Alphatec (ATEC) 10-Q 5 May 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	Apr. 29, 2022
Cover [Abstract]
Entity Registrant Name	ALPHATEC HOLDINGS, INC.
Entity Central Index Key	0001350653
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Trading Symbol	ATEC
Document Period End Date	Mar. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus (Q1,Q2,Q3,FY)	Q1
Entity Current Reporting Status	Yes
Amendment Flag	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		101,759,170
Entity Shell Company	false
Entity File Number	000-52024
Entity Tax Identification Number	20-2463898
Entity Address, Address Line One	1950 Camino Vida Roble
Entity Address, City or Town	Carlsbad
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92008
City Area Code	760
Local Phone Number	431-9286
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	DE
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common stock, par value $.0001 per share
Security Exchange Name	NASDAQ

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 151,812	$ 187,248
Accounts receivable, net of allowances of $1,412 and $2,307, respectively	40,438	41,893
Inventories	99,043	91,703
Prepaid expenses and other current assets	12,085	10,313
Total current assets	303,378	331,157
Property and equipment, net	96,185	87,401
Right-of-use asset	24,661	25,283
Goodwill	40,831	39,689
Intangible assets, net	82,090	85,274
Other assets	1,544	3,249
Total assets	548,689	572,053
Current liabilities:
Accounts payable	34,036	25,737
Accrued expenses and other current liabilities	61,152	55,549
Contract liability	14,893	15,255
Short-term debt	1,789	342
Current portion of operating lease liability	4,034	4,212
Total current liabilities	115,904	101,095
Long-term debt	326,639	326,489
Operating lease liability, less current portion	23,934	24,383
Other long-term liabilities	16,625	17,061
Commitments and contingencies (Note 10)
Redeemable preferred stock, $0.0001 par value; 20,000 shares authorized at March 31, 2022 and December 31, 2021; 3,319 shares issued and outstanding at March 31, 2022 and December 31, 2021	23,603	23,603
Stockholders' equity:
Common stock, $0.0001 par value; 200,000 authorized; 101,293 shares issued and 101,178 shares outstanding at March 31, 2022; and 99,627 shares issued and 99,537 shares outstanding at December 31, 2021	10	10
Treasury stock, 1,808 shares, at cost	(25,097)	(25,097)
Additional paid-in capital	899,414	892,828
Accumulated other comprehensive deficit	(7,174)	(5,994)
Accumulated deficit	(825,169)	(782,325)
Total stockholders’ equity	41,984	79,422
Total liabilities and stockholders’ equity	548,689	572,053
Series A Convertible Preferred Stock
Stockholders' equity:
Series A convertible preferred stock, $0.0001 par value; 15 shares authorized, and 0 shares issued and outstanding at March 31, 2022 and December 31, 2021

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Accounts receivable, net of allowances	$ 1,412	$ 2,307
Redeemable preferred stock, par value (dollars per share)	$ 0.0001	$ 0.0001
Redeemable preferred stock, shares authorized	20,000,000	20,000,000
Redeemable preferred stock, shares issued	3,319,000	3,319,000
Redeemable preferred stock, shares outstanding	3,319,000	3,319,000
Common stock, par value (dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	101,293,000	99,627,000
Common stock, shares outstanding	101,178,000	99,537,000
Treasury stock, shares	1,808,000	1,808,000
Series A Convertible Preferred Stock
Preferred Stock, Par or Stated Value Per Share	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	15	15
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenue:
Revenue	$ 70,933	$ 44,121
Cost of sales	21,717	12,263
Gross profit	49,216	31,858
Operating expenses:
Research and development	9,722	5,801
Sales, general and administrative	69,471	40,426
Litigation-related expenses	7,532	3,335
Amortization of acquired intangible assets	2,230	172
Transaction-related expenses	120	1,012
Restructuring expenses	1,370	158
Total operating expenses	90,445	50,904
Operating loss	(41,229)	(19,046)
Interest and other expense, net:
Interest expense, net	(1,456)	(1,938)
Other expense, net	(30)	(1,889)
Total interest and other expense, net	(1,486)	(3,827)
Net loss before taxes	(42,715)	(22,873)
Income tax provision	129	30
Net loss	$ (42,844)	$ (22,903)
Net loss per share, basic and diluted	$ (0.43)	$ (0.26)
Weighted average shares outstanding, basic and diluted	99,978	87,223
Products and Services
Revenue:
Revenue	$ 70,918	$ 43,716
International Supply Agreement
Revenue:
Revenue	$ 15	$ 405

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (42,844)	$ (22,903)
Foreign currency translation adjustments	(1,180)	(3,052)
Comprehensive loss	$ (44,024)	$ (25,955)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional paid-in capital	Shareholder note receivable	Treasury stock	Accumulated other comprehensive income (loss)	Accumulated deficit
Balance at Dec. 31, 2020	$ 129,880	$ 8	$ 770,764	$ (4,000)	$ (97)	$ 1,204	$ (637,999)
Balance, shares at Dec. 31, 2020		82,104
Stock-based compensation	3,889		3,889
Distributor equity incentives	129		129
Common stock issued for warrant exercises	756		756
Common stock issued for warrant exercises, shares		2,019
Common stock issued for stock option exercises	210		210
Common stock issued for stock option exercises, shares		69
Common stock issued for vesting of restricted stock units, net of shares withheld for tax liability	(1,717)		(1,717)
Common stock issued for vesting of restricted stock units, net of shares withheld for tax liability, shares		379
Shareholder note receivable	1,100			1,100
Foreign currency translation adjustments	(3,052)					(3,052)
Net loss	(22,903)						(22,903)
Balance at Mar. 31, 2021	108,292	$ 8	774,031	$ (2,900)	(97)	(1,848)	(660,902)
Balance, shares at Mar. 31, 2021		84,571
Balance at Dec. 31, 2021	79,422	$ 10	892,828		(25,097)	(5,994)	(782,325)
Balance, shares at Dec. 31, 2021		99,537
Stock-based compensation	7,730		7,730
Distributor equity incentives	2,178		2,178
Distributor equity incentives, shares		199
Common stock issued for warrant exercises	1,289		1,289
Common stock issued for warrant exercises, shares		551
Common stock issued for stock option exercises	140		140
Common stock issued for stock option exercises, shares		39
Common stock issued for vesting of restricted stock units, net of shares withheld for tax liability	(4,751)		(4,751)
Common stock issued for vesting of restricted stock units, net of shares withheld for tax liability, shares		852
Foreign currency translation adjustments	(1,180)					(1,180)
Net loss	(42,844)						(42,844)
Balance at Mar. 31, 2022	$ 41,984	$ 10	$ 899,414		$ (25,097)	$ (7,174)	$ (825,169)
Balance, shares at Mar. 31, 2022		101,178

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating activities:
Net loss	$ (42,844)	$ (22,903)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	9,315	3,850
Stock-based compensation	10,184	4,474
Amortization of debt discount and debt issuance costs	489	640
Amortization of right-of-use assets	563	1,022
Write-down for excess and obsolete inventories	1,706	2,096
Loss on disposal of assets	474	369
Other	(243)	299
Changes in operating assets and liabilities:
Accounts receivable	1,674	(1,891)
Inventories	(9,154)	(13,471)
Prepaid expenses and other current assets	(1,848)	1,367
Other assets	(119)
Accounts payable	7,637	2,160
Accrued expenses and other current liabilities	(1,268)	2,958
Lease liability	(562)	31
Other long-term liabilities	(716)	395
Net cash used in operating activities	(24,712)	(18,604)
Investing activities:
Purchase of property and equipment	(13,257)	(15,202)
Purchase of intangible assets	(150)
Purchase of debt and equity securities		(9,081)
Settlement of forward contract		(1,711)
Net cash used in investing activities	(13,407)	(25,994)
Financing activities:
Proceeds from common stock offering		131,838
Net cash received (paid) from common stock exercises	1,301	(1,048)
Proceeds from financed insurance	1,617
Other	(221)	(14)
Net cash provided by financing activities	2,697	130,776
Effect of exchange rate changes on cash	(14)	(2,806)
Net (decrease) increase in cash and cash equivalents	(35,436)	83,372
Cash and cash equivalents at beginning of period	187,248	107,765
Cash and cash equivalents at end of period	151,812	191,137
Supplemental disclosure of cash flow information:
Cash paid for interest	1,252	1,783
Cash paid for income taxes		21
Supplemental disclosure of noncash activities:
Financed insurance	1,617
Purchases of property and equipment in accounts payable and accrued expenses	$ 4,667	8,030
Recognition of lease liability		$ 21,505

The Company and Basis of Presen

The Company and Basis of Presentation	3 Months Ended
	Mar. 31, 2022
Organization Consolidation And Presentation Of Financial Statements [Abstract]
The Company and Basis of Presentation	1. The Company and Basis of Presentation The Company Alphatec Holdings, Inc. (the “Company”), through its wholly owned subsidiaries, Alphatec Spine, Inc. (“Alphatec Spine”), SafeOp Surgical, Inc. (“SafeOp”), and EOS imaging S.A. (“EOS”), is a medical technology company that designs, develops, and markets technology for the treatment of spinal disorders associated with disease and degeneration, congenital deformities, and trauma. The Company markets its products in the United States of America and internationally via a network of independent distributors and direct sales representatives. Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. The Company translates the financial statements of its foreign subsidiaries using end-of-period exchange rates for assets and liabilities and average exchange rates during each reporting period for results of operations. All intercompany balances and transactions have been eliminated during consolidation. The accompanying condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Pursuant to these rules and regulations, the Company has condensed or omitted certain information and footnotes it normally includes in its annual consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The unaudited interim condensed consolidated financial statements reflect all adjustments, including normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the financial position and results of operations for the periods presented. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2021, which are included in the Company’s Annual Report on Form 10-K that was filed with the SEC. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022, or any other future periods.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of property and equipment, goodwill, intangible assets, allowances for doubtful accounts, the valuation of share-based liabilities, deferred tax assets, inventory, stock-based compensation, revenues, restructuring liabilities, income tax uncertainties, and other contingencies. Fair Value Measurements T he carrying amount of financial instruments consisting of cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses, and short-term debt included in the Company’s condensed consolidated financial statements are reasonable estimates of fair value due to their short maturities. Authoritative guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active; or other inputs that can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Excess and Obsolete Inventory Most of the Company’s inventory is comprised of finished goods, which is primarily produced by third-party suppliers. Specialized implants, fixation products, biologics, and disposables are determined by utilizing a standard cost method that includes capitalized variances which approximates the weighted average cost. Imaging equipment and related parts are valued at weighted average cost. Inventories are stated at the lower of cost or net realizable value. The Company reviews the components of its inventory on a periodic basis for excess and obsolescence and adjusts inventory to its net realizable value as necessary. The Company records a lower of cost or net realizable value (“LCNRV”) inventory reserve for estimated excess and obsolete inventory based upon its expected use of inventory on hand. The Company’s inventory, which consists primarily of specialized implants, fixation products, biologics, and disposables is at risk of obsolescence due to the need to maintain substantial levels of inventory. In order to market its products effectively and meet the demands of interoperative product placement, the Company maintains and provides surgeons and hospitals with a variety of inventory products and sizes. For each surgery, fewer than all components will be consumed. The need to maintain and provide a wide variety of inventory causes inventory to be held that is not likely to be used. The Company’s estimates and assumptions for excess and obsolete inventory are reviewed and updated on a quarterly basis. The estimates and assumptions are determined primarily based on current usage of inventory and the age of inventory quantities on hand. Additionally, the Company considers recent experience to develop assumptions about future demand for its products, while considering market conditions, product life cycles and new product launches. Increases in the LCNRV reserve for excess and obsolete inventory result in a corresponding charge to cost of sales. Revenue Recognition In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Revenue from Contracts with Customers (“Topic 606”), the Company recognizes revenue from sales of products and services when the customer obtains control of the promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. The principles in Topic 606 are applied using the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Sales are derived primarily from the sale of spinal implant products to hospitals and medical centers through direct sales representatives and independent distributors, and with the acquisition of EOS, includes imaging equipment and related services. Revenue is recognized when obligations under the terms of a contract with customers are satisfied, which occurs with the transfer of control of products to customers, either upon shipment of the product or delivery of the product to the customer depending on the shipping terms, or when the products are used in a surgical procedure (implanted in a patient). Revenue from the sale of imaging equipment is recognized as each distinct performance obligation is fulfilled and control transfers to the customer, beginning with shipment or delivery, depending on the terms. Revenue from other distinct performance obligations, such as maintenance on imaging equipment and other imaging related services, is recognized in the period the service is performed, and makes up less than 10% of the Company’s total revenue. Revenue is measured based on the amount of consideration expected to be received in exchange for the transfer of the goods or services specified in the contract with each customer. In certain cases, the Company does offer the ability for customers to lease its imaging equipment primarily on a non-sales type basis, but such arrangements are immaterial to total revenue in the periods presented. The Company generally does not allow returns of products that have been delivered. Costs incurred by the Company associated with sales contracts with customers are deferred over the performance obligation period and recognized in the same period as the related revenue, except for contracts that complete within one year or less, in which case the associated costs are expensed as incurred. Payment terms for sales to customers may vary but are commensurate with the general business practices in the country of sale. To the extent that the transaction price includes variable consideration, such as discounts, rebates, and customer payment penalties, the Company estimates the amount of variable consideration that should be included in the transaction price. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information that is reasonably available, including historical, current, and forecasted information and whether, in the Company’s judgement, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. The Company records a contract liability, or deferred revenue, when it has an obligation to provide a product or service to the customer and payment is received in advance of its performance. When the Company sells a product or service with a future performance obligation, revenue is deferred on the unfulfilled performance obligation and recognized over the related performance period. Generally, the Company does not have observable evidence of the standalone selling price related to its future service obligations; therefore, the Company estimates the selling price using an expected cost plus a margin approach. The transaction price is allocated using the relative standalone selling price method. The use of alternative estimates could result in a different amount of revenue deferral. Recent Accounting Pronouncements In August 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The guidance requires application of ASC 606, “Revenue from Contracts with Customers” to recognize and measure contract assets and contract liabilities acquired in a business combination. ASU No. 2021-08 adds an exception to the general recognition and measurement principle in ASC 805 where assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from contracts with customers, are measured at fair value on the acquisition date. Under the new guidance, the acquirer will recognize acquired contract assets and contract liabilities as if the acquirer had originated the contract. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, with early adoption permitted. The Company does not intend to early adopt the standard and is in the process of assessing the impact, if any, on its condensed consolidated financial statements and related disclosures.

