Share-Based Compensation

9 Months Ended

Sep. 30, 2022

Share-Based Payment Arrangement, Noncash Expense [Abstract]

NOTE 6 – Share-Based Compensation

The table below sets forth information related to our share-based compensation expense:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Cost of goods sold	$	485	$	390	$	1,168	$	946
Selling, general and administrative		8,529		8,690		22,309		21,350
Research and development		1,197		1,081		3,247		2,629
Total share-based compensation expense	$	10,211	$	10,161	$	26,724	$	24,925

Share Grants – Share grants consist of restricted stock awards, restricted stock units and performance stock units ("PSUs"). Restricted stock awards and restricted stock units generally vest in equal annual installments over a four-year period and are measured based on the fair market value of the underlying stock on the date of grant. Compensation expense is recognized on a straight-line basis over the requisite four-year service period. All new grants are granted under the Company’s 2022 Equity Incentive Plan.

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.

As of September 30, 2022, total unrecognized share-based compensation expense related to share grants was approximately $72.6 million, before income taxes, and is expected to be recognized over a weighted average period of approximately 2.3 years.

Stock Options –We recognized stock option expense of less than $30 thousand for each of the three month periods ended September 30, 2022 and 2021. We recognized stock option expense of less than $55 thousand for each of the nine month periods ended September 30, 2022 and 2021. All 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.