0001104659-21-106351 | 10-Q | XBRL Viewer | Acura Pharmaceuticals INC

DEBT	6 Months Ended
Jun. 30, 2021
DEBT
DEBT	NOTE 7 – DEBT Related Party Convertible Loan At December 31, 2018, we had borrowed an aggregate of $4.35 million from Mr. Schutte, a related-party. From January 1, 2019 and through June 27, 2019, we borrowed additional amounts from Mr. Schutte for $650 thousand and issued various promissory notes to him with the same terms and conditions from the previous loans (the Schutte Notes).On June 28, 2019 we restructured the $5.0 million loan to borrow an additional $725 thousand from Mr. Schutte bringing the aggregate principal of the loans and accrued interest to $6.0 million, and consolidated the loans into a single promissory note with a fixed interest rate of 7.5%, maturity date of July 1, 2023, granted principal and interest conversion rights into shares of our common stock at a price of $0.16 per share, issued a warrant for 10.0 million common shares having an exercise price of $0.01 per share, and granted a security interest in all of the Company’s assets, which includes our intellectual property. The principal amount of the loan is convertible into 37.5 million shares of our common stock. The $6.0 million convertible debt, the common stock purchase warrant and the security agreement were all assigned and transferred by Mr. Schutte to AD Pharma on June 28, 2019. Interest expense was $87 thousand and $113 thousand for each of the three month periods ended June 30, 2021 and 2020, respectively,and was $200 thousand and $225 thousand for each of the six month periods ended June 30, 2021 and 2020, respectively. On June 9, 2021, we received notice of conversion from AD Pharma for the $6.0 million Promissory Note and approximately $877 thousand of accrued but unpaid interest. The principal and interest were converted into 42,984,375 shares of the Company’s common stock. Effective with this conversion, the Promissory Note is retired and the Company is working with AD Pharma to release their security interest in all the Company’s assets. AD Pharma directly owns approximately 66% of our common stock at June 30, 2021. Paycheck Protection Program 1^st PPP Loan On April 13, 2020, the Company received a loan (the “1^st Loan”) from JP Morgan Chase Bank in the aggregate amount of $269 thousand, pursuant to the Paycheck Protection Program (“PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The 1^st Loan, in the form of a promissory note, matures on April 8, 2022. Under the terms of the PPP, certain amounts of the 1^st Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. The Company was not yet approved for forgiveness under the PPP as of June 30, 2021; however such was forgiven by the Small Business Administration in July, 2021. 2^nd PPP Loan On March 16, 2021, the Company received a loan (the “2^nd Loan”) from JP Morgan Chase Bank in the aggregate amount of $266 thousand, pursuant to the PPP under Division A, Title I of the CARES Act. The 2^nd Loan, in the form of a promissory note, matures after five years. Under the terms of the PPP, certain amounts of the 2^nd Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. To the extent that all or part of the 2^nd Loan is not forgiven, the Company will be required to make payments, including interest accruing at an annual rate of 1.0% beginning on the date of disbursement. The receipt of these funds, and the forgiveness of the loans attendant to these funds, is dependent on the Company having initially qualified for these loans and qualifying for the forgiveness of such loans is based on adherence to the forgiveness criteria. No assurance is provided that forgiveness for any portion of the 2^nd Loan will be obtained.

DEBT

6 Months Ended

Jun. 30, 2021

NOTE 7 – DEBT

Related Party Convertible Loan

At December 31, 2018, we had borrowed an aggregate of $4.35 million from Mr. Schutte, a related-party. From January 1, 2019 and through June 27, 2019, we borrowed additional amounts from Mr. Schutte for $650 thousand and issued various promissory notes to him with the same terms and conditions from the previous loans (the Schutte Notes).On June 28, 2019 we restructured the $5.0 million loan to borrow an additional $725 thousand from Mr. Schutte bringing the aggregate principal of the loans and accrued interest to $6.0 million, and consolidated the loans into a single promissory note with a fixed interest rate of 7.5%, maturity date of July 1, 2023, granted principal and interest conversion rights into shares of our common stock at a price of $0.16 per share, issued a warrant for 10.0 million common shares having an exercise price of $0.01 per share, and granted a security interest in all of the Company’s assets, which includes our intellectual property. The principal amount of the loan is convertible into 37.5 million shares of our common stock. The $6.0 million convertible debt, the common stock purchase warrant and the security agreement were all assigned and transferred by Mr. Schutte to AD Pharma on June 28, 2019. Interest expense was $87 thousand and $113 thousand for each of the three month periods ended June 30, 2021 and 2020, respectively,and was $200 thousand and $225 thousand for each of the six month periods ended June 30, 2021 and 2020, respectively.

On June 9, 2021, we received notice of conversion from AD Pharma for the $6.0 million Promissory Note and approximately $877 thousand of accrued but unpaid interest. The principal and interest were converted into 42,984,375 shares of the Company’s common stock. Effective with this conversion, the Promissory Note is retired and the Company is working with AD Pharma to release their security interest in all the Company’s assets. AD Pharma directly owns approximately 66% of our common stock at June 30, 2021.

Paycheck Protection Program

1^st PPP Loan

On April 13, 2020, the Company received a loan (the “1^st Loan”) from JP Morgan Chase Bank in the aggregate amount of $269 thousand, pursuant to the Paycheck Protection Program (“PPP”) under Division A, Title I of the CARES Act, which was enacted March 27, 2020. The 1^st Loan, in the form of a promissory note, matures on April 8, 2022. Under the terms of the PPP, certain amounts of the 1^st Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. The Company was not yet approved for forgiveness under the PPP as of June 30, 2021; however such was forgiven by the Small Business Administration in July, 2021.

2^nd PPP Loan

On March 16, 2021, the Company received a loan (the “2^nd Loan”) from JP Morgan Chase Bank in the aggregate amount of $266 thousand, pursuant to the PPP under Division A, Title I of the CARES Act. The 2^nd Loan, in the form of a promissory note, matures after five years. Under the terms of the PPP, certain amounts of the 2^nd Loan may be forgiven if they are used for qualifying expenses as described in the CARES Act. To the extent that all or part of the 2^nd Loan is not forgiven, the Company will be required to make payments, including interest accruing at an annual rate of 1.0% beginning on the date of disbursement. The receipt of these funds, and the forgiveness of the loans attendant to these funds, is dependent on the Company having initially qualified for these loans and qualifying for the forgiveness of such loans is based on adherence to the forgiveness criteria. No assurance is provided that forgiveness for any portion of the 2^nd Loan will be obtained.

PROPERTY, PLANT AND EQUIPMENT (Tables)

6 Months Ended

Jun. 30, 2021

PROPERTY, PLANT AND EQUIPMENT

Schedule of Property, Plant and equipment

Property, plant and equipment is summarized as follows (in thousands):


	June 30,		December 31,
	2021		2020

	(in thousands)
Building and improvements	$	1,273	$	1,273
Scientific equipment		597		597
Computer hardware and software		105		106
Machinery and equipment		274		274
Land and improvements		162		162
Other personal property		70		70
Office equipment		27		27
Total		2,508		2,509
Less: accumulated depreciation		(2,047)		(2,025)
Net property, plant and equipment	$	461	$	484

ACCRUED EXPENSES (Tables)

6 Months Ended

Jun. 30, 2021

ACCRUED EXPENSES

Schedule of Accrued expenses

Accrued expenses are summarized as follows (in thousands):


	June 30,		December 31,
	2021		2020

	(in thousands)
Cost sharing expenses under license agreements	$	428	$	428
Other fees and services		22		24
Payroll, payroll taxes and benefits		48		8
Professional services		141		117
Financed premiums on insurance policies		—		28
Property taxes		4		9
Franchise taxes		30		17
Total	$	673	$	631

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash Flows from Operating Activities:
Net (loss) income	$ (646)	$ (287)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation	23	29
Non-cash stock-based compensation	29	18
Amortization of intangible asset	13	57
Impairment charge on intangible asset	0	668
Changes in assets and liabilities:
Royalty receivable	30	52
Collaboration revenue receivable from related party	83	29
License fee receivable from related party	(600)	(700)
Prepaid expenses and other current assets	111	67
Accounts payable	174	(96)
Accrued expenses	42	60
Sales returns liability	0	(223)
Accrued interest on related party loans	199	225
Other current liabilities	35	7
Net cash used in operating activities	(507)	(94)
Cash Flows from Financing Activities:
Proceeds from distribution of restricted stock units	3	3
Statutory minimum payroll withholding taxes paid on the distribution of shares pursuant to RSU award plan	(8)	(2)
Proceeds from loan under CARES Act	266	269
Net cash provided by financing activities	261	270
Net (decrease) increase in cash	(246)	176
Cash at beginning of period	413	862
Cash at end of end of period	167	1,038
Supplemental Disclosures of Cash Flow Information:
Cash paid for income taxes	0	0
Cash paid for interest	$ 0	$ 0

REVENUE FROM CONTRACTS WITH CUSTOMERS

6 Months Ended

Jun. 30, 2021

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERS

NOTE 3 – REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenue is recognized when, or as, performance obligations under terms of a contract are satisfied, which occurs when control of the promised service is transferred to a customer. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring services to a customer (“transaction price”). The Company will then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when, or as, the performance obligation is satisfied. When determining the transaction price of the contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. None of the Company’s licenses and collaboration agreements contained a significant financing component at either June 30, 2021 or December 31, 2020.

The Company’s existing license and collaboration agreements may contain a single performance obligation or may contain multiple performance obligations. Those which contain multiple performance obligations will require an allocation of the transaction price based on the estimated relative standalone selling prices of the promised services underlying each performance obligation.

The Company’s existing license and collaboration agreements contain customer options for the license of additional products and territories. We determined the option’s standalone selling prices based on the option product’s potential market size in the option territory as compared to the currently licensed product and U.S. territory. Some of our existing license and collaboration agreements contain a license to the technology as well as licenses to tradenames or trademarks. The Company determined that the licenses to the tradenames or trademarks were immaterial in context of the contract. Price adjustments are accounted for as variable consideration. Provisions for variable consideration are based on current assumptions, executed contracts, and historical data and are provided for in the period the related revenues are recorded.

Sales-based Milestones and Royalty Revenues

The commercial sales-based milestones and sales royalties earned under the license and collaboration for Oxaydo and sales royalties earned under the license for the Nexafed products, are recorded in the period of the related sales by Assertio and MainPointe. Payments of sales-based milestones are generally due within 30 days after the end of a calendar year. Payments of royalties are generally due within 45 days after the end of a calendar quarter.

License and Collaboration Agreement Revenues

The achievement of milestones under the Company’s license and collaboration agreements will be recorded as revenue during the period the milestone’s achievement becomes probable, which may result in earlier recognition as compared to the previous accounting standards. The license fee of an option product or option territory under the Company’s license and collaboration agreements will be recorded as revenue when the option is exercised and any obligations on behalf of the Company, such as to transfer know-how, has been fulfilled. The monthly license fee under the Company’s LTX-03 license and collaboration agreement will be recorded as revenue upon the fulfillment of the monthly development activities. The out-of-pocket development expenses under the license and collaboration agreements will be recorded as revenue upon the performance of the service or delivery of the material during the month.

On June 28, 2019 we announced a License, Development and Commercialization Agreement, as amended in October 2020 and in July 2021 (the “AD Pharma Amended Agreement”), with Abuse Deterrent Pharma, LLC (“AD Pharma”), The AD Pharma Amended Agreement required AD Pharma to pay us a monthly license payment of $350 thousand for a period from inception up to April 2020 at which time the payment became $200 thousand per month and ended on July 31, 2021, and to reimburse us all our outside development costs for LTX-03. On each of July 1, 2021, July 8, 2021, and August 4, 2021 we received from AD Pharma the $200 thousand payment for the February 2021, March 2021, and April 2021 license fees, respectively. AD Pharma is delinquent in remitting monthly license payments for May, 2021 thru July, 2021 which aggregates to $0.6 million, and approximately $97 thousand of reimbursable LTX-03 development expenses. Failure to make these payments is an event of default under the AD Pharma Amended Agreement.

