Stock-Based Compensation

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

Restricted Stock Units

Lonestar grants awards of restricted stock units ("RSUs") to employees and directors as part of its long-term compensation program. For the nine months ended September 30, 2020 and 2019, the Company recognized $(1.2) million and $2.0 million, respectively, of stock-based compensation (benefit) expense under the liability method for RSUs. The liability for RSUs on the accompanying consolidated balance sheet as of September 30, 2020 was $0.1 million.

As of September 30, 2020, there was $0.1 million of unrecognized compensation expense related to non-vested RSU grants. This unrecognized compensation cost is expected to be recognized over a weighted-average period of 1.3 years. There were no RSU grants that vested during the three months ended September 30, 2020.

A summary of the status of the Company's non-vested RSU grants issued, and the changes during the nine months ended September 30, 2020 is presented below:

	Shares	Weighted Average Fair Value per Share
Non-vested RSUs at December 31, 2019	1,849,676	$	4.04
Granted	—	—
Vested	(857,800)	0.65
Forfeited	(102,623)	—
Non-vested RSUs at September 30, 2020	889,253	$	3.41

Stock Appreciation Rights

In the past, Lonestar has granted awards of stock appreciation rights (“SARs”) to employees and directors as part of its long-term compensation program. For the nine months ended September 30, 2020 and 2019, the Company recognized $(0.5) million and $(0.1) million, respectively, of stock-based compensation (benefit) expense for SARs. The liability for SARs on the accompanying unaudited consolidated balance sheet as of September 30, 2020 was not material.

As of September 30, 2020, the total compensation cost to be recognized in future periods related to non-vested SAR grants was not material. The cost is expected to be recognized over a weighted-average period of 0.5 year.

The following is a summary of the Company's SAR activity:

	Shares	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (in years)
Outstanding at December 31, 2019	1,010,000	$	6.30	2.5
SARs vested and exercisable at December 31, 2019	606,250	6.65		2.4
Granted	—	—		—
Exercised	—	—		—
Expired/forfeited	—	—		—
Outstanding at September 30, 2020	1,010,000	$	6.30	1.8
SARs vested and exercisable at September 30, 2020	805,000	$	6.79	1.6

Upon emergence from the Chapter 11 Cases, Company's stock-based compensation plan will be terminated and any unvested awards will be cancelled for no consideration.