Document and Entity Information (USD $)	12 Months Ended
Document and Entity Information (USD $)	Dec. 31, 2011	Feb. 29, 2012	Jun. 30, 2011
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2011
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	FY
Trading Symbol	ACUR
Entity Registrant Name	ACURA PHARMACEUTICALS, INC
Entity Central Index Key	0000786947
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		45,861,120
Entity Public Float			$ 45,900,000

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Current assets
Cash and cash equivalents	$ 35,685	$ 24,045
Collaboration revenue receivable	0	126
Income taxes refundable	153	12
Prepaid insurance	218	213
Prepaid expenses and other current assets	73	45
Total current assets	36,129	24,441
Property, plant and equipment, net	1,044	1,052
Total assets	37,173	25,493
Current liabilities
Accounts payable	53	0
Accrued expenses	477	686
Deferred program fee revenue	0	466
Total current liabilities	530	1,152
Commitments and contingencies (Note H)
Stockholders' equity
Common stock - $.01 par value; 100,000 shares authorized; 45,320 and 43,894 shares issued and outstanding in 2011 and 2010, respectively	453	439
Additional paid-in capital	361,733	359,830
Accumulated deficit	(325,543)	(335,928)
Total stockholders' equity	36,643	24,341
Total liabilities and stockholders' equity	$ 37,173	$ 25,493

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2011	Dec. 31, 2010
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	45,320	43,894
Common stock, shares outstanding	45,320	43,894

Total number of shares of common stock held by shareholders. May be all or portion of the number of common shares authorized. These shares represent the ownership interest of the common shareholders. Shares outstanding equals shares issued minus shares held in treasury and other adjustments, if any.

+ References+ Details

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Revenues
Program fee revenue	$ 466	$ 1,088	$ 3,077
Collaboration revenue	0	2,223	758
Milestone revenue	20,000	0	0
Total revenue	20,466	3,311	3,835
Operating expenses
Research and development	4,037	7,177	5,673
Marketing, general and administrative	5,895	8,858	11,662
Total operating expenses	9,932	16,035	17,335
Income (loss) from operations	10,534	(12,724)	(13,500)
Other income (expense)
Interest income	32	42	147
Other expense	(34)	(14)	(3)
Total other income (expense)	(2)	28	144
Income (loss) before income tax	10,532	(12,696)	(13,356)
Income tax expense	147	11	2,479
Net income (loss) applicable to common stockholders	$ 10,385	$ (12,707)	$ (15,835)
Earnings (loss) per share
Basic	$ 0.22	$ (0.27)	$ (0.35)
Diluted	$ 0.22	$ (0.27)	$ (0.35)
Weighted average shares
Basic	47,496	47,029	45,932
Diluted	48,007	47,029	45,932

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) In Thousands	Total	Cashless	Restricted Stock Units (RSUs)	Option Non Cash Exercise1	Common Stock	Common Stock Cashless	Common Stock Restricted Stock Units (RSUs)	Common Stock Option Non Cash Exercise1	Additional Paid-in Capital	Additional Paid-in Capital Cashless	Additional Paid-in Capital Restricted Stock Units (RSUs)	Additional Paid-in Capital Option Non Cash Exercise1	Accumulated Deficit	Accumulated Deficit Cashless	Accumulated Deficit Restricted Stock Units (RSUs)	Accumulated Deficit Option Non Cash Exercise1
Beginning Balance at Dec. 31, 2008	$ 37,064				$ 427				$ 344,023				$ (307,386)
Beginning Balance (in shares) at Dec. 31, 2008					42,723
Net income (loss) for the year	(15,835)				0				0				(15,835)
Share-based compensation (in shares)					0
Share-based compensation	9,204				0				9,204				0
Issuance of common stock for exercise of warrants (in shares)					50	730
Issuance of common stock for exercise of warrants	160	0			1	7			159	(7)			0	0
Issuance of common stock for cashless exercise of options and payroll taxes (in shares)					225
Issuance of common stock for cashless exercise of options and payroll taxes	(683)				2				(685)				0
Ending Balance at Dec. 31, 2009	29,910				437				352,694				(323,221)
Ending Balance (in shares) at Dec. 31, 2009					43,728
Net income (loss) for the year	(12,707)				0				0				(12,707)
Share-based compensation (in shares)					0
Share-based compensation	6,746				0				6,746				0
Issuance of common stock for exercise of warrants (in shares)					123	43
Issuance of common stock for exercise of warrants	392	0			1	1			391	(1)			0	0
Ending Balance at Dec. 31, 2010	24,341				439				359,830				(335,928)
Ending Balance (in shares) at Dec. 31, 2010					43,894
Net income (loss) for the year	10,385				0				0				10,385
Share-based compensation (in shares)					0
Share-based compensation	2,458				0				2,458				0
Net distribution of common stock pursuant to restricted stock unit award plan (in shares)					828
Net distribution of common stock pursuant to restricted stock unit award plan	0				8				(8)				0
Common shares withheld for withholding taxes (in shares)							(288)	(228)
Common shares withheld for withholding taxes			(948)	(886)			(3)	(2)			(945)	(884)			0	0
Issuance of common stock for exercise of stock options (in shares)					167			611
Issuance of common stock for exercise of stock options	217			0	2			6	215			(6)	0			0
Issuance of common stock for exercise of warrants (in shares)					336
Issuance of common stock for exercise of warrants	1,076				3				1,073				0
Ending Balance at Dec. 31, 2011	$ 36,643				$ 453				$ 361,733				$ (325,543)
Ending Balance (in shares) at Dec. 31, 2011					45,320