Business Combination

Business Combination	3 Months Ended
	Mar. 31, 2022
Business Combinations [Abstract]
Business Combination	3. Business Combination The Company recognizes assets acquired, liabilities assumed, and any noncontrolling interest at fair value at the date of acquisition. On December 16, 2020, the Company entered into the Tender Offer Agreement with EOS, pursuant to which the Company agreed to commence a public tender offer (the “Offer”) to purchase all of the issued and outstanding ordinary shares, nominal value €0.01 per share (collectively, the “EOS Shares”), for a cash offer of €2.45 per EOS Share, and outstanding convertible bonds of EOS (“OCEANEs”) for a cash offer of €7.01 per OCEANE, which included accrued but unpaid interest. On May 13, 2021 (the “Change in Control Date”), the Company substantially completed the Offer, pursuant to which the Company purchased 59% of the issued and outstanding EOS Shares and 53% of the OCEANEs for $66.5 million in cash pursuant to the Offer. In addition, prior to the Change in Control Date, the Company had also acquired 30% of the issued and outstanding EOS Shares and 4% of the OCEANEs on the open market for $25.0 million in cash. After the Change in Control Date, the Company held a controlling financial interest in EOS representing 89% of issued and outstanding EOS Shares and 57% of OCEANEs, equal to approximately 80% of the capital and voting rights of EOS on a fully diluted basis. The Offer was reopened on May 17, 2021 to purchase the remaining EOS Shares for $8.5 million, ultimately resulting in the acquisition of 100% of EOS Shares and 57% of the OCEANEs as of June 2, 2021. As of June 2, 2021, the total cash paid to acquire 100% of the EOS Shares and 57% of the OCEANEs was $100.0 million. EOS, which now operates as a wholly owned subsidiary of the Company, is a global medical device company that designs, develops and markets innovative, low dose 2D/3D full body and biplanar weight-bearing imaging, rapid 3D modeling of EOS patient X-ray images, web-based patient-specific surgical planning, and integration of surgical plan into the operating room that collectively bridge the entire spectrum of care from imaging to post-operative assessment capabilities for orthopedic surgery. The Company plans to integrate this technology into its procedural approach to spine surgery to better inform and better achieve spinal alignment objectives in surgery. The Company is still in the process of finalizing the purchase price allocation given the timing of the acquisition and the size and scope of the assets and liabilities subject to valuation. While the Company does not expect material changes in the outcome of the valuation, certain assumptions and findings that were in place at the date of acquisition may result in changes in the purchase price allocation. During the three months ended March 31, 2022, the Company recorded a purchase accounting adjustment primarily related to deferred tax assets, which resulted in a $1.6 million increase to goodwill. The allocation of the purchase price to the assets acquired and liabilities assumed based on their fair values were as follows: (in thousands) As of May 13, 2021 Cash paid for purchase of EOS shares at Change in Control Date $ 46,908 Cash paid for purchase of OCEANEs at Change in Control Date 19,620 Total cash paid at Change in Control Date 66,528 Fair value of investment in EOS Shares held prior to Change in Control Date 23,549 Fair value of investment in OCEANEs held prior to Change in Control Date 1,477 Total fair value of investment in EOS held prior to Change in Control Date 25,026 Fair value of noncontrolling interest acquired after Change in Control Date 8,454 $ 100,008 Cash and cash equivalents $ 16,778 Accounts receivable 9,083 Inventory 26,681 Other current assets 4,422 Property, plant and equipment, net 1,650 Deferred tax assets 536 Right-of-use asset 4,341 Goodwill 29,469 Definite-lived intangible assets: Developed technology 56,000 Customer relationships 9,500 Trade names 6,000 Other noncurrent assets 395 Contract liabilities 21,196 Long-term debt 15,297 Other liabilities assumed 28,354 Total identifiable net assets $ 100,008 The purchase price, including cash paid at the Change in Control Date, the fair value of the investment held prior to the Change in Control Date, and the fair value of the noncontrolling interest acquired after the Change in Control Date, exceeded the fair value of the net tangible and identifiable intangible assets acquired as part of the acquisition. As a result, the Company recorded goodwill in connection with the acquisition. Goodwill primarily consists of expected revenue synergies resulting from the combination of product portfolios and cost synergies related to elimination of redundant facilities and functions associated with the combined entity. Goodwill recognized in this transaction is not deductible for tax purposes. The intangible assets acquired will be amortized on a straight-line basis over useful lives of ten years, seven years and ten years for technology-based, customer-related, and trade name related intangible assets, respectively. The estimated fair values of the intangible assets acquired were primarily determined using the income approach based on significant inputs that were not observable in the market. The following table presents the unaudited pro forma results for the three months ended March 31, 2021, which combines the historical results of operations of the Company and its wholly owned subsidiaries as though the companies had been combined as of January 1, 2020 and therefore many of the non-recurring business combination adjustments would have been included in the year ended December 31, 2020 by nature of such adjustments, instead of the periods presented. The pro forma information is presented for informational purposes only and is not indicative of the results of operations that may have been achieved if the acquisition had taken place at such time. The comparable period for the three months ended March 31, 2021 includes adjustments directly attributable to the business combination, including $1.8 million in amortization charges for acquired intangible assets, a $0.5 million adjustment related to the increased fair value of acquired inventory and $2.3 million in acquisition related expenses. The unaudited pro forma results include IFRS to U.S. GAAP adjustments for EOS historical results and adjustments for accounting policy alignment, which were materially similar to the Company. Any differences in accounting policies were adjusted to reflect the accounting policies of the Company in the unaudited pro forma results presented. Three Months Ended March 31, (in thousands, except per share amounts) 2022 2021 Total revenue $ 70,933 $ 50,986 Net loss (42,844 ) (26,707 ) Net loss per share, basic and diluted $ (0.43 ) $ (0.31 )

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	4. Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis included the following as of March 31, 2022, and December 31, 2021 (in thousands): March 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 120,023 — — $ 120,023 Total cash equivalents $ 120,023 — — $ 120,023 Liability classified equity award $ — — 2,328 $ 2,328 December 31, 2021 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 140,010 — — $ 140,010 Total cash equivalents $ 140,010 — — $ 140,010 Liability classified equity award $ — — 2,052 $ 2,052 The Company did not have any transfers of assets and liabilities between the levels of the fair value measurement hierarchy during the periods presented. T he Company issued a liability classified equity award to one of its executive officers. The award vests in 2023 subject to continued service and a specific market condition. As the award will be settled in cash, it is classified as a liability within Level 3 of the fair value hierarchy as the Company is using a probability-weighted income approach, utilizing significant unobservable inputs including the probability of achieving the specifi c market condition with the valuation updated at each reporting period. The full fair value of the award was $ million as of March 31, 2022 and is being recognized ratably as the underlying service period is provided. The following table provides a reconciliation of liabilities measured at fair value using significant unobservable inputs (Level 3) for the three months ended March 31, 2022 (in thousands): Level 3 Liabilities Balance at December 31, 2021 $ 2,052 Straight-line recognition of liability classified equity award 196 Change in fair value measurement 80 Balance at March 31, 2022 $ 2,328 Fair Value of Long-term Debt The fair value, based on a quoted market price (Level 1), of the Company’s outstanding Senior Convertible Notes due 2026 was approximately $308.2 million at March 31, 2022 and approximately $308.1 million at December 31, 2021. The fair value, based on a quoted market price (Level 1), of the Company’s outstanding OCEANE was approximately $13.9 million at March 31, 2022 and approximately $14.1 million at December 31, 2021. See Note 9 for further information.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
Inventories	5. Inventories Inventories reported at the lower of cost or net realizable value consist of the following (in thousands): March 31, 2022 December 31, 2021 Raw materials $ 15,792 $ 14,671 Work-in-process 6,220 5,712 Finished goods 77,031 71,320 Inventories $ 99,043 $ 91,703

Property and Equipment, net

Property and Equipment, net	3 Months Ended
	Mar. 31, 2022
Property Plant And Equipment [Abstract]
Property and Equipment, net	6. Property and Equipment, net Property and equipment, net consist of the following (in thousands, except as indicated): Useful lives (in years) March 31, 2022 December 31, 2021 Surgical instruments 4 $ 140,585 $ 130,432 Machinery and equipment 7 11,135 11,092 Computer equipment 3 5,796 5,694 Office furniture and equipment 5 3,880 3,861 Leasehold improvements various 1,748 1,754 Construction in progress n/a 12,063 7,292 175,207 160,125 Less: accumulated depreciation and amortization (79,022 ) (72,724 ) Property and equipment, net $ 96,185 $ 87,401 Total depreciation expense was $7.1 million and $3.4 million for the three months ended March 31, 2022, and 2021, respectively. Construction in progress is not depreciated until placed in service. Property and equipment includes assets under financing leases and the related amortization of assets under financing leases is included in depreciation expense.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2022
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	7. Goodwill and Intangible Assets Goodwill The change in the carrying amount of goodwill during the period ended March 31, 2022 included the following (in thousands): December 31, 2021 $ 39,689 Purchase price allocation adjustment 1,628 Foreign currency fluctuation (486 ) March 31, 2022 $ 40,831 Intangible assets, net Intangible assets, net consist of the following (in thousands, except as indicated): Remaining Avg. Useful lives Gross Accumulated Intangible March 31, 2022: (in years) Amount Amortization Assets, net Developed product technology 12 $ 73,665 $ (7,303 ) $ 66,362 Trademarks and trade names 10 5,638 (609 ) 5,029 Customer relationships 5 14,583 (5,685 ) 8,898 Distribution network 3 2,413 (1,890 ) 523 In-process research and development n/a 1,278 — 1,278 Total $ 97,577 $ (15,487 ) $ 82,090 Remaining Avg. Useful lives Gross Accumulated Intangible December 31, 2021: (in years) Amount Amortization Assets, net Developed product technology 12 $ 74,543 $ (5,768 ) $ 68,775 Trademarks and trade names 10 5,732 (477 ) 5,255 Customer relationships 5 14,732 (5,264 ) 9,468 Distribution network 3 2,413 (1,840 ) 573 In-process research and development n/a 1,203 — 1,203 Total $ 98,623 $ (13,349 ) $ 85,274 Total amortization expense attributed to intangible assets was $2.2 million and $0.4 million for the three months ended March 31, 2022, and 2021, respectively. In-process research and development assets begin amortizing when the relevant products reach full commercial launch. Future amortization expense related to intangible assets is as follows (in thousands): Year Ending December 31, Remainder of 2022 $ 6,734 2023 8,957 2024 8,854 2025 8,269 2026 8,269 Thereafter 41,007 $ 82,090

