| Composition of Certain Financial Statement Captions |
NOTE 5 COMPOSITION OF CERTAIN FINANCIAL STATEMENT CAPTIONS
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June 30, |
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December 31, |
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(In thousands) |
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2025 |
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2024 |
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Accounts receivable, net: |
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Accounts receivable |
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$ |
101,043 |
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$ |
119,284 |
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Less: allowance for credit losses |
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(1,667 |
) |
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(1,267 |
) |
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$ |
99,376 |
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$ |
118,017 |
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Inventories, net: |
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Consumable supplies |
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$ |
14,284 |
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$ |
15,488 |
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Finished products |
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42,201 |
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32,310 |
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Work in-process |
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2,545 |
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2,355 |
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Raw materials |
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11,512 |
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9,418 |
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Less: inventory reserve |
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(4,197 |
) |
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(2,774 |
) |
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$ |
66,345 |
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$ |
56,797 |
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Other current assets and prepaid expenses: |
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Escrow receivable |
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$ |
24,390 |
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$ |
23,750 |
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Taxes recoverable |
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8,337 |
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8,266 |
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Prepaid expenses |
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11,026 |
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6,785 |
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Prepaid insurance |
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4,178 |
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3,818 |
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Other receivables |
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2,474 |
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2,015 |
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Other |
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8,478 |
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10,705 |
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$ |
58,883 |
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$ |
55,339 |
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Intangible assets, net: |
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Customer relationships |
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$ |
206,480 |
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$ |
255,430 |
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Technologies |
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814,733 |
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806,858 |
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Trade names |
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49,770 |
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49,726 |
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Covenants not to compete |
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12,926 |
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12,906 |
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Licenses |
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6,423 |
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6,316 |
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Product registrations |
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6,751 |
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6,172 |
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Other |
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8,614 |
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5,729 |
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Less: accumulated amortization |
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(549,709 |
) |
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(526,524 |
) |
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$ |
555,988 |
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$ |
616,613 |
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Accrued expenses: |
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Employee benefits and severance |
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$ |
32,563 |
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$ |
34,167 |
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Clinical trials |
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6,956 |
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6,104 |
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Commitments and contingencies |
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5,436 |
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9,850 |
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Accrued interest |
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5,512 |
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8,313 |
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Gross to net provision |
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5,347 |
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6,920 |
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Inventory received but not invoiced |
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1,962 |
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2,146 |
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Finance leases short-term |
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1,566 |
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1,679 |
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Professional fees |
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1,587 |
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2,521 |
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Taxes payable |
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9,605 |
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22,275 |
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Royalties |
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|
762 |
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|
563 |
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Commissions |
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1,577 |
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1,434 |
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Other |
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17,682 |
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|
22,385 |
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$ |
90,555 |
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$ |
118,357 |
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Other long-term liabilities: |
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Employee severance |
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$ |
9,904 |
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$ |
14,269 |
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Mortgages and other debts payable |
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2,773 |
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3,002 |
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Finance leases long-term |
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3,689 |
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4,064 |
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Other |
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11,441 |
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11,503 |
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$ |
27,807 |
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$ |
32,838 |
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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, 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. Changes in value of the intangible assets and goodwill during the six months ended June 30, 2025 and 2024 were primarily due to foreign currency fluctuations between the Chilean Peso, and the Euro against the U.S. dollar. The following table summarizes the changes in Goodwill by reporting unit during the six months ended June 30, 2025.
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2025 |
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(In thousands) |
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Gross
goodwill at
January 1,
2025 |
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Cumulative
impairment
at
January 1 |
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Acquisitions,
dispositions
and other |
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Foreign
exchange
and other |
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Balance at June 30, 2025 |
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Pharmaceuticals |
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CURNA |
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$ |
4,827 |
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$ |
(4,827 |
) |
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$ |
— |
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$ |
— |
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$ |
— |
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Rayaldee |
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79,433 |
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— |
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— |
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10,099 |
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89,532 |
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FineTech |
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11,698 |
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(11,698 |
) |
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— |
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— |
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— |
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ModeX |
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80,260 |
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— |
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— |
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— |
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80,260 |
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OPKO Biologics |
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139,784 |
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— |
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— |
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(0 |
) |
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139,784 |
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OPKO Chile |
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3,220 |
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— |
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— |
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|
205 |
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3,425 |
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OPKO Health Europe |
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6,848 |
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— |
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— |
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|
894 |
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7,742 |
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OPKO Mexico |
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|
100 |
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(100 |
) |
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— |
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— |
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— |
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Transition Therapeutics |
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3,421 |
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(3,421 |
) |
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— |
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— |
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— |
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Diagnostics |
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BioReference |
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219,707 |
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— |
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(56,265 |
) |
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— |
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|
163,442 |
|
OPKO Diagnostics |
|
|
17,977 |
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(17,977 |
) |
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— |
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— |
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— |
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$ |
567,275 |
|
|
$ |
(38,023 |
) |
|
$ |
(56,265 |
) |
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$ |
11,198 |
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$ |
484,185 |
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