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Discontinued Operations
6 Months Ended
Jun. 30, 2019
Discontinued Operations And Disposal Groups [Abstract]  
Discontinued Operations

4. Discontinued Operations

In connection with the sale of the International Business, the Company entered into a product manufacture and supply agreement (the “Supply Agreement”) with Globus, pursuant to which the Company supplies to Globus certain of its implants and instruments (the “Products”), previously offered for sale by the Company in international markets at agreed-upon prices for a minimum term of three years, with the option for Globus to extend the term for up to two additional twelve month periods subject to Globus meeting specified purchase requirements. During the first quarter of 2019, Globus notified the Company that it will exercise the option to extend the agreement an additional twelve months through August 2020. In accordance with authoritative guidance, sales to Globus are reported under continuing operations as the Company has continuing involvement under the Supply Agreement.

The Company recorded $1.2 million in revenue and $1.2 million in cost of revenue from the Supply Agreement in continuing operations for the three months ended June 30, 2019, and $2.8 million in revenue and $2.6 million in cost of revenue for the six months ended June 30, 2019. Included in the results of continuing operations for the three months ended June 30, 2018 is $1.6 million in revenue and $1.5 million in cost of revenue from the Supply Agreement and $3.7 million in revenue and $3.5 million in cost of revenue for the six months ended June 30, 2018. Sales, general and administrative expense pertaining to discontinued operations on the Company’s condensed consolidated statements of operations were immaterial for the three and six months ended June 30, 2019 and 2018.