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Stock-Based Incentive Plan | 9 Months Ended
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Mar. 31, 2014
Stock-Based Incentive Plan |
Stock-Based Incentive Plan | Note 7—Stock-Based Incentive Plan We may grant option awards to purchase common stock (the “Stock Options”), restricted common stock awards (“Restricted Stock”), and unrestricted fully vested common stock to employees, directors, and consultants of the Company and its subsidiaries under the Natural Gas Systems Inc. 2003 Stock Plan (the “2003 Stock Plan”) and the Evolution Petroleum Corporation Amended and Restated 2004 Stock Plan (the “2004 Stock Plan” or together, the “EPM Stock Plans”). Option awards for the purchase of 600,000 shares of common stock were issued under the 2003 Stock Plan. The 2004 Stock Plan authorized the issuance of 6,500,000 shares of common stock. No further shares are available for grant under the 2003 Stock Plan and 812,281 shares remain available for grant under the 2004 Stock Plan as of March 31, 2014. We have also granted common stock warrants, as authorized by the Board of Directors, to employees in lieu of cash bonuses or as incentive awards to reward previous service or provide incentives to individuals to acquire a proprietary interest in our success and to remain in our service (the “Incentive Warrants”). These Incentive Warrants have similar characteristics of the Stock Options. A total of 1,037,500 Incentive Warrants have been issued, with Board of Directors approval, outside of the EPM Stock Plans. We have not issued Incentive Warrants since the listing of our shares on the NYSE MKT (formerly, the American Stock Exchange) in July 2006. Stock Options and Incentive Warrants For the nine months ended March 31, 2014 and 2013, stock-based compensation expense related to stock options and incentive warrants was $-0- and $26,274, respectively. As of August 31, 2012 all compensation costs attributable to Stock Options and Incentive Warrants had been recognized. No Stock Options or Incentive Warrants have been granted since August 2008. The following summary presents information regarding outstanding Stock Options and Incentive Warrants as of March 31, 2014, and the changes during the fiscal year:
|  | Number of Stock Options and Incentive Warrants |  | Weighted Average Exercise Price |  | Aggregate Intrinsic Value (1) |  | Weighted Average Remaining Contractual Term (in years) |
Stock Options and Incentive Warrants outstanding at July 1, 2013 |  | 4,822,820 |  | $ | 1.99 |  |  |  |  |
Exercised |  | (4,594,759 | ) | $ | 1.99 |  |  |  |  |
Stock Options and Incentive Warrants outstanding at March 31, 2014 |  | 228,061 |  | $ | 2.02 |  | $ | 2,443,524 |  | 1.79 |
Vested or expected to vest at March 31, 2014 |  | 228,061 |  | $ | 2.02 |  | $ | 2,443,524 |  | 1.79 |
Exercisable at March 31, 2014 |  | 228,061 |  | $ | 2.02 |  | $ | 2,443,524 |  | 1.79 |
(1) Based upon the difference between the market price of our common stock on the last trading date of the period ($12.73 as of March 31, 2014) and the Stock Option or Incentive Warrant exercise price of in-the-money Stock Options and Incentive Warrants. There were 4,594,759 Stock Options and Warrants exercised during the nine months ended March 31, 2014 with an aggregate intrinsic value of $47,011,615. During the nine months ended March 31, 2013 there were 18,922 Stock Options and Incentive Warrants that vested with a total grant date fair value of $46,359 and no unvested Stock Options and Incentive Warrants remained. Restricted Stock Stock-based compensation expense related to Restricted Stock grants for the three months ended March 31, 2014 and 2013 was $444,981 and $392,433, respectively. For the nine months ended March 31, 2014 and 2013, such compensation expense was $1,134,841 and $1,113,528 respectively. See Note 13 — Restructuring, for stock compensation included in Restructuring Charge for the nine months ended March 31, 2014. The following table sets forth the Restricted Stock transactions for the nine months ended March 31, 2014:
|  | Number of Restricted Shares |  | Weighted Average Grant-Date Fair Value |
Unvested at July 1, 2013 |  | 386,599 |  | $ | 6.65 |
Granted |  | 39,732 |  | 12.58 |
Vested |  | (255,326 | ) | $ | 6.45 |
Forfeited |  | (9,066 | ) | $ | 5.98 |
Unvested at March 31, 2014 |  | 161,939 |  | $ | 8.45 |
At March 31, 2014, unrecognized stock compensation expense related to Restricted Stock grants totaled $1,219,792. Such unrecognized expense will be recognized over a weighted average period of 2.2 years.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
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