SHARE-BASED COMPENSATION

3 Months Ended

Mar. 31, 2024

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 and reduced for estimated forfeitures.  

The impact on our results of operations of recording share-based compensation, net of forfeitures, for the three months ended March 31, 2024 and 2023 were as follows:

	Three Months Ended
	March 31, 2024		March 31, 2023
(in thousands)
Cost of goods sold	$	23	$	18
Research and development		65		48
Selling, general and administrative		193		183
Total share-based compensation	$	281	$	249

Equity awards granted during the three months ended March 31, 2024 and 2023 were as follows:

	Three Months Ended
	March 31, 2024		March 31, 2023
Restricted Stock Units		-		10,000

Non-employee director 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”), granted in 2023, 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 performance measure.

The remaining unamortized expected future equity compensation expense and remaining amortization period associated with award grants of unvested options, PSUs and RSUs at March 31, 2024 and 2023 are:

	Three Months Ended
	March 31, 2024		March 31, 2023
Unamortized future equity compensation expense (in thousands)	$	2,035	$	1,823
Remaining weighted average amortization period (in years)		2.29		2.37

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

	Three Months Ended
	March 31, 2024		March 31, 2023
Restricted Stock Units		118,903		210,545
Performance Stock Units		2,935		0
Stock Options		174		234