DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION DOCUMENT AND ENTITY INFORMATION | 3 Months Ended | |
Mar. 31, 2015 | Apr. 20, 2015 | |
Entity [Abstract] | ||
Entity Registrant Name | K2M Group Holdings, Inc. | |
Entity Central Index Key | 1499807 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 39,655,132 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $39,020 | $11,411 |
Accounts receivable, net | 35,074 | 33,937 |
Inventory, net | 53,179 | 52,617 |
Deferred income taxes | 2,821 | 3,437 |
Prepaid expenses and other current assets | 4,917 | 3,911 |
Total current assets | 135,011 | 105,313 |
Property and equipment, net | 4,397 | 4,220 |
Goodwill and intangible assets, net | 160,822 | 163,423 |
Other assets, net | 28,789 | 29,672 |
Total assets | 329,019 | 302,628 |
Current liabilities: | ||
Accounts payable | 17,690 | 14,018 |
Accrued expenses | 10,052 | 10,077 |
Accrued payroll liabilities | 7,998 | 11,488 |
Total current liabilities | 35,740 | 35,583 |
Deferred income taxes | 7,863 | 8,479 |
Other liabilities | 870 | 112 |
Total liabilities | 44,473 | 44,174 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value, 750,000,000 shares authorized; 39,605,130 and 37,366,098 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively | 40 | 37 |
Additional paid-in capital | 424,523 | 386,795 |
Accumulated other comprehensive income | 4,473 | 1,827 |
Accumulated deficit | -144,490 | -130,205 |
Total stockholders’ equity | 284,546 | 258,454 |
Total liabilities and stockholders’ equity | $329,019 | $302,628 |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value per share (in usd per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 39,605,130 | 37,366,098 |
Common stock, shares outstanding (in shares) | 39,605,130 | 37,366,098 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Revenue | $50,424 | $42,251 |
Cost of revenue | 17,497 | 14,414 |
Gross profit | 32,927 | 27,837 |
Operating expenses: | ||
Research, development and engineering | 4,633 | 3,197 |
Sales and marketing | 25,010 | 22,448 |
General and administrative | 13,329 | 15,890 |
Total operating expenses | 42,972 | 41,535 |
Loss from operations | -10,045 | -13,698 |
Other income (expense): | ||
Foreign currency transaction (loss) gain | -4,137 | 222 |
Interest expense | -80 | -1,247 |
Total other expense, net | -4,217 | -1,025 |
Loss before income tax expense | -14,262 | -14,723 |
Income tax expense | 23 | 24 |
Net loss | -14,285 | -14,747 |
Accretion and adjustment of preferred stock to fair value | -1,180 | |
Accretion and adjustment of preferred stock to fair value | 0 | |
Net loss attributable to stockholders | ($14,285) | ($15,927) |
Net loss per share attributable to common stockholders: | ||
Basic and diluted (in dollars per share) | ($0.37) | ($0.71) |
Weighted average shares outstanding: | ||
Basic and diluted (in shares) | 38,739,798 | 22,523,358 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net loss | ($14,285) | ($14,747) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | 2,646 | -86 |
Other comprehensive income (loss) | 2,646 | -86 |
Comprehensive loss | ($11,639) | ($14,833) |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited) (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | IPO [Member] | IPO [Member] | IPO [Member] |
In Thousands, except Share data, unless otherwise specified | Common Stock [Member] | Additional Paid-in Capital [Member] | ||||||
Beginning Balance at Dec. 31, 2014 | $258,454 | $37 | $386,795 | $1,827 | ($130,205) | |||
Beginning Balance (in shares) at Dec. 31, 2014 | 37,366,098 | 37,366,098 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | -14,285 | -14,285 | ||||||
Other comprehensive income | 2,646 | 2,646 | ||||||
Stock-based compensation | 1,901 | 1,901 | ||||||
Issuances of common stock (in shares) | 2,044,990 | |||||||
Issuances of common stock | 35,448 | 2 | 35,446 | |||||
Exercise of options (in shares) | 278,704 | 194,042 | ||||||
Exercise of options | 382 | 1 | 381 | |||||
Ending Balance at Mar. 31, 2015 | $284,546 | $40 | $424,523 | $4,473 | ($144,490) | |||
Ending Balance (in shares) at Mar. 31, 2015 | 39,605,130 | 39,605,130 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities | ||
Net loss | ($14,285) | ($14,747) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 6,036 | 9,705 |
Provision for allowance for doubtful accounts | 41 | 137 |
Provision for inventory reserve | 1,239 | 721 |
Stock-based compensation | 1,901 | 375 |
Amortization of issuance and discount costs included in interest expense | 0 | 67 |
Deferred income taxes | 21 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -1,345 | -508 |
Inventory | -1,536 | -6,075 |
Prepaid expenses and other assets | -2,745 | -4,305 |
Accounts payable, accrued expenses, and accrued payroll liabilities | 3,655 | 5,447 |
Net cash used in operating activities | -7,018 | -9,183 |
Investing activities | ||
Purchase of surgical instruments | -1,430 | -2,058 |
Purchase of property and equipment | -649 | -658 |
Purchase of intangible assets | -17 | -18 |
Net cash used in investing activities | -2,096 | -2,734 |
Financing activities | ||
Proceeds from issuance of notes to stockholders | 0 | 14,634 |
Proceeds from issuances of common stock, net of issuance costs | 36,455 | 1,939 |
Issuances and exercise of stock-based compensation benefit plans, net of income tax | 382 | -942 |
Net cash provided by financing activities | 36,837 | 15,631 |
Effect of exchange rate changes on cash and cash equivalents | -114 | 13 |
Net increase in cash and cash equivalents | 27,609 | 3,727 |
Cash and cash equivalents at beginning of period | 11,411 | 7,419 |
Cash and cash equivalents at end of period | 39,020 | 11,146 |
Significant noncash financing activities | ||
Deferred offering costs | 1,007 | 2,291 |
Cash paid for: | ||
Income taxes | 52 | 0 |
Interest | 24 | 255 |
Series A Redeemable Convertible Preferred Stock [Member] | ||
Significant noncash financing activities | ||
Accretion of redeemable convertible preferred stock | 0 | 1,195 |
Series B Redeemable Convertible Preferred Stock [Member] | ||
Significant noncash financing activities | ||
Accretion of redeemable convertible preferred stock | $0 | ($15) |
GENERAL_AND_SUMMARY_OF_SIGNIFI
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
K2M Group Holdings, Inc. (the Company) was formed as a Delaware corporation on June 29, 2010. On July 2, 2010, K2M, Inc. (K2M), a company initially incorporated in 2004, entered into an Agreement and Plan of Merger (the Merger Agreement) with Altitude Group Holdings, Inc. (Altitude) and Altitude Merger Sub, Inc. (Merger Sub). Altitude was a newly formed corporation and an indirect wholly-owned subsidiary of Welsh, Carson, Anderson & Stowe XI, L.P. On August 12, 2010 (the Merger Date), upon the closing of the transactions under the Merger Agreement, Merger Sub merged with and into K2M with K2M being the surviving corporation of such merger (the Merger) and Altitude was renamed K2M Group Holdings, Inc. | |
The Company is a global medical device company focused on designing, developing and commercializing innovative and proprietary complex spine technologies and techniques. The Company’s complex spine products are used by spine surgeons to treat some of the most difficult and challenging spinal pathologies, such as deformity (primarily scoliosis), trauma, and tumor. The Company has applied its product development expertise in innovating complex spine technologies and techniques to the design, development, and commercialization of an expanding number of proprietary minimally invasive surgery, or MIS products. The Company’s MIS products are designed to allow for less invasive access to the spine and faster patient recovery times as compared to traditional open access surgical approaches for both complex spine and degenerative spine pathologies. The Company has also leveraged these core competencies in the design, development and commercialization of an increasing number of products for patients suffering from degenerative spinal conditions. | |
