Fair value measurements and investments (Tables)
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9 Months Ended |
Sep. 30, 2024 |
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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September 30, 2024 |
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December 31, 2023 |
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(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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(Unaudited) |
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Assets |
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Neo Medical convertible loan agreement |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
6,760 |
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Neo Medical preferred equity securities |
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— |
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7,803 |
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— |
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7,803 |
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4,951 |
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Other investments |
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— |
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— |
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— |
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— |
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1,309 |
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Total |
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$ |
— |
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$ |
7,803 |
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$ |
— |
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$ |
7,803 |
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$ |
13,020 |
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Liabilities |
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Lattus contingent consideration |
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$ |
— |
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$ |
— |
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$ |
(14,710 |
) |
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$ |
(14,710 |
) |
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$ |
(8,500 |
) |
Deferred compensation plan |
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— |
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(1,709 |
) |
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— |
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(1,709 |
) |
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(1,674 |
) |
Total |
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$ |
— |
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$ |
(1,709 |
) |
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$ |
(14,710 |
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$ |
(16,419 |
) |
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$ |
(10,174 |
) |
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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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2024 |
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2023 |
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Fair value of Neo Medical preferred equity securities at January 1 |
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$ |
4,951 |
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$ |
6,084 |
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Conversion of loan into preferred equity securities |
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8,224 |
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— |
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Foreign currency remeasurement recognized in other income (expense), net |
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— |
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— |
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Unrealized loss recognized in other expense, net |
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(5,372 |
) |
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— |
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Fair value of Neo Medical preferred equity securities at September 30 |
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$ |
7,803 |
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$ |
6,084 |
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Cumulative unrealized gain (loss) on Neo Medical preferred equity securities |
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$ |
(6,092 |
) |
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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 Lattus 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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2024 |
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2023 |
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Lattus contingent consideration estimated fair value at January 1 |
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$ |
8,500 |
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$ |
— |
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Contingent consideration assumed in the Merger |
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— |
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11,200 |
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Increase (decrease) in fair value recognized in acquisition-related amortization and remeasurement |
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6,210 |
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(2,100 |
) |
Lattus contingent consideration estimated fair value at September 30 |
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$ |
14,710 |
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$ |
9,100 |
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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 |
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(Unaudited, U.S. Dollars, in thousands) |
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2024 |
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2023 |
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Fair value of Neo Medical Convertible Loan at January 1 |
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$ |
6,760 |
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$ |
7,140 |
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Gains (losses) recorded for the period |
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Recognized in other comprehensive income |
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1,671 |
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|
109 |
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Interest recognized in interest income, net |
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162 |
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367 |
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Foreign currency remeasurement recognized in other income (expense), net |
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(602 |
) |
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54 |
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Reversal of expected credit loss recognized in other income (expense), net |
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260 |
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— |
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Conversion into preferred equity securities |
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(8,224 |
) |
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— |
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Realized foreign currency loss recognized in other income (expense), net |
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(27 |
) |
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— |
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Fair value of Neo Medical Convertible Loan at September 30 |
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$ |
— |
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$ |
7,670 |
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Contractual value of Neo Medical Convertible Loan at September 30 |
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$ |
— |
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$ |
6,328 |
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Allowance for credit loss recognized in other income (expense), net |
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— |
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— |
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Amortized cost basis of Neo Medical Convertible Loan at September 30 |
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$ |
— |
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$ |
6,328 |
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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 September 30, 2024:
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(Unaudited, U.S. Dollars, in thousands) |
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Fair Value as of September 30, 2024 |
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Unobservable inputs |
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Estimate |
Lattus Contingent Consideration |
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$ |
14,710 |
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Counterparty discount rates |
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8.6% - 9.1% |
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Revenue risk-adjusted discount rates |
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6.7% - 7.7% |
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