XML 23 R13.htm IDEA: XBRL DOCUMENT v3.8.0.1
Employee Stock Compensation Plans
3 Months Ended
Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Employee Stock Compensation Plans

8.       Employee Stock Compensation Plans

 

The 2013 Plan

 

On June 18, 2013, Solitario’s shareholders approved the 2013 Solitario Exploration & Royalty Corp. Omnibus Stock and Incentive Plan (the “2013 Plan”). Under the terms of the 2013 Plan, a total of 1,750,000 shares of Solitario common stock are reserved for awards to Directors, officers, employees and consultants. On June 29, 2017, Solitario shareholders approved an amendment to the 2013 Plan, which increased the number of shares of common stock available for issuance under the 2013 Plan from 1,750,000 to 5,750,000. Awards granted under the 2013 Plan may take the form of stock options, stock appreciation rights, restricted stock, and restricted stock units. The terms and conditions of the awards are pursuant to the 2013 Plan and are granted by the Board of Directors or a committee appointed by the Board of Directors.

 

As of March 31, 2018, and December 31, 2017 there were 2,082,428 and 1,928,428 options outstanding for Solitario common shares granted during 2017 with exercise prices between $0.54 per share and $1.74 per share. Of these, 1,728,428 shares were Replacement Options granted in connection with the Acquisition. There were no stock grants or awards or exercises of options or awards under the 2013 Plan during the three months ended March 31, 2018 and 2017. During the three months ended March 31, 2018, Solitario recorded stock option compensation expense of $10,000. Solitario had no stock options outstanding and recorded no stock option compensation expense during the three months ended March 31, 2017.

 

On September 1, 2017, the Board of Directors granted, subject to shareholder approval at the next meeting of shareholders, an additional 2,300,000 stock options under the 2013 Plan to officers and members of the board of directors (the “Conditional Options”). The Conditional Options have a five-year life, and exercise price of $0.77 per share, and a grant date fair value of $970,000, based upon a Black-Scholes model with a volatility of 64%, and a risk-free interest rate of 1.70%. If approved, the Conditional Options will vest on the schedule of 25% on date of grant and 25% on each of the next three anniversary dates of the date of grant. The Conditional Options will not become exercisable in whole or in part unless Solitario shareholders approve the grants, and the option grants will be void if Solitario shareholders do not approve the grants. Solitario will not record any stock option expense related to these options until the shareholder approval is received.