SUBSEQUENT EVENTS |
6 Months Ended |
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Jun. 30, 2025 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Acquisitions On July 11, 2025, Boston O&P entered into a purchase agreement to acquire certain of the assets, including inventory, related to orthotic and prosthetic device clinics located in New York. Boston O&P paid $5,410 in total consideration for the assets, which was comprised of $4,285 of cash and a promissory note in the original principal amount of $1,125 payable in eight quarterly installments with interest at the rate of five percent per annum. The sellers may also be entitled to an earnout up to $1,125, if gross revenues exceed a threshold in the first year after closing. The sellers promissory note may be subject to adjustments if net sales targets are not achieved. On July 30, 2025, OP EU B.V., a wholly-owned Netherlands based subsidiary of the Company, entered into a stock purchase agreement related to orthotic and prosthetic device clinics located in Ireland. This location is complimentary to OrthoPediatrics’ strong implant business presence in one of the country’s largest pediatric hospitals and provides opportunities to expand to additional Ireland based clinics and beyond across the European region. The Company paid 1,500 Euro in total consideration for the stock, which was comprised of 1,200 Euro of cash and a promissory note in the original principal amount of 300 Euro payable in two annual installments with interest at the rate of four percent per annum. The sellers promissory note may be subject to adjustments if net sales targets are not achieved. On August 3, 2025, OrthoPediatrics EU Limited, a wholly-owned UK based subsidiary of the Company, entered into a stock purchase agreement related to a designer and manufacturer of Clubfoot bracing located in the UK. This acquisition will expand the Company's specialty bracing product offering and represent a new territory. The Company paid 3,400 GBP in total consideration for the stock, which was comprised of 2,300 GBP of cash and a promissory note in the original principal amount of 1,100 GBP payable in ten quarterly installments with interest at the rate of five percent per annum. Enactment of Federal Tax Reform On July 4th, 2025, the President of the United States signed into law significant federal tax legislation, H.R.1 (the “Tax Reform Act of 2025”). The legislation includes numerous changes to U.S. corporate income tax law, including but not limited to: permanent 100% bonus depreciation for qualified property, immediate expensing of domestic research and experimental expenditures, modifications to the limitation on business interest expense, increased Section 179 expensing limits, changes to the international tax regime, and expanded limitations on the deductibility of executive compensation under IRC Section 162(m). Most provisions are effective for tax years beginning after December 31, 2024, with certain transition rules and exceptions. The Company is currently evaluating the impact of the Tax Reform Act of 2025 on its consolidated financial statements. The effects of the new law, including remeasurement of deferred tax assets and liabilities and changes to current and future tax expense, will be reflected in the period of enactment and in future periods as additional guidance is issued and the Company completes its analysis.
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