In January 2025, the Company announced its plan to discontinue its M6-C artificial cervical disc and M6-L artificial lumbar disc product lines (together, the "M6 artificial discs" or "M6 product lines") in order to allocate associated resources and investment to more profitable growth opportunities. In accordance with ASC 205, Presentation of Financial Statements, the Company determined that the discontinuation of the M6 artificial discs does not represent a strategic shift that will have a major effect on our consolidated financial results. Therefore, any related financial results were not reported as discontinued operations. Although the M6 product lines did not meet the criteria to be considered a discontinued operation, these assets were determined to meet the criteria to be classified as held for sale as of March 31, 2025, as the Company expects to complete the sale of these assets before December 31, 2025.

Financial results for the Company’s M6 product lines continue to be presented within the Company’s consolidated statements of operations and comprehensive loss. A summary of impairment charges recognized during the three months ended March 31, 2025, and the associated financial statement lines in which such costs are recognized is shown in the table below. All such charges are included within the Company’s Global Spine reporting segment.


(Unaudited, U.S. Dollars, in thousands)	Financial Statement Line Item	Three Months Ended March 31,2025
Inventory reserve charges	Cost of sales	$	8,703
Impairment of property, plant, and equipment	Operating expenses		6,226
Impairment of developed technology intangible asset	Acquisition-related amortization, impairment, and remeasurement		14,097
Loss on M6 inventories and long-lived assets held for sale		$	29,026

In addition, significant classes of assets and liabilities associated with the M6 product lines, which is classified as held for sale, are shown in the table below:


(Unaudited, U.S. Dollars, in thousands)	March 31, 2025
Inventories	$	3,929
Property, plant, and equipment, net		—
Intangible assets, net		—
Net carrying value of disposal group	$	3,929