Note 12.—Equity and Share Based Payments

Redeemable Preferred Stock

At March 31, 2020, the Company had outstanding $68.1 million liquidation preference of Series B and Series C Preferred Stock. The holders of each series of Preferred Stock, which are non‑voting and redeemable at the option of the Company, retain the right to a $25.00 per share liquidation preference in the event of a liquidation of the Company and the right to receive dividends on the Preferred Stock if any such dividends are declared.

As discussed within Note 11.—Commitments and Contingencies, all rights of the Preferred B holders under the 2004 Articles were deemed reinstated. Subject to an appeal, the Company has cumulative undeclared dividends in arrears of approximately $16.4 million, or approximately $24.61 per outstanding share of Preferred B, increasing the liquidation value to approximately $49.61 per share. Additionally, every quarter the cumulative undeclared dividends in arrears will increase by $0.5859 per share, or approximately $390 thousand. The liquidation preference, inclusive of the cumulative undeclared dividends in arrears, is only payable upon voluntary or involuntary liquidation, dissolution or winding up of the Company’s affairs.

Share Based Payments

The following table summarizes activity, pricing and other information for the Company’s stock options for the three months ended March 31, 2020:


		Weighted-
		Average
	Number of	Exercise
	Shares	Price
Options outstanding at the beginning of the year	914,470	$	8.10
Options granted	30,000		5.34
Options exercised	(9,500)		4.84
Options forfeited/cancelled	(53,084)		8.69
Options outstanding at the end of the period	881,886		8.00
Options exercisable at the end of the period	456,364	$	10.75

As of March 31, 2020, there was approximately $809 thousand of total unrecognized compensation cost related to stock option compensation arrangements granted under the plan, net of estimated forfeitures. That cost is expected to be recognized over the remaining weighted average period of 1.8 years.

The following table summarizes activity, pricing and other information for the Company’s restricted stock units (RSU’s) for the three months ended March 31, 2020:


		Weighted-
		Average
	Number of	Grant Date
	Shares	Fair Value
RSU’s outstanding at beginning of the year	75,000	$	3.75
RSU’s granted	242,961		5.34
RSU’s issued	—		—
RSU’s forfeited/cancelled	—		—
RSU’s outstanding at end of the period	317,961	$	4.96

As of March 31, 2020, there was approximately $895 thousand of total unrecognized compensation cost related to the RSU compensation arrangements granted under the plan. That cost is expected to be recognized over the remaining weighted average period of 2.7 years.

The following table summarizes activity, pricing and other information for the Company’s deferred stock units (DSU’s) for the three months ended March 31, 2020:


		Weighted-
		Average
	Number of	Grant Date
	Shares	Fair Value
DSU’s outstanding at the beginning of the year	54,500	$	6.61
DSU’s granted	15,000		5.34
DSU’s issued	—		—
DSU’s forfeited/cancelled	—		—
DSU’s outstanding at the end of the period	69,500	$	6.34

As of March 31, 2020, there was approximately $387 thousand of total unrecognized compensation cost related to the DSU compensation arrangements granted under the plan. That cost is expected to be recognized over the remaining weighted average period of 2.6 years.

The following table summarizes activity, pricing and other information for the Company’s restricted stock awards (RSA’s) for the three months ended March 31, 2020:


		Weighted-
		Average
	Number of	Grant Date
	Shares	Fair Value
RSA’s outstanding at beginning of the year	35,069	$	3.57
RSA’s granted	—		—
RSA’s issued	—		—
RSA’s forfeited/cancelled	—		—
RSA’s outstanding at end of the period	35,069	$	3.57

As of March 31, 2020, there was no unrecognized compensation cost related to the RSA compensation arrangements granted under the plan as the amounts were accrued as part of an executive stay bonus in accordance with the executive’s employment agreement.