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Cash flows from operating activities:
Net income (loss)	$ 10,385	$ (12,707)	$ (15,835)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	131	135	130
Non-cash share-based compensation expense	2,458	6,746	9,204
Loss (gain) on asset disposals	8	14	(3)
Deferred income taxes	0	0	2,479
Changes in assets and liabilities
Collaboration revenue receivable	126	231	3,172
Income taxes refundable	(141)	0	0
Prepaid expenses and other current assets	(33)	(37)	222
Accounts payable	53	0	(382)
Accrued expenses	(209)	226	(1,113)
Deferred program fee revenue	(466)	(1,088)	(3,077)
Net cash provided by (used in) operating activities	12,312	(6,480)	(5,203)
Cash flows from investing activities:
Maturities of short-term investments	0	0	5,039
Capital expenditures	(131)	(41)	(220)
Net cash (used in) provided by investing activities	(131)	(41)	4,819
Cash flows from financing activities:
Exercise of stock options	217	0	0
Distribution of restricted stock units	5	0	0
Net proceeds from warrant exercise	1,076	392	160
Statutory minimum withholding taxes paid on the distribution of common stock pursuant to restricted stock unit plan and exercise of stock options	(1,839)	0	0
Net cash (used in) provided by financing activities	(541)	392	160
Net increase (decrease) in cash and cash equivalents	11,640	(6,129)	(224)
Cash and cash equivalents at beginning of period	24,045	30,174	30,398
Cash and cash equivalents at end of period	35,685	24,045	30,174
Cash paid during the period:
Interest	26	0	0
Income taxes	$ 284	$ 20	$ 108

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011 Restricted Stock Units (RSUs)	Dec. 31, 2011 Stock Option	Dec. 31, 2009 Stock Option	Dec. 31, 2010 Warrant	Dec. 31, 2009 Warrant
Supplemental Disclosure of Noncash Financing Activities:
Equity based employee compensation granted	829	935	525	65	1,479
Common stock withheld in exercise costs in shares		324
Common stock withheld in exercise costs	$ 3	$ 1,252
Witholding of exercise cost in shares	288	230
Minimum statutory withholding payroll taxes withheld	$ 948	$ 886	$ 685
Common Stock issued upon exercise	540	383	225	43	730

DESCRIPTION OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2011

DESCRIPTION OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES

NOTE A - DESCRIPTION OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES

Acura Pharmaceuticals, Inc., a New York corporation, and its subsidiary (the “Company”, “We”, or “Our”) is a specialty pharmaceutical company engaged in research, development and commercialization of products intended to address medication abuse and misuse, utilizing its proprietary Aversion® and Impede™ Technologies.

Summary of Significant Accounting Policies

A summary of the significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements follows.

1. Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Acura Pharmaceutical Technologies, Inc. All significant intercompany accounts and transactions are eliminated in consolidation.

2. Cash and Cash Equivalents

The Company considers cash and cash equivalents to include cash in banks, U.S. Treasury Bills, and institutional money market mutual funds. The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Our cash and cash equivalents are governed by our investment policy as approved by our Board of Directors. The carrying amount of cash and cash equivalents approximates its fair value due to its short-term nature.

3. Concentration of Credit Risk

We invest our excess cash in accordance with the investment policy approved by our Board of Directors that seeks both liquidity and safety of principal. The policy provides for investments in instruments issued by the United States government and by commercial institutions with strong investment grade credit ratings and places restrictions on maturity terms and concentrations by type and issuer.

4. Use of Estimates in Consolidated Financial Statements

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and use assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management periodically evaluates estimates used in the preparation of the consolidated financial statements for continued reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based on such periodic evaluations.

5. Inventories

We had no inventories at each of December 31, 2011 and 2010. Purchases of active pharmaceutical ingredients and raw materials required for our development and clinical trial manufacture of product candidates utilizing our Aversion® or Impede™ Technologies are expensed as incurred.

6. Property, Plant and Equipment

Property, plant and equipment are recorded at cost. Depreciation is recorded on a straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are amortized on a straight-line basis over the shorter of their useful lives or the terms of their respective leases. Betterments are capitalized and maintenance and repairs are charged to operations as incurred. The estimated lives of the major classification of depreciable assets are:

Building and improvements	10 - 40 years
Land improvements	20 - 40 years
Machinery and equipment	7 - 10 years
Scientific equipment	5 - 10 years
Computer hardware and software	3 - 10 years
Office equipment	5 - 10 years

Revenue Recognition, Deferred Program Fee Revenue and Collaboration Revenue

We recognize revenue when there is persuasive evidence that an arrangement exists, delivery has occurred, the price is fixed and determinable, and collection is reasonably assured. In connection with our License, Development, and Commercialization Agreement dated October 30, 2007 with King Pharmaceuticals Research and Development, Inc., now a subsidiary of Pfizer Inc. (the “Pfizer Agreement”), we recognize program fee revenue, collaboration revenue and milestone revenue.

Program fee revenue is derived from amortized upfront payments, such as the $30.0 million upfront payment from Pfizer received in December 2007, and license fees, such as the $3.0 million option exercise fee paid by Pfizer to us in each of May 2008 and December 2008 upon the exercise of its option to license a third and fourth opioid analgesic product candidate under the Pfizer Agreement. We assigned an equal portion of Pfizer’s $30.0 million upfront payment to each of three product candidates identified in the Pfizer Agreement and recognize the upfront payment as program fee revenue ratably over our estimate of the development period for each identified product candidate. We recognized $0.5 million, $1.1 million, and $3.1 million of this program fee revenue in 2011, 2010, and 2009, respectively.

