NOTE 9 - SHARE-BASED COMPENSATION

9 Months Ended

Sep. 30, 2017

Share-based Compensation [Abstract]

NOTE 9 - SHARE-BASED COMPENSATION

For share-based awards granted, we have recognized compensation expense based on the estimated grant date fair value method. For these awards we have recognized compensation expense using a straight-line amortization method reduced for estimated forfeitures.

The impact on our results of operations of recording share-based compensation, net of forfeitures, for the three and nine months ended September 30, 2017 and 2016, respectively, was as follows:

	Three Months Ended						Nine Months Ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
(in thousands)
Cost of goods sold	$	4		$	3		$	14		$	11
Research and development		39			23			127			82
Selling, general and administrative		130			84			399			316
Total share-based compensation	$	173		$	110		$	540		$	409
Impact on net earnings (loss) per share:
Basic and diluted	$	(0.02	)	$	(0.01	)	$	(0.07	)	$	(0.05	)

The fair value of share-based awards for employee stock options was estimated using the Black-Scholes valuation model. The following weighted average assumptions were used to calculate the fair value of stock options granted during the three months and nine months ended September 30, 2017 and 2016:

	Three Months Ended				Nine Months Ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
Risk-free interest rates		1.72%		N/A		1.72%		N/A
Volatility factors		0.62		N/A		0.62		N/A
Expected life of the option in years		4.00		N/A		4.00		N/A
Expected dividend yield		None		N/A		None		N/A

Equity awards granted during the three and nine months ended September 30, 2017 and 2016 were as follows:

	Three Months Ended				Nine Months Ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
Restricted Stock		51,000		3,000		286,600		225,100
Stock Options		25,000		-		25,000		-

Non-employee directors Restricted Stock Units (“RSU’s”) vest over one year, employee RSU’s vest over four years and employee Non-Qualified stock options vest quarterly over 4 years and have a six year exercise period.

The remaining unamortized expected future equity compensation expense and remaining amortization period associated with unvested option grants, restricted stock awards and restricted stock unit awards at September 30, 2017 are:

	September 30, 2017
Unamortized future equity compensation expense (in thousands)	$	2,722
Remaining weighted average amortization period (in years)		3.19