Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Compensation

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Stock-Based Compensation
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation 
The Company grants stock-based awards under its Amended and Restated 2014 Incentive Stock Plan (the “2014 Plan”). The shares issued as a result of stock-based compensation transactions generally have been funded with the issuance of new shares of the Company’s common stock. The Company may grant the following types of incentive awards under the 2014 Plan: (i) non-qualified stock options; (ii) incentive stock options; (iii) stock appreciation rights; (iv) restricted stock; and (v) restricted stock units. Each award granted under the 2014 Plan is subject to an award agreement that incorporates, as applicable, the exercise price, the term of the award, the periods of restriction, the number of shares to which the award pertains and such other terms and conditions as the plan committee determines. Awards granted under the 2014 Plan are classified as equity awards, which are recorded in stockholders’ equity in the Company’s consolidated balance sheets. Through March 31, 2024, the Company has granted under the 2014 Plan (i) non-qualified stock options; (ii) incentive stock options; and (iii) restricted stock. There were no stock appreciation rights and restricted stock units granted under the 2014 Plan as of March 31, 2024.
Stock Options
The Company’s closing price on the date of grant is the basis of fair value of its common stock used in determining the value of share-based awards. To the extent the value of the Company’s share-based awards involves a measure of volatility, the Company uses available historical volatility of the Company’s common stock over a period of time corresponding to the expected stock option term. The Company historically has used the simplified method to calculate the expected term of stock option grants to employees as the Company did not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term of stock options granted to employees. Accordingly, the expected life of the options granted is based on the average of the vesting term, which is generally four years and the contractual term, which is generally ten years. The Company will continue to evaluate the appropriateness of utilizing such method. The risk-free interest rate is based on United States Treasury yields in effect at the date of grant for periods corresponding to the expected stock option term. Forfeitures are estimated based on historical and forecasted turnover, which is approximately 5%.
The Company did not grant options during the three months ended March 31, 2024 and March 31, 2023.
The information below summarizes the stock option activity for the three months ended March 31, 2024:
Number of
Shares		 Weighted
Average
Exercise
Price		 Weighted
Average
Remaining
Contractual Life
(Years)
Outstanding at December 31, 2023 486,334  $ 8.88  3.7
Granted —  — 
Exercised —  — 
Forfeited (2,054) 34.60 
Expired —  — 
Outstanding at March 31, 2024 484,280  $ 8.77  3.4
Exercisable at March 31, 2024 476,734  $ 8.14  3.3
For the three months ended March 31, 2024 and 2023, stock-based compensation expense for stock options was $54,739 and $64,882, respectively.
Restricted Stock
Restricted stock granted to employees generally vests in four equal annual installments, although on March 5, 2024 and on May 25, 2023, the Company granted 29,454 shares and 51,401 shares, respectively, of restricted stock to certain high performing employees that vest in one installment on the first anniversary of the grant. Restricted stock granted to non-employee directors typically vests in full one year after the date of grant.
The information below summarizes the restricted stock activity for the three months ended March 31, 2024:
Restricted Stock Awards Shares Weighted Average
Grant-Date Fair
Value per Award
Non-vested at December 31, 2023 231,901  $ 17.32 
Granted 212,767  9.31 
Vested (33,401) 21.80 
Forfeited (27,977) 15.83 
Non-vested at March 31, 2024 383,290  $ 12.59 
For the three months ended March 31, 2024 and 2023, stock-based compensation expense for restricted stock was $438,656 and $201,328, respectively.