Quarterly report pursuant to Section 13 or 15(d)

EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARDS

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EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARDS
 3 Months Ended
Mar. 31, 2023
EMPLOYEE STOCK OPTIONS, RESTRICTED STOCK AWARD PLAN AND 401(k)  
EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARDS
NOTE 10 — EMPLOYEE STOCK OPTIONS AND RESTRICTED STOCK AWARDS
Compensation expense charged against income for share-based awards during the three months ended March 31, 2023 and 2022 was $1,943,696 and $1,521,910, respectively. These amounts are included in General and administrative expense in the Condensed Statements of Operations.
In 2011, the Board approved and adopted a long-term incentive plan (the “2011 Plan”), which was subsequently approved and amended by the shareholders. There were 341,755 shares eligible for grant, either as stock options or as restricted stock, as of March 31, 2023.
In 2021, the Board approved and adopted the Ring Energy, Inc. 2021 Omnibus Incentive Plan (the “2021 Plan”), which was subsequently approved and amended by the shareholders at the 2021 Annual Meeting. There were 2,169,932 shares eligible for grant, either as stock options or as restricted stock, as of March 31, 2023.
Stock Options
A summary of the status of the stock options as of March 31, 2023 and 2022 and changes during the three months then ended are as follows:
Options Weighted-
Average
Exercise Price		 Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value
Outstanding, December 31, 2021 365,500 $ 3.61 
Granted — — 
Forfeited or rescinded — — 
Exercised — — 
Outstanding, March 31, 2022 365,500 $ 3.61  2.21 years $ 536,900 
Exercisable, March 31, 2022 365,500 $ 3.61  2.21 years
Outstanding, December 31, 2022 265,500 $ 4.21 
Granted — — 
Forfeited or rescinded — — 
Exercised — — 
Outstanding, March 31, 2023 265,500 $ 4.21  1.39 years $ — 
Exercisable, March 31, 2023 265,500 $ 4.21  1.39 years
The intrinsic values were calculated using the closing price on March 31, 2023 of $1.90 and the closing price on March 31, 2022 of $3.82. As of March 31, 2023, the Company had $0 of unrecognized compensation cost related to stock options.
Restricted Stock Units
A summary of the restricted stock activity as of March 31, 2023 and 2022, respectively, and changes during the three months then ended are as follows:
Restricted stock Weighted-
Average Grant
Date Fair Value
Outstanding, December 31, 2021 2,572,596  $ 1.75 
Granted 1,247,061  2.79 
Forfeited or rescinded —  — 
Vested —  — 
Outstanding, March 31, 2022 3,819,657  $ 2.09 
Outstanding, December 31, 2022 2,623,790  $ 2.29 
Granted 2,270,842  2.22 
Forfeited or rescinded (11,712) 2.22 
Vested (659,479) 2.80 
Outstanding, March 31, 2023 4,223,441  $ 2.17 
As of March 31, 2023, the Company had $6,408,759 of unrecognized compensation cost related to restricted stock grants that will be recognized over a weighted average period of 2.25 years. Grant activity for the three months ended March 31, 2023 was primarily restricted shares for the annual long-term incentive plan awards for employees.
Performance Stock Units
A summary of the status of the performance stock grants as of March 31, 2023 and 2022, respectively, along with changes during the three months then ended are as follows:
Performance Stock Units Weighted-
Average Grant
Date Fair Value
Outstanding, December 31, 2021 860,216  $ 3.87 
Granted 860,216  3.65 
Forfeited or rescinded —  — 
Vested —  — 
Outstanding, March 31, 2022 1,720,432  $ 3.76 
Outstanding, December 31, 2022 1,720,432  $ 3.76 
Granted 1,162,162  2.71 
Forfeited or rescinded —  — 
Vested —  — 
Outstanding, March 31, 2023 2,882,594  $ 3.34 
As of March 31, 2023, the Company had $7,402,107 of unrecognized compensation cost related to the PSU Awards that will be recognized over a weighted average period of 1.95 years.