Product Sales, net of allowance

Nexafed was launched in mid-December 2012 and Nexafed Sinus Pressure + Pain was launched in February 2015. Prior to entering into the MainPointe Agreement in March 2017, we sold our Nexafed products in the United States to wholesale pharmaceutical distributors as well as directly to chain drug stores. Our Nexafed products were sold subject to the right of return usually for a period of up to twelve months after the product expiration. During the second quarter 2020, we reviewed our product sales return allowance liability and recorded a $223 thousand favorable amount to product sales as we believe sufficient time has passed where the Nexafed product is no longer subject to right of return and we estimate no additional product will be returned and therefore, we no longer maintain a sales return allowance liability.

Disaggregation of Total Revenues

The Company has two license agreements for currently marketed products containing its technologies; the Oxaydo product containing the Aversion Technology has been licensed to Assertio and the Nexafed products containing the Impede Technology which have been licensed to MainPointe. The Company has a third license agreement having a product under development, LTX-03, containing its LIMITx™ technology to AD Pharma. We have recorded $0.6 million and $1.05 million of license fees for LTX-03 during the three months ended June 30, 2021 and 2020, respectively. We have recorded $1.2 million and $2.1 million of license fees for LTX-03 during the six months ended June 30, 2021 and 2020, respectively.

On January 1, 2020, MainPointe assigned to AD Pharma, with Acura’s consent, all of its right, title and interest in the MainPointe Agreement between MainPointe and Acura; which was rescinded by AD Pharma in October 2020. All of the Company’s royalty revenues are earned from these two license agreements by the licensee’s sale of products in the United States.

Royalty revenues by licensee are summarized below:


	Three months Ended				Six months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Assertio (Oxaydo)	$	3	$	31	$	33	$	61
MainPointe - related party (Nexafed)		—		3		2		6
Royalty revenues	$	3	$	34	$	35	$	67

Contract Balance and Performance Obligations

The Company had no contract assets and contract liability balances under the license and collaboration agreements at either June 30, 2021 or 2020. Contract assets may be reported in future periods under prepaid expenses or other current assets on the consolidated balance sheet. Contract liabilities may be reported in future periods consisting of deferred revenue as presented on the consolidated balance sheet.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

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+ Details

SHARE-BASED COMPENSATION EXPENSE - Summary of RSU Plan (Details) - shares shares in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Restricted Stock Units
Share based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, beginning	839	1,017
Granted	267	219
Distributed	(447)	(397)
Vested	0	0
Forfeited	0	0
Outstanding, ending	659	839
Vested Restricted Stock Units (RSUs)
Share based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, beginning	839	1,017
Granted	0	0
Distributed	(447)	(397)
Vested	133	110
Forfeited	0	0
Outstanding, ending	525	730

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2021	Dec. 31, 2020
CONSOLIDATED BALANCE SHEETS
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	65,089	21,650
Common stock, shares outstanding	65,089	21,650

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands						3 Months Ended	4 Months Ended	6 Months Ended	10 Months Ended	12 Months Ended	15 Months Ended
	Aug. 04, 2021	Jul. 08, 2021	Jul. 01, 2021	Jun. 28, 2019	Oct. 09, 2015	Jul. 31, 2021	Jul. 31, 2021	Jun. 30, 2021	Apr. 29, 2020	Dec. 31, 2020	Jul. 31, 2021	Jun. 30, 2020	Dec. 31, 2019
Cash								$ 167		$ 413		$ 1,038	$ 862
Working Capital Deficit								200
Retained Earnings (Accumulated Deficit), Total								(389,850)		(389,204)
Income (loss) from operation								446		758
Net loss								$ (646)		$ (1,200)
Monthly license payment receivable					$ 5,000
AD Pharma Amended Agreement
Monthly license payments				$ 350
Monthly license payment receivable				$ 350					$ 350		$ 200
AD Pharma Amended Agreement \| Abuse Deterrent Pharma, LLC
Monthly license payments						$ 600
Reimbursable development expense						97
Monthly license payment receivable						$ 600	$ 600
Subsequent event \| AD Pharma Amended Agreement
Monthly license payment receivable	$ 200	$ 200	$ 200
Subsequent event \| AD Pharma Amended Agreement \| Abuse Deterrent Pharma, LLC
Monthly license payment receivable	$ 200	$ 200	$ 200								$ 200

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Total	$ 2,508	$ 2,509
Less: accumulated depreciation	(2,047)	(2,025)
Net property, plant and equipment	461	484
Building and improvements
Property, Plant and Equipment [Line Items]
Total	1,273	1,273
Scientific equipment
Property, Plant and Equipment [Line Items]
Total	597	597
Computer hardware and software
Property, Plant and Equipment [Line Items]
Total	105	106
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total	274	274
Land and improvements
Property, Plant and Equipment [Line Items]
Total	162	162
Other personal property
Property, Plant and Equipment [Line Items]
Total	70	70
Office equipment
Property, Plant and Equipment [Line Items]
Total	$ 27	$ 27

LICENSE AND COLLABORATION AGREEMENTS (Tables)

6 Months Ended

Jun. 30, 2021

LICENSE AND COLLABORATION AGREEMENTS

Summary of Aversion intangible asset

The Aversion intangible asset is summarized as follows (in thousands):


	June 30,		December 31,
	2021		2020
Intangible asset – Aversion		2,000		2,000
Less: accumulated amortization		(1,272)		(1,259)
Less: reserve for impairment		(668)		(668)
Net	$	60	$	73

INCOME TAXES

6 Months Ended

Jun. 30, 2021

INCOME TAXES

INCOME TAXES

NOTE 12 – 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 financial reporting and income tax basis of assets and liabilities and are accounted for using the enacted income tax rates and laws that will be in effect when the differences are expected to reverse.

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 $138 million gross Federal NOLs at June 30, 2021. On June 9, 2021 we believe the conversion for the $6.0 million Promissory Note and approximately $877 thousand of accrued but unpaid interest into 42,984,375 shares of the Company’s common stock created another qualifying event under IRC 382 which will most likely continue to further limit our utilization of our NOLs. We believe the gross Federal NOL benefit we generated prior to January 1, 2018 available to offset taxable income and prior to the June 9, 2021 conversion, was less than $150 thousand annually. As prescribed under Internal Revenue Code, any unused Federal NOL benefit from the annual limitation can be accumulated and carried forward to the subsequent year and will expire if not used in accordance with the NOL carried forward term of 20 years or 2037, if generated before 2018 while our Federal NOLs generated after 2017 can be carried forward indefinitely. Future common stock transactions, such as the exercise of common stock purchase warrants, may cause another qualifying event under IRC 382 which will most likely continue to further limit our utilization of our NOLs.

The realization of deferred income tax assets is dependent upon future earnings, if any, and the timing and amount of which may be uncertain. 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. At June 30, 2021 and December 31, 2020, all our remaining net deferred income tax assets were offset by a valuation allowance due to uncertainties with respect to future utilization of NOL 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.

- 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 + Details

PROPERTY, PLANT AND EQUIPMENT

6 Months Ended

Jun. 30, 2021

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

NOTE 5 – PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment is summarized as follows (in thousands):


	June 30,		December 31,
	2021		2020

	(in thousands)
Building and improvements	$	1,273	$	1,273
Scientific equipment		597		597
Computer hardware and software		105		106
Machinery and equipment		274		274
Land and improvements		162		162
Other personal property		70		70
Office equipment		27		27
Total		2,508		2,509
Less: accumulated depreciation		(2,047)		(2,025)
Net property, plant and equipment	$	461	$	484

We do not have leasehold improvements. Costs of betterments are capitalized while maintenance costs and repair costs are charged to operations as incurred. When a depreciable asset is retired from service, the cost and accumulated depreciation will be removed from the respective accounts.

Depreciation expense was $11 thousand and $14 thousand for each of the three month periods ended June 30, 2021 and 2020, respectively. Depreciation expense was $23 thousand and $29 thousand for each of the six month periods ended June 30, 2021 and 2020, respectively.

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Jun. 30, 2021	Aug. 13, 2021
Document And Entity Information
Document Type	10-Q
Document Period End Date	Jun. 30, 2021
Entity Registrant Name	ACURA PHARMACEUTICALS, INC
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	1-10113
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	11-0853640
Entity Address, Address Line One	616 N. North Court, Suite 120,
Entity Address, City or Town	Palatine
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60067
City Area Code	847
Local Phone Number	705-7709
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	ACUR
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		65,089,043
Entity Central Index Key	0000786947
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Amendment Flag	false

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2021

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1 – OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principal Operations

Acura Pharmaceuticals, Inc., a New York corporation, and its subsidiary (the “Company”, “Acura”, “We”, “Us” or “Our”) We are an innovative drug delivery company engaged in the research, development and commercialization of technologies and products intended to address safe use of medications. We have discovered and developed three proprietary platform technologies which can be used to develop multiple products. Our Limitx™ Technology is being developed to minimize the risk of overdose, our Aversion® Technology is intended to address methods of abuse associated with opioid analgesics while our Impede® Technology is directed at minimizing the extraction and conversion of pseudoephedrine , or PSE, into methamphetamine. Oxaydo Tablets (oxycodone HCl, CII), which utilizes the Aversion Technology, is the first approved immediate-release oxycodone product in the United States with abuse deterrent labeling. Nexafed brand products utilize our Impede Technology.

●

Limitx, a development stage technology, is designed to retard the release of active drug ingredients when too many tablets are accidentally or purposefully ingested by neutralizing stomach acid with buffer ingredients but deliver efficacious amounts of drug when taken as a single tablet with a nominal buffer dose. The exclusive commercialization rights in the United States to LTX-03 as well as to LTX-02 (oxycodone/acetaminophen) and LTX-09 (alprazolam) are licensed to Abuse Deterrent Pharma, LLC (“AD Pharma”) (See Note 2).

●

Our Aversion Technology has been licensed to Assertio Holdings Inc. for use in Oxaydo® Tablets (oxycodone HCl, CII), and is the first approved immediate-release oxycodone product in the United States with abuse deterrent labeling. Oxaydo is currently approved by the FDA for marketing in the United States in 5mg and 7.5mg strengths (See Note 2).

●

Our Impede Technology is used in Nexafed® Tablets (30mg pseudoephedrine HCl) and Nexafed® Sinus Pressure + Pain Tablets (30/325mg pseudoephedrine HCl and acetaminophen). We have licensed to MainPointe Pharmaceuticals, LLC (MainPointe), our Impede Technology in the United States and Canada to commercialize these Nexafed products (See Note 2).

Basis of Presentation, Liquidity and Substantial Doubt in Going Concern

The accompanying consolidated financial statements of the Company have been prepared assuming the Company will continue as a going concern and in accordance with generally accepted accounting principles in the United States of America. The going concern basis of presentation assumes that we will continue in operation one year after the date these financial statements are issued and we will be able to realize our assets and discharge our liabilities and commitments in the normal course of business. As of June 30, 2021, we had cash of $167 thousand, working capital of $0.2 million and an accumulated deficit of $390 million. We had a loss from operations of $446 thousand and a net loss of $646 thousand for the six months ended June 30, 2021, and had a loss from operations of $758 thousand and a net loss of $1.2 million for the year ended December 31, 2020. We have suffered recurring losses from operations and have not generated positive cash flows from operations. We anticipate operating losses to continue for the foreseeable future.

On June 28, 2019 we announced a License, Development and Commercialization Agreement, as amended in October 2020 and in July 2021 (the “AD Pharma Amended Agreement”), with Abuse Deterrent Pharma, LLC (“AD Pharma”). The AD Pharma Amended Agreement required AD Pharma to pay us a monthly license payment of $350 thousand for a period from inception up to April 2020 at which time the payment became $200 thousand per month and continued through July 31, 2021, and to reimburse us all our outside development costs for LTX-03. On each of July 1, 2021, July 8, 2021, and August 4, 2021 we received from AD Pharma the $200 thousand payment for the February 2021, March 2021, and April 2021 license fees, respectively. AD Pharma is delinquent in remitting monthly license payments for May, 2021 thru July, 2021 which aggregates to $0.6 million, and approximately $97 thousand of reimbursable LTX-03 development expenses. Failure to make these payments is an event of default under the AD Pharma Amended Agreement.