Collaboration revenue is derived from reimbursement of development expenses, which are invoiced quarterly in arrears, and are recognized when costs are incurred pursuant to the Pfizer Agreement. The ongoing research and development services being provided to Pfizer under the collaboration are priced at fair value based upon the reimbursement of expenses incurred pursuant to the collaboration with Pfizer. We recognized $2.2 million and $0.8 million of collaboration revenue in 2010 and 2009, respectively. We had no collaboration revenue in 2011.

Milestone revenue is contingent upon the achievement of certain pre-defined events in the development of Oxecta Tablets and other product candidates licensed to Pfizer under the Pfizer Agreement. Milestone payments from Pfizer are recognized as revenue upon achievement of the “at risk” milestone events, which represent the culmination of the earnings process related to that milestone. Milestone payments are triggered either by the results of our research and development efforts or by events external to us, such as regulatory approval to market a product. As such, the milestones are substantially at risk at the inception of the Pfizer Agreement, and the amounts of the payments assigned thereto are commensurate with the milestone achieved. In addition, upon the achievement of a milestone event, we have no future performance obligations related to that milestone payment. Each milestone payment is non-refundable and non-creditable when made. In June 2011, Pfizer paid us a $20 million milestone relating to the receipt of FDA approval of the NDA for Oxecta.

8. Research and Development

Research and Development (“R&D”) expenses include internal R&D activities, external Contract Research Organization (“CRO”) services and their clinical research sites, and other activities. Internal R&D activity expenses include facility overhead, equipment and facility maintenance and repairs, laboratory supplies, pre-clinical laboratory experiments, depreciation, salaries, benefits, and share-based compensation expenses. CRO activity expenses include preclinical laboratory experiments and clinical trial studies. Other activity expenses include regulatory consulting, and regulatory legal counsel. Internal R&D activities and other activity expenses are charged to operations as incurred. We make payments to the CRO's based on agreed upon terms and may include payments in advance of a study starting date. We review and accrue CRO expenses and clinical trial study expenses based on services performed and rely on estimates of those costs applicable to the stage of completion of a study as provided by the CRO. Accrued CRO costs are subject to revisions as such studies progress to completion. Revisions are charged to expense in the period in which the facts that give rise to the revision become known. At December 31, 2011 and 2010 we had accrued $28 thousand and $0.3 million, respectively of CRO and clinical trial study expenses.

9. Income Taxes

We account for income taxes under the liability method. Under this method, deferred income tax assets and liabilities are determined based on differences between the financial reporting and the income tax basis of assets and liabilities and are measured using the enacted income tax rates and laws that will be in effect when the differences are expected to reverse. Additionally, net operating loss and tax credit carryforwards are reported as deferred income tax assets. The realization of deferred income tax assets is dependent upon future earnings. A valuation allowance is required against deferred income tax assets if, based on the weight of available evidence, it is more likely than not that some or all of the deferred income tax assets may not be realized. During 2009 we determined it was more likely than not that we would not be able to realize our recorded deferred income tax assets and we recorded an adjustment of $2.5 million to the deferred income tax asset valuation allowance and recognized an expense from income taxes in such period. At both December 31, 2011 and 2010, 100% of all remaining net deferred income tax assets were offset by a valuation allowance due to uncertainties with respect to future utilization of net operating loss carryforwards. If in the future it is determined that additional amounts of our deferred income tax assets would likely be realized, the valuation allowance would be reduced in the period in which such determination is made and an additional benefit from income taxes in such period would be recognized.

10. Earnings (Loss) Per Share

The computation of basic earnings (loss) per share of common stock is based upon the weighted average number of common shares outstanding during the period, including shares weighted related to vested RSUs (See Note G). The computation of diluted earnings (loss) per share is based on the same number of shares used in the basic share calculation adjusted for the effect of other potentially dilutive securities. No such adjustments were made for 2010 or 2009 as their effects would have been antidilutive.

	Year ended December 31,
	2011		2010			2009
	(in thousands except per share data)
Basic earnings per share
Numerator:
Net income (loss) applicable to common stockholders	$	10,385	$	(12,707	)	$	(15,835	)
Denominator:
Common shares		45,016		43,842			42,912
Vested RSUs		2,480		3,187			3,020
Weighted average number of shares outstanding		47,496		47,029			45,932
Basic earnings (loss) per common share	$	0.22	$	(0.27	)	$	(0.35	)
Diluted earnings (loss) per share
Denominator:
Common shares		45,016		43,842			42,912
Vested RSUs		2,489		3,187			3,020
Stock options		366		0			0
Common stock warrants		136		0			0
Weighted average number of shares outstanding		48,007		47,029			45,932
Diluted earnings (loss) per common share	$	0.22	$	(0.27	)	$	(0.35	)

Excluded potentially dilutive securities:
Common stock issuable (1):
Stock options		2,805		4,243			3,671
Common stock warrants		0		2,193			2,380
RSUs		0		49			204
Total excluded dilutive shares		2,805		6,485			6,255

(1) The number of shares is based on maximum number of shares issuable on exercise or conversion of the related securities as of our year end. Such amounts have not been adjusted for the treasury stock method or weighted average outstanding calculations as required if the securities were dilutive.

11. Share-Based Compensation

We have four share-based compensation plans covering stock options and RSUs for our employees and directors, which are described more fully in Note G.