Contract Liability

Contract Liability	3 Months Ended
	Mar. 31, 2022
Contract With Customer Liability [Abstract]
Contract Liability	8. Contract Liability Contract liability consists of the following (in thousands): March 31, 2022 December 31, 2021 Contract liability $ 17,427 $ 18,151 Less: Non-current portion of contract liability (2,534 ) (2,896 ) Current portion of contract liability $ 14,893 $ 15,255 The non-current contract liability balance is included in other long-term liabilities on the condensed consolidated balance sheets. Contract liability relates to contracts with customers for which partial or complete payment of the transaction price has been received from the customer and the related obligations must be completed before revenue can be recognized. These amounts primarily related to undelivered equipment, services, or maintenance agreements. The Company recognized $4.3 million of revenue from its contract liabilities during the three months ended March 31, 2022. The opening and closing balances of the Company’s contract liability are as follows (in thousands): Balance at December 31, 2021 $ 18,151 Payments received 3,592 Revenue recognized (4,316 ) Balance at March 31, 2022 $ 17,427

Debt

Debt	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Debt	9. Debt 0.75% Senior Convertible Notes due 2026 In August 2021, the Company issued $316.3 million aggregate principal amount of unsecured Senior Convertible Notes (the "2026 Notes") with a stated interest rate of 0.75% and a maturity date of August 1, 2026 Interest on the 2026 Notes is payable semi-annually in arrears on February 1 and August 1 of each year, beginning on February 1, 2022. the repayment of the outstanding term loan with Squadron Medical Finance Solutions, LLC (“Squadron Medical”) and outstanding obligation under the Inventory Financing Agreement, as below. The 2026 Notes are convertible into shares of the Company’s common stock based upon an initial conversion rate of 54.5316 shares of the Company’s common stock per $1,000 principal amount of 2026 Notes (equivalent to an initial conversion price of approximately $18.34 per share). The conversion rate will be subject to adjustment upon the occurrence of certain specified events, including certain distributions and dividends to all or substantially all of the holders of the Company’s common stock. Based on the terms of the 2026 Notes, when a conversion notice is received, the Company has the option to pay or deliver cash, shares of the Company’s common stock, or a combination thereof. Holders of the Convertible Notes have the right to convert their notes in certain circumstances and during specified periods. Prior to the close of business on the business day immediately preceding February 2, 2026, holders may convert all or a portion of their 2026 Notes only under the following circumstances: (1) during any calendar quarter (and only during such calendar quarter) commencing after the calendar quarter ending on September 30, 2021, if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the 5 consecutive business days immediately after any 10 consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of 2026 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. As of March 31, 2022, none of the conditions permitting the holders of the 2026 Notes to convert have been met. The 2026 Notes are classified as long-term debt on the condensed consolidated balances sheet as of March 31, 2022. The 2026 Notes are redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after August 6, 2024 and on or before the 40th scheduled trading day immediately before the maturity date, at a cash redemption price equal to the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest, if any, but only if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price for a specified period of time. In addition, calling any note for redemption will constitute a “make-whole fundamental change” with respect to that note, in which case the conversion rate applicable to the conversion of that note will be increased in certain circumstances if such note is converted after it is called for redemption. If a fundamental change occurs prior to the maturity date, holders may require the Company to repurchase all or a portion of their 2026 Notes for cash at a price equal to 100% of the principal amount of the 2026 Notes plus accrued and unpaid interest. No principal payments are otherwise due on the 2026 Notes prior to maturity. The Company recorded the full principal amount of the 2026 Notes as a long-term liability net of deferred issuance costs. The annual effective interest rate for the 2026 Notes is 1.4%. The interest expense recognized on the 2026 Notes for the three months ended March 31, 2022 includes $0.6 million for the contractual coupon interest and $0.5 million for the amortization of debt issuance costs. The Company uses the if-converted method for assumed conversion of the 2026 Notes to compute the weighted-average shares of common stock outstanding for diluted earnings per share, if applicable. The outstanding principal amount and carrying value of the 2026 Notes consist of the following (in thousands): March 31, 2022 Principal $ 316,250 Unamortized debt issuance costs (8,776 ) Net carrying value $ 307,474 Capped Call Transactions In connection with the offering of the 2026 Notes, the Company entered into the Capped Call Transactions with certain financial institutions. The Capped Call Transactions are expected generally to reduce the potential dilution and/or offset the cash payments the Company is required to make in excess of the principal amount of the 2026 Notes upon conversion of the 2026 Notes in the event that the market price per share of the Company’s common stock is greater than the strike price of the Capped Call Transactions with such reduction and/or offset subject to a cap. The Capped Call Transactions have an initial cap price of $27.68 per share of the Company’s common stock, which represents a premium of 100% over the last reported sale price of the Company’s common stock on August 5, 2021, and is subject to certain adjustments under the terms of the Capped Call Transactions. Collectively, the Capped Call Transactions cover, initially, the number of shares of the Company’s common stock underlying the 2026 Notes, subject to anti-dilution adjustments substantially similar to those applicable to the 2026 Notes. The Capped Call Transactions are separate transactions and are not part of the terms of the 2026 Notes and will not affect any holder’s rights under the notes. Holders of the 2026 Notes will not have any rights with respect to the Capped Call Transactions. The Capped Call Transactions meet all of the applicable criteria for equity classification and, as a result, the related $39.9 million cost was recorded as a reduction to additional paid-in capital on the Company’s condensed consolidated statements of shareholders’ equity. OCEANE Convertible Bonds On May 31, 2018, EOS issued 4,344,651 OCEANE convertible bonds, denominated in Euros, due May 2023 for aggregate gross proceeds of $34.3 million (€29.5 million). The OCEANEs are unsecured obligations of EOS, rank equally with all other unsecured and unsubordinated obligations of EOS, and pay interest at a rate equal to 6% per year, payable semiannually in arrears on May 31 and November 30 of each year, beginning November 30, 2018. Unless either earlier converted or repurchased, the OCEANEs will mature on May 31, 2023. Interest expense was $0.2 million for the three months ended March 31, 2022. As discussed in Note 3, in connection with the Offer to acquire EOS, the Company purchased 2,486,135 OCEANE convertible bonds, and as such, 1,858,516 OCEANE convertible bonds with a principal amount of $15.3 million (€12.6 million) remained outstanding at the time of acquisition. The OCEANEs are convertible by their holders into new EOS Shares or exchangeable for existing EOS Shares, at the Company’s option, at an initial conversion rate of one share per OCEANE, and the initial conversion rate is subject to customary anti-dilution adjustments. The OCEANEs are convertible at any time until the seventh business day prior to maturity or seventh business day prior to an earlier redemption of the OCEANE. If the number of shares calculated is not a whole number, the holder may request allocation of either the whole number of shares immediately below the number and receive an amount in cash equal to the remaining fractional share value, or the whole number of shares immediately above the number and pay an amount in cash equal to the remaining fractional share value. Holders of the OCEANEs have the option to convert all or any portion of such OCEANEs, regardless of any conditions, at any time until the close of seventh business day immediately preceding the maturity date. EOS has a right to redeem all of the OCEANEs at its option any time after June 20, 2021 at a cash redemption price equal to the par value of the OCEANEs plus accrued and unpaid interest if the product of the volume-weighted-average price of the shares and the conversion ratio as specified in the agreement in effect on each trading day exceeds 150% of the par value of each OCEANE on each of at least twenty consecutive trading days during any forty consecutive trading days, if EOS redeems the OCEANEs when the number of OCEANEs outstanding is 15% or less of the number of OCEANEs originally issued, or the occurrence of a tender or exchange offer. As a result of the Company’s acquisition of EOS, the OCEANEs are now convertible into new shares of EOS, as a wholly-owned subsidiary of the Company. OCEANE holders can redeem the notes upon the occurrence of an event of default or upon the occurrence of a change of control. In July 2021, in connection with the change of control, holders of 25,971 OCEANEs chose to redeem their bonds for approximately $0.2 million (€0.2 million). The carrying value of the outstanding OCEANEs was $13.9 million (€12.5 million) as of March 31, 2022 . Other Debt Agreements In January and April 2021, prior to the acquisition, EOS obtained two loan agreements, denominated in Euros, under French government sponsored COVID-19 relief initiatives (pret garanti par l’etat or “PGE” loans). Each loan contains a 12-month term and 90% of the principal balance of each loan is state guaranteed. The cost of the state guaranty is 0.25% of the loan amounts. The loans carry an interest-free rate from the commercial banks (€3.3 million) and a 1.75% interest from the lender (€1.5 million). The loan capital and loan guaranty costs are payable in full at the end of the 12-month term or the loan may be extended up to 5 additional years. If the Company chooses to extend the debt, the election must be made by the Company between months 8 and 11 of the 12-month term. The extension will carry an interest rate at the banks’ refinancing cost, to be applied from year 2 to year 6 and an increased state guaranty cost (50 to 200 bps, as per a scale with company size and extension year). In February 2022, the Company extended the maturity for each loan agreement to 2027. Each loan has a 12-month period from the applicable extension date where interest only payments will occur (the “Interest Only Period”). Following the Interest Only Period, monthly and quarterly installments of principal and interest under each loan agreement will be due until the original principal amounts and applicable interest is fully repaid in 2027. The Company has recorded the debt as long-term debt on the condensed consolidated balance sheets as of March 31, 2022. The outstanding obligation under each loan as of March 31, 2022 was $3.6 million and $1.6 million (€3.3 million and €1.5 million) at weighted average interest rates of 0.98% and 1.25%, respectively, and weighted average costs of the state guaranty of 0.69% and 1.00%, respectively. Total Indebtedness Principal payments remaining on the Company's debt are as follows as of March 31, 2022 (in thousands): Remainder of 2022 $ 1,781 2023 14,585 2024 1,331 2025 1,314 2026 317,564 Thereafter 629 Total 337,204 Less: debt discount (8,776 ) Total 328,428 Less: current portion of long-term debt (1,789 ) Long-term debt $ 326,639