The AD Pharma Amended Agreement, requires the NDA for LTX-03 be accepted by the FDA by February 28, 2022 or AD Pharma has the option to terminate the AD Pharma Amended Agreement and take ownership of the LIMITx intellectual property. The AD Pharma Amended Agreement allows AD Pharma to terminate the AD Pharma Amended Agreement “for convenience”.Whether or not AD Pharma exercises their right to terminate the AD Pharma Amended Agreement, we need to raise additional financing or enter into license or collaboration agreements with third parties relating to our technologies. No assurance can be given that we will be successful in obtaining any such financing or in securing license or collaboration agreements with third parties on acceptable terms, if at all, or if secured, that such financing or license or collaboration agreements will provide payments to the Company sufficient to fund continued operations. In the absence of such financing or third-party license or collaboration agreements, the Company will be required to scale back or terminate operations and/or seek protection under applicable bankruptcy laws. An extended delay or cessation of the Company’s continuing product development efforts will have a material adverse effect on the Company’s financial condition and results of operations.

In view of the matters described above, management has concluded that substantial doubt exists with respect to the Company’s ability to continue as a going concern within one year after the date the financial statements are issued.

In view of the matters described above, recoverability of a major portion of the recorded asset amounts shown in the Company’s accompanying balance sheets is dependent upon continued operations of the Company, which in turn is dependent upon the Company’s ability to meet its financing requirements on a continuous basis, to maintain existing financing and to succeed in its future operations. The Company’s financial statements do not include any adjustment relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.

Our future sources of revenue, if any, will be derived from licensing fees, milestone payments and royalties under the AD Pharma Amended Agreement, the Assertio Agreement, the MainPointe Agreement and similar agreements which we may enter into for our LIMITx products in development with other pharmaceutical company partners, for which there can be no assurance.

The amount and timing of our future cash requirements will depend on regulatory and market acceptance of our product candidates and the resources we devote to the development and commercialization of our product candidates.

COVID-19

On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus originating in Wuhan, China (the “COVID-19 outbreak”) and the risks to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic (“coronavirus pandemic”), based on the rapid increase in exposure globally. The coronavirus pandemic continues to affect the United States and global economies. If the outbreak continues, it may affect the Company’s operations and those of third parties on which the Company relies, including causing disruptions in the supply of the Company’s product candidates and the conduct of current and planned preclinical and clinical studies and contract manufacturing operations. We may need to limit operations or implement limitations, and may experience limitations in employee resources.

The extent to which the coronavirus impacts our results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the coronavirus and the actions by government authorities to contain the outbreak or treat its impact, the emergence of new COVID-19 variants, and the related potential for new surges in infections, and the distribution, public acceptance and efficacy of COVID-19 vaccines including for emerging variants. Additionally, while the potential economic impact brought by, and the duration of, the coronavirus pandemic is difficult to assess or predict, the impact of the coronavirus on the global financial markets may reduce the Company’s ability to access capital, which could negatively impact the Company’s short-term and long-term liquidity and the Company’s ability to complete its preclinical studies on a timely basis, or at all.

The ultimate impact of coronavirus is highly uncertain and subject to change. The Company does not yet know the full extent of potential delays or impacts on its business, financing, preclinical and clinical trial activities, contract manufacturing operations or the global economy as a whole. However, these effects could have a material, adverse impact on the Company’s liquidity, capital resources, operations and business and those of the third parties on which we rely.

LEASES

6 Months Ended

Jun. 30, 2021

LEASES

LEASES

NOTE 11 – LEASES

In June 2021, the Company entered into a finance lease for a scientific piece of equipment for a term of 24 months with equal monthly payment of $3 thousand.

The following table reflects supplemental balance sheet information related to the lease as of June 30, 2021 and December 31, 2020 (in thousands):


		June 30,		December 31,
	Financial Statement Classification	2021		2020

		(in thousands)
Assets
Finance lease right of use	Other long-term assets	$	66	$	—

Liabilities
Finance lease liability - current	Other current liabilities	$	33	$	—
Finance lease liability - noncurrent	Other long-term liabilities		33		—
Total lease liability			66	$	—

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

6 Months Ended

Jun. 30, 2021

REVENUE FROM CONTRACTS WITH CUSTOMERS

Schedule of disaggregation of revenue

Royalty revenues by licensee are summarized below:


	Three months Ended				Six months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Assertio (Oxaydo)	$	3	$	31	$	33	$	61
MainPointe - related party (Nexafed)		—		3		2		6
Royalty revenues	$	3	$	34	$	35	$	67

NET INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Net loss per share - basic
Numerator: net income (loss)	$ (387)	$ 308	$ (646)	$ (287)
Denominator (weighted average):
Common shares	32,496	21,650	27,314	21,650
RSUs - vested	393	654	393	637
Common stock purchase warrants	10,000	10,000	10,000	10,000
Basic weighted average shares outstanding	42,889	32,304	37,707	32,287
Basic net income (loss) per share	$ (0.01)	$ 0.01	$ (0.02)	$ (0.01)
Net loss per share - assuming dilution
Numerator: net income (loss)	$ (387)	$ 308	$ (646)	$ (287)
Denominator (weighted average):
Common shares	32,496	21,650	27,314	21,650
RSUs	393	717	393	637
Stock options	0	115
Common stock purchase warrants	10,000	10,000	10,000	10,000
Diluted weighted average shares outstanding	42,889	32,482	37,707	32,287
Diluted net income (loss) per share	$ (0.01)	$ 0.01	$ (0.02)	$ (0.01)
Excluded securities (non-weighted):
Total excluded potentially dilutive shares	3,024	40,616	3,024	40,839
RSU
Excluded securities (non-weighted):
Total excluded potentially dilutive shares	80	153	80	153
Stock option awards
Excluded securities (non-weighted):
Total excluded potentially dilutive shares	1,162	1,121	1,162	1,344
Common stock purchase warrants
Excluded securities (non-weighted):
Total excluded potentially dilutive shares	1,782	1,842	1,782	1,842
Convertible loan
Excluded securities (non-weighted):
Total excluded potentially dilutive shares	0	37,500		37,500

SHARE-BASED COMPENSATION EXPENSE

6 Months Ended

Jun. 30, 2021

SHARE-BASED COMPENSATION EXPENSE

SHARE-BASED COMPENSATION EXPENSE

NOTE 10 – STOCK-BASED COMPENSATION EXPENSE

We have several stock-based compensation plans covering stock options and RSUs for our employees and directors.

We measure our compensation cost related to stock-based payment transactions based on fair value of the equity or liability classified instrument. 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. 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 stock-based compensation for RSUs is based on the closing market price of our common stock on the date of grant.

Our total stock-based compensation expense recognized in the Company’s results of operations from non-cash and cash-portioned instruments issued to our employees and directors comprised the following (in thousands):


	Three months Ended				Six months Ended
	June 30,				June 30,
	2021		2020		2021		2020

	(in thousands)
Research and development costs:
Stock options	$	—	$	—	$	—	$	—
Restricted stock units		—		—		—		—
Subtotal	$	—	$	—	$	—	$	—

General and administrative costs:
Stock options	$	—	$	—	$	—	$	—
Restricted stock units		63		18		63		33
Subtotal		63		18		63		33

Total	$	63	$	18	$	63	$	33

Stock Option Plans

We maintain various stock option plans. A summary of our stock option plans as of June 30, 2021 and 2020 and for the three months then ended consisted of the following (in thousands except exercise price):


	Six Months ended June 30,
	2021			2020
		Weighted			Weighted
	Number	Average			Average
	of	Exercise		Number of	Exercise
	Options	Price		Options	Price
Outstanding, Jan. 1	1,254	$	3.46	1,356	$	4.45
Granted	—		—	—		—
Exercised	(80)		0.15	—		—
Forfeited	—		—	—		—
Expired	(12)		17.30	(12)		27.35
Outstanding, Jun. 30	1,162	$	3.55	1,344	$	4.24
Exercisable, Jun. 30	1,162	$	3.55	1,344	$	4.24

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 expected term, forfeitures, 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, the majority of our stock options have been held until their expiration date.

The intrinsic value contained in the stock option awards which are vested and outstanding at June 30, 2021 is approximately $110 thousand.

Restricted Stock Unit Award Plans

We have two Restricted Stock Unit Award Plans for our employees and non-employee directors, a 2021 Restricted Stock Unit Award Plan (the “2021 RSU Plan) and a 2017 Restricted Stock Unit Award Plan (the “2017 RSU Plan). Vesting of an RSU entitles the holder to receive a share of our common stock on a distribution date. Our non-employee director awards allow for non-employee directors to receive payment in cash, instead of stock, for up to 40% of each RSU award. The portion of the RSU awards subject to cash settlement are recorded as a liability in the Company’s consolidated balance sheet as they vest and being marked-to-market each reporting period until they are distributed. The liability was $35 thousand at June 30, 2021.

The compensation cost to be incurred on a granted RSU without a cash settlement option is the RSU’s fair value, which is the market price of our common stock on the date of grant, less its exercise cost. The compensation cost is amortized to expense and recorded to additional paid-in capital over the vesting period of the RSU award.

A summary of the grants under the RSU Plans as of June 30, 2021 and 2020, and for the six months then ended consisted of the following (in thousands):


	Six Months Ended June 30,
	2021		2020
		Number of		Number of
	Number	Vested	Number of	Vested
	of RSUs	RSUs	RSUs	RSUs
Outstanding, Jan. 1	839	839	1,017	1,017
Granted	267	—	219	—
Distributed	(447)	(447)	(397)	(397)
Vested	—	133	—	110
Forfeited	—	—	—	—
Outstanding, Jun. 30	659	525	839	730

2021 Restricted Stock Unit Award Plan

Our 2021 RSU Plan was approved by shareholders in May 2021 and permits the grant of up to 2.50 million shares of our common stock pursuant to awards under the 2021 RSU Plan. As of June 30, 2021, there are 2.23 million shares which remain available for award under the 2021 RSU Plan.

Information about the award activity under the 2021 RSU Plan is as follows:

●

In May 2021, we awarded approximately 66 thousand RSUs to each of our four non-employee directors which also allow for them to receive payment in cash, instead of stock, for up to 40% of each RSU award. The awards vest 50% at the end of calendar quarter June 30, 2021 and 25% at each end of calendar quarter in 2021 thereafter. Settlement of this RSU will occur on January 4, 2022 the first business day of the year after vesting. The portion of the RSU awards which is subject to cash settlement will also be subject to marked-to market accounting having a liability recorded on the Company’s consolidated balance sheet with quarterly adjustments recorded to stock compensation expense in the general and administration operating category of our income statement.

2017 Restricted Stock Unit Award Plan

Our 2017 RSU Plan was approved by shareholders in November 2017 and permits the grant of up to 1.5 million shares of our common stock pursuant to awards under the 2017 RSU Plan. As of June 30, 2021, there are no shares which remain available for award under the 2017 RSU Plan.

Information about the award activity under the 2017 RSU Plan is as follows:

●

In December 2017, we awarded 200 thousand RSUs to our employees. Such RSU awards vested 100% after one full year of service. Distributions of the vested RSU awards to the employees are being made in three equal installments on the first business day of each of January 2020, 2021, and 2022 or earlier upon a qualifying change of control.

●

In December 2018, we awarded 488 thousand RSUs to our employees. Such RSU awards vested 100% after one full year of service. Distributions of the vested RSU awards to the employees are being made in three equal installments on the first business day of each of January 2021, 2022, and 2023 or earlier upon a qualifying change of control.

