v3.21.2

BUSINESS COMBINATION (Tables)

9 Months Ended

Sep. 30, 2021

Business Combination and Asset Acquisition [Abstract]

Schedule of total consideration transferred after discounting future payments

The following table reconciles the total consideration transferred after discounting the future payments:

						Consideration						Present Value
Cash consideration						$	2,000					$	2,000
Payment of ApiFix transaction related costs						67						67
Issuance of common stock						35,176						35,176
Anniversary Payments						30,000						22,620
System sales payment						41,741						27,190
Total consideration transferred						$	108,984					$	87,053

Schedule of recognized identified assets acquired and liabilities assumed

The following table summarizes the total consideration paid for ApiFix and allocation of purchase price to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date (in thousands):

Description						Amount
Fair value of estimated total acquisition consideration						$	87,379
Assets
Cash						344
Accounts receivable-trade						245
Inventories						685
Prepaid expenses and other current assets						77
Property and equipment						153
Intangible assets						32,150
Other intangible assets						8,640
Operating lease right-of-use asset						104
Total assets						42,398
Liabilities
Accounts payable and accrued liabilities						226
Operating lease liabilities						106
Other current liabilities						270
Deferred income taxes						6,487
Total liabilities						7,089
Less: total net assets						35,309
Goodwill						$	52,070

Schedule of finite-lived intangible assets acquired as part of business combination

The estimated fair value and useful life of identifiable intangible assets are as follows:

						Amount						Remaining Economic Useful Life
Trademarks / Names						$	8,640					Indefinite
Patents						31,720						15 years
Customer Relationships						230						10 years
Non-competition Agreements						200						4 years
						$	40,790

Schedule of indefinite-lived intangible assets acquired as part of business combination

The estimated fair value and useful life of identifiable intangible assets are as follows:

						Amount						Remaining Economic Useful Life
Trademarks / Names						$	8,640					Indefinite
Patents						31,720						15 years
Customer Relationships						230						10 years
Non-competition Agreements						200						4 years
						$	40,790

Schedule of business acquisitions by acquisition, contingent consideration

Presented below is a summary of the present value of the anniversary payments and system sales payment related to the ApiFix acquisition:

						April 1, 2020						December 31, 2020						September 30, 2021
Anniversary Payments:
Second Year Payment						$	10,980					$	12,233					$	12,791
Third Year Payment						5,780						6,335						6,890
Fourth Year Payment						5,860						6,449						7,037
Total acquisition installment payable						22,620						25,017						26,718
Less: current portion of acquisition installment payable						10,980						12,233						12,791
Acquisition installment payable, net of current portion						11,640						12,784						13,927
System sales payment						27,190						30,710						34,420
ApiFix future consideration, net of current portion						$	38,830					$	43,494					$	48,347

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Tabular disclosure of contingent payment arrangements including the terms that will result in payment and the accounting treatment that will be followed if such contingencies occur, including the potential impact on earnings per share if contingencies are to be settled in common stock of the entity. The description also may include the period over which amounts are expected to be paid, and changes in the amount since the previous reporting period. This also includes contingent options and commitments.

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Tabular disclosure of a material business combination completed during the period, including background, timing, and recognized assets and liabilities. This table does not include leveraged buyouts.

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Tabular disclosure of finite-lived intangible assets acquired as part of a business combination or through an asset purchase, by major class and in total, including the value of the asset acquired, any significant residual value (the expected value of the asset at the end of its useful life) and the weighted-average amortization period.

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Tabular disclosure of characteristics and cost, by total and major class, of indefinite-lived intangible assets acquired as part of a business combination. Indefinite-lived intangible assets are assets that have no physical form, but have expected future economic benefit. The future benefit is not expected to diminish over a stated period of time. Acquired indefinite-lived intangible assets are disclosed by major class (assets that can be grouped together because they are similar, either by their nature or by their use in operations of the entity) and in total.

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Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree.

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