Fair value measurements and investments (Tables)

3 Months Ended

Mar. 31, 2021

Fair Value Measurements And Investment Disclosure [Abstract]

Schedule of Financial Assets and Liabilities Recorded at Fair Value on Recurring Basis

The fair value of the Company’s financial assets and liabilities measured on a recurring basis were as follows:

	March 31, 2021											December 31, 2020
(U.S. Dollars, in thousands)	Level 1		Level 2			Level 3			Total			Total
Assets
Neo Medical preferred equity securities	$	—	$	5,000		$	—		$	5,000		$	5,000
Neo Medical convertible loan agreement		—		—			6,200			6,200			7,160
Bone Biologics equity securities		—		—			—			—			—
Total	$	—	$	5,000		$	6,200		$	11,200		$	12,160
Liabilities
Spinal Kinetics contingent consideration	$	—	$	—		$	(36,900	)	$	(36,900	)	$	(35,400	)
Other contingent consideration		—		—			(375	)		(375	)		(375	)
Deferred compensation plan		—		(1,381	)		—			(1,381	)		(1,441	)
Total	$	—	$	(1,381	)	$	(37,275	)	$	(38,656	)	$	(37,216	)

Schedule of Reconciliation For Convertible Loan Measured At Fair Value Using Significant Unobservable Inputs

The following table provides a reconciliation of the beginning and ending balances of the Convertible Loan, measured at fair value using significant unobservable inputs (Level 3):

(U.S. Dollars, in thousands)	2021			2020
Fair value of Neo Medical Convertible Loan at January 1	$	7,160		$	—
Interest recognized in interest income, net		96			—
Foreign currency remeasurement recognized in other expense, net		(330	)		—
Unrealized loss recognized in other comprehensive loss		(726	)		—
Fair value of Neo Medical Convertible Loan at March 31		6,200			—
Amortized cost basis of Neo Medical Convertible Loan at March 31		5,045			—

Schedule of Changes in Valuation of Securities

The following table provides quantitative information related to certain key assumptions utilized within the valuation as of March 31, 2021:

(U.S. Dollars, in thousands)	Fair Value as of March 31, 2021		Unobservable inputs	Estimate
Neo Medical Convertible Loan	$	6,200	Cost of equity discount rate		21.9	%
			Implied volatility		92.7	%

The following table provides a range of key assumptions used within the valuation as of March 31, 2021.

(U.S. Dollars, in thousands)	Fair Value as of March 31, 2021		Valuation Technique	Unobservable inputs	Range
Spinal Kinetics contingent consideration	$	36,900	Discounted cash flow	Revenue discount rate	8.1% - 8.2%
				Payment discount rate	4.2% - 4.3%
				Projected year of payment	2021 - 2022

Schedule of Reconciliation For Contingent Consideration Measured At Fair Value Using Significant Unobservable Inputs

The following table provides a reconciliation of the beginning and ending balances for the Spinal Kinetics contingent consideration measured at estimated fair value using significant unobservable inputs (Level 3):

(U.S. Dollars, in thousands)	2021		2020
Spinal Kinetics contingent consideration estimated fair value at January 1	$	35,400	$	42,700
Increase (decrease) in fair value recognized in acquisition-related amortization and remeasurement		1,500		(9,000	)
Spinal Kinetics contingent consideration estimated fair value at March 31	$	36,900	$	33,700