12. SHARE-BASED INCENTIVE PLAN

The Company maintains a restricted stock incentive plan for the purpose of attracting and retaining officers, key employees and non-employee board members. Share awards vest in equal annual installments over a three to ten year period from date of issuance. Non-vested shares have voting rights and are eligible for any dividends paid to common shares. The Company recognized compensation cost for these fixed awards over the service vesting period, which represents the requisite service period, using the straight-line method. The value of non-vested shares was calculated based on the offering price of the shares in the most recent private placement offering of $10.00, adjusted for stock dividends since granted and assumed selling costs (currently $4.01), which management believes approximates fair market value as of the date of grant.

A summary of the activity for the Company’s restricted stock was as follows:


Outstanding shares:	Common Shares
Balance at December 31, 2018		239,312
Granted		153,062
Forfeited		(14,340	)
Vested		(126,149	)

Balance at December 31, 2019		251,885

The non-vested restricted shares outstanding as of December 31, 2019 will vest over the next one to ten years.

The value of non-vested restricted stock granted for the years ended December 31, 2019 and 2018 was approximately $1.7 million and $2.1 million, respectively.

Share-based compensation expense for the years ended December 31, 2019 and 2018 was approximately $686,000 and $461,000, respectively.