Fortress Biotech, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2015

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Schedule of Share-based Compensation, Activity

The following table summarizes the stock-based compensation expense from stock option, employee stock purchase programs and restricted Common Stock awards and warrants for the years ended December 31, 2015, 2014 and 2013 (dollars in thousands):

	For the Years Ended December 31,
($ in thousands)	2015		2014		2013
Employee awards	$	8,130	$	5,492	$	4,867
Executive awards of Fortress Companies' stock		2,228		-		-
Non-employee awards		33		54		897
Non-employee warrants		-		-		138
Fortress Companies (1)		3,900		-		-
Total stock-based compensation expense	$	14,291	$	5,546	$	5,902

(1)

Consists of approximately $50,400 of Avenue's compensation expenses, approximately $3.3 million of Checkpoint's compensation expense, and approximately $597,000 of JMC's compensation expenses on stock grants for the year ended December 31, 2015.

Schedule of Share-based Compensation, Stock Options, Activity

The following table summarizes Fortress stock option activities excluding activities related to Fortress Companies:

	Number of shares		Weighted average exercise price		Total weighted average intrinsic value		Weighted average remaining contractual life (years)
Options vested and expected to vest at December 31, 2014		2,164,365	$	4.69	$	-		7.38
Options granted		-		-		-		-
Options exercised		(100,000)		2.15		64,000		-
Options cancelled		(285,000)		7.57		42,200		-
Options vested and expected to vest at December 31, 2015		1,779,365	$	4.37	$	666,396		6.32
Options vested and exercisable		1,067,168	$	3.69	$	633,046		5.85

Nonvested Restricted Stock Shares Activity

The following table summarizes Fortress restricted stock awards and restricted stock units activities, excluding activities related to Fortress Companies:

	Number of shares		Weighted average grant price
Unvested balance at December 31, 2014		8,287,384	$	2.33
Restricted stock granted		200,000		3.04
Restricted stock vested		(816,449)		2.69
Restricted stock units granted		1,422,000		3.57
Restricted stock units cancelled		(10,000)		3.04
Restricted stock units vested		(325,000)		3.56
Unvested balance at December 31, 2015		8,757,935	$	2.47

Schedule of Warrant Activities

The following table summarizes Fortress warrant activities, excluding activities related to Fortress Companies:

	Number of shares		Weighted average exercise price		Total weighted average intrinsic value		Weighted average remaining contractual life (years)
Outstanding as of December 31, 2014		685,061	$	6.65	$	90,950.00		1.53
Granted		-		-		-		-
Exercised		-		-		-		-
Cancelled		(115,226)		8.33		-		-
Outstanding as of December 31, 2015		569,835	$	6.31	$	120,700		1.84
Exercisable as of December 31, 2015		569,835	$	6.31	$	120,700		1.84

Schedule of Fair Value of Separate Accounts by Major Category of Investment

On July 15, 2015, the following grants of 500,000 warrants each were made to Dr. Rosenwald and Mr. Weiss for their services to the Company:

Fortress Stock	Warrant Shares		Risk Free Rate			Volatilty			Life		Exercise price		Fair Value
Mustang		1,000,000		2.36	%		106.11	%		10	$	0.147	$	135
Checkpoint		1,000,000		2.36	%		106.11	%		10	$	0.129	$	118
Avenue		1,000,000		2.36	%		106.11	%		10	$	0.146	$	134
CNDO SO		1,000,000		2.36	%		106.11	%		10	$	1.190	$	1,091
Helocyte		1,000,000		2.36	%		106.11	%		10	$	0.097	$	89
JMC		1,000,000		2.36	%		106.11	%		10	$	0.650	$	596
Escala		1,000,000		2.36	%		106.11	%		10	$	0.071	$	65

Schedule of Share-based Compensation, Restricted Stock Award Activity

	RSU Grant		Vesting Term		Vested		Forfeited		Unvested		Fair Value per Share
President		1,500,000		4		250,000		(1,250,000)		-	$	0.650
Sales Operations Staff		450,000		4		116,666		-		333,334	$	0.650
		1,950,000				366,666		(1,250,000)		333,334

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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