Stock-Based Compensation

6 Months Ended

Jun. 30, 2023

Equity [Abstract]

Stock-Based Compensation

14. Stock-Based Compensation

Equity incentive plans. In February 2011, the Company’s stockholders approved the Gevo, Inc. 2010 Stock Incentive Plan (as amended and restated to date, the “2010 Plan”), and the Employee Stock Purchase Plan (the “ESPP”).

The 2010 Plan provides for the grant of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock awards, restricted stock units and other equity awards to employees and directors of the Company. In May 2023, upon approval of the stockholders at the 2021 Annual Meeting of Stockholders, the 2010 Plan was amended and restated, which increased the number of shares of common stock reserved for issuance under the 2010 Plan to 37,980,074 shares. At June 30, 2023, 18,814,278 shares were available for future issuance under the 2010 Plan.

Stock-based compensation expense. The Company records stock-based compensation expense during the requisite service period for share-based payment awards granted to employees and non-employees.

The following table sets forth the Company’s stock-based compensation expense for the periods indicated (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Equity Classified Awards
Cost of production	$	(6)	$	198	$	12	$	391
General and administrative		3,318		3,588		7,241		7,082
Other		631		434		1,367		791
Total equity classified awards		3,943		4,220		8,620		8,264
Liability Classified Awards
General and administrative		—		(407)		—		(193)
Other		—		(126)		—		(126)
Total liability classified awards		—		(533)		—		(319)
Total stock-based compensation	$	3,943	$	3,687	$	8,620	$	7,945

Stock option award activity. Stock option activity under the Company’s stock incentive plans and changes during the six months ended June 30, 2023, were as follows:

				Weighted-
				Average
		Weighted-		Remaining
		Average		Contractual		Aggregate
	Number of	Exercise		Term		Intrinsic
	Options	Price (1)		(years)		Value
Options outstanding at December 31, 2022	5,945,321	$	4.65		9.1	$	—
Granted	55,918	$	2.12			$	—
Canceled or forfeited	(117,278)	$	4.62			$	—
Exercised	—	$	—			$	—
Options outstanding at June 30, 2023	5,883,961	$	4.63		8.7	$	—
Options vested and expected to vest at June 30, 2023	1,496,017	$	5.25		7.9	$	—

(1) The exercise price of options outstanding range from $2.12 to $11,160 as of June 30, 2023. The higher end of the range is due to the impact of several reverse stock splits during the years 2015 to 2018.

As of June 30, 2023, the total unrecognized compensation expense, net of forfeitures, relating to stock options was $9.5 million, which is expected to be expensed over the remaining weighted-average recognition period of approximately 1.7 years.

Restricted stock. Non-vested restricted stock awards and the changes during the six months ended June 30, 2023, were as follows:

		Weighted-
		Average
	Number of	Grant-Date
	Shares	Fair Value
Outstanding at December 31, 2022	5,254,457	$	3.94
Granted	593,369	$	1.28
Vested and issued	(155,180)	$	5.45
Canceled or forfeited	(125,062)	$	3.74
Non-vested at June 30, 2023	5,567,584	$	3.63

As of June 30, 2023, the total unrecognized compensation expense, net of forfeitures, relating to restricted stock awards was $12.2 million, which is expected to be expensed over the remaining weighted-average recognition period of approximately 1.6 years. As of June 30, 2023, there are no liability-classified restricted stock awards.