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Revenue recognition and accounts receivable
 9 Months Ended
Sep. 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 September 30,

 

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

 

2023

 

 

2022

 

 

Change

 

Bone Growth Therapies

 

$

53,359

 

 

$

46,531

 

 

 

14.7

%

Spinal Implants, Biologics, and Enabling Technologies

 

 

100,993

 

 

 

39,655

 

 

 

154.7

%

Global Spine

 

 

154,352

 

 

 

86,186

 

 

 

79.1

%

Global Orthopedics

 

 

29,654

 

 

 

27,810

 

 

 

6.6

%

Net sales

 

$

184,006

 

 

$

113,996

 

 

 

61.4

%

 

 

 

Nine Months Ended September 30,

 

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

 

2023

 

 

2022

 

 

Change

 

Bone Growth Therapies

 

$

153,735

 

 

$

136,244

 

 

 

12.8

%

Spinal Implants, Biologics, and Enabling Technologies

 

 

307,799

 

 

 

123,379

 

 

 

149.5

%

Global Spine

 

 

461,534

 

 

 

259,623

 

 

 

77.8

%

Global Orthopedics

 

 

84,692

 

 

 

78,861

 

 

 

7.4

%

Net sales

 

$

546,226

 

 

$

338,484

 

 

 

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 September 30,

 

 

Nine Months Ended September 30,

 

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

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Product sales

 

$

170,666

 

 

$

100,485

 

 

$

506,992

 

 

$

296,652

 

Marketing service fees

 

 

13,340

 

 

 

13,511

 

 

 

39,234

 

 

 

41,832

 

Net sales

 

$

184,006

 

 

$

113,996

 

 

$

546,226

 

 

$

338,484

 

 

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 nine months ended September 30, 2023 and 2022:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

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

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Allowance for expected credit losses beginning balance

 

$

7,015

 

 

$

5,589

 

 

$

6,419

 

 

$

4,944

 

Addition resulting from the Merger with SeaSpine

 

 

—

 

 

 

—

 

 

 

137

 

 

 

—

 

Current period provision for expected credit losses

 

 

415

 

 

 

574

 

 

 

905

 

 

 

1,713

 

Write-offs charged against the allowance and other

 

 

(214

)

 

 

10

 

 

 

(334

)

 

 

(236

)

Effect of changes in foreign exchange rates

 

 

(126

)

 

 

(225

)

 

 

(37

)

 

 

(473

)

Allowance for expected credit losses ending balance

 

$

7,090

 

 

$

5,948

 

 

$

7,090

 

 

$

5,948