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Fair value measurements and investments (Tables)
 9 Months Ended
Sep. 30, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Schedule of Financial Assets and Liabilities Recorded at Fair Value on Recurring Basis

The fair value measurements of the Company’s financial assets and liabilities measured on a recurring basis were as follows:

 

 

September 30,
2023

 

 

December 31,
2022

 

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

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Neo Medical convertible loan agreements

 

$

—

 

 

$

—

 

 

$

7,670

 

 

$

7,670

 

 

$

7,140

 

Neo Medical preferred equity securities

 

 

—

 

 

 

6,084

 

 

 

—

 

 

 

6,084

 

 

 

6,084

 

Bone Biologics equity securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other investments

 

 

—

 

 

 

—

 

 

 

1,286

 

 

 

1,286

 

 

 

1,726

 

Total

 

$

—

 

 

$

6,084

 

 

$

8,956

 

 

$

15,040

 

 

$

14,950

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lattus contingent consideration

 

$

—

 

 

$

—

 

 

 

(9,100

)

 

$

(9,100

)

 

$

—

 

Spinal Kinetics contingent consideration

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Deferred compensation plan

 

 

—

 

 

 

(1,413

)

 

 

—

 

 

 

(1,413

)

 

 

(1,515

)

Total

 

$

—

 

 

$

(1,413

)

 

$

(9,100

)

 

$

(10,513

)

 

$

(1,515

)

 
Schedule of Reconciliation of Investments in Equity Securities

The table below presents a reconciliation of the beginning and ending balances of the Company’s investment in Neo Medical preferred equity securities:

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

 

2023

 

 

2022

 

Fair value of Neo Medical preferred equity securities at January 1

 

$

6,084

 

 

$

5,413

 

Conversion of loan into preferred equity securities

 

 

—

 

 

 

671

 

Fair value of Neo Medical preferred equity securities at September 30

 

$

6,084

 

 

$

6,084

 

Cumulative unrealized gain on Neo Medical preferred equity securities

 

$

413

 

 

$

413

 
Schedule of Reconciliation For Contingent Consideration Measured At Fair Value Using Significant Unobservable Inputs The following table provides a reconciliation of the beginning and ending balances for the Spinal Kinetics contingent consideration measured at estimated fair value using significant unobservable inputs (Level 3):

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

 

2023

 

 

2022

 

Spinal Kinetics contingent consideration estimated fair value at January 1

 

$

—

 

 

$

17,200

 

Decrease in fair value recognized in acquisition-related amortization and remeasurement

 

 

—

 

 

 

(17,200

)

Spinal Kinetics contingent consideration estimated fair value at September 30

 

$

—

 

 

$

—

 

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

 

2023

 

 

2022

 

Lattus contingent consideration estimated fair value at January 5

 

$

11,200

 

 

$

—

 

Decrease in fair value recognized in acquisition-related amortization and remeasurement

 

 

(2,100

)

 

 

—

 

Lattus contingent consideration estimated fair value at September 30

 

$

9,100

 

 

$

—

 
Fair Value, Inputs, Level 3 [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Schedule of Reconciliation For Convertible Loans Measured At Fair Value Using Significant Unobservable Inputs

The following table provides a reconciliation of the beginning and ending balances of the Convertible Loans, measured at fair value using significant unobservable inputs (Level 3):

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

 

2023

 

 

2022

 

Fair value of Neo Medical Convertible Loans at January 1

 

$

7,140

 

 

$

7,148

 

Interest recognized in interest income, net

 

 

367

 

 

 

326

 

Foreign currency remeasurement recognized in other expense, net

 

 

54

 

 

 

(437

)

Unrealized gain (loss) recognized in other comprehensive loss

 

 

109

 

 

 

(766

)

Conversion of Second Convertible Loan into preferred equity securities

 

 

—

 

 

 

(671

)

Fair value of Neo Medical Convertible Loans at September 30

 

$

7,670

 

 

$

5,600

 

Amortized cost basis of Neo Medical Convertible Loans at September 30

 

$

6,328

 

 

$

5,425

 
Schedule of Changes in Valuation of Securities

The following table provides quantitative information related to certain key assumptions utilized within the valuation as of September 30, 2023:

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

 

Fair Value as of
 September 30, 2023

 

 

Unobservable inputs

 

Estimate

 

Neo Medical Convertible Loan

 

$

7,670

 

 

Cost of equity discount rate

 

 

19.4

%

 

 

 

 

 

Estimated equity volatility

 

 

80.6

%

The following table provides quantitative information related to certain key assumptions utilized within the valuation as of September 30, 2023:

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

 

Fair Value as of
 September 30, 2023

 

 

Unobservable inputs

 

Estimate

 

Lattus Contingent Consideration

 

$

9,100

 

 

Counterparty discount rate

 

 

9.5

%

 

 

 

 

 

Revenue risk-adjusted discount rate

 

 

7.0

%