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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 | Stock-Based Compensation We maintain a stock-based compensation program intended to attract, retain and provide incentives for talented employees and directors and align stockholder and employee interests. During the 2023 and 2022 periods, we granted restricted stock units ("RSUs") from the 2017 Equity Compensation Plan, as amended (“2017 ECP”). RSU vesting periods are generally up to three years and/or based upon achieving certain financial targets. On January 1, 2022, in accordance with the plan provisions, the number of shares available for issuance under the 2017 ECP was increased by 150,000 shares. On June 16, 2022, our stockholders approved an amendment to the 2017 ECP increasing the number of shares of our common stock reserved for issuance by 15,000,000 shares. As of September 30, 2023, the total number of authorized shares of our common stock under the 2017 ECP was 24,550,000. Compensation Expense For the three and nine months ended September 30, 2023, we recorded stock-based compensation expense for all equity incentive plans of $536,538 and $1,471,683, respectively. For the three and nine months ended September 30, 2022, we recorded stock-based compensation expense for all equity incentive plans of $535,457 and $1,890,991, respectively. Total compensation cost not yet recognized at September 30, 2023 was $2,051,862, which will be recognized over a weighted-average recognition period of approximately three years. The following table summarizes the stock grants outstanding under 2017 ECP as of September 30, 2023:
| Options Outstanding |  | RSUs Outstanding |  | Options and RSUs Exercised |  | Available Shares |  | Total Awards Authorized
Total | — |  |  | 6,860,016 |  |  | 6,634,121 |  |  | 11,055,863 |  |  | 24,550,000 |
The fair value of restricted stock units is determined using market value of the common stock on the date of the grant. The fair value of stock options is determined using the Black-Scholes-Merton valuation model. The use of this valuation model involves assumptions that are judgmental and highly sensitive in the determination of compensation expense and include the expected life of the option, stock price volatility, risk-free interest rate, dividend yield, exercise price, and forfeiture rate. Forfeitures are estimated at the time of valuation and reduce expense ratably over the vesting period. The forfeiture rate, which is estimated at a weighted average of 0% of unvested options outstanding, is adjusted periodically based on the extent to which actual forfeitures differ, or are expected to differ, from the previous estimate. The following table summarizes the activity of stock option activity for the nine months ended September 30, 2023:
| Shares Subject to Options Outstanding |
| Number of Shares |  | Weighted Average Exercise Price |  |
Outstanding, beginning of period | 100,000 |  |  | $ | 0.52 |  |  |
Stock options canceled | (100,000) |  |  | $ | 0.52 |  |  |
Outstanding, end of period | — |  |  | — |  |  |
The following table summarizes the activities for our RSUs for the nine months ended September 30, 2023:
| RSUs
| Number of Shares |  | Weighted Average Grant Date Fair Value
Outstanding, beginning of period | 4,913,339 |  |  | $ | 0.79 |
Granted | 4,070,000 |  |  | $ | 0.31 |
Vested | (2,073,322) |  |  | $ | 0.86 |
Cancelled | (50,001) |  |  | $ | 0.54 |
Outstanding, end of period | 6,860,016 |  |  | $ | 0.49 |

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