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Stock-Based and Other Long-Term Incentive Compensation | 3 Months Ended
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Mar. 31, 2025
Share-Based Payment Arrangement [Abstract] |
Stock-Based and Other Long-Term Incentive Compensation | Stock-Based and Other Long-Term Incentive Compensation We maintain two stockholder approved plans for the issuance of stock-based compensation awards to our employees and Board of Director members: (i) the 2019 Equity Incentive Plan, as amended (the “Equity Incentive Plan”), and (ii) the 1998 Stock Option Plan, as amended (the “Stock Option Plan”). The following table summarizes the total stock-based compensation expense recognized during the periods presented:
| Three months ended March 31,
| 2025 |  | 2024
Equity-classified | $ | 359 |  |  | $ | 274 |
Liability-classified (1) | — |  |  | — |
| $ | 359 |  |  | $ | 274 |
(1) Represents compensation expense associated with awards that may be settled in cash at the option of the grantee including a nominal amount (less than $1 thousand) during the 2025 period and none during the 2024 period. 1998 Stock Option Plan The Stock Option Plan provides for the granting of incentive and non-qualified stock options to our employees for up to 1,000,000 shares of common stock. After consideration of the activity described in the table below, a total of 370,002 shares remained available for grant under the Stock Option Plan as of March 31, 2025. The last date that grants can be made under the Stock Option Plan is February 28, 2026. A summary of all option activity during the three months ended March 31, 2025 is presented below:
| Number of Shares Underlying Stock Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life (years) |  | Aggregate Intrinsic Value
Outstanding, December 31, 2024 | 113,751 |  |  | $ | 20.44 |  |  | 5.84 |  | $ | 747 |
Granted | 40,250 |  |  | $ | 22.19 |  |  |  |  | $ | — |
Exercised | — |  |  | $ | — |  |  |  |  | $ | — |
Canceled/Forfeited | (2,833) |  |  | $ | 21.57 |  |  |  |  | $ | 16 |
Expired | — |  |  | $ | — |  |  |  |  | $ | — |
Outstanding, March 31, 2025 | 151,168 |  |  | $ | 20.89 |  |  | 6.69 |  | $ | 344 |
Exercisable, March 31, 2025 | 64,921 |  |  | $ | 19.98 |  |  | 3.08 |  | $ | 261 |
The following table summarizes information about our stock options outstanding as of March 31, 2025:
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 | 29,501 |  |  | 6.99 |  | $ | 10.72 |  |  | 22,835 |  |  | $ | 10.68 |
$18.01-$26.00 | 5,000 |  |  | 9.38 |  | $ | 19.50 |  |  | 1,169 |  |  | $ | 19.65 |
$26.01-$30.00 | 116,667 |  |  | 6.49 |  | $ | 23.51 |  |  | 40,917 |  |  | $ | 25.18 |
| 151,168 |  |  | 6.69 |  | $ | 20.89 |  |  | 64,921 |  |  | $ | 19.98 |
The following table summarizes changes in our unvested stock options during the three months ended March 31, 2025:
| Shares |  | Weighted Average Grant Date Fair Value Per Share
Unvested, December 31, 2024 | 48,998 |  |  | $ | 11.35 |
Granted | 40,250 |  |  | $ | 12.06 |
Vested | (501) |  |  | $ | 10.45 |
Canceled/Forfeited | (2,500) |  |  | $ | 12.46 |
Unvested, March 31, 2025 | 86,247 |  |  | $ | 11.65 |
As of March 31, 2025, there was a total of approximately $0.6 million of unrecognized compensation cost related to unvested options which is expected to be recognized over the next 2.54 years. 2019 Equity Incentive Plan The Equity Incentive Plan provides for up to 1,150,000 shares of common stock for issuance in the form of awards for: (i) stock options, (ii) stock appreciation rights, (iii) restricted awards in the form of restricted stock and restricted stock units (“RSUs”), (iv) performance share awards, including performance share unit (“PSUs”) and (v) other equity-based awards. After consideration of the activity described in detail below, a total of 166,975 shares remained available for grant under the Equity Incentive Plan as of March 31, 2025. Time-Vested RSUs The following table summarizes all restricted stock and RSU activity during the three months ended March 31, 2025 is presented below:
| Number of Shares |  | Weighted Average Grant Date Fair Value |  | Weighted Average Remaining Contractual Life (years) |  | Aggregate Intrinsic Value
Outstanding, December 31, 2024 | 131,183 |  |  | $ | 16.39 |  |  | 5.15 |  | $ | 3,516 |
Granted | 55,859 |  |  | $ | 22.19 |  |  |  |  | $ | 1,240 |
Exercised | (22,891) |  |  | $ | 15.46 |  |  |  |  | $ | 580 |
Canceled/Forfeited | — |  |  | $ | — |  |  |  |  | $ | — |
Outstanding, March 31, 2025 | 164,151 |  |  | $ | 18.50 |  |  | 4.81 |  | $ | 3,606 |
As of March 31, 2025, there was a total of approximately $2.1 million of unrecognized compensation cost related to unvested restricted stock and RSUs which is expected to be recognized over the next 2.5 years. Cash Settled RSUs The 2024 grant of RSUs to the independent Board members that can be settled in cash represent liability-classified awards. Compensation expense associated with these awards is based upon the fair value of NGS common stock at each reporting period relative to that portion of the service period that has passed. Accordingly, the compensation expense is variable in nature.
| Number of Shares |  | Weighted Average Grant Date Fair Value |  | Weighted Average Remaining Contractual Life (years) |  | Aggregate Intrinsic Value
Outstanding, December 31, 2024 | 15,069 |  |  | $ | 19.51 |  |  | 0.50 |  | $ | 294 |
Granted | — |  |  |  |  |  |  | $ | — |
Vested | — |  |  |  |  |  |  | $ | — |
Canceled/Forfeited | (2,810) |  |  | $ | 19.57 |  |  |  |  | $ | 55 |
Outstanding, March 31, 2025 | 12,259 |  |  | $ | 19.50 |  |  | 0.30 |  | $ | 239 |
Performance Share Units The potential payout for the PSU awards is based upon performance for a three-year period ending December 31, 2026 for the 2024 grants and December 31, 2027 for the 2025 grants measured against relative total shareholder return (“TSR”) compared to a peer group of companies as established by the Compensation Committee. The PSU award payout ranges from zero (if the Company ranks below the 31.25 percentile) and up to 200% (if the Company ranks first) based upon our relative TSR performance ranking (subject to certain caps based on absolute TSR as defined in the PSU agreements). With respect to vesting, the PSUs have both a service condition and a market condition. Due to the presence of the TSR measurement for the common equity of the peer companies, including NGS common stock, which is deemed a “market condition,” the grant-date fair values of the PSUs have been determined using a binomial pricing model, or a Monte Carlo simulation model. The following table summarizes the weighted average grant date fair values of PSUs granted and the assumptions used in the Monte Carlo simulation model for the determination of the grant date fair values of our PSUs granted during the three months ended March 31, 2025:
Weighted-average grant date fair value of PSUs granted | $ | 28.05 |
Risk free rate | 3.93 | %
Expected volatility | 43.9 | %
Expected dividend yield | — | %
The following table summarizes all PSU activity during the three months ended March 31, 2025:
| Number of Shares |  | Weighted Average Grant Date Fair Value |  | Weighted Average Remaining Contractual Life (years) |  | Aggregate Intrinsic Value
Outstanding, December 31, 2024 | 56,764 |  |  | $ | 22.47 |  |  | 2.22 |  | $ | — |
Granted | 39,434 |  |  | $ | 28.05 |  |  |  |  | $ | — |
Vested | — |  |  |  |  |  |  | $ | — |
Canceled/Forfeited | — |  |  |  |  |  |  | $ | — |
Outstanding, March 31, 2025 | 96,198 |  |  | $ | 24.76 |  |  | 2.38 |  | $ | — |
As of March 31, 2024, there was a total of approximately $2.0 million of unrecognized compensation cost related to the unvested portion of the PSUs which is expected to be recognized over the next 2.38 years.

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