GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

Goodwill

Changes in the carrying amount of goodwill for the nine months ended September 30, 2022 were as follows:

	Total
Goodwill at January 1, 2022	$	72,349
MD Ortho acquisition	5,450
Pega Medical acquisition	16,383
Foreign currency translation impact	(6,138)
Goodwill at September 30, 2022	$	88,044

Intangible Assets

As of September 30, 2022, the balances of intangible assets were as follows:

Amortizable intangible assets	Weighted-Average Amortization Period	Gross Intangible Assets		Accumulated Amortization		Impairment		Net Intangible Assets
Patents	12.2 years	$	45,763	$	(7,334)	$	—	$	38,429
License Agreements	4.9 years	10,697		(3,342)		—		7,355
Customer Relationships & Other	13.6 years	17,170		(1,271)		—		15,899
Intellectual Property	10.0 years	5,859		(1,257)		—		4,602
Total amortizable assets		$	79,489	$	(13,204)	$	—	$	66,285
Other intangible assets
Trademark assets	Indefinite	$	18,463	$	—	$	(3,609)	$	14,854

As of December 31, 2021, the balances of amortizable intangible assets were as follows:

	Weighted-Average Amortization Period	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
Patents	13.7 years	$	44,493	$	(5,664)	$	38,829
Intellectual Property	10.1 years	9,847		(1,408)		8,439
License Agreements	5.5 years	10,674		(2,448)		8,226
Total amortizable assets		$	65,014	$	(9,520)	$	55,494

Licenses are tied to product launches and do not begin amortizing until the product is launched to the market.

Trademarks are non-amortizing intangible assets and are recorded in Other intangible assets on the condensed consolidated balance sheets.

During the three months ended September 30, 2022, management determined that a triggering event occurred, indicating that it was more likely than not the fair value of the trademark assets is less than the carrying value. As such, the company completed a quantitative analysis whereby we determined the fair value of the trademark asset associated with our ApiFix acquisition was below the carrying value. The primary reason for the impairment is the lower forecasted revenue of our ApiFix product than previously expected and the subsequent impact to the discounted cash flow model utilized to calculate the fair value. We recorded a $3,609 impairment charge in the three months ended September 30, 2022 to reduce the carrying amount of the intangible asset to its estimated fair value. Following the impairment, the newly calculated fair value becomes the new accounting basis and carrying value of the trademark. No impairment charges were recorded in any other period presented. The following table represents the significant unobservable inputs utilized in the calculation of estimated fair value associated with the ApiFix trademark asset:

	September 30, 2022
Discount rate	28.0	%
Estimated royalty rate	5.0	%
Long term growth rate	3.0	%

Changes in the carrying amount of trademark assets for the nine months ended September 30, 2022 were as follows:

	Total
Trademark assets at January 1, 2022	$	14,268
MD Ortho Acquisition	2,410
Pega Medical Acquisition	3,040
Trademark impairment	(3,609)
Foreign currency translation impact	(1,255)
Trademark assets at September 30, 2022	$	14,854