For the three and nine months ended September 30, 2021, we recognized stock option expense of approximately $0.02 million and $0.06 million, respectively. This stock option expense is related to stock options granted by Savitech Corporation (“Savitech”) in Savitech stock to their employees. We acquired a controlling interest in Savitech in 2020. The remainder of our share-based compensation expense was related to share grants. Approximately $4.3 million of cash proceeds were received from stock option exercises during the nine months ended September 30, 2021. The table below sets forth the line items where share-based compensation expense was recorded:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Cost of goods sold	$	390	$	241	$	946	$	771
Selling, general and administrative		8,690		5,157		21,350		15,583
Research and development		1,081		892		2,629		2,330
Total share-based compensation expense	$	10,161	$	6,290	$	24,925	$	18,684

Share Grants – Restricted stock awards and restricted stock units generally vest in equal annual installments over a four-year period. All new grants are granted under the Company’s 2013 Equity Incentive Plan. Restricted stock grants are measured based on the fair market value of the underlying stock on the date of grant, and compensation expense is recognized on a straight-line basis over the requisite four-year service period.

Performance stock units (“PSUs”) are measured based on the fair market value of the underlying stock on the date of grant, and compensation expense is recognized over the three-year performance period, with adjustments made to the expense to recognize the probable payout percentage. PSUs will vest upon the Company achieving a cumulative 3-year non-GAAP operating income target for the applicable periods.