On May 14, 2019, the stockholders of the Company approved the Basic Energy Services, Inc. 2019 Long Term Incentive Plan (the “2019 LTIP”) to succeed the Basic Energy Services, Inc. Management Incentive Plan (the “MIP”). The 2019 LTIP became effective on May 14, 2019, and replaced the MIP. A total of 2,481,657 shares of the Company’s common stock are reserved for issuance pursuant to the 2019 LTIP. No further awards will be granted under the MIP.

During the years ended December 31, 2020 and 2019, compensation expense related to share-based arrangements under the MIP and the 2019 LTIP, including restricted stock, restricted stock units and stock option awards, was approximately $1.5 million and $8.7 million, respectively. For share-based compensation expense recognized during the year ended December 31, 2020 and 2019, the Company did not recognize a tax benefit due to the valuation allowance on our deferred tax assets.

At December 31, 2020, there was $0.3 million unrecognized compensation related to non-vested share-based compensation arrangements granted under the MIP and the 2019 LTIP. That cost is expected to be recognized over a weighted average period of 1.4 years. Expenses described below are for employee awards granted under the MIP or the 2019 LTIP, as applicable.

Total expense related to stock options was approximately $2,000 in 2020 and $1.9 million in 2019. These stock options became fully vested and expensed as of the first quarter of 2020. Options granted under the MIP expire 10 years from the date they are granted, and generally vest over a period of three years.







	Stock Options	Weighted Average Exercise Price	Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (000's)
Non-statutory stock options:
Outstanding at beginning of period	306,506	$39.23
Granted	—	—
Forfeited	(5,396)	41.90
Exercised	—	—
Expired	(106,846)	39.09
Outstanding and exercisable at end of period	194,264	$39.23	6.09	$—

A summary of the Company’s non-vested restricted stock activity during 2020 is presented in the following table:




	Restricted Stock Units	Weighted Average Grant Date Fair Value Per Unit
Non-vested at beginning of period	573,066	$4.46
Granted	—	—
Vested	(289,281)	5.84
Forfeited	(125,126)	3.71
Non-vested at end of period	158,659	$2.53

In the second quarter of 2019, the Board also made grants of time-based restricted stock awards representing an aggregate 533,160 shares of common stock of the Company to certain members of management. These grants are subject to vesting over a three-year period and are subject to accelerated vesting under certain circumstances. The first one-third of the grant vested on May 15, 2020 with the next two installments scheduled for May 15, 2021 and 2022, respectively.

The fair value of time vesting restricted stock is equal to the quoted market price for the shares on the date of the grant. The total fair value of time-vesting restricted stock vested in fiscal 2020 and 2019 was $0.1 million and $0.3 million, respectively, and is measured as the quoted market price of the Company’s common stock on the vesting date for the number of shares vested.

A summary of the Company’s non-vested performance-based restricted stock activity during 2020 is presented in the following table:




	Number of Performance Stock Units	Weighted Average Grant Date Fair Value Per Unit
Non-vested at beginning of period	312,238	$20.52
Granted	—	—
Vested	(116,227)	35.29
Performance Adjustment	(167,519)	9.52
Forfeited	(28,492)	24.95
Non-vested at end of period	—	$—

The total fair value of performance-based restricted stock units vested in 2020 and 2019 was $22,000 and $1.0 million, respectively, and is measured as the quoted market price of the Company’s common stock on the vesting date for the number of shares vested.

The Compensation Committee also approves grants of phantom restricted stock awards to employees. Phantom shares are recorded as a liability at their current market value and are included in other current liabilities. These grants remain subject to vesting annually in one-third increments over a three-year period, and are subject to accelerated vesting in certain circumstances. Based on the trading price of the Company's common stock, the amount of liability recorded related to phantom stock awards was not significant at December 31, 2020.