SeaSpine (SPNE) 10-Q 5 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 01, 2017
Document Documentand Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	SPNE
Entity Registrant Name	SeaSpine Holdings Corporation
Entity Central Index Key	1,637,761
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		11,739,840

CONDENSED COMBINED STATEMENT OF

CONDENSED COMBINED STATEMENT OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Total revenue, net	$ 31,894	$ 31,399
Cost of goods sold	13,172	14,283
Gross profit	18,722	17,116
Selling, general and administrative	23,970	25,374
Research and development	3,050	2,753
Intangible amortization	792	1,281
Total operating expenses	27,812	29,408
Operating loss	(9,090)	(12,292)
Other income (expense), net	(13)	258
Loss before income taxes	(9,103)	(12,034)
Benefit for income taxes	0	(27)
Net loss	$ (9,103)	$ (12,007)
Net loss per share, basic and diluted	$ (0.79)	$ (1.08)
Weighted average shares used to compute basic and diluted net loss per share	11,586	11,167

CONDENSED COMBINED STATEMENTS O

CONDENSED COMBINED STATEMENTS OF COMPREHENSIVE LOSS Statement - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net loss	$ (9,103)	$ (12,007)
Foreign currency translation adjustments	81	190
Comprehensive loss	$ (9,022)	$ (11,817)

CONDENSED COMBINED BALANCE SHEE

CONDENSED COMBINED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 12,726	$ 14,566
Trade accounts receivable, net of allowances of $480 and $483	19,388	20,982
Inventories	42,993	45,299
Prepaid expenses and other current assets	2,307	1,813
Total current assets	77,414	82,660
Property, plant and equipment, net	21,122	21,863
Intangible assets, net	40,277	41,785
Other assets	831	857
Total assets	139,644	147,165
Current liabilities:
Accounts payable, trade	8,056	8,537
Accrued compensation	3,818	4,393
Accrued commissions	4,833	4,398
Short-term debt	67	445
Contingent consideration liabilities	1,497	2,855
Accrued expenses and other current liabilities	3,793	3,790
Total current liabilities	22,064	24,418
Long-term borrowings under credit facility	3,914	3,835
Contingent consideration liabilities	4,120	5,125
Other liabilities	2,892	2,810
Total liabilities	32,990	36,188
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.01 par value; 15,000 authorized; no shares issued and outstanding at March 31, 2017 and December 31, 2016	0	0
Common stock, $0.01 par value; 60,000 authorized; 11,737 and 11,258 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively	117	113
Additional paid-in capital	185,448	180,753
Accumulated other comprehensive income	1,353	1,272
Accumulated deficit	(80,264)	(71,161)
Total stockholders' equity	106,654	110,977
Total liabilities and stockholders' equity	$ 139,644	$ 147,165

CONDENSED COMBINED BALANCE SHE5

CONDENSED COMBINED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for trade accounts receivable	$ 480	$ 483
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	15,000,000	15,000,000
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	60,000,000	60,000,000
Common Stock, Shares, Issued	11,737,000	11,258,000
Common Stock, Shares, Outstanding	11,737,000	11,258,000

CONDENSED COMBINED STATEMENTS 6

CONDENSED COMBINED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
OPERATING ACTIVITIES:
Net loss	$ (9,103)	$ (12,007)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,715	3,162
Instrument replacement expense	494	589
Impairment of spinal hardware instruments	0	103
Provision for excess and obsolete inventories	1,091	2,525
Amortization of debt issuance costs	35	35
Deferred income tax provision (benefit)	18	(35)
Stock-based compensation	1,226	1,974
Loss from change in fair value of contingent consideration liabilities	185	0
Changes in assets and liabilities
Accounts receivable	1,623	2,551
Inventories	1,651	(1,022)
Prepaid expenses and other current assets	(491)	1,534
Other non-current assets	(20)	101
Accounts payable	(870)	(3,394)
Accrued commissions	435	(200)
Accrued expenses and other current liabilities	599	(277)
Other non-current liabilities	60	170
Net cash used in operating activities	(352)	(4,191)
INVESTING ACTIVITIES:
Purchases of property and equipment	(902)	(983)
Additions to technology assets	(200)	0
Net cash used in investing activities	(1,102)	(983)
FINANCING ACTIVITIES:
Repayments of short-term debt	378	0
Repurchases of common stock for income tax withheld upon vesting of restricted stock awards	(45)	(2)
Net cash used in financing activities	(423)	(2)
Effect of exchange rate changes on cash and cash equivalents	37	349
Net change in cash and cash equivalents	(1,840)	(4,827)
Cash and cash equivalents at beginning of period	14,566	33,429
Cash and cash equivalents at end of period	12,726	28,602
Non-cash operating activities:
Settlement of bonus in payment of restricted stock units	970	0
Non-cash investing activities:
Property and equipment in liabilities	1,032	998
Settlement of contingent closing consideration liabilities in connection with acquisition of business (see Note 8)	$ 2,548	$ 0

CONDENSED COMBINED STATEMENT O7

CONDENSED COMBINED STATEMENT OF EQUITY Statement - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]
Beginning Balance, Shares, Outstanding at Dec. 31, 2016	11,258,000	11,258,000
Beginning Balance at Dec. 31, 2016	$ 110,977	$ 113	$ 180,753	$ 1,272	$ (71,161)
Net loss	(9,103)				(9,103)
Foreign currency translation adjustment	81			81
Restricted stock awards issued, shares		136,000
Restricted stock awards/units issued	970	$ 1	969
Treasury Stock, Shares, Acquired		(7,000)
Treasury Stock, Value, Acquired, Cost Method	(45)		(45)
Stock Issued During Period, Shares, Acquisitions		350,000
Stock Issued During Period, Value, Acquisitions	2,548	$ 3	2,545
Stock-based compensation	$ 1,226		1,226
Ending Balance, Shares, Outstanding at Mar. 31, 2017	11,737,000	11,737,000
Ending Balance at Mar. 31, 2017	$ 106,654	$ 117	$ 185,448	$ 1,353	$ (80,264)

