SHAREBASED COMPENSATION

12 Months Ended

Dec. 31, 2022

SHAREBASED 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 and reduced for estimated forfeitures. The impact on our results of operations of recording share-based compensation for the year ended December 31, 2022 and 2021 was as follows:

	Year Ended December 31,
	2022		2021
(in thousands)
Cost of goods sold	$	76	$	57
Research and development		228		303
Selling, general and administrative		872		878
Total share-based compensation	$	1,176	$	1,238

An immaterial amount of share-based compensation was capitalized into inventory as overhead for the years ended December 31, 2022 and 2021, respectively.

The following table summarizes stock option activity under our stock option plans for the twelve months ended December 31, 2022:

	2022						2021
	Options		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life in Years		Options			Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life in Years
Outstanding at beginning of year		12,500	$	4.98				25,000		$	4.98
Granted		-		-				-			-
Exercised		-		-				(12,500	)		4.98
Cancelled, Expired or
Forfeited		-		-				-			-
Outstanding at end of year		12,500	$	4.98		2.33		12,500		$	4.98		3.33
Vested or expected to vest at the end of the period		12,466	$	4.98		2.33		12,166		$	4.98		3.33
Exercisable at end of year		9,375	$	4.98		2.33		3,125		$	4.98		3.33

The aggregate intrinsic value of outstanding options is $0. There were no stock option awards exercised in 2022.

Restricted stock award activity including performance-based stock award activity under our share-based compensation plan was as follows:

	2022					2021
	Awards			Weighted - Average Grant Date Fair Value		Awards			Weighted - Average Grant Date Fair Value
Outstanding at beginning of year		623,777		$	4.73		643,228		$	4.16
Granted		330,215			3.26		262,001			5.95
Vested		(249,292	)		4.95		(272,952	)		4.56
Cancelled		(39,500	)		4.33		(8,500	)		4.15
Outstanding at end of year		665,200		$	3.94		623,777		$	4.73

During the years ended December 31, 2022 and 2021, 57,206 and 85,264 shares respectively were withheld from issuance related to restricted stock units vesting and stock option exercises to cover employee taxes and stock options exercise price.

The remaining unamortized expected future compensation expense and remaining amortization period associated with unvested option grants and restricted stock awards are:

	December 31, 2022		December 31, 2021
Unamortized future compensation expense	$	2,029,457	$	2,300,286
Remaining weighted average amortization period in years		2.47		2.57