Issuance of Common Stock | |
On February 2, 2015, the Company completed a second public offering of 6,044,990 shares of its common stock at a price of $18.75 per share. The Company sold 2,044,990 shares of common stock in the offering and selling stockholders sold 4,000,000 shares of common stock in the offering. The Company received net proceeds from the offering of approximately $35,400 after deducting the underwriting discount and offering expenses. | |
The proceeds of the primary portion of the offering will be used by the Company for working capital and general corporate purposes which is expected to include the expansion of the Company's global distribution network and the purchase of inventory to support sales efforts. Use of proceeds may also include the acquisition of or investment in complementary products, technologies or businesses. The principal purposes of the secondary offering were to facilitate an orderly distribution of shares by the selling stockholders and to increase the public float of the Company's shares. The Company did not receive any proceeds from shares of common stock sold by the selling stockholders. | |
In connection with the offering, certain of the selling stockholders granted the underwriters an option to purchase from them additional shares of common stock at the public offering price, less underwriting discounts. On February 12, 2015, the underwriters exercised this option and purchased 906,748 shares of common stock from the selling stockholders at a price of $18.75 per share before underwriting discounts. The Company received no proceeds from the sale of these shares. | |
Unaudited Interim Results | |
The accompanying condensed consolidated balance sheets as of March 31, 2015 and December 31, 2014, the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive income (loss) for the three months ended March 31, 2015 and 2014, the condensed consolidated statements of changes in stockholders’ equity as of March 31, 2015, and the condensed consolidated statements of cash flows for the three months ended March 31, 2015 and 2014 are unaudited. The unaudited interim financial statements have been prepared on the same basis of accounting as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial position and results of operations and cash flows for the periods presented. The results for the three months ended March 31, 2015 are not necessarily indicative of future results. All information as of March 31, 2015 and for the three month periods ending March 31, 2015 and 2014 within these notes to the consolidated financial statements is unaudited. | |
Principles of Consolidation | |
The accompanying consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | |
Use of Estimates | |
The preparation of financial statements in conformity with generally accepted accounting principles in the United States (US GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Net Loss per Share | |
Basic net loss per common share is determined by dividing the net loss allocable to common stockholders by the weighted average number of common shares outstanding during the periods presented, without consideration of common stock equivalents. Diluted loss per share is computed by dividing the net loss allocable to common stockholders by the weighted average number of shares of common stock and common stock equivalents outstanding for the period. The treasury stock method is used to determine the dilutive effect of the Company’s stock option grants and the if-converted method is used to determine the dilutive effect of the Company’s Series A redeemable convertible preferred stock or Series A Preferred and Series B redeemable convertible preferred stock or Series B Preferred, until their conversion into common stock in May 2014. The weighted average shares used to calculate both basic and diluted loss per share are the same because common stock equivalents were excluded in the calculation of diluted loss per share because their effect would be anti-dilutive. | |
Foreign Currency Translation and Other Comprehensive Loss | |
The account balances of foreign subsidiaries are translated into U.S. dollars using exchange rates for assets and liabilities at the balance sheet date and average prevailing exchange rates for the period for revenue and expense accounts. Adjustments resulting from translation are included in other comprehensive income (loss), which is the Company’s only component of accumulated other comprehensive loss. | |
Remeasurement gains and losses from foreign currency transactions are included in the consolidated statements of operations in the period in which they occur. | |
Recent Accounting Pronouncements | |
The Company qualifies as an “emerging growth company” (EGC) pursuant to the provisions of the JOBS Act and has elected to take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act which permits EGCs to defer compliance with new or revised accounting standards (the EGC extension) until non-issuers are required to comply with such standards. Accordingly, so long as the Company continues to qualify as an EGC, it will not have to adopt or comply with new accounting standards until non-issuers are required to comply with such standards. | |
In May 2014, the FASB amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. For public entities, other than EGCs that have elected the EGC extension, the guidance will be effective for annual reporting periods beginning after December 15, 2016. EGCs that have elected the EGC extension, including the Company, and non-public entities will be required to comply with the guidance for annual reporting periods beginning after December 15, 2017. Early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of the initial application. In April 2015, the FASB proposed a one-year deferral of the effective date for its revenue recognition standard which would defer the aforementioned implementation dates by one year. The Company is evaluating the impact of these amendments and the transition alternatives on its consolidated financial statements. | |
In April 2015, the FASB issued guidance to simplify the presentation of debt issuance costs by requiring them to be presented as a deduction from the corresponding debt liability, rather than reported as an asset. This will make the presentation of debt issuance costs consistent with the presentation of debt discounts and premiums. This new guidance affects only the presentation of debt issuance costs, not recognition and measurement. For public entities other than EGCs that have elected the EGC extension, the guidance will be effective for annual reporting periods beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, EGCs that have elected the EGC extension, including the Company, and non-public entities will be required to comply with the guidance on a retrospective basis for fiscal years beginning after December 15, 2015, and interim periods within the fiscal years beginning after December 15, 2016. Although adoption of this new guidance may impact how such items are classified on the Company’s balance sheet, the Company does not anticipate that its adoption of this guidance will have a material impact on its financial position, results of operations or cash flows. There will be no changes in the presentations of the Company’s other consolidated financial statements. | |
