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NOTE 10 - SHARE-BASED COMPENSATION | 12 Months Ended
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Dec. 31, 2020
Share-based Payment Arrangement, Noncash Expense [Abstract] |
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, 2020 and 2019 was as follows:
|  | Year Ended December 31, |
|  | 2020 |  |  | 2019 |
(in thousands) |  |  |  |  |  |
Cost of goods sold |  | $ | 44 |  |  | $ | 28 |
Research and development |  |  | 371 |  |  |  | 288 |
Selling, general and administrative |  |  | 1,052 |  |  |  | 855 |
Total share-based compensation |  | $ | 1,467 |  |  | $ | 1,171 |
An immaterial amount of share-based compensation was capitalized into inventory as overhead for the years ended December 31, 2020 and 2019, respectively. The fair values of share-based awards for employee stock option awards were estimated at the date of grant using the Black-Scholes valuation model. The volatility and expected life of the options used in calculating the fair value of share-based awards may exclude certain periods of historical data that we considered atypical and not likely to occur in future periods. There were no options granted during the year ended December 31, 2020. The following weighted average assumptions were used to calculate the fair value of options granted during the year ended December 31, 2019:
|  | Employee Stock |
|  | Options |
|  | 2020 |  |  | 2019 |
Risk-free interest rates |  |  | n/a |  |  |  | 2.31 | %
Volatility factors |  |  | n/a |  |  |  | 62.05 | %
Expected life of the option in years |  |  | n/a |  |  |  | 4.0 |
Expected dividend yield |  |  | n/a |  |  | None |
The risk-free interest rate used in the Black-Scholes valuation method is based on the implied yield currently available in U.S. Treasury securities at maturity with an equivalent term. We have not recently declared or paid any dividends and do not currently have plans to do so in the future. The expected term of options represents the period that our stock-based awards are expected to be outstanding and has been determined based on historical weighted average holding periods and projected holding periods for the remaining unexercised shares. Consideration was given to the contractual terms of our stock-based awards, vesting schedules and expectations of future employee behavior. Expected volatility is based on the annualized daily historical volatility of our stock over a representative period. The following table summarizes stock option activity under our stock option plans for the twelve months ended December 31:
|  | 2020 |  |  | 2019 |
|  | 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 |  |  | 25,000 |  |  | $ | 4.98 |  |  |  |  |  |  | 25,000 |  |  | $ | 8.03 |  |  |  |
Granted |  |  | - |  |  |  | - |  |  |  |  |  |  | 25,000 |  |  |  | 4.98 |  |  |  |
Exercised |  |  | - |  |  |  | - |  |  |  |  |  |  | - |  |  |  | 0.00 |  |  |  |
Cancelled, Expired or |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Forfeited |  |  | - |  |  |  | - |  |  |  |  |  |  | (25,000 | ) |  |  | 8.03 |  |  |  |
Outstanding at end of year |  |  | 25,000 |  |  | $ | 4.98 |  |  |  | 4.33 |  |  |  | 25,000 |  |  | $ | 4.98 |  |  |  | 5.34 |
Vested or expected to vest at the end of the period |  |  | 24,068 |  |  | $ | 4.98 |  |  |  | 4.33 |  |  |  | 24,723 |  |  | $ | 4.98 |  |  |  | 5.34 |
Exercisable at end of year |  |  | 9,375 |  |  | $ | 4.98 |  |  |  | 4.33 |  |  |  | 12,500 |  |  | $ | 4.98 |  |  |  | 5.34 |
The aggregate intrinsic value of outstanding options is $0. There were no stock option awards exercised in 2020. Restricted stock award activity including performance-based stock award activity under our share-based compensation plan was as follows:
|  | 2020 |  |  | 2019 |
|  | Awards |  |  | Weighted - Average Grant Date Fair Value |  |  | Awards |  |  | Weighted - Average Grant Date Fair Value |
Outstanding at beginning of year |  |  | 536,403 |  |  | $ | 5.44 |  |  |  | 558,856 |  |  | $ | 6.06 |
Granted |  |  | 383,951 |  |  |  | 3.02 |  |  |  | 276,700 |  |  |  | 4.57 |
Vested |  |  | (230,901 | ) |  |  | 5.16 |  |  |  | (224,089 | ) |  |  | 5.30 |
Cancelled |  |  | (46,225 | ) |  |  | 4.58 |  |  |  | (75,064 | ) |  |  | 7.30 |
Outstanding at end of year |  |  | 643,228 |  |  | $ | 4.16 |  |  |  | 536,403 |  |  | $ | 5.44 |
During the years ended December 31, 2020 and 2019, 55,687 and 54,436 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, 2020 |  |  | December 31, 2019 |
Unamortized future compensation expense |  | $ | 2,017,501 |  |  | $ | 2,351,324 |
Remaining weighted average amortization period in years |  |  | 2.35 |  |  |  | 2.40 |

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