Stock-Based Compensation

9 Months Ended

Sep. 30, 2024

Stock-Based Compensation

Stock-Based Compensation

17. Stock-Based Compensation

The Company’s compensation program comprises three main elements: (1) base salary, (2) an annual short-term incentive plan (“STIP”) award which may be in the form of cash or Deferred Share Units (“DSUs”) with immediate vesting, and (3) long-term equity-based incentive compensation (“LTIP”) in the form of stock options, Restricted Share Units (“RSUs”), and Performance Share Units (“PSUs”).

The Gold Resource Corporation 2016 Equity Incentive Plan (the “Incentive Plan”) allows for the issuance of up to 5 million shares of common stock in the form of incentive and non-qualified stock options, stock appreciation rights, RSUs, stock grants, stock units, performance shares, PSUs, and DSUs.

The Company’s STIP for its management team provides an annual award, which may be settled as a cash payable through the issuance of fully vested equity awards (such as fully vested stock grants or DSUs), or a combination of cash and stock awards (DSUs), upon achievement of specified performance metrics. As of September 30, 2024, the Company has a $0.7 million liability accrued for the 2024 bonuses in accrued expenses and other liabilities.

Stock-based compensation expense for the periods presented is as follows:

	For the three months ended September 30,				For the nine months ended September 30,
	2024		2023		2024		2023
	(in thousands)				(in thousands)
Stock options	$	-	$	10	$	22	$	250
Restricted stock units		184		95		441		422
Performance stock units		9		(118)		137		(150)
Deferred stock units		10		(89)		47		(20)
Total	$	203	$	(102)	$	647	$	502

Stock Options

A summary of stock option activities under the Incentive Plan for the nine months ended September 30, 2024 and 2023 is presented below:

	Stock Options	Weighted Average Exercise Price (per share)
Outstanding as of December 31, 2022	1,475,316	$	2.90
Expired or Forfeited	(414,569)		2.69
Outstanding as of September 30, 2023	1,060,747	$	2.98
Outstanding as of December 31, 2023	840,612	$	2.99
Grant / Exercise / Forfeiture	-		-
Outstanding as of September 30, 2024	840,612	$	2.99
Vested and exercisable as of September 30, 2024	840,612	$	2.99

Restricted Stock Units

A summary of RSU activities under the Incentive Plan for the nine months ended September 30, 2024 and 2023 is presented below:

	Restricted Stock Units	Aggregate Intrinsic Value (in thousands)
Nonvested as of December 31, 2022	575,548	$	881
Granted	779,192
Vested but not redeemed (deferred)	(106,955)
Vested and redeemed	(100,057)
Vested and forfeited for net settlement	(30,181)
Forfeited	(270,292)
Nonvested as of September 30, 2023	847,255	$	363
Nonvested as of December 31, 2023	847,255	$	319
Granted	832,091
Granted in lieu of bonus	637,929
Vested but not redeemed (deferred)	(134,257)
Vested and redeemed	(119,997)
Vested and forfeited for net settlement	(76,994)
Forfeited	(54,769)
Nonvested as of September 30, 2024	1,931,258	$	675

Performance Stock Units

A summary of PSU activities under the Incentive Plan for the nine months ended September 30, 2024 and 2023 is presented below:

	Performance Share Units		Liability Balance (in thousands)
Outstanding as of December 31, 2022	695,041	$	332
Granted	534,890
Forfeited	(349,005)
Outstanding as of September 30, 2023	880,926	$	182
Outstanding as of December 31, 2023	880,926	$	164
Granted	682,367
Forfeited	(33,113)
Redeemed	(201,258)
Outstanding as of September 30, 2024	1,328,922	$	235

Deferred Stock Units

A summary of DSU activities under the Incentive Plan for the nine months ended September 30, 2024 and 2023 is presented below:

	Deferred Stock Units		Liability Balance (in thousands)
Outstanding as of December 31, 2022	360,699	$	552
Granted	278,663
Granted in lieu of board fees	63,624
Granted in lieu of executive bonus	212,407
Redeemed	(373,489)
Outstanding as of September 30, 2023	541,904	$	233
Outstanding as of December 31, 2023	586,291	$	223
Granted in lieu of board fees	183,208
Outstanding as of September 30, 2024	769,499	$	269