We measure our compensation cost related to share-based payment transactions based on fair value of the equity or liability instrument issued. For purposes of estimating the fair value of each stock option unit on the date of grant, we utilize the Black-Scholes option-pricing model. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions including the expected volatility factor of the market price of our common stock (as determined by reviewing our historical public market closing prices).

Our accounting for share-based compensation for RSUs is based on the fair-value method. The fair value of the RSUs is the market price of our common stock on the date of grant, less its exercise cost.

Our non-cash share-based compensation expenses comprised the following:

Year Ended December 31,
	2011		2010		2009
	(in thousands)
Research and development
Stock options	$	457	$	1,419	$	1,702
RSUs		75		279		203
		532		1,697		1,905
General and administrative
Stock options		1,698		4,365		6,539
RSUs		228		684		760
		1,926		5,049		7,299
Total	$	2,458	$	6,746	$	9,204

LICENSE, DEVELOPMENT, AND COMMERCIALIZATION AGREEMENT

12 Months Ended

Dec. 31, 2011

LICENSE, DEVELOPMENT, AND COMMERCIALIZATION AGREEMENT

NOTE B – LICENSE, DEVELOPMENT, AND COMMERCIALIZATION AGREEMENT

On October 30, 2007, we and King Pharmaceuticals Research and Development, Inc., now a wholly-owned subsidiary of Pfizer, entered into the Pfizer Agreement to develop and commercialize in the United States, Canada and Mexico certain opioid analgesic products utilizing our proprietary Aversion Technology. The Pfizer Agreement initially provided Pfizer with an exclusive license in the United States, Canada and Mexico, or the Pfizer Territory, for Oxecta (oxycodone HCl) Tablets and oxycodone HCl/acetaminophen tablets utilizing Aversion Technology. In addition, the Pfizer Agreement provides Pfizer with an option to license in the Pfizer Territory certain future opioid analgesic products developed utilizing Aversion Technology. As of December 31, 2011, Pfizer exercised its option to license two additional product candidates including an undisclosed immediate-release opioid analgesic tablet product and hydrocodone bitartrate/acetaminophen tablets, each of which utilize our Aversion Technology. The Pfizer Agreement provides that we or Pfizer may develop additional opioid analgesic product candidates utilizing our Aversion Technology and, if Pfizer exercises its option to license such additional product candidates, they will be subject to the milestone and royalty payments and other terms of the Pfizer Agreement.

As of December 31, 2011, we had received aggregate payments of $78.5 million from Pfizer, consisting of a $30.0 million non-refundable upfront cash payment, $17.5 million in reimbursed research and development expenses relating to licensed products, $6.0 million in fees relating to Pfizer’s exercise of its option to license an undisclosed immediate-release opioid analgesic tablet product and hydrocodone bitartrate/acetaminophen tablets, a $5.0 million milestone fee relating to our successful achievement of the primary endpoints for our pivotal Phase III clinical study for Aversion oxycodone HCl with niacin tablets and a $20.0 million milestone fee relating to the FDA’s approval of the Oxecta Tablets NDA. The Pfizer Agreement also provides for Pfizer’s payment to us of a $3.0 million fee upon Pfizer’s exercise of its option for each future opioid analgesic utilizing Aversion Technology. In the event that Pfizer does not exercise its option for a Future Product, Pfizer may be required to reimburse us for certain of our expenses relating to such Future Product. Further, we may receive up to $23 million in additional non-refundable milestone payments for each active opioid analgesic ingredient licensed to Pfizer which achieves certain regulatory milestones in specific countries in the Pfizer Territory. An opioid analgesic product candidate formulated with and without niacin is considered a single product candidate for purposes of the option fees and milestone payments payable under the Pfizer Agreement. We can also receive a one-time $50 million sales milestone payment upon the first attainment of $750 million in net sales of all of our licensed products across all Pfizer Territories. In addition, for sales occurring on and following February 2, 2013 (the one year anniversary of the first commercial sale of Oxecta), Pfizerwill pay us a royalty at one of six rates ranging from 5% to 25% based on the level of combined annual net sales for all products licensed by us to Pfizer across all PfizerTerritories, with the highest applicable royalty rate applied to such combined annual sales.

Pfizer’s royalty payment obligations expire on a product-by-product and country-by-country basis upon the later of (i) the expiration of the last valid patent claim covering such product in such country, or (ii) 15 years from the first commercial sale of such product in such country. No minimum annual fees are payable by either party under the PfizerAgreement. If Pfizer, after consultation with us, enters into a license agreement with a third party to avoid or settle such third party’s allegations or claims regarding freedom to operate against a licensed Aversion Technology product, Pfizer may deduct 50% of any royalties or other license payments it pays to such third party under such license, provided that the royalties payable to us are no less than 80% of the royalties otherwise due to us under the Pfizer Agreement.

The Pfizer Agreement expires upon the expiration of Pfizer’s royalty payment and other payment obligations under the Pfizer Agreement. Pfizer may terminate the Pfizer Agreement (i) in its entirety at any time by written notice to us, and (ii) with respect to any product at any time upon the provision of not less than 12 months’ prior written notice. We may terminate the Pfizer Agreement with respect to a product in the United States in the event such product is not commercially launched by Pfizer within 120 days after receipt of regulatory approval of such product or in its entirety if Pfizer commences any interference or opposition proceeding challenging the validity or enforceability of any of our patent rights licensed to Pfizer under the Pfizer Agreement. Either party has the right to terminate the Pfizer Agreement on a product by product and country-by-country basis if the other party is in material breach of its obligations under the Pfizer Agreement relating to such product and such country, and to terminate the Agreement in its entirety in the event the other party makes an assignment for the benefit of creditors, files a petition in bankruptcy or otherwise seeks relief under applicable bankruptcy laws, in each case subject to applicable cure periods.

PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2011

PROPERTY, PLANT AND EQUIPMENT

NOTE C – PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are summarized as follows:

	December 31,
	2011			2010
	(in thousands)
Building and improvements	$	1,252		$	1,243
Land and improvements		162			161
Machinery and equipment		117			43
Scientific equipment		583			583
Computer hardware and software		270			251
Office equipment		27			27
Other personal property		70			68
		2,481			2,375
Less accumulated depreciation and amortization		(1,437	)		(1,323	)
Total property, plant and equipment, net	$	1,044		$	1,052

Depreciation and amortization expense was approximately $0.1 million for each of the years ended December 31, 2011, 2010, and 2009. We lease administrative offer space in Palatine Illinois under a lease expiring March 31, 2013 for approximately $29 annually.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References+ Details

COMMON STOCK WARRANTS	12 Months Ended
COMMON STOCK WARRANTS	Dec. 31, 2011
COMMON STOCK WARRANTS	NOTE E – COMMON STOCK WARRANTS The Company has outstanding common stock purchase warrants at December 31, 2011 exercisable for 1.9 million shares of common stock, all of which contain a cashless exercise feature. These warrants have an exercise price of $3.40 per share and expiration date of August 2014.

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(d),(e))

-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section S99

-Paragraph 4

-Subparagraph (SAB TOPIC 4.C)

-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187143-122770

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section 50

-Paragraph 6

-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Staff Accounting Bulletin (SAB)

-Number Topic 4

-Section C

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 310

-SubTopic 10

-Section S99

-Paragraph 2

-Subparagraph (SAB TOPIC 4.E)

-URI http://asc.fasb.org/extlink&oid=6228006&loc=d3e74512-122707

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-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

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-Name Accounting Standards Codification

-Topic 505

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-Name Accounting Standards Codification

-Topic 210

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.5-02.29-31)

-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

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-Publisher FASB

-Name Accounting Standards Codification

-Glossary Preferred Stock

-URI http://asc.fasb.org/extlink&oid=6521494

Reference 14: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

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-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 12

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 04

-Article 3

Reference 17: http://www.xbrl.org/2003/role/presentationRef

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-Name Regulation S-X (SX)

-Number 210

-Article 4

-Section 08

-Paragraph d

Reference 18: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 43

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 19: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 129

-Paragraph 2, 3, 4, 5, 6, 7, 8

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 20: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 08

-Article 4

Reference 21: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 5

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 22: http://www.xbrl.org/2003/role/presentationRef

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-Name Regulation S-X (SX)

-Number 210

-Section 02

-Paragraph 29, 30, 31

-Article 5

Reference 23: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Staff Accounting Bulletin (SAB)

-Number Topic 4

-Section E

+ Details

INCOME TAXES

12 Months Ended

Dec. 31, 2011

INCOME TAXES

NOTE F – INCOME TAXES

Provision for Income Taxes

The reconciliation between our provision for income taxes and the amounts computed by multiplying our income (loss) before taxes by the U.S. statutory tax rate is as follows:

	December 31,
	2011			2010			2009
	(in thousands)
Tax (benefit) at U.S. statutory 34% tax rate	$	3,510		$	(4,320	)	$	(4,541	)
State taxes (benefit), net of federal effect		6			(56	)		(416	)
Research and development tax credits		(77	)		(45	)		(100	)
Wage reported share-based compensation		(307	)		0			(587	)
Stock compensation		626			-			-
Other		(362	)		(315	)		(330	)
Change in valuation allowance		(3,863	)		4,748			8,453
Provision for income taxes	$	147		$	11		$	2,479

Tax expense for 2011 is federal alternative minimum taxes (“AMT”) and current state taxes. The tax expense for 2010 is current state taxes and for 2009 it is deferred taxes.

Deferred Tax Assets and Valuation Allowance

Deferred tax assets reflect the tax effects of net operating losses (“NOLs”), tax credit carryovers, and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The most significant item of our deferred tax assets is derived from our Federal NOLs. We have approximately $23.0 million federal income tax benefits at December 31, 2011 derived from $67.6 million Federal NOLs at the U.S. statutory tax rate of 34%, available to offset future taxable income, some of which have limitations for use as prescribed under IRC Section 382. Our NOLs will expire in varying amounts between 2012 and 2030 if not used, and those expirations will cause fluctuations in our valuation allowances. The components of our deferred tax assets are as follows:

	December 31,
	2011			2010
	(in thousands)
Deferred tax assets:
Estimated future value of NOLs
- Federal	$	22,963		$	25,101
- State		4,179			3,260
Research and development tax credits		887			234
Deferred program fee revenue		0			183
Share-based compensation		4,628			7,704
Other, net		(8	)		30
Total deferred taxes		32,649			36,512
Valuation allowance		(32,649	)		(36,512	)
Net deferred tax assets	$	0		$	0

Realization of deferred tax assets is dependent upon future earnings, if any, and the timing and amount of which may be uncertain. Valuation allowances are placed on deferred tax assets when uncertainty exists on their near term utilization. We make periodic reviews of our valuation allowances and fluctuations can occur. Those fluctuations may be reflected as income tax expenses or benefits in the period they occur. In 2009, we increased the valuation allowance by $2.5 million for the then available deferred tax assets and also placed a valuation allowance against the 2009 and 2010 operating results. In 2011 we decreased our valuation allowance to utilize the NOLs to offset our taxable income from our 2011 operating results; however we still incurred an AMT liability. We continue to maintain full valuation allowance against all of our deferred tax assets at December 31, 2011 due to uncertainties with respect to future utilization of net operating loss carryforwards. If in the future it is determined that amounts of our deferred tax assets would likely be realized, the valuation allowance would be reduced in the period in which such determination is made and a benefit from income taxes in such period would be recognized.

