NATURAL GAS SERVICES GROUP INC

14. Stockholders’ Equity

Preferred Stock

As of December 31, 2024 and 2023, we had a total of 5.0 million authorized preferred shares which may be issued in series with rights and preferences as designated by the Board of Directors. As of December 31, 2024 and 2023, there wereno issued or outstanding preferred shares.

Common Stock

As of December 31, 2024 and 2023, we had a total of 30.0 million authorized common shares with a par value of $0.01 per share. As of December 31, 2024 and 2023, there were 13.8 million and 13.7 million shares issued and 12.5 million and 12.4 million shares outstanding, respectively.

Additional Paid-In Capital

Additional paid-in capital includes the cumulative amounts received in excess of the par value with respect to the public offerings of our common stock and the issuance of shares in connection with our stock-based compensation plans. In addition, additional paid-in capital is increased by the periodic cost of equity-classified stock-based compensation awards, net of any forfeitures and the cost of shares used to settle income tax obligations upon vesting.

Retained Earnings and Comprehensive Income

We have not paid any cash dividends on our common stock. While not explicitly prohibited, cash dividends are considered restricted payments as defined in the Credit Facility and may be made provided that certain conditions are satisfied as provided for in the Credit Facility, including the absence of any defaults, among others. Our comprehensive income is comprised only of our net income (loss) as there are no components that would be considered as other comprehensive income.

Treasury Stock

From October 23, 2020 through its expiration on September 30, 2022, we maintained an authorized share repurchase program. During that period, we repurchased a total of 1.3 million shares of common stock for a total of $15.0 million, or an average of approximately $11.45 per share. The reacquired shares have been recorded at cost and are reflected in Treasury stock on our Consolidated Balance Sheets.

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