XML 30 R18.htm IDEA: XBRL DOCUMENT
v3.20.4

Stock-Based Incentive Plan | 6 Months Ended
--- | ---
Dec. 31, 2020
Share-based Payment Arrangement [Abstract] |
Stock-Based Incentive Plan | Stock-Based Incentive Plan The Evolution Petroleum Corporation 2016 Equity Incentive Plan ("2016 Plan"), approved in the December 2016 annual meeting, authorized the issuance of 1,100,000 shares of common stock prior to its expiration on December 8, 2026. Incentives under the 2016 Plan may be granted to employees, directors, and consultants of the Company in any one or a combination of the following forms: incentive stock options and non-statutory stock options, stock appreciation rights, restricted stock awards and restricted stock unit awards, performance share awards, performance cash awards, and other forms of incentives valued in whole or in part by reference to, or otherwise based on, our common stock, including its appreciation in value. On December 9, 2020, an amendment to the 2016 Plan was approved by our stockholders which increased the number of shares available for issuance by 2,500,000 shares. As of December 31, 2020, 2,230,696 shares remained available for grant under the 2016 Plan. Restricted Stock and Contingent Restricted Stock The Company has awarded grants of both Restricted Stock and Contingent Restricted Stock as part of its long-term incentive plan. Such grants, which expire after a maximum of four years if unvested, contain service-based, performance-based, and market-based vesting provisions. The common shares underlying the Restricted Stock grants are issued on the date of grant. Contingent Restricted Stock grants vest only upon the attainment of higher performance-based or market-based vesting thresholds and are issued only upon vesting. Shares underlying Contingent Restricted Stock awards are reserved from the Plan they were granted under. During six months ended December 31, 2020, the Company granted 290,553 service-based restricted stock awards primarily to employees under its long term incentive program together with annual awards to its directors. In addition, under this program, the Company granted 246,160 market-based restricted stock awards and 123,080 market-based restricted share units to its employees. In addition to the foregoing, in connection with the retirement of the Company's former Chief Financial Officer, vesting was accelerated as to 50,524 aggregate shares of service- and market-based equity awards (with a weighted average fair value of $5.15 per share) which, for accounting purposes, was treated as a cancellation and replacement of the same number of awards which had a fair value of $2.79 per share. During the six months ended December 31, 2019, the chief executive officer upon his employment received 48,872 shares of serviced-based restricted common stock, which vests in three equal amounts on June 30, 2020, 2021 and 2022; he was also awarded a total of 200,000 market-based restricted stock units consisting of four equal tranches, each of which may vest only if its respective stock price requirement is met before the award term expires. Each tranche has a separate stated price requirement and respective vesting will occur only if, before July 1, 2023, the ninety-day trailing average Company stock share price equals or exceeds its tranche price requirement. Service-based awards vest with continuous employment by the Company, generally in annual installments over terms of three to four years. Awards to the Company's directors have one-year cliff vesting. Restricted Stock grants, which vest based on service, are valued at the fair market value on the date of grant and amortized over the service period. Performance-based grants vest upon the attainment of earnings, revenue, and other operational goals and require that the recipient remain an employee or director of the Company through the vesting date. The Company recognizes compensation expense for performance-based awards ratably over the expected vesting period based on third-party independent assessment of the grant date fair value and when it is deemed probable, for accounting purposes, that the performance criteria will be achieved. The expected vesting period may be deemed to be shorter than the term of the award. As of December 31, 2020, there were no performance-based awards outstanding. Many of our past market-based awards could vest if their respective two- or three-year trailing total returns on the Company’s common stock exceed the corresponding total returns of various quartiles of indices consisting of peer companies. Additionally, more recent market-based awards vest when the average of the Company's closing stock price over a defined measurement period meets or exceeds a required stock price. The third-party independent assessment of fair values and expected vesting periods of these awards are determined using a Monte Carlo simulation based on the historical volatility of the Company's total return compared to the historical volatilities of the other companies in the index. Compensation expense for market-based awards is recognized over the expected vesting period using the straight-line method, so long as the holder remains an employee or director of the Company. Total compensation expense is based on the fair value of the awards at the date of grant and is independent of vesting or expiration of the awards, except for termination of service. For market-based awards granted during the six months ended December 31, 2020 and 2019, the assumptions used in the Monte Carlo simulation valuations, expected lives and fair values were as follows:
| December 31, |  | December 31,
| 2020 |  | 2019
Weighted average fair value of market-based awards granted | $3.08 |  | $3.79
Risk-free interest rate | 0.23% |  | 1.65% to 1.87%
Expected vesting term in years | 2.56 |  | 1.35 to 2.56
Expected volatility | 56.9% |  | 38.6% to 43.7%
Dividend yield | 3.2% |  | 6% to 7.2%
Unvested Restricted Stock awards at December 31, 2020 consisted of the following:
| Number of Restricted Shares |  | Weighted Average Grant-Date Fair Value
Service-based awards | 399,174 |  |  | $ | 3.40 |
Market-based awards | 320,533 |  |  | 3.38 |
Unvested Restricted Stock at December 31, 2020 | 719,707 |  |  | $ | 3.39 |
The following table sets forth the Restricted Stock transactions for the six months ended December 31, 2020:
| Number of Restricted Shares |  | Weighted Average Grant-Date Fair Value |  | Unamortized Compensation Expense at December 31, 2020 |  | Weighted Average Remaining Amortization Period (Years)
Unvested at July 1, 2020 | 285,028 |  |  | $ | 5.53 |  |  |  |  |
Service-based shares granted | 341,077 |  |  | 2.93 |  |  |  |  |
Market-based shares granted | 246,160 |  |  | 3.08 |  |  |  |  |
Vested | (102,034) |  |  | 6.15 |  |  |  |  |
Forfeited | (50,524) |  |  | 5.15 |  |  |  |  |
Unvested Restricted Stock at December 31, 2020 | 719,707 |  |  | $ | 3.39 |  |  | $ | 2,023,800 |  |  | 2.3
Unvested Contingent Restricted Stock awards table below consists solely of market-based awards:
| Number of Contingent Restricted Shares |  | Weighted Average Grant-Date Fair Value |  | Unamortized Compensation Expense at December 31, 2020 |  | Weighted Average Remaining Amortization Period (Years)
Unvested at July 1, 2020 | 200,000 |  |  | $ | 3.50 |  |  |  |  |
Market-based awards granted | 123,080 |  |  | 1.76 |  |  |  |  |
Unvested contingent shares at December 31, 2020 | 323,080 |  |  | $ | 2.85 |  |  | $ | 228,734 |  |  | 2.32
Stock-based compensation expense related to Restricted Stock and Contingent Restricted Stock grants for the three months ended December 31, 2020 and 2019 was $317,506 and $236,190, respectively. For the six months ended December 31, 2020 and 2019, non-cash stock-based compensation expenses were $617,857 and $568,203, respectively.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration