XML 36 R19.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Stock-Based Compensation | 12 Months Ended
--- | ---
Dec. 31, 2023
Stock-Based Compensation [Abstract] |
Stock-Based Compensation | 12. STOCK-BASED COMPENSATION At the 2005 annual meeting of stockholders, stockholders of the Company approved an equity incentive plan (as amended, the “2005 Plan”). The 2005 Plan expired in June 2015. There are stock options issued under the 2005 Plan that remain outstanding. The 2005 Plan provided for the grant of awards to eligible individuals in the form of stock, restricted stock, stock options, performance units or other stock-based awards, all as defined in the 2005 Plan. The 2005 Plan provided for the issuance of up to 2,000,000 shares of common stock to eligible individuals, including directors, through the various forms of permitted awards. The Company was not permitted to issue stock options at an exercise price lower than fair market value at the date of grant. All stock options were required to have an exercise period not to exceed ten years. The Company had granted awards of incentive stock options and non-qualified stock options under the 2005 Plan, all of which had exercise prices that were not less than the fair market value at the date of grant. Options granted had six month, one year, three year or four year vesting periods. All outstanding options were issued at market value as of the date of the grant. Stockholders of the Company approved the 2016 Equity Incentive Plan (the “2016 Plan”) at the 2016 annual meeting of stockholders. The 2016 Plan will expire in June 2026. The 2016 Plan provides for the grant of awards to eligible individuals in the form of stock, restricted stock, stock options, performance units or other stock-based awards, all as defined in the 2016 Plan. The 2016 Plan provides for the issuance of up to 3,500,000 shares of common stock to eligible individuals, including directors, through the various forms of permitted awards. The Company is not permitted to issue stock options at an exercise price lower than fair market value at the date of grant. All stock options are required to have an exercise period not to exceed ten years. As of December 31, 2023, the Company has granted 3,048,507 performance stock units (“PSUs”), restricted stock units (“RSUs”) and stock options under the 2016 Plan. Any committee as delegated by the board of directors has the power and discretion to, among other things, prescribe the terms and conditions for the exercise of, or modification of, any outstanding awards in the event of merger, acquisition or any other form of acquisition other than a reorganization of the Company under the United States Bankruptcy Code or liquidation of the Company. The 2016 Plan also allows limited transferability of any stock options to legal entities that are 100% owned or controlled by the optionee or to the optionee’s family trust. PSUs The PSUs vest subject to market and performance conditions. The conditions are weighted 25% based on market conditions and 75% based on performance conditions. Market conditions are based on the Company’s total shareholder return (“TSR”) relative to a select group of peer companies at the end of a three year performance period. Performance conditions are based on the Company’s actual Adjusted EBITDAR over the three year performance period compared to forecasted Adjusted EBITDAR over the same period. Depending on the TSR and Adjusted EBITDAR at the end of the performance period, anywhere from 0% to 200% of the target grant may vest. Expense is recognized on a straight-line basis over the performance period beginning on the date of grant. Probability is assessed quarterly on the performance conditions and compensation expense is adjusted accordingly. Actual forfeitures are recognized as they occur. Activity in the Company’s stock-based compensation plan for the PSUs was as follows:
|  | Target PSUs |  |  | Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2021 |  | 687,219 |  | $ | 6.47
Granted |  | 268,947 |  |  | 6.44
Vested |  | — |  |  | —
Forfeited |  | (141,002) |  |  | 11.97
Nonvested at December 31, 2021 |  | 815,164 |  | $ | 5.51
Granted |  | 420,989 |  |  | 10.22
Vested |  | (227,510) |  |  | 9.17
Forfeited |  | (21,481) |  |  | 6.14
Nonvested at December 31, 2022 |  | 987,162 |  | $ | 6.66
Granted |  | 473,157 |  |  | 9.04
Vested |  | (302,988) |  |  | 3.28
Forfeited |  | (100,995) |  |  | 5.14
