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EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK UNITS
 6 Months Ended
Jun. 30, 2025
EMPLOYEE STOCK OPTIONS, RESTRICTED STOCK AWARD PLAN AND 401(k) [Abstract]  
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK UNITS
NOTE 11 — EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK UNITS
Share-based compensation expense charged against income for share-based awards during the three and six months ended June 30, 2025 and 2024 was as follows. These amounts are included in General and administrative expense in the Condensed Statements of Operations.
Three Months Ended
Six Months Ended
June 30, 2025June 30, 2024June 30, 2025June 30, 2024
Share-based compensation expense from:
Employee stock options
$— $— $— $— 
Restricted stock unit grants
1,022,645 996,381 2,269,974 2,128,078 
Performance stock unit awards
329,194 1,081,397 772,823 1,673,532 
Total share-based compensation$1,351,839 $2,077,778 $3,042,797 $3,801,610 
In 2011, the Board of Directors (the "Board") of the Company approved and adopted a long-term incentive plan (the “2011 Plan”), which was subsequently approved and amended by the stockholders. There were no shares eligible for grant, either as stock options or as restricted stock, as of June 30, 2025.
In 2021, the Board and Company stockholders approved and adopted the Ring Energy, Inc. 2021 Omnibus Incentive Plan (the “2021 Plan”). The 2021 Plan provides that the Company may grant options, stock appreciation rights, restricted shares, restricted stock units, performance-based awards, other share-based awards, other cash-based awards, or any combination of the foregoing. At the 2023 Annual Meeting of Stockholders, the stockholders approved an amendment to the 2021 Plan to increase the number of shares available under the 2021 Plan by 6.0 million. At the 2025 Annual Meeting of Stockholders, the stockholders approved a second amendment to the 2021 Plan to increase the number of shares available under the 2021 Plan by 11.5 million. There were 11,511,061 shares available for grant as of June 30, 2025 under the 2021 Plan.
Employee Stock Options
A summary of the status of the stock options as of June 30, 2025 and 2024 and changes during the respective six month periods then ended are as follows:
OptionsWeighted-
Average
Exercise Price		Weighted-Average Remaining Contractual TermAggregate Intrinsic Value
Outstanding, December 31, 202370,500$10.33 
Granted—— 
Forfeited—— 
Expired(5,000)5.50 
Exercised—— 
Outstanding, March 31, 202465,500$10.70 2.31 years$— 
Exercisable, March 31, 202465,500$10.70 2.31 years
Granted—— 
Forfeited—— 
Expired—— 
Exercised—— 
Outstanding, June 30, 202465,500$10.70 2.06 years$— 
Exercisable, June 30, 202465,500$10.70 2.06 years
Outstanding, December 31, 202465,500$10.70 
Granted—— 
Forfeited—— 
Expired—— 
Exercised—— 
Outstanding, March 31, 202565,500$10.70 1.31 years$— 
Exercisable, March 31, 202565,500$10.70 1.31 years
Granted—— 
Forfeited—— 
Expired——
Exercised—— 
Outstanding, June 30, 202565,500$10.70 1.06 years$— 
Exercisable, June 30, 202565,500$10.70 1.06 years
The intrinsic values were calculated using the closing price on June 30, 2025 of $0.79 and the closing price on June 30, 2024 of $1.69. As of June 30, 2025, the Company had $0 of unrecognized compensation cost related to stock options.
Restricted Stock Units
A summary of the restricted stock unit ("RSU") activity as of June 30, 2025 and 2024, respectively, and changes during the respective six month periods then ended are as follows:
Restricted Stock UnitsWeighted-
Average Grant
Date Fair Value
Outstanding, December 31, 20233,148,226 $2.40 
Granted2,647,970 1.30 
Forfeited or rescinded(26,802)1.30 
Vested(1,342,112)2.35 
Outstanding, March 31, 20244,427,282 $1.77 
Granted60,000 2.04 
Forfeited or rescinded(66,101)1.43 
Vested(303,797)2.74 
Outstanding, June 30, 20244,117,384$1.70 
Outstanding, December 31, 20243,817,128 $1.70 
Granted3,691,373 1.31 
Forfeited or rescinded— — 
Vested(1,983,465)1.75 
Outstanding, March 31, 20255,525,036 $1.42 
Granted76,177 0.92 
Forfeited or rescinded(86,238)1.31 
Vested(41,834)2.12 
Outstanding, June 30, 20255,473,141$1.41 
As of June 30, 2025, the Company had $4,763,815 of unrecognized compensation cost related to RSU grants that will be recognized over a weighted average period of 2.14 years. Grant activity for the six months ended June 30, 2025 was primarily RSU grants for the annual long-term incentive plan awards for employees. Grant activity for the three months ended June 30, 2025 was for a non-employee director.
Performance Stock Units
A summary of the status of the performance stock unit ("PSU") grants as of June 30, 2025 and 2024, respectively, along with changes during the respective six month periods then ended are as follows:
Performance Stock UnitsWeighted-
Average Grant
Date Fair Value
Outstanding, December 31, 20232,022,378 $3.11 
Granted— — 
Forfeited or rescinded— — 
Vested— — 
Outstanding, March 31, 20242,022,378 $3.11 
Granted1,378,378 $2.27 
Forfeited or rescinded— $— 
Vested— $— 
Outstanding, June 30, 20243,400,756 $2.77 
Outstanding, December 31, 20241,891,892 $2.47 
Granted— — 
Forfeited or rescinded— — 
Vested— — 
Outstanding, March 31, 20251,891,892 $2.47 
Granted1,624,756 $0.93 
Forfeited or rescinded— $— 
Vested— $— 
Outstanding, June 30, 20253,516,648 $1.76 
As of June 30, 2025, the Company had $3,263,646 of unrecognized compensation cost related to the PSU awards that will be recognized over a weighted average period of 1.66 years.