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Acquisitions and divestitures (Tables) | 3 Months Ended
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Apr. 01, 2023
Business Combination and Asset Acquisition [Abstract] |
Schedule of Held for Sale Assets and Liabilities | The carrying amounts of the major classes of assets and liabilities of the Wound Business that were classified as held for sale were as follows:
| April 1, 2023
Carrying amounts of assets classified as held for sale |
Accounts receivable, net of allowance of $898 | $ | 4,114 |
Inventory | 1,481 |
Property and equipment, net | 443 |
Intangible assets | 31,835 |
Total assets held for sale | $ | 37,873 |
Carrying amounts of liabilities classified as held for sale |
Accounts payable | $ | 1,285 |
Accrued liabilities | 588 |
Total liabilities held for sale | $ | 1,873 |
The following table summarizes CartiHeal’s major classes of assets and liabilities as reported on the consolidated condensed balance sheets as of December 31, 2022 as the balances were fully deconsolidated as of April 1, 2023:
| December 31, 2022
Carrying amounts of major classes of assets included as part of discontinued operations |
Cash | $ | 1,628 |
Restricted cash | 23 |
Other receivables | 350 |
Inventory | 642 |
Prepaid and other current assets | 134 |
Property and equipment, net | 191 |
Goodwill | 6,297 |
Intangible assets, net | 398,873 |
Operating lease assets | 618 |
Other assets | 15 |
Total assets | $ | 408,771 |
Carrying amounts of major liabilities included as part of discontinued operations |
Accounts payable | $ | 852 |
Accrued liabilities | 384 |
Current portion of deferred consideration | 117,615 |
Other current liabilities | 236 |
Deferred income taxes | 79,863 |
Deferred consideration | 79,269 |
Contingent consideration | 67,251 |
Other long-term liabilities | 2,528 |
Total liabilities | $ | 347,998 |
The following table summarizes the major income and expense line items of these discontinued operations, as reported in the consolidated statements of operations for the three months ended April 1, 2023 and April 2, 2022:
|  |  | Three Months Ended
|  |  |  |  | April 1, 2023 |  | April 2, 2022
Selling, general and administrative expense |  |  |  |  | $ | 1,728 |  |  | $ | — |
Research and development expense |  |  |  |  | 396 |  |  | — |
Change in fair value of contingent consideration(a) |  |  |  |  | 1,710 |  |  | — |
Depreciation and amortization(a) |  |  |  |  | 4,264 |  |  | — |
Operating loss from discontinued operations |  |  |  |  | (8,098) |  |  | — |
Interest expense (income), net |  |  |  |  | 4,889 |  |  | — |
Other expense(b) |  |  |  |  | 61,442 |  |  | 401 |
Other expense |  |  |  |  | 66,331 |  |  | 401 |
Net loss |  |  |  |  | (74,429) |  |  | (401) |
Loss attributable to noncontrolling interest |  |  |  |  | 14,937 |  |  | — |
Net loss attributable to Bioventus Inc. |  |  |  |  | $ | (59,492) |  |  | $ | (401) |
(a)Depreciation and amortization and the change in fair value of contingent consideration represents the significant operating non-cash items of discontinued operations. (b)Other expense includes the $60,639 loss on deconsolidation, of which $10,150 was attributable to non-refundable payments.
Schedule of Business Acquisitions, by Acquisition | The fair value of consideration for the CartiHeal Acquisition was comprised of the following:
Cash consideration | $ | 100,000 |
Transaction related costs | 8,622 |
Subtotal of cash at closing | 108,622 |
Deferred Amount | 183,400 |
Sales Milestone | 61,901 |
Fair value of previously held equity interest(a) | 39,477 |
Total consideration | $ | 393,400 |
(a) Remeasurement of the Company’s equity method investment in CartiHeal, net of equity losses as a result of the purchase. The remeasurement included a gain of $23,709 calculated as the difference between the fair value and the carrying value of the Company’s investment in CartiHeal at the acquisition date and was recognized in other income during the third quarter of 2022 on the consolidated condensed statements of operations and comprehensive loss. The fair value was based upon: (i) the consideration transferred to members owning 89.97% of CartiHeal’s fully diluted shares; (ii) calculating the value of CartiHeal’s fully diluted shares based upon the transferred consideration; and (iii) applying the calculated value to the Company’s 10.03% ownership in CartiHeal’s fully diluted shares at the acquisition date.
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair values of the assets acquired and liabilities assumed at the acquisition date:
Fair value of consideration | $ | 393,400 |
Assets acquired and liabilities assumed: |
Cash and cash equivalents and restricted cash | 3,781 |
Inventory | 642 |
Prepaid and other current assets | 552 |
Property and equipment | 259 |
Intangibles | 410,200 |
Investment and other assets | 727 |
Accounts payable | (18) |
Accrued liabilities | (459) |
Other current liabilities | (171) |
Deferred income taxes | (79,863) |
Other liabilities | (2,544) |
Net assets acquired | 333,106 |
Resulting goodwill | $ | 60,294 |
Schedule of Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | CartiHeal’s intangibles consisted of the following:
| Useful Life |  | Fair Value
Intellectual Property - US Segment | 20 years |  | $ | 351,500 |
Intellectual Property - International Segment | 8 years |  | 58,700 |
|  |  | $ | 410,200 |

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- Definition Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3A -URI https://asc.fasb.org/extlink&oid=109226691&loc=SL51724579-110230 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=109222650&loc=d3e1474-107760 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5D -URI https://asc.fasb.org/extlink&oid=109222650&loc=SL51721677-107760 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 11 -URI https://asc.fasb.org/extlink&oid=109222160&loc=SL51721533-107759 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3A -URI https://asc.fasb.org/extlink&oid=109222650&loc=SL51721659-107760 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 4B -URI https://asc.fasb.org/extlink&oid=109222650&loc=SL51721665-107760 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=109226691&loc=d3e2941-110230 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5C -URI https://asc.fasb.org/extlink&oid=109222650&loc=SL51721675-107760 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 7 -URI https://asc.fasb.org/extlink&oid=109222650&loc=SL51721683-107760 Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=109222650&loc=d3e1361-107760 Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5A -URI https://asc.fasb.org/extlink&oid=109222650&loc=SL51721671-107760 Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5B -URI https://asc.fasb.org/extlink&oid=109222650&loc=SL51721673-107760 Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 4A -URI https://asc.fasb.org/extlink&oid=109222650&loc=SL51721663-107760 + Details
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- 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
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