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Members’/Shareholders' Equity | 9 Months Ended
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Jun. 30, 2021
Equity [Abstract] |
Members’/Shareholders' Equity | Members’/Shareholders' Equity On October 7, 2020, the Board of Managers of REP LLC declared a $3.8 million cash dividend, paid on November 6, 2020. The cash dividend was declared for all issued and outstanding common units, including vested and unvested under the Riley Exploration - Permian, LLC 2018 Long Term Incentive Plan (the "2018 LTIP") of REP LLC. The portion of the cash dividend attributable to the unvested restricted units was accrued and will be paid in cash once the unvested restricted units fully vest. On February 4, 2021, the Board of Managers of REP LLC declared a $3.8 million cash dividend, paid on February 5, 2021. The cash dividend was declared for all issued and outstanding common units, including vested and unvested under the 2018 LTIP of REP LLC. The portion of the cash dividend attributable to the unvested restricted units was accrued and will be paid in cash once the unvested restricted units fully vest. Pursuant to the Merger Agreement and on February 26, 2021, the Company granted 198,024 restricted shares to certain executives under the 2021 LTIP. On March 1, 2021, the Company granted 3,374 restricted shares, which vest over a 1-year period, under the 2021 LTIP to the newly-added, independent directors that joined the Board of Directors in conjunction with the Merger. On March 4, 2021, the Board of Directors of the Company declared a cash dividend of $0.28 per share payable on all issued and outstanding common shares of the Company as of April 16, 2021, and was paid on May 7, 2021. The portion of the cash dividend attributable to the unvested restricted common shares was accrued and will be paid once the unvested restricted units fully vest. Cash dividends are approved at the sole discretion of the Board of Directors. On March 15, 2021, the Company granted 196,341 restricted shares and stock awards to certain employees and executives under the 2021 LTIP effective April 1, 2021. Share-Based and Unit-Based Compensation Upon the closing of the Merger and after giving effect to the adjustment resulting from the 1-for-12 reverse stock split, the 2021 LTIP had 1,387,022 shares of common stock available for issuance, of which 989,283 shares remained available as of June 30, 2021. 2021 Long-Term Incentive Plan The 2021 LTIP provides for potential grants of: (i) incentive stock options qualified as such under U.S. federal income tax laws ("ISO's"); (ii) stock options that do not qualify as incentive stock options; (iii) stock appreciation rights, or SARs; (iv) restricted stock awards; (v) restricted stock units, or RSUs; (vi) stock awards; (vii) performance awards; (viii) dividend equivalents; (ix) other share-based awards; (x) cash awards; and (xi) substitute awards, all of which are collectively referred to as the "Awards". The 2021 LTIP authorizes the Compensation Committee to administer the plan and designate eligible persons as participants, determine the type or types of Awards to be granted to an eligible person, determine the number of shares of stock or amount of cash to be covered by the Awards, approve the forms of award agreements for use under the plan, determine the terms and conditions of any Award, modify, waive or adjust any term or condition of an Award that has been granted, among other responsibilities delegated by the Company's Board. Restricted Shares The Company granted 198,024 restricted shares to certain executives under the 2021 LTIP in connection with the Merger. These grants substituted restricted common shares issued under the 2021 LTIP for the unvested restricted units granted under the 2018 LTIP. These restricted shares vest over a period of 8- to 33-months and the holder receives dividends, in arrears, once the shares vest. The Company has accrued for these dividends which are reported in accrued liabilities and other non-current liabilities. The total expense is amortized on a straight-line basis, over the vesting period. The Company recorded $425 thousand and $0 of share-based compensation expense for the nine months ended June 30, 2021 and 2020, respectively, related to this issuance. Approximately $2.0 million of additional share-based compensation expense will be recognized with this grant over the next 27 months. On March 1, 2021, the Company granted 3,374 restricted shares to certain directors under the 2021 LTIP, which vest over a 1-year period. The holder receives dividends, in arrears, once the shares vest. The Company has accrued for these dividends which are reported in accrued liabilities and other non-current liabilities. The total expense is amortized on a straight-line basis, over the vesting period. The Company recorded $25 thousand and $0 of share-based compensation expense for the nine months ended June 30, 2021 and 2020, respectively, related to this issuance. Approximately $57 thousand of additional share-based compensation expense will be recognized with this grant over the next 9 months. On March 15, 2021, the Company approved the grant of restricted shares and stock awards