Subpoenas From the U.S. Attorney, Western District of New York. In April 2008, we received subpoenas from the office of the U.S. Attorney for the
Western District of New York requesting information regarding the marketing activities related to XIBROM. We are cooperating with the government's
investigation. From April 2008 through September 30, 2011, we have incurred approximately $4.0 million in legal fees associated with this criminal
investigation and expect to incur significant expenses in the future. In October 2011, we, and certain of our officers and current and former employees
received correspondence from the government identifying them as targets. Tolling agreements have been executed to allow cooperation and discussions
regarding resolution. If the government chooses to engage in civil litigation or initiate a criminal prosecution against us, our officers or our current or former
employees, as a result of its review of the requested documents and other evidence, we may have to incur significant amounts to defend such actions or pay or
incur substantial fines or penalties, on behalf of ourselves, our officers or our current or former employees, any of which could significantly deplete our cash
resources. The case is ongoing and the likelihood of an unfavorable outcome and/or the amount/range of loss or additional expenses, cannot be reasonably
Western District of New York requesting information regarding the marketing activities related to XIBROM. We are cooperating with the government's
investigation. From April 2008 through September 30, 2011, we have incurred approximately $4.0 million in legal fees associated with this criminal
investigation and expect to incur significant expenses in the future. In October 2011, we, and certain of our officers and current and former employees
received correspondence from the government identifying them as targets. Tolling agreements have been executed to allow cooperation and discussions
regarding resolution. If the government chooses to engage in civil litigation or initiate a criminal prosecution against us, our officers or our current or former
employees, as a result of its review of the requested documents and other evidence, we may have to incur significant amounts to defend such actions or pay or
incur substantial fines or penalties, on behalf of ourselves, our officers or our current or former employees, any of which could significantly deplete our cash
resources. The case is ongoing and the likelihood of an unfavorable outcome and/or the amount/range of loss or additional expenses, cannot be reasonably