HALLADOR ENERGY CO Stock Compensation Disclosure
(8) STOCK COMPENSATION PLANS
Restricted Stock Units (RSUs)
A portion of the total compensation offered by the Company to its employees and directors includes stock-based compensation in the form of RSUs. The RSUs generally vest over a period of three years. The table below shows the number of RSUs available for issuance at December 31, 2025:
Total authorized RSUs in Plan approved by shareholders | | 6,850,000 |
Stock issued out of the Plan from vested grants |
| (4,260,472) |
Unvested grants |
| (586,101) |
RSUs available for future issuance |
| 2,003,427 |
Unvested grants at December 31, 2023 | | 858,363 |
Awarded - weighted average share price on grant date was $5.69 |
| 599,013 |
Vested |
| (380,390) |
Forfeited |
| (42,500) |
Unvested grants as of December 31, 2024 |
| 1,034,486 |
Awarded - weighted average share price on grant date was $16.96 |
| 365,237 |
Vested |
| (743,080) |
Forfeited |
| (70,542) |
Unvested grants as of December 31, 2025 |
| 586,101 |
RSU Vesting Schedule
Vesting Year | | RSUs Vesting |
2026 | | 197,693 |
2027 |
| 377,192 |
2028 | 11,216 | |
586,101 |
Shares that vested in 2025 had a value of $10.6 million based on the average share price of $14.32 on their vesting dates. Under our RSU plan, participants are allowed to relinquish shares to pay for their required statutory income taxes.
Stock-based compensation expense is included in labor and in general and administrative in the consolidated statements of operations. For the years ended December 31, 2025 and 2024, stock-based compensation expense was $3.5 million and $4.5 million, respectively.
As noted in our Form 8-K filed with the SEC on June 2, 2025, on May 29, 2025, shareholders approved the Second Amended and Restated 2008 Restricted Stock Unit Plan (the “RSU Plan”) which, (i) increased the number of shares available for issuance by 2,000,000 shares, and (ii) extended the term of the RSU Plan until May 29, 2035.
As of December 31, 2025, unrecognized stock compensation expense to be recognized over the respective vesting period was $4.1 million. RSUs are not allocated earnings and losses as they are considered non-participating securities. Forfeitures are recognized as they occur.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Mar 14, 2024 | |
About Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.