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Stock-Based Compensation Plans
6 Months Ended
Jun. 30, 2019
Share-based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION PLANS

NOTE 10 – STOCK-BASED COMPENSATION PLANS

 

We have three stock plans, the Carbon 2011 Stock Incentive Plan, the Carbon 2015 Stock Incentive Plan and the Carbon 2019 Long Term Incentive Plan (collectively the "Carbon Plans"). The Carbon 2019 Long Term Incentive Plan was approved by the Company's stockholders in May 2019. The Carbon Plans provide for the issuance of approximately 1.6 million shares of common stock to our officers, directors, employees or consultants eligible to receive the awards under the Carbon Plans.

 

The Carbon Plans provide for the granting of incentive stock options, non-qualified stock options, restricted stock awards, performance awards and phantom stock awards, or a combination of the foregoing, to employees, officers, directors or consultants, provided that only employees may be granted incentive stock options and directors may only be granted restricted stock awards and phantom stock awards.

 

Restricted Stock

 

As of June 30, 2019, approximately 748,000 shares of restricted stock have been granted under the terms of the Carbon Plans. Restricted stock awards for employees vest ratably over a three-year service period or cliff vest at the end of a three-year service period. For non-employee directors, the awards vest upon the earlier of a change in control of us or the date their membership on the Board of Directors is terminated other than for cause. During the six months ended June 30, 2019, approximately 65,000 restricted stock units vested.

  

Compensation costs recognized for these restricted stock grants were approximately $224,000 and $403,000 for the three and six months ended June 30, 2019, respectively, and approximately $190,000 and $348,000 for the three and six months ended June 30, 2018, respectively. As of June 30, 2019, there was approximately $1.9 million unrecognized compensation costs related to these restricted stock grants which we expect to be recognized over the next 6.8 years.

 

Restricted Performance Units

 

As of June 30, 2019, approximately 699,000 shares of performance units have been granted under the terms of the Carbon Plans. Performance units represent a contractual right to receive one share of our common stock subject to the terms and conditions of the agreements, including the achievement of certain performance measures relative to a defined peer group or the growth of certain performance measures over a defined period of time as well as, in some cases, continued service requirements. During the six months ended June 30, 2019, approximately 95,000 performance units vested.

 

We account for the performance units granted during 2017 through 2019 at their fair value determined at the date of grant, which were $7.20, $9.80 and $10.00 per share, respectively. The final measurement of compensation cost will be based on the number of performance units that ultimately vest. At June 30, 2019, we estimated that none of the performance units granted in 2017 through 2019 would vest, and, accordingly, no compensation cost has been recorded for these performance units. We estimated that it was probable that the performance units granted in 2015 and 2016 would vest and therefore compensation costs of approximately $43,000 and $135,000 related to these performance units were recognized for the six months ended June 30, 2019 and 2018, respectively. As of June 30, 2019, compensation costs related to the performance units granted in 2015 and 2016 have been fully recognized. As of June 30, 2019, if change in control and other performance provisions pursuant to the terms and conditions of these award agreements are met in full, the estimated unrecognized compensation cost related to outstanding performance units would be approximately $3.8 million.