BUSINESS

BUSINESS	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BUSINESS	BUSINESS AND BASIS OF PRESENTATION Business SeaSpine Holdings Corporation was incorporated in Delaware on February 12, 2015 in connection with the spin-off of the orthobiologics and spinal hardware business of Integra LifeSciences Holdings Corporation, a diversified medical technology company. The spin-off occurred on July 1, 2015. Unless the context indicates otherwise, (i) references to "SeaSpine" or the "Company" refer to SeaSpine Holdings Corporation and its wholly-owned subsidiaries, and (ii) references to "Integra" refer to Integra LifeSciences Holdings Corporation and its subsidiaries other than SeaSpine. Basis of Presentation and Principle and Consolidation The Company prepared the unaudited interim condensed consolidated financial statements included in this report in accordance with accounting principles generally accepted in the U.S. (GAAP) for interim financial information and the rules and regulations of the Securities and Exchange Commission (SEC) related to quarterly reports on Form 10-Q. The Company’s financial statements are presented on a consolidated basis. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. The unaudited interim condensed consolidated financial statements do not include all information and disclosures required by GAAP for annual audited financial statements and should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2016 included in the Company’s Annual Report on Form 10-K filed with the SEC. In the opinion of management, the unaudited interim condensed consolidated financial statements included in this report have been prepared on the same basis as the Company's audited consolidated financial statements and include all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the financial position, results of operations, cash flows, and statement of equity for periods presented. The results for the three months ended March 31, 2017 are not necessarily indicative of the results expected for the full year. The condensed consolidated balance sheet as of December 31, 2016 was derived from the audited consolidated financial statements for the year ended December 31, 2016.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities, and the reported amounts of revenues and expenses. Significant estimates affecting amounts reported or disclosed in the consolidated financial statements include allowances for doubtful accounts receivable and sales returns and other credits, net realizable value of inventories, discount rates and estimated projected cash flows used to value and test impairments of identifiable intangible and long-lived assets, assumptions related to the timing and probability of the product launch dates, discount rates matched to the estimated timing of payments, and probability of success rates and discount adjustments on the related cash flows for contingent considerations in business combinations, depreciation and amortization periods for identifiable intangible and long-lived assets, computation of taxes, valuation allowances recorded against deferred tax assets, the valuation of stock-based compensation and loss contingencies. These estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the current circumstances. Actual results could differ from these estimates. Recent Accounting Standards Not Yet Adopted The Company qualifies as an “emerging growth company” (EGC) pursuant to the provisions of the Jumpstart Our Business Startups (JOBS) Act and elected to take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, 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, the Company will not have to adopt or comply with new or revised accounting standards until non-issuers are required to adopt or comply with such standards. In May 2014, the Financial Accounting Standards Board (FASB) issued Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) . The new standard provides a five-step approach to be applied to all contracts with customers. The new standard also requires expanded disclosures about revenue recognition. In July 2015, the FASB deferred for one year the effective date of the new standard, but early adoption is permitted as early as the original effective date of December 15, 2016. The new standard will be effective for the Company beginning on January 1, 2019, and for interim periods within annual periods beginning on January 1, 2020. The Company is in the process of evaluating of the accounting for determining the transaction price and the number of performance obligations under the new standard. Overall, the Company does not anticipate a material impact on its consolidated financial statements from the adoption of this new standard. In July 2015, the FASB issued Update No. 2015-11, Simplifying the Measurement of Inventory (Topic 330) . The new guidance requires an entity to measure inventory within the scope of the amendment at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for the Company beginning on January 1, 2017, and interim periods within annual periods beginning on January 1, 2018. Adoption of this new guidance is not expected to have a material effect on the Company’s consolidated financial statements. In February 2016, the FASB issued Update No. 2016-02, Leases (Topic 842) . The new standard requires lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms of greater than twelve months. It also changes the definition of a lease and expands the disclosure requirements of lease arrangements. The new standard must be adopted using the modified retrospective approach. The standard will be effective for the Company beginning on January 1, 2020, and interim periods within annual periods beginning on January 1, 2021, with early adoption permitted. The Company does not plan to early adopt and expects to apply the transition practical expedients allowed by the standard. Note 11 to the Condensed Consolidated Financial Statements provides details on the Company’s current lease arrangements. While the Company continues to evaluate the impact of this new standard on its consolidated financial statements, the Company expects the primary impact will be to record assets and obligations for current operating leases in the consolidated balance sheets. The Company is in the process of evaluating the impact on its results of operations and statements of cash flows. In August 2016, the FASB issued Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This new standard addresses eight specific cash flow issues related to cash receipts and cash payments with the objective of reducing the existing diversity of presentation and classification in the statement of cash flows. The new standard will be effective for the Company beginning on January 1, 2019, and interim periods within annual periods beginning on January 1, 2020. Early adoption is permitted and should be applied using a retrospective transition method to each period presented. The Company is in the process of evaluating the impact of this standard on its consolidated financial statements. Recently Adopted Accounting Standards In August 2014, the FASB issued Update No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . The amendment requires management to evaluate, for each annual and interim reporting period, whether there are conditions and events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date the financial statements are issued or are available to be issued. If substantial doubt is raised, additional disclosures around management’s plan to alleviate these doubts are required. This update became effective for all annual periods and interim reporting periods ending after December 15, 2016. The implementation of the amended guidance in 2016 did not have an impact on current disclosures in the Company's consolidated financial statements. In March 2016, the FASB issued Update No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . Under current accounting guidance an entity is required to report excess tax benefits and tax deficiencies to the extent of previous windfalls in equity when the tax benefit is realized. Excess settlements are currently reported as cash inflows from financing activities. The amendment requires that an entity present all excess tax benefits and all tax deficiencies as income tax expense or benefit in the statement of operations to be applied using a prospective transition method. Related tax settlements are to be presented as cash inflows from operating activities. The Company has the option to use either a prospective or retrospective transition method. The amendment removes the requirement to delay recognition of an excess tax benefit until the tax benefit is realized. A modified retrospective transition method must be applied. The Company elected to early adopt ASU 2016-09 as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. Amendments related to accounting for excess tax benefits (deficiencies) have been adopted prospectively, and recognition of excess tax benefits (deficiencies) against income tax expenses was immaterial for the year ended December 31, 2016. The Company elected to apply the change in classification for excess tax benefits in the statement of cash flows on a prospective basis, and elected to continue estimating stock-based compensation award forfeitures in determining the amount of compensation cost to be recognized each period. In January 2017, the FASB issued Update No. 2017-01, Business Combinations (Topic 805) : Clarifying the Definition of a Business . The amendments in this update provide a screen to determine when a set of transferred assets and activites is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the amendments in this Update (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. The Company early adopted this guidance as of December 31, 2016 and will apply the guidance on a prospective basis. Net Loss Per Share Basic and diluted net loss per share was calculated using the weighted-average number of shares of common stock outstanding during the period. The weighted average number of shares used to compute diluted net loss per share excludes any assumed exercise of stock options, and any assumed issuance of common stock under restricted stock units and the Employee Stock Purchase Plan as the effect would be antidilutive. Common stock equivalents of 3.3 million and 2.7 million shares for the three months ended March 31, 2017 and 2016, respectively, were excluded from the calculation because of their antidilutive effect.

DEBT AND INTEREST

DEBT AND INTEREST	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	DEBT AND INTEREST Credit Agreement On December 24, 2015, the Company entered into a three -year credit facility (the Credit Facility), with Wells Fargo Bank, National Association. The Credit Facility provides an asset-backed revolving line of credit of up to $30.0 million in borrowing capacity with a maturity date of December 24, 2018, which maturity date is subject to a one-time, one -year extension at the Company's election. In connection with the Credit Facility, the Company was required to become a guarantor and to provide a security interest in substantially all its assets for the benefit of the counterparty. Borrowings under the Credit Facility accrue interest at the rate then applicable to base rate loans (as customarily defined), unless and until converted into LIBOR rate loans (as customarily defined) in accordance with the terms of the Credit Facility. Borrowings bear interest at a floating annual rate equal to (a) during any month for which the Company's average excess availability (as customarily defined) is greater than $20.0 million , base rate plus (i) 1.25 percentage points for base rate loans and (ii) LIBOR rate plus 2.25 percentage points for LIBOR rate loans, (b) during any month for which the Company's average excess availability is greater than $10.0 million but less than or equal to $20.0 million , (i) base rate plus 1.50 percentage points for base rate loans and (ii) LIBOR rate plus 2.50 percentage points for LIBOR rate loans and (c) during any month for which the Company's average excess availability is less than or equal to $10.0 million , (i) base rate plus 1.75 percentage points for base rate loans and (ii) LIBOR rate plus 2.75 percentage points for LIBOR rate loans. The Company will also pay an unused line fee in an amount equal to 0.375% per annum of the unused Credit Facility amount. The unused line fee is due and payable on the first day of each month. In September 2016, the Company borrowed $3.3 million from the revolving line of credit. The Company elected to have the LIBOR rate apply to the amount borrowed with an interest period of six months commencing on September 28, 2016, which was further extended for another interest period of six months commencing on March 28, 2017. At March 31, 2017 , there was $3.9 million outstanding in total debt and $16.1 million borrowing capacity under the Credit Facility. Debt issuance costs and legal fees related to the Credit Facility totaling $0.4 million were recorded as a deferred asset and are being amortized ratably over the term of the arrangement. The Credit Facility contains various customary affirmative and negative covenants, including prohibiting the Company from incurring indebtedness without the lender’s consent. The Credit Facility also includes a financial covenant that requires the Company to maintain a minimum fixed charge coverage ratio of 1.10 to 1.00 for the applicable measurement period, if the Company's Total Liquidity (as defined in the Credit Facility) is less than $5.0 million . The Company was in compliance with all applicable covenants at March 31, 2017 . The Credit Facility also includes customary events of default, including events of default relating to non-payment of amounts due under the Credit Facility, material inaccuracy of representations and warranties, violation of covenants, bankruptcy and insolvency, failure to comply with health care laws, violation of certain of the Company’s existing agreements, and the occurrence of a change of control. Under the Credit Facility, if an event of default occurs, Wells Fargo Bank, National Association will have the right to terminate the commitments and accelerate the maturity of any loans outstanding. Insurance Premium Finance Agreements In July 2016, the Company entered into two insurance premium finance agreements (the Finance Agreements), with First Insurance Funding Corporation and AFCO Acceptance Corporation (the Lenders), under which the Lenders will pay premiums, taxes and fees to insurance companies on the Company's behalf for various insurance policies. Under the Finance Agreements, before the end of July 2017, the Company will pay to the Lenders the financed amount of $1.2 million with annual interest rates between 2% and 4% . The Company recorded the total amounts due to the Lenders as short-term debt on the balance sheet. At March 31, 2017 , there was $0.1 million outstanding under the Finance Agreements.

