Share-Based Compensation

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Share-Based Compensation

Note 14 – Share-Based Compensation

The table below sets forth the line items where share-based compensation expense was recorded for the twelve months ended December 31:

	2022		2021		2020
Cost of goods sold	$	1,630	$	1,321	$	1,064
Selling, general and administrative expense		30,295		28,188		21,013
Research and development expense		4,362		3,696		3,183
Total share-based compensation expense	$	36,287	$	33,205	$	25,260

The table below sets forth share-based compensation expense by type for the twelve months ended December 31:

	2022		2021		2020
Stock options	$	36	$	73	$	-
Share grants		36,251		33,132		25,260
Total share-based compensation expense	$	36,287	$	33,205	$	25,260

In May 2022, our stockholders approved our 2022 Equity Incentive Plan (“2022 Plan”). Since the approval of the 2022 Plan, all share-based compensation awards were granted under the 2022 Plan, and we will not grant any further stock options under any previous plans. Stock options under the 2022 Plan generally vest in equal annual installments over a four-year period and expire eight years after the grant date. The number of shares authorized to be awarded under the 2022 Plan is 7 million shares.

Share Grants – Restricted stock awards and restricted stock units generally vest in equal annual installments over a four-year period. 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.

The table below sets forth a summary of our non-vested share grants in 2022, 2021 and 2020:

Restricted Stock Grants	Shares			Weighted Average Grant Date Fair Value ($)		Aggregate Intrinsic Value
Nonvested at December 31, 2019		1,697			31.71
Granted		573			48.83
Vested		(770	)		27.78
Forfeited and other		88			38.31
Nonvested at December 31, 2020		1,588			39.30
Granted		598			79.26
Vested		(750	)		33.39
Forfeited and other		(34	)		52.27
Nonvested at December 31, 2021		1,402			54.94
Granted		535			69.87
Vested		(614	)		45.96	$	46,633
Forfeited and other		(55	)		61.87
Nonvested at December 31, 2022		1,269			65.29	$	96,634

The total unrecognized share-based compensation expense as of December 31, 2022, was approximately $62.6 million, relating to share grants, which was expected to be recognized over a weighted average period of approximately 2.2 years.

Stock Options – Share-based compensation expense for stock options granted in previous years was calculated on the date of grant using the Black-Scholes-Merton option-pricing model. 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.

Total cash received from option exercises was approximately $0.1 million, $4.3 million and $6.8 million during 2022, 2021 and 2020, respectively.

At December 31, 2022, there was no unrecognized compensation expense related to unvested options.

The table below sets forth a summary of activity in our stock option plan:

Stock Options	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Outstanding and exercisable at December 31, 2020		192			23.32			$	9,059
Exercised		(187	)		23.19			$	10,631
Outstanding and exercisable at December 31, 2021		5			27.92		0.4	$	409
Exercised		(5	)		27.92		0.4	$	409
Outstanding and exercisable at December 31, 2022		-