(a)

Incremental shares from the assumed exercise of INDUS stock options are not included in periods where the inclusion of such shares would be anti-dilutive. The incremental shares from the assumed exercise of stock options and the Warrant for the 2021 second quarter and 2020 second quarter would have been 127,000 and 57,000, respectively. The incremental shares from the assumed exercise of the Warrant and stock options for the 2021 six month period and 2020 six month period would have been 126,000 and 55,000, respectively.

Equity Compensation Plans

Stock Options

There were no stock options granted in the 2021 six month period. The following options were granted by INDUS in the 2020 six month period under the 2020 Incentive Award Plan and the 2009 Stock Option Plan:


		Fair Value per
	Number of	Option at
	Shares	Grant Date
Non-employee directors	111,258	$	11.00 - 14.17


Number of option holders at June 30, 2021		21

As of June 30, 2021, the unrecognized compensation expense related to unvested stock options that will be recognized during future periods is as follows:


Balance of Fiscal 2021	$	199
Fiscal 2022	$	372
Fiscal 2023	$	231
Fiscal 2024	$	111
Fiscal 2025	$	15

A summary of INDUS’s stock option activity is as follows:


	For the Six Months Ended
	June 30, 2021			June 30, 2020
	Number of		Weighted Avg.	Number of		Weighted Avg.
	Shares		Exercise Price	Shares		Exercise Price
Outstanding at beginning of period	246,150	$	36.06	189,822	$	28.23
Adjustment for stock dividend	5,413	$	34.29	—	$	—
Granted	—	$	—	111,258	$	45.72
Exercised	(6,370)	$	26.46	(2,734)	$	29.25
Forfeited	(1,067)	$	37.49	—	$	—
Outstanding at end of period	244,126	$	35.50	298,346	$	34.74


				Weighted Avg.
				Remaining
Range of Exercise Prices for	Outstanding at	Weighted Avg.		Contractual Life	Total Intrinsic
Outstanding Options	June 30, 2021	Exercise Price		(in years)	Value
$23.00 - $28.00	105,176	$	26.25	4.8	$	4,144
$28.00 - $32.00	14,073	$	29.84	4.0		504
$32.00 - $47.00	124,877	$	43.93	8.5		2,712
	244,126	$	35.50	6.6	$	7,360

Vested options	134,447	$	27.82	4.9	$	5,087

Restricted Stock Units

Under the 2020 Incentive Award Plan, INDUS granted the following restricted stock units of Common Stock (“RSUs”) in the 2021 six month period;


	Time-based vesting			Performance-based vesting
		Fair Value per			Fair Value per
	Number of	Unit at		Number of	Option at
	Units	Grant Date		Shares	Grant Date
Employees	8,508	$	63.15	8,508	$	79.33
Non-employee directors	4,682	$	67.28	-
	13,190			8,508

The time-based RSUs granted to employees were effective February 1, 2021 and, subject to the recipient’s continued employment, will vest over three years in equal installments on February 1 of each year beginning in 2022. The performance based RSUs granted in fiscal 2021 will vest after a period of three years and be measured over the three-year period on pre-established goals. The time-based RSUs granted to non-employee directors were effective on June 17, 2021 and will vest over one year. The holders of RSUs will receive credit for dividends, but do not have voting rights. The RSUs may not be sold, assigned, transferred, pledged or otherwise disposed of and are subject to a risk of forfeiture prior to the expiration of the applicable vesting period.

As of June 30, 2021, the unrecognized compensation expense related to RSUs that will be recognized during future periods is as follows:


Balance of Fiscal 2021	$	425
Fiscal 2022	$	521
Fiscal 2023	$	282
Fiscal 2024	$	23

Compensation expense and related tax benefits for stock options and restricted stock units were as follows:


	For the Three Months Ended				For the Six Months Ended
	June 30, 2021		June 30, 2020		June 30, 2021		June 30, 2020
Compensation expense	$	291	$	160	$	505	$	282

Related tax benefit	$	—	$	34	$	—	$	62

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive loss, net of tax, comprised of unrealized gains on cash flow hedges is as follows:


	For the Six Months Ended
	June 30, 2021			June 30, 2020
Balance at beginning of period	$	(7,855)	$	(2,540)
Other comprehensive gain (loss) before reclassifications		1,969		(6,079)
Amounts reclassified		994		434
Net activity for other comprehensive gain (loss)		2,963		(5,645)
Balance at end of period	$	(4,892)	$	(8,185)

Changes in accumulated other comprehensive income (loss), net are as follows:


	For the Three Months Ended
	June 30, 2021						June 30, 2020
			Tax						Tax
			(Expense)		Net-of				(Expense)		Net-of
	Pre-Tax		Benefit		Tax		Pre-Tax		Benefit		Tax
Reclassification included in net loss:
Loss on cash flow hedges (interest expense)	$	506	$	—	$	506	$	414	$	(83)	$	331

Change in other comprehensive loss:
Decrease in fair value of cash flow hedges		(1,022)		—		(1,022)		(1,038)		(77)		(1,115)

Other comprehensive loss	$	(516)	$	—	$	(516)	$	(624)	$	(160)	$	(784)


	For the Six Months Ended
	June 30, 2021						June 30, 2020
			Tax						Tax
			(Expense)		Net-of				(Expense)		Net-of
	Pre-Tax		Benefit		Tax		Pre-Tax		Benefit		Tax
Reclassification included in net loss:
Loss on cash flow hedges (interest expense)	$	994	$	—	$	994	$	549	$	(115)	$	434

Change in other comprehensive income (loss):
Increase (decrease) in fair value of cash flow hedges		1,969		—		1,969		(7,640)		1,561		(6,079)

Other comprehensive income (loss)	$	2,963	$	—	$	2,963	$	(7,091)	$	1,446	$	(5,645)

Dividends

On January 13, 2021, INDUS declared a special dividend to distribute the E&P Distribution, which was based on the Company’s estimated taxable income through December 31, 2020. The E&P Distribution was made on March 8, 2021 in the amount of $11,250 or $1.99 per share to holders of record as of January 22, 2021. The E&P Distribution was paid in a combination of cash and shares of the Company’s Common Stock. The cash portion of the E&P Distribution paid to stockholders was $3,404 and 125,212 shares of Common Stock were issued.

INDUS declared a cash dividend on its common stock on May 7, 2021, of $0.15 per share. INDUS paid $1,158 for this dividend on June 30, 2021. INDUS did not declare or pay a cash dividend in the 2020 six month period.