TRANSACTIONS WITH INTEGRA

TRANSACTIONS WITH INTEGRA	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
TRANSACTIONS WITH INTEGRA	TRANSACTIONS WITH INTEGRA Prior to the spin-off, and pursuant to certain supply agreements subsequent to the spin-off, SeaSpine purchased a portion of raw materials and finished goods from Integra for SeaSpine's Mozaik family of products, and SeaSpine contract manufactured certain finished goods for Integra. There were no purchases of raw materials and Mozaik product finished goods from Integra for the three months ended March 31, 2017 , and such purchases totaled $0.5 million for the three months ended March 31, 2016. The Company's sale of finished goods sold to Integra under its contract manufacturing arrangement for the three months ended March 31, 2017 totaled $0.2 million , and was immaterial for the three months ended March 31, 2016. Pursuant to a transition services agreement, Integra and SeaSpine provided certain services to one another following the spin-off, and Integra and SeaSpine will indemnify each other against certain liabilities arising from their respective businesses. Under this agreement, Integra provided the Company with certain support functions, including information technology, accounting and other financial functions, regulatory affairs and quality assurance, human resources and other administrative support. The Company incurred no costs under the agreement for the three months ended March 31, 2017 and approximately $0.1 million of costs under the agreement for the three months ended March 31, 2016. Subsequent to the spin-off, Integra also collected trade receivables from customers on behalf of the Company. The outstanding amount owed by Integra to SeaSpine was immaterial as of March 31, 2017 , and $0.3 million as of March 31, 2016.

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2017
Inventory, Net [Abstract]
INVENTORIES	INVENTORIES Inventories consisted of the following: March 31, 2017 December 31, 2016 (In thousands) Finished goods $ 29,618 $ 30,922 Work in process 10,283 10,554 Raw materials 3,092 3,823 $ 42,993 $ 45,299

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are stated at historical cost less accumulated depreciation and any impairment charges. The Company provides for depreciation using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the lesser of the lease term or the useful life. The cost of major additions and improvements is capitalized, while maintenance and repair costs that do not improve or extend the lives of the respective assets are charged to operations as incurred. The cost of computer software obtained for internal use is accounted for in accordance with the Accounting Standards Codification (ASC) 350-40, Internal-Use Software. The cost of purchased spinal hardware instruments which the Company consigns to hospitals and independent sales agents to support surgeries is initially capitalized as construction in progress. The amount is then reclassified to spinal hardware instrument sets and depreciation is initiated when instruments are put together in a newly built set with spinal implants, or directly expensed for the instruments that are used to replace damaged instruments in an existing set. The depreciation expense and direct expense for replacement instruments are recorded in selling, general and administrative expense. Property, plant and equipment balances and corresponding useful lives were as follows: March 31, 2017 December 31, 2016 Useful Lives (In thousands) Leasehold improvement $ 5,038 $ 5,003 Lease Term Machinery and production equipment 6,954 6,826 3-10 years Spinal hardware instrument sets 26,777 26,618 5 years Information systems and hardware 6,918 6,918 3-7 years Furniture and fixtures 1,058 1,058 3-5 years Construction in progress 7,768 7,828 Total 54,513 54,251 Less accumulated depreciation and amortization (33,391 ) (32,388 ) Property, plant and equipment, net $ 21,122 $ 21,863 Depreciation and amortization expenses totaled $1.0 million and $1.2 million for the three months ended March 31, 2017 and 2016, respectively. The cost of purchased instruments used to replace damaged instruments in existing sets and recorded directly to the instrument replacement expense totaled $0.5 million and $0.6 million for the three months ended March 31, 2017 and 2016, respectively.

IDENTIFIABLE INTANGIBLE ASSETS

IDENTIFIABLE INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
IDENTIFIABLE INTANGIBLE ASSETS	IDENTIFIABLE INTANGIBLE ASSETS Identifiable intangible assets are initially recorded at fair value at the time of acquisition, generally using an income or cost approach. The Company capitalizes costs incurred to renew or extend the term of recognized intangible assets and amortizes those costs over their expected useful lives. The components of the Company’s identifiable intangible assets were as follows: March 31, 2017 Weighted Average Life Cost Accumulated Amortization Net (Dollars in thousands) Product technology 12 years $ 40,769 $ (23,134 ) $ 17,635 Customer relationships 12 years 56,830 (34,188 ) 22,642 Trademarks/brand names — 300 (300 ) — $ 97,899 $ (57,622 ) $ 40,277 December 31, 2016 Weighted Average Life Cost Accumulated Amortization Net (Dollars in thousands) Product technology 12 years $ 40,569 $ (22,218 ) $ 18,351 Customer relationships 12 years 56,830 (33,396 ) 23,434 Trademarks/brand names — 300 (300 ) — $ 97,699 $ (55,914 ) $ 41,785 Annual amortization expense (including amounts reported in cost of goods sold) is expected to be approximately $6.8 million in 2017 , $6.5 million in 2018 , $5.8 million in 2019 , $4.9 million in 2020 and $4.9 million in 2021 . Amortization expense totaled $1.7 million and $2.0 million for the three months ended March 31, 2017 and 2016, respectively, and includes $0.9 million and $0.7 million , respectively, of amortization of product technology intangible assets that is presented within cost of goods sold.

BUSINESS COMBINATIONS (Notes)

BUSINESS COMBINATIONS (Notes)	3 Months Ended
	Mar. 31, 2017
Business Combinations [Abstract]
Business Combinations	BUSINESS COMBINATIONS In August 2016, the Company entered into an asset purchase agreement with N.L.T Spine Ltd. (NLT), and NLT Spine, Inc., a wholly owned subsidiary of NLT, pursuant to which the Company agreed to purchase certain of the assets of NLT’s medical device business, including substantially all of NLT’s medical device intellectual property related to the ownership, design, development, manufacture, marketing and commercial exploitation of certain expandable interbody devices. The acquisition was undertaken to increase the Company's product offering in expandable interbody devices. Upon the terms and subject to the conditions of the acquisition agreement, at the initial closing (as defined in the agreement), the Company entered into (i) an exclusive license agreement with NLT, pursuant to which the Company received an exclusive, worldwide license to make, use, import, offer for sale, sell and otherwise commercially exploit NLT’s expandable interbody device products , (ii) a transition services agreement with NLT, pursuant to which NLT agreed to provide certain services with respect to the continued development of the acquired intellectual property and (iii) a non-competition and non-solicitation agreement with NLT, pursuant to which NLT and its affiliates agreed not to compete with the Company with respect to the acquired intellectual property, subject to certain exceptions. The purchase price consisted of an initial cash payment to NLT of $1.0 million , which was paid on September 26, 2016 upon the initial closing, and the issuance of 350,000 shares of the Company’s common stock with the total fair value of $2.5 million at issuance in January 2017 as contingent closing consideration upon the satisfaction of certain conditions, including FDA 510(K) clearance of one of the acquired product technologies. In accordance with the terms of the asset purchase agreement, the number of shares issued was determined based on the volume weighted average closing price (VWAP) of the common stock during the 20 trading day period ending one trading day prior to the issuance date, subject to a minimum and maximum VWAP of $10.00 and $ 17.00 , respectively. The VWAP over such 20 -trading day period was $7.58 and therefore $10.00 was used. If NLT's subsequent sale of those shares of common stock results in aggregate net proceeds to NLT in excess of $3.5 million , then NLT must pay to the Company, in cash, an amount equal to one-half of the net proceeds in excess of $3.5 million . The Company is also obligated to pay up to a maximum of $5.0 million in milestone payments, payable at the Company's election in cash or in shares of its common stock, which are contingent on the Company's achievement of four independent events related to the commercialization of the acquired product technologies. Additionally, the Company is required to pay royalty payments, in cash, to NLT equal to declining (over time) percentages of the Company’s future net sales of certain of the acquired product technologies not to exceed $43.0 million in the aggregate. The Company has the option to terminate any future obligation to make royalty payments by making a one-time cash payment to NLT of $18.0 million . The Company accounted for this transaction as a business combination in accordance with ASC 805 Business Combinations , and as such, the assets acquired have been recorded at their respective fair values. There were no liabilities assumed. The determination of fair value for the identifiable intangible assets acquired requires extensive use of estimates and judgments. Significant estimates include, measurements estimating cash flows and determining the appropriate discount rate, which are considered Level 3 inputs, as defined using the fair value concepts defined in ASC 820. Intangible assets acquired were valued at $9.3 million as of the initial closing date and recorded as Product Technology intangible assets, which are being amortized ratably over a useful life of 10 years from the initial closing. Acquisition costs of $0.5 million incurred were recorded as selling, marketing and administrative expenses. The following table summarizes the estimated fair value of total consideration to be paid to NLT as of September 26, 2016, the date of the initial closing. The Company estimated the fair value of the contingent consideration, including contingent milestone payments and contingent royalty payments, using a probability weighted approach that considers the possible outcomes based on assumptions related to the timing and probability of the product launch dates, discount rates matched to the timing of payments, and probability of success rates and discount adjustments on the related cash flows. Subsequent to the acquisition date, at each reporting period, the contingent consideration liabilities will be remeasured at current fair value with changes to be recorded in the consolidated statements of operations. The total purchase price was allocated entirely to product technology intangible asset. (In thousands) Cash paid for purchase $ 1,000 Contingent closing consideration 2,930 Contingent milestone payments 2,310 Contingent royalty payments 3,010 Total purchase price $ 9,250 The unaudited pro forma financial information set forth below assumes that the NLT purchased assets had been acquired on January 1, 2016. The unaudited pro forma financial information includes the effect of estimated amortization charges for acquired intangible assets of $0.2 million for the three months ended March 31, 2016, and the estimated research and development expenses for the purchased assets of $0.3 million for the three months ended March 31, 2016. There was no adjustment to the total revenues. The unaudited pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of the periods presented. Three Months Ended March 31, (In thousands, except per share data) 2017 2016 Operating loss $ (9,090 ) $ (12,797 ) Net loss (9,103 ) (12,512 ) Net loss per share, basic and diluted $ (0.79 ) $ (1.12 ) Weighted average shares used to compute basic and diluted net loss per share 11,586 11,167

