Balance Sheets Details

12 Months Ended

Dec. 31, 2021

Balance Sheet Related Disclosures [Abstract]

Balance Sheets Details

4. Balance Sheet Details

Accounts Receivable, net

Accounts receivable, net consist of the following (in thousands):

	December 31,
	2021			2020
Accounts receivable	$	44,200		$	23,887
Allowance for doubtful accounts		(2,307	)		(360	)
Accounts receivable, net	$	41,893		$	23,527

Inventories

Inventories consist of the following (in thousands):

	December 31,
	2021		2020
Raw materials	$	14,671	$	6,064
Work-in-process		5,712		1,982
Finished goods		71,320		37,955
Inventories	$	91,703	$	46,001

Property and Equipment, net

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

	Useful lives		December 31,
	(in years)		2021			2020
Surgical instruments		4	$	130,432		$	76,669
Machinery and equipment		7		11,092			6,562
Computer equipment		3		5,694			4,206
Office furniture and equipment		5		3,861			1,380
Leasehold improvements	various			1,754			1,761
Construction in progress	n/a			7,292			2,738
				160,125			93,316
Less: accumulated depreciation				(72,724	)		(56,646	)
Property and equipment, net			$	87,401		$	36,670

Total depreciation expense was $20.3 million and $9.2 million for the years ended December 31, 2021 and 2020, respectively. At December 31, 2021 and 2020, assets recorded under capital leases of $0.4 million and $0.1 million, respectively, were included in the machinery and equipment balance. Amortization of assets under capital leases is included in depreciation expense.

Intangible Assets, net

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

	Remaining Avg. Useful lives		Gross		Accumulated			Intangible
December 31, 2021:	(in years)		Amount		Amortization			Assets, net
Developed product technology		12	$	74,543	$	(5,768	)	$	68,775
Trademarks and trade names		10		5,732		(477	)		5,255
Customer relationships		5		14,732		(5,264	)		9,468
Distribution network		3		2,413		(1,840	)		573
In-process research and development	n/a			1,203		—			1,203
Total			$	98,623	$	(13,349	)	$	85,274
	Remaining Avg. Useful lives		Gross		Accumulated			Intangible
December 31, 2020:	(in years)		Amount		Amortization			Assets, net
Developed product technology		12	$	35,376	$	(23,056	)	$	12,320
License agreements		1		5,536		(965	)		4,571
Trademarks and trade names		—		792		(119	)		673
Customer relationships		3		7,458		(3,968	)		3,490
Distribution network		2		4,027		(1,639	)		2,388
In-process research and development	n/a			1,278		—			1,278
Total			$	54,467	$	(29,747	)	$	24,720

During the year ended December 31, 2021, in connection with the expiration and termination of the Supply Agreement with Globus Medical, defined below, the Company wrote off $32.6 million in fully amortized intangible assets. During the year ended December 31, 2021, in connection with the Company’s acquisition of EOS, as further described in Note 3, the Company recorded additions to definite-lived intangible assets in the amount of $71.5 million.

Total expense related to amortization of intangible assets was $6.4 million and $1.8 million for the years ended December 31, 2021 and 2020, respectively. In-process research and development intangibles begin amortizing when the relevant products reach full commercial launch.

Future amortization expense related to intangible assets as of December 31, 2021 is as follows (in thousands):

Year Ending December 31,
2022	$	9,436
2023		9,436
2024		9,333
2025		8,748
2026		8,748
Thereafter		39,573
Total	$	85,274

Goodwill

The change in the carrying amount of goodwill during the year ended December 31, 2021 included the following (in thousands):

December 31, 2020	$	13,897
Additions		27,841
Foreign currency fluctuation		(2,049	)
December 31, 2021	$	39,689

There were no changes in the carrying amount of goodwill during the year ended December 31, 2020.

Accrued Expenses and Other Current Liabilities

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

	December 31,
	2021		2020
Payroll and payroll related	$	18,449	$	13,552
Commissions and sales milestones		12,420		7,038
Professional fees		4,684		3,551
Litigation settlement obligation		4,400		4,000
Royalties		3,466		2,293
Other taxes payable		3,004		248
Inventory in-transit		2,089		1,771
Administration fees		1,698		442
Interest		1,045		619
Other		4,294		1,750
Total accrued expenses and other current liabilities	$	55,549	$	35,264

Other Long-Term Liabilities

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

	December 31,
	2021		2020
Royalties	$	5,833	$	1,678
Litigation settlement obligation - long-term portion		3,587		7,634
Income tax-related liabilities		1,522		373
Contract liability		2,897		—
Other		3,222		1,703
Other long-term liabilities	$	17,061	$	11,388