with a fixed dollar amount of $4.6 million that was settled in 196,341 restricted shares that were issued on April 1, 2021 based on the 10-day weighted average share price prior to April 1, 2021. Approximately 158,582 restricted shares fully vested on April 1, 2021. The remaining 37,759 restricted shares will vest on April 1, 2022. As the number of shares were variable on the grant date, the Company accounted for the awards that immediately vested on April 1, 2021 as a liability at March 31, 2021 with a value of $4.2 million. On April 1, 2021, the awards no longer met the classification of liability awards which the Company recognized the awards as equity and remeasured the fair value of the awards to be $4.6 million in accordance with ASC 718. The Company recorded $4.9 million and $0 of share-based compensation expense for the nine months ended June 30, 2021 and 2020, respectively, related to this issuance. Approximately $793 thousand of additional share-based compensation expense will be recognized with this grant over the next 9 months. Total share-based compensation expense of $0.8 million and $0, respectively, is for all of the share-based issuances outstanding for the three months ended June 30, 2021 and 2020. Total share-based compensation expense of $5.4 million and $0, respectively, is for all of the share-based issuances outstanding for the nine months ended June 30, 2021 and 2020. As of June 30, 2021, the Company had 239,158 restricted shares unvested. The Company will recognize any forfeited shares, and any unpaid dividends for those shares, as they occur as an increase to accrued liabilities and a reduction from shareholders' equity on the consolidated balance sheet. 2018 Long-Term Incentive Plan In connection with the Merger, the Company shareholders adopted an omnibus equity incentive plan, the 2021 LTIP, for the employees, consultants and the directors of the Company and its affiliates who perform services for the Company. The holders of unvested restricted units issued under the 2018 LTIP were issued substitute awards under the 2021 LTIP at the closing of the Merger. Restricted Units The Company granted 14,766 restricted units to certain executives on April 29, 2019. Restricted units vest over a two- to three-year period and the holder receives dividends, in arrears, once the units vest. The Company has accrued for these dividends and are reported in accrued liabilities and other non-current liabilities. The total expense is amortized on a straight-line basis, over the vesting period. The Company recorded $278 thousand and $484 thousand of unit-based compensation expense for the nine months ended June 30, 2021 and 2020 related to this issuance. The Company granted 15,767 restricted units to certain executives effective February 1, 2020 which vest over a three-year period and the Company simultaneously repurchased 1,229 shares from these executives for payment of their employee tax withholding obligations, resulting in a net issuance of 14,538. The total expense is amortized on a straight-line basis, over the vesting period. The Company recorded $203 thousand and $166 thousand of unit-based compensation expense for the nine months ended June 30, 2021 and 2020 related to this issuance. On October 1, 2020, the Company granted 13,309 restricted units to certain executives which vest over a three-year period. The total expense is amortized on a straight-line basis, over the vesting period. The Company recorded $208 thousand and $0 of unit-based compensation expense for the nine months ended June 30, 2021 and 2020 related to this issuance. On October 5, 2020, an executive of the Company forfeited 904 restricted units from the grant dated April 29, 2019 and 1,802 restricted units from the grant dated February 1, 2020 totaling a total forfeiture of 2,706 restricted units. Total unit-based compensation expense of $0 and $291 thousand, respectively, is for all of the unit-based issuances outstanding for the three months ended June 30, 2021 and 2020. Total unit-based compensation expense of $689 thousand and $650 thousand, respectively, is for all of the unit-based issuances outstanding for the nine months ended June 30, 2021 and 2020. Unit-based compensation expense is included in general and administrative costs on the Company's condensed consolidated statement of operations. The Company will recognize any forfeited units, and any unpaid dividends for those units, as they occur as a reduction to accrued liabilities and members' equity on the consolidated balance sheet.

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- Definition The entire disclosure for the formation, structure, control and ownership of a limited liability company (LLC). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 272 -URI http://asc.fasb.org/topic&trid=2124037 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 272 -SubTopic 10 -Section 50 -Paragraph 3 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6373374&loc=d3e70478-108055 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 272 -SubTopic 10 -Section 50 -Paragraph 3 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6373374&loc=d3e70478-108055 + Details
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