FAIR VALUE MEASUREMENTS (Notes)

FAIR VALUE MEASUREMENTS (Notes)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	FAIR VALUE MEASUREMENTS The fair values of the Company’s assets and liabilities, including contingent consideration liabilities, are measured at fair value on a recurring basis, and are determined under the fair value categories as follows (in thousands): Total Quoted Price in Active Market (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) March 31, 2017: Contingent consideration liabilities- current $ 1,497 $ — $ — $ 1,497 Contingent consideration liabilities- non-current 4,120 — — 4,120 Total contingent consideration $ 5,617 $ — $ — $ 5,617 Contingent consideration liabilities are classified within Level 3 of the fair value hierarchy because they use significant unobservable inputs. For those liabilities, fair value is determined using a probability-weighted discounted cash flow model, and the significant inputs which are not observable in the market. The significant inputs include assumptions related to the timing and probability of the product launch dates, discount rates matched to the timing of payments, and probability of success rates. The following table sets forth the changes in the estimated fair value of the Company’s liabilities measured on a recurring basis using significant unobservable inputs (Level 3) (in thousands). The gain from change in fair value of contingent closing consideration is the difference between the fair value based on assumptions, including the forecasted issuance date and stock price, as of December 31, 2016 and the fair value on January 31, 2017, the date on which the shares were actually issued to NLT. The loss from change in fair value of contingent milestone and royalty payments resulted from the passage of time and updated discount rates matched to the estimated timing of payments. Balance as of January 1, 2017 $ 7,980 Contingent consideration liabilities settled (2,548 ) Gain from change in fair value of contingent closing consideration recorded in other income (112 ) Loss from change in fair value of contingent milestone and royalty payments recorded in selling, general and administrative expenses 297 Fair value at March 31, 2017 $ 5,617

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION Equity Award Plans As of June 30, 2015, Integra had stock options, restricted stock awards, performance stock awards, contract stock awards and restricted stock units outstanding under three plans, the 2000 Equity Incentive Plan, the 2001 Equity Incentive Plan, and the 2003 Equity Incentive Plan. In connection with the spin-off, Integra equity awards granted to individuals who became employees of SeaSpine were converted to equity awards denominated in SeaSpine common stock. In general, each post-conversion award is subject to the same terms and conditions as were applicable to the pre-conversion award. In May 2015, the Company adopted the 2015 Incentive Award Plan (the 2015 Plan), under which the Company can grant its employees and non-employee directors incentive stock options and non-qualified stock options, restricted stock, performance stock, dividend equivalent rights, stock appreciation rights, stock payment awards and other incentive awards. The Company may issue up to 2,000,000 shares of its common stock under the 2015 Plan. On January 27, 2016, the Company's board of directors approved an amendment and restatement of the 2015 Plan, pursuant to which the share reserve was increased by 300,000 shares over the original share reserve under the 2015 Plan, and on March 30, 2016, the board of directors approved a second amendment and restatement of the 2015 Plan, pursuant to which the share reserve was increased by an additional 1,209,500 shares of common stock. The Company's stockholders approved such amendments and restatements on June 7, 2016. An aggregate of 3,509,500 shares are reserved for issuance under the second amended and restated 2015 Plan. As of March 31, 2017, there were 411,754 shares available to grant under the second amended and restated 2015 Plan. In 2016, the Company established the 2016 Employment Inducement Incentive Award Plan (the 2016 Plan). The plan is a broad-based incentive plan which allows for the issuance of stock-based awards, including non-qualified stock options, restricted stock awards, performance awards, restricted stock unit awards and stock appreciation rights, to any prospective officer or other employee who has not previously been an employee or director of SeaSpine or an affiliate or who is commencing employment with SeaSpine or an affiliate following a bona-fide period of non-employment by SeaSpine or an affiliate. An aggregate of 1,000,000 shares are reserved for issuance under the 2016 Plan. The Company has not awarded any shares under the 2016 Plan as of March 31, 2017. Restricted Stock Awards and Restricted Stock Units The Company expenses the fair value of restricted stock awards and restricted stock units on an accelerated basis over the vesting period or requisite service period, whichever is shorter. Stock-based compensation expense related to restricted stock awards, and restricted stock units includes an estimate for forfeitures. The expected forfeiture rate of all equity-based compensation is based on historical experience of pre-vesting forfeitures on awards by each homogenous group of shareowners and is estimated to be 12% annually for all non-executive employees for the three months ended March 31, 2017 and 10% annually for the three months ended March 31, 2016. There is no forfeiture rate applied for non-employee directors and executive employees as their pre-vesting forfeitures are anticipated to be highly unlikely. As individual grant awards become fully vested, stock-based compensation expense is adjusted to recognize actual forfeitures. During the three months ended March 31, 2017, the Company granted 3,982 shares of restricted stock awards to non-employee directors, and 730,802 shares of restricted stock units to employees, of which 131,523 shares were issued for bonuses earned under the annual incentive program for corporate and individual performance in 2016. As of March 31, 2017 , there was approximately $3.8 million of total unrecognized compensation expense related to the unvested portions of restricted stock awards and units. This cost is expected to be recognized over a weighted-average period of approximately 1.7 years . Stock Options Stock option grants to employees generally have requisite service periods of four years, and stock option grants to non-employee directors generally have a requisite service period of one year. Both are subject to graded vesting. The Company records stock-based compensation expense associated with stock options on an accelerated basis over the various vesting periods within each grant and based on their fair value at the date of grant using the Black-Scholes-Merton option pricing model. The following weighted-average assumptions were used in the calculation of fair value for options grants for the three months ended March 31, 2017 and 2016, respectively: Three Months Ended March 31, 2017 2016 Expected dividend yield 0 % 0 % Risk-free interest rate 2.0 % 1.5 % Expected volatility 35.7 % 38.6 % Expected term (in years) 5.1 5.1 The Company considered that it has never paid cash dividends and does not currently intend to pay cash dividends. The risk-free interest rates are derived from the U.S. Treasury yield curve in effect on the date of grant for instruments with a remaining term similar to the expected term of the options. Due to the Company’s limited historical data, the expected volatility is calculated based upon the historical volatility of comparable companies in the medical device industry whose share prices are publicly available for a sufficient period of time. The expected term of "plain vanilla" options is calculated using the simplified method as prescribed by accounting guidance for stock-based compensation. A "plain vanilla" option is an option with the following characteristics: (1) the option is granted at-the-money; (2) exercisability is conditional only on satisfaction of a service condition through the vesting date; (3) employees who terminate their service prior to vesting forfeit the options; (4) employees who terminate their service after vesting are granted limited time to exercise their stock options; and (5) the options are nontransferable and non-hedgeable. The expected term of any other option is based on disclosures from similar companies with similar grants. In addition, the Company applies an expected forfeiture rate when amortizing stock-based compensation expense. The expected forfeiture rate of stock options is based on historical experience of pre-vesting forfeitures on awards by each homogenous group of shareowners and is estimated to be 12% annually for all non-executive employees for the three months ended March 31, 2017 , and 10% annually for the three months ended March 31, 2016. There is no forfeiture rate applied for non-employee directors and executive employees as their pre-vesting forfeitures are anticipated to be highly unlikely. As individual grant awards become fully vested, stock-based compensation expense is adjusted to recognize actual forfeitures. There were 21,500 and 700,532 stock options granted during the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017 , there was approximately $2.1 million of total unrecognized compensation expense related to unvested stock options. This cost is expected to be recognized over a weighted-average period of approximately 1.3 years. Employee Stock Purchase Plan In May 2015, the Company adopted a 2015 Employee Stock Purchase Plan, which was amended in December 2015 (as amended, the ESPP). Under the ESPP, eligible employees may purchase shares of the Company’s common stock through payroll deductions of up to 15% of eligible compensation during an offering period. Generally, each offering will be for a period of twenty-four months as determined by the Company's board of directors. There are four six-month purchase periods in each offering period for contributions to be made and to be converted into shares at the end of the purchase period. In no event may an employee purchase more than 2,500 shares per purchase period based on the closing price on the first trading date of an offering period or more than $25,000 worth of stock during each calendar year. The purchase price for shares to be purchased under the ESPP is 85% of the lesser of the market price of the Company's common stock on the first trading date of an offering period or any purchase date during an offering period (June 30 or December 31). The ESPP authorizes the issuance of up to 400,000 shares of common stock pursuant to purchase rights granted to employees. The ESPP is intended to qualify as an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code of 1986, as amended (the IRC). The first offering period under the ESPP commenced on January 1, 2016 and will end on December 31, 2017. However, the ESPP contains a restart feature, such that if the market price of the stock at the end of any six-month purchase period is lower than the stock price at the original grant date of an offering period, that offering period will terminate after that purchase date, and a new two-year offering period will commence on the January 1 or July 1 immediately following the date the original offering period terminated. This restart feature was first triggered on the purchase date that occurred on June 30, 2016, such that the offering period that commenced on January 1, 2016 was terminated, and a new two-year offering period commenced on July 1, 2016. This restart feature was triggered again on the purchase date that occurred on December 31, 2016, such that the offering period that commenced on July 1, 2016 was terminated, and a new two-year offering period commenced on January 1, 2017 and will end on December 31, 2018. The Company applied share-based payment modification accounting to the awards that were initially valued at the grant date to determine the amount of any incremental fair value associated with the modified awards. The impact to stock-based compensation expense for modifications during the three months ended March 31, 2017 was immaterial. No shares of common stock were purchased under the ESPP during the three months ended March 31, 2017 . The Company recognized $0.1 million in expense related to the ESPP for each of the three months ended March 31, 2017 and 2016. The Company estimates the fair value of shares issued to employees under the ESPP using the Black-Scholes-Merton option-pricing model. The following weighted average assumptions were used in the calculation of fair value of shares under the ESPP at the grant date for the three months ended March 31, 2017 and 2016, respectively: Three Months Ended March 31, 2017 2016 Expected dividend yield 0 % 0 % Risk-free interest rate 1.0 % 0.7 % Expected volatility 28.5 % 32.4 % Expected term (in years) 1.3 1.3

LEASES

LEASES	3 Months Ended
	Mar. 31, 2017
Leases [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	LEASES The Company leases administrative, manufacturing, research, and distribution facilities and various manufacturing, office and transportation equipment through operating lease agreements. During the three months ended March 31, 2017, the Company entered into two lease agreements: one for an office located in Wayne, Pennsylvania, where the Company designs spinal hardware implants and which facilitates the Company's interactions with customers on the East Coast, and another for an office located in Lyon, France, which serves as the Company's international sales and marketing office. The terms of these two new lease agreements are through July 2022 and February 2026, respectively, and both have an average annual cost of less than $0.1 million . Future minimum lease payments under the Company's operating leases at March 31, 2017 are as follows: Payments Due by Calendar Year (In thousands) 2017 $ 1,478 2018 2,049 2019 2,096 2020 2,153 2021 2,208 Thereafter 8,458 Total minimum lease payments $ 18,442 Total rental expense for the three months ended March 31, 2017 and 2016 was $0.7 million and $0.8 million , respectively.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The following table provides a summary of the Company’s effective tax rate for the three months ended March 31, 2017 and 2016 : Three Months Ended March 31, 2017 2016 Reported tax rate — % 0.2 % The Company reported an immaterial amount of income tax benefit for the three months ended March 31, 2016. In addition, for all periods presented, the pretax losses incurred by the consolidated U.S. tax group received no corresponding tax benefit because the company has concluded that it is more likely than not that the Company will be unable to realize the value of any resulting deferred tax assets. The Company will continue to assess its position in future periods to determine if it is appropriate to reduce a portion of its valuation allowance in the future.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES In consideration for certain technology, manufacturing, distribution, and selling rights and licenses granted to the Company, the Company has agreed to pay royalties on sales of certain products sold by the Company. The royalty payments that the Company made under these agreements were included in the consolidated statements of operations as a component of cost of goods sold. The Company is subject to various claims, lawsuits and proceedings in the ordinary course of its business with respect to its products, its current or former employees, and involving commercial disputes, some of which have been settled by the Company. In the opinion of management, such claims are either adequately covered by insurance or otherwise indemnified, or are not expected, individually or in the aggregate, to result in a material adverse effect on the Company's financial condition. However, it is possible that the Company's results of operations, financial position and cash flows in a particular period could be materially affected by these contingencies. The Company accrues for loss contingencies when it is deemed probable that a loss has been incurred and that loss is estimable. The amounts accrued are based on the full amount of the estimated loss before considering insurance proceeds, and do not include an estimate for legal fees expected to be incurred in connection with the loss contingency. The Company does not believe there are any pending legal proceedings that would have a material impact on the Company’s financial position, cash flows or results of operations.

SEGMENT AND GEOGRAPHIC INFORMAT

SEGMENT AND GEOGRAPHIC INFORMATION	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
SEGMENT AND GEOGRAPHIC INFORMATION	SEGMENT AND GEOGRAPHIC INFORMATION Management assessed its segment reporting based on how it internally manages and reports the results of its business to its chief operating decision maker. The Company’s management reviews financial results, manages the business and allocates resources on an aggregate basis. Therefore, financial results are reported in a single operating segment: the development, manufacture and marketing of orthobiologics and spinal hardware. The Company reports revenue in two product categories: orthobiologics and spinal hardware. Orthobiologics products consist of a broad range of advanced and traditional bone graft substitutes that are designed to improve bone fusion rates following surgery. The spinal hardware portfolio consists of an extensive line of products for minimally invasive surgery, complex spine, deformity and degenerative procedures. Revenue, net consisted of the following: Three Months Ended March 31, 2017 2016 Orthobiologics $ 17,125 $ 16,658 Spinal hardware 14,769 14,741 Total revenue, net $ 31,894 $ 31,399 The Company attributes revenues to geographic areas based on the location of the customer. Total revenue by major geographic area consisted of the following: Three Months Ended March 31, 2017 2016 United States $ 28,611 $ 28,544 International 3,283 2,855 Total revenue, net $ 31,894 $ 31,399