Nonvested at December 31, 2023 |  | 1,056,336 |  | $ | 8.84
At December 31, 2023, there was a total of $3.7 million of total unrecognized compensation expense related to the PSUs. The cost is expected to be recognized over a weighted-average period of 1.7 years. The PSUs granted during 2021 will vest in March 2024. ‎ The fair value of the PSUs granted is estimated on the date of grant using the Monte Carlo model with the following assumptions:
Assumptions for PSU Awards |  |  |
| 2023 | 2022 | 2021
Risk-free interest rate | 4.09% | 2.47% | 0.19%
Expected life | 2.9 years | 2.8 years | 2.9 years
Expected volatility | 91.8% | 91.0% | 82.2%
Expected dividends | $0 | $0 | $0
Forfeiture rate | 0% | 0% | 0%
Stock Options Activity related to options in the Company’s stock-based compensation plans for employee stock options was as follows:
|  | Option Shares |  |  | Weighted-Average Exercise Price |  | Weighted-Average Remaining Contractual Term (1) |  | Options Exercisable |  |  | Weighted-Average Exercise Price
Outstanding at January 1, 2023 |  | 1,075,000 |  | $ | 5.05 |  | 1.99 |  | 1,075,000 |  | $ | 5.05
Granted (2) |  | 1,020,000 |  |  | 5.61 |  |  |  |  |  |  |
Exercised |  | (25,000) |  |  | 5.05 |  |  |  |  |  |  |
Cancelled or forfeited (2) |  | (1,020,000) |  |  | 5.05 |  |  |  |  |  |  |
Expired |  | — |  |  | — |  |  |  |  |  |  |
Outstanding at December 31, 2023 |  | 1,050,000 |  | $ | 5.59 |  | 1.81 |  | 285,000 |  | $ | 5.55
(1)In years (2)Employees with options expiring in December 2024 were given the option to cancel their existing $5.05 options and exchange them for $5.61 options expiring in September 2033. Six employees exchanged their options. The exchange increased compensation expense related to employee stock options by $0.6 million for the year ended December 31, 2023. The following table summarizes information about employee stock options outstanding and exercisable at December 31, 2023:
Dollar amounts in thousands |  | Options Outstanding |  | Options Exercisable |  |  | Intrinsic Value of Options Outstanding |  |  | Intrinsic Value of Options Exercisable |  | Weighted-Average Life of Options Outstanding (1) |  | Weighted-Average Life of Options Exercisable ‎(1)
Exercise Price: |  |  |  |  |  |  |  |  |  |  |  |  |  |
$5.05 |  | 30,000 |  | 30,000 |  | $ | — |  | $ | — |  | 1.0 |  | 1.0
$5.61 |  | 1,020,000 |  | 255,000 |  |  | — |  |  | — |  | 9.7 |  | 9.7
|  | 1,050,000 |  | 285,000 |  | $ | — |  | $ | — |  | 9.5 |  | 8.8
(1) In years The aggregate intrinsic value represents the difference between the Company’s closing stock price of $4.88 per share as of December 31, 2023 and the exercise price multiplied by the number of options outstanding or exercisable as of that date. At December 31, 2023, there was a total of $1.2 million of unrecognized compensation expense related to employee stock options. The cost is expected to be recognized over a weighted-average period of 2.7 years. Assumptions for Employee Stock Options
| 2023
Risk-free interest rate | 4.27%
Expected life | 6.8 years
Expected volatility | 58.1%
Expected dividend | 0%
Forfeiture rate | 0
‎ Director Equity The Company’s outside directors were issued 4,071 RSUs with a grant date fair value of $7.37 per share during 2023. The RSUs will vest in March 2024. There were no options issued to directors of the Company during 2023. As of December 31, 2023, there were 96,700 options outstanding to independent directors of the Company with a weighted-average exercise price of $7.16 per share. At December 31, 2023, there was less than $0.1 million in unrecognized compensation expense related to directors’ RSUs and options. Additional Stock Information The following table includes additional information related to exercises of stock options:
|  | For the year ended December 31,
Amounts in thousands |  | 2023 |  | 2022 |  | 2021
Intrinsic value of share-based awards exercised |  | $ | 15 |  | $ | 183 |  | $ | 451
Stock-based compensation expense was recognized in general and administrative expenses on the Company’s consolidated statements of (loss) earnings as follows:
|  | For the year ended December 31,
Amounts in thousands |  | 2023 |  | 2022 |  | 2021
Compensation expense: |  |  |  |  |  |  |  |  |
2016 Plan |  | $ | 3,610 |  | $ | 3,335 |  | $ | 2,652

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//718/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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