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Stock-Based Compensation | 9 Months Ended
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Sep. 30, 2023
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | 12. STOCK-BASED COMPENSATION On October 16, 2017 (“Effective Date”), the Company’s stockholders approved the Company’s 2017 Equity Incentive Plan (the “Plan”). The Plan is designed to provide equity-based incentives to certain eligible persons, as defined in the Plan, in the form of options, share appreciation rights, restricted stock, restricted stock units, dividend equivalent rights or other forms of equity-based compensation as determined in the discretion of the Board of Directors, the Compensation Committee of the Board of Directors, or other designee thereof. The total number of shares of common stock reserved and available for issuance under the Plan on the Effective Date was 760,000. On M arch 27, 2023, the Company approved restricted stock awards under the Plan to certain of its officers and employees in the aggregate amount of 37,976 shares, of which 14,250 shares are time-based grants and 23,726 shares are performance-based grants. The Company recorded $44,720 and $39,197 for the three months ended September 30, 2023 and 2022, respectively, and $126,428 and $131,112 for the nine months ended September 30, 2023 and 2022, respectively, of expense related to restricted stock awards in general and administrative expense in its consolidated statement of operations. As of September 30, 2023, there was $186,655 and $196,774 of unrecognized compensation expense related to unvested time-based and performance-based restricted stock awards, respectively. That cost is expected to be recognized over a weighted-average period of 2.3 years and 2.9 years for time-based and performance-based awards, respectively. The fair value of common stock awards is determined based on the closing trading price of the common stock on the grant date. Time-Based Restricted Stock Grants These time-based grants vest solely based on continued employment, with 6.25% of the shares eligible to vest on each three- month anniversary of the grant date during the remaining four-year time vesting period. Time-based restricted stock cannot be transferred during the vesting period. These time-based restricted stock grants entitle the holder to dividends paid by the Company on shares of its common stock, including unvested shares. A summary of the Company’s performance-based restricted stock grant activity is as follows:
|  |  |  |  | Weighted-Average |
|  |  |  |  | Grant-Date |
Time-Based Restricted Stock Grants |  | Shares |  |  | Fair Value |
Unvested at December 31, 2022 |  |  | 45,243 |  |  | $ | 4.66 |
Granted |  |  | 14,250 |  |  | $ | 5.11 |
Vested |  |  | (16,048 | ) |  | $ | 4.59 |
Forfeited |  |  | (4,083 | ) |  | $ | 4.98 |
Unvested at September 30, 2023 |  |  | 39,362 |  |  | $ | 4.82 |
Performance-Based Restricted Stock Grants Performance-based restricted stock grants vest based on continued employment and the achievement of certain Funds from Operations, as adjusted (“AFFO”) and same store revenue growth (“SSRG”) goals by the Company during the year of the grant. Each of these performance components are weighted 50% and are measured over the performance cycle, which is defined as the year ending on December 31st in the year of the grant. At the end of the performance cycle, the financial performance components are reviewed to determine the number of shares actually earned, which can be as low as 0% of shares granted and up to a maximum of 200% of shares granted. The shares which are earned will remain subject to quarterly vesting during the remaining four-year time vesting period. Dividends paid by the Company prior to the determination of how many shares are earned will be retained by the Company and released only with respect to earned shares. If a Change in Control (as defined in the Plan) occurs the number of shares earned will equal the greater of the number of shares granted and the number of shares which would have been earned based on the AFFO and SSRG through the date of the Change in Control. If following a Change in Control, a grantee is terminated by the Company without Cause or by the grantee with Good Reason (as each is defined in the Plan), all unvested restricted stock will fully vest. A summary of the Company’s time-based restricted stock grant activity is as follows:
|  |  |  |  | Weighted-Average |
|  |  |  |  | Grant-Date |
Performance-Based Restricted Stock Grants |  | Shares |  |  | Fair Value |
Unvested at December 31, 2022 |  |  | 25,891 |  |  | $ | 5.07 |
Granted |  |  | 23,726 |  |  | $ | 5.11 |
Vested |  |  | (7,677 | ) |  | $ | 4.87 |
Unvested at September 30, 2023 |  |  | 41,940 |  |  | $ | 5.13 |
Forfeitures are accounted for as they occur, compensation cost previously recognized for an award that is forfeited because of a failure to satisfy a service or performance condition is reversed in the period of the forfeiture.

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