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Revenue recognition and accounts receivable
 6 Months Ended
Jun. 30, 2024
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 product category by reporting segment:

 

 

 

Three Months Ended June 30,

 

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

 

2024

 

 

2023

 

 

Change

 

Bone Growth Therapies

 

$

59,135

 

 

$

52,662

 

 

 

12.3

%

Spinal Implants, Biologics, and Enabling Technologies

 

 

108,899

 

 

 

105,314

 

 

 

3.4

%

Global Spine

 

 

168,034

 

 

 

157,976

 

 

 

6.4

%

Global Orthopedics

 

 

30,586

 

 

 

29,040

 

 

 

5.3

%

Net sales

 

$

198,620

 

 

$

187,016

 

 

 

6.2

%

 

 

 

Six Months Ended June 30,

 

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

 

2024

 

 

2023

 

 

Change

 

Bone Growth Therapies

 

$

111,612

 

 

$

100,376

 

 

 

11.2

%

Spinal Implants, Biologics, and Enabling Technologies

 

 

217,715

 

 

 

206,806

 

 

 

5.3

%

Global Spine

 

 

329,327

 

 

 

307,182

 

 

 

7.2

%

Global Orthopedics

 

 

57,901

 

 

 

55,038

 

 

 

5.2

%

Net sales

 

$

387,228

 

 

$

362,220

 

 

 

6.9

%

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)

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Product sales

 

$

185,417

 

 

$

174,078

 

 

$

361,248

 

 

$

336,326

 

Marketing service fees

 

 

13,203

 

 

 

12,938

 

 

 

25,980

 

 

 

25,894

 

Net sales

 

$

198,620

 

 

$

187,016

 

 

$

387,228

 

 

$

362,220

 

 

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 (“MTF”) based on total sales of biologics tissues sourced from MTF and relate solely to the Global Spine reporting segment. The Company partners with MTF to provide certain allograft solutions (HCT/Ps) for various spine, orthopedic and other bone repair needs, with this partnership allowing the Company 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, 2024 and 2023:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

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

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Allowance for expected credit losses beginning balance

 

$

8,398

 

 

$

6,691

 

 

$

7,130

 

 

$

6,419

 

Addition resulting from the Merger with SeaSpine

 

 

—

 

 

 

—

 

 

 

—

 

 

 

137

 

Current period provision for expected credit losses

 

 

197

 

 

 

282

 

 

 

1,573

 

 

 

490

 

Write-offs charged against the allowance and other

 

 

(184

)

 

 

6

 

 

 

(203

)

 

 

(120

)

Effect of changes in foreign exchange rates

 

 

(43

)

 

 

36

 

 

 

(132

)

 

 

89

 

Allowance for expected credit losses ending balance

 

$

8,368

 

 

$

7,015

 

 

$

8,368

 

 

$

7,015