Revenue recognition and accounts receivable

3 Months Ended

Mar. 31, 2025

Revenue Recognition And Accounts Receivable [Abstract]

Revenue recognition and accounts receivable

9. Revenue recognition and accounts receivable

Revenue Recognition

The Company has two reporting segments: Global Spine and Global Orthopedics. Within the Global Spine reporting segment, there are two product categories: (i) Bone Growth Therapies, and (ii) Spinal Implants, Biologics, and Enabling Technologies.

The table below presents net sales by product category by reporting segment:

	Three Months Ended March 31,
(Unaudited, U.S. Dollars, in thousands)	2025		2024		Change
Bone Growth Therapies	$	55,050	$	52,477		4.9	%
Spinal Implants, Biologics, and Enabling Technologies		108,786		108,816		0.0	%
Global Spine		163,836		161,293		1.6	%
Global Orthopedics		29,810		27,315		9.1	%
Net sales	$	193,646	$	188,608		2.7	%

Product Sales and Marketing Service Fees

The table below presents product sales and marketing service fees, which are both components of net sales:

	Three Months Ended March 31,
(Unaudited, U.S. Dollars, in thousands)	2025		2024
Product sales	$	181,633	$	175,831
Marketing service fees		12,013		12,777
Net sales	$	193,646	$	188,608

Product sales primarily consist of the sale of bone growth therapies devices, spinal implants, certain biologics, enabling technologies, and orthopedics products. Marketing service fees are received from MTF Biologics ("MTF") based on total sales of biologics tissues sourced from MTF and relate solely to the Global Spine reporting segment. The Company partners with MTF to provide certain allograft solutions for various spine, orthopedic and other bone repair needs, with this partnership allowing the Company to exclusively market certain biologic offerings.

Accounts receivable and related allowances

The following table provides a detail of changes in the Company’s allowance for expected credit losses for the three months ended March 31, 2025 and 2024:

	Three Months Ended March 31,
(Unaudited, U.S. Dollars, in thousands)	2025			2024
Allowance for expected credit losses beginning balance	$	7,418		$	7,130
Current period provision for expected credit losses		1,058			1,376
Write-offs charged against the allowance and other		(11	)		(19	)
Effect of changes in foreign exchange rates		137			(89	)
Allowance for expected credit losses ending balance	$	8,602		$	8,398