| Recently adopted accounting standards and recently issued accounting pronouncements |
Recently Issued Accounting Pronouncements
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Topic |
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Description of Guidance |
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Effective Date |
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Status of Company's Evaluation |
Disclosure Improvements - Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative (Accounting Standard Update "ASU" 2023-06) |
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Adds interim and annual disclosure requirements to a variety of subtopics in the Accounting Standards Codification, including those focusing on accounting changes, earnings per share, debt, and repurchase agreements. The guidance will be applied prospectively. The effective date will be the date when the SEC's removal of the related disclosure requirement becomes effective, with early adoption prohibited. |
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Various |
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The Company is currently evaluating the impact this ASU may have on its consolidated financial statements. |
Disaggregation of Income Statement Expenses (ASU 2024-03) |
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Improves financial reporting by requiring that public business entities disclose additional information about specific expense categories in the notes to the financial statements at interim and annual reporting periods. The amendments are to be applied prospectively to financial statements issued for reporting periods after the effective date or retrospectively to all prior periods presented in the financial statements. |
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January 1, 2027 |
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The Company is currently evaluating the impact this ASU may have on its consolidated financial statements. |
Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06) |
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Aligns the accounting for internal-use software with how software is developed to increase the operability of the recognition and capitalization of internal-use software costs in accordance with Subtopic 350-40. Early adoption is permitted as of the beginning of an annual reporting period. The guidance is to be applied prospectively to new software costs incurred as of the beginning of the adoption period for all projects, including in-process projects. |
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January 1, 2028 |
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The Company is currently evaluating the impact this ASU may have on its consolidated financial statements. |
Narrow-Scope Requirements for Interim Reporting (ASU 2025-11) |
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Clarifies interim disclosure requirements and applicability of Topic 270, Interim Reporting for events since the end of the last annual reporting period that have a material impact on the entity. Early adoption is permitted and the amendments are to be applied prospectively or retrospectively to any or all periods presented in the financial statements. |
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January 1, 2028 |
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The Company is currently evaluating the impact this ASU may have on its consolidated financial statements. |
Other recently issued ASUs, excluding those ASUs which have already been disclosed as adopted or described above, were assessed and determined not applicable, or are expected to have minimal impact on the Company's condensed consolidated financial statements.
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| Revenue Recognition |
Revenue recognition The Company has two reporting segments: Global Spine and Global Limb Reconstruction. Within the Global Spine reporting segment, there are two product categories: (i) Therapeutic Solutions (formerly Bone Growth Therapies), and (ii) Spinal Implants, Biologics, and Enabling Technologies. The tables below present net sales by product category and reporting segment:
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Three Months Ended September 30, |
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(Unaudited, U.S. Dollars, in thousands) |
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2026 |
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2025 |
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Change |
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Therapeutic Solutions |
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$ |
63,956 |
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$ |
61,211 |
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4.5 |
% |
Spinal Implants, Biologics, and Enabling Technologies |
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107,493 |
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110,852 |
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-3.0 |
% |
Global Spine |
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171,449 |
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172,063 |
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-0.4 |
% |
Global Limb Reconstruction |
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36,413 |
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33,571 |
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8.5 |
% |
Net sales |
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$ |
207,862 |
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$ |
205,634 |
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1.1 |
% |
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Nine Months Ended September 30, |
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(Unaudited, U.S. Dollars, in thousands) |
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2026 |
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2025 |
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Change |
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Therapeutic Solutions |
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$ |
185,882 |
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$ |
178,834 |
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3.9 |
% |
Spinal Implants, Biologics, and Enabling Technologies |
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322,662 |
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326,889 |
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-1.3 |
% |
Global Spine |
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508,544 |
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505,723 |
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0.6 |
% |
Global Limb Reconstruction |
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106,959 |
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96,678 |
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10.6 |
% |
Net sales |
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$ |
615,503 |
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$ |
602,401 |
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2.2 |
% |
Product sales and marketing service fees The table below presents product sales and marketing service fees, which are both components of net sales:
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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(Unaudited, U.S. Dollars, in thousands) |
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2026 |
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2025 |
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2026 |
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2025 |
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Product sales |
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$ |
196,990 |
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$ |
193,813 |
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$ |
583,085 |
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$ |
566,841 |
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Marketing service fees |
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10,872 |
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11,821 |
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32,418 |
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35,560 |
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Net sales |
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$ |
207,862 |
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$ |
205,634 |
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$ |
615,503 |
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$ |
602,401 |
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Marketing service fees are received from MTF Biologics ("MTF") based on total sales of biologic tissues and relate solely to the Biologics product category within the Global Spine reporting segment, whereas product sales primarily consist of the sale of Therapeutic Solutions, Spinal Implants, non-MTF sourced Biologics, Enabling Technologies, and Global Limb Reconstruction products. As MTF is the single supplier for certain allografts in the Company's Biologics portfolio, which are derived from deceased donors for their bone grafts and living donors for their amnion grafts, any event or circumstance that would impact MTF's continued access to donors or the Company's ability to market these tissues may adversely impact the Company's financial results. Accounts receivable and related allowances The following table provides the detail of changes in the Company's allowance for expected credit losses for the three and nine months ended September 30, 2026, and 2025:
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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(Unaudited, U.S. Dollars, in thousands) |
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2026 |
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2025 |
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2026 |
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2025 |
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Allowance for expected credit losses beginning balance |
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$ |
10,563 |
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$ |
8,909 |
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$ |
8,308 |
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$ |
7,418 |
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Current period provision for expected credit losses |
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1,242 |
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629 |
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4,833 |
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2,466 |
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Write-offs charged against the allowance and other |
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(176 |
) |
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(112 |
) |
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(1,435 |
) |
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(870 |
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Effect of changes in foreign exchange rates |
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(46 |
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(13 |
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(123 |
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399 |
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Allowance for expected credit losses ending balance |
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$ |
11,583 |
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$ |
9,413 |
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$ |
11,583 |
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$ |
9,413 |
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