Accounts receivable, net are amounts billed and currently due from customers. The Company records the amounts due net of allowance for credit losses. Collection of the consideration that the Company expects to receive typically occurs within 30 to 90 days of billing. The Company applies the practical expedient for contracts with payment terms of one year or less which does not consider the effects of the time value of money. Occasionally, the Company enters into payment agreements with patients that allow payment terms beyond one year. In those cases, the financing component is not deemed significant to the contract.

(a)Other receivables of $350 attributable to CartiHeal was reclassified to current assets attributable to discontinued operations within the December 31, 2022 consolidated balance sheets. Refer to Note 3. Acquisitions and divestitures and Note 14. Discontinued operations for further details regarding the deconsolidation of CartiHeal.

Due to the short-term nature of the Company’s receivables, the estimate of expected credit losses is based on aging of the account receivable balances. The allowance is adjusted on a specific identification basis for certain accounts as well as pooling of accounts with similar characteristics. The Company has a diverse customer base with no single customer representing ten percent or more of sales. The Company has one customer representing approximately 15.2% of the accounts receivable balance as of July 1, 2023. Historically, the Company’s reserves have been adequate to cover credit losses.


	Three Months Ended				Six Months Ended
	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
Beginning balance	$	(7,401)	$	(4,254)	$	(7,022)	$	(3,402)
Benefit (provision) for expected credit losses	439		(1,353)		(640)		(2,505)
Write-offs	768		456		1,054		825
Recoveries	(479)		(141)		(963)		(210)
Disposition	(468)		—		430		—
Ending balance	$	(7,141)	$	(5,292)	$	(7,141)	$	(5,292)


	July 1, 2023		December 31, 2022
Raw materials and supplies(a)	$	26,438	$	19,133
Finished goods	72,347		67,484
Gross	98,785		86,617
Excess and obsolete reserves	(2,509)		(1,851)
	$	96,276	$	84,766

(a)Raw material inventory of $642 attributable to CartiHeal has been reclassified to current assets attributable to discontinued operations within the December 31, 2022 consolidated balance sheets. Refer to Note 3. Acquisitions and divestitures and Note 14. Discontinued operations for further details regarding the deconsolidation of CartiHeal.

(a)Prepaid and other current assets of $134 attributable to CartiHeal was reclassified to current assets attributable to discontinued operations within the December 31, 2022 balance sheet. Refer to Note 3. Acquisitions and divestitures and Note 14. Discontinued operations for further details regarding the deconsolidation of CartiHeal.


	July 1, 2023		December 31, 2022
Intellectual property(a)(b)	$	677,258	$	790,049
Distribution rights	61,325		61,325
Customer relationships(b)	57,950		67,450
IPR&D	5,500		5,500
Developed technology and other	13,998		13,998
Total carrying amount	816,031		938,322
Less accumulated amortization:
Intellectual property(a)(b)	(198,141)		(187,767)
Distribution rights	(46,810)		(44,319)
Customer relationships(b)	(57,950)		(58,842)
Developed technology and other	(6,899)		(6,276)
Total accumulated amortization	(309,800)		(297,204)
Intangible assets, net before currency translation	506,231		641,118
Currency translation	(1,008)		(1,267)
	$	505,223	$	639,851

(a)Intellectual property and accumulated depreciation attributable to CartiHeal totaling $410,200 and $11,327, respectively, were reclassified to long-term assets attributable to discontinued operations within the December 31, 2022 consolidated balance sheets. Refer to Note 3. Acquisitions and divestitures and Note 14. Discontinued operations for further details regarding the deconsolidation of CartiHeal.

(b)The Company recorded an impairment loss of $78,615 for the six months ended July 1, 2023 in the U.S. reporting segment of net intellectual property attributable to the TheraSkin and TheraGenesis products, which were sold in May 2023. The loss was recorded in impairment of assets within the consolidated condensed statements of operations and comprehensive loss. Refer to Refer to Note 3. Acquisitions and divestitures for further details regarding businesses held for sale.

Estimated amortization expense for intangibles subsequent to reclassifications, impairment and additions for the remainder of 2023 and for the years ended December 31, 2024 through 2027 is expected to be $13,814, $26,590, $23,922, $20,461 and $20,109, respectively.

Goodwill is evaluated for impairment annually or more frequently if events or changes in circumstances indicate that goodwill might be impaired. The Company assesses goodwill impairment by applying a quantitative impairment analysis comparing the carrying value of the Company’s reporting units to their respective fair values. A goodwill impairment exists if the carrying value of the reporting unit exceeds its fair value.

The Company has two reporting units and assesses impairment based upon qualitative factors and if necessary, quantitative factors. A reporting unit's fair value is determined using the income approach and discounted cash flow models by utilizing Level 3 inputs and assumptions such as future cash flows, discount rates, long-term growth rates, market value and income tax considerations. Specifically, the value of each reporting unit is determined on a stand-alone basis from the perspective of a market participant and represents the price estimated to be received in a sale of the reporting unit in an orderly transaction between market participants at the measurement date. The Company then reconciles the values of all reporting units to the market capitalization of the Company.

The Company’s goodwill resides within the International segment, of which $6,297 related to CartiHeal and was reclassified to long-term assets attributable to discontinued operations within the December 31, 2022 consolidated balance sheets. The amount was recorded in discontinued operations, net of tax on the consolidated condensed statements of operations for the six months ended July 1, 2023 as a result of CartiHeal’s deconsolidation. Refer to Note 3. Acquisitions and divestitures and Note 14. Discontinued operations for further details concerning the deconsolidation of CartiHeal.

On November 8, 2022, due to a significant decline in the Company’s Class A common stock price, circumstances became evident that a possible goodwill impairment existed as of the third quarter 2022 balance sheet date. The Company concluded that the carrying value of the U.S. reporting unit exceeded its fair value and recorded a non-cash goodwill impairment charge of $189,197 during the year ended December 31, 2022. There were no impairment losses or indicators of impairment during the six months ended July 1, 2023. There were also no accumulated impairment losses prior to the year ended December 31, 2022.


	July 1, 2023		December 31, 2022
Gross-to-net deductions	$	68,304	$	71,227
Bonus and commission	13,368		9,179
Compensation and benefits	9,080		11,428
Accrued interest	6,933		217
Income and other taxes	5,175		2,572
Other liabilities(a)	18,888		16,947
	$	121,748	$	111,570

(a)Other liabilities attributable to CartiHeal of $384 were reclassified into current liabilities attributable to discontinued operations within December 31, 2022 consolidated balance sheets. Refer to Note 3. Acquisitions and divestitures and Note 14. Discontinued operations for further details.