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities, and the reported amounts of revenues and expenses. Significant estimates affecting amounts reported or disclosed in the consolidated financial statements include allowances for doubtful accounts receivable and sales returns and other credits, net realizable value of inventories, discount rates and estimated projected cash flows used to value and test impairments of identifiable intangible and long-lived assets, assumptions related to the timing and probability of the product launch dates, discount rates matched to the estimated timing of payments, and probability of success rates and discount adjustments on the related cash flows for contingent considerations in business combinations, depreciation and amortization periods for identifiable intangible and long-lived assets, computation of taxes, valuation allowances recorded against deferred tax assets, the valuation of stock-based compensation and loss contingencies. These estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the current circumstances. Actual results could differ from these estimates.
Recently Issued and Adopted Accounting Standards	Recent Accounting Standards Not Yet Adopted The Company qualifies as an “emerging growth company” (EGC) pursuant to the provisions of the Jumpstart Our Business Startups (JOBS) Act and elected to take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, 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, the Company will not have to adopt or comply with new or revised accounting standards until non-issuers are required to adopt or comply with such standards. In May 2014, the Financial Accounting Standards Board (FASB) issued Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) . The new standard provides a five-step approach to be applied to all contracts with customers. The new standard also requires expanded disclosures about revenue recognition. In July 2015, the FASB deferred for one year the effective date of the new standard, but early adoption is permitted as early as the original effective date of December 15, 2016. The new standard will be effective for the Company beginning on January 1, 2019, and for interim periods within annual periods beginning on January 1, 2020. The Company is in the process of evaluating of the accounting for determining the transaction price and the number of performance obligations under the new standard. Overall, the Company does not anticipate a material impact on its consolidated financial statements from the adoption of this new standard. In July 2015, the FASB issued Update No. 2015-11, Simplifying the Measurement of Inventory (Topic 330) . The new guidance requires an entity to measure inventory within the scope of the amendment at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for the Company beginning on January 1, 2017, and interim periods within annual periods beginning on January 1, 2018. Adoption of this new guidance is not expected to have a material effect on the Company’s consolidated financial statements. In February 2016, the FASB issued Update No. 2016-02, Leases (Topic 842) . The new standard requires lessees to recognize lease liabilities and corresponding right-of-use assets for all leases with lease terms of greater than twelve months. It also changes the definition of a lease and expands the disclosure requirements of lease arrangements. The new standard must be adopted using the modified retrospective approach. The standard will be effective for the Company beginning on January 1, 2020, and interim periods within annual periods beginning on January 1, 2021, with early adoption permitted. The Company does not plan to early adopt and expects to apply the transition practical expedients allowed by the standard. Note 11 to the Condensed Consolidated Financial Statements provides details on the Company’s current lease arrangements. While the Company continues to evaluate the impact of this new standard on its consolidated financial statements, the Company expects the primary impact will be to record assets and obligations for current operating leases in the consolidated balance sheets. The Company is in the process of evaluating the impact on its results of operations and statements of cash flows. In August 2016, the FASB issued Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This new standard addresses eight specific cash flow issues related to cash receipts and cash payments with the objective of reducing the existing diversity of presentation and classification in the statement of cash flows. The new standard will be effective for the Company beginning on January 1, 2019, and interim periods within annual periods beginning on January 1, 2020. Early adoption is permitted and should be applied using a retrospective transition method to each period presented. The Company is in the process of evaluating the impact of this standard on its consolidated financial statements. Recently Adopted Accounting Standards In August 2014, the FASB issued Update No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . The amendment requires management to evaluate, for each annual and interim reporting period, whether there are conditions and events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date the financial statements are issued or are available to be issued. If substantial doubt is raised, additional disclosures around management’s plan to alleviate these doubts are required. This update became effective for all annual periods and interim reporting periods ending after December 15, 2016. The implementation of the amended guidance in 2016 did not have an impact on current disclosures in the Company's consolidated financial statements. In March 2016, the FASB issued Update No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . Under current accounting guidance an entity is required to report excess tax benefits and tax deficiencies to the extent of previous windfalls in equity when the tax benefit is realized. Excess settlements are currently reported as cash inflows from financing activities. The amendment requires that an entity present all excess tax benefits and all tax deficiencies as income tax expense or benefit in the statement of operations to be applied using a prospective transition method. Related tax settlements are to be presented as cash inflows from operating activities. The Company has the option to use either a prospective or retrospective transition method. The amendment removes the requirement to delay recognition of an excess tax benefit until the tax benefit is realized. A modified retrospective transition method must be applied. The Company elected to early adopt ASU 2016-09 as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. Amendments related to accounting for excess tax benefits (deficiencies) have been adopted prospectively, and recognition of excess tax benefits (deficiencies) against income tax expenses was immaterial for the year ended December 31, 2016. The Company elected to apply the change in classification for excess tax benefits in the statement of cash flows on a prospective basis, and elected to continue estimating stock-based compensation award forfeitures in determining the amount of compensation cost to be recognized each period. In January 2017, the FASB issued Update No. 2017-01, Business Combinations (Topic 805) : Clarifying the Definition of a Business . The amendments in this update provide a screen to determine when a set of transferred assets and activites is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. If the screen is not met, the amendments in this Update (1) require that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output and (2) remove the evaluation of whether a market participant could replace missing elements. The Company early adopted this guidance as of December 31, 2016 and will apply the guidance on a prospective basis.
Earnings Per Share, Policy	Basic and diluted net loss per share was calculated using the weighted-average number of shares of common stock outstanding during the period. The weighted average number of shares used to compute diluted net loss per share excludes any assumed exercise of stock options, and any assumed issuance of common stock under restricted stock units and the Employee Stock Purchase Plan as the effect would be antidilutive. Common stock equivalents of 3.3 million and 2.7 million shares for the three months ended March 31, 2017 and 2016, respectively, were excluded from the calculation because of their antidilutive effect.

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2017
Inventory, Net [Abstract]
Schedule of Inventory, Net	Inventories consisted of the following: March 31, 2017 December 31, 2016 (In thousands) Finished goods $ 29,618 $ 30,922 Work in process 10,283 10,554 Raw materials 3,092 3,823 $ 42,993 $ 45,299

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, plant and equipment balances and corresponding useful lives were as follows: March 31, 2017 December 31, 2016 Useful Lives (In thousands) Leasehold improvement $ 5,038 $ 5,003 Lease Term Machinery and production equipment 6,954 6,826 3-10 years Spinal hardware instrument sets 26,777 26,618 5 years Information systems and hardware 6,918 6,918 3-7 years Furniture and fixtures 1,058 1,058 3-5 years Construction in progress 7,768 7,828 Total 54,513 54,251 Less accumulated depreciation and amortization (33,391 ) (32,388 ) Property, plant and equipment, net $ 21,122 $ 21,863

IDENTIFIABLE INTANGIBLE ASSETS

IDENTIFIABLE INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Components of Company's Identifiable Intangible Assets	The components of the Company’s identifiable intangible assets were as follows: March 31, 2017 Weighted Average Life Cost Accumulated Amortization Net (Dollars in thousands) Product technology 12 years $ 40,769 $ (23,134 ) $ 17,635 Customer relationships 12 years 56,830 (34,188 ) 22,642 Trademarks/brand names — 300 (300 ) — $ 97,899 $ (57,622 ) $ 40,277 December 31, 2016 Weighted Average Life Cost Accumulated Amortization Net (Dollars in thousands) Product technology 12 years $ 40,569 $ (22,218 ) $ 18,351 Customer relationships 12 years 56,830 (33,396 ) 23,434 Trademarks/brand names — 300 (300 ) — $ 97,699 $ (55,914 ) $ 41,785

BUSINESS COMBINATIONS (Tables)