●

In January 2019, we awarded approximately 83 thousand RSUs to each of our four non-employee directors which also allow for them to receive payment in cash, instead of stock, for up to 40% of each RSU award. The awards vest 25% at the end of each calendar quarter in 2019. Settlement of this RSU award occurred on January 2, 2020, the first business day of the year after vesting. The portion of the RSU awards which were subject to cash settlement was also subject to marked-to market accounting having a liability recorded on the Company’s consolidated balance sheet with quarterly adjustments which were recorded to stock compensation expense in the general and administration operating category of our income statement.

●

In January 2020, we awarded approximately 55 thousand RSUs to each of our four non-employee directors which also allow for them to receive payment in cash, instead of stock, for up to 40% of each RSU award. The awards vest 25% at the end of each calendar quarter in 2020. Settlement of this RSU award did occur on January 4, 2021, the first business day of the year after vesting. The portion of the RSU awards which are subject to cash settlement will also be subject to marked-to market accounting having a liability recorded on the Company’s consolidated balance sheet with quarterly adjustments recorded to stock compensation expense in the general and administration operating category of our income statement.

Information about the distribution of share activity under the 2017 RSU Plan is as follows:

●

In January 2019, 267 thousand RSUs were distributed to our non-employee directors from their January 2018 award and settled in common stock.

●

In January 2020, 333 thousand RSUs were distributed to our non-employee directors from their January 2019 award with 296 thousand RSUs settled in common stock, 4 thousand RSUs used to settle the purchase price and 33 thousand RSUs settled in cash.

●

In January 2020, 64 thousand RSUs were distributed to our current and former employees representing one third of their 2017 award with 54 thousand RSUs settled in common stock and 10 thousand RSUs used to settle the purchase price and employee withholding taxes.

●

In January 2021, 219 thousand RSUs were distributed to our non-employee directors from their January 2020 award and settled in common stock.

●

In January 2021, 228 thousand RSUs were distributed to our current and former employees representing one third of their December 2017 award and one third of their December 2018 award, with 185 thousand RSUs settled in common stock and 43 thousand RSUs used to settle the purchase price and employee withholding taxes.

COMMON STOCK PURCHASE WARRANTS - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended
	Jun. 30, 2019	Jul. 31, 2017	Dec. 31, 2020	Jun. 28, 2019
Class of Warrant or Right [Line Items]
Warrant to purchase shares of common stock	10,000,000.0		60,000
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.01		$ 2.52
Warrants expiration term	5 years
Class Of Warrant Or Right Term		5 years
Stock Issued During Period, Value, New Issues		$ 4,000
Private Placement
Class of Warrant or Right [Line Items]
Stock Issued During Period, Value, New Issues		$ 495
Investor
Class of Warrant or Right [Line Items]
Warrant to purchase shares of common stock		1,782,531
Investor \| Private Placement
Class of Warrant or Right [Line Items]
Warrant to purchase shares of common stock		1,782,532
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 0.528
Schutte
Class of Warrant or Right [Line Items]
Shares of warrant assigned and transferred				10,000,000.0
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 0.01
Amount allocated to warrant	$ 1,145

NET INCOME (LOSS) PER SHARE - Additional Information (Details) - $ / shares shares in Millions		6 Months Ended
	Jun. 28, 2019	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 2.52	$ 0.01
Schutte Note
Antidilutive Securities Excluded from Computation of Earnings Per Share
Debt Conversion, Converted Instrument, Warrants or Options Issued	10.0	10.0
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.01	$ 0.01

RELATED PARTY TRANSACTIONS (Details) - USD ($)									1 Months Ended		3 Months Ended			4 Months Ended	6 Months Ended		10 Months Ended	15 Months Ended
RELATED PARTY TRANSACTIONS (Details) - USD ($)	Aug. 04, 2021	Jul. 08, 2021	Jul. 01, 2021	Jun. 09, 2021	Jun. 28, 2019	Jun. 27, 2019	Dec. 31, 2018	Oct. 09, 2015	Jul. 31, 2017	Mar. 31, 2017	Jul. 31, 2021	Jun. 30, 2021	Jun. 30, 2020	Jul. 31, 2021	Jun. 30, 2021	Jun. 30, 2020	Apr. 29, 2020	Jul. 31, 2021	Dec. 31, 2020	Jun. 30, 2019
Related Party Transaction [Line Items]
Number Of Common Stock Need To Hold To Designate As Director									600,000
Class of Warrant or Right, Exercise Price of Warrants or Rights																			$ 2.52	$ 0.01
Warrant to purchase shares of common stock																			60,000	10,000,000.0
Class Of Warrants Or Rights, Expiry Period									5 years
Proceeds from License Fees Received								$ 5,000,000.0
Acura Pharmaceuticals Inc [Member]
Related Party Transaction [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent				66.00%
AD Pharma Amended Agreement
Related Party Transaction [Line Items]
Proceeds from License Fees Received					$ 350,000												$ 350,000	$ 200,000
Subsequent event \| AD Pharma Amended Agreement
Related Party Transaction [Line Items]
Proceeds from License Fees Received	$ 200,000	$ 200,000	$ 200,000
MainPointe - related party (Nexafed)
Related Party Transaction [Line Items]
Licensing Agreement, Royalty Percentage										7.50%
Proceeds from License Fees Received										$ 2,500,000
MainPointe - related party (Nexafed) \| Royalty
Related Party Transaction [Line Items]
Royalty revenues												$ 0	$ 3,000		$ 2,000	$ 6,000
Investor
Related Party Transaction [Line Items]
Warrant to purchase shares of common stock									1,782,531
Investor \| Private Placement
Related Party Transaction [Line Items]
Sale of Stock, Consideration Received on Transaction									$ 4,000,000.0
Sale of Stock, Number of Shares Issued in Transaction									8,912,655
Sale of Stock, Price Per Share									$ 0.4488
Class of Warrant or Right, Exercise Price of Warrants or Rights									$ 0.528
Sale Of Stock, Issue Price Description									85%
Warrants Not Settleable in Cash, Fair Value Disclosure												$ 495,000			495,000
Proceeds from Issuance of Warrants															$ 4,000,000.0
Warrant to purchase shares of common stock									1,782,532
Schutte
Related Party Transaction [Line Items]
Aggregate principal of promissory notes and accrued interest					$ 6,000,000.0
Fixed interest rate					7.50%
Share Price					$ 0.16
Debt Conversion, Converted Instrument, Warrants or Options Issued					10,000,000.0
Class of Warrant or Right, Exercise Price of Warrants or Rights					$ 0.01
Debt Conversion, Converted Instrument, Shares Issued					37,500,000
Proceeds from Issuance of Long-term Debt					$ 725,000	$ 650,000	$ 4,350,000
Schutte \| AD Pharma Amended Agreement
Related Party Transaction [Line Items]
Aggregate principal of promissory notes and accrued interest					$ 6,000,000.0
Debt Conversion, Converted Instrument, Warrants or Options Issued					10,000,000.0
Abuse Deterrent Pharma, LLC \| AD Pharma Amended Agreement
Related Party Transaction [Line Items]
Debt Conversion, Converted Instrument, Shares Issued				42,984,375
Proceeds from License Fees Received											$ 600,000			$ 600,000
Reimbursable Research And Development Expense											$ 97,000
Debt Conversion, Original Debt, Amount				$ 6,000,000.0
Unpaid interest				$ 877,000
Abuse Deterrent Pharma, LLC \| Subsequent event \| AD Pharma Amended Agreement
Related Party Transaction [Line Items]
Proceeds from License Fees Received	$ 200,000	$ 200,000	$ 200,000															$ 200,000
Abuse Deterrent Pharma, LLC \| MainPointe - related party (Nexafed)
Related Party Transaction [Line Items]
Option product exercise price waived if the exercise of the option occurred by five years					$ 500,000
Period to waive option product exercise price					5 years

LICENSE AND COLLABORATION AGREEMENTS - Intangible asset (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
LICENSE AND COLLABORATION AGREEMENTS
Intangible asset - Aversion	$ 2,000	$ 2,000
Less: accumulated amortization	(1,272)	(1,259)
Less: reserve for impairment	(668)	(668)
Net	$ 60	$ 73

REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Royalty revenues	$ 3	$ 34	$ 35	$ 67
Assertio (Oxaydo)
Royalty revenues	3	31	33	61
MainPointe - related party (Nexafed)
Royalty revenues	$ 0	$ 3	$ 2	$ 6

LEASES (Tables)

6 Months Ended

Jun. 30, 2021

LEASES

Schedule of supplemental balance sheet information related to the lease

The following table reflects supplemental balance sheet information related to the lease as of June 30, 2021 and December 31, 2020 (in thousands):


		June 30,		December 31,
	Financial Statement Classification	2021		2020

		(in thousands)
Assets
Finance lease right of use	Other long-term assets	$	66	$	—

Liabilities
Finance lease liability - current	Other current liabilities	$	33	$	—
Finance lease liability - noncurrent	Other long-term liabilities		33		—
Total lease liability			66	$	—

SHARE-BASED COMPENSATION EXPENSE (Tables)

6 Months Ended

Jun. 30, 2021

SHARE-BASED COMPENSATION EXPENSE

Schedule of employee service share-based compensation, allocation of recognized period costs


	Three months Ended				Six months Ended
	June 30,				June 30,
	2021		2020		2021		2020

	(in thousands)
Research and development costs:
Stock options	$	—	$	—	$	—	$	—
Restricted stock units		—		—		—		—
Subtotal	$	—	$	—	$	—	$	—

General and administrative costs:
Stock options	$	—	$	—	$	—	$	—
Restricted stock units		63		18		63		33
Subtotal		63		18		63		33

Total	$	63	$	18	$	63	$	33

Schedule of share-based compensation, stock option plan activity

A summary of our stock option plans as of June 30, 2021 and 2020 and for the three months then ended consisted of the following (in thousands except exercise price):


	Six Months ended June 30,
	2021			2020
		Weighted			Weighted
	Number	Average			Average
	of	Exercise		Number of	Exercise
	Options	Price		Options	Price
Outstanding, Jan. 1	1,254	$	3.46	1,356	$	4.45
Granted	—		—	—		—
Exercised	(80)		0.15	—		—
Forfeited	—		—	—		—
Expired	(12)		17.30	(12)		27.35
Outstanding, Jun. 30	1,162	$	3.55	1,344	$	4.24
Exercisable, Jun. 30	1,162	$	3.55	1,344	$	4.24

Schedule of grants under the RSU Plans

A summary of the grants under the RSU Plans as of June 30, 2021 and 2020, and for the six months then ended consisted of the following (in thousands):


	Six Months Ended June 30,
	2021		2020
		Number of		Number of
	Number	Vested	Number of	Vested
	of RSUs	RSUs	RSUs	RSUs
Outstanding, Jan. 1	839	839	1,017	1,017
Granted	267	—	219	—
Distributed	(447)	(447)	(397)	(397)
Vested	—	133	—	110
Forfeited	—	—	—	—
Outstanding, Jun. 30	659	525	839	730

LEASES - Additional Information (Details) $ in Thousands	6 Months Ended
LEASES - Additional Information (Details) $ in Thousands	Jun. 30, 2021 USD ($)
Lessee, Finance Lease, Description [Abstract]
Lease term	24 months
Finance lease equal monthly payment	$ 3

RESEARCH AND DEVELOPMENT

6 Months Ended

Jun. 30, 2021

RESEARCH AND DEVELOPMENT

RESEARCH AND DEVELOPMENT

NOTE 4 – RESEARCH AND DEVELOPMENT

Research and Development (“R&D”) costs include internal R&D activities, external Contract Research Organization (“CRO”) services and their clinical research and investigative sites, and other activities. Internal R&D activity costs can include facility overhead, equipment and facility maintenance and repairs, laboratory supplies, pre-clinical laboratory experiments, formulation work, depreciation, salaries, benefits, insurance and stock-based compensation expenses. CRO activity costs can include preclinical laboratory experiments and clinical trial studies. Other activity costs can include regulatory consulting, regulatory legal counsel, cost of acquiring, developing and manufacturing pre-clinical trial materials, costs of manufacturing scale-up, and cost sharing expenses under license agreements. Internal R&D costs and other activity costs are charged to expense 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. Payments in advance will be reflected in the consolidated financial statements as prepaid expenses. We review and charge to expense accrued CRO costs and clinical trial study costs 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. Our accrued CRO costs are subject to revisions as such studies progress towards completion. Revisions are charged to expense in the period in which the facts that give rise to the revision become known. We did not have prepaid CRO costs or prepaid clinical trial study expenses at June 30, 2021 or 2020.

DEBT - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands						3 Months Ended		6 Months Ended			12 Months Ended
	Jun. 09, 2021	Mar. 16, 2021	Jun. 28, 2019	Jun. 27, 2019	Dec. 31, 2018	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 27, 2019	Dec. 31, 2018	Jul. 21, 2021	Dec. 31, 2020	Apr. 13, 2020	Jun. 30, 2019
Debt Instrument [Line Items]
Common shares exercise price													$ 2.52		$ 0.01
Schutte
Debt Instrument [Line Items]
Amount borrowed from related party										$ 650	$ 4,350
Debt instrument principal amount			$ 5,000
Proceeds from Issuance of Long-term Debt			725	$ 650	$ 4,350
Aggregate principal of promissory notes and accrued interest			$ 6,000
Debt instrument, interest rate, stated percentage			7.50%
Common shares exercise price			$ 0.01
Principal and interest converted shares			37,500,000
Issued warrant			10,000,000.0
Share Price			$ 0.16
Schutte Note
Debt Instrument [Line Items]
Proceeds from Issuance of Long-term Debt			$ 725
Aggregate principal of promissory notes and accrued interest			$ 6,000
Debt instrument, interest rate, stated percentage			7.50%
Common stock warrant exercisable outstanding, shares			6,000,000.0
Common shares exercise price			$ 0.01			$ 0.01		$ 0.01
Principal and interest converted shares			37,500,000
Issued warrant			10,000,000.0					10,000,000.0
Share Price			$ 0.16
Interest expense						$ 87	$ 113	$ 200	$ 225
1st PPP Loan
Debt Instrument [Line Items]
Debt instrument principal amount														$ 269
2nd PPP Loan
Debt Instrument [Line Items]
Debt instrument principal amount		$ 266
Debt instrument, interest rate, stated percentage		1.00%
Loan term		5 years
Subsequent event \| 1st PPP Loan
Debt Instrument [Line Items]
Loan												$ 269
AD Pharma Amended Agreement \| Schutte
Debt Instrument [Line Items]
Aggregate principal of promissory notes and accrued interest			$ 6,000
Issued warrant			10,000,000.0
AD Pharma Amended Agreement \| Abuse Deterrent Pharma, LLC
Debt Instrument [Line Items]
Principal and interest converted shares	42,984,375
Conversion received	$ 6,000
Unpaid interest	$ 877
Acura Pharmaceuticals Inc [Member]
Debt Instrument [Line Items]
Ownership percentage	66.00%

LICENSE AND COLLABORATION AGREEMENTS (Details) - USD ($) $ in Thousands								1 Months Ended			3 Months Ended		4 Months Ended	6 Months Ended		10 Months Ended	15 Months Ended
	Aug. 04, 2021	Jul. 08, 2021	Jul. 01, 2021	Jun. 09, 2021	Jun. 28, 2019	Mar. 31, 2017	Oct. 09, 2015	Mar. 31, 2017	Oct. 31, 2016	Apr. 30, 2014	Jul. 31, 2021	Mar. 31, 2020	Jul. 31, 2021	Jun. 30, 2021	Jun. 30, 2020	Apr. 29, 2020	Jul. 31, 2021
License Development and Commercialization Agreement [Line Items]
Payment for Termination										$ 2,000
Proceeds from Milestone Payment On Agreement							$ 2,500
Monthly license payment receivable							$ 5,000
Finite-Lived Intangible Asset, Useful Life										9 years 8 months 12 days				2 years 6 months
Amortization of intangible asset														$ 13	$ 57
Impairment charge against the intangible asset												$ 668		0	$ 668
Expected amortization expense for patents per quarter.														$ 6
Patents
License Development and Commercialization Agreement [Line Items]
Payment for Termination										$ 2,000
AD Pharma Amended Agreement
License Development and Commercialization Agreement [Line Items]
Monthly license payment receivable					$ 350											$ 350	$ 200
Schutte \| AD Pharma Amended Agreement
License Development and Commercialization Agreement [Line Items]
Percentage of common stock held					13.70%
Acura Pharmaceuticals Inc [Member]
License Development and Commercialization Agreement [Line Items]
Ownership percentage				66.00%
Abuse Deterrent Pharma, LLC \| AD Pharma Amended Agreement
License Development and Commercialization Agreement [Line Items]
Monthly license payment receivable											$ 600		$ 600
Conversion received				$ 6,000
Unpaid interest				$ 877
Principal and interest converted shares				42,984,375
Reimbursable Research And Development Expense											$ 97
MainPointe Pharmaceuticals, LLC \| AD Pharma Amended Agreement
License Development and Commercialization Agreement [Line Items]
Waiver of exercise price if exercise of option occurs by certain date					$ 500
Period from effective date for exercise of option					5 years
Schutte
License Development and Commercialization Agreement [Line Items]
Principal and interest converted shares					37,500,000
Aggregate principal of promissory notes and accrued interest					$ 6,000
Issued warrant					10,000,000.0
Schutte \| AD Pharma Amended Agreement
License Development and Commercialization Agreement [Line Items]
Aggregate principal of promissory notes and accrued interest					$ 6,000
Issued warrant					10,000,000.0
Subsequent event \| AD Pharma Amended Agreement
License Development and Commercialization Agreement [Line Items]
Monthly license payment receivable	$ 200	$ 200	$ 200
Subsequent event \| Abuse Deterrent Pharma, LLC \| AD Pharma Amended Agreement
License Development and Commercialization Agreement [Line Items]
Monthly license payment receivable	$ 200	$ 200	$ 200														$ 200
MainPointe - related party (Nexafed)
License Development and Commercialization Agreement [Line Items]
Monthly license payment receivable								$ 2,500
Licensing Agreement, Royalty Percentage								7.50%
License Agreement Option Products Description								In addition, MainPointe has the option to add to the MainPointe Agreement certain additional products, or Option Products, containing PSE and utilizing the Impede Technology for a fee of $500 thousand per product (for all product strengths). Such Option Products include the product candidate Loratadine with pseudoephedrine. If the territory has been expanded prior to the exercise of a product option, the option fee will be increased to $750 thousand per product. If the territory is expanded after the payment of the $500 thousand product option fee, a one-time $250 thousand fee will be due for each product. If a third party is interested in developing or licensing rights to an Option Product, MainPointe must exercise its option for that product or its option rights for such product will terminate.
MainPointe - related party (Nexafed) \| UNITED KINGDOM
License Development and Commercialization Agreement [Line Items]
Monthly license payment receivable								$ 1,000
MainPointe - related party (Nexafed) \| JAPAN
License Development and Commercialization Agreement [Line Items]
Monthly license payment receivable								$ 500
MainPointe - related party (Nexafed) \| South Korea
License Development and Commercialization Agreement [Line Items]
Monthly license payment receivable						$ 250
Kempharm Agreement [Member]
License Development and Commercialization Agreement [Line Items]
Monthly license payment receivable									$ 3,500
Kempharm Agreement [Member] \| Minimum
License Development and Commercialization Agreement [Line Items]
Additional Upfront Payment Receivable									$ 1,000

LICENSE AND COLLABORATION AGREEMENTS

6 Months Ended

Jun. 30, 2021

LICENSE AND COLLABORATION AGREEMENTS

LICENSE AND COLLABORATION AGREEMENTS

NOTE 2 – LICENSE AND COLLABORATION AGREEMENTS

The Company’s revenues are comprised of amounts earned under its license and collaboration agreements and royalties. Revenue recognition occurs when a customer obtains control of promised services in an amount that reflects the consideration the Company expects to receive in exchange for those services based on a short-term credit arrangement.

AD Pharma Agreement covering LTX-03

We had also previously granted authority to MainPointe Pharmaceuticals, LLC (MainPointe) to assign to AD Pharma the option and the right to add, as an Option Product to the Nexafed® Agreement, a Nexafed® 12-hour dosage (an extended-release pseudoephedrine hydrochloride product utilizing the IMPEDE® Technology in 120mg dosage strength, and the Option Product exercise price of $500 thousand was waived if the exercise of the option occurred by June 28, 2024 (five years from the effective date). Effective with the October 2020 amendment, this option and right was rescinded.

On June 28, 2019 Mr. John Schutte assigned and transferred to AD Pharma his $6.0 million convertible debt, the common stock purchase warrant for 10.0 million common shares, and the security agreement granting a security interest in all of the Company’s assets. Mr. Schutte is a shareholder and directly owns approximately 13.7% of our common stock at June 30, 2021. Mr. Schutte controls MainPointe and is the principal investor in AD Pharma.

On June 9, 2021 we received notice of conversion from AD Pharma for the $6.0 million Promissory Note and approximately $877 thousand of accrued but unpaid interest. The principal and interest were converted into 42,984,375 shares of the Company’s common stock. Effective with this conversion, the Promissory Note is retired and the Company is working with AD Pharma to release their security interest in all the Company’s assets. AD Pharma directly owns approximately 66% of our common stock at June 30, 2021.

Assertio Agreement covering Oxaydo

In April 2014, we terminated an agreement with Pfizer which resulted in the return to us of Aversion Oxycodone (formerly known as Oxecta®) and all Aversion product rights in exchange for a one-time termination payment of $2.0 million. Our termination payment of $2.0 million has been recorded in our financial statements as an intangible asset and is being amortized over the remaining useful life of the patent covering Aversion Oxycodone, which was 9.7 years as of the date the Pfizer agreement was terminated. As of June 30, 2021, the remaining useful life is 30 months or 2.50 years. The recoverability of the Aversion intangible asset is contingent upon future Assertio royalty revenues to us under a license agreement with them. During the first quarter 2020 a triggering event occurred with the decline in royalty cash flows from Assertio, and we performed an impairment test which indicated that the carrying value of the intangible asset was greater than the fair value. The impairment test resulted in a $668 thousand impairment charge against the intangible asset, which was determined using our estimate of discounted royalty cash flows remaining under our license agreement with Assertio, and recorded a like amount to general and administrative expense. For the second quarter 2021, we did not earn a royalty on Oxaydo.

We have recorded amortization expense of $13 thousand and $57 thousand in each of the six month periods ending June 30, 2021 and 2020, respectively. Amortization of the patent for its remaining useful life is expected to approximate $6 thousand per quarter.

The Aversion intangible asset is summarized as follows (in thousands):


	June 30,		December 31,
	2021		2020
Intangible asset – Aversion		2,000		2,000
Less: accumulated amortization		(1,272)		(1,259)
Less: reserve for impairment		(668)		(668)
Net	$	60	$	73

In January 2015, we and Egalet US, Inc. and Egalet Ltd., each a subsidiary of Egalet Corporation (now known as Assertio Holdings Inc. and formerly known as Zyla Life Sciences), or collectively Assertio, entered into a Collaboration and License Agreement (the “Assertio Agreement”) to commercialize Aversion Oxycodone under our tradename Oxaydo. Oxaydo is approved by the FDA for marketing in the United States in 5 mg and 7.5 mg strengths. Under the terms of the Assertio Agreement, we transferred the approved New Drug Application, or NDA, for Oxaydo to Assertio and Assertio is granted an exclusive license under our intellectual property rights for development and commercialization of Oxaydo worldwide (the “Territory”) in all strengths, subject to our right to co-promote Oxaydo in the United States. Eaglet launched Oxaydo in the United States late in the third quarter of 2015.

Assertio paid us a $5.0 million license fee upon signing of the Assertio Agreement and on October 9, 2015, paid us a $2.5 million milestone in connection with the first commercial sale of Oxaydo. We are entitled to receive from Assertio a stepped royalty at percentage rates ranging from mid-single digits to double-digits based on Oxaydo net sales during each calendar year (excluding net sales resulting from our co-promotion efforts). Assertio’s royalty payment obligations commenced on the first commercial sale of Oxaydo and expire, on a country-by-country basis, upon the expiration of the last to expire valid patent claim covering Oxaydo in such country (or if there are no patent claims in such country, then upon the expiration of the last valid claim in the United States or the date when no valid and enforceable listable patent in the FDA’s Orange Book remains with respect to Oxaydo). Royalties will be reduced upon the entry of generic equivalents, as well as for payments required to be made by Assertio to acquire intellectual property rights to commercialize Oxaydo, with an aggregate minimum floor.

As part of a 2020 restructuring by Assertio, it is our understanding that they have decided to reduce selling efforts pertaining to Oxaydo and as such, we expect royalties to decline over the remainder of the Agreement.

The Assertio Agreement expires upon the expiration of Assertio’s royalty payment obligations in all countries.

MainPointe Agreement covering Nexafed Products

In March 2017, we and MainPointe entered into the MainPointe Agreement, pursuant to which we granted MainPointe an exclusive license to our Impede Technology to commercialize both of our Nexafed and Nexafed Sinus Pressure + Pain product (“Nexafed products”) in the U.S. and Canada. We also conveyed to MainPointe our existing inventory and equipment relating to our Nexafed products. MainPointe is responsible for all development, manufacturing and commercialization activities with respect to products covered by the Agreement.

On signing the MainPointe Agreement, MainPointe paid us an upfront licensing fee of $2.5 million. The MainPointe Agreement also provides for our receipt of a 7.5% royalty on net sales of the licensed products. The royalty payment for each product will expire on a country-by-country basis when the Impede® patent rights for such country have expired or are no longer valid; provided that if no Impede patent right exists in a country, then the royalty term for that country will be the same as the royalty term for the United States. After the expiration of a royalty term for a country, MainPointe retains a royalty free license to our Impede® Technology for products covered by the Agreement in such country.

MainPointe has the option to expand the licensed territory beyond the United States and Canada to the European Union (and the United Kingdom), Japan and South Korea for payments of $1.0 million, $500 thousand and $250 thousand, respectively. In addition, MainPointe has the option to add to the MainPointe Agreement certain additional products, or Option Products, containing PSE and utilizing the Impede Technology for a fee of $500 thousand per product (for all product strengths). Such Option Products include the product candidate Loratadine with pseudoephedrine. If the territory has been expanded prior to the exercise of a product option, the option fee will be increased to $750 thousand per product. If the territory is expanded after the payment of the $500 thousand product option fee, a one-time $250 thousand fee will be due for each product. If a third party is interested in developing or licensing rights to an Option Product, MainPointe must exercise its option for that product or its option rights for such product will terminate.

On June 28, 2019, we granted authority to MainPointe to assign to AD Pharma the option and the right to add, as an Option Product to the Nexafed® Agreement, a Nexafed® 12-hour dosage (an extended-release pseudoephedrine hydrochloride product utilizing the IMPEDE® Technology in 120mg dosage strength and the Option Product exercise price of $500 thousand was waived if the exercise of the option occurred by June 28, 2024 (five years from the effective date of the AD Pharma Agreement). Effective with the October 2020 amendment, this option and right was rescinded.

The MainPointe Agreement may be terminated by either party for a material breach of the other party, or by Acura if MainPointe challenges certain of its patents. Upon early termination of the MainPointe Agreement, MainPointe’s licenses to the Impede Technology and all products will terminate. Upon termination, at Acura’s request the parties will use commercially reasonable efforts to transition the Nexafed® and Nexafed® Sinus Pressure + Pain products back to Acura.

KemPharm Agreement Covering Certain Opioid Prodrugs

In October 2016, we and KemPharm Inc. (“KemPharm”) entered into a worldwide License Agreement (the “KemPharm Agreement”) pursuant to which we licensed our Aversion® Technology to KemPharm for its use in the development and commercialization of three products using 2 of KemPharm’s prodrug candidates. KemPharm has also been granted an option to extend the KemPharm Agreement to cover two additional prodrug candidates. KemPharm is responsible for all development, manufacturing and commercialization activities.

Upon execution of the KemPharm Agreement, KemPharm paid us an upfront payment of $3.5 million. If KemPharm exercises its option to use our Aversion Technology with more than the two licensed prodrugs, then KemPharm will pay us up to $1.0 million for each additional prodrug license. In addition, we will receive from KemPharm a low single digit royalty on commercial sales by KemPharm of products developed using our Aversion Technology under the KemPharm Agreement. KemPharm’s royalty payment obligations commence on the first commercial sale of a product using our Aversion Technology and expire, on a country-by-country basis, upon the expiration of the last to expire patent claim of the Aversion Technology covering a product in such country, at which time the license for the particular product and country becomes fully paid and royalty free.

The KemPharm Agreement expires upon the expiration of KemPharm’s royalty payment obligations in all countries. Either party may terminate the KemPharm Agreement in its entirety if the other party materially breaches the KemPharm Agreement, subject to applicable cure periods. Acura or KemPharm may terminate the KemPharm Agreement with respect to the U.S. and other countries if the other party challenges the patents covering the licensed products. KemPharm may terminate the KemPharm Agreement for convenience on ninety (90) days prior written notice. Termination does not affect a party’s rights accrued prior thereto, but there are no stated payments in connection with termination other than payments of obligations previously accrued. For all terminations (but not expiration), the KemPharm Agreement provides for termination of our license grant to KemPharm.

SUBSEQUENT EVENTS - Additional Information (Details) - USD ($) $ in Thousands						10 Months Ended	15 Months Ended
	Aug. 04, 2021	Jul. 08, 2021	Jul. 01, 2021	Jun. 28, 2019	Oct. 09, 2015	Apr. 29, 2020	Jul. 31, 2021	Jul. 21, 2021
SUBSEQUENT EVENT
Monthly license payment receivable					$ 5,000
AD Pharma Amended Agreement
SUBSEQUENT EVENT
Monthly license payment receivable				$ 350		$ 350	$ 200
Subsequent event \| AD Pharma Amended Agreement
SUBSEQUENT EVENT
Monthly license payment receivable	$ 200	$ 200	$ 200
Subsequent event \| 1st PPP Loan
SUBSEQUENT EVENT
Debt Instrument, Loan Forgiven, Amount								$ 269

RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2021

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 8 – RELATED PARTY TRANSACTIONS

In July 2017, we completed a $4.0 million private placement with Mr. Schutte, consisting of 8,912,655 units (“Units”) of the Company, at a price of $0.4488 per Unit (the “Transaction”). Each Unit consists of one share of common stock and a warrant to purchase one fifth (0.2) of a share of common stock. The issue price of the Units was equal to 85% of the average last sale price of our common stock for the five trading days prior to completion of the Transaction. The warrants are immediately exercisable for 1,782,532 common shares at a price of $0.528 per share (which equals the average last sale price of the Company’s common stock for the five trading days prior to completion of the Transaction) and expire five years after issuance (subject to earlier expiration in event of certain acquisitions). We have assigned a relative fair value of $495 thousand to the warrants out of the total $4.0 million proceeds from the private placement transaction and have accounted these warrants as equity.

As part of the closing of the Transaction, the Company and Essex Woodlands Health Ventures V, L.P. (“Essex”) and Galen Partners III, L.P. (“Galen”) amended and restated the existing Voting Agreement including such parties to provide for Mr. Schutte to join as a party (as so amended, the “Second Amended and Restated Voting Agreement”). The Second Amended and Restated Voting Agreement provides that our Board of Directors shall remain comprised of no more than seven members (subject to certain exceptions), (i) one of whom is the Company’s Chief Executive Officer, (ii) three of whom are independent under Nasdaq standards, and (iii) one of whom shall be designated by each of Essex, Galen and Mr. Schutte, and the parties to such agreement would vote for such persons. The right of each of Essex, Galen and Mr. Schutte to designate one director to our Board will continue as long as he or it and their affiliates collectively hold at least 600,000 shares of our common stock (including warrants exercisable for such shares). Immanuel Thangaraj is the designee of Essex. Mr. Schutte has not designated a director as of the date of filing of this Report on Form 10-Q. Galen had not designated a director and lost that right in December 2017 when it disposed of its shares of common stock in the Company. Once such shareholder no longer holds such securities, the additional forfeited seat would become a seat for an independent director to thereafter be nominated to the Board of Directors from time to time by the then current directors and as applicable, to be elected by the directors to fill the vacancy created by the forfeited seat or submitted to the vote of shareholders at the Company’s next annual meeting. An independent director has not been named to fill the seat forfeited by Galen.

MainPointe Pharmaceuticals LLC

Mr. Schutte is the principal owner of MainPointe Pharmaceuticals LLC, a Kentucky limited liability company (“MainPointe”). In March 2017, we granted MainPointe an exclusive license to our Impede Technology to commercialize our Nexafed® and Nexafed® Sinus Pressure + Pain Products in the United States and Canada for an upfront licensing fee of $2.5 million. The Company is receiving a 7.5% royalty on sales of licensed products. MainPointe also has options to expand the territory and products covered for additional sums. Included in the reported royalty revenue for the three months ended June 30, 2021 and 2020 is $0 thousand and $3 thousand, respectively of royalty revenue from MainPointe. Included in the reported royalty revenue for the six months ended June 30, 2021 and 2020 is $2 thousand and $6 thousand, respectively of royalty revenue from MainPointe. (See Note 2). On January 1, 2020, MainPointe assigned to AD Pharma, with Acura’s consent, all of its right, title and interest in the MainPointe Agreement between MainPointe and Acura; which was rescinded by AD Pharma in October 2020.

Loans with Mr. John Schutte

At December 31, 2018, we had borrowed an aggregate of $4.35 million from Mr. Schutte, a related-party. During the period January 1, 2019 through June 27, 2019 we borrowed an aggregate of $650 thousand from Mr. Schutte. On June 28, 2019 we borrowed an additional $725 thousand from Mr. Schutte, bringing the aggregate principal of the loans and accrued interest to $6.0 million, and consolidated the loans into a single promissory note with a fixed interest rate of 7.5%, maturity date of July 1, 2023, granted conversion rights of principal and interest into shares of our common stock at a price of $0.16 per share, issued a warrant for 10.0 million common shares having an exercise price of $0.01 per share, and granted a security interest in all of the Company’s assets, which includes our intellectual property. The principal amount of the note is convertible into 37.5 million shares of our common stock. The $6.0 million convertible debt, the common stock purchase warrant and the security agreement were all assigned and transferred by Mr. Schutte to AD Pharma on June 28, 2019.

On June 9, 2021, we received notice of conversion from AD Pharma for the $6.0 million Promissory Note and approximately $877 thousand of accrued but unpaid interest. The principal and interest were converted into 42,984,375 shares of the Company’s common stock. Effective with this conversion, the Promissory Note is retired and the Company is working with AD Pharma, LLC to release their security interest in all the Company’s assets. AD Pharma directly owns approximately 66% of our common stock at June 30, 2021.

AD Pharma Agreement covering LTX-03

On June 28, 2019 we entered into a License, Development and Commercialization Agreement, as amended in October 2020 and in July 2021 (the “AD Pharma Amended Agreement”), with Abuse Deterrent Pharma, LLC (“AD Pharma”), a special purpose company representing a consortium of investors for the completion of development of LTX-03 (hydrocodone bitartrate with acetaminophen) immediate-release tablets utilizing Acura’s patented LIMITx™ technology which addresses the consequences of excess oral administration of opioid tablets, the most prevalent route of opioid overdose and abuse. The AD Pharma Amended Agreement grants AD Pharma exclusive commercialization rights in the United States to LTX-03 as well as LTX-02 (oxycodone/acetaminophen) and LTX-09 (alprazolam). The AD Pharma Amended Agreement required AD Pharma to pay us a monthly license payment of $350 thousand for a period from inception up to April 2020 at which time the payment became $200 thousand per month and ended on July 31, 2021, and to reimburse us all our outside development costs for LTX-03. On each of July 1, 2021, July 8, 2021, and August 4, 2021 we received from AD Pharma the $200 thousand payment for the February 2021, March 2021, and April 2021 license fees, respectively. AD Pharma is delinquent in remitting monthly license payments for May, 2021 thru July, 2021 which aggregates to $0.6 million, and approximately $97 thousand of reimbursable LTX-03 development expenses. Failure to make these payments is an event of default under the AD Pharma Amended Agreement.

