Fair value measurements and investments (Tables)
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3 Months Ended |
Mar. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] |
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Schedule of Financial Assets and Liabilities Recorded at Fair Value on Recurring Basis |
The fair value measurements of the Company’s financial assets and liabilities measured on a recurring basis were as follows:
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March 31, 2023 |
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December 31, 2022 |
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(Unaudited, U.S. Dollars, in thousands) |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
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Total |
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Assets |
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Neo Medical convertible loan agreements |
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$ |
— |
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$ |
— |
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$ |
7,180 |
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$ |
7,180 |
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$ |
7,140 |
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Neo Medical preferred equity securities |
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— |
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6,084 |
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— |
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6,084 |
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6,084 |
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Bone Biologics equity securities |
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— |
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— |
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— |
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— |
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— |
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Other investments |
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— |
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— |
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1,829 |
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1,829 |
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1,726 |
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Total |
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$ |
— |
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$ |
6,084 |
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$ |
9,009 |
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$ |
15,093 |
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$ |
14,950 |
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Liabilities |
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Lattus contingent consideration |
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$ |
— |
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$ |
— |
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(11,500 |
) |
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$ |
(11,500 |
) |
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$ |
— |
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Spinal Kinetics contingent consideration |
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— |
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— |
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— |
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— |
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— |
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Deferred compensation plan |
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— |
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(1,415 |
) |
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— |
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(1,415 |
) |
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(1,515 |
) |
Total |
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$ |
— |
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$ |
(1,415 |
) |
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$ |
(11,500 |
) |
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$ |
(12,915 |
) |
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$ |
(1,515 |
) |
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Schedule of Reconciliation of Investments in Equity Securities |
The table below presents a reconciliation of the beginning and ending balances of the Company’s investment in Neo Medical preferred equity securities:
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(Unaudited, U.S. Dollars, in thousands) |
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2023 |
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2022 |
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Fair value of Neo Medical preferred equity securities at January 1 |
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$ |
6,084 |
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$ |
5,413 |
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Conversion of loan into preferred equity securities |
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— |
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671 |
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Fair value of Neo Medical preferred equity securities at March 31 |
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6,084 |
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6,084 |
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Cumulative unrealized gain on Neo Medical preferred equity securities |
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413 |
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413 |
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Schedule of Reconciliation For Contingent Consideration Measured At Fair Value Using Significant Unobservable Inputs |
The following table provides a reconciliation of the beginning and ending balances for the Spinal Kinetics contingent consideration measured at estimated fair value using significant unobservable inputs (Level 3):
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(Unaudited, U.S. Dollars, in thousands) |
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2023 |
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2022 |
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Spinal Kinetics contingent consideration estimated fair value at January 1 |
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$ |
— |
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$ |
17,200 |
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Decrease in fair value recognized in acquisition-related amortization and remeasurement |
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— |
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(5,500 |
) |
Spinal Kinetics contingent consideration estimated fair value at March 31 |
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$ |
— |
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$ |
11,700 |
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Fair Value, Inputs, Level 3 [Member] |
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] |
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Schedule of Reconciliation For Convertible Loans Measured At Fair Value Using Significant Unobservable Inputs |
The following table provides a reconciliation of the beginning and ending balances of the Convertible Loans, measured at fair value using significant unobservable inputs (Level 3):
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(Unaudited, U.S. Dollars, in thousands) |
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2023 |
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2022 |
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Fair value of Neo Medical Convertible Loans at January 1 |
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$ |
7,140 |
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$ |
7,148 |
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Interest recognized in interest income, net |
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116 |
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112 |
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Foreign currency remeasurement recognized in other expense, net |
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61 |
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(69 |
) |
Unrealized loss recognized in other comprehensive loss |
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(137 |
) |
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(740 |
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Conversion of Second Convertible Loan into preferred equity securities |
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— |
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(671 |
) |
Fair value of Neo Medical Convertible Loans at March 31 |
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7,180 |
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5,780 |
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Amortized cost basis of Neo Medical Convertible Loans at March 31 |
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6,084 |
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5,581 |
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Schedule of Changes in Valuation of Securities |
The following table provides quantitative information related to certain key assumptions utilized within the valuation as of March 31, 2023:
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(Unaudited, U.S. Dollars, in thousands) |
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Fair Value as of March 31, 2023 |
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Unobservable inputs |
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Estimate |
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Neo Medical Convertible Loan |
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$ |
7,180 |
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Cost of equity discount rate |
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18.0 |
% |
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Estimated equity volatility |
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77.5 |
% |
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