BUSINESS COMBINATIONS (Tables)	3 Months Ended
	Mar. 31, 2017
Business Combinations [Abstract]
Schedule of Business Acquisitions, by Acquisition	The following table summarizes the estimated fair value of total consideration to be paid to NLT as of September 26, 2016, the date of the initial closing. The Company estimated the fair value of the contingent consideration, including contingent milestone payments and contingent royalty payments, using a probability weighted approach that considers the possible outcomes based on assumptions related to the timing and probability of the product launch dates, discount rates matched to the timing of payments, and probability of success rates and discount adjustments on the related cash flows. Subsequent to the acquisition date, at each reporting period, the contingent consideration liabilities will be remeasured at current fair value with changes to be recorded in the consolidated statements of operations. The total purchase price was allocated entirely to product technology intangible asset. (In thousands) Cash paid for purchase $ 1,000 Contingent closing consideration 2,930 Contingent milestone payments 2,310 Contingent royalty payments 3,010 Total purchase price $ 9,250
Business Acquisition, Pro Forma Information	The unaudited pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of the periods presented. Three Months Ended March 31, (In thousands, except per share data) 2017 2016 Operating loss $ (9,090 ) $ (12,797 ) Net loss (9,103 ) (12,512 ) Net loss per share, basic and diluted $ (0.79 ) $ (1.12 ) Weighted average shares used to compute basic and diluted net loss per share 11,586 11,167

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	The fair values of the Company’s assets and liabilities, including contingent consideration liabilities, are measured at fair value on a recurring basis, and are determined under the fair value categories as follows (in thousands): Total Quoted Price in Active Market (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) March 31, 2017: Contingent consideration liabilities- current $ 1,497 $ — $ — $ 1,497 Contingent consideration liabilities- non-current 4,120 — — 4,120 Total contingent consideration $ 5,617 $ — $ — $ 5,617
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]	The following table sets forth the changes in the estimated fair value of the Company’s liabilities measured on a recurring basis using significant unobservable inputs (Level 3) (in thousands). The gain from change in fair value of contingent closing consideration is the difference between the fair value based on assumptions, including the forecasted issuance date and stock price, as of December 31, 2016 and the fair value on January 31, 2017, the date on which the shares were actually issued to NLT. The loss from change in fair value of contingent milestone and royalty payments resulted from the passage of time and updated discount rates matched to the estimated timing of payments. Balance as of January 1, 2017 $ 7,980 Contingent consideration liabilities settled (2,548 ) Gain from change in fair value of contingent closing consideration recorded in other income (112 ) Loss from change in fair value of contingent milestone and royalty payments recorded in selling, general and administrative expenses 297 Fair value at March 31, 2017 $ 5,617

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	Stock option grants to employees generally have requisite service periods of four years, and stock option grants to non-employee directors generally have a requisite service period of one year. Both are subject to graded vesting. The Company records stock-based compensation expense associated with stock options on an accelerated basis over the various vesting periods within each grant and based on their fair value at the date of grant using the Black-Scholes-Merton option pricing model. The following weighted-average assumptions were used in the calculation of fair value for options grants for the three months ended March 31, 2017 and 2016, respectively: Three Months Ended March 31, 2017 2016 Expected dividend yield 0 % 0 % Risk-free interest rate 2.0 % 1.5 % Expected volatility 35.7 % 38.6 % Expected term (in years) 5.1 5.1
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block]	The Company estimates the fair value of shares issued to employees under the ESPP using the Black-Scholes-Merton option-pricing model. The following weighted average assumptions were used in the calculation of fair value of shares under the ESPP at the grant date for the three months ended March 31, 2017 and 2016, respectively: Three Months Ended March 31, 2017 2016 Expected dividend yield 0 % 0 % Risk-free interest rate 1.0 % 0.7 % Expected volatility 28.5 % 32.4 % Expected term (in years) 1.3 1.3

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2017
Leases [Abstract]
Schedule of Future Minimum Lease Payments for Capital Leases	Future minimum lease payments under the Company's operating leases at March 31, 2017 are as follows: Payments Due by Calendar Year (In thousands) 2017 $ 1,478 2018 2,049 2019 2,096 2020 2,153 2021 2,208 Thereafter 8,458 Total minimum lease payments $ 18,442

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Schedule of effective income tax rate reconciliation	The following table provides a summary of the Company’s effective tax rate for the three months ended March 31, 2017 and 2016 : Three Months Ended March 31, 2017 2016 Reported tax rate — % 0.2 %

SEGMENT AND GEOGRAPHIC INFORM31

SEGMENT AND GEOGRAPHIC INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Total Revenue By Major Geographic Area	Revenue, net consisted of the following: Three Months Ended March 31, 2017 2016 Orthobiologics $ 17,125 $ 16,658 Spinal hardware 14,769 14,741 Total revenue, net $ 31,894 $ 31,399 The Company attributes revenues to geographic areas based on the location of the customer. Total revenue by major geographic area consisted of the following: Three Months Ended March 31, 2017 2016 United States $ 28,611 $ 28,544 International 3,283 2,855 Total revenue, net $ 31,894 $ 31,399

SUMMARY OF SIGNIFICANT ACCOUN32

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Narrative (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Accounting Policies [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	3,300	2,700
Weighted Average Number of Shares Outstanding, Basic and Diluted	11,586	11,167

DEBT AND INTEREST Credit Agreem

DEBT AND INTEREST Credit Agreement (Details)	Sep. 30, 2016USD ($)	Dec. 24, 2015USD ($)	Mar. 31, 2017USD ($)
Line of Credit Facility [Line Items]
Line of Credit , Increase (Decrease)	$ 3,300,000
Document Period End Date			Mar. 31, 2017
Credit Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Expiration Period		3 years
Line Of Credit Facility, Extension Period		1 year
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage			0.375%
Unamortized Debt Issuance Expense		$ 400,000
Debt Instrument, Covenant, Fixed Charge Ratio, Minimum			1.1
Debt Instrument, Covenant Description, Required Liquidity			$ 5,000,000
Credit Agreement [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 30,000,000
Long-term Line of Credit			3,900,000
Line of Credit Facility, Remaining Borrowing Capacity			$ 16,100,000
Credit Agreement, Contingent Interest Rate Three [Member] | Base Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate			1.75%
Credit Agreement, Contingent Interest Rate Three [Member] | London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate			2.75%
Credit Agreement. Contingent Interest Rate Two [Member] | Base Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate			1.50%
Credit Agreement. Contingent Interest Rate Two [Member] | London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate			2.50%
Credit Agreement, Contingent Interest Rate One [Member] | Base Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate			1.25%
Credit Agreement, Contingent Interest Rate One [Member] | London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate			2.25%
Maximum [Member] | Credit Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity			$ 20,000,000
Minimum [Member] | Credit Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Current Borrowing Capacity			$ 10,000,000

DEBT AND INTEREST Short Term De

DEBT AND INTEREST Short Term Debt (Details) - USD ($) $ in Thousands	Jul. 31, 2016	Mar. 31, 2017	Dec. 31, 2016
Short-term Debt [Line Items]
Short-term debt		$ 67	$ 445
Short-term Debt, Maximum Amount Outstanding During Period	$ 1,200
Maximum [Member] | Short-term Debt [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.00%
Minimum [Member] | Short-term Debt [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	2.00%

TRANSACTIONS WITH INTEGRA Narra

TRANSACTIONS WITH INTEGRA Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Related Party Transaction [Line Items]
Purchases	$ (1,651)	$ 1,022
Related party costs incurred during the period		100
Accounts Receivable, Related Parties, Current		300
Integra | Affiliated Entity
Related Party Transaction [Line Items]
Purchases		$ 500
Revenue from Related Parties	$ 200

INVENTORIES Schedule of Invento

INVENTORIES Schedule of Inventories, net (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Inventory, Net [Abstract]
Finished goods	$ 29,618	$ 30,922
Work in process	10,283	10,554
Raw materials	3,092	3,823
Inventories, net	$ 42,993	$ 45,299

PROPERTY, PLANT AND EQUIPMENT N

PROPERTY, PLANT AND EQUIPMENT Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Depreciation	$ 1,000	$ 1,200
Instrument replacement expense	$ 494	$ 589