In April 2015, the FASB issued guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. For public entities, other than EGC’s that have elected the EGC extension, the guidance is effective for annual reporting periods, including interim periods within those annual reporting periods, beginning after December 15, 2015. For all other entities, including the Company, it is effective for annual reporting periods beginning after December 15, 2015 and interim periods in annual reporting periods beginning after December 15, 2016. Early adoption is permitted for all entities. The Company is evaluating the impact of this guidance on its consolidated financial statements. |
ACCOUNTS_RECEIVABLE
ACCOUNTS RECEIVABLE | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Receivables [Abstract] | |||||||||
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE | ||||||||
The following table summarizes the Company's accounts receivables, net of allowances: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Accounts receivable | $ | 37,573 | $ | 36,431 | |||||
Allowances | (2,499 | ) | (2,494 | ) | |||||
Accounts receivable, net | $ | 35,074 | $ | 33,937 | |||||
INVENTORY
INVENTORY | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
INVENTORY | INVENTORY | ||||||||
The following table summarizes the Company's inventory, net of allowance: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Finished goods | $ | 80,500 | $ | 78,331 | |||||
Inventory allowances | (27,321 | ) | (25,714 | ) | |||||
Inventory, net | $ | 53,179 | $ | 52,617 | |||||
Inventory includes surgical instruments available for sale with a carrying value of $8,545 and $8,491 at March 31, 2015 and | |||||||||
December 31, 2014, respectively. |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||
Goodwill and intangible assets comprise the following: | |||||||||||||||
As of March 31, 2015 | |||||||||||||||
Estimated | Gross | Accumulated | Net | ||||||||||||
Useful Lives | Amortization | ||||||||||||||
Goodwill | — | $ | 121,814 | $ | — | $ | 121,814 | ||||||||
Indefinite-lived intangible assets: | |||||||||||||||
Trademarks | — | 12,900 | — | 12,900 | |||||||||||
In-process research and development | — | 900 | — | 900 | |||||||||||
Other | — | 278 | — | 278 | |||||||||||
Subtotal | 14,078 | — | 14,078 | ||||||||||||
Subject to amortization | |||||||||||||||
Developed technology | 4 - 6 years | 62,000 | (47,906 | ) | 14,094 | ||||||||||
Licensed technology | 4 - 6 years | 52,600 | (52,213 | ) | 387 | ||||||||||
Customer relationships | 4 - 7 years | 29,700 | (19,623 | ) | 10,077 | ||||||||||
Patents and other | 2 - 17 years | 1,432 | (1,060 | ) | 372 | ||||||||||
Subtotal | 145,732 | (120,802 | ) | 24,930 | |||||||||||
Total | $ | 281,624 | $ | (120,802 | ) | $ | 160,822 | ||||||||
As of December 31, 2014 | |||||||||||||||
Estimated | Gross | Accumulated | Net | ||||||||||||
Useful Lives | Amortization | ||||||||||||||
Goodwill | — | $ | 121,814 | $ | — | $ | 121,814 | ||||||||
Indefinite-lived intangible assets: | |||||||||||||||
Trademarks | — | 12,900 | — | 12,900 | |||||||||||
In-process research and development | — | 900 | — | 900 | |||||||||||
Other | — | 278 | — | 278 | |||||||||||
Subtotal | 14,078 | — | 14,078 | ||||||||||||
Subject to amortization | |||||||||||||||
Developed technology | 4 - 6 years | 62,000 | (46,460 | ) | 15,540 | ||||||||||
Licensed technology | 4 - 6 years | 52,600 | (52,175 | ) | 425 | ||||||||||
Customer relationships | 4 - 7 years | 29,700 | (18,563 | ) | 11,137 | ||||||||||
Patents and other | 2 - 17 years | 1,414 | (985 | ) | 429 | ||||||||||
Subtotal | 145,714 | (118,183 | ) | 27,531 | |||||||||||
Total | $ | 281,606 | $ | (118,183 | ) | $ | 163,423 | ||||||||
Amortization expense was $2,622 and $7,551 for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||||||
As of March 31, 2015, the expected amortization expense for the remainder of 2015 and the following four years and thereafter is as follows: | |||||||||||||||
31-Mar-15 | |||||||||||||||
2015 | $ | 7,657 | |||||||||||||
2016 | 10,209 | ||||||||||||||
2017 | 6,595 | ||||||||||||||
2018 | 100 | ||||||||||||||
2019 and thereafter | 369 | ||||||||||||||
Total | $ | 24,930 | |||||||||||||
OTHER_ASSETS
OTHER ASSETS | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
OTHER ASSETS | OTHER ASSETS | ||||||||
Other assets comprises the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Surgical instruments, net | $ | 20,684 | $ | 21,392 | |||||
Restricted cash | 7,959 | 8,114 | |||||||
Other | 146 | 166 | |||||||
Total | $ | 28,789 | $ | 29,672 | |||||
Surgical instruments are stated net of accumulated amortization of $20,374 and $18,610 at March 31, 2015 and December 31, 2014, respectively. Amortization expense was $2,155 and $1,308 for the three months ended March 31, 2015 and 2014, respectively. | |||||||||
As of March 31, 2015 and December 31, 2014, restricted cash includes amounts placed in escrow for tenant improvement costs of approximately $6,700 for the Company's new corporate headquarters. Restricted cash also includes deposits made on pending bids or contracts with customers of $1,290 and $1,447 as of March 31, 2015 and December 31, 2014, respectively. |
ACCRUED_EXPENSES
ACCRUED EXPENSES | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Payables and Accruals [Abstract] | |||||||||
ACCRUED EXPENSES | ACCRUED EXPENSES | ||||||||
Accrued expenses consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Accrued commissions | $ | 4,315 | $ | 4,942 | |||||
Accrued royalties | 2,123 | 2,464 | |||||||
Other | 3,614 | 2,671 | |||||||
Total | $ | 10,052 | $ | 10,077 | |||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION | |||||||||||||
As of March 31, 2015, the Company has four stock-based compensation plans: The 2014 Employee Omnibus Incentive Plan (Omnibus Incentive Plan), the 2014 Employee Stock Purchase Plan (ESPP), the 2010 Equity Award Plan and the 2010 Independent Agent Plan, collectively, “the Plans”. The purpose of the Plans are to provide incentives to employees, directors, agents and advisors of the Company. The Plans are administered by the Company’s board of directors or its delegates. The number, type of equity incentive, exercise or share purchase price, and vesting terms are determined in accordance with the Plans, as applicable. | ||||||||||||||
As of March 31, 2015, there were a total of 1,264,523 shares of common stock available for future grants under the plans. | ||||||||||||||
The Company recognized the following stock-based compensation expense related to employees and non-employees: | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Cost of revenue | $ | 181 | $ | 7 | ||||||||||
Research, development, and engineering | 149 | 21 | ||||||||||||
Sales and marketing | 756 | 197 | ||||||||||||
General and administrative | 815 | 150 | ||||||||||||
$ | 1,901 | $ | 375 | |||||||||||
Employees | $ | 1,827 | $ | 269 | ||||||||||
Non-employees | 74 | 106 | ||||||||||||
Total | $ | 1,901 | $ | 375 | ||||||||||
A summary of stock option plans activity during the three months ended March 31, 2015 is as follows: | ||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Exercise | Remaining | Value (1) | ||||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
(years) | ||||||||||||||
Outstanding at December 31, 2014 | 4,277,229 | $ | 9.55 | 5.83 | $ | 48,418 | ||||||||
Granted | 32,921 | 18.89 | ||||||||||||
Exercised | (278,704 | ) | 7.11 | |||||||||||
Expired | — | — | ||||||||||||
Forfeited | (8,240 | ) | 11.54 | |||||||||||
Outstanding at March 31, 2015(2) | 4,023,206 | $ | 9.79 | 5.81 | $ | 49,243 | ||||||||
Vested or expected to vest: | ||||||||||||||
At March 31, 2015(3) | 3,806,103 | $ | 9.71 | 5.72 | $ | 46,985 | ||||||||
Vested: | ||||||||||||||
At March 31, 2015 | 2,046,172 | $ | 8.09 | 4.25 | $ | 28,582 | ||||||||
-1 | Calculated using the estimated per-share fair market value of the Company's common stock on March 31, 2015 and December 31, 2014, which was $22.05, and $20.87, respectively. | |||||||||||||
-2 | The total includes 993,472 performance-based options at March 31, 2015. | |||||||||||||
-3 | Outstanding options, net of forfeiture rate. | |||||||||||||
The Company recognized stock-based compensation expense of $537 and $375 for the three months ended March 31, 2015 and 2014, respectively related to the stock options. | ||||||||||||||
As of December 31, 2014 and March 31, 2015 there were 765,023 unvested restricted stock units (RSUs) outstanding. No RSUs were granted or vested during the three months ended March 31, 2015. The Company recognized stock-based compensation expense of $1,297 and $0 for the three months ended March 31, 2015 and 2014, respectively. The unrecognized compensation expense related to the unvested RSUs was $6,910 at March 31, 2015 and is expected to be recognized over a period of 1.4 years. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES |
On December 11, 2014, the Company entered into a Deed of Lease (the “Lease Agreement”) with TC Oaklawn Owner, LLC (the “Landlord”) with respect to the Company’s new corporate headquarters to be located in two adjacent buildings in Leesburg, Virginia (the “Buildings”). On March 13, 2015 the Company received $790 of cash grant incentives from several government originators, which were included in cash and cash equivalents at March 31, 2015. There are no restrictions on the use of the cash proceeds. Pursuant to the grant agreements, the Company or the Landlord are required to make certain investments in the Buildings and the Company is required to increase its workforce in Leesburg by 96 by December 31, 2017. As a result of these commitments, the Company has recorded a long-term liability on its balance sheet of $790 until such conditions are met. | |
Intellectual Property | |
In the normal course of business, the Company enters into agreements to obtain the rights to certain intellectual property. These agreements may require an up-front payment, milestone payments and/or royalties. Typically, the Company has certain rights to cancel these agreements, with notice, without additional payments due other than the amount due at the time of cancellation. As of March 31, 2015, the aggregate amount of these future payments, assuming achievement of applicable milestones and non-cancellation, was $1,613 over a period not less than five years. Royalties ranging from 2% to 10% of net sales may be due on the sales of related products. Some of the agreements contain minimum annual royalty amounts. | |
In November 2011, the Company entered into an agreement to purchase certain proprietary technology which could require it to make additional aggregate payments of up to $13,350 should certain milestones be met, including milestones related to regulatory applications and approvals. Cumulative payments under this agreement totaled $100 through March 31, 2015. In addition, milestone payments of $500, $2,000 and $4,000 are due upon the achievement of net sales of related products of $10,000, $25,000 and $50,000, respectively. A royalty payment of 7% of net sales of related products may be due until such sales reaches $20,000. The product related to this agreement has not yet been commercialized. | |
The medical device industry is characterized by frequent claims and litigation, including claims regarding patent and other | |
intellectual property rights, as well as, improper hiring practices. The Company is not aware of any pending or threatened legal proceeding against it that the Company expects would have a material adverse effect on its business, operating results or financial condition. However, the Company is a party in multiple legal actions involving claimants seeking various remedies, including monetary damages, and none of the outcomes are certain or entirely within the Company's control. |
RELATED_PARTIES
RELATED PARTIES | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | RELATED PARTIES |
In connection with the Merger, the Company and K2M entered into a management agreement with the major stockholder of the Company. Fees paid for such agreement totaled $0 and $263 for the three months ended March 31, 2015 and 2014, respectively. The Company records such costs in general and administrative expense in its condensed consolidated statements of operations. The management agreement was terminated in May 2014 following the Company's IPO. | |
In connection with the second public offering completed on February 2, 2015, certain stockholders of the Company granted the underwriters an option to purchase from such selling shareholders additional shares of common stock at the public offering price, less underwriting discounts. On February 12, 2015, the underwriters exercised this option and purchased 906,748 shares of common stock from selling shareholders at a price of $18.75 per share before underwriting discounts. The Company received no proceeds from the sale of these shares. |
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES |
The provision for income taxes for the three months ended March 31, 2015 and 2014 includes both domestic and foreign income taxes at applicable statutory rates adjusted for permanent differences and valuation allowances. For the three months ended March 31, 2015 and 2014, the income tax expense was $23 and $24, resulting in an effective tax rate of (0.2)% in each period. The effective tax rate differs from the statutory rate due to permanent differences, an increase to the valuation allowance and foreign tax rate differentials. |
NET_LOSS_PER_SHARE
NET LOSS PER SHARE | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
NET LOSS PER SHARE | NET LOSS PER SHARE | ||||||||
The following table sets forth the computation of basic and diluted loss per share attributable to the Company’s common stockholders: | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Net loss per common share: | |||||||||
Net loss | $ | (14,285 | ) | $ | (14,747 | ) | |||
Less: accretion and adjustment of Series A Preferred and Series B Preferred | — | (1,180 | ) | ||||||
Net loss attributable to common stockholders | $ | (14,285 | ) | $ | (15,927 | ) | |||
Basic and diluted loss per common share | |||||||||
Basic and diluted weighted average common shares outstanding | 38,739,798 | 22,523,358 | |||||||
Basic and diluted loss per common share | $ | (0.37 | ) | $ | (0.71 | ) | |||
Diluted loss per share for the three months ended March 31, 2015 and 2014 does not reflect the following weighted average potential common shares, as the effect would be antidilutive: | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Series A Preferred and Series B Preferred | — | 5,577,016 | |||||||
Stock options | 4,023,206 | 3,919,000 | |||||||
Restricted stock units | 765,023 | 576,132 | |||||||
SEGMENT_AND_GEOGRAPHICAL_CONCE
SEGMENT AND GEOGRAPHICAL CONCENTRATION | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
SEGMENT AND GEOGRAPHICAL CONCENTRATION | SEGMENT AND GEOGRAPHICAL CONCENTRATION | ||||||||
Operating segments are defined as components of an enterprise for which separate discrete financial information is available and evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. The Company globally manages the business within one reporting segment. Segment information is consistent with how management reviews the business, makes investing and resource allocation decisions and assesses operating performance. Products are sold principally in the United States. International revenue represented 30.3% | |||||||||
of total revenue for the three months ended March 31, 2015; however, revenue earned in any individual foreign country is below 10% of the Company’s consolidated revenue. | |||||||||
The following table represents total revenue by geographic area, based on the location of the customer: | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
United States | $ | 35,162 | $ | 29,765 | |||||
International | 15,262 | 12,486 | |||||||
Total | $ | 50,424 | $ | 42,251 | |||||
The Company classifies sales within the United States into three categories: complex spine pathologies, minimally invasive procedures and degenerative and other conditions. A significant portion of the Company’s international revenue is derived from the Company’s distributor partners who do not report their product usage at the surgeon or hospital level, which prevents us from providing a specific breakdown for our international revenue among our three product categories. These sales transactions are settled when the Company ships the product to the agent. | |||||||||
To further align its procedure categorizations, beginning in the second quarter of 2014, the Company began to report MIS sales attributable to complex spine procedures, which were historically reported in the minimally invasive category, within the complex spine category. Accordingly, the complex spine category presented below includes MIS sales attributable to complex spine procedures of $1,746 for the three months ended March 31, 2014 which was historically reported in the minimally invasive category. | |||||||||
The following table represents domestic revenue by procedure category: | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Complex spine | $ | 14,221 | $ | 11,930 | |||||
Minimally invasive | 5,809 | 4,739 | |||||||
Degenerative | 15,132 | 13,096 | |||||||
35,162 | 29,765 | ||||||||
International | 15,262 | 12,486 | |||||||
Total | $ | 50,424 | $ | 42,251 | |||||
GENERAL_AND_SUMMARY_OF_SIGNIFI1
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation |
The accompanying consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in conformity with generally accepted accounting principles in the United States (US GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Net Loss per Share | Net Loss per Share |
Basic net loss per common share is determined by dividing the net loss allocable to common stockholders by the weighted average number of common shares outstanding during the periods presented, without consideration of common stock equivalents. Diluted loss per share is computed by dividing the net loss allocable to common stockholders by the weighted average number of shares of common stock and common stock equivalents outstanding for the period. The treasury stock method is used to determine the dilutive effect of the Company’s stock option grants and the if-converted method is used to determine the dilutive effect of the Company’s Series A redeemable convertible preferred stock or Series A Preferred and Series B redeemable convertible preferred stock or Series B Preferred, until their conversion into common stock in May 2014. The weighted average shares used to calculate both basic and diluted loss per share are the same because common stock equivalents were excluded in the calculation of diluted loss per share because their effect would be anti-dilutive. | |
Foreign Currency Translation and Other Comprehensive Loss | Foreign Currency Translation and Other Comprehensive Loss |
The account balances of foreign subsidiaries are translated into U.S. dollars using exchange rates for assets and liabilities at the balance sheet date and average prevailing exchange rates for the period for revenue and expense accounts. Adjustments resulting from translation are included in other comprehensive income (loss), which is the Company’s only component of accumulated other comprehensive loss. | |
Remeasurement gains and losses from foreign currency transactions are included in the consolidated statements of operations in the period in which they occur. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
The Company qualifies as an “emerging growth company” (EGC) pursuant to the provisions of the JOBS Act and has elected to take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act which permits EGCs to defer compliance with new or revised accounting standards (the EGC extension) until non-issuers are required to comply with such standards. Accordingly, so long as the Company continues to qualify as an EGC, it will not have to adopt or comply with new accounting standards until non-issuers are required to comply with such standards. | |
In May 2014, the FASB amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. For public entities, other than EGCs that have elected the EGC extension, the guidance will be effective for annual reporting periods beginning after December 15, 2016. EGCs that have elected the EGC extension, including the Company, and non-public entities will be required to comply with the guidance for annual reporting periods beginning after December 15, 2017. Early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of the initial application. In April 2015, the FASB proposed a one-year deferral of the effective date for its revenue recognition standard which would defer the aforementioned implementation dates by one year. The Company is evaluating the impact of these amendments and the transition alternatives on its consolidated financial statements. | |
In April 2015, the FASB issued guidance to simplify the presentation of debt issuance costs by requiring them to be presented as a deduction from the corresponding debt liability, rather than reported as an asset. This will make the presentation of debt issuance costs consistent with the presentation of debt discounts and premiums. This new guidance affects only the presentation of debt issuance costs, not recognition and measurement. For public entities other than EGCs that have elected the EGC extension, the guidance will be effective for annual reporting periods beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, EGCs that have elected the EGC extension, including the Company, and non-public entities will be required to comply with the guidance on a retrospective basis for fiscal years beginning after December 15, 2015, and interim periods within the fiscal years beginning after December 15, 2016. Although adoption of this new guidance may impact how such items are classified on the Company’s balance sheet, the Company does not anticipate that its adoption of this guidance will have a material impact on its financial position, results of operations or cash flows. There will be no changes in the presentations of the Company’s other consolidated financial statements. | |
In April 2015, the FASB issued guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. For public entities, other than EGC’s that have elected the EGC extension, the guidance is effective for annual reporting periods, including interim periods within those annual reporting periods, beginning after December 15, 2015. For all other entities, including the Company, it is effective for annual reporting periods beginning after December 15, 2015 and interim periods in annual reporting periods beginning after December 15, 2016. Early adoption is permitted for all entities. The Company is evaluating the impact of this guidance on its consolidated financial statements. |
ACCOUNTS_RECEIVABLE_Tables
ACCOUNTS RECEIVABLE - (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Receivables [Abstract] | |||||||||
Schedule of Accounts Receivable | The following table summarizes the Company's accounts receivables, net of allowances: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Accounts receivable | $ | 37,573 | $ | 36,431 | |||||
Allowances | (2,499 | ) | (2,494 | ) | |||||
Accounts receivable, net | $ | 35,074 | $ | 33,937 | |||||
INVENTORY_Tables
INVENTORY - (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Schedule of Current Inventory | The following table summarizes the Company's inventory, net of allowance: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Finished goods | $ | 80,500 | $ | 78,331 | |||||
Inventory allowances | (27,321 | ) | (25,714 | ) | |||||
Inventory, net | $ | 53,179 | $ | 52,617 | |||||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS - (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||
Schedule of Intangible Assets and Goodwill | Goodwill and intangible assets comprise the following: | ||||||||||||||
As of March 31, 2015 | |||||||||||||||
Estimated | Gross | Accumulated | Net | ||||||||||||
Useful Lives | Amortization | ||||||||||||||
Goodwill | — | $ | 121,814 | $ | — | $ | 121,814 | ||||||||
Indefinite-lived intangible assets: | |||||||||||||||
Trademarks | — | 12,900 | — | 12,900 | |||||||||||
In-process research and development | — | 900 | — | 900 | |||||||||||
Other | — | 278 | — | 278 | |||||||||||
Subtotal | 14,078 | — | 14,078 | ||||||||||||
Subject to amortization | |||||||||||||||
Developed technology | 4 - 6 years | 62,000 | (47,906 | ) | 14,094 | ||||||||||
Licensed technology | 4 - 6 years | 52,600 | (52,213 | ) | 387 | ||||||||||
Customer relationships | 4 - 7 years | 29,700 | (19,623 | ) | 10,077 | ||||||||||
Patents and other | 2 - 17 years | 1,432 | (1,060 | ) | 372 | ||||||||||
Subtotal | 145,732 | (120,802 | ) | 24,930 | |||||||||||
Total | $ | 281,624 | $ | (120,802 | ) | $ | 160,822 | ||||||||
As of December 31, 2014 | |||||||||||||||
Estimated | Gross | Accumulated | Net | ||||||||||||
Useful Lives | Amortization | ||||||||||||||
Goodwill | — | $ | 121,814 | $ | — | $ | 121,814 | ||||||||
Indefinite-lived intangible assets: | |||||||||||||||
Trademarks | — | 12,900 | — | 12,900 | |||||||||||
In-process research and development | — | 900 | — | 900 | |||||||||||
Other | — | 278 | — | 278 | |||||||||||
Subtotal | 14,078 | — | 14,078 | ||||||||||||
Subject to amortization | |||||||||||||||
Developed technology | 4 - 6 years | 62,000 | (46,460 | ) | 15,540 | ||||||||||
Licensed technology | 4 - 6 years | 52,600 | (52,175 | ) | 425 | ||||||||||
Customer relationships | 4 - 7 years | 29,700 | (18,563 | ) | 11,137 | ||||||||||
Patents and other | 2 - 17 years | 1,414 | (985 | ) | 429 | ||||||||||
Subtotal | 145,714 | (118,183 | ) | 27,531 | |||||||||||
Total | $ | 281,606 | $ | (118,183 | ) | $ | 163,423 | ||||||||
Schedule of Expected Amortization Expense | As of March 31, 2015, the expected amortization expense for the remainder of 2015 and the following four years and thereafter is as follows: | ||||||||||||||
31-Mar-15 | |||||||||||||||
2015 | $ | 7,657 | |||||||||||||
2016 | 10,209 | ||||||||||||||
2017 | 6,595 | ||||||||||||||
2018 | 100 | ||||||||||||||
2019 and thereafter | 369 | ||||||||||||||
Total | $ | 24,930 | |||||||||||||
OTHER_ASSETS_Tables
OTHER ASSETS - (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Schedule of Other Assets | Other assets comprises the following: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Surgical instruments, net | $ | 20,684 | $ | 21,392 | |||||
Restricted cash | 7,959 | 8,114 | |||||||
Other | 146 | 166 | |||||||
Total | $ | 28,789 | $ | 29,672 | |||||
ACCRUED_EXPENSES_Tables
ACCRUED EXPENSES - (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Schedule of Accrued Expenses | Accrued expenses consist of the following: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Accrued commissions | $ | 4,315 | $ | 4,942 | |||||
Accrued royalties | 2,123 | 2,464 | |||||||
Other | 3,614 | 2,671 | |||||||
Total | $ | 10,052 | $ | 10,077 | |||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION - (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Schedule of stock-based compensation expense | The Company recognized the following stock-based compensation expense related to employees and non-employees: | |||||||||||||
Three Months Ended March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Cost of revenue | $ | 181 | $ | 7 | ||||||||||
Research, development, and engineering | 149 | 21 | ||||||||||||
Sales and marketing | 756 | 197 | ||||||||||||
General and administrative | 815 | 150 | ||||||||||||
$ | 1,901 | $ | 375 | |||||||||||
Employees | $ | 1,827 | $ | 269 | ||||||||||
Non-employees | 74 | 106 | ||||||||||||
Total | $ | 1,901 | $ | 375 | ||||||||||
Schedule of employee stock option plan activity | A summary of stock option plans activity during the three months ended March 31, 2015 is as follows: | |||||||||||||
Shares | Weighted- | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Exercise | Remaining | Value (1) | ||||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
(years) | ||||||||||||||
Outstanding at December 31, 2014 | 4,277,229 | $ | 9.55 | 5.83 | $ | 48,418 | ||||||||
Granted | 32,921 | 18.89 | ||||||||||||
Exercised | (278,704 | ) | 7.11 | |||||||||||
Expired | — | — | ||||||||||||
Forfeited | (8,240 | ) | 11.54 | |||||||||||
Outstanding at March 31, 2015(2) | 4,023,206 | $ | 9.79 | 5.81 | $ | 49,243 | ||||||||
Vested or expected to vest: | ||||||||||||||
At March 31, 2015(3) | 3,806,103 | $ | 9.71 | 5.72 | $ | 46,985 | ||||||||
Vested: | ||||||||||||||
At March 31, 2015 | 2,046,172 | $ | 8.09 | 4.25 | $ | 28,582 | ||||||||
-1 | Calculated using the estimated per-share fair market value of the Company's common stock on March 31, 2015 and December 31, 2014, which was $22.05, and $20.87, respectively. | |||||||||||||
-2 | The total includes 993,472 performance-based options at March 31, 2015. | |||||||||||||
-3 | Outstanding options, net of forfeiture rate. |
NET_LOSS_PER_SHARE_Tables
NET LOSS PER SHARE - (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted loss per share attributable to the Company’s common stockholders: | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Net loss per common share: | |||||||||
Net loss | $ | (14,285 | ) | $ | (14,747 | ) | |||
Less: accretion and adjustment of Series A Preferred and Series B Preferred | — | (1,180 | ) | ||||||
Net loss attributable to common stockholders | $ | (14,285 | ) | $ | (15,927 | ) | |||
Basic and diluted loss per common share | |||||||||
Basic and diluted weighted average common shares outstanding | 38,739,798 | 22,523,358 | |||||||
Basic and diluted loss per common share | $ | (0.37 | ) | $ | (0.71 | ) | |||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Diluted loss per share for the three months ended March 31, 2015 and 2014 does not reflect the following weighted average potential common shares, as the effect would be antidilutive: | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Series A Preferred and Series B Preferred | — | 5,577,016 | |||||||
Stock options | 4,023,206 | 3,919,000 | |||||||
Restricted stock units | 765,023 | 576,132 | |||||||
SEGMENT_AND_GEOGRAPHICAL_CONCE1
SEGMENT AND GEOGRAPHICAL CONCENTRATION - (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Schedule of Revenue by Geographic Area | The following table represents total revenue by geographic area, based on the location of the customer: | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
United States | $ | 35,162 | $ | 29,765 | |||||
International | 15,262 | 12,486 | |||||||
Total | $ | 50,424 | $ | 42,251 | |||||
Schedule of Revenue by Products | The following table represents domestic revenue by procedure category: | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Complex spine | $ | 14,221 | $ | 11,930 | |||||
Minimally invasive | 5,809 | 4,739 | |||||||
Degenerative | 15,132 | 13,096 | |||||||
35,162 | 29,765 | ||||||||
International | 15,262 | 12,486 | |||||||
Total | $ | 50,424 | $ | 42,251 | |||||
GENERAL_AND_SUMMARY_OF_SIGNIFI2
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Feb. 02, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Feb. 12, 2015 |
Significant Accounting Policies [Line Items] | ||||
Stock Issued During Period, Shares, Shares Held by Company and Shareholders (in share) | 6,044,990 | |||
Share Price (in usd per share) | $18.75 | |||