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2022
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	10. Commitments and Contingencies Leases The Company determines if an arrangement is a lease at inception by assessing whether there is an identified asset and whether the contract conveys the right to control the use of the identified asset in exchange for consideration over a period of time. The Company recognizes right-of-use assets (“ROU assets”) and lease liabilities for office buildings and certain equipment with lease terms of 1 year to 10 years, some of which include options to extend and/or terminate the leases. Any short-term leases defined as twelve months or less or month-to-month leases were excluded and continue to be expensed each month. Total costs associated with these short-term leases is immaterial to all periods presented. The Company aggregates all lease and non-lease components for each class of underlying assets into a single lease component and variable charges for common area maintenance and other variable costs are recognized as expense as incurred. Total variable costs associated with leases for the three months ended March 31, 2022 were immaterial. The Company had an immaterial amount of financing leases as of March 31, 2022, which is included in property and equipment, net, and accrued expenses and other current liabilities, on the condensed consolidated balance sheets. Operating Lease The Company occupies approximately 121,541 square feet of office, engineering, and research and development space in Carlsbad, California. On December 4, 2019, the Company entered into a 10-year operating lease that commenced on February 1, 2021 and will terminate on January 31, 2031, subject to two sixty-month options to renew which are not reasonably certain to be exercised. The Company recognized a $21.1 million ROU asset and $21.5 million lease liability on the condensed consolidated balance sheet upon taking control of the premises on the lease commencement date. Base rent under the building lease for the first twelve months of the term will be $0.2 million per month subject to full abatement during months two through ten, and thereafter will increase annually by 3.0% throughout the remainder of the lease. On April 9, 2021, the Company entered into a 7-year operating lease agreement for a distribution center which consists of approximately 75,643 square feet of office and warehouse space in Memphis, Tennessee. The term of the lease commenced on May 1, 2021 and will terminate on May 1, 2028, subject to two thirty-six-month options to renew which were not reasonably certain to be exercised. The Company recognized a $1.7 million ROU asset and $1.6 million lease liability upon taking control of the premises on the lease commencement date. Base rent under the new building lease will be commensurate with the Company’s proportionate share of occupancy of the new building and will increase annually by 3.0% throughout the remainder of the lease. With the acquisition of EOS, the Company assumed its ROU assets and lease liabilities in the amount of $4.3 million. EOS occupies its main office in Paris, France. The EOS office in Paris, France is a 10-year operating lease that commenced in 2019 and will terminate in September 2028. Base rent under the lease is approximately $0.6 million per year. Future minimum annual lease payments for all operating leases of the Company are as follows as of March 31, 2022 (in thousands): Remainder of 2022 $ 3,245 2023 4,471 2024 4,547 2025 4,580 2026 4,684 Thereafter 17,830 Total undiscounted lease payments 39,357 Less: imputed interest (11,389 ) Operating lease liability 27,968 Less: current portion of operating lease liability (4,034 ) Operating lease liability, less current portion $ 23,934 The Company’s weighted average remaining lease term and weighted average discount rate as of March 31, 2022 and December 31, 2021 are as follows: March 31, 2022 December 31, 2021 Weighted-average remaining lease term (years) 8.3 8.6 Weighted-average discount rate 8.5 % 8.5 % Information related to the Company’s operating leases is as follows (in thousands): Three Months Ended March 31, 2022 2021 Rent expense $ 1,156 $ 1,083 Cash paid for amounts included in measurement of lease liabilities $ 1,022 $ 380 Purchase Commitments With the acquisition of EOS, the Company assumed its inventory purchase commitment agreement with a third-party supplier. The Company is obligated to certain minimum purchase commitment requirements through December 2026. As of March 31, 2022, the remaining minimum purchase commitment required by the Company under the agreement was $32.4 million. Litigation The Company is and may become involved in various legal proceedings arising from its business activities. While management is not aware of any litigation matter that in and of itself would have a material adverse impact on the Company’s condensed consolidated results of operations, cash flows or financial position, litigation is inherently unpredictable, and depending on the nature and timing of a proceeding, an unfavorable resolution could materially affect the Company’s future consolidated results of operations, cash flows or financial position in a particular period. The Company assesses contingencies to determine the degree of probability and range of possible loss for potential accrual or disclosure in the Company’s condensed consolidated financial statements. An estimated loss contingency is accrued in the Company’s condensed consolidated financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable resolutions could occur, assessing contingencies is highly subjective and requires judgments about future events. When evaluating contingencies, the Company may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information important to the matters. In addition, damage amounts claimed in litigation against the Company may be unsupported, exaggerated or unrelated to reasonably possible outcomes, and as such are not meaningful indicators of the Company’s potential liability. In February 2018, NuVasive, Inc. filed suit against the Company in the United States District Court for the Southern District of California (NuVasive, Inc. v. Alphatec Holdings, Inc. et al., Case No. 3:18-cv-00347-CAB-MDD (S.D. Cal.)), alleging that certain of the Company’s products (including components of its Battalion™ Lateral System), infringe, or contribute to the infringement of, U.S. Patent Nos. 7,819,801, 8,355,780, 8,439,832, 8,753,270, 9,833,227 (entitled “Surgical access system and related methods”), U.S. Patent No. 8,361,156 (entitled “Systems and methods for spinal fusion”), and U.S. Design Patent Nos. D652,519 (“Dilator”) and D750,252 (“Intervertebral Implant”). NuVasive seeks unspecified monetary damages and an injunction against future purported infringement. In March 2018, the Company moved to dismiss NuVasive’s claims of infringement of its design patents for failure to state a cognizable legal claim. In May 2018, the Court ruled that NuVasive failed to state a plausible claim for infringement of the asserted design patents and dismissed those claims with prejudice. The Company filed its answer, affirmative defenses and counterclaims to NuVasive’s remaining claims in May 2018. Also in March 2018, NuVasive moved for a preliminary injunction. In March 2018, the Court denied that motion without prejudice for failure to comply with the Court’s chambers rules. In April 2018, NuVasive again moved for a preliminary injunction. In July 2018, after a hearing on the matter in June 2018, the Court denied that motion on the grounds that NuVasive failed to establish either likelihood of success on the merits or that it would suffer irreparable harm absent injunction. In September 2018, NuVasive filed an Amended Complaint, asserting additional infringement claims of U.S. Patent Nos. 9,924,859, 9,974,531 and 8,187,334. The Company filed its answer, affirmative defenses and counterclaims to these claims in October 2018. Also in October 2018, NuVasive moved to dismiss the Company’s counterclaims that NuVasive intentionally had misled the U.S. Patent and Trademark Office as a means of obtaining certain patents asserted against the Company. In January 2019, the Court denied NuVasive’s motion as to all but one counterclaim, but granted the Company leave to amend that counterclaim to cure dismissal. The Company amended that counterclaim in February 2019 and, that same month, NuVasive again moved to dismiss it. In March 2019, the Court denied NuVasive’s motion. NuVasive filed its Answer to the amended counterclaim in April 2019. In December 2018, the Company filed a petition with the Patent Trial and Appeal Board (“PTAB”) challenging the validity of certain claims of the ’156 and ’334 Patents. In July 2019, PTAB instituted inter partes review (“IPR”) of the validity of asserted claims of the two patents at issue. In July 2019, PTAB instituted IPR of the validity of asserted claims of the two patents at issue and held a hearing on the matter in April 2020. In July 2020, the PTAB ruled that all challenged claims of the ‘156 Patent were valid (not unpatentable) and ruled that several challenged claims of the ‘334 Patent were invalid, while finding that other challenged claims of the ‘334 Patent valid. NuVasive and the Company both appealed the PTAB’s written decision on the matter. In February 2022, the U.S. Court of Appeals for the Federal Circuit affirmed the PTAB’s ruling without opinion. In January 2020, NuVasive filed a Motion for Partial Summary Judgment of infringement and validity of the ’832, ’780 and ’270 Patents and the Company filed a Motion for Summary Judgment of non-infringement of all asserted claims and of invalidity of the ’832 Patent and for dismissal of NuVasive’s claim for lost profits and its allegations of assignor estoppel. In April 2020, the Court granted NuVasive’s Motion as to the alleged infringement of the ’832 Patent only and denied NuVasive’s Motion in all other respects. Also, in April 2020, the Court granted the Company’s Motion as to dismissal of the allegations of assignor estoppel and denied the Company’s Motion in all other respects. In November 2020, NuVasive filed a Motion to Strike the Company’s Invalidity Contentions concerning the ’156 and ’334 Implant Patents. In April 2021, the Court denied NuVasive’s motion. In January 2021, NuVasive filed a Motion for Partial Summary Judgment of infringement and validity of the ’156 and ’334 Implant Patents and the Company filed a Motion for Summary Judgment of invalidity of those same patents. These motions were argued to the Court on June 29, 2021. In August 2021, the Court denied NuVasive’s motion and granted the Company’s motion for summary judgment of invalidity of the ’156 Patent. In September 2021, NuVasive elected not to proceed with its remaining claims for the ’334 Patent, ’780 Patent, ’270 Patent, ’227 Patent, and ’859 Patent. Trial on the remaining patents (’801 Patent, ’832 Patent, and ’531 Patent) began on March 1, 2022, and completed on March 11, 2022. On March 15, 2022, the Court ordered the parties to participate in post-trial settlement conference. The Court has not entered judgement, and, on joint motion of the parties, the Court has extended the deadlines for post-trial motions until May 20, 2022. The post-trial settlement conference took place on March 28, 2022. The parties remain engaged in settlement discussions and the Company continues to contest vigorously all claims asserted. The Company does not anticipate that any outcome will have a material adverse effect on the Company’s consolidated results of operations, cash flows or financial position. Indemnifications In the normal course of business, the Company enters into agreements under which it occasionally indemnifies third-parties for intellectual property infringement claims or claims arising from breaches of representations or warranties. In addition, from time to time, the Company provides indemnity protection to third-parties for claims relating to past performance arising from undisclosed liabilities, product liabilities, environmental obligations, representations and warranties, and other claims. In these agreements, the scope and amount of remedy, or the period in which claims can be made, may be limited. It is not possible to determine the maximum potential amount of future payments, if any, due under these indemnities due to the conditional nature of the obligations and the unique facts and circumstances involved in each agreement. In October 2017, NuVasive filed a lawsuit in Delaware Chancery Court against Mr. Miles, the Company’s Chairman and CEO, who was a former officer and board member of NuVasive. The Company itself was not initially a named defendant in this lawsuit; however, on June 28, 2018, NuVasive amended its complaint to add the Company as a defendant. On October 12, 2018, the Delaware Court ordered that NuVasive begin advancing legal fees for Mr. Miles’ defense in the lawsuit, as well as Mr. Miles’ legal fees incurred in pursuing advancement of his fees, pursuant to an indemnification agreement between NuVasive and Mr. Miles. As of March 31, 2022, the Company has not recorded any liability on the condensed consolidated balance sheet related to this matter. Royalties The Company has entered into various intellectual property agreements requiring the payment of royalties based on the sale of products that utilize such intellectual property. These royalties primarily relate to products sold by Alphatec Spine and are based on fixed fees or are calculated either as a percentage of net sales or on a per-unit sold basis. Royalties are included on the accompanying condensed consolidated statements of operations as a component of cost of sales.

Orthotec Settlement

Orthotec Settlement	3 Months Ended
	Mar. 31, 2022
Commitments And Contingencies Disclosure [Abstract]
Orthotec Settlement	11. Orthotec Settlement On September 26, 2014, the Company entered into a Settlement and Release Agreement, dated as of August 13, 2014, by and among the Company and its direct subsidiaries, including Alphatec Spine, Inc., Alphatec Holdings International C.V., Scient'x S.A.S. and Surgiview S.A.S.; HealthpointCapital, LLC, HealthpointCapital Partners, L.P., HealthpointCapital Partners II, L.P., John H. Foster and Mortimer Berkowitz III; and Orthotec, LLC and Patrick Bertranou, (the “Settlement Agreement”). Pursuant to the Settlement Agreement, the Company agreed to pay Orthotec, LLC $49.0 million in cash, including initial cash payments totaling $1.75 million, which the Company previously paid in March 2014, and an additional lump sum payment of $15.75 million, which the Company previously paid in April 2014. The Company agreed to pay the remaining $31.5 million in 28 quarterly installments of $1.1 million and one additional quarterly installment of $0.7 million, commencing October 1, 2014. The unpaid balance of the principal amount due accrues interest at the rate of 7% per year until the balance is paid in full. The accrued but unpaid interest will be paid in quarterly installments of $1.1 million (or the full amount of the accrued but unpaid interest if less than $1.1 million) following the full payment of the $31.5 million in quarterly installments. The payments set forth above are guaranteed by Stipulated Judgments held against the Company, HealthpointCapital Partners, L.P., HealthpointCapital Partners II, L.P., HealthpointCapital, LLC, John H. Foster and Mortimer Berkowitz III and, in the event of a default, will be entered and enforced against these entities and/or individuals in that order. In September 2014, the Company and HealthpointCapital entered into an agreement for joint payment of settlement whereby HealthpointCapital has agreed to contribute $5.0 million to the $49.0 million settlement amount. During the year ended December 31, 2021, HealthpointCapital made $4.0 million in pay As of March 31, 2022, the Company has made installment payments in the aggregate of $50.1 million, with a remaining outstanding balance of $7.7 million (including imputed interest). The Settlement Agreement provides for mutual releases of all claims in the Orthotec, LLC v. Surgiview, S.A.S, et al. matter in the Superior Court of California, Los Angeles County and all other related litigation matters involving the Company and its directors and affiliates. A reconciliation of the total net settlement obligation is as follows (in thousands): March 31, 2022 December 31, 2021 Litigation settlement obligation - short-term portion $ 4,400 $ 4,400 Litigation settlement obligation - long-term portion 2,965 3,587 Total 7,365 7,987 Future imputed interest 358 478 Total settlement obligation, net $ 7,723 $ 8,465

Stock-Benefit Plans and Equity

Stock-Benefit Plans and Equity Transactions	3 Months Ended
	Mar. 31, 2022
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Benefit Plans and Equity Transactions	12. Stock-Benefit Plans and Equity Transactions Stock-Based Compensation The Company has stock-based compensation plans under which it grants stock options, RSUs, and PRSUs to officers, directors and third parties. Total stock-based compensation for the periods presented were as follows (in thousands): Three Months Ended March 31, 2022 2021 Cost of sales $ 256 $ 95 Research and development 972 498 Sales, general and administrative 8,956 3,881 Total $ 10,184 $ 4,474 As of March 31, 2022, there was $57.9 million of unamortized compensation expense for RSUs and PRSUs to be recognized over a weighted average period of 1.81 years. Restricted Stock Units and Performance Based Restricted Stock Units Awards The Company issued approximately 1,225,000 shares of common stock, before net share settlement, upon vesting of RSUs and PRSUs during the three months ended March 31, 2022, and issued approximately 473,000 shares of common stock, before net share settlement, upon vesting of RSUs and PRSUs during the three months ended March 31, 2021. Employee Stock Purchase Plan Employees are eligible to participate in the ESPP approved by its shareholders. During the three months ended March 31, 2022, and 2021, no shares were issued under the ESPP. The Company estimates the fair value of shares issued to employees under the ESPP using the Black-Scholes option-pricing model. The assumptions used to estimate the fair value of stock options granted and stock purchase rights under the ESPP are as follows: Three Months Ended March 31, 2022 2021 Risk-free interest rate 0.07 % 0.10 % Expected dividend yield — — Expected term (years) 0.50 0.50 Volatility 50.29 % 78.51 % Warrants Outstanding 2017 PIPE Warrants The 2017 Common Stock Warrants (the “2017 PIPE Warrants”) have a five-year 2018 PIPE Warrants The 2018 Common Stock Warrants (the “2018 PIPE Warrants”) have a five-year SafeOp Surgical Merger Warrants In conjunction with the Company’s 2018 acquisition of SafeOp, the Company issued warrants to purchase 2,200,000 shares of common stock at an exercise price of $3.50 per share (the “SafeOp Surgical Merger Warrants”), which have a five-year Squadron Medical Warrants During the year ended December 31, 2018, in connection with the initial debt financing with Squadron Medical and a participant lender, the Company issued warrants (the “Squadron Medical Warrants”) to purchase 845,000 shares of common stock at an exercise price of $3.15 per share. An additional 4,839,000 Squadron Medical Warrants were issued at an exercise price of $2.17 per share during the second quarter of 2019, in conjunction with the Company’s draw on the expanded credit facility. In May 2020, an additional 1,076,000 Squadron Medical Warrants were issued at an exercise price of $4.88 per share in conjunction with the Company’s second amendment to the Squadron Medical debt for total Squadron Medical Warrants outstanding to Squadron Medical and the participant lender of 6,760,000. In conjunction with the second amendment, the expiration dates for all existing Squadron Medical Warrants were extended to May 29, 2027 to align all outstanding warrant expiration dates. No Squadron Medical Warrants have been exercised as of March 31, 2022. Executive Warrants In December 2017 the Company issued warrants to Mr. Patrick S. Miles, the Company’s Chairman and Chief Executive Officer, to purchase approximately 1,327,000 shares of the Company’s common stock for $5.00 per share (the “Executive Warrants”). The Executive Warrants have a five-year A summary of all outstanding warrants for common stock as of March 31, 2022, were as follows (in thousands, except for strike price data): Number of Warrants Strike Price Expiration 2017 PIPE Warrants 1,887 $ 2.00 June 2022 2018 PIPE Warrants 8,354 $ 3.50 May 2023 SafeOp Surgical Merger Warrants 1,195 $ 3.50 May 2023 2018 Squadron Medical Warrants 845 $ 3.15 May 2027 2019 Squadron Medical Warrants 4,839 $ 2.17 May 2027 2020 Squadron Medical Warrants 1,076 $ 4.88 May 2027 Executive Warrants 1,327 $ 5.00 December 2022 Other ( 1) 131 $ 5.74 Various through February 2026 Total 19,654 (1) Weighted-average strike price. All outstanding warrants were deemed to qualify for equity classification under authoritative accounting guidance.

Business Segment and Geographic

Business Segment and Geographic Information	3 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Business Segment and Geographic Information	13. Business Segment and Geographic Information The Company operates in one segment based upon the Company’s organizational structure, the way in which the operations and investments are managed and evaluated by the chief operating decision maker (“CODM”) as well as the lack of available discrete financial information at a level lower than the consolidated level. The Company shares common, centralized support functions which report directly to the CODM and decision-making regarding the Company’s overall operating performance and allocation of Company resources is assessed on a consolidated basis. Net revenue and property, plant and equipment, net, by geographic region were as follows (in thousands): Revenue Property and equipment, net Three Months Ended March 31, March 31, December 31, (in thousands) 2022 2021 2022 2021 United States $ 67,034 $ 43,716 $ 91,967 $ 85,320 International 3,899 405 4,218 2,081 Total $ 70,933 $ 44,121 $ 96,185 $ 87,401

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Net Loss Per Share	14. Net Loss Per Share Basic net loss per share is calculated by dividing the net loss available to common stockholders by the weighted-average number of common shares outstanding for the period. If applicable, diluted net loss per share attributable to common stockholders is calculated by dividing net loss available to common stockholders by the diluted weighted-average number of common shares outstanding for the period. The following table presents the computation of basic and diluted net loss per share (in thousands, except per share amounts): Three Months Ended March 31, 2022 2021 Numerator: Net loss $ (42,844 ) $ (22,903 ) Denominator: Weighted average common shares outstanding 99,978 87,223 Net loss per share, basic and diluted: $ (0.43 ) $ (0.26 ) The following potentially dilutive shares of common stock were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands): As of March 31, 2022 2021 Series A convertible preferred stock 29 29 Options to purchase common stock and employee stock purchase plan 3,435 3,898 Unvested restricted share awards 9,781 8,866 Warrants to purchase common stock 19,654 21,594 Senior convertible notes 17,246 — Total 50,145 34,387

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	15. Income Taxes To calculate its interim tax provision, at the end of each interim period the Company estimates the annual effective tax rate, adjusted for discrete items arising in that quarter. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the estimated annual taxable income or loss for the year and projections of the proportion of income earned and taxed in foreign jurisdictions. The accounting estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained, or the tax environment changes. The Company’s effective tax rate from continuing operations was (0.30%) and (0.22%) for the three months ended March 31, 2022, and 2021, respectively. The Company’s effective tax rate differs from the federal statutory rate of 21% in each period primarily due to the Company’s net loss position and valuation allowance.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2022
Related Party Transactions [Abstract]
Related Party Transactions	16. Related In November 2018, the Company entered into the Term Loan and Inventory Financing Agreement with certain affiliates of Squadron Capital, LLC (“Squadron”), including an inventory supplier (the “Squadron Supplier Affiliate”). The Term Loan was amended in March 2019, May 2020, and December 2020. On August 10, 2021, the Company terminated and repaid all obligations under the Term Loan and the Inventory Financing Agreement. For the three months ended March 31, 2022, and 2021, the Company purchased inventory in the amounts of $2.4 million and $2.3 million, respectively, from the Squadron Supplier Affiliate. As of March 31, 2022, and December 31, 2021, the Company had $1.7 million and $0.8 million, respectively, due to the Squadron Supplier Affiliate, for inventory purchases. Squadron was a lead investor in the Private Placement that was closed on March 1, 2021. David Pelizzon, President and Director of Squadron, currently serves on the Company’s Board of Directors.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the useful lives of property and equipment, goodwill, intangible assets, allowances for doubtful accounts, the valuation of share-based liabilities, deferred tax assets, inventory, stock-based compensation, revenues, restructuring liabilities, income tax uncertainties, and other contingencies.
Fair Value Measurements	Fair Value Measurements T he carrying amount of financial instruments consisting of cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses, and short-term debt included in the Company’s condensed consolidated financial statements are reasonable estimates of fair value due to their short maturities. Authoritative guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active; or other inputs that can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Excess and Obsolete Inventory	Excess and Obsolete Inventory Most of the Company’s inventory is comprised of finished goods, which is primarily produced by third-party suppliers. Specialized implants, fixation products, biologics, and disposables are determined by utilizing a standard cost method that includes capitalized variances which approximates the weighted average cost. Imaging equipment and related parts are valued at weighted average cost. Inventories are stated at the lower of cost or net realizable value. The Company reviews the components of its inventory on a periodic basis for excess and obsolescence and adjusts inventory to its net realizable value as necessary. The Company records a lower of cost or net realizable value (“LCNRV”) inventory reserve for estimated excess and obsolete inventory based upon its expected use of inventory on hand. The Company’s inventory, which consists primarily of specialized implants, fixation products, biologics, and disposables is at risk of obsolescence due to the need to maintain substantial levels of inventory. In order to market its products effectively and meet the demands of interoperative product placement, the Company maintains and provides surgeons and hospitals with a variety of inventory products and sizes. For each surgery, fewer than all components will be consumed. The need to maintain and provide a wide variety of inventory causes inventory to be held that is not likely to be used. The Company’s estimates and assumptions for excess and obsolete inventory are reviewed and updated on a quarterly basis. The estimates and assumptions are determined primarily based on current usage of inventory and the age of inventory quantities on hand. Additionally, the Company considers recent experience to develop assumptions about future demand for its products, while considering market conditions, product life cycles and new product launches. Increases in the LCNRV reserve for excess and obsolete inventory result in a corresponding charge to cost of sales.
Revenue Recognition	Revenue Recognition In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Revenue from Contracts with Customers (“Topic 606”), the Company recognizes revenue from sales of products and services when the customer obtains control of the promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. The principles in Topic 606 are applied using the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Sales are derived primarily from the sale of spinal implant products to hospitals and medical centers through direct sales representatives and independent distributors, and with the acquisition of EOS, includes imaging equipment and related services. Revenue is recognized when obligations under the terms of a contract with customers are satisfied, which occurs with the transfer of control of products to customers, either upon shipment of the product or delivery of the product to the customer depending on the shipping terms, or when the products are used in a surgical procedure (implanted in a patient). Revenue from the sale of imaging equipment is recognized as each distinct performance obligation is fulfilled and control transfers to the customer, beginning with shipment or delivery, depending on the terms. Revenue from other distinct performance obligations, such as maintenance on imaging equipment and other imaging related services, is recognized in the period the service is performed, and makes up less than 10% of the Company’s total revenue. Revenue is measured based on the amount of consideration expected to be received in exchange for the transfer of the goods or services specified in the contract with each customer. In certain cases, the Company does offer the ability for customers to lease its imaging equipment primarily on a non-sales type basis, but such arrangements are immaterial to total revenue in the periods presented. The Company generally does not allow returns of products that have been delivered. Costs incurred by the Company associated with sales contracts with customers are deferred over the performance obligation period and recognized in the same period as the related revenue, except for contracts that complete within one year or less, in which case the associated costs are expensed as incurred. Payment terms for sales to customers may vary but are commensurate with the general business practices in the country of sale. To the extent that the transaction price includes variable consideration, such as discounts, rebates, and customer payment penalties, the Company estimates the amount of variable consideration that should be included in the transaction price. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information that is reasonably available, including historical, current, and forecasted information and whether, in the Company’s judgement, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. The Company records a contract liability, or deferred revenue, when it has an obligation to provide a product or service to the customer and payment is received in advance of its performance. When the Company sells a product or service with a future performance obligation, revenue is deferred on the unfulfilled performance obligation and recognized over the related performance period. Generally, the Company does not have observable evidence of the standalone selling price related to its future service obligations; therefore, the Company estimates the selling price using an expected cost plus a margin approach. The transaction price is allocated using the relative standalone selling price method. The use of alternative estimates could result in a different amount of revenue deferral.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In August 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The guidance requires application of ASC 606, “Revenue from Contracts with Customers” to recognize and measure contract assets and contract liabilities acquired in a business combination. ASU No. 2021-08 adds an exception to the general recognition and measurement principle in ASC 805 where assets acquired and liabilities assumed in a business combination, including contract assets and contract liabilities arising from contracts with customers, are measured at fair value on the acquisition date. Under the new guidance, the acquirer will recognize acquired contract assets and contract liabilities as if the acquirer had originated the contract. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, with early adoption permitted. The Company does not intend to early adopt the standard and is in the process of assessing the impact, if any, on its condensed consolidated financial statements and related disclosures.

