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Stock-Based Compensation And Stock Repurchases | 3 Months Ended
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Mar. 31, 2021
Stock-Based Compensation And Stock Repurchases [Abstract] |
Stock-Based Compensation And Stock Repurchases | Note 16 – Stock-Based Compensation and Stock Repurchases Employee and Director Stock Incentive Plan 2010 Stock Incentive Plan Our 2010 Stock Incentive Plan (as amended, the “2010 Plan”) under which our Company has granted stock options and other share-based payment awards of our Common Stock to eligible employees, directors, and consultants has expired. In total, 1,527,595 shares of Class A Common Stock were issued or reserved for issuance pursuant to the previously granted options or restricted stock units under that plan. 2020 Stock Incentive Plan On November 4, 2020, the Company enacted the 2020 Stock Incentive Plan, which was also approved by the Company’s stockholders on December 8, 2020 (the “2020 Plan”). Under the 2020 Plan, the Company may grant stock options and other share-based payment awards of our Class A Common Stock to eligible employees, directors and consultants. The aggregate total number of shares of Class A Common Stock authorized for issuance under the 2020 Plan at March 31, 2021 was 1,250,000, of which 1,096,938 remain available for future issuance, and 200,000 shares of Class B stock. In addition, if any awards that were outstanding under the 2010 Plan are subsequently forfeited or if the related shares are repurchased, a corresponding number of shares will automatically become available for issuance under the 2020 Plan, thus resulting in a potential increase in the number of shares available for issuance under the 2020 Plan. At March 31, 2021, this potential increase in the number of shares eligible for issuance under the 2020 Plan was 154,089 Class A Common Stock. Stock options are granted at exercise prices equal to the grant-date market prices and typically expire no later than five years from the grant date. In contrast to a stock option where the grantee buys our Company’s share at an exercise price determined on grant date, a restricted stock unit (“RSU”) entitles the grantee to receive one share for every RSU based on a vesting plan, typically between one and four years from grant. Beginning in 2020, a performance component has been added to certain of the RSUs granted to Management, which vests on the third anniversary of their grant date based on the achievement of certain performance metrics. At the time the options are exercised or RSUs vest and are settled, at the discretion of management, we will issue treasury shares or make a new issuance of shares to the option or RSU holder. Stock Options We have estimated the grant-date fair value of our stock options using the Black-Scholes option-valuation model, which takes into account assumptions such as the dividend yield, the risk-free interest rate, the expected stock price volatility, and the expected life of the options. We expensed the estimated grant-date fair values of options over the vesting period on a straight-line basis. Based on our historical experience, the “deemed exercise” of expiring in-the-money options and the relative market price to strike price of the options, we have not estimated any forfeitures of vested or unvested options. No stock options were issued in the three months ended March 31, 2021. For the three months ended March 31, 2021 and March 31, 2020, we recorded compensation expense of $101,000 and $120,000, respectively with respect to our prior stock option grants. At March 31, 2021, the total unrecognized estimated compensation expense related to non-vested stock options was $0.5 million, which we expect to recognize over a weighted average vesting period of 1.27 years. The intrinsic, unrealized value of all options outstanding vested and expected to vest, at March 31, 2021 was $35,000, as the closing price of our Common Stock on that date was $5.55. The following table summarizes the number of options outstanding and exercisable as of March 31, 2021 and December 31, 2020:
|  | Outstanding Stock Options - Class A Shares
|  | Number ‎of Options |  | Weighted ‎Average ‎Exercise Price |  | Weighted ‎Average ‎Remaining ‎Years of ‎Contractual ‎Life |  | Aggregate ‎Intrinsic ‎Value
|  | Class A |  | Class A |  | Class A |  | Class A
Balance - December 31, 2019 |  | 711,377 |  | $ | 14.74 |  | 2.79 |  | $ | 136,350
Granted |  | 38,803 |  |  | 4.66 |  | — |  |  | —
Exercised |  | — |  |  | — |  | — |  |  | —
Forfeited |  | (36,701) |  |  | 14.74 |  | — |  |  | —
Balance - December 31, 2020 |  | 713,479 |  | $ | 14.64 |  | 2.18 |  | $ | 13,969
Granted |  | — |  |  | — |  | — |  |  | —
Exercised |  | — |  |  | — |  | — |  |  | —
Forfeited |  | (135,335) |  |  | 11.84 |  | — |  |  | —
Balance - March 31, 2021 |  | 578,144 |  | $ | 14.77 |  | 1.92 |  | $ | 34,535
Restricted Stock Units We estimate the grant-date fair values of our RSUs using our Company’s stock price at grant-date and record such fair values as compensation expense over the vesting period on a straight-line basis. The following table summarizes the status of the RSUs granted to date as of March 31, 2021:
|  | Outstanding Restricted Stock Units
|  | RSU Grants (in units) |  |  |  | Vested, |  | Unvested, |  | Forfeited,
Grant Date |  | Directors |  | Management |  | Total ‎Grants |  | March 31, ‎2021 |  | March 31, ‎2021 |  | March 31, ‎2021
