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

 

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

 

2024

 

 

2023

 

 

Change

 

Bone Growth Therapies

 

$

57,925

 

 

$

53,359

 

 

 

8.6

%

Spinal Implants, Biologics, and Enabling Technologies

 

 

108,179

 

 

 

100,993

 

 

 

7.1

%

Global Spine

 

 

166,104

 

 

 

154,352

 

 

 

7.6

%

Global Orthopedics

 

 

30,502

 

 

 

29,654

 

 

 

2.9

%

Net sales

 

$

196,606

 

 

$

184,006

 

 

 

6.8

%

 

 

 

Nine Months Ended September 30,

 

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

 

2024

 

 

2023

 

 

Change

 

Bone Growth Therapies

 

$

169,537

 

 

$

153,735

 

 

 

10.3

%

Spinal Implants, Biologics, and Enabling Technologies

 

 

325,894

 

 

 

307,799

 

 

 

5.9

%

Global Spine

 

 

495,431

 

 

 

461,534

 

 

 

7.3

%

Global Orthopedics

 

 

88,403

 

 

 

84,692

 

 

 

4.4

%

Net sales

 

$

583,834

 

 

$

546,226

 

 

 

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 September 30,

 

 

Nine Months Ended September 30,

 

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

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Product sales

 

$

184,040

 

 

$

170,666

 

 

$

545,288

 

 

$

506,992

 

Marketing service fees

 

 

12,566

 

 

 

13,340

 

 

 

38,546

 

 

 

39,234

 

Net sales

 

$

196,606

 

 

$

184,006

 

 

$

583,834

 

 

$

546,226

 

 

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 nine months ended September 30, 2024 and 2023:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

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

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Allowance for expected credit losses beginning balance

 

$

8,368

 

 

$

7,015

 

 

$

7,130

 

 

$

6,419

 

Addition resulting from the Merger with SeaSpine

 

 

—

 

 

 

—

 

 

 

—

 

 

 

137

 

Current period provision for expected credit losses

 

 

486

 

 

 

415

 

 

 

2,059

 

 

 

905

 

Write-offs charged against the allowance and other

 

 

(1,118

)

 

 

(214

)

 

 

(1,321

)

 

 

(334

)

Effect of changes in foreign exchange rates

 

 

142

 

 

 

(126

)

 

 

10

 

 

 

(37

)

Allowance for expected credit losses ending balance

 

$

7,878

 

 

$

7,090

 

 

$

7,878

 

 

$

7,090