Business Combination (Tables)

Business Combination (Tables)	3 Months Ended
	Mar. 31, 2022
Business Combinations [Abstract]
Schedule of Allocation of Purchase Price to Assets Acquired and Liabilities Assumed Based on Fair Values	The allocation of the purchase price to the assets acquired and liabilities assumed based on their fair values were as follows: (in thousands) As of May 13, 2021 Cash paid for purchase of EOS shares at Change in Control Date $ 46,908 Cash paid for purchase of OCEANEs at Change in Control Date 19,620 Total cash paid at Change in Control Date 66,528 Fair value of investment in EOS Shares held prior to Change in Control Date 23,549 Fair value of investment in OCEANEs held prior to Change in Control Date 1,477 Total fair value of investment in EOS held prior to Change in Control Date 25,026 Fair value of noncontrolling interest acquired after Change in Control Date 8,454 $ 100,008 Cash and cash equivalents $ 16,778 Accounts receivable 9,083 Inventory 26,681 Other current assets 4,422 Property, plant and equipment, net 1,650 Deferred tax assets 536 Right-of-use asset 4,341 Goodwill 29,469 Definite-lived intangible assets: Developed technology 56,000 Customer relationships 9,500 Trade names 6,000 Other noncurrent assets 395 Contract liabilities 21,196 Long-term debt 15,297 Other liabilities assumed 28,354 Total identifiable net assets $ 100,008
Schedule of Unaudited Pro Forma Results	The unaudited pro forma results include IFRS to U.S. GAAP adjustments for EOS historical results and adjustments for accounting policy alignment, which were materially similar to the Company. Any differences in accounting policies were adjusted to reflect the accounting policies of the Company in the unaudited pro forma results presented. Three Months Ended March 31, (in thousands, except per share amounts) 2022 2021 Total revenue $ 70,933 $ 50,986 Net loss (42,844 ) (26,707 ) Net loss per share, basic and diluted $ (0.43 ) $ (0.31 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2022
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value on Recurring Basis	Assets and liabilities measured at fair value on a recurring basis included the following as of March 31, 2022, and December 31, 2021 (in thousands): March 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 120,023 — — $ 120,023 Total cash equivalents $ 120,023 — — $ 120,023 Liability classified equity award $ — — 2,328 $ 2,328 December 31, 2021 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 140,010 — — $ 140,010 Total cash equivalents $ 140,010 — — $ 140,010 Liability classified equity award $ — — 2,052 $ 2,052
Reconciliation of Liabilities Measured at Fair Value Using Significant Unobservable Inputs	The following table provides a reconciliation of liabilities measured at fair value using significant unobservable inputs (Level 3) for the three months ended March 31, 2022 (in thousands): Level 3 Liabilities Balance at December 31, 2021 $ 2,052 Straight-line recognition of liability classified equity award 196 Change in fair value measurement 80 Balance at March 31, 2022 $ 2,328

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories reported at the lower of cost or net realizable value consist of the following (in thousands): March 31, 2022 December 31, 2021 Raw materials $ 15,792 $ 14,671 Work-in-process 6,220 5,712 Finished goods 77,031 71,320 Inventories $ 99,043 $ 91,703

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	3 Months Ended
	Mar. 31, 2022
Property Plant And Equipment [Abstract]
Property and equipment, net	Property and equipment, net consist of the following (in thousands, except as indicated): Useful lives (in years) March 31, 2022 December 31, 2021 Surgical instruments 4 $ 140,585 $ 130,432 Machinery and equipment 7 11,135 11,092 Computer equipment 3 5,796 5,694 Office furniture and equipment 5 3,880 3,861 Leasehold improvements various 1,748 1,754 Construction in progress n/a 12,063 7,292 175,207 160,125 Less: accumulated depreciation and amortization (79,022 ) (72,724 ) Property and equipment, net $ 96,185 $ 87,401

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2022
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The change in the carrying amount of goodwill during the period ended March 31, 2022 included the following (in thousands): December 31, 2021 $ 39,689 Purchase price allocation adjustment 1,628 Foreign currency fluctuation (486 ) March 31, 2022 $ 40,831
Intangible Assets, Net	Intangible assets, net consist of the following (in thousands, except as indicated): Remaining Avg. Useful lives Gross Accumulated Intangible March 31, 2022: (in years) Amount Amortization Assets, net Developed product technology 12 $ 73,665 $ (7,303 ) $ 66,362 Trademarks and trade names 10 5,638 (609 ) 5,029 Customer relationships 5 14,583 (5,685 ) 8,898 Distribution network 3 2,413 (1,890 ) 523 In-process research and development n/a 1,278 — 1,278 Total $ 97,577 $ (15,487 ) $ 82,090 Remaining Avg. Useful lives Gross Accumulated Intangible December 31, 2021: (in years) Amount Amortization Assets, net Developed product technology 12 $ 74,543 $ (5,768 ) $ 68,775 Trademarks and trade names 10 5,732 (477 ) 5,255 Customer relationships 5 14,732 (5,264 ) 9,468 Distribution network 3 2,413 (1,840 ) 573 In-process research and development n/a 1,203 — 1,203 Total $ 98,623 $ (13,349 ) $ 85,274
Schedule of Intangible Assets, Future Expected Amortization Expense	Future amortization expense related to intangible assets is as follows (in thousands): Year Ending December 31, Remainder of 2022 $ 6,734 2023 8,957 2024 8,854 2025 8,269 2026 8,269 Thereafter 41,007 $ 82,090

Contract Liability (Tables)

Contract Liability (Tables)	3 Months Ended
	Mar. 31, 2022
Contract With Customer Liability [Abstract]
Schedule of Contract Liability	Contract liability consists of the following (in thousands): March 31, 2022 December 31, 2021 Contract liability $ 17,427 $ 18,151 Less: Non-current portion of contract liability (2,534 ) (2,896 ) Current portion of contract liability $ 14,893 $ 15,255
Opening and Closing Balances of Company's Contract Liability	The opening and closing balances of the Company’s contract liability are as follows (in thousands): Balance at December 31, 2021 $ 18,151 Payments received 3,592 Revenue recognized (4,316 ) Balance at March 31, 2022 $ 17,427

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Outstanding Principal Amount and Carrying Value of Notes	The outstanding principal amount and carrying value of the 2026 Notes consist of the following (in thousands): March 31, 2022 Principal $ 316,250 Unamortized debt issuance costs (8,776 ) Net carrying value $ 307,474
Principal Payments on Debt	Total Indebtedness Principal payments remaining on the Company's debt are as follows as of March 31, 2022 (in thousands): Remainder of 2022 $ 1,781 2023 14,585 2024 1,331 2025 1,314 2026 317,564 Thereafter 629 Total 337,204 Less: debt discount (8,776 ) Total 328,428 Less: current portion of long-term debt (1,789 ) Long-term debt $ 326,639

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2022
Commitments And Contingencies Disclosure [Abstract]
Future minimum annual lease payments	Future minimum annual lease payments for all operating leases of the Company are as follows as of March 31, 2022 (in thousands): Remainder of 2022 $ 3,245 2023 4,471 2024 4,547 2025 4,580 2026 4,684 Thereafter 17,830 Total undiscounted lease payments 39,357 Less: imputed interest (11,389 ) Operating lease liability 27,968 Less: current portion of operating lease liability (4,034 ) Operating lease liability, less current portion $ 23,934
Summary of Weighted-Average Remaining Lease Term and Discount Rate	The Company’s weighted average remaining lease term and weighted average discount rate as of March 31, 2022 and December 31, 2021 are as follows: March 31, 2022 December 31, 2021 Weighted-average remaining lease term (years) 8.3 8.6 Weighted-average discount rate 8.5 % 8.5 %
Summary of Operating Leases	Information related to the Company’s operating leases is as follows (in thousands): Three Months Ended March 31, 2022 2021 Rent expense $ 1,156 $ 1,083 Cash paid for amounts included in measurement of lease liabilities $ 1,022 $ 380

Orthotec Settlement (Tables)

Orthotec Settlement (Tables)	3 Months Ended
	Mar. 31, 2022
Commitments And Contingencies Disclosure [Abstract]
Schedule of Reconciliation of Net Settlement Obligation [Text Block]	A reconciliation of the total net settlement obligation is as follows (in thousands): March 31, 2022 December 31, 2021 Litigation settlement obligation - short-term portion $ 4,400 $ 4,400 Litigation settlement obligation - long-term portion 2,965 3,587 Total 7,365 7,987 Future imputed interest 358 478 Total settlement obligation, net $ 7,723 $ 8,465

Stock-Benefit Plans and Equit_2

Stock-Benefit Plans and Equity Transactions (Tables)	3 Months Ended
	Mar. 31, 2022
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Total Stock Based Compensation	The Company has stock-based compensation plans under which it grants stock options, RSUs, and PRSUs to officers, directors and third parties. Total stock-based compensation for the periods presented were as follows (in thousands): Three Months Ended March 31, 2022 2021 Cost of sales $ 256 $ 95 Research and development 972 498 Sales, general and administrative 8,956 3,881 Total $ 10,184 $ 4,474
Schedule of Assumptions used to Estimate Fair Value of Stock Options Granted and Stock Purchase Rights under ESPP	The Company estimates the fair value of shares issued to employees under the ESPP using the Black-Scholes option-pricing model. The assumptions used to estimate the fair value of stock options granted and stock purchase rights under the ESPP are as follows: Three Months Ended March 31, 2022 2021 Risk-free interest rate 0.07 % 0.10 % Expected dividend yield — — Expected term (years) 0.50 0.50 Volatility 50.29 % 78.51 %
Summary of All Outstanding Warrants for Common Stock	A summary of all outstanding warrants for common stock as of March 31, 2022, were as follows (in thousands, except for strike price data): Number of Warrants Strike Price Expiration 2017 PIPE Warrants 1,887 $ 2.00 June 2022 2018 PIPE Warrants 8,354 $ 3.50 May 2023 SafeOp Surgical Merger Warrants 1,195 $ 3.50 May 2023 2018 Squadron Medical Warrants 845 $ 3.15 May 2027 2019 Squadron Medical Warrants 4,839 $ 2.17 May 2027 2020 Squadron Medical Warrants 1,076 $ 4.88 May 2027 Executive Warrants 1,327 $ 5.00 December 2022 Other ( 1) 131 $ 5.74 Various through February 2026 Total 19,654 (1) Weighted-average strike price.

Business Segment and Geograph_2

Business Segment and Geographic Information (Tables)	3 Months Ended
	Mar. 31, 2022
Segment Reporting [Abstract]
Schedule of Net Revenue and Property, Plant and Equipment, Net, by Geographic Region	Revenue Property and equipment, net Three Months Ended March 31, March 31, December 31, (in thousands) 2022 2021 2022 2021 United States $ 67,034 $ 43,716 $ 91,967 $ 85,320 International 3,899 405 4,218 2,081 Total $ 70,933 $ 44,121 $ 96,185 $ 87,401

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net Loss Per Share	The following table presents the computation of basic and diluted net loss per share (in thousands, except per share amounts): Three Months Ended March 31, 2022 2021 Numerator: Net loss $ (42,844 ) $ (22,903 ) Denominator: Weighted average common shares outstanding 99,978 87,223 Net loss per share, basic and diluted: $ (0.43 ) $ (0.26 )
Anti-Dilutive Securities of Common Stock Excluded from Calculation of Diluted Net Loss Per Share	The following potentially dilutive shares of common stock were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands): As of March 31, 2022 2021 Series A convertible preferred stock 29 29 Options to purchase common stock and employee stock purchase plan 3,435 3,898 Unvested restricted share awards 9,781 8,866 Warrants to purchase common stock 19,654 21,594 Senior convertible notes 17,246 — Total 50,145 34,387

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022
Maximum
Significant Accounting Policies [Line Items]
Percentage of revenue from other distinct performance obligations of total revenue	10.00%

Business Combination - Addition

Business Combination - Additional Information (Details) $ in Thousands	Jun. 02, 2021USD ($)	May 17, 2021USD ($)	May 13, 2021USD ($)	May 12, 2021USD ($)	Mar. 31, 2022USD ($)	Mar. 31, 2021USD ($)	Dec. 16, 2020€ / shares
Business Acquisition [Line Items]
Increase in goodwill due to purchase accounting adjustments					$ 1,628
Amortization of acquired intangible assets					2,230	$ 172
Transaction-related expenses					120	$ 1,012
EOS Imaging S.A.
Business Acquisition [Line Items]
Purchase price			$ 100,008
Purchase price in cash			66,528
Amortization of acquired intangible assets					1,800
Adjustment related to increased fair value of acquired inventory					500
Transaction-related expenses					$ 2,300
EOS Imaging S.A. | Technology-Based Intangible Assets
Business Acquisition [Line Items]
Intangible assets acquired amortized on a straight-line basis over useful lives					10 years
EOS Imaging S.A. | Trade Name Related Intangible Assets
Business Acquisition [Line Items]
Intangible assets acquired amortized on a straight-line basis over useful lives					10 years
EOS Imaging S.A. | Customer Related Intangible Assets
Business Acquisition [Line Items]
Intangible assets acquired amortized on a straight-line basis over useful lives					7 years
EOS Imaging S.A. | EOS Share
Business Acquisition [Line Items]
Purchase price in cash			46,908
EOS Imaging S.A. | OCEANEs
Business Acquisition [Line Items]
Purchase price in cash			19,620
Tender Offer Agreement | EOS Imaging S.A.
Business Acquisition [Line Items]
Share price | € / shares							€ 0.01
Purchase price	$ 100,000	$ 8,500	$ 66,500
Purchase price in cash				$ 25,000
Ownership percentage on share capital and voting rights			80.00%
Tender Offer Agreement | EOS Imaging S.A. | EOS Share
Business Acquisition [Line Items]
Tender offer price | € / shares							2.45
Business acquisition ownership percentage acquired	100.00%		59.00%
Ownership percentage on share capital prior to change in control period				30.00%
Ownership percentage on share capital after change in control date			89.00%
Tender Offer Agreement | EOS Imaging S.A. | OCEANEs
Business Acquisition [Line Items]
Tender offer price | € / shares							€ 7.01
Business acquisition ownership percentage acquired	57.00%		53.00%
Ownership percentage on share capital prior to change in control period				4.00%
Ownership percentage on share capital after change in control date			57.00%

