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Revenue recognition and accounts receivable
 6 Months Ended
Jun. 30, 2023
Revenue Recognition And Accounts Receivable [Abstract]  
Revenue recognition and accounts receivable

10. Revenue recognition and accounts receivable

Revenue Recognition

The Company has two reporting segments: Global Spine and Global Orthopedics. Within the Global Spine reporting segment, there are two product categories: (i) Bone Growth Therapies, and (ii) Spinal Implants, Biologics, and Enabling Technologies.

The table below presents net sales by major product category by reporting segment:

 

 

 

Three Months Ended June 30,

 

(Unaudited, U.S. Dollars, in thousands)

 

2023

 

 

2022

 

 

Change

 

Bone Growth Therapies

 

$

52,662

 

 

$

47,765

 

 

 

10.3

%

Spinal Implants, Biologics, and Enabling Technologies

 

 

105,314

 

 

 

43,017

 

 

 

144.8

%

Global Spine

 

 

157,976

 

 

 

90,782

 

 

 

74.0

%

Global Orthopedics

 

 

29,040

 

 

 

27,288

 

 

 

6.4

%

Net sales

 

$

187,016

 

 

$

118,070

 

 

 

58.4

%

 

 

 

Six Months Ended June 30,

 

(Unaudited, U.S. Dollars, in thousands)

 

2023

 

 

2022

 

 

Change

 

Bone Growth Therapies

 

$

100,376

 

 

$

89,713

 

 

 

11.9

%

Spinal Implants, Biologics, and Enabling Technologies

 

 

206,806

 

 

 

83,724

 

 

 

147.0

%

Global Spine

 

 

307,182

 

 

 

173,437

 

 

 

77.1

%

Global Orthopedics

 

 

55,038

 

 

 

51,051

 

 

 

7.8

%

Net sales

 

$

362,220

 

 

$

224,488

 

 

 

61.4

%

Product Sales and Marketing Service Fees

The table below presents product sales and marketing service fees, which are both components of net sales:

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Unaudited, U.S. Dollars, in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Product sales

 

$

174,078

 

 

$

103,559

 

 

$

336,326

 

 

$

196,167

 

Marketing service fees

 

 

12,938

 

 

 

14,511

 

 

 

25,894

 

 

 

28,321

 

Net sales

 

$

187,016

 

 

$

118,070

 

 

$

362,220

 

 

$

224,488

 

 

Product sales primarily consist of the sale of bone growth therapies devices, spinal implants, certain biologics, enabling technologies, and orthopedics products. Marketing service fees are received from MTF Biologics based on total sales of biologics tissues sourced from MTF Biologics and relate solely to the Global Spine reporting segment. The Company partners with MTF Biologics to provide certain allograft solutions (HCT/Ps) for various spine, orthopedic and other bone repair needs, with this partnership allowing us to exclusively market certain biologic offerings.

Accounts receivable and related allowances

The following table provides a detail of changes in the Company’s allowance for expected credit losses for the three and six months ended June 30, 2023 and 2022:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

(Unaudited, U.S. Dollars, in thousands)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Allowance for expected credit losses beginning balance

 

$

6,691

 

 

$

5,389

 

 

$

6,419

 

 

$

4,944

 

Addition resulting from the Merger with SeaSpine

 

 

—

 

 

 

—

 

 

 

137

 

 

 

—

 

Current period provision for expected credit losses

 

 

282

 

 

 

539

 

 

 

490

 

 

 

1,139

 

Write-offs charged against the allowance and other

 

 

6

 

 

 

(142

)

 

 

(120

)

 

 

(246

)

Effect of changes in foreign exchange rates

 

 

36

 

 

 

(197

)

 

 

89

 

 

 

(248

)

Allowance for expected credit losses ending balance

 

$

7,015

 

 

$

5,589

 

 

$

7,015

 

 

$

5,589