Note

– Stock Options and Restricted Stock

Stock Options

July 27, 2010,

the Company's Board of Directors adopted the

2010

Stock Incentive Plan (the

“2010

Plan”). The aggregate number of shares of common stock that could be granted under the

2010

Plan was reset at the beginning of each year based on

15%

of the number of shares of common stock then outstanding. As such, on

January 1, 2016

the number of shares of common stock available under the

2010

Plan was reset to

381,272

shares based upon

2,541,809

shares outstanding on that date. Options were typically granted with an exercise price equal to the estimated fair value of the Company's common stock at the date of grant with a vesting schedule of

one

three

years and a contractual term of

years. As discussed below, the

2010

Plan has been replaced by a new stock option plan and

additional stock option grants will be granted under the

2010

Plan. As of

March 31, 2021,

there were options to purchase

1,079

shares outstanding under the

2010

Plan.

July 18, 2016,

the Board of Directors unanimously approved the adoption of the Enservco Corporation

2016

Stock Incentive Plan (the

“2016

Plan”), which was approved by the stockholders on

September 29, 2016.

The aggregate number of shares of common stock that

may

be granted under the

2016

Plan is

533,334

shares plus authorized and unissued shares from the

2010

Plan totaling

159,448

for a total reserve of

692,782

shares. As of

March

31,

2021,

there were options to purchase

3,823

shares and we had granted restricted stock shares of

184,503

that remained outstanding under the

2016

Plan.

During t

three

months ended

March 31,

2021

and

2020,

options were granted or exercised.

The following is a summary of stock option activity for all equity plans for the

three

months ended

March 31, 2021:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)

Outstanding at December 31 , 2020		11,569		$	5.87		0.53
Forfeited or Expired		(6,667	)		5.55		-
Outstanding at March 31 , 2021		4,902		$	6.31		0.94

Vested at March 31, 2021		4,902		$	6.31		0.94
Exercisable at March 31, 2021		4,902		$	6.31		0.94

There was

aggregate intrinsic value (the difference between the estimated fair value of the Company's common stock on

March 31

, 2021,

and the exercise price, multiplied by the number of in-the-money options) of our outstanding options

During the

three

months ended March

, 2021 and 2020

, the Company recognized stock-based compensation costs for stock options of approximately

and

$2,000,

respectively, in sales, general, and administrative expenses.

The Company currently expects all outstanding options to vest. Compensation cost is revised if subsequent information indicates that the actual number of options vested due to service is likely to differ from previous estimates.

As of

March

31, 2021,

there was

remaining unrecognized compensation costs related to non-vested shares under the Company's stock option plans.

Restricted Stock

Restricted shares issued pursuant to restricted stock awards under the

2016

Stock Plan are restricted as to sale or disposition. These restrictions lapse periodically generally over a period of

three

years. Restrictions

may

also lapse for early retirement and other conditions in accordance with our established policies. Upon termination of employment, shares on which restrictions have

not

lapsed must be returned to us, resulting in restricted stock forfeitures. The fair market value on the date of the grant of the stock with a service condition is amortized and charged to income on a straight-line basis over the requisite service period for the entire award. The fair market value on the date of the grant of the stock with a performance condition shall be accrued and recognized when it becomes probable that the performance condition will be achieved. Restricted shares that contain a market condition are amortized and charged over the life of the award.

A summary of the restricted stock activity is presented below:

	Number of Shares			Weighted-Average Grant- Date Fair Value

Restricted shares at December 31, 2020		24,393		$	7.32
Granted		165,000			1.05
Vested		(3,667	)		7.05
Forfeited		(1,223	)		9.99
Restricted shares at March 31, 2021		184,503		$	1.70

During the

three

ended

March 31, 2021

and

2020,

the Company recognized

stock-based compensation costs for restricted stock of approximately $

24,000

and

$36

,000

in sales, general, and administrative expenses. Compensation cost is revised if subsequent information indicates that the actual number of restricted stock vested due to service is likely to differ from previous estimates.

The following table sets forth the weighted average outstanding of potentially dilutive instruments for the

three

months ended

March 31, 2021

and

2020:

	Three Months Ended March 31,
	2021		2020
Stock options		6,235		118,143
Restricted stock		170,338		112,531
Warrants		1,123,890		43,667
Weighted average		1,300,463		274,341

January 4, 2021,

the Company awarded Company common stock to members of its Board of Directors with an award date fair value of approximately

$311,000

based on the closing price of the Company's stock reported on the NYSE American on the date of the award. As of

December 31, 2020,

the Company accrued Board of Director fees of approximately

$221,000

for services rendered from

October 2019

through

December 2020.

During the

three

months ended

March 31, 2021,

the Company issued

118,184

shares to settle the outstanding accrual. During the

three

months ended

March 31, 2021,

the Company awarded

48,129

restricted shares for

2021

Board of Director fees and has recognized expense of approximately

$23,000

related to the award of these shares.