Equity-Based Compensation

3 Months Ended

Mar. 31, 2020

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 three months ended March 31, 2020:

	2019	2007	Lumara Health	Inducement
	Plan	Plan	2013 Plan	Grants	Total
Outstanding at December 31, 2019	472,412	2,585,466	131,775	696,164	3,885,817
Granted	228,650	—	—	—	228,650
Exercised	—	—	—	—	—
Expired or terminated	(35,600)	(113,530)	(2,988)	(32,598)	(184,716)
Outstanding at March 31, 2020	665,462	2,471,936	128,787	663,566	3,929,751

Restricted Stock Units

The following table summarizes RSU activity for the three months ended March 31, 2020:

	2019	2007	Lumara Health	Inducement
	Plan	Plan	2013 Plan	Grants	Total
Outstanding at December 31, 2019	128,742	1,407,305	2,167	41,223	1,579,437
Granted	647,029	—	—	—	647,029
Vested	—	(402,993)	(366)	(2,001)	(405,360)
Expired or terminated	(6,200)	(204,161)	—	(3,001)	(213,362)
Outstanding at March 31, 2020	769,571	800,151	1,801	36,221	1,607,744

Equity-Based Compensation Expense

Equity-based compensation expense for the three months ended March 31, 2020 and 2019 consisted of the following (in thousands):

	Three Months Ended March 31,
	2020		2019
Cost of product sales	$	203	$	202
Research and development	70		680
Selling, general and administrative	3,512		3,325
Total equity-based compensation expense	3,785		4,207
Income tax effect	—		—
After-tax effect of equity-based compensation expense	$	3,785	$	4,207

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, (as discussed further in Note R, below), which is classified within restructuring expense on our condensed consolidated statement of operations for the three months ended March 31, 2019.