PROPERTY, PLANT AND EQUIPMENT P

PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Depreciation	$ 1,000	$ 1,200
Total	54,513		$ 54,251
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	33,391		32,388
Property, plant and equipment, net	21,122		21,863
Leasehold improvement
Property, Plant and Equipment [Line Items]
Total	$ 5,038		5,003
Leasehold improvement | Minimum
Property, Plant and Equipment [Line Items]
Useful Lives (in years)	1 year
Leasehold improvement | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful Lives (in years)	20 years
Machinery and production equipment
Property, Plant and Equipment [Line Items]
Total	$ 6,954		6,826
Machinery and production equipment | Minimum
Property, Plant and Equipment [Line Items]
Useful Lives (in years)	3 years
Machinery and production equipment | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful Lives (in years)	10 years
Spinal hardware instrument sets
Property, Plant and Equipment [Line Items]
Total	$ 26,777		26,618
Spinal hardware instrument sets | Minimum
Property, Plant and Equipment [Line Items]
Useful Lives (in years)	5 years
Spinal hardware instrument sets | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful Lives (in years)	5 years
Information systems and hardware
Property, Plant and Equipment [Line Items]
Total	$ 6,918		6,918
Information systems and hardware | Minimum
Property, Plant and Equipment [Line Items]
Useful Lives (in years)	3 years
Information systems and hardware | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful Lives (in years)	7 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total	$ 1,058		1,058
Furniture and fixtures | Minimum
Property, Plant and Equipment [Line Items]
Useful Lives (in years)	3 years
Furniture and fixtures | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful Lives (in years)	5 years
Construction in progress
Property, Plant and Equipment [Line Items]
Total	$ 7,768		$ 7,828

IDENTIFIABLE INTANGIBLE ASSET39

IDENTIFIABLE INTANGIBLE ASSETS Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Annual amortization expense expected to approximate in 2017	$ 6.8
Annual amortization expense expected to approximate in 2018	6.5
Annual amortization expense expected to approximate in 2019	5.8
Annual amortization expense expected to approximate in 2020	4.9
Annual amortization expense expected to approximate in 2021	4.9
Intangible asset amortization	1.7	$ 2
Product technology | Cost of goods sold
Finite-Lived Intangible Assets [Line Items]
Intangible asset amortization	$ 0.9	$ 0.7

IDENTIFIABLE INTANGIBLE ASSET40

IDENTIFIABLE INTANGIBLE ASSETS Components of Company's Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Cost	$ 97,899		$ 97,699
Accumulated Amortization	(57,622)		(55,914)
Net	$ 40,277		41,785
Product technology
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (in years)	12 years	12 years
Cost	$ 40,769		40,569
Accumulated Amortization	(23,134)		(22,218)
Net	$ 17,635		18,351
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Life (in years)	12 years	12 years
Cost	$ 56,830		56,830
Accumulated Amortization	(34,188)		(33,396)
Net	22,642		23,434
Trademarks/brand names
Finite-Lived Intangible Assets [Line Items]
Cost	300		300
Accumulated Amortization	(300)		(300)
Net	$ 0		$ 0

BUSINESS COMBINATIONS Narrative

BUSINESS COMBINATIONS Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	Sep. 26, 2016	Jan. 31, 2017	Mar. 31, 2017	Mar. 31, 2016
Business Acquisition, Contingent Consideration [Line Items]
Business Combination, Consideration Transferred	$ 1,000
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares		350,000
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned		$ 2,500
Business Combination, Trading Period For Determination Of Volume Weighted Average Closing Price		20 days
Volume Weighted Average Closing Price (in dollars per share)		$ 7.58
Threshold On Proceeds From Sale of Common Stock, Excess Triggers Repayment		$ 3,500
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 9,300
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	10 years
Amortization of Intangible Assets			$ 1,700	$ 2,000
Research and development			3,050	$ 2,753
Business Acquisition, Transaction Costs	$ 500
Minimum [Member]
Business Acquisition, Contingent Consideration [Line Items]
Volume Weighted Average Closing Price (in dollars per share)		$ 10
Maximum [Member]
Business Acquisition, Contingent Consideration [Line Items]
Volume Weighted Average Closing Price (in dollars per share)		$ 17
Pro Forma [Member]
Business Acquisition, Contingent Consideration [Line Items]
Amortization of Intangible Assets			200
Research and development			$ 300
Contingent milestone payments
Business Acquisition, Contingent Consideration [Line Items]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	5,000
Contingent royalty payments
Business Acquisition, Contingent Consideration [Line Items]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	43,000
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, Low	$ 18,000

BUSINESS COMBINATIONS Prelimina

BUSINESS COMBINATIONS Preliminary estimated fair values of NLTs assets acquired and liabilities assumed (Details) $ in Thousands	Sep. 26, 2016USD ($)
Business Acquisition [Line Items]
Business Combination, Consideration Transferred	$ 1,000
Total purchase price	9,250
Common Stock [Member]
Business Acquisition [Line Items]
Business Combination, Contingent Consideration, Liability	2,930
Contingent milestone payments
Business Acquisition [Line Items]
Business Combination, Contingent Consideration, Liability	2,310
Contingent royalty payments
Business Acquisition [Line Items]
Business Combination, Contingent Consideration, Liability	$ 3,010

BUSINESS COMBINATIONS Results o

BUSINESS COMBINATIONS Results of operations and financial position of the NLT Purchased Assets (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating Income (Loss)	$ (9,090)	$ (12,292)
Net loss	$ (9,103)	$ (12,007)
Net loss per share, basic and diluted (in dollars per share)	$ (0.79)	$ (1.08)
Weighted Average Number of Shares Outstanding, Basic and Diluted	11,586	11,167
Pro Forma [Member]
Operating Income (Loss)	$ (9,090)	$ (12,797)
Net loss	$ (9,103)	$ (12,512)
Net loss per share, basic and diluted (in dollars per share)	$ (0.79)	$ (1.12)

FAIR VALUE MEASUREMENTS Fair Va

FAIR VALUE MEASUREMENTS Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration Liability, Current, Fair Value Disclosure	$ 1,497
Contingent Consideration Liability, Noncurrent, Fair Value Disclosure	4,120
Contingent Consideration Liability, Fair Value Disclosure	5,617
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration Liability, Current, Fair Value Disclosure	0
Contingent Consideration Liability, Noncurrent, Fair Value Disclosure	0
Contingent Consideration Liability, Fair Value Disclosure	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration Liability, Current, Fair Value Disclosure	0
Contingent Consideration Liability, Noncurrent, Fair Value Disclosure	0
Contingent Consideration Liability, Fair Value Disclosure	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration Liability, Current, Fair Value Disclosure	1,497
Contingent Consideration Liability, Noncurrent, Fair Value Disclosure	4,120
Contingent Consideration Liability, Fair Value Disclosure	5,617	$ 7,980
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases	$ 2,548

FAIR VALUE MEASUREMENTS Changes

FAIR VALUE MEASUREMENTS Changes in Contingent Consideration Liabilities (Details) - Fair Value, Measurements, Recurring [Member] $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of contingent consideration liability, end of period	$ 5,617
Fair Value, Inputs, Level 3 [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value of contingent consideration liability, beginning of period	7,980
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases	(2,548)
Fair value of contingent consideration liability, end of period	5,617
Other Income [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	(112)
Selling, General and Administrative Expenses [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	$ 297

STOCK-BASED COMPENSATION Equity

STOCK-BASED COMPENSATION Equity Award Plans (Details) - shares	Mar. 30, 2016	Jan. 27, 2016	Mar. 31, 2017	May 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	1,209,500	300,000	3,509,500
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant			411,754
2015 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized				2,000,000
2016 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			1,000,000

STOCK-BASED COMPENSATION Restri

STOCK-BASED COMPENSATION Restricted Stock Awards and Restricted Stock Units Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Restricted Stock Awards and Performance Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Forfeiture Rate	12.00%	10.00%
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 3.8
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 8 months 24 days
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	3,982
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	730,802
2016 Bonus RSU [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Issued During Period, Shares, Restricted Stock Award, Gross	131,523

STOCK-BASED COMPENSATION Stock

STOCK-BASED COMPENSATION Stock Options Weighted-Average Assumptions (Details) - Employee Stock Option [Member]	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.00%	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	2.00%	1.50%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	35.70%	38.60%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	5 years 1 month	5 years 1 month

STOCK-BASED COMPENSATION Stoc49

STOCK-BASED COMPENSATION Stock Options Activity (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	21,500	700,532
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Forfeiture Rate	12.00%	10.00%
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 2.1
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 4 months

STOCK-BASED COMPENSATION Employ

STOCK-BASED COMPENSATION Employee Stock Purchase Plan Weighted- Average Assumptions (Details) - Employee Stock Purchase Plan [Member]	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.00%	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	1.00%	0.70%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	28.50%	32.40%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	1 year 3 months	1 year 3 months

STOCK-BASED COMPENSATION Empl51

STOