STOCK COMPENSATION

3 Months Ended

Mar. 31, 2024

STOCK COMPENSATION

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, 2024, is as follows:

	Performance-Based		Service-Based		Number of Shares		Weighted Average Grant Date Fair Value per Share
Non-vested, December 31, 2023		40,278		2,000		42,278	$	12.07
Granted		—		—		—		—
Vested		—		—		—		—
Forfeited		—		—		—		—
Non-vested, March 31, 2024		40,278		2,000		42,278	$	12.07

In 2021, the Compensation Committee and Board of Directors approved a Long-Term Incentive Plan with respect to the grant of stock pursuant to the 2016 Equity Incentive Plan. The final equity amount earned is based on continued service through the three-year performance period ending on December 31, 2023, Board discretion, and performance results. The actual number of performance-based shares of common stock of the Company, if any, earned by the award recipients is determined 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. As of the date of these financial statements, the final awarded amount has not been determined, however the stock compensation cost was recognized over the requisite performance/service period using the straight-line method and based on the probable number of shares to be awarded.

Awards are being amortized to expense ratably, based upon the vesting schedule. Stock compensation for the three month period ended March 31, 2024 was approximately $5, based upon the value at the date of grant. Stock compensation for the three month period ended March 31, 2023 was approximately $85, based upon the value at the date of grant. There was $29 of unrecognized compensation cost related to the non-vested restricted stock as of March 31, 2024.