STOCK COMPENSATION

3 Months Ended

Mar. 31, 2022

STOCK COMPENSATION

Note - 4 Stock Compensation

4. STOCK COMPENSATION

The fair value of restricted stock awards is estimated to be the market price of the Company’s common stock at the close of the date of grant. Restricted stock activity during the three months ended March 31, 2022, is as follows:

	Performance- Based		Service- Based		Number of Shares		Weighted  Average  Grant Date Fair Value  per  Share
Non-vested, December 31, 2021		42,466		40,054		82,520	$	12.45
Granted		—		—		—		—
Vested		—		—		—		—
Forfeited		—		—		—		—
Non-vested, March 31, 2022		46,466		40,054		82,520	$	12.45

The actual number of performance-based shares of common stock of the Company, if any, to be earned by the award recipients is determined over a three year performance measurement period based on measures that include Earnings Before Interest Taxes Depreciation and Amortization (“EBITDA”) margin, revenue growth, and free cash flow. The EBITDA margin and revenue growth performance targets have been set for each of the Minimum, Target, and Maximum levels. The actual performance amount received is determined by the Compensation Committee and may be adjusted for items determined to be unusual in nature or infrequent in occurrence. A smaller portion is also earned based on Board discretion and continued service. The stock compensation cost is recognized over the requisite performance/service period using the straight-line method and can be periodically adjusted for the probable number of shares to be awarded.

Stock compensation (in thousands) for the three month period ended March 31, 2022 was approximately $126, based upon the value at the date of grant. Stock compensation for the three month period ended March 31, 2021 was approximately $41, based upon the value at the date of grant. There was $822 of unrecognized compensation cost related to the non-vested restricted stock as of March 31, 2022.