Stock-Based Compensation Plans and Employee Benefit Plans

12 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION PLANS AND EMPLOYEE BENEFIT PLANS

Note 10 - Stock-Based Compensation Plans and Employee Benefit Plans

Carbon Stock Incentive 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

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. We recognize compensation expense for these restricted stock grants based on the grant date fair value. The following table shows a summary of our unvested restricted stock under the Carbon Plans as of December 31, 2019 and 2018 as well as activity during the years then ended:

				Weighted Average
	Number of Shares			Grant Date Fair Value
Restricted stock awards, unvested, January 1, 2018		269,997		$	7.54
Granted		106,000			9.80
Vested		(59,550	)		6.82
Forfeited		(2,240	)		7.41
Restricted stock awards, unvested, December 31, 2018		314,207		$	8.40
Granted		99,000			10.00
Vested		(105,628	)		6.75
Forfeited		(6,682	)		9.74
Restricted stock awards, unvested, December 31, 2019		300,897		$	9.41

Compensation costs recognized for these restricted stock grants were approximately $811,000 and $725,000 for the years ended December 31, 2019 and 2018, respectively. As of December 31, 2019, there was approximately $1.5 million of unrecognized compensation costs related to these restricted stock grants which we expect to recognize over the next 6.3 years.

Restricted Performance Units

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 over a defined period of time as well as, in some cases, continued service requirements. The following table shows a summary of our unvested performance units as of December 31, 2019 and 2018 as well as activity during the years then ended:

	Number
	of Shares
Restricted performance units, unvested, January 1, 2018		258,811
Granted		136,159
Vested		(108,484	)
Forfeited		(6,610	)
Restricted performance units, unvested, December 31, 2018		279,876
Granted		101,864
Vested		(95,451	)
Forfeited		(11,084	)
Restricted performance units, unvested, December 31, 2019		275,205

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 December 31, 2019, we estimated that none of the performance units granted in 2019 and 2018 would vest, and, accordingly, no compensation cost has been recorded for these performance units. At December 31, 2019, we estimated that it was probable that the performance units granted in 2015, 2016 and 2017 would vest and therefore compensation costs of approximately $637,000 and $408,000 related to these performance units were recognized for the years ended December 31, 2019 and 2018, respectively. As of December 31, 2019, compensation costs related to the performance units granted in 2015, 2016 and 2017 have been fully recognized. As of December 31, 2019, if a change in control and other performance provisions pursuant to the terms and conditions of these award agreements were met in full, the estimated unrecognized compensation cost related to unvested performance units would be approximately $3.2 million.

401(k) Plan

We have a 401(k) plan available to eligible employees. The plan provides for 6.0% matching which vests immediately. For the years ended December 31, 2019 and 2018, we contributed approximately $527,000 and $441,000, respectively, for 401(k) contributions and related administrative expenses.