Balance Sheet Details

12 Months Ended

Dec. 31, 2024

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Details

4. Balance Sheet Details

Inventories

Inventories consist of the following (in thousands):

	December 31,
	2024		2023
Raw materials	$	19,378	$	23,394
Work-in-process		—		950
Finished goods		155,886		112,498
Inventories	$	175,264	$	136,842

Property and Equipment, net

Property and equipment, net consist of the following (in thousands, except as indicated):

	Useful Life	December 31,
	(in years)	2024			2023
Surgical instruments	4	$	283,597		$	224,357
Machinery and equipment	7		12,710			11,633
Computer equipment	3		32,082			5,778
Office furniture and equipment	5		6,759			6,225
Leasehold improvements	various		4,321			3,986
Construction in progress	n/a		541			24,732
			340,010			276,711
Less: accumulated depreciation			(183,616	)		(126,876	)
Property and equipment, net		$	156,394		$	149,835

Total depreciation expense was $62.1 million, $40.9 million and $31.0 million for the years ended December 31, 2024, 2023 and 2022 respectively. At December 31, 2024 and 2023, assets recorded under financing leases of $0.8 million and $1.1 million, respectively, were included in the property and equipment, net, balance. Amortization of assets under financing leases is included in depreciation expense.

Goodwill

The change in the carrying amount of goodwill during the year ended December 31, 2024 included the following (in thousands):

December 31, 2023	$	73,003
Foreign currency fluctuation		(2,027	)
December 31, 2024	$	70,976

Intangible Assets, net

Intangible assets, net consist of the following (in thousands, except as indicated):

	Remaining Weighted Avg. Useful Life	Gross		Accumulated			Intangible
December 31, 2024:	(in years)	Amount		Amortization			Assets, net
Developed product technology	5	$	102,412	$	(38,055	)	$	64,357
Internally developed software	3		4,283		(1,515	)		2,768
Trademarks and trade names	7		5,267		(1,991	)		3,276
Customer relationships	2		13,996		(10,094	)		3,902
Distribution network	–		2,413		(2,410	)		3
Total amortized intangible assets			128,371		(54,065	)		74,306
Software in development	n/a		12,927		—			12,927
In-process research and development	n/a		6,285		—			6,285
Total intangible assets		$	147,583	$	(54,065	)	$	93,518
		.
	Remaining Weighted Avg. Useful Life	Gross		Accumulated			Intangible
December 31, 2023:	(in years)	Amount		Amortization			Assets, net
Developed product technology	6	$	106,782	$	(26,560	)	$	80,222
Trademarks and trade names	7		5,588		(1,561	)		4,027
Customer relationships	3		14,504		(8,692	)		5,812
Distribution network	1		2,413		(2,242	)		171
Total amortized intangible assets			129,287		(39,055	)		90,232
Software in development	n/a		7,934		—			7,934
In-process research and development	n/a		4,285		—			4,285
Total intangible assets		$	141,506	$	(39,055	)	$	102,451

During the year ended December 31, 2023, in connection with the Company's acquisition of Valence, as further described in Note 2, the Company recorded additions to developed product technology and goodwill in the amount of $26.9 million and $24.6 million, respectively. The intangible asset acquired will be amortized on a straight-line basis over a useful life of seven years.

Total amortization expense was $16.4 million, $15.2 million and $10.2 million for the years ended December 31, 2024, 2023 and 2022, respectively. Software in development assets begin amortizing when the projects are complete and the assets are ready for their intended use. In-process research and development assets and software in development assets begin amortizing when the related products reach full commercial launch.

Future amortization expense related to intangible assets as of December 31, 2024 is as follows (in thousands):

Year Ending December 31,
2025	$	15,561
2026		15,573
2027		13,351
2028		11,166
2029		9,640
Thereafter		9,015
Total	$	74,306

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consist of the following (in thousands):

	December 31,
	2024		2023
Payroll and payroll related	$	29,103	$	29,207
Commissions and sales milestones		25,778		21,414
Royalties		6,703		7,968
Accrued legal expenses		5,587		10,994
Taxes and fees		2,505		1,985
Inventory in-transit		2,418		2,251
Admin fees and rebates		2,300		2,732
Interest		1,402		1,753
Professional fees		1,353		1,384
Other		4,317		8,024
Total accrued expenses	$	81,466	$	87,712

Other Long-Term Liabilities

Other long-term liabilities consist of the following (in thousands):

	December 31,
	2024		2023
Income tax-related liabilities	$	5,077	$	5,838
Contract liabilities		3,131		2,561
Royalties		1,532		1,065
Other		1,684		1,739
Other long-term liabilities	$	11,423	$	11,203