Share-based compensation

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

13. Share-based compensation

Components of share-based compensation expense are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(Unaudited, U.S. Dollars, in thousands)	2023		2022		2023		2022
Cost of sales	$	482	$	205	$	953	$	416
Sales and marketing		2,551		1,000		4,800		1,981
General and administrative		9,167		2,958		18,271		6,176
Research and development		1,046		297		2,242		219
Total	$	13,246	$	4,460	$	26,266	$	8,792


	Three Months Ended June 30,				Six Months Ended June 30,
(Unaudited, U.S. Dollars, in thousands)	2023		2022		2023		2022
Stock options	$	2,397	$	205	$	5,153	$	564
Time-based restricted stock awards and units		10,235		2,410		20,081		4,580
Market-based / performance-based restricted stock units		113		1,497		113		2,941
Stock purchase plan		501		348		919		707
Total	$	13,246	$	4,460	$	26,266	$	8,792

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 1.9 million shares of Orthofix common stock and 0.5 million 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.

During the three months ended June 30, 2023, and 2022, the Company issued 0.3 million and 0.2 million shares, respectively, of common stock related to stock purchase plan issuances, stock option exercises, and the vesting of restricted stock awards and units. During the six months ended June 30, 2023, and 2022, the Company issued 0.5 million and 0.2 million shares, respectively, of common stock related to stock purchase plan issuances, stock option exercises, and the vesting of restricted stock awards and units.