Business Combination - Schedule

Business Combination - Schedule of Allocation of Purchase Price to Assets Acquired and Liabilities Assumed Based on Fair Values (Details) - USD ($) $ in Thousands	May 13, 2021	Mar. 31, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Goodwill		$ 40,831	$ 39,689
EOS Imaging S.A.
Business Acquisition [Line Items]
Purchase price	$ 100,008
Cash and cash equivalents	16,778
Accounts receivable	9,083
Inventory	26,681
Other current assets	4,422
Property, plant and equipment, net	1,650
Deferred tax assets	536
Right-of-use asset	4,341
Goodwill	29,469
Definite-lived intangible assets:
Other noncurrent assets	395
Contract liabilities	21,196
Long-term debt	15,297
Other liabilities assumed	28,354
Total identifiable net assets	100,008
Total cash paid at Change in Control Date	66,528
Total fair value of investment in EOS held prior to Change in Control Date	25,026
Fair value of noncontrolling interest acquired after Change in Control Date	8,454
EOS Imaging S.A. | EOS Share
Definite-lived intangible assets:
Total cash paid at Change in Control Date	46,908
Total fair value of investment in EOS held prior to Change in Control Date	23,549
EOS Imaging S.A. | OCEANEs
Definite-lived intangible assets:
Total cash paid at Change in Control Date	19,620
Total fair value of investment in EOS held prior to Change in Control Date	1,477
EOS Imaging S.A. | Developed Technology
Definite-lived intangible assets:
Definite-lived intangible assets:	56,000
EOS Imaging S.A. | Customer Relationships
Definite-lived intangible assets:
Definite-lived intangible assets:	9,500
EOS Imaging S.A. | Trade Name Related Intangible Assets
Definite-lived intangible assets:
Definite-lived intangible assets:	$ 6,000

Business Combination - Summary

Business Combination - Summary of Unaudited Proforma Results (Details) - EOS Imaging S.A. - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Business Acquisition [Line Items]
Total revenue	$ 70,933	$ 50,986
Net loss	$ (42,844)	$ (26,707)
Net loss per share, basic and diluted	$ (0.43)	$ (0.31)

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value on a recurring basis	$ 120,023	$ 140,010
Liability Classified Equity Award
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Liabilities measured at fair value on a recurring basis	2,328	2,052
Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value on a recurring basis	120,023	140,010
Fair Value, Inputs, Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value on a recurring basis	120,023	140,010
Fair Value, Inputs, Level 1 | Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value on a recurring basis	120,023	140,010
Fair value, inputs, level 3 | Liability Classified Equity Award
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Liabilities measured at fair value on a recurring basis	$ 2,328	$ 2,052

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Fair value, inputs, level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value of the cash settled award	$ 3.2
Fair Value, Inputs, Level 1 | OCEANE Convertible Bonds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value of long-term debt	13.9	$ 14.1
Fair Value, Inputs, Level 1 | 2026 Notes
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value of long-term debt	$ 308.2	$ 308.1
Debt maturity year	2026

Fair Value Measurements - Recon

Fair Value Measurements - Reconciliation of Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Details) - Fair value, inputs, level 3 $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Beginning balance	$ 2,052
Straight-line recognition of liability classified equity award	196
Change in fair value measurement	80
Ending balance	$ 2,328

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 15,792	$ 14,671
Work-in-process	6,220	5,712
Finished goods	77,031	71,320
Inventories	$ 99,043	$ 91,703

Property and Equipment, net - P

Property and Equipment, net - Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 175,207	$ 160,125
Less: accumulated depreciation and amortization	(79,022)	(72,724)
Property and equipment, net	$ 96,185	87,401
Surgical instruments
Property Plant And Equipment [Line Items]
Surgical instruments	4 years
Property and equipment, gross	$ 140,585	130,432
Machinery and equipment
Property Plant And Equipment [Line Items]
Surgical instruments	7 years
Property and equipment, gross	$ 11,135	11,092
Computer equipment
Property Plant And Equipment [Line Items]
Surgical instruments	3 years
Property and equipment, gross	$ 5,796	5,694
Office furniture and equipment
Property Plant And Equipment [Line Items]
Surgical instruments	5 years
Property and equipment, gross	$ 3,880	3,861
Leasehold improvements
Property Plant And Equipment [Line Items]
Leasehold improvements	various
Property and equipment, gross	$ 1,748	1,754
Construction in progress
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 12,063	$ 7,292

Property and Equipment, net - A

Property and Equipment, net - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Property Plant And Equipment [Abstract]
Depreciation	$ 7.1	$ 3.4

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
December 31, 2021	$ 39,689
Purchase price allocation adjustment	1,628
Foreign currency fluctuation	(486)
March 31, 2022	$ 40,831

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible Assets, Net (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Finite Lived Intangible Assets [Line Items]
Gross Amount	$ 97,577	$ 98,623
Accumulated Amortization	(15,487)	(13,349)
Intangible Assets, net	$ 82,090	$ 85,274
Developed Technology
Finite Lived Intangible Assets [Line Items]
Intangible assets acquired amortized on a straight-line basis over useful lives	12 years	12 years
Gross Amount	$ 73,665	$ 74,543
Accumulated Amortization	(7,303)	(5,768)
Intangible Assets, net	$ 66,362	$ 68,775
Trademarks and trade names
Finite Lived Intangible Assets [Line Items]
Intangible assets acquired amortized on a straight-line basis over useful lives	10 years	10 years
Gross Amount	$ 5,638	$ 5,732
Accumulated Amortization	(609)	(477)
Intangible Assets, net	$ 5,029	$ 5,255
Customer Relationships
Finite Lived Intangible Assets [Line Items]
Intangible assets acquired amortized on a straight-line basis over useful lives	5 years	5 years
Gross Amount	$ 14,583	$ 14,732
Accumulated Amortization	(5,685)	(5,264)
Intangible Assets, net	$ 8,898	$ 9,468
Distribution network
Finite Lived Intangible Assets [Line Items]
Intangible assets acquired amortized on a straight-line basis over useful lives	3 years	3 years
Gross Amount	$ 2,413	$ 2,413
Accumulated Amortization	(1,890)	(1,840)
Intangible Assets, net	523	573
In process research and development
Finite Lived Intangible Assets [Line Items]
Gross Amount	1,278	1,203
Intangible Assets, net	$ 1,278	$ 1,203

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 2.2	$ 0.4

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Schedule of Intangible Assets, Future Expected Amortization Expense (Details) $ in Thousands	Mar. 31, 2022USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Remainder of 2022	$ 6,734
2023	8,957
2024	8,854
2025	8,269
2026	8,269
Thereafter	41,007
Total	$ 82,090

Contract Liability - Schedule o

Contract Liability - Schedule of Contract Liability (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Contract With Customer Liability [Abstract]
Contract liability	$ 17,427	$ 18,151
Less: Non-current portion of contract liability	(2,534)	(2,896)
Contract liability	$ 14,893	$ 15,255

Contract Liability - Additional

Contract Liability - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Contract With Customer Liability [Abstract]
Revenue from contract liabilities	$ 4,316

Contract Liability - Opening an

Contract Liability - Opening and Closing Balances of Company's Contract Liability (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022USD ($)
Contract With Customer Liability [Abstract]
Balance at December 31, 2021	$ 18,151
Payments received	3,592
Revenue recognized	(4,316)
Balance at March 31, 2022	$ 17,427

Debt - 0.75% Senior Convertible

Debt - 0.75% Senior Convertible Notes due 2026 (Details) - 0.75% Senior Convertible Notes due 2026	1 Months Ended	3 Months Ended
	Aug. 31, 2021USD ($)$ / sharesshares	Mar. 31, 2022USD ($)Day
Line Of Credit Facility [Line Items]
Aggregate principal amount of debt	$ 316,300,000
Interest rate	0.75%
Debt instrument, maturity date	Aug. 1, 2026
Debt instrument, frequency of periodic payment	semi-annually
Debt instrument, Date of first payment	Feb. 1, 2022
Net proceeds	$ 306,200,000
Payment terms		Interest on the 2026 Notes is payable semi-annually in arrears on February 1 and August 1 of each year, beginning on February 1, 2022.
Debt instrument covenant description		The 2026 Notes do not contain any financial covenants
Initial conversion rate | shares	54.5316
Debt instrument converted principal amount	$ 1,000
Conversion price per share | $ / shares	$ 18.34
Consecutive trading days | Day		30
Threshold percentage of par value trigger	130.00%	98.00%
Number of conversion price, consecutive business days | Day		5
Number of conversion price, consecutive trading days | Day		10
Debt instrument converted principal amount		$ 1,000,000
Debt conversion start date		Feb. 2, 2026
Convertible notes redemption start date	Aug. 6, 2024
Convertible notes, redemption price percentage	100.00%
Principal payments due	$ 0
Effective interest rate		1.40%
Interest expenses		$ 600,000
Amortization of debt issuance costs		$ 500,000
Minimum [Member]
Line Of Credit Facility [Line Items]
Threshold trading days | Day		20
Maximum
Line Of Credit Facility [Line Items]
Threshold percentage of par value trigger		130.00%

Debt - Outstanding Principal Am

Debt - Outstanding Principal Amount and Carrying Value of Notes (Details) $ in Thousands	Mar. 31, 2022USD ($)
Debt Instrument [Line Items]
Principal	$ 337,204
Net carrying value	328,428
2026 Notes
Debt Instrument [Line Items]
Principal	316,250
Unamortized debt issuance costs	(8,776)
Net carrying value	$ 307,474

Debt - Capped Call Transactions

Debt - Capped Call Transactions (Details) - 0.75% Senior Convertible Notes due 2026 - Capped Call Transactions $ in Millions	Aug. 05, 2021USD ($)$ / shares
Debt Instrument [Line Items]
Initial cap price | $ / shares	27.68
Percentage of premium over last reported sale price of common stock	100.00%
Cost of capped call transactions	$ 39.9
Reduction to additional paid-in capital	$ 39.9

Debt - OCEANE Convertible Bonds

Debt - OCEANE Convertible Bonds (Details) $ in Thousands, € in Millions	Jun. 20, 2021Day	May 31, 2018USD ($)ConvertibleBondshares	May 31, 2018EUR (€)ConvertibleBondshares	Jul. 31, 2021USD ($)shares	Jul. 31, 2021EUR (€)shares	Mar. 31, 2022USD ($)	Mar. 31, 2022EUR (€)	May 31, 2018EUR (€)shares
Debt Instrument [Line Items]
Carrying value of OCEANEs | $						$ 337,204
OCEANE Convertible Bonds
Debt Instrument [Line Items]
Debt instrument redemption				25,971	25,971
Debt instrument redemption amount				$ 200	€ 0.2
Carrying value of OCEANEs						$ 13,900	€ 12.5
OCEANE Convertible Bonds | EOS Imaging S.A.
Debt Instrument [Line Items]
Number of OCEANE convertible bonds issued | ConvertibleBond		4,344,651	4,344,651
Aggregate gross proceeds		$ 34,300	€ 29.5
Interest rate		6.00%						6.00%
Payment terms						The OCEANEs are unsecured obligations of EOS, rank equally with all other unsecured and unsubordinated obligations of EOS, and pay interest at a rate equal to 6% per year, payable semiannually in arrears on May 31 and November 30 of each year, beginning November 30, 2018
Debt instrument, frequency of periodic payment		semiannually	semiannually
Debt instrument, Date of first payment		Nov. 30, 2018	Nov. 30, 2018
Debt instrument, maturity date		May 31, 2023	May 31, 2023
Interest expense | $						$ 200
Debt instrument purchased		2,486,135	2,486,135
Debt instrument outstanding		1,858,516						1,858,516
Aggregate principal amount of debt		$ 15,300						€ 12.6
Initial conversion rate		1	1
Threshold percentage of par value trigger	150.00%
Consecutive trading days | Day	40
Threshold percentage of debt instrument outstanding	15.00%
OCEANE Convertible Bonds | EOS Imaging S.A. | Minimum [Member]
Debt Instrument [Line Items]
Consecutive trading days | Day	20

