account been received
timely during the quarterly periods, the Company&rsquo;s days sales outstanding would have been 73 for both March 31, 2016 and
June 30, 2016, which the Company believes is more comparable to the Company&rsquo;s 2015 days sales outstanding. The increase
in the days sales outstanding as of September 30, 2016 was primarily related to initial orders placed in connection with the new
distribution agreements with the Company&rsquo;s pharmacy distributors discussed in response to comment two above, which were
effective on September 1.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company believes that the loss of the pharmacy distributors mentioned above will not have an impact on the Company&rsquo;s future
product sales beyond the quarter in which the change in the network of pharmacy distributors occurred because the Company&rsquo;s
ultimate customers will acquire the Company&rsquo;s products through other pharmacy distributors in the Company&rsquo;s pharmacy
distribution network.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company believes that the impact of the increased collection time on liquidity, and its underlying cause, is not material because,
as disclosed in the Form 10-Q, the Company has sufficient existing cash to fund its operating plan through at least the next 12
months, primarily from cash provided by financing activities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*
* * * *</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
you or any other member of the Staff should have any further comments or questions regarding this response, please feel free to
contact the undersigned by phone at (561) 961-1930 or Joshua M. Samek, Esq. of Greenberg Traurig, P.A., the Company&rsquo;s outside
counsel, at (305) 579-0856.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">Sincerely,</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 28%; border-bottom: Black 1pt solid">/s/ Daniel A. Cartwright</TD>
    <TD STYLE="width: 22%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">Daniel
A. Cartwright</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">Chief
Financial Officer</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>cc:&nbsp;&nbsp;&nbsp;Joshua M. Samek, Esq.</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Greenberg
Traurig, P.A.</TD>
    <TD COLSPAN="2">&nbsp;</TD></TR>
</TABLE>

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