Stock issued during the period (in shares) | 2,044,990 | |||
Stock Issued During Period, Shares, Shares Held by Shareholders (in shares) | 4,000,000 | |||
Proceeds from Issuance of Common Stock | $35,400 | $36,455 | $1,939 | |
Underwriters [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Share Price (in usd per share) | $18.75 | |||
Stock Issued During Period, Shares, Issued for Services (in shares) | 906,748 |
ACCOUNTS_RECEIVABLE_Details
ACCOUNTS RECEIVABLE - (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ||
Accounts receivable | $37,573 | $36,431 |
Allowances | -2,499 | -2,494 |
Accounts receivable, net | $35,074 | $33,937 |
INVENTORY_Details
INVENTORY - (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ||
Finished goods | $80,500 | $78,331 |
Inventory allowances | -27,321 | -25,714 |
Inventory, net | 53,179 | 52,617 |
Surgical and Medical Instruments [Member] | ||
Inventory [Line Items] | ||
Inventory, net | $8,545 | $8,491 |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS - (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Schedule of Intangible Asset by Major Class [Line Items] | |||
Goodwill | $121,814 | $121,814 | |
Indefinite-lived intangible assets | 14,078 | 14,078 | |
Subject to amortization, Gross | 145,732 | 145,714 | |
Accumulated Amortization | -120,802 | -118,183 | |
Total | 24,930 | 27,531 | |
Intangible Assets, Gross | 281,624 | 281,606 | |
Intangible Assets, Net | 160,822 | 163,423 | |
Amortization expense | 2,622 | 7,551 | |
Developed Technology Rights [Member] | |||
Schedule of Intangible Asset by Major Class [Line Items] | |||
Subject to amortization, Gross | 62,000 | 62,000 | |
Accumulated Amortization | -47,906 | -46,460 | |
Total | 14,094 | 15,540 | |
Licensed technology [Member] | |||
Schedule of Intangible Asset by Major Class [Line Items] | |||
Subject to amortization, Gross | 52,600 | 52,600 | |
Accumulated Amortization | -52,213 | -52,175 | |
Total | 387 | 425 | |
Customer Relationships [Member] | |||
Schedule of Intangible Asset by Major Class [Line Items] | |||
Subject to amortization, Gross | 29,700 | 29,700 | |
Accumulated Amortization | -19,623 | -18,563 | |
Total | 10,077 | 11,137 | |
Patents and Other [Member] | |||
Schedule of Intangible Asset by Major Class [Line Items] | |||
Subject to amortization, Gross | 1,432 | 1,414 | |
Accumulated Amortization | -1,060 | -985 | |
Total | 372 | 429 | |
Trademarks [Member] | |||
Schedule of Intangible Asset by Major Class [Line Items] | |||
Indefinite-lived intangible assets | 12,900 | 12,900 | |
In-process research and development [Member] | |||
Schedule of Intangible Asset by Major Class [Line Items] | |||
Indefinite-lived intangible assets | 900 | 900 | |
Other [Member] | |||
Schedule of Intangible Asset by Major Class [Line Items] | |||
Indefinite-lived intangible assets | $278 | $278 | |
Minimum [Member] | Developed Technology Rights [Member] | |||
Schedule of Intangible Asset by Major Class [Line Items] | |||
Estimated Useful Lives | 4 years | 4 years | |
Minimum [Member] | Licensed technology [Member] | |||
Schedule of Intangible Asset by Major Class [Line Items] | |||
Estimated Useful Lives | 4 years | 4 years | |
Minimum [Member] | Customer Relationships [Member] | |||
Schedule of Intangible Asset by Major Class [Line Items] | |||
Estimated Useful Lives | 4 years | 4 years | |
Minimum [Member] | Patents and Other [Member] | |||
Schedule of Intangible Asset by Major Class [Line Items] | |||
Estimated Useful Lives | 2 years | 2 years | |
Maximum [Member] | Developed Technology Rights [Member] | |||
Schedule of Intangible Asset by Major Class [Line Items] | |||
Estimated Useful Lives | 6 years | 6 years | |
Maximum [Member] | Licensed technology [Member] | |||
Schedule of Intangible Asset by Major Class [Line Items] | |||
Estimated Useful Lives | 6 years | 6 years | |
Maximum [Member] | Customer Relationships [Member] | |||
Schedule of Intangible Asset by Major Class [Line Items] | |||
Estimated Useful Lives | 7 years | 7 years | |
Maximum [Member] | Patents and Other [Member] | |||
Schedule of Intangible Asset by Major Class [Line Items] | |||
Estimated Useful Lives | 17 years | 17 years |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS Schedule of Expected Amortization Expense (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2015 | $7,657 | |
2016 | 10,209 | |
2017 | 6,595 | |
2018 | 100 | |
2019 and thereafter | 369 | |
Total | $24,930 | $27,531 |
OTHER_ASSETS_Details
OTHER ASSETS - (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Surgical instruments, net | $20,684 | $21,392 | |
Deposits Assets, Noncurrent | 7,959 | 8,114 | |
Other | 146 | 166 | |
Total | 28,789 | 29,672 | |
Surgical instruments accumulated amortization | 20,374 | 18,610 | |
Amortization expense | 2,155 | 1,308 | |
Escrow Deposits [Member] | Other Assets [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted Cash and Cash Equivalents | 6,700 | ||
Demand Deposits [Member] | Other Assets [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted Cash and Cash Equivalents | $1,290 | $1,447 |
ACCRUED_EXPENSES_Details
ACCRUED EXPENSES - (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accrued commissions | $4,315 | $4,942 |
Accrued royalties | 2,123 | 2,464 |
Other | 3,614 | 2,671 |
Total | $10,052 | $10,077 |
STOCKBASED_COMPENSATION_Alloca
STOCK-BASED COMPENSATION - Allocation of Share-based Compensation (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated stock-based compensation expense | $1,901,000 | $375,000 |
Cost of Revenue [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated stock-based compensation expense | 181,000 | 7,000 |
Research and Development Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated stock-based compensation expense | 149,000 | 21,000 |
Selling and Marketing Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated stock-based compensation expense | 756,000 | 197,000 |
General and Administrative Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated stock-based compensation expense | 815,000 | 150,000 |
Employee [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated stock-based compensation expense | 1,827,000 | 269,000 |
Nonemployee [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated stock-based compensation expense | $74,000 | $106,000 |
STOCKBASED_COMPENSATION_Summar
STOCK-BASED COMPENSATION - Summary of Stock Option Activity (Details) (USD $) | 3 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding Beginning Balance, Shares | 4,277,229 | |||
Granted, Shares | 32,921 | |||
Exercised, Shares | -278,704 | |||
Expired, Shares | 0 | |||
Forfeited, Shares | -8,240 | |||
Outstanding Ending Balance, Shares | 4,023,206 | [1] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Beginning, Weighted-Average Exercise Price (in usd per share) | $9.55 | |||
Granted, Weighted-Average Exercise Price (in usd per share) | $18.89 | |||
Exercised, Weighted-Average Exercise Price (in usd per share) | $7.11 | |||
Expired, Weighted-Average Exercise Price (in usd per share) | $0 | |||
Forfeited, Weighted-Average Exercise Price (in usd per share) | $11.54 | |||
Ending, Weighted-Average Exercise Price (in usd per share) | $9.79 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Outstanding, Weighted- Average Remaining Contractual Term (years) | 5 years 9 months 22 days | 5 years 9 months 29 days | ||
Outstanding, Weighted- Average Remaining Contractual Term (years) | 5 years 9 months 22 days | 5 years 9 months 29 days | ||
Outstanding, Aggregate Intrinsic Value | $48,418 | [2] | ||
Outstanding, Aggregate Intrinsic Value | 49,243 | [2] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||||
Vested or expected to vest, shares | 3,806,103 | [3] | ||
Vested or expected to vest, Weighted-Average Exercise Price (in usd per share) | $9.71 | |||
