Company: UFPT
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001171843-25-003049
Chunk: 12

Company: UFP TECHNOLOGIES INC
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 12
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3 million. The change in fair value of contingent consideration for the acquisitions is included in change in fair value of contingent consideration in the consolidated statements of comprehensive income.

15

The Company entered into Non-Competition Agreements with certain previous owners of DAS Medical and Advant Medical which includes, an aggregate of $10.0 million in payments to certain previous owners of DAS Medical over a ten year period, and an aggregate of €375 thousand in payments to the previous owner of Advant Medical over a three year period. The Company paid approximately $1.7 million during the three months ended March 31, 2025, related to non-competition agreements. The present value of the Non-Competition Agreements at March 31, 2025 totaled approximately $5.2 million. This liability is considered to be a Level 3 financial liability that is re-measured each reporting period.

The Company has financial instruments, such as accounts receivable, accounts payable, and accrued expenses, that are stated at carrying amounts that approximate fair value because of the short maturity of those instruments. The carrying amount of the Company’s long-term debt approximates fair value as the interest rate on the debt approximates the estimated borrowing rate currently available to the Company.

			(8)

			Share-Based Compensation

Share-based compensation is measured at the grant date based on the fair value of the award and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant).

The Company issues share-based awards through several plans that are described in detail in the notes to the consolidated financial statements for the year ended December 31, 2024. The compensation cost charged against income for those plans is included in selling, general & administrative expenses as follows (in thousands):

			Three Months Ended

			March 31,

			Share-based compensation related to:

			2025

			2024

			Common stock grants

			$
			100

			$
			100

			Stock option grants

			108

			113

			Restricted Stock Unit Awards ("RSUs")

			2,004

			1,300

			Total share-based compensation

			$
			2,212

			$
			1,513

The total income tax benefit recognized in the condensed consolidated statements of comprehensive income for share-based compensa‐tion arrangements was approximately $1.2 million and $1.1 million for