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STOCK-BASED COMPENSATION

9 Months Ended

Sep. 30, 2021

Share-based Payment Arrangement [Abstract]

5.	STOCK-BASED COMPENSATION

The Company accounts for stock-based compensation based on the fair value of the stock or stock-based instrument on the date of grant. The Company recognized a total of $154,649 and $141,101 of stock-based compensation expense for the three months ended September 30, 2021 and 2020, respectively, and a total of $723,474 and $677,489 of stock- based compensation expense for the nine months ended September 30, 2021 and 2020, respectively.

During the three and nine months ended September 30, 2021, the Company granted 0 and 135,512 restricted stock units (“RSUs”), respectively, to its board of directors as partial compensation for the 2021 year, and during the three and nine months ended September 30, 2020, the Company granted 2,617 and 76,167 RSUs, respectively, to its board of directors as partial compensation for the 2020 year. RSUs vest quarterly on a straight-line basis over a one-year period. For the three and nine months ended September 30, 2021, approximately $79,638 and $511,983, respectively, of non-cash compensation expense related to the RSU grants to the board of directors are included in selling, general and administrative expenses, and for the three and nine months ended September 30, 2020, approximately $89,801 and $481,672, respectively, of non-cash compensation expense related to the RSU grants to the board of directors are included selling, general and administrative expenses.

During the three and nine months ended September 30, 2021, the Company granted 0 and 166,428 shares of common stock to employees. In the event that any of these employees voluntarily terminates their employment prior to certain dates, portions of the shares may be forfeited. In addition, if certain Company performance criteria are not achieved, portions of these shares may be forfeited. For the three and nine months ended September 30, 2021, approximately $61,434 and $173,536, respectively, of compensation expense are included in selling, general and administrative expenses and approximately $13,577 and $37,955, respectively, of compensation expense are included in cost of sales for the three and nine months ended September 30, 2021, respectively, for shares of common stock granted to employees between 2016 and 2020. For the three and nine months ended September 30, 2020, approximately $22,040 and $137,946, respectively, of compensation expense are included in selling, general and administrative expenses and approximately $29,261 and $57,872, respectively, of compensation expense are included in cost of sales for shares of common stock granted to employees between 2015 and 2019. During the three and nine months ended September 30, 2021, 41,199 shares were forfeited.