The AD Pharma Amended Agreement, requires the NDA for LTX-03 be accepted by the FDA by February 28, 2022 or AD Pharma has the option to terminate the AD Pharma Amended Agreement and take ownership of the LIMITx intellectual property. Should AD Pharma choose not to exercise this option to terminate and the NDA for LTX-03 is subsequently accepted by the FDA, such option expires. AD Pharma does have the right to terminate the AD Pharma Amended Agreement anytime for “convenience on 30 days prior written notice”. AD Pharma retains commercialization rights from which Acura will receive stepped royalties on sales and potential sales related milestones. AD Pharma also has a license to the Limitx patents for LTX-02 (oxycodone/acetaminophen) and LTX-09 (alprazolam) which are not subject to any development agreement or responsibilities by Acura. Upon commercialization of the licensed products, Acura receives stepped royalties on sales and is eligible for certain sales related milestones.

We also granted authority to MainPointe Pharmaceuticals, LLC (MainPointe) to assign to AD Pharma the option and the right to add, as an Option Product to the Nexafed® Agreement, a Nexafed® 12-hour dosage (an extended-release pseudoephedrine hydrochloride product utilizing the IMPEDE® Technology in 120mg dosage strength), and the Option Product exercise price of $500 thousand was waived if the exercise of the option occurred by June 28, 2024 (five years from the effective date of the AD Pharma Agreement), however effective with the October 2020 amendment to the AD Pharma Agreement, this option and right was rescinded. In March 2017, we granted MainPointe an exclusive license to our IMPEDE ® Technology to commercialize our Nexafed® and Nexafed® Sinus Pressure + Pain Products in the United States and Canada. On January 1, 2020, MainPointe assigned to AD Pharma, with Acura’s consent, all of its right, title and interest in the MainPointe Agreement between MainPointe and Acura; which was rescinded by AD Pharma in October 2020.

LEASES - Balance Sheet Information (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Assets
Finance lease right of use	$ 66	$ 0
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Finance lease right of use	Finance lease right of use
Liabilities
Finance lease liability - current	$ 33	$ 0
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Finance lease liability - current	Finance lease liability - current
Finance lease liability - noncurrent	$ 33	$ 0
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Finance lease liability - noncurrent	Finance lease liability - noncurrent
Finance Lease, Liability	$ 66	$ 0

NET INCOME (LOSS) PER SHARE

6 Months Ended

Jun. 30, 2021

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE

NOTE 13 –NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed by dividing net income or loss by the weighted average common shares outstanding during a period, including shares weighted related to both vested Restricted Stock Units (“RSUs”) which settle in shares (See Note 10) and a stock warrant exercisable for 10.0 million shares having an exercise price of $0.01 per share (See Note 7). Diluted EPS is based on the treasury stock method and computed based on the same number of shares used in the basic share calculation and includes the effect from potential issuance of common stock, such as shares issuable pursuant to the exercise of stock options and stock warrants, assuming the exercise of all in-the-money stock options and warrants. Common stock equivalents are excluded from the computation where their inclusion would be anti-dilutive. As the Company reported a net loss for the six month periods ending June 30, 2021 and 2020, the effects of common stock equivalents were excluded as the diluted net loss per share calculation would have been antidilutive. The weighted-average common share outstanding diluted computation is not impacted during any period where the exercise price of a stock option, common stock warrant or convertible loan is greater than the average market price of our common stock.

A reconciliation of the numerators and denominators of basic and diluted net income (loss) per share (“EPS”) consisted of the following (in thousands except per share data):


	Three months Ended				Six months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Basic net income (loss) per share
Numerator: net income (loss)	$	(387)	$	308	$	(646)	$	(287)
Denominator (weighted average):
Common shares		32,496		21,650		27,314		21,650
RSUs – vested		393		654		393		637
Common stock purchase warrants		10,000		10,000		10,000		10,000
Basic weighted average shares outstanding		42,889		32,304		37,707		32,287
Basic net income (loss) per share	$	(0.01)	$	0.01	$	(0.02)	$	(0.01)

Diluted net income (loss) per share
Numerator: net income (loss)	$	(387)	$	308	$	(646)	$	(287)
Denominator (weighted average):
Common shares		32,496		21,650		27,314		21,650
RSUs		393		717		393		637
Stock options		—		115		—		—
Common stock purchase warrants		10,000		10,000		10,000		10,000
Diluted weighted average shares outstanding		42,889		32,482		37,707		32,287
Diluted net income (loss) per share	$	(0.01)	$	0.01	$	(0.02)	$	(0.01)


Excluded securities (non-weighted):
Common shares issuable:
RSUs		80		153		80		153
Stock options		1,162		1,121		1,162		1,344
Common stock purchase warrants		1,782		1,842		1,782		1,842
Convertible loan		—		37,500		—		37,500
Total excluded potentially dilutive shares		3,024		40,616		3,024		40,839

ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
ACCRUED EXPENSES
Cost sharing expenses under license agreement	$ 428	$ 428
Other fees and services	22	24
Payroll, payroll taxes and benefits	48	8
Professional services	141	117
Financed premiums on insurance policies	0	28
Property taxes	4	9
Franchise taxes	30	17
Total	$ 673	$ 631

COMMON STOCK PURCHASE WARRANTS (Tables)

6 Months Ended

Jun. 30, 2021

COMMON STOCK PURCHASE WARRANTS.

Schedule Of Common Stock Warrant Activity

Our warrant activity during the six month periods ended June 30, 2021 and 2020 is shown below (in thousands except price data):


	June 30,
	2021			2020
		WAvg			WAvg
		Exercise			Exercise
	Number	Price		Number	Price
Outstanding, Jan. 1	11,782	$	0.09	11,842	$	0.10
Issued	—		—	—		—
Exercised	—		—	—		—
Expired	—		—	—		—
Modification	—		—	—		—
Outstanding, Jun. 30	11,782	$	0.09	11,842	$	0.10

REVENUE FROM CONTRACTS WITH CUSTOMERS - Additional Information (Details) - USD ($) $ in Thousands						3 Months Ended			4 Months Ended	6 Months Ended		10 Months Ended	15 Months Ended
	Aug. 04, 2021	Jul. 08, 2021	Jul. 01, 2021	Jun. 28, 2019	Oct. 09, 2015	Jul. 31, 2021	Jun. 30, 2021	Jun. 30, 2020	Jul. 31, 2021	Jun. 30, 2021	Jun. 30, 2020	Apr. 29, 2020	Jul. 31, 2021
Contract Balance And Performance Obligations description										The Company had no contract assets and contract liability balances under the license and collaboration agreements at either June 30, 2021 or 2020.
Monthly license payment receivable					$ 5,000
Product sales return allowance liability							$ 0	$ 223		$ 0	$ 223
Sales return allowance liability								0			0
License fees received							$ 600	$ 1,050		$ 1,200	$ 2,100
AD Pharma Amended Agreement
Monthly license payment receivable				$ 350								$ 350	$ 200
AD Pharma Amended Agreement \| Subsequent event
Monthly license payment receivable	$ 200	$ 200	$ 200
Abuse Deterrent Pharma, LLC \| AD Pharma Amended Agreement
Monthly license payment receivable						$ 600			$ 600
Reimbursable development expense						$ 97
Abuse Deterrent Pharma, LLC \| AD Pharma Amended Agreement \| Subsequent event
Monthly license payment receivable	$ 200	$ 200	$ 200										$ 200

NET INCOME (LOSS) PER SHARE (Tables)

6 Months Ended

Jun. 30, 2021

NET INCOME (LOSS) PER SHARE

Schedule of reconciliation of basic and diluted

A reconciliation of the numerators and denominators of basic and diluted net income (loss) per share (“EPS”) consisted of the following (in thousands except per share data):


	Three months Ended				Six months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Basic net income (loss) per share
Numerator: net income (loss)	$	(387)	$	308	$	(646)	$	(287)
Denominator (weighted average):
Common shares		32,496		21,650		27,314		21,650
RSUs – vested		393		654		393		637
Common stock purchase warrants		10,000		10,000		10,000		10,000
Basic weighted average shares outstanding		42,889		32,304		37,707		32,287
Basic net income (loss) per share	$	(0.01)	$	0.01	$	(0.02)	$	(0.01)

Diluted net income (loss) per share
Numerator: net income (loss)	$	(387)	$	308	$	(646)	$	(287)
Denominator (weighted average):
Common shares		32,496		21,650		27,314		21,650
RSUs		393		717		393		637
Stock options		—		115		—		—
Common stock purchase warrants		10,000		10,000		10,000		10,000
Diluted weighted average shares outstanding		42,889		32,482		37,707		32,287
Diluted net income (loss) per share	$	(0.01)	$	0.01	$	(0.02)	$	(0.01)


Excluded securities (non-weighted):
Common shares issuable:
RSUs		80		153		80		153
Stock options		1,162		1,121		1,162		1,344
Common stock purchase warrants		1,782		1,842		1,782		1,842
Convertible loan		—		37,500		—		37,500
Total excluded potentially dilutive shares		3,024		40,616		3,024		40,839

SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2021

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 14 – SUBSEQUENT EVENTS

On each of July 1, 2021, July 8, 2021, and August 4, 2021 we received from AD Pharma the $200 thousand payment for the February 2021, March 2021, and April 2021 license fees, respectively.

On July 21, 2021 we were notified by JP Morgan Chase Bank that the 1^st Loan under the Paycheck Protection Program of $269 thousand has been forgiven in its entirety.

On July 26, 2021 we received an amendment to its License, Development and Commercialization Agreement regarding Acura’s LIMITx™ LTX-03 product candidate with Abuse Deterrent Pharma, LLC to extend the NDA Acceptance Date for LTX-03 to February 28, 2022.

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenues:
Royalties	$ 3	$ 34	$ 35	$ 67
Collaboration - related party	10	44	22	52
License fees - related party	600	1,050	1,200	2,100
Product sales, net of allowance (Note 3)	0	223	0	223
Total revenues	613	1,351	1,257	2,442
Expenses:
Research and development	390	445	795	832
General and administrative	523	485	908	1,672
Total expenses	913	930	1,703	2,504
Operating income (loss)	(300)	421	(446)	(62)
Interest expense - related party (Note 9)	(87)	(113)	(200)	(225)
Income (loss) before provision for income taxes	(387)	308	(646)	(287)
Provision for income taxes	0	0	0	0
Net income (loss)	$ (387)	$ 308	$ (646)	$ (287)
Net income (loss) per share:
Basic	$ (0.01)	$ 0.01	$ (0.02)	$ (0.01)
Diluted	$ (0.01)	$ 0.01	$ (0.02)	$ (0.01)
Weighted average number of shares outstanding:
Basic	42,889	32,304	37,707	32,287
Diluted	42,889	32,482	37,707	32,287

