Note 12.—Equity and Share Based Payments

Redeemable Preferred Stock

At June 30, 2020, the Company had outstanding $68.5 million liquidation preference of Series B and Series C Preferred Stock, inclusive of cumulative undeclared dividends in arrears. 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 $16.8 million, or approximately $25.20 per outstanding share of Preferred B, increasing the liquidation value to approximately $50.20 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 six months ended June 30, 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	(269,897)		7.85
Options outstanding at the end of the period	665,073		8.12
Options exercisable at the end of the period	413,246	$	10.14

As of June 30, 2020, there was approximately $386 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 1.5 years.

The following table summarizes activity, pricing and other information for the Company’s RSU’s for the six months ended June 30, 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	(26,026)		4.32
RSU’s outstanding at end of the period	291,935	$	5.02

As of June 30, 2020, there was approximately $758 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 2.5 years.

The following table summarizes activity, pricing and other information for the Company’s DSU’s for the six months ended June 30, 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	(15,000)		5.34
DSU’s outstanding at the end of the period	54,500	$	6.61

As of June 30, 2020, there was approximately $276 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 2.4 years.

The following table summarizes activity, pricing and other information for the Company’s RSA’s for the six months ended June 30, 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	(35,069)		3.57
RSA’s outstanding at end of the period	—	$	—

As of June 30, 2020, there were no outstanding RSA’s as the shares forfeited prior to the minimum vesting requirement.