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STOCK-BASED COMPENSATION
 9 Months Ended
Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION

   

5. STOCK-BASED COMPENSATION

 

Stock-based compensation expense for restricted stock in the consolidated statements of operations is summarized as follows:

 

                                 
   Three months ended
September 30,		   Nine months ended
September 30,		 
   2023   2022   2023   2022 
Cost of sales  $6,612   $6,471   $58,860   $26,477 
Selling, general and administrative   134,104    78,507    600,995    221,882 
Total stock-based compensation expense  $140,716   $84,978   $659,855   $248,359 

 

The Company grants restricted stock units (“RSUs”) to its board of directors as partial compensation. These RSUs vest quarterly on a straight-line basis over a one-year period.

 

The Company grants shares of common stock (“Restricted Stock Awards”) to select employees. In the event that the employee’s employment is voluntarily terminated prior to certain vesting 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. 85,748 shares were forfeited during the nine months ended September 30, 2022, resulting in a reduction to stock-based compensation expense for the nine months ended September 30, 2022 in selling, general and administrative expense of $263,148.

 

 

The following table summarizes activity related to outstanding RSUs and Restricted Stock Awards for the nine months ended September 30, 2023:

 

    Restricted Stock Awards  

Weighted Average

Grant Date

Fair Value of Restricted Stock Awards

   RSUs  

Weighted Average

Grant Date

Fair Value of RSUs

 
Non-vested – January 1, 2023    239,184   $2.32    —   $— 
Granted    212,902   $3.82    170,042   $3.44 
Vested    (82,769)  $2.83    (103,070)  $3.44 
Forfeited    (41,073)  $1.60    (33,749)  $3.42 
Non-vested – September 30, 2023    328,244   $3.25    33,223   $3.47 

 

As of September 30, 2023, unamortized stock-based compensation costs related to restricted share arrangements was $373,375.