SHARE-BASED COMPENSATION EXPENSE- Additional Information (Details) - USD ($)	1 Months Ended						6 Months Ended
	May 31, 2021	Jan. 31, 2021	Jan. 31, 2020	Jan. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2021	Nov. 30, 2017
Employee Benefit Plans Disclosure [Line Items]
Aggregate intrinsic value of the option awards vested							$ 110,000
RSU \| Director
Employee Benefit Plans Disclosure [Line Items]
Deferred Compensation Arrangement with Individual, Recorded Liability							$ 35,000
RSU \| Restricted Stock Unit Award Plan, 2021 [Member]
Employee Benefit Plans Disclosure [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant							2,230,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	2,500,000
RSU \| Restricted Stock Unit Award Plan, 2021 [Member] \| Four Non Employee Directors
Employee Benefit Plans Disclosure [Line Items]
Share Based Compensation, Non Employee Services Transaction, Cash Settlement, Percentage	40.00%
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period	66,000
RSU \| Restricted Stock Unit Award Plan, 2021 [Member] \| Four Non Employee Directors \| Vesting at the end of calendar quarter June 30, 2021
Employee Benefit Plans Disclosure [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	50.00%
RSU \| Restricted Stock Unit Award Plan, 2021 [Member] \| Four Non Employee Directors \| Vesting at each end of calendar quarter in 2021 thereafter.
Employee Benefit Plans Disclosure [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	25.00%
2017 Restricted Stock Unit Award Plan
Employee Benefit Plans Disclosure [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant							0
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage						100.00%
Share-based Compensation Arrangement by Share-based Payment Award, Description							stock, for up to 40%
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized								1,500,000
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period					488,000	200,000
2017 Restricted Stock Unit Award Plan \| Employees
Employee Benefit Plans Disclosure [Line Items]
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period		228,000	64,000
2017 Restricted Stock Unit Award Plan \| Employees \| Distributed And Settled In Common Stock
Employee Benefit Plans Disclosure [Line Items]
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period		185,000	54,000
2017 Restricted Stock Unit Award Plan \| Employees \| Settlement For Purchase Price
Employee Benefit Plans Disclosure [Line Items]
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period		43,000	10,000
2017 Restricted Stock Unit Award Plan \| Four Non Employee Directors
Employee Benefit Plans Disclosure [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage			25.00%	25.00%
Share-based Compensation Arrangement by Share-based Payment Award, Description			stock, for up to 40%	stock, for up to 40%
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period			55,000	83,000
Non-employee director \| 2017 Restricted Stock Unit Award Plan
Employee Benefit Plans Disclosure [Line Items]
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period			333,000
Non-employee director \| 2017 Restricted Stock Unit Award Plan \| Settled In Cash
Employee Benefit Plans Disclosure [Line Items]
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period			33,000
Non-employee director \| 2017 Restricted Stock Unit Award Plan \| Distributed And Settled In Common Stock
Employee Benefit Plans Disclosure [Line Items]
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period		219,000	296,000	267,000
Non-employee director \| 2017 Restricted Stock Unit Award Plan \| Settlement For Purchase Price
Employee Benefit Plans Disclosure [Line Items]
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period			4,000

SHARE-BASED COMPENSATION EXPENSE - Non-Cash Share-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Total Stock Compensation
Allocated Share-based Compensation Expense	$ 63	$ 18	$ 63	$ 33
Research and development expense:
Total Stock Compensation
Allocated Share-based Compensation Expense	0	0
Research and development expense: \| Stock option awards
Total Stock Compensation
Allocated Share-based Compensation Expense	0	0
Research and development expense: \| RSU
Total Stock Compensation
Allocated Share-based Compensation Expense	0	0
General and administrative expense:
Total Stock Compensation
Allocated Share-based Compensation Expense	63	18	63	33
General and administrative expense: \| Stock option awards
Total Stock Compensation
Allocated Share-based Compensation Expense	0	0
General and administrative expense: \| RSU
Total Stock Compensation
Allocated Share-based Compensation Expense	$ 63	$ 18	$ 63	$ 33

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Assets:
Cash	$ 167	$ 413
Royalty receivable	0	30
Collaboration revenue receivable from related party	114	197
License fee revenue receivable from related party	1,000	400
Prepaid expenses and other current assets	28	139
Total current assets	1,309	1,179
Finance lease right of use	66	0
Property, plant and equipment, net (Note 5)	461	484
Intangible asset, net (Note 2)	60	73
Total assets	1,896	1,736
Liabilities:
Accounts payable	205	31
Accrued expenses (Note 6)	673	631
Finance lease liability - current	33	0
Loans under CARES Act	164	164
Other current liabilities (Note 10)	35	18
Accrued interest to related party (Note 7)	0	678
Convertible debt to related party, net of discounts (Note 7)	0	6,000
Total current liabilities	1,110	7,522
Finance lease liability - noncurrent	33	0
Loans under CARES Act - noncurrent	371	105
Total liabilities	1,514	7,627
Commitments and contingencies
Stockholders' equity (deficit):
Common stock - $0.01 par value per share; 100,000 shares authorized, 65,089 and 21,650 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively	651	216
Additional paid-in capital	389,581	383,097
Accumulated deficit	(389,850)	(389,204)
Total stockholders' equity (deficit)	382	(5,891)
Total liabilities and stockholders' equity (deficit)	$ 1,896	$ 1,736

COMMON STOCK PURCHASE WARRANTS - Warrant Activity (Details) - Common stock purchase warrants - $ / shares shares in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Number of Options
Number of Options Outstanding, beginning	11,782	11,842
Number of Options, Issued	0	0
Number of Options, Exercised	0	0
Number of Options, Expired	0	0
Number of Options, Modification	0	0
Number of Options Outstanding, ending	11,782	11,842
Weighted Average Exercise Price
Weighted Average Exercise Price, beginning	$ 0.09	$ 0.10
Weighted Average Exercise Price, Issued	0	0
Weighted Average Exercise Price, Exercised	0	0
Weighted Average Exercise Price, Expired	0	0
Weighted Average Exercise Price, Modification	0	0
Weighted Average Exercise Price, ending	$ 0.09	$ 0.10

CONSOLIDATED STATEMENT OF CHANGES IN ACCUMULATED STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at Dec. 31, 2019	$ 213	$ 383,042	$ (387,996)	$ (4,741)
Balance (in shares) at Dec. 31, 2019	21,300
Net (loss) income			(595)	(595)
Non-cash share-based compensation		9		9
Net distribution of common stock pursuant to restricted stock unit award plan	$ 3	19		22
Net distribution of common stock pursuant to restricted stock unit award plan (in shares)	350
Balance at Mar. 31, 2020	$ 216	383,070	(388,591)	(5,305)
Balance (in shares) at Mar. 31, 2020	21,650
Balance at Dec. 31, 2019	$ 213	383,042	(387,996)	(4,741)
Balance (in shares) at Dec. 31, 2019	21,300
Net (loss) income				(287)
Balance at Jun. 30, 2020	$ 216	383,079	(388,283)	(4,988)
Balance (in shares) at Jun. 30, 2020	21,650
Balance at Mar. 31, 2020	$ 216	383,070	(388,591)	(5,305)
Balance (in shares) at Mar. 31, 2020	21,650
Net (loss) income			308	308
Non-cash share-based compensation		9		9
Balance at Jun. 30, 2020	$ 216	383,079	(388,283)	(4,988)
Balance (in shares) at Jun. 30, 2020	21,650
Balance at Dec. 31, 2020	$ 216	383,097	(389,204)	(5,891)
Balance (in shares) at Dec. 31, 2020	21,650
Net (loss) income			(259)	(259)
Net distribution of common stock pursuant to restricted stock unit award plan	$ 4	9		13
Net distribution of common stock pursuant to restricted stock unit award plan (in shares)	405
Exercise of stock options	$ 1	(1)
Exercise of stock options (in shares)	50
Balance at Mar. 31, 2021	$ 221	383,105	(389,463)	(6,137)
Balance (in shares) at Mar. 31, 2021	22,105
Balance at Dec. 31, 2020	$ 216	383,097	(389,204)	(5,891)
Balance (in shares) at Dec. 31, 2020	21,650
Net (loss) income				(646)
Balance at Jun. 30, 2021	$ 651	389,581	(389,850)	382
Balance (in shares) at Jun. 30, 2021	65,089
Balance at Mar. 31, 2021	$ 221	383,105	(389,463)	(6,137)
Balance (in shares) at Mar. 31, 2021	22,105
Net (loss) income			(387)	(387)
Non-cash share-based compensation		29		29
Conversion of debt principal	$ 375	5,625		6,000
Conversion of debt principal(In shares)	37,500
Conversion of debt interest	$ 55	822		877
Conversion of debt interest(in shares)	5,484
Balance at Jun. 30, 2021	$ 651	$ 389,581	$ (389,850)	$ 382
Balance (in shares) at Jun. 30, 2021	65,089

INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands		6 Months Ended
	Jun. 09, 2021	Jun. 30, 2021
Income Tax Disclosure [Line Items]
Federal NOLs		$ 138,000
Operating Loss Carryforwards, Expiration Term		20 years
Operating Loss Carry Forwards Expiration Year		2037
Tax Credit Carryforward, Amount		$ 150
AD Pharma Amended Agreement \| Abuse Deterrent Pharma, LLC
Income Tax Disclosure [Line Items]
Debt Conversion, Original Debt, Amount	$ 6,000
Unpaid interest	$ 877
Principal and interest converted shares	42,984,375

COMMON STOCK PURCHASE WARRANTS

6 Months Ended

Jun. 30, 2021

COMMON STOCK PURCHASE WARRANTS.

COMMON STOCK PURCHASE WARRANTS

NOTE 9 – COMMON STOCK PURCHASE WARRANTS

Our warrant activity during the six month periods ended June 30, 2021 and 2020 is shown below (in thousands except price data):


	June 30,
	2021			2020
		WAvg			WAvg
		Exercise			Exercise
	Number	Price		Number	Price
Outstanding, Jan. 1	11,782	$	0.09	11,842	$	0.10
Issued	—		—	—		—
Exercised	—		—	—		—
Expired	—		—	—		—
Modification	—		—	—		—
Outstanding, Jun. 30	11,782	$	0.09	11,842	$	0.10

As part of our July 2017 private placement transaction with Mr. Schutte, we issued warrants to purchase 1,782,531 shares of our common stock. The warrants are immediately exercisable at a price of $0.528 per share and expire five years after issuance in July 2022. (See Note 8). We have assigned a relative fair value of $495 thousand to the warrants out of the total $4.0 million proceeds from the private placement transaction and have accounted for these warrants as equity.

In June 2019 as part of the changes made to the loan agreements we had with Mr. Schutte, each having an original due date of January 2, 2020, we issued to him a warrant to purchase 10.0 million shares of our common stock exercisable at a price of $0.01 per share and expire five years after issuance in June 2024. We obtained a valuation of fair value on the warrant and $1.145 million was allocated to the warrant and accounted for as equity. (See Note 7 and Note 8). The warrant for 10.0 million shares was assigned and transferred by Mr. Schutte to AD Pharma on June 28, 2019.

During December 2020, warrants expired that were exercisable for 60 thousand shares of our common stock and had an exercise price of $2.52 per share.

SHARE-BASED COMPENSATION EXPENSE - Stock Option plan activity (Details) - Stock Option Plan - $ / shares shares in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Share based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options Outstanding, beginning	1,254	1,356
Number of Options, Granted	0	0
Number of Options, Exercised	(80)	0
Number of Options, Forfeited	0	0
Number of Options, Expired	(12)	(12)
Number of Options Outstanding, ending	1,162	1,344
Number of Options exercisable	1,162	1,344
Weighted Average Exercise Price, beginning	$ 3.46	$ 4.45
Weighted Average Exercise Price, Granted	0	0
Weighted Average Exercise Price, Exercised	0.15	0
Weighted Average Exercise Price, Forfeited	0	0
Weighted Average Exercise Price, Expired	17.30	27.35
Weighted Average Exercise Price, ending	3.55	4.24
Weighted Average Exercise Price, Options exercisable	$ 3.55	$ 4.24

PROPERTY, PLANT AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
PROPERTY, PLANT AND EQUIPMENT
Depreciation	$ 11	$ 14	$ 23	$ 29

ACCRUED EXPENSES

6 Months Ended

Jun. 30, 2021

ACCRUED EXPENSES

ACCRUED EXPENSES

NOTE 6 – ACCRUED EXPENSES

Accrued expenses are summarized as follows (in thousands):


	June 30,		December 31,
	2021		2020

	(in thousands)
Cost sharing expenses under license agreements	$	428	$	428
Other fees and services		22		24
Payroll, payroll taxes and benefits		48		8
Professional services		141		117
Financed premiums on insurance policies		—		28
Property taxes		4		9
Franchise taxes		30		17
Total	$	673	$	631