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Contingent Earn-Out Consideration
6 Months Ended
Jun. 30, 2023
Business Combinations [Abstract]  
Contingent Earn-Out Consideration

NOTE 5. CONTINGENT EARN-OUT CONSIDERATION

The following table provides a reconciliation of our Level 3 earn-out liabilities for the six months ended June 30, 2023:

 

Balance, December 31, 2022

$

3,640

 

Achieved milestones reclassified to accrued expenses

 

(2,000

)

Change in fair value of earn-out liabilities

 

320

 

Balance, June 30, 2023

$

1,960

 

 

The current portion of contingent earn-out liability is included in Other-current liabilities and the non-current portion is included in Other long-term liabilities on the Condensed Consolidated Balance Sheets. As of June 30, 2023, the current portion was $1,420 and the non-current portion was $540. During the three and six months ended June 30, 2023, we reassessed the estimate of the earn-out liabilities which resulted in a net increase of $240 and $320, recorded in Other expense within the Condensed Consolidated Statement of Operations and Comprehensive Loss for the three and six months ended June 30, 2023, respectively.

As of December 31, 2022 three project milestones associated with the Disior acquisition and two project milestones associated with the Additive Orthopaedics acquisition were included in Accrued expenses on the Consolidated Balance Sheet totaling $5,000 and $1,500, respectively. During the six months ended June 30, 2023, $500 was paid in cash for one of the Additive Orthopaedics milestones and $3,750 of the $5,000 accrued for the Disior milestones was paid in cash. As of June 30, 2023, the remaining $1,250 related to the Disior milestones and the remaining $1,000 related to the Additive Orthopaedics milestone were included in Accrued expenses on the Condensed Consolidated Balance Sheet. The total $2,250 accrual is included as restricted cash within the Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2023. Additionally, during the second quarter of 2023, the Company completed the fourth project milestone related to the Disior acquisition totaling $2,000 which is also included in Accrued expenses on the Condensed Consolidated Balance Sheet as of June 30, 2023. For additional information on the Additive Orthopaedics acquisition refer to Note 3 to our Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.‌