Debt - Other Debt Agreements (D

Debt - Other Debt Agreements (Details) - EOS Imaging S.A. $ in Millions	1 Months Ended	3 Months Ended	4 Months Ended
	Feb. 28, 2022	Mar. 31, 2022USD ($)	Apr. 30, 2021EUR (€)Agreement	Mar. 31, 2022EUR (€)
Line Of Credit Facility [Line Items]
Number of loan agreements | Agreement			2
Debt instrument term	12 months		12 months
Percentage of principal state guaranteed			90.00%
Percentage of cost of state guaranty			0.25%
Debt instrument interest-free rate amount			€ 3,300,000
Effective interest rate			1.75%
Debt instrument interest rate amount			€ 1,500,000
Line of credit facility description		The loan capital and loan guaranty costs are payable in full at the end of the 12-month term or the loan may be extended up to 5 additional years. If the Company chooses to extend the debt, the election must be made by the Company between months 8 and 11 of the 12-month term.
Line of credit facility extension description		The extension will carry an interest rate at the banks’ refinancing cost, to be applied from year 2 to year 6 and an increased state guaranty cost (50 to 200 bps, as per a scale with company size and extension year).
Debt instrument, extended maturity year	2027
Loan One
Line Of Credit Facility [Line Items]
Outstanding loan obligation		$ 3.6		€ 3,300,000
Weighted average interest rate on loan		0.98%		0.98%
Percentage of weighted average cost of state guaranty		0.69%
Loan Two
Line Of Credit Facility [Line Items]
Outstanding loan obligation		$ 1.6		€ 1,500,000
Weighted average interest rate on loan		1.25%		1.25%
Percentage of weighted average cost of state guaranty		1.00%
Maximum
Line Of Credit Facility [Line Items]
Debt instrument loan extended additional period			5 years

Debt - Principal Payments on De

Debt - Principal Payments on Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Disclosure [Abstract]
Remainder of 2022	$ 1,781
2023	14,585
2024	1,331
2025	1,314
2026	317,564
Thereafter	629
Total	337,204
Less: debt discount	(8,776)
Net carrying value	328,428
Less: current portion of long-term debt	(1,789)
Long-term debt	$ 326,639	$ 326,489

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Thousands	May 13, 2021USD ($)	Apr. 09, 2021USD ($)ft²	Dec. 04, 2019USD ($)ft²	Mar. 31, 2022USD ($)	Dec. 31, 2021USD ($)
Loss Contingencies [Line Items]
Lessee operating lease, description				Company recognizes right-of-use assets (“ROU assets”) and lease liabilities for office buildings and certain equipment with lease terms of 1 year to 10 years, some of which include options to extend and/or terminate the leases. Any short-term leases defined as twelve months or less or month-to-month leases were excluded and continue to be expensed each month. Total costs associated with these short-term leases is immaterial to all periods presented.
Right-of-use asset				$ 24,661	$ 25,283
Lease Liability				$ 27,968
EOS Imaging S.A.
Loss Contingencies [Line Items]
Operating lease term	10 years
Lease Liability	$ 1,600
Lease commencement year	2019
Lease termination date	2028-09
Base rent	$ 600
Building lease
Loss Contingencies [Line Items]
Operating lease term		7 years	10 years
Area for facility of office, engineering and research and development space | ft²		75,643	121,541
Lease agreement commencement date		May 1, 2021	Feb. 1, 2021
Lease agreement expiry date		May 1, 2028	Jan. 31, 2031
Lease renewal term		236 months	260 months
Right-of-use asset		$ 1,700	$ 21,100
Lease Liability		$ 4,300	$ 21,500
Beginning and end of abatement period			full abatement during months two through ten
Annual increase in base rent		3.00%	3.00%
Building lease | First year
Loss Contingencies [Line Items]
Lease base rent payment per month			$ 200
Minimum [Member]
Loss Contingencies [Line Items]
Operating lease term				1 year
Minimum [Member] | Building lease | First year
Loss Contingencies [Line Items]
Abatement period			2 months
Maximum
Loss Contingencies [Line Items]
Operating lease term				10 years
Maximum | Building lease | First year
Loss Contingencies [Line Items]
Abatement period			10 months

Commitments and Contingencies_2

Commitments and Contingencies - Future Minimum Annual Lease Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Commitments And Contingencies Disclosure [Abstract]
Remainder of 2022	$ 3,245
2023	4,471
2024	4,547
2025	4,580
2026	4,684
Thereafter	17,830
Total undiscounted lease payments	39,357
Less: imputed interest	(11,389)
Operating lease liability	27,968
Less: current portion of operating lease liability	(4,034)	$ (4,212)
Operating lease liability, less current portion	$ 23,934	$ 24,383

Commitments and Contingencies_3

Commitments and Contingencies - Summary of Weighted-Average Remaining Lease Term and Discount Rate (Details)	Mar. 31, 2022	Dec. 31, 2021
Commitments And Contingencies Disclosure [Abstract]
Weighted-average remaining lease term (years)	8 years 3 months 18 days	8 years 7 months 6 days
Weighted-average discount rate	8.50%	8.50%

Commitments and Contingencies_4

Commitments and Contingencies - Summary of Operating Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Commitments And Contingencies Disclosure [Abstract]
Rent expense	$ 1,156	$ 1,083
Cash paid for amounts included in measurement of lease liabilities	$ 1,022	$ 380

Orthotec Settlement - Additiona

Orthotec Settlement - Additional Information (Details) - Orthotec LLC, litigation settlement $ in Thousands	Oct. 01, 2014USD ($)	Aug. 13, 2014USD ($)installment	Sep. 30, 2014USD ($)	Apr. 30, 2014USD ($)	Mar. 31, 2014USD ($)	Mar. 31, 2022USD ($)	Dec. 31, 2021USD ($)
Loss Contingencies [Line Items]
Judgment assessed by court for (against) company		$ 49,000
Payments of settlement				$ 15,750	$ 1,750	$ 50,100
Number of quarterly installments | installment		28
Litigation settlement interest, quarterly installments, amount		$ 1,100
Litigation settlement, final installment amount		700
Litigation settlement, remaining outstanding balance including interest						$ 7,700
HealthpointCapital, LLC
Loss Contingencies [Line Items]
Contribution amount to be paid by other party			$ 5,000				$ 4,000
Beginning Fourth Quarter of 2014
Loss Contingencies [Line Items]
Litigation settlement, full amount to be paid in quarterly installments	$ 31,500
Litigation settlement interest, quarterly installments, amount		$ 1,100
Litigation settlement interest rate		7.00%
Litigation settlement payments, quarterly payment amount		$ 1,100
Final Installment
Loss Contingencies [Line Items]
Number of quarterly installments | installment		1

Orthotec Settlement - Schedule

Orthotec Settlement - Schedule of Reconciliation of Total Net Settlement Obligation (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Commitments And Contingencies Disclosure [Abstract]
Litigation settlement obligation - short-term portion	$ 4,400	$ 4,400
Litigation settlement obligation - long-term portion	2,965	3,587
Total	7,365	7,987
Future imputed interest	358	478
Total settlement obligation, net	$ 7,723	$ 8,465

Stock-Benefit Plans and Equit_3

Stock-Benefit Plans and Equity Transactions - Summary of Total Stock Based Compensation (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 10,184	$ 4,474
Cost of Sales
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	256	95
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	972	498
Sales, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 8,956	$ 3,881

Stock-Benefit Plans and Equit_4

Stock-Benefit Plans and Equity Transactions - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
	Dec. 31, 2017	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2017	May 31, 2020	Jun. 30, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants outstanding		19,654,000
Stock-based compensation		$ 10,184,000	$ 4,474,000
Mr. Miles
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrant expiration period	5 years
Number of warrants exercised		0
Number of warrants issued (in shares)	1,327,000			1,327,000
Exercise price of warrants	$ 5			$ 5
Stock-based compensation				$ 1,400,000
Safe Op Surgical Inc
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrant expiration period		5 years
Proceeds from exercise of warrant			$ 100,000
Number of warrants exercised		0	1,000,000
Warrants outstanding		1,195,000
Number of warrants issued (in shares)		2,200,000
Exercise price of warrants		$ 3.50
2017 PIPE Warrants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrant expiration period		5 years
Proceeds from exercise of warrant		$ 900,000	$ 300,000
Number of warrants exercised		425,000	145,000
Warrants outstanding		1,887,000
Exercise price of warrants		$ 2
2018 Common Stock Warrants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrant expiration period		5 years
Proceeds from exercise of warrant		$ 400,000	$ 300,000
Number of warrants exercised		126,000	2,148,000
Warrants outstanding		8,354,000
Exercise price of warrants		$ 3.50
Squadron Medical | Participant Lender
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants exercised		0
Warrants outstanding					6,760,000
Number of warrants issued (in shares)					1,076,000	4,839,000	845,000
Exercise price of warrants					$ 4.88	$ 2.17	$ 3.15
Warrants And Rights Outstanding Maturity Date					May 29, 2027
RSU's and PRSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized compensation expense		$ 57,900
Unamortized compensation expense to be recognized over weighted average period		1 year 9 months 21 days
Shares of common stock issued before net settlement		1,225,000	473,000
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued under ESPP		0	0

Stock-Benefit Plans and Equit_5

Stock-Benefit Plans and Equity Transactions - Schedule of Assumptions used to Estimate Fair Value of Stock Options Granted and Stock Purchase Rights under ESPP (Details) - ESPP	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	0.07%	0.10%
Expected term (years)	6 months	6 months
Volatility	50.29%	78.51%

Stock-Benefit Plans and Equit_6

Stock-Benefit Plans and Equity Transactions - Summary of All Outstanding Warrants for Common Stock (Details)	3 Months Ended
	Mar. 31, 2022$ / sharesshares
Class Of Warrant Or Right [Line Items]
Number of Warrants	19,654,000
2017 PIPE Warrants
Class Of Warrant Or Right [Line Items]
Number of Warrants	1,887,000
Strike Price | $ / shares	$ 2
Expiration	June 2022
2018 PIPE Warrants
Class Of Warrant Or Right [Line Items]
Number of Warrants	8,354,000
Strike Price | $ / shares	$ 3.50
Expiration	May 2023
SafeOp Surgical Merger Warrants
Class Of Warrant Or Right [Line Items]
Number of Warrants	1,195,000
Strike Price | $ / shares	$ 3.50
Expiration	May 2023
2018 Squadron Medical Warrants
Class Of Warrant Or Right [Line Items]
Number of Warrants	845,000
Strike Price | $ / shares	$ 3.15
Expiration	May 2027
2019 Squadron Medical Warrants
Class Of Warrant Or Right [Line Items]
Number of Warrants	4,839,000
Strike Price | $ / shares	$ 2.17
Expiration	May 2027
2020 Squadron Medical Warrants
Class Of Warrant Or Right [Line Items]
Number of Warrants	1,076,000
Strike Price | $ / shares	$ 4.88
Expiration	May 2027
Executive Warrants
Class Of Warrant Or Right [Line Items]
Number of Warrants	1,327,000
Strike Price | $ / shares	$ 5
Expiration	December 2022
Other Warrants
Class Of Warrant Or Right [Line Items]
Number of Warrants	131,000	[1]
Strike Price | $ / shares	$ 5.74	[1]
Expiration	Various through February 2026	[1]
[1]	Weighted-average strike price.

Business Segment and Geograph_3

Business Segment and Geographic Information - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022segment
Segment Reporting [Abstract]
Number of operating segments	1

Business Segment and Geograph_4

Business Segment and Geographic Information - Schedule of Net Revenue and Property, Plant and Equipment, Net, by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue	$ 70,933	$ 44,121
Property and equipment, net	96,185		$ 87,401
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue	67,034	43,716
Property and equipment, net	91,967		85,320
International
Revenues From External Customers And Long Lived Assets [Line Items]
Revenue	3,899	$ 405
Property and equipment, net	$ 4,218		$ 2,081

Net Loss Per Share - Computatio

Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Numerator:
Net loss	$ (42,844)	$ (22,903)
Denominator:
Weighted average common shares outstanding	99,978	87,223
Net loss per share, basic and diluted:	$ (0.43)	$ (0.26)

Net Loss Per Share - Anti-Dilut

Net Loss Per Share - Anti-Dilutive Securities of Common Stock Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities not included in diluted net loss per share (in shares)	50,145	34,387
Series A Convertible Preferred Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities not included in diluted net loss per share (in shares)	29	29
Options to purchase common stock and employee stock purchase plan
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities not included in diluted net loss per share (in shares)	3,435	3,898
Unvested restricted share awards
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities not included in diluted net loss per share (in shares)	9,781	8,866
Warrants to purchase common stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities not included in diluted net loss per share (in shares)	19,654	21,594
Senior Convertible Notes
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities not included in diluted net loss per share (in shares)	17,246

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate from continuing operations	(0.30%)	(0.22%)
Federal statutory income tax rate	21.00%	21.00%

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - Squadron Supplier Affiliate - Inventory Financing Agreement - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Related Party Transaction [Line Items]
Purchased inventory from related party	$ 2.4	$ 2.3
Due to affiliate for inventory purchases	$ 1.7		$ 0.8