Share-based compensation

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

13. Share-based compensation

Components of share-based compensation expense are as follows:


	Three Months Ended March 31,
(Unaudited, U.S. Dollars, in thousands)	2023		2022
Cost of sales	$	471	$	211
Sales and marketing		2,249		981
General and administrative		9,104		3,218
Research and development		1,196		(78	)
Total	$	13,020	$	4,332


	Three Months Ended March 31,
(Unaudited, U.S. Dollars, in thousands)	2023		2022
Stock options	$	2,756	$	359
Time-based restricted stock awards and units		9,846		2,170
Market-based / performance-based restricted stock units		—		1,444
Stock purchase plan		418		359
Total	$	13,020	$	4,332

Pursuant to the Merger Agreement, the equity awards of SeaSpine (including stock options and restricted stock units) outstanding as of immediately prior to the closing of the Merger were converted into equity awards denominated in shares of Orthofix common stock. The Company issued options to purchase 1,889,812 shares of Orthofix common stock and 490,338 shares of time-based vesting restricted stock in connection with the conversion of such awards. The estimated fair value of the portion of the SeaSpine equity awards for which the required service period had been completed at the time of the closing of the Merger was treated as purchase consideration. The remaining estimated fair value is recorded as compensation expense over the remainder of the service period associated with the awards.