Acquisition-Related Amortization and Remeasurement

6 Months Ended

Jun. 30, 2021

Acquisition Related Amortization And Remeasurement [Abstract]

Acquisition-Related Amortization and Remeasurement

12. Acquisition-related amortization and remeasurement

Acquisition-related amortization and remeasurement consists of (i) amortization related to intangible assets acquired through business combinations or asset acquisitions, (ii) the remeasurement of any related contingent consideration arrangement, and (iii) recognized costs associated with acquired in-process research and development (“IPR&D”) assets, which are recognized immediately upon acquisition. Components of acquisition-related amortization and remeasurement are as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
(U.S. Dollars, in thousands)	2021			2020		2021			2020
Changes in fair value of contingent consideration	$	(1,575	)	$	2,100	$	(75	)	$	(6,900	)
Amortization of acquired intangibles		1,969			1,578		3,938			2,996
Acquired IPR&D		500			—		1,500			—
Total	$	894		$	3,678	$	5,363		$	(3,904	)

On April 7, 2021, the Company entered into an Exclusive License and Distribution Agreement (the “License Agreement”) with IGEA S.p.A (“IGEA”), an Italian manufacturer and distributor of bone and cartilage stimulation systems. As consideration for the License Agreement, the Company has agreed to pay up to $4.0 million, with certain payments contingent upon reaching an FDA milestone. Of this amount, $0.5 million was paid in the second quarter of 2021, which was recognized as acquired IPR&D costs. The License Agreement also includes certain minimum purchase requirements.