Company: OFIX
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000950170-25-026066
Chunk: 71

Company: Orthofix Medical Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 16
Chunk 71
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 over the vesting period, which is typically three to four years, net of actual forfeitures. The aggregate fair value of time-based restricted stock awards and stock units that vested during the years ended December 31, 2024, 2023, and 2022, was $13.3 million, $17.2 million, and $5.2 million, respectively. Unamortized compensation expense related to time-based restricted stock awards and stock units amounted to $15.7 million at December 31, 2024. This amount is expected to 

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be recognized through December 2027 over a weighted average period of approximately 1.6 years. The aggregate intrinsic value of time-based restricted stock awards and stock units outstanding was $35.2 million as of December 31, 2024. Performance-based and Market-based Restricted Stock UnitsCertain of the Company's outstanding restricted stock units contain performance-based vested conditions or market-based vesting conditions. As previously discussed, in January 2023 all then outstanding performance-based and market-based restricted stock units became time-based restricted stock units with the performance goals deemed achieved at the target level of 100% upon completion of the Merger based on the Board of Directors' determination to treat the transaction as a "Change in Control" under applicable agreements and equity plans. The fair value of performance-based restricted stock units is calculated based upon the closing stock price at the date of grant. Such value is recognized as expense over the requisite service period beginning in the period in which they are deemed probable to vest, net of actual forfeitures. Vesting probability is assessed based upon forecasted financial metrics or applicable milestones associated with the applicable grant. The fair value of market-based restricted stock units is determined at the date of the grant using the Monte Carlo valuation methodology, with any discounts for post-vesting restrictions estimated using the Chaffe Model. The Monte Carlo methodology incorporates into the valuation the possibility that the market condition may not be satisfied. Such value is recognized on a straight-line basis over the vesting period, net of actual forfeitures.The fair value of performance-based and/or market-based restricted stock units that vested and settled during each of the years ended December 31, 2024, 2023, and 2022, totaled less than $0.1 million, respectively. Unamortized compensation expense for performance-based and/or market-based restricted stock units totaled $11.1 million at December 31, 2024, and is expected to be recognized over