March 10, 2016 |  | 35,147 |  | 27,381 |  | 62,528 |  | 62,264 |  | — |  | 264
April 11, 2016 |  | — |  | 5,625 |  | 5,625 |  | 5,108 |  | — |  | 517
March 23, 2017 |  | 30,681 |  | 32,463 |  | 63,144 |  | 62,612 |  | — |  | 532
August 29, 2017 |  | — |  | 7,394 |  | 7,394 |  | 7,394 |  | — |  | —
January 2, 2018 |  | 29,393 |  | — |  | 29,393 |  | 29,393 |  | — |  | —
April 12, 2018 |  | — |  | 29,596 |  | 29,596 |  | 14,547 |  | 13,078 |  | 1,971
April 13, 2018 |  | — |  | 14,669 |  | 14,669 |  | 7,336 |  | 7,333 |  | —
July 6, 2018 |  | — |  | 932 |  | 932 |  | — |  | — |  | 932
November 7, 2018 |  | 23,010 |  | — |  | 23,010 |  | 23,010 |  | — |  | —
March 13, 2019 |  | — |  | 24,366 |  | 24,366 |  | 10,632 |  | 10,630 |  | 3,104
March 14, 2019 |  | — |  | 23,327 |  | 23,327 |  | 11,664 |  | 11,663 |  | —
May 7, 2019 |  | 11,565 |  | — |  | 11,565 |  | 11,565 |  | — |  | —
March 10, 2020 |  | — |  | 287,163 |  | 287,163 |  | 48,416 |  | 237,929 |  | 818
December 14, 2020 |  | — |  | 43,260 |  | 43,260 |  | — |  | 42,716 |  | 544
December 16, 2020 |  | 60,084 |  | 11,459 |  | 71,543 |  | — |  | 71,543 |  | —
Total |  | 189,880 |  | 507,635 |  | 697,515 |  | 293,941 |  | 394,892 |  | 8,682
RSU awards to Management vest 25% on the anniversary of the grant date over a period of four years. Beginning in 2020, a performance component has been added to certain of the RSUs granted to Management, which vest on the third anniversary of their grant date based on the achievement of certain performance metrics. On March 10, 2020, RSUs covering 287,163 shares were issued to members of executive Management and other employees of our Company. Between December 14, 2020 and December 16, 2020, RSUs covering 114,803 shares were issued to members of executive Management and other employees of our Company, all of which vest 100% on the anniversary of the grant date over a period of one year. Of these, w e granted non-employee directors 60,084 RSUs (as well as 38,803 options) on December 16, 2020. We estimate the grant-date fair values of our RSUs using the Company’s stock price at grant-date and record such fair values as compensation expense over the vesting period on a straight-line basis. Prior to November 7, 2018, RSU awards to non-employee directors vested 100% in January of the following year in which such RSUs were granted. At the November 7, 2018 Board meeting, it was determined that it would be more appropriate for the vesting of RSUs to align with the director’s term of office. Accordingly, the RSUs granted on November 7, 2018, vested on the first to occur of (i) 5:00 pm, Los Angeles, CA time on the last business day prior to the one year anniversary of the grant date, or (ii) the date on which the recipient’s term as a director ended and the recipient or, as the case may be, the recipient’s successor was elected to the board of directors. Accordingly, the RSUs granted to directors on November 7, 2018 vested on May 7, 2019 annual meeting of stockholders. Due to the fact that our Company held our annual meeting of stockholders in May 2019, the vesting period for the RSUs issued on November 7, 2018 was shorter than anticipated. In order to adjust for this factor, the award of RSUs to directors made immediately following the 2019 Annual Meeting of Stockholders was determined using a value of $35,000 or one half of the dollar amount of the prior year’s annual grant. The RSUs issued to non-employee directors on May 7, 2019 vested on May 6, 2020. For the three months ended March 31, 2021 and 2020, we recorded compensation expense of $363,000 and $216,000, respectively. The total unrecognized compensation expense related to the non-vested RSUs was $2.2 million as of March 31, 2021, which we expect to recognize over a weighted average vesting period of 1.56 years. Stock Repurchase Program On March 2, 2017, our Company's Board of Directors authorized Management, at its discretion, to spend up to an aggregate of $25.0 million to acquire shares of Reading’s Class A Common Stock. On March 14, 2019, the Board of Directors extended this stock buy-back program for two years, through March 2, 2021. On March 10, 2020, the Board increased the authorized amount by $25.0 million and extended it to March 2, 2022. At the present time, the amount available under the repurchase program authorization is $26.0 million. The repurchase program allows Reading to repurchase its shares in accordance with the requirements of the SEC on the open market, in block trades and in privately negotiated transactions, depending on market conditions and other factors. All purchases are subject to the availability of shares at prices that are acceptable to Reading, and accordingly, no assurances can be given as to the timing or number of shares that may ultimately be acquired pursuant to this authorization. Under the stock repurchase program, as of March 31, 2021, our Company had reacquired a total of 1,792,819 shares of Class A Common Stock for $24.0 million at an average price of $13.39 per share (excluding transaction costs). No shares of Class A Common Stock were purchased in the three months to March 31, 2021. The last share repurchase made by our Company was made on March 5, 2020, at which time 25,000 shares were purchased at an average cost per share of $7.30. This leaves $26.0 million available under the March 2, 2017 program, as extended, to March 2, 2022.

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