Note 6 - Stockholders' Equity and Dilutive Equity Instruments

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

(6) STOCKHOLDERS' EQUITY AND DILUTIVE EQUITY INSTRUMENTS

Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss) (OCI) by component, net of tax, for the three and six months ended June 30, 2022 and 2021 are as follows:

(In Thousands)	Three Months Ended
	June 30, 2022			June 30, 2021
Balance at March 31, 2022 and 2021	$	2,471		$	(875	)
Unrealized loss on note receivable		(846	)		—
Pension benefits recognized in OCI		138			(207	)
Balance at June 30, 2022 and 2021	$	1,763		$	(1,082	)

(In Thousands)	Six Months Ended
	June 30, 2022			June 30, 2021
Balance at December 31, 2021 and 2020	$	2,668		$	(804	)
Unrealized loss on note receivable		(846	)		—
Pension benefits recognized in OCI		(59	)		(278	)
Balance at June 30, 2022 and 2021	$	1,763		$	(1,082	)

Dilutive Equity Instruments

We had outstanding common shares, incremental "in-the-money" warrants, restricted stock units and stock options at June 30, 2022 and 2021, respectively, as follows:

Total shares outstanding including warrants, restricted stock units and stock options	June 30, 2022		June 30, 2021
Common shares outstanding		42,029,882		41,000,575
New creditor warrants (strike price $0.001 per common share)		395,401		639,354
GulfMark creditor warrants (strike price $0.01 per common share)		309,351		669,601
SPO acquisition warrants (strike price $0.001 per common share) (A)		8,100,000		—
Restricted stock units and stock options		1,627,083		1,623,635
Total		52,461,717		43,933,165

We also had “out-of-the-money” warrants outstanding exercisable for 5,923,399 shares of common stock at both June 30, 2022 and 2021. Included in these “out-of-the-money” warrants are Series A Warrants, Series B Warrants and GLF Equity Warrants which have exercise prices of $57.06, $62.28, and $100.00, respectively, and expire on various dates in 2023 and 2024. No warrants or restricted stock units, whether in the money or out of the money, are included in our loss per share calculations because the effect of such inclusion is antidilutive.

(A) The Share Purchase Agreement for SPO included a provision under which the former parent of SPO agreed to indemnify us for certain liabilities and could settle these liabilities, at their option, with cash or SPO acquisition warrants. This provision caused the SPO acquisition warrants to be classified as liabilities which requires a mark to market valuation primarily based on the change in our share price at each reporting period. Absent this provision, the SPO acquisition warrants would have been classified as equity in our balance sheet with the value included in additional paid in capital. On June 24, 2022, we amended the Share Purchase Agreement revising the provision to require our consent to use the warrants to satisfy any indemnity liabilities. We recognized a loss associated with the mark to market adjustment on June 24, 2022 totaling $14.2 million based on the share price of $21.83 per share on June 24, 2022 compared to the Merger Date share price of $20.08 per share. The SPO acquisition warrants were reclassified from liabilities to additional paid in capital at the adjusted amount of $176.8 million.