Vested or expected to vest, Weighted-Average Remaining Contractual Term | 5 years 8 months 19 days | |||
Vested or expected to vest, Aggregate Intrinsic Value | 46,985 | [2] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested [Abstract] | ||||
Vested, shares | 2,046,172 | |||
Vested, Weighted-Average Exercise Price (in usd per share) | $8.09 | |||
Vested, Weighted-Average Remaining Contractual Term | 4 years 3 months | |||
Vested, Aggregate Intrinsic Value | $28,582 | [2] | ||
Fair value valuation, estimated fair market value of stock (in dollars per share) | $22.05 | $20.87 | ||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding Ending Balance, Shares | 993,472 | |||
[1] | The total includes 993,472 performance-based options at March 31, 2015. | |||
[2] | Calculated using the estimated per-share fair market value of the Company's common stock on March 31, 2015 and December 31, 2014, which was $22.05, and $20.87, respectively. | |||
[3] | Outstanding options, net of forfeiture rate. |
STOCKBASED_COMPENSATION_Narrat
STOCK-BASED COMPENSATION - Narrative (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Stock Plans | 4 | |
Employee Stock Purchase Plans, Shares Reserved for Future Issuance (in shares) | 1,264,523 | |
Allocated stock-based compensation expense | $1,901,000 | $375,000 |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated stock-based compensation expense | 537,000 | 375,000 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 765,023 | |
Allocated stock-based compensation expense | 1,297,000 | 0 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $6,910,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 4 months 24 days |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES - (Details) (USD $) | 3 Months Ended | 1 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Nov. 30, 2011 | |
Position | |||
Long-term Purchase Commitment [Line Items] | |||
Revenue from Grants | $790,000 | ||
Grant, Terms and Conditions, Required Increase in Workforce by Specified Date | 96 | ||
Unearned Grants | 790,000 | ||
Initial payment to acquire proprietary technology | 17,000 | 18,000 | |
Licensed technology [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Other Commitment | 1,613,000 | ||
Minimum contractual term | 5 years | ||
Licensed technology [Member] | Minimum [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Future maximum royalty payments | 2.00% | ||
Licensed technology [Member] | Maximum [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Future maximum royalty payments | 10.00% | ||
In Process Research and Development [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Future maximum royalty payments | 7.00% | ||
Initial payment to acquire proprietary technology | 100,000 | ||
Milestone payment one | 500,000 | ||
Milestone payment two | 2,000,000 | ||
Milestone payment three | 4,000,000 | ||
Milestone for milestone payment one | 10,000,000 | ||
Milestone for milestone payment two | 25,000,000 | ||
Milestone for milestone payment three | 50,000,000 | ||
Milestone for ending royalty payments, cumulative sales | 20,000,000 | ||
In Process Research and Development [Member] | Maximum [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Other Commitment | $13,350,000 |
RELATED_PARTIES_Details
RELATED PARTIES - (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Feb. 12, 2015 | Feb. 02, 2015 |
Related Party Transaction [Line Items] | ||||
Stock Issued During Period, Value, Issued for Services (in usd per share) | $18.75 | |||
Major Stockholder [Member] | Related Party Transaction, Management Service Fee [Member] | ||||
Related Party Transaction [Line Items] | ||||
General and administrative | $0 | $263 | ||
Underwriters [Member] | ||||
Related Party Transaction [Line Items] | ||||
Stock Issued During Period, Shares, Issued for Services (in shares) | 906,748 | |||
Stock Issued During Period, Value, Issued for Services (in usd per share) | $18.75 |
INCOME_TAXES_Details
INCOME TAXES - (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Income tax (benefit) expense | $23 | $24 |
Effective income tax rate, percent | -0.20% |
NET_LOSS_PER_SHARE_Details
NET LOSS PER SHARE - (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net loss | ($14,285) | ($14,747) |
Less: accretion and adjustment of Series A Preferred and Series B Preferred | 0 | |
Less: accretion and adjustment of Series A Preferred and Series B Preferred | -1,180 | |
Net loss attributable to stockholders | ($14,285) | ($15,927) |
Basic and diluted weighted average common shares outstanding | 38,739,798 | 22,523,358 |
Basic and diluted loss per common share (in dollars per share) | ($0.37) | ($0.71) |
NET_LOSS_PER_SHARE_Antidilutiv
NET LOSS PER SHARE - Antidilutive Shares (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Series A and B Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Earnings Per Share (in shares) | 0 | 5,577,016 |
Stock options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Earnings Per Share (in shares) | 4,023,206 | 3,919,000 |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Earnings Per Share (in shares) | 765,023 | 576,132 |
SEGMENT_AND_GEOGRAPHICAL_CONCE2
SEGMENT AND GEOGRAPHICAL CONCENTRATION - Narrative (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment | ||
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 1 | |
Revenue | $50,424 | $42,251 |
International [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 15,262 | 12,486 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 35,162 | 29,765 |
Sales Revenue, Net [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 50,424 | 42,251 |
Sales Revenue, Net [Member] | International [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 15,262 | 12,486 |
Sales Revenue, Net [Member] | United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 35,162 | 29,765 |
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | International [Member] | ||
Segment Reporting Information [Line Items] | ||
International revenue as a percentage of total revenue | 30.30% | |
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | United States [Member] | ||
Segment Reporting Information [Line Items] | ||
International revenue as a percentage of total revenue | 10.00% | |
Complex Spine Attributable to Minimally Invasive Surgery [Member] | United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $1,746 |
SEGMENT_AND_GEOGRAPHICAL_CONCE3
SEGMENT AND GEOGRAPHICAL CONCENTRATION - Revenues by Geographic Area (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment Reporting Information [Line Items] | ||
Revenue | $50,424 | $42,251 |
Sales Revenue, Net [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 50,424 | 42,251 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 35,162 | 29,765 |
United States [Member] | Sales Revenue, Net [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 35,162 | 29,765 |
International [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 15,262 | 12,486 |
International [Member] | Sales Revenue, Net [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $15,262 | $12,486 |
SEGMENT_AND_GEOGRAPHICAL_CONCE4
SEGMENT AND GEOGRAPHICAL CONCENTRATION - Revenues by Product (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue from External Customer [Line Items] | ||
Revenue | $50,424 | $42,251 |
United States [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue | 35,162 | 29,765 |
United States [Member] | Complex Spine [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue | 14,221 | 11,930 |
United States [Member] | Minimally Invasive [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue | 5,809 | 4,739 |
United States [Member] | Degenerative [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue | 15,132 | 13,096 |
International [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue | $15,262 | $12,486 |