Quarterly report [Sections 13 or 15(d)]

EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK UNITS

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EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK UNITS
 9 Months Ended
Sep. 30, 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 and nine months ended September 30, 2025 and 2024 was as follows. These amounts are included in General and administrative expense in the Condensed Statements of Operations.
Three Months Ended
Nine Months Ended
September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024
Share-based compensation expense from:
Employee stock options
 $ —  $ —  $ —  $ — 
Restricted stock unit grants
 1,097,438  644,567  3,367,412  2,772,645 
Performance stock unit awards (1)
521,162  (612,480) 1,293,985  1,061,052 
Total share-based compensation $ 1,618,600  $ 32,087  $ 4,661,397  $ 3,833,697 
(1) The negative share-based compensation expense for performance stock unit awards during the three months ended September 30, 2024 is reflective of the forfeitures that were incurred and recognized during that period.
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 September 30, 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. At the 2025 Annual Meeting of Stockholders, the stockholders approved a second amendment to the 2021 Plan to increase the number of shares available under the 2021 Plan by 11.5 million. There were 11,586,305 shares available for grant as of September 30, 2025 under the 2021 Plan.
Employee Stock Options
A summary of the status of the stock options as of September 30, 2025 and 2024 and changes during the respective nine 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
Granted — — 
Forfeited — — 
Expired — — 
Exercised — — 
Outstanding, June 30, 2024 65,500 $ 10.70  2.06 years $ — 
Exercisable, June 30, 2024 65,500 $ 10.70  2.06 years
Granted — — 
Forfeited — — 
Expired — — 
Exercised — — 
Outstanding, September 30, 2024 65,500 $ 10.70  1.81 years $ — 
Exercisable, September 30, 2024 65,500 $ 10.70  1.81 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
Granted — — 
Forfeited — — 
Expired — —
Exercised — — 
Outstanding, June 30, 2025 65,500 $ 10.70  1.06 years $ — 
Exercisable, June 30, 2025 65,500 $ 10.70  1.06 years
Granted — $ — 
Forfeited — $ — 
Expired (10,000) $ 14.54 
Exercised — $ — 
Outstanding, September 30, 2025 55,500 $ 10.01  0.95 years $ — 
Exercisable, September 30, 2025 55,500 $ 10.01  0.95 years
The intrinsic values were calculated using the closing price on September 30, 2025 of $1.09 and the closing price on September 30, 2024 of $1.60. As of September 30, 2025, the Company had $0 of unrecognized compensation cost related to stock options.
Restricted Stock Units
A summary of the restricted stock units ("RSU") outstanding as of September 30, 2025 and 2024, respectively, and changes during the respective nine 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 
Granted 60,000  2.04 
Forfeited or rescinded (66,101) 1.43 
Vested (303,797) 2.74 
Outstanding, June 30, 2024 4,117,384 $ 1.70 
Granted 76,600  1.97 
Forfeited or rescinded (399,552) 1.67 
Vested (57,338) 2.38 
Outstanding, September 30, 2024 3,737,094  $ 1.70 
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 
Granted 76,177  0.92 
Forfeited or rescinded (86,238) 1.31 
Vested (41,834) 2.12 
Outstanding, June 30, 2025 5,473,141 $ 1.41 
Granted —  — 
Forfeited or rescinded (65,244) 1.36 
Vested (349,726) 1.57 
Outstanding, September 30, 2025 5,058,171  $ 1.40 
As of September 30, 2025, the Company had $3,477,694 of unrecognized compensation cost related to RSU grants that will be recognized over a weighted average period of 1.93 years. Grant activity for the nine months ended September 30, 2025 was primarily RSU grants for the annual long-term incentive plan awards for employees.
Performance Stock Units
A summary of the performance stock units ("PSU") outstanding as of September 30, 2025 and 2024, respectively, along with changes during the respective nine 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 
Granted 1,378,378  $ 2.27 
Forfeited or rescinded —  $ — 
Vested —  $ — 
Outstanding, June 30, 2024 3,400,756  $ 2.77 
Granted —  — 
Forfeited or rescinded (863,702) 2.75 
Vested —  — 
Outstanding, September 30, 2024 2,537,054  $ 2.77 
Outstanding, December 31, 2024 1,891,892  $ 2.47 
Granted —  — 
Forfeited or rescinded —  — 
Vested —  — 
Outstanding, March 31, 2025 1,891,892  $ 2.47 
Granted 1,624,756  $ 0.93 
Forfeited or rescinded —  $ — 
Vested —  $ — 
Outstanding, June 30, 2025 3,516,648  $ 1.76 
Granted —  — 
Forfeited or rescinded —  — 
Vested (549,900) 1.83 
Outstanding, September 30, 2025 2,966,748  $ 1.75 
As of September 30, 2025, the Company had $2,286,720 of unrecognized compensation cost related to the PSU awards that will be recognized over a weighted average period of 1.50 years.