Stock-Based and Other Long-Term Incentive Compensation

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based and Other Long-Term Incentive Compensation

Stock Options

A summary of all option activity as of December 31, 2020, and changes during the nine months ended September 30, 2021 is presented below.


	Number of Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Outstanding, December 31, 2020	161,334	$	24.48	3.48	$	—
Granted	—	—		—	—

Cancelled / Forfeited	—	—		—	—
Expired	(16,000)	17.81		—	—
Outstanding, September 30, 2021	145,334	$	25.21	3.11	$	—
Exercisable, September 30, 2021	145,334	$	25.21	3.11	$	—

The following table summarizes information about our stock options outstanding at September 30, 2021:


Range of Exercise Prices	Options Outstanding				Options Exercisable
	Shares	Weighted Average Remaining Contractual Life (years)	Weighted Average Exercise Price		Shares	Weighted Average Exercise Price
$0.01-18.00	8,500	0.32	$	14.89	8,500	$	14.89
$18.01-22.00	20,500	1.47	18.75		20,500	18.75
$22.01-26.00	42,167	3.53	22.90		42,167	22.90
$26.01-30.00	30,000	5.38	28.15		30,000	28.15
$30.01-34.00	44,167	2.47	30.41		44,167	30.41
	145,334	3.11	$	25.21	145,334	$	25.21

As of September 30, 2021 and December 31, 2020, there were no unvested stock options.

As of September 30, 2021, there was no unrecognized compensation cost related to unvested options. For the nine months ended September 30, 2021 there was no compensation expense for stock options. For the nine months ended September 30, 2020, total compensation expense for stock options was $18,000.

Restricted Shares/Units

In accordance with the Company's employment agreement with Stephen Taylor, the Company's Chief Executive Officer, the Compensation Committee of the Company's Board of Directors reviewed his performance in determining the issuance of restricted common stock. Based on this review, which included consideration of the Company's 2020 performance, Mr. Taylor was awarded 109,212 restricted shares on March 18, 2021, which vest over three years, in equal annual installments, beginning March 18, 2022. On March 18, 2021, the Compensation Committee awarded 20,000 restricted shares to our Vice President of Technical Services, James Hazlett. The restricted shares to Mr. Hazlett vest over three years, in equal annual installments, beginning March 18, 2022. On June 17, 2021, the Compensation Committee awarded 5,000 restricted shares to our Vice President and Chief Financial Officer, Micah C. Foster. The restricted shares granted to Mr. Foster vest over 3 years, in equal annual installments, beginning on June 17, 2022. On March 18, 2021, we also awarded and issued 5,612 shares of restricted common stock to each of our three independent members of our Board of Directors as partial payment for their services in 2021. On April 1, 2021, we awarded and issued 5,291 shares of restricted common stock to a newly appointed member of our Board of Directors as partial payment for his services in 2021. These awards of restricted stock vest one year from the date of grant. Total compensation expense related to these and previously granted restricted stock awards was $1.3 million and $1.7 million for the nine months ended September 30, 2021 and 2020, respectively. As of September 30, 2021, there was a total of $1.8 million of unrecognized compensation expense related to these shares/units which is expected to be recognized over the next 1.7 years.

A summary of all restricted stock/units outstanding as of December 31, 2020 and activity during the nine months ended September 30, 2021 is presented below:


	Number of Shares	Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value (in thousands)
Outstanding, December 31, 2020	258,101	$	12.87	1.61	$	2,447
Granted	156,339	8.93			1,406
Vested	(134,788)	14.94			1,258
Canceled/Forfeited	(3,333)	12.26			31
Outstanding, September 30, 2021	276,319	$	9.63	2.03	$	2,868

Other Long-Term Incentive Compensation

On April 28, 2020, based on its review of Mr. Taylor's 2019 performance, the Compensation Committee issued a long-term incentive award of $1.1 million to Mr. Taylor that vests in equal, annual tranches over 3 years beginning on the anniversary of the grant date. At the time of vesting, each tranche was or will be payable in cash or common stock at the discretion of the Compensation Committee. On March 18, 2021, based on its review of Mr. Taylor's 2020 performance, the Compensation Committee issued a long-term incentive award of $973,080 to Mr. Taylor that vests in equal, annual tranches over 3 years beginning on the anniversary of the grant date. In addition, on April 28, 2020, we issued a $50,000 award to three of our independent members of our Board of Directors as partial payment for their services in 2020. These awards vest one year from the date of grant and are payable in cash upon vesting. On March 18, 2021, we issued a $50,000 award to three of our independent members of our Board of Directors as partial payment for their services in 2021. On April 1, 2021, we issued a $50,000 award to a newly appointed independent member of our Board of Directors as partial payment for his services in 2021. These awards vest one year from the date of grant and are payable in cash upon vesting. The Company accounts for these other long-term incentive awards to Mr. Taylor and our independent Board members as liabilities under accrued liabilities on our condensed consolidated balance sheet. The vesting of these awards awards is subject to acceleration upon certain events, such as (i) death or disability of the recipient, (ii) certain circumstances in connection with a change of control of the Company, (iii) for executive officers, termination without cause (as defined in the agreement), and (iv) for executive officers, resignation for good reason (as defined). Total compensation expense related to these other long-term incentive awards was approximately $600,000 and $252,000 for the nine months ended September 30, 2021 and 2020, respectively. As of September 30, 2021, there was a total of $1.4 million of unrecognized compensation expense related to these other long-term incentive awards which is expected to be recognized over the next 2.0 years.