Ring Energy, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN (Tables)

EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARD PLAN (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block]

Following is a table reflecting the issuances during 2015, 2016 and 2017 and their related exercise prices:

Grant date	# of options		Exercise price
April 1, 2015		3,750	$	10.89
December 9, 2015		291,000		8.25

January 13, 2016 ⁽¹⁾		241,000	$	5.25
May 3, 2016		15,000		6.42
December 13, 2016		582,500		11.75

April 20, 2017		7,500	$	11.70

		1,140,750

(1) On December 9, 2015, Ring issued option awards to its named executive officers and directors. On January 13, 2016, upon the recommendation of the Compensation Committee, Ring rescinded the option awards granted to its employees and directors (other than Messrs. McCabe and Rochford, who are the members of the Compensation Committee) as the result of a significant decline in the stock price and re-issued the option awards as of that date to meet the goals and objectives of the Company’s equity based compensation program. The amounts shown as Option Awards include the additional fair value of the new options over the original grant.

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

A summary of the status of the stock options as of December 31, 2017, 2016 and 2015 and changes during the years ended December 31, 2017, 2016 and 2015 is as follows:

	2017				2016				2015
			Weighted-				Weighted-				Weighted-
			Average				Average				Average
	Options		Exercise Price		Options		Exercise Price		Options		Exercise Price
Outstanding at beginning of the year		3,362,350	$	5.90		2,881,750	$	5.07		2,684,500	$	4.67
Issued		7,500		11.70		838,500		9.79		294,750		8.28
Forfeited or rescinded		(11,450)		10.12		(331,400)		8.62		(32,500)		4.47
Exercised		(165,400)		2.63		(26,500)		4.41		(65,000)		3.46

Outstanding at end of year		3,193,000	$	6.07		3,362,350	$	5.90		2,881,750	$	5.07

Exercisable at end of year		2,091,900	$	4.85		1,722,850	$	4.01		1,214,000	$	3.85

Weighted average fair value of options granted during the year			$	9.14			$	9.72			$	6.55

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

The following are the Black-Scholes weighted-average assumptions used for options granted during the periods ended December 31, 2017, 2016 and 2015:

	Risk free interest rate			Expected life (years)		Dividend yield		Volatility

April 1, 2015		1.32	%		6.5		-		103	%
December 9, 2015		1.64	%		6.5		-		100	%

January 13, 2016		1.51	%		6.5		-		100	%
May 3, 2016		1.25	%		6.5		-		99	%
December 13, 2016		1.92	%		6.5		-		96	%

April 20, 2017		1.78	%		6.5		-		94	%

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

The following table summarizes information related to the Company’s stock options outstanding at December 31, 2017:

		Options Outstanding
Exercise price		Number Outstanding		Weighted- Average Remaining Contractual Life (in years)		Number Exercisable
	2.00		555,000		4.17		555,000
	4.50		1,340,000		5.24		1,080,000
	5.50		5,000		5.45		-
	7.50		29,000		5.73		23,000
	10.00		90,000		6.21		72,000
	14.54		20,000		6.99		12,000
	8.00		282,500		7.17		168,700
	8.25		50,000		8.19		20,000
	5.25		223,000		8.28		45,000
	6.42		15,000		8.59		3,000
	11.75		576,000		9.20		115,200
	11.70		7,500		9.30		-

			3,193,000		6.27		2,093,900

Nonvested Restricted Stock Shares Activity [Table Text Block]

Following is a table reflecting the restricted stock grants during 2017. No restricted stock was granted during 2015 or 2016.

Grant date		# of shares of restricted stock
December 19, 2017			330,900

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]

A summary of the status of restricted stock grants as of December 31, 2017 and changes during the years ended December 31, 2017 is as follows:

	2017
	Restricted stock		Weighted- Average Grant Date Fair Value
Outstanding at beginning of the year		-	$	-
Granted		330,900		13.44
Forfeited or rescinded		-		-
Vested		-		-

Outstanding at end of year		330,900	$	13.44