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Equity-Based Compensation
 9 Months Ended
Sep. 30, 2019
Share-based Payment Arrangement [Abstract]  
Equity-Based Compensation EQUITY‑BASED COMPENSATION
We currently maintain three equity compensation plans; our 2019 Equity Incentive Plan (the “2019 Plan”), which was approved by our stockholders at our 2019 annual meeting and replaced our Fourth Amended and Restated 2007 Equity Incentive Plan (the “2007 Plan”), the Lumara Health Inc. Amended and Restated 2013 Incentive Compensation Plan (the “Lumara Health 2013 Plan”) and our 2015 Employee Stock Purchase Plan (“2015 ESPP”). All outstanding stock options granted under each of our equity compensation plans other than our 2015 ESPP have an exercise price equal to the closing price of a share of our common stock on the grant date.
Stock Options
The following table summarizes stock option activity for the nine months ended September 30, 2019:
 
2019 Equity
 
2007 Equity
 
2013 Lumara
 
Inducement
 
 
 
Plan
 
Plan
 
Equity Plan
 
Grants
 
Total
Outstanding at December 31, 2018
—

 
2,781,786

 
124,450

 
810,343

 
3,716,579

Granted
344,208

 
465,009

 
34,700

 
80,366

 
924,283

Exercised
—

 
(2,025
)
 
—

 
—

 
(2,025
)
Expired or terminated
—

 
(585,312
)
 
(26,275
)
 
(131,250
)
 
(742,837
)
Outstanding at September 30, 2019
344,208

 
2,659,458

 
132,875

 
759,459

 
3,896,000


Restricted Stock Units
The following table summarizes RSU activity for the nine months ended September 30, 2019:
 
2019 Equity
 
2007 Equity
 
2013 Lumara
 
Inducement
 
 
 
Plan
 
Plan
 
Equity Plan
 
Grants
 
Total
Outstanding at December 31, 2018
—

 
1,041,141

 
2,101

 
85,293

 
1,128,535

Granted
123,228

 
1,023,847

 
1,100

 
29,385

 
1,177,560

Vested
—

 
(354,563
)
 
(1,034
)
 
(44,909
)
 
(400,506
)
Expired or terminated
(1,800
)
 
(250,968
)
 
—

 
(7,500
)
 
(260,268
)
Outstanding at September 30, 2019
121,428

 
1,459,457

 
2,167

 
62,269

 
1,645,321


In February 2019, we granted RSUs under our 2007 Plan to certain members of our senior management covering a maximum of 365,591 shares of common stock. These performance-based RSUs will vest, if at all, on February 24, 2022, based on our total shareholder return performance measured against the median total shareholder return of a defined group of companies over a three-year period. As of September 30, 2019, the maximum shares of common stock that may be issued under these awards is 347,591. The maximum aggregate total fair value of these RSUs is $4.5 million, which is being recognized as expense over a period of three years from the date of grant, net of any actual forfeitures.
Equity-Based Compensation Expense
Equity-based compensation expense for the three and nine months ended September 30, 2019 and 2018 consisted of the following (in thousands):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Cost of product sales
$
225

 
$
281

 
$
626

 
$
588

Research and development
691

 
568

 
2,051

 
1,896

Selling, general and administrative
4,058

 
4,202

 
11,039

 
12,149

Total equity-based compensation expense
4,974

 
5,051

 
13,716

 
14,633

Income tax effect
—

 
—

 
—

 
—

After-tax effect of equity-based compensation expense
$
4,974

 
$
5,051

 
$
13,716

 
$
14,633


 
In addition to the equity-based compensation expense presented in the table above, we incurred $0.7 million of equity-based compensation expense related to the restructuring activities during the first quarter of 2019, which is classified within restructuring expense on our condensed consolidated statement of operations for the nine months ended September 30, 2019.