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Stock-Based Incentive Plan | 9 Months Ended
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Mar. 31, 2022
Share-based Payment Arrangement [Abstract] |
Stock-Based Incentive Plan | Stock-Based Incentive Plan The Evolution Petroleum Corporation 2016 Equity Incentive Plan ("2016 Plan"), approved at the December 2016 annual meeting of stockholders, authorizes 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 to a maximum of 3,600,000 shares. As of March 31, 2022 and June 30, 2021, 1,826,775 shares and 2,206,294 shares, respectively, remained available for grant under the 2016 Plan. Time-Vested Restricted Stock These awards contain service-based vesting conditions and expire after a maximum of four years from the date of grant if unvested. The common shares underlying these awards are issued on the date of grant and participate in dividends paid by the Company. These serviced-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. For such awards, grant date fair value is based on market value of the Company's common stock at the time of grant. This value is then amortized ratably over the term of the grant. Previously recognized amortization expense subsequent to the last vesting date of an award is reversed in the event that the holder has no longer rendered service to the Company resulting in forfeiture of the award. Performance-Based Restricted Stock and Performance-Based Contingent Shares Presently under the 2016 Plan, the Company has only granted such awards having market-based vesting conditions based on the price of its common stock, the intrinsic value indexed solely to its common stock and the intrinsic value indexed to its common stock compared to the performance of the common stock of its peers. While the 2016 Plan also provides for awards whose vesting is based upon other performance conditions that relate to attaining Company-specific operating goals such as earnings, revenues, and other operational goals, no such awards have been granted under the 2016 Plan nor have any such awards previously granted by legacy plans been outstanding during the nine months ended March 31, 2022 and 2021. The common shares underlying our performance-based restricted stock awards are issued on the date of grant and participate in dividends paid by the Company and expire after a maximum of four years from the date of grant if unvested. Performance-based contingent shares do not participate in dividends and shares are only issued upon the attainment of vesting conditions which generally have a lower probability of achievement and expire after a maximum of four years from the date of grant if unvested. Shares underlying performance-based contingent shares are reserved from the 2016 Plan. Vesting of grants with market-based vesting conditions is dependent on the future price of the Company’s common stock. Such awards vest if the trailing total returns on the Company’s common stock for a specified three-year period exceed the corresponding total returns of various quartiles of indices consisting of peer companies or, in some cases, vest when the average of the Company's closing common stock price over a defined measurement period meets or exceeds a required common stock price. As discussed below, a third party valuation firm estimates the grant date fair value of the award as well as the expected vesting period. This value is amortized ratably over the expected vesting period, which may be less than the term of the grant. Previously recognized compensation expense is only reversed for the awards with market-based vesting conditions if the requisite service period is not rendered by the holder resulting in forfeiture of the award. During nine months ended March 31, 2022, the Company granted a total of 379,519 equity awards that included 182,577 shares of time-vested restricted stock primarily to employees under its long term incentive pay program together with annual awards to its directors, 131,293 shares of performance-based restricted stock, and 65,649 performance-based contingent share awards. During nine months ended March 31, 2021, the Company granted a total of 676,695 equity awards that included 307,455 shares of time-vested restricted stock, primarily to employees under its long-term incentive pay program together with annual awards to directors, 246,160 shares of performance-based restricted stock, and 123,080 performance-based contingent share awards. 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 which, for accounting purposes, was treated as a cancellation and replacement of the same number of awards. As mentioned above for awards with market-based vesting conditions, the Company utilizes third-party independent assessments of grant date fair values and expected vesting periods that 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 peer companies in the index. During the nine months ended March 31, 2022 and 2021, the assumptions used in the Monte Carlo simulation valuations were as follows:
| Nine Months Ended March 31,
| 2022 |  | 2021
Weighted average fair value of market-based awards granted | $ | 3.10 |  |  | $ | 3.08 |
Risk-free interest rate | 0.53% to 0.60% |  | 0.23 | %
Expected vesting term in years | 2.64 to 2.79 |  | 2.56
Expected volatility | 64.7% to 64.7% |  | 56.9 | %
Dividend yield | 4.8% to 6.3% |  | 3.2 | %
Unvested restricted stock awards at March 31, 2022 consisted of the following:
| Number of Restricted Shares |  | Weighted Average Grant-Date Fair Value
Service-based awards | 330,555 |  |  | $ | 4.70 |
Performance-based awards | 379,910 |  |  | 3.34 |
Unvested restricted stock at March 31, 2022 | 710,465 |  |  | $ | 3.97 |
The following table sets forth the restricted stock transactions for the nine months ended March 31, 2022:
| Number of Restricted Shares |  | Weighted Average Grant-Date Fair Value |  | Unamortized Compensation Expense at March 31, 2022 |  | Weighted Average Remaining Amortization Period (Years)
Unvested restricted stock at July 1, 2021 | 669,295 |  |  | $ | 3.37 |  |  |  |  |
Service-based shares granted | 182,577 |  |  | 5.73 |  |  |  |  |
Performance-based shares granted | 131,293 |  |  | 3.31 |  |  |  |  |
Vested | (170,884) |  |  | 3.27 |  |  |  |  |
Forfeited | (101,816) |  |  | 3.53 |  |  |  |  |
Unvested restricted stock at March 31, 2022 | 710,465 |  |  | $ | 3.97 |  |  | $ | 1,850,758 |  |  | 2.0
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 March 31, 2022 |  | Weighted Average Remaining Amortization Period (Years)
Unvested contingent shares at July 1, 2021 | 323,080 |  |  | $ | 2.84 |  |  |  |  |
Performance-based awards granted | 65,649 |  |  | 2.67 |  |  |  |  |
Forfeited | (27,483) |  |  | 1.92 |  |  |  |  |
Unvested contingent shares at March 31, 2022 | 361,246 |  |  | $ | 2.88 |  |  | $ | 224,477 |  |  | 1.9
Stock-based Compensation Expense Expenses related to all of the above equity awards for the three months ended March 31, 2022 and 2021 were $0.3 million for both periods. Expenses for the nine months ended March 31, 2022 and 2021 were $0.9 million for both periods.

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