v3.22.4

BUSINESS COMBINATIONS (Tables)

12 Months Ended

Dec. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the total consideration paid for Pega Medical and the preliminary allocation of purchase price to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date:

Fair value of estimated total acquisition consideration						$	32,045
Assets
Cash						312
Accounts receivable-trade						2,100
Inventories						4,875
Prepaid expenses and other current assets						366
Property and equipment						582
Amortizable intangible assets						10,370
Other intangible assets						3,040
Total assets						21,645
Liabilities
Accounts payable-trade						1,682
Other current liabilities						1,141
Deferred tax liability						3,305
Total liabilities						6,128
Less: total net assets						15,517
Goodwill						$	16,528

The following table summarizes the total consideration paid for MD Ortho and the preliminary allocation of purchase price to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date:

Fair value of estimated total acquisition consideration						$	18,487
Assets
Cash						420
Accounts receivable-trade						1,062
Inventories						1,126
Prepaid expenses and other current assets						100
Property and equipment						2,444
Amortizable intangible assets						9,120
Other intangible assets						2,410
Total assets						16,682
Liabilities
Accounts payable and accrued liabilities						45
Other current liabilities						586
Deferred tax liability						3,014
Total liabilities						3,645
Less: total net assets						13,037
Goodwill						$	5,450

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

Description						Amount
Fair value of 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
Amortizable 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

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

Description						Amount
Fair value of total acquisition consideration						$	3,318
Assets
Cash						81
Accounts receivable-trade						215
Prepaid expenses and other current assets						38
Property and equipment						10
Amortizable intangible assets						950
Other intangible assets						$	210
Total assets						1,504
Liabilities
Accounts payable and accrued liabilities						60
Total liabilities						60
Less: total net assets						1,444
Goodwill						$	1,874

Schedule of Indefinite-lived Intangible Assets Acquired as Part of Business Combination

The fair value of identifiable intangible assets was based on preliminary valuations using a combination of the income and cost approach, inputs which would be considered Level 3 under the fair value hierarchy. The estimated fair value and useful life of identifiable intangible assets are as follows:

						Amount						Remaining Economic Useful Life
Trademarks / Names						$	3,040					Indefinite
Patents						3,141						10 years
Customer Relationships & Other						7,229						15 years
						$	13,410

The fair value of identifiable intangible assets was based on preliminary valuations using a combination of the income and cost approach, inputs which would be considered Level 3 under the fair value hierarchy. The estimated fair value and useful life of identifiable intangible assets are as follows:

						Amount						Remaining Economic Useful Life
Trademarks / Names						$	2,410					Indefinite
Patents						2,660						10 years
Customer Relationships						6,460						15 years
						$	11,530

The fair value of identifiable intangible assets were based on valuations using a combination of the income and cost approach, inputs which would be considered Level 3 under the fair value hierarchy. 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

The fair value of identifiable intangible assets were based on valuations using a combination of the income and cost approach, inputs which would be considered Level 3 under the fair value hierarchy. The estimated fair value and useful life of identifiable intangible assets are as follows:

						Amount						Remaining Economic Useful Life
Trademarks / Names						$	210					Indefinite
Customer Relationships						910						10 years
Non-competition Agreements						40						5 years
						$	1,160

Schedule of Business Acquisition, Pro Forma Information

The following table represents the pro forma net revenue and net loss assuming the acquisitions of MD Ortho and Pega Medical occurred on January 1, 2021.

						December 31,
						2022						2021
Net revenue						$	128,648					$	113,899
Net income (loss)						$	2,110					$	(12,810)

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 Business Acquisitions by Acquisition, Contingent Consideration

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

						December 31, 2022						December 31, 2021						December 31, 2020
Anniversary Payments:
Second Year Payment						$	—					$	12,862					$	12,233
Third Year Payment						7,815						7,075						6,335
Fourth Year Payment						8,019						7,234						6,449
Total acquisition installment payable						15,834						27,171						25,017
Less: current portion of acquisition installment payable						7,815						12,862						12,233
Acquisition installment payable, net of current portion						8,019						14,309						12,784
System sales payment						2,980						28,910						30,710
ApiFix future consideration, net of current portion						$	10,999					$	43,219					$	43,494

X

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (h)(2)
-URI https://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (h)(3)
-URI https://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463

+ Details

Name:	us-gaap_BusinessAcquisitionProFormaInformationTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_BusinessCombinationAndAssetAcquisitionAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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.

+ References

No definition available.

+ Details

Name:	us-gaap_ScheduleOfBusinessAcquisitionsByAcquisitionContingentConsiderationTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=79982066&loc=d3e1486-128463

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463

+ Details

Name:	us-gaap_ScheduleOfBusinessAcquisitionsByAcquisitionTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 30
-Section 50
-Paragraph 1
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 2
-URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4922-128472

+ Details

Name:	us-gaap_ScheduleOfIndefiniteLivedIntangibleAssetsAcquiredAsPartOfBusinessCombinationTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4845-128472

+ Details

Name:	us-gaap_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration