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STOCK-BASED COMPENSATION
 9 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION

 

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 net total of $84,978 and $154,649 of stock-based compensation expense for the three months ended September 30, 2022 and 2021, respectively, and a net total of $248,359 and $723,474 of stock- based compensation expense for the nine months ended September 30, 2022 and 2021, respectively.

 

During the three and nine months ended September 30, 2022, the Company granted 0 and 190,114 restricted stock units (“RSUs”), respectively, to its board of directors as partial compensation for the 2022 year, and during the three and nine months ended September 30, 2021, the Company granted 0 and 135,512 RSUs, respectively, to its board of directors as partial compensation for the 2021 year. RSUs vest quarterly on a straight-line basis over a one-year period. For the three and nine months ended September 30, 2022, $61,272 and $393,891, respectively, of non-cash compensation expense related to the RSU grants to the board of directors are included selling, general and administrative expenses, and for the three and nine months ended September 30, 2021, $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.

 

During the three and nine months ended September 30, 2022, the Company granted 0 and 18,588 shares of common stock (“Restricted Stock”) to employees. In the event that this employee’s employment is voluntarily terminated prior to certain dates, portions of the shares may be forfeited. For the three and nine months ended September 30, 2022, $17,235 and $(172,009), respectively, of compensation expense are included in selling, general and administrative expenses, which includes forfeitures during the three months ended March 31, 2022 of 171,495 shares totaling ($263,148) of credit. For the three and nine months ended September 30, 2022, $6,471 and $26,477, respectively, of compensation expense are included in cost of sales for shares of common stock granted to employees between 2018 and 2022. For the three and nine months ended September 30, 2021, $61,434 and $173,536, respectively, of compensation expense are included in selling, general and administrative expenses and $13,577 and $37,955, respectively, of compensation expense are included in cost of sales for shares of common stock granted to employees between 2016 and 2020. During the three and nine months ended September 30, 2021, 41,199 shares were forfeited.