Uncertainty in Income Taxes

We adopted FASB’s statement regarding accounting for uncertainty in income taxes which defined the threshold for recognizing the benefits of tax-return positions in the financial statements as "more-likely-than-not" to be sustained by the taxing authorities. Our adoption of the standard did not result in establishing a contingent tax liability reserve or a corresponding charge to retained earnings. At each of December 31, 2011, 2010 and 2009, we had no liability for income tax associated with uncertain tax positions. If in the future we establish a contingent tax liability reserve related to uncertain tax positions, our practice will be to recognize the interest in interest expense and the penalties in other non-operating expense.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 08

-Paragraph h

-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 136, 172

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 43, 44, 45, 46, 47, 48, 49

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Reference 4: http://www.xbrl.org/2003/role/presentationRef

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-Paragraph 1

-Subparagraph (SX 210.4-08.(h))

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-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

+ Details

EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2011

EMPLOYEE BENEFIT PLANS

NOTE G – EMPLOYEE BENEFIT PLANS

401(k) and Profit-Sharing Plan

We have a 401(k) and Profit-Sharing Plan (the “Plan”) for our employees. Employees may elect to make a basic contribution of up to 15% of their annual earnings. The Plan provides that the Company can make discretionary matching contributions equal to 25% of the first 6% of employee contributions for an aggregate employee contribution of 1.5%, along with a discretionary profit-sharing contribution. We did not contribute matching or profit sharing contributions for the Plan in years 2011, 2010, and 2009.

Stock Option Plans

We maintain various stock option plans. A summary of our stock option plans as of December 31, 2011, 2010, and 2009, and for the years then ended consisted of the following:

	Years Ended December 31,
	2011					2010					2009
	(in thousands except per share data)
	Number of Options (000’s)			Weighted Average Exercise Price		Number of Options (000’s)			Weighted Average Exercise Price		Number of Options (000’s)			Weighted Average Exercise Price
Outstanding, beginning		4,243		$	5.40		3,671		$	5.90		2,968		$	4.93
Granted		491			3.63		649			3.36		1,312			6.38
Exercised		(1,102	)		1.33		0			0		(525	)		1.30
Forfeited or expired		(76	)		3.15		(77	)		10.10		(84	)		7.95
Outstanding, ending		3,556		$	6.41		4,243		$	5.40		3,671		$	5.90
Options exercisable		2,962		$	7.01		3,528		$	5.71		2,712		$	5.49

The following table summarizes information about nonvested stock options outstanding at December 31, 2011:

	Number of Options Not Exercisable (000)’s			Weighted Average Fair Value
	(in thousands except per share data)
Outstanding at December 31, 2010		715		$	3.64
Granted		491			3.39
Vested		(546	)		4.18
Forfeited		(66	)		3.02
Outstanding at December 31, 2011		594		$	3.22

We estimate the option’s fair value on the date of grant using the Black-Scholes option-pricing model. Black-Scholes utilizes assumptions related to volatility, the risk-free interest rate, the dividend yield (which is assumed to be zero, as we have not paid any cash dividends) and employee exercise behavior. Expected volatilities utilized in the Black-Scholes model are based on the historical volatility of our common stock price. The risk-free interest rate is derived from the U.S. Treasury yield curve in effect at the time of grant. The expected life of the grants is derived from historical exercise activity. Historically, our stock options have been held until their expiration date. The assumptions used in the Black-Scholes model to determine fair value for the 2011, 2010 and 2009 stock option grants were:

	2011		2010		2009

Expected dividend yield		0.0%		0.0%		0.0%
Risk-free interest rates		1.9% to 3.4%		3.5% to 3.9%		2.4% to 3.1%
Average expected volatility		114%		119%		124%
Expected term (years)		10		10		10
Weighted average grant date fair value	$	3.39	$	3.18	$	6.06

As of December 31, 2011, 2010, and 2009 the aggregate intrinsic value of the option awards vested was $0.3 million, $2.4 million and $4.8 million, respectively. In addition, the aggregate intrinsic value of option awards exercised during the year ended December 31, 2011 and 2009 was $2.7 million and $1.7 million, respectively. There were no options exercised in 2010. The total remaining unrecognized compensation cost related to the unvested option awards at December 31, 2011 was $2.0 million and is expected to be recognized in varying amounts over the 23 months remaining in the requisite service period. During 2011 options to purchase 935 shares of common stock were exercised utilizing various cashless exercise features of our stock option plan and after withholding shares for $887 in statutory minimum payroll taxes and $1,252 in exercise costs, we issued 381 shares of common stock. During 2009 options to purchase 525 shares of common stock were exercised in cashless exercise transactions and after withholding shares for statutory minimum payroll taxes calculated at $685, we issued 225 shares of common stock.

