Ring Energy, Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK UNITS

EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK UNITS

3 Months Ended

Mar. 31, 2025

EMPLOYEE STOCK OPTIONS, RESTRICTED STOCK AWARD PLAN AND 401(k) [Abstract]

EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK UNITS

NOTE 11 — EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK UNITS

Share-based compensation expense charged against income for share-based awards during the three months ended March 31, 2025 and 2024 was as follows. These amounts are included in General and administrative expense in the Condensed Statements of Operations.


	Three Months Ended
		March 31, 2025		March 31, 2024
Share-based compensation expense from:
Employee stock options		$	—	$	—
Restricted stock unit grants		1,247,329		1,131,697
Performance stock unit awards		443,629		592,135
Total share-based compensation		$	1,690,958	$	1,723,832

In 2011, the Board of Directors (the "Board") of the Company approved and adopted a long-term incentive plan (the “2011 Plan”), which was subsequently approved and amended by the stockholders. There were no shares eligible for grant, either as stock options or as restricted stock, as of March 31, 2025.

In 2021, the Board and Company stockholders approved and adopted the Ring Energy, Inc. 2021 Omnibus Incentive Plan (the “2021 Plan”). The 2021 Plan provides that the Company may grant options, stock appreciation rights, restricted shares, restricted stock units, performance-based awards, other share-based awards, other cash-based awards, or any combination of the foregoing. At the 2023 Annual Meeting of Stockholders, the stockholders approved an amendment to the 2021 Plan to increase the number of shares available under the 2021 Plan by 6.0 million. There were 1,625,756 shares available for grant as of March 31, 2025 under the 2021 Plan.

Employee Stock Options

A summary of the status of the stock options as of March 31, 2025 and 2024 and changes during the respective three month periods then ended are as follows:


	Options	Weighted- Average Exercise Price		Weighted-Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding, December 31, 2023	70,500	$	10.33
Granted	—	—
Forfeited	—	—
Expired	(5,000)	5.50
Exercised	—	—
Outstanding, March 31, 2024	65,500	$	10.70	2.31 years	$	—
Exercisable, March 31, 2024	65,500	$	10.70	2.31 years













Outstanding, December 31, 2024	65,500	$	10.70
Granted	—	—
Forfeited	—	—
Expired	—	—
Exercised	—	—
Outstanding, March 31, 2025	65,500	$	10.70	1.31 years	$	—
Exercisable, March 31, 2025	65,500	$	10.70	1.31 years

The intrinsic values were calculated using the closing price on March 31, 2025 of $1.15 and the closing price on March 31, 2024 of $1.96. As of March 31, 2025, the Company had $0 of unrecognized compensation cost related to stock options.

Restricted Stock Units

A summary of the restricted stock unit ("RSU") activity as of March 31, 2025 and 2024, respectively, and changes during the respective three month periods then ended are as follows:


	Restricted Stock Units	Weighted- Average Grant Date Fair Value
Outstanding, December 31, 2023	3,148,226	$	2.40
Granted	2,647,970	1.30
Forfeited or rescinded	(26,802)	1.30
Vested	(1,342,112)	2.35
Outstanding, March 31, 2024	4,427,282	$	1.77









Outstanding, December 31, 2024	3,817,128	$	1.70
Granted	3,691,373	1.31
Forfeited or rescinded	—	—
Vested	(1,983,465)	1.75
Outstanding, March 31, 2025	5,525,036	$	1.42

As of March 31, 2025, the Company had $5,835,740 of unrecognized compensation cost related to RSU grants that will be recognized over a weighted average period of 2.35 years. Grant activity for the three months ended March 31, 2025 was primarily RSU for the annual long-term incentive plan awards for employees.

Performance Stock Units

A summary of the status of the performance stock unit ("PSU") grants as of March 31, 2025 and 2024, respectively, along with changes during the respective three month periods then ended are as follows:


	Performance Stock Units	Weighted- Average Grant Date Fair Value
Outstanding, December 31, 2023	2,022,378	$	3.11
Granted	—	—
Forfeited or rescinded	—	—
Vested	—	—
Outstanding, March 31, 2024	2,022,378	$	3.11









Outstanding, December 31, 2024	1,891,892	$	2.47
Granted	—	—
Forfeited or rescinded	—	—
Vested	—	—
Outstanding, March 31, 2025	1,891,892	$	2.47

As of March 31, 2025, the Company had $2,644,746 of unrecognized compensation cost related to the PSU awards that will be recognized over a weighted average period of 1.38 years.