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Note 6 - Composition of Certain Financial Statement Captions

12 Months Ended

Dec. 31, 2023

Supplemental Balance Sheet Disclosures [Text Block]

Note 6 Composition of Certain Financial Statement Captions

	For the years ended December 31,
(In thousands)	2023			2022
Accounts receivable, net
Accounts receivable	$	125,379		$	131,474
Less: allowance for doubtful accounts		(2,000	)		(4,162	)
	$	123,379		$	127,312
Inventories, net
Finished products	$	35,582		$	37,139
Consumable supplies		25,864			31,275
Work in-process		1,731			2,449
Raw materials		8,981			6,771
Less: inventory reserve		(6,461	)		(3,574	)
	$	65,697		$	74,060
Other current assets and prepaid expenses
Prepaid supplies	$	6,177		$	7,918
Prepaid insurance		3,848			4,496
Taxes recoverable		4,211			8,191
Other receivables		2,610			13,105
Other		7,673			6,252
	$	24,519		$	39,962
Property, plant and equipment, net:
Machinery, medical and other equipment	$	138,776		$	136,048
Leasehold improvements		28,058			25,516
Furniture and fixtures		12,046			11,271
Building		18,885			18,314
Software		14,410			14,218
Automobiles and aircraft		12,701			12,808
Land		2,425			2,317
Construction in process		5,255			4,793
Less: accumulated depreciation		(157,127	)		(142,406	)
	$	75,429		$	82,879
Intangible assets, net:
Technologies	$	831,509		$	826,282
Customer relationships		315,799			314,854
Trade names		49,758			49,752
Covenants not to compete		12,916			12,911
Licenses		6,205			5,988
Product registrations		6,790			6,831
Other		6,000			5,861
Less: accumulated amortization		(488,694	)		(398,959	)
	$	740,283		$	823,520

	For the years ended December 31,
(In thousands)	2023		2022
Accrued expenses:
Employee benefits	$	28,952	$	33,765
Gross to net provision		9,420		6,477
Inventory received but not invoiced		1,653		7,830
Taxes payable		1,384		5,351
Commitments and contingencies		8,088		4,295
Clinical trials		7,624		4,700
Finance leases short-term		2,827		2,809
Royalties		1,544		2,323
Professional fees		3,470		1,820
Commissions		1,822		1,471
Contingent consideration		—		62
Contract liabilities		—		—
Other		23,302		27,366
	$	90,086	$	98,269
Other long-term liabilities:
Mortgages and other debts payable	$	7,709	$	9,098
Finance leases long-term		7,274		7,089
Contingent consideration		—		974
Contract liabilities		7		138
Other		12,199		10,072
	$	27,189	$	27,371

Our intangible assets and goodwill relate principally to our completed acquisitions of OPKO Renal, OPKO Biologics, EirGen, BioReference and ModeX. We amortize intangible assets with definite lives on a straight-line basis over their estimated useful lives. The estimated useful lives by asset class are as follows: technologies - 7-17 years; customer relationships - 5-20 years; product registrations - 7-10 years; covenants not to compete - 5 years; trade names - 5-10 years; and other 9-13 years. We do not anticipate capitalizing the cost of product registration renewals, rather we expect to expense these costs, as incurred. Our goodwill is not tax deductible for income tax purposes in any jurisdiction in which we operate.

During the year ended December 31, 2022, upon the approval of NGENLA (Somatrogon (hGH-CTP)) in Europe and Japan, we reclassified $590.2 million of IPR&D related to Somatrogon (hGH-CTP) from IPR&D in our Consolidated Balance Sheet. The assets will be amortized on a straight-line basis over their estimated useful life of approximately 12 years. Other changes in value of the intangible assets and goodwill on December 31, 2023 and 2022, were primarily due to foreign currency fluctuations between the Chilean Peso, and the Euro against the U.S. dollar.

The following table reflects the changes in the allowance for doubtful accounts, provision for inventory reserve and tax valuation allowance accounts:

				Charged
	Beginning			to						Charged			Ending
(In thousands)	balance			expense			Written-off			to other			balance
2023
Allowance for doubtful accounts	$	(4,162	)		(247	)		2,408			—		$	(2,000	)
Inventory reserve	$	(3,574	)		(8,100	)		5,213			—		$	(6,461	)
Tax valuation allowance	$	(279,212	)		(11,128	)		—			(4,223	)	$	(294,563	)
2022
Allowance for doubtful accounts	$	(1,839	)		(304	)		(2,019	)		—		$	(4,162	)
Inventory reserve	$	(4,779	)		(4,059	)		5,264			—		$	(3,574	)
Tax valuation allowance	$	(260,397	)		(24,579	)		—			5,764		$	(279,212	)

The following table summarizes the changes in Goodwill by reporting unit during the years ended December 31, 2023 and 2022.

	2023													2022
(In thousands)	Gross goodwill at January 1		Cumulative impairment at January 1			Acquisitions, dispositions and other			Foreign exchange and other			Balance at December 31st		Gross goodwill at January 1		Cumulative impairment at January 1			Acquisitions, dispositions and other			Foreign exchange and other			Balance at December 31st
Pharmaceuticals
CURNA	$	4,827	$	(4,827	)	$	—		$	—		$	—	$	4,827	$	(4,827	)	$	—		$	—		$	—
Rayaldee		81,786		—			—			2,485			84,273		86,554		—			—			(4,768	)		81,786
FineTech		11,698		(11,698	)		—			—			—		11,698		(11,698	)		—			—			—
ModeX		80,432		—			(172	)		—			80,260		—		—			80,432			—			80,432
OPKO Biologics		139,784		—			—			—			139,784		139,784		—			—			—			139,784
OPKO Chile		3,767		—			—			(125	)		3,642		3,760		—			—			7			3,767
OPKO Health Europe		7,057		—			—			219			7,276		7,478		—			—			(421	)		7,057
OPKO Mexico		100		(100	)		—			—			—		100		(100	)		—			—			—
Transition Therapeutics		3,421		(3,421	)		—			—			—		3,421		(3,421	)		—			—			—

Diagnostics
BioReference		283,025		—			—			—			283,025		434,809		—			(151,784	)		—			283,025
OPKO Diagnostics		17,977		(17,977	)		—			—			—		17,977		(17,977	)		—			—			—
	$	633,874	$	(38,023	)	$	(172	)	$	2,579		$	598,260	$	710,408	$	(38,023	)	$	(71,352	)	$	(5,182	)	$	595,851