Restricted Stock Unit Award Plan

We have a Restricted Stock Unit Award Plan (“2005 RSU Plan”) for our employees and non-employee directors. Vesting of an RSU entitles the holder to receive a share of common stock of the Company on a distribution date. A summary of the RSU Plan as of December 31, 2011, 2010, and 2009, and for the years then ended consisted of the following:

	Years Ended December 31,
	2011						2010				2009
	(in thousands)
	Number of RSUs			Number of Vested RSUs			Number of RSUs		Number of Vested RSUs		Number of RSUs			Number of Vested RSUs
Outstanding, beginning		3,316			3,267			3,316		3,112		3,000			2,970
Granted		0			0			0		0		330			0
Distributed		(829	)		(829	)		0		0		0			0
Vested		0			49			0		155		0			142
Forfeited or expired		0			0			0		0		(17	)		0
Outstanding, ending		2,487			2,487			3,316		3,267		3,316			3,112

The share-based compensation cost to be incurred on the RSUs is the RSU’s fair value, which is the market price of the Company’s common stock on the date of grant, less its exercise cost. The fair value of the RSU grants made in 2009 and 2008 was $2.1 million and $0.4 million, respectively. The weighted average fair value of a RSU outstanding at December 31, 2011 is $3.83.

The 2005 RSU Plan provides that upon a change in control of the Company or upon termination of an employee’s employment with the Company without cause, vesting will accelerate and the RSUs will fully vest. Absent a change of control, one-fourth of vested shares of common stock underlying an RSU award will be distributed (after payment of $0.01 par value per share) on January 1 of each of 2011, 2012, 2013 and 2014. If a change in control occurs, the vested shares underlying the RSU award will be distributed at or about the time of the change in control. On January 1, 2011, 0.54 million vested shares were distributed to the holders while 0.29 million shares were withheld by the Company upon elections made to exchange RSUs in satisfaction of $1.0 million withholding tax obligations. On January 1, 2012, 0.54 million vested shares were distributed to the holders while 0.29 million shares were withheld by the Company upon elections made to exchange RSUs in satisfaction of $0.9 million withholding tax obligations.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 123R

-Paragraph 64, 65, A240

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Statement of Position (SOP)

-Number 93-6

-Paragraph 53

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Staff Accounting Bulletin (SAB)

-Number Topic 14

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 50

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

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-Publisher FASB

-Name Accounting Standards Codification

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-Paragraph 1

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Reference 7: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

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-Paragraph 4

-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

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-Topic 718

-SubTopic 40

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

+ Details

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2011

COMMITMENTS AND CONTINGENCIES

NOTE H – COMMITMENTS AND CONTINGENCIES

Securities Class Action and Derivative Litigation

A lawsuit captioned Bang v. Acura Pharmaceuticals, et al, was filed on September 10, 2010 in the United States District Court for the Northern District of Illinois, Eastern Division (Case 1:10-cv-05757) against us and certain of our current and former officers seeking unspecified damages on behalf of a putative class of persons who purchased our common stock (the “Affected Securities”) between February 21, 2006 and April 22, 2010 (the “Plaintiff Class”). The complaint alleged that certain Company officers made false or misleading statements, or failed to disclose material facts in order to make statements not misleading, relating to our Acurox^® with Niacin Tablet product candidate, resulting in violations of Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”), Rule 10b-5 under the Exchange Act and Section 20(a) of the Exchange Act. The complaint further alleges that such false or misleading statements or omissions had the effect of artificially inflating the price of our common stock. On March 14, 2011, an amended complaint was filed in this lawsuit. The amended complaint asserts the same claims as the initial complaint based upon the same alleged false or misleading statements, and has added three of our current directors as defendants. The Court has changed the caption of this case to In re Acura Pharmaceuticals, Inc. Securities Litigation. We filed a motion to dismiss this case on May 13, 2011.

On October 31, 2011, we entered into a Stipulation of Settlement (“Stipulation”) providing for the release of all claims against the Company and its named directors and officers (the “Defendants”) in this case, for a payment of $1.5 million. The Company and the individual defendants continue to deny all charges of wrongdoing or liability against them relating to this action and the Stipulation does not contain or constitute any admission or finding of wrongful conduct, acts or omissions on the part of any Defendant. On December 16, 2011 our insurance carrier paid the $1.5 million settlement amount into an escrow account to fund the settlement.

In consideration of the payment of the settlement amount, the Plaintiff Class has agreed, upon final approval by the court, to dismiss the class action with prejudice and release all known and unknown claims arising out of or relating to, or in connection with the purchase or acquisition of the Affected Securities during the class period which have been or could have been asserted by the members of the Plaintiff Class. On February 16, 2012, the court entered final approval of the settlement reflected in the Stipulation.

On October 25, 2010, Kiley Hill, a purported stockholder of the Company filed a shareholder derivative action in the Circuit Court of Cook County, Illinois, Chancery Division captioned Hill v. Acura Pharmaceuticals et al. (Case No. 2010-CH-46380), against our directors and certain of our executive officers, generally relating to the same events that are the subject of the class action litigation described above. The complaint purports to be brought on our behalf and names us as a nominal defendant. The complaint seeks unspecified damages from the individual defendants for breaches of fiduciary duty, abuse of control, gross mismanagement, contribution and indemnification, waste of corporate assets and unjust enrichment for actions occurring from at least February 21, 2006 through April 22, 2010. Substantively similar complaints captioned Hagan v. Acura Pharmaceuticals et al. (Case No. 2010-CH-46621) and Newell v. Reddick et al (Case No. 2010-CH-46873) were filed in the Circuit Court of Cook County, Illinois, Chancery Division, by other purported stockholders of the Company on October 27, 2010 and October 28, 2010, respectively. We filed a notion to dismiss these shareholder derivative actions on November 23, 2011.

Reglan®/Metoclopramide Litigation

Halsey Drug Company, as predecessor to us, has been named along with numerous other companies as a defendant in cases filed in three separate state coordinated litigations pending in Pennsylvania, New Jersey and California, respectively captioned In re: Reglan®/Metoclopramide Mass Tort Litigation, Philadelphia County Court of Common Pleas, January Term, 2010, No. 01997; In re: Reglan® Litigation, Superior Court of New Jersey, Law Division, Atlantic County, Case No. 289, Master Docket No. ATL-L-3865-10; and Reglan®/Metoclopramide Cases, Superior Court of California, San Francisco County, Judicial Council Coordination Proceeding No. 4631, Superior Court No.: CJC-10-004631. In this product liability litigation against numerous pharmaceutical product manufacturers and distributors, including us, plaintiffs claim injuries from their use of the Reglan brand of metoclopramide and generic metoclopramide. In the Pennsylvania state court mass tort proceeding, over 200 lawsuits have been filed against us and Halsey Drug Company alleging that plaintiffs developed neurological disorders as a result of their use of the Reglan brand and/or generic metoclopramide. Plaintiffs have filed approximately 150 lawsuits against us, but have served less than 50 individual lawsuits upon us in the New Jersey action. In the California action, we were not served with any complaints until the Spring of 2011 when a single complaint including over 400 plaintiffs was served. To date, Acura has not been served with any metoclopramide lawsuits in jurisdictions other than Philadelphia, New Jersey and California state courts.

In the lawsuits filed to date, plaintiffs have not confirmed they ingested any of the generic metoclopramide manufactured by us. We discontinued manufacture and distribution of generic metoclopramide more than 15 years ago. In addition, we believe the June 23, 2011 decision by the U.S. Supreme Court in PLIVA v. Mensing (“Mensing decision”) holding that state tort law failure to warn claims against generic drug companies are pre-empted by the 1984 Hatch-Waxman Act Amendments and federal drug regulations will assist us in favorably resolving these cases. We have consistently maintained the position that these claims are without merit and intend to vigorously defend these actions.

In Philadelphia, New Jersey and California, Generic Defendants, including Acura, have filed dispositive motions based on the Mensing decision. The New Jersey and California courts are expected to issue their rulings later this year. On November 18, 2011, the Philadelphia trial court denied Generic Defendants’ dispositive motion. In December 2011, the Generic Defendants appealed this ruling, which the trial court refused to modify on reconsideration. Nonetheless, the trial court has approved certification of the federal preemption issues based on the Mensing decision for immediate appeal to the Pennsylvania Superior Court. A decision on this appeal should be issued later this year which could result in dismissal of all of the Philadelphia cases against Generic Defendants, although there can be no assurance in this regard. As any potential loss is neither probable or estimable, we have not accrued for any potential loss related to this matter as of December 31, 2011. Legal fee related to this matter are currently covered by our insurance carrier.

Statutory Minimum Withholding Tax Obligations

Under our stock option plans and our 2005 RSU plan, our employees may elect to have shares withheld upon exercise of options and upon the exchange of RSUs in satisfaction of the statutory minimum withholding tax obligations of such employees relating to such option exercises or RSU exchanges. During 2011, elections were made to have 0.29 million of common shares withheld by the Company upon the exchange of RSUs in satisfaction of $1.0 million in withholding tax obligations and other elections were made to have 0.23 million common shares withheld by the Company upon the exercise of options in satisfaction of $0.9 million in withholding tax obligations. On January 1, 2012, elections were made to have 0.29 million of common shares withheld by the Company upon the exchange of RSUs in satisfaction of $1.1 million in withholding tax obligations.

Financial Advisor Agreement

In connection with our August 2007 Unit Offering, we are obligated to pay a fee to our then financial advisor upon each exercise of the warrants issued in the Unit Offering, in proportion to the number of warrants exercised. The amount of the fee assuming 100% exercise of the remaining 1.9 million warrants is $0.38 million. We have not reflected this obligation as a liability in our consolidated financial statements as the payment is contingent upon the timing and exercise of the warrants by each of the warrant holders. Such fee, if any, will be paid to the financial advisor and be offset against the equity proceeds as the warrants are exercised.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Interpretation (FIN)

-Number 14

-Paragraph 3

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

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+ Details

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

12 Months Ended

Dec. 31, 2011

SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

NOTE I – SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

	Three Month Period Ended
	(in thousands except per share data)
Calendar Year 2011	Mar. 31			Jun. 30		Sept. 30			Dec. 31
Total revenue (i)	$	233		$	20,233	$	0		$	0
Income (loss) from operations		(2,834	)		17,362		(2,147	)		(1,847	)
Net income (loss)		(2,857	)		17,029		(2,141	)		(1,646	)
Income (loss) per common share Basic	$	(0.06	)	$	0.36	$	(0.05	)	$	(0.03	)
Diluted	$	(0.06	)	$	0.35	$	(0.05	)	$	(0.03	)

Calendar Year 2010		Mar. 31			Jun. 30			Sept. 30			Dec. 31
Total revenue (i)	$	2,040		$	620		$	292		$	359
Loss from operations		(4,035	)		(3,186	)		(2,566	)		(2,937	)
Net loss		(4,035	)		(3,192	)		(2,553	)		(2,927	)
Loss per common share - basic and diluted	$	(0.09	)	$	(0.07	)	$	(0.05	)	$	(0.06	)

(i) See Note A(7) for revenue recognition.

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References+ Details