STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION

8. STOCK-BASED COMPENSATION

All equity-based service awards are granted under the ANI Pharmaceuticals, Inc. Amended and Restated 2008 Stock Incentive Plan (the “2008 Plan”). As of June 30, 2016, 0.3 million shares of our common stock remained available for issuance under the 2008 Plan.

 

The following table summarizes stock-based compensation expense, net of forfeitures, included in our accompanying unaudited interim condensed consolidated statements of earnings:

(in thousands)	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Cost of sales	$	24	$	21	$	14	$	37
Research and development		22		33		49		49
Selling, general, and adminstrative		2,171		975		3,259		1,511
	$	2,217	$	1,029	$	3,322	$	1,597

Separation Agreement

On April 26, 2016, we entered into a Separation Agreement and Release (the “Separation Agreement”) with our former Chief Financial Officer (the “Former Officer”), who resigned effective May 6, 2016. Under the Separation Agreement, 25,167 stock options previously granted to the Former Officer vested on May 6, 2016. In addition, 4,050 restricted stock awards and 2,000 stock options previously granted to the Former Officer will vest on March 15, 2017, subject to certain conditions. These actions were accounted for as a modification of the underlying awards and the full expense for the modified awards was recorded in the three months ended June 30, 2016.  In the second quarter of 2016, we recorded $0.9 million of stock-based compensation expense, net of forfeitures, in relation to the Separation Agreement. During the three months ended June 30, 2016, we recognized $0.4 million of additional expense related to the Separation Agreement and transition that was not related to stock-based compensation. All expenses related to the Separation Agreement and transition have been recognized in the three months ended June 30, 2016.

A summary of stock option and restricted stock activity under the Plan during the six months ended June 30, 2016 and 2015 is presented below:

(in thousands)	Options		RSAs
Outstanding December 31, 2014		458		63
Granted		120		28
Options Exercised/RSAs Vested		(31)		(10)
Forfeited		(33)		(5)
Outstanding June 30, 2015		514		76
Outstanding December 31, 2015		474		63
Granted		273		42
Options Exercised/RSAs Vested		(54)		(15)
Forfeited		(50)		(12)
Outstanding June 30, 2016		643		78