(

) Share-Based Compensation

The share-based compensation expense is recorded in cost of goods sold, research and development, and selling, general and administrative expenses based on the employee's or non-employee’s respective function.

share-based compensation was capitalized during the periods presented. Share-based compensation expense for the

three

and

six

months ended

June 30, 2019

and

2018

was recorded as follows (in thousands):

	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Cost of goods sold	$	46	$	36	$	92	$	66
Research and development		251		264		494		461
Selling, general and administrative		399		438		800		826
Share-based compensation expense	$	696	$	738	$	1,386	$	1,353

The following table summarizes the activity of stock options and related information:

	Options outstanding
	Number of shares			Weighted average exercise price

Balance, December 31, 2018		608,485		$	25.16
Stock options granted		14,000			10.05
Stock options exercised		—			-
Stock options canceled		(4,119	)		45.10
Balance, June 30, 2019		618,366		$	24.75
Exercisable and vested, June 30, 2019		362,368		$	24.57

Unrecognized share-based compensation for employee and nonemployee options granted through

June 30, 2019

is approximately

$3.9

million to be recognized over a remaining weighted average service period of

2.0

years.

Non-Employee Director Share-Based Compensation (RSUs)

The following summarizes the activity of non-vested RSUs:

				Weighted
				average
				grant date
	Number of			fair value
	shares			per share
Stock options canceled		29,694		$	25.56
RSUs granted		-			-
RSUs vested		(2,268	)	$	99.36
RSUs forfeited		-			-
Balance, June 30, 2019		27,426		$	19.45

Unrecognized share-based compensation for RSUs granted through

June 30, 2019

is approximately

$148,000

to be recognized over a remaining weighted average service period of

0.5

years.