SHARE-BASED COMPENSATION

6 Months Ended

Jun. 30, 2023

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

NOTE 10 – 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 six months ended June 30, 2023 and 2022, respectively, were as follows:

	Three Months Ended				Six Months Ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
(in thousands)
Cost of goods sold	$	30	$	25	$	48	$	40
Research and development		81		69		129		133
Selling, general and administrative		269		286		452		498
Total share-based compensation	$	380	$	380	$	629	$	671

Equity awards granted during the three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended				Six Months Ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Restricted Stock Units		272,100		324,200		282,100		326,715
Performance Stock Units		25,000		-		25,000		-

Non-employee directors Restricted Stock Units (“RSUs”) typically vest over the earlier of one year or the next annual meeting of shareholders and Non-Qualified stock options vest over three years and have a six-year exercise period. Employee RSUs typically vest annually over three or four years and employee Non-Qualified stock options typically vest quarterly over four years and have a six-year exercise period. Performance Stock Units (“PSUs”) typically cliff vest at the end of the performance period and the performance metric is cumulative revenue growth over the three-year period ending December 31, 2025 with a cumulative revenue threshold, target, and maximum.

The remaining unamortized expected future equity compensation expense and remaining amortization period associated with award grants of unvested options, PSUs and RSUs at June 30, 2023 and 2022 are:

	June 30, 2023		June 30, 2022
Unamortized future equity compensation expense (in thousands)	$	2,683	$	2,631
Remaining weighted average amortization period (in years)		2.64		2.82

The weighted average number of shares outstanding used to compute earnings (loss) per share included the following:

	Three Months Ended				Six Months Ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
Restricted Stock Units		169,990		92,525		195,204		140,049
Performance Stock Units		232		-		96		-
Stock Options		237		177		236		218