The Company accounts for stock-based compensation based on the fair value of the stock or stock-based instrument on the date of grant. The Company recognized a net total of $137,498 and $225,098 of stock-based compensation expense for the three months ended June 30, 2022 and 2021, respectively, and a net total of $163,381 and $568,825 of stock- based compensation expense for the six months ended June 30, 2022 and 2021, respectively.

During the three and six months ended June 30, 2022, the Company granted 0 and 190,114 restricted stock units (“RSUs”), respectively, to its board of directors as partial compensation for the 2022 year, and during the three and six months ended June 30, 2021, the Company granted 0 and 135,512 RSUs, respectively, to its board of directors as partial compensation for the 2021 year. RSUs vest quarterly on a straight-line basis over a one-year period. For the three and six months ended June 30, 2022, approximately $114,000 and $333,000, respectively, of non-cash compensation expense related to the RSU grants to the board of directors are included selling, general and administrative expenses, and for the three and six months ended June 30, 2021, approximately $147,902 and $432,345, respectively, of non-cash compensation expense related to the RSU grants to the board of directors are included in selling, general and administrative expenses.

During the three and six months ended June 30, 2022, the Company granted 0 and 18,588 shares of common stock (“Restricted Stock”) to an employee. In the event that this employee’s employment is voluntarily terminated prior to certain dates, portions of the shares may be forfeited. For the three and six months ended June 30, 2022, approximately $17,000 and $(189,000), respectively, of compensation expense are included in selling, general and administrative expenses, which includes forfeitures during the three months ended March 31, 2022 of 85,748 shares totaling approximately ($263,000) of credit. For the three and six months ended June 30, 2022, approximately $6,000 and $20,000, respectively, of compensation expense are included in cost of sales for shares of common stock granted to employees between 2016 and 2020. For the three and six months ended June 30, 2021, approximately $63,653 and $112,102, respectively, of compensation expense are included in selling, general and administrative expenses and approximately $13,543 and $24,378, respectively, of compensation expense are included in cost of sales for shares of common stock granted to employees between 2016 and 2020.