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Shared-Based Compensation | 6 Months Ended
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Jun. 30, 2023
Share-Based Payment Arrangement [Abstract] |
Shared-Based Compensation | Share-Based Compensation The following table lists the components of share-based compensation expense by type of award, which is recognized in the “Selling, general, and administrative expense” line in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Restricted stock | $ | 612 |  |  | 2,158 |  |  | 779 |  |  | 2,762 |
Performance share units | (142) |  |  | 417 |  |  | 58 |  |  | 706 |
Stock options | — |  |  | $ | 31 |  |  | $ | 14 |  |  | $ | 87 |
Share-based compensation expense | $ | 470 |  |  | $ | 2,606 |  |  | $ | 851 |  |  | $ | 3,555 |
Restricted Stock The following table presents the status of unvested restricted stock awards as of June 30, 2023 and changes during the six months then ended.
| Nonvested Restricted Shares |  | Weighted Average Grant-Date Fair Value
Unvested at January 1, 2023 | 1,038 |  |  | $ | 4.03 |
Granted | 3,381 |  |  | 1.17 |
Vested | (849) |  |  | 4.15 |
Forfeited | (123) |  |  | 1.56 |
Unvested at June 30, 2023 | 3,447 |  |  | $ | 1.28 |
During the six months ended June 30, 2023, we granted 1,881,000 shares of restricted stock to non-executive directors, officers and certain other employees under the NN, Inc. 2022 Omnibus Incentive Plan (“2022 Omnibus Plan”). The shares of restricted stock vest pro-rata generally over three years for employees and over one year for non-executive directors. During the six months ended June 30, 2023, we granted 1,500,000 shares of restricted stock to our new CEO as an inducement award, which vests pro-rata over five years. Total grant date fair value of restricted stock that vested in the six months ended June 30, 2023, was $3.5 million. Performance Share Units Performance Share Units (“PSUs”) are a form of long-term incentive compensation awarded to executive officers and certain other key employees designed to directly align the interests of employees to the interests of our stockholders, and to create long-term stockholder value. The following table presents the status of unvested PSUs as of June 30, 2023 and activity during the six months then ended.
|  |  |  |  |  |  |  |  | Nonvested PSU Awards |  | Weighted Average Grant-Date Fair Value
Nonvested at January 1, 2023 |  |  |  |  |  |  |  |  | 1,031 |  |  | $ | 3.80 |
Granted |  |  |  |  |  |  |  |  | 3,061 |  |  | 0.97 |
Vested |  |  |  |  |  |  |  |  | (67) |  |  | 4.63 |
Forfeited |  |  |  |  |  |  |  |  | (634) |  |  | 2.47 |
Nonvested at June 30, 2023 |  |  |  |  |  |  |  |  | 3,391 |  |  | $ | 1.48 |
During the six months ended June 30, 2023, we granted 561,000 PSUs to certain executive officers. These units vest, if at all, upon our achieving a specified relative total shareholder return, which will be measured against the total shareholder return of a specified index during the three-year performance period that ends December 31, 2025. During the six months ended June 30, 2023, we granted 2,500,000 PSUs to our new CEO as an inducement award. These units cliff-vest after five years and are contingent on the Company’s stock price meeting specified thresholds. We estimated the grant date fair value of the PSU awards using the Monte Carlo simulation model, as the total shareholder return metric and changes in stock price are considered market conditions under ASC Topic 718, Compensation – stock compensation. During the six months ended June 30, 2023, 67,000 PSUs were subject to accelerated vesting upon a participant’s termination that was a qualifying event under the terms of the PSU award agreements. Total grant date fair value of PSUs that vested in the six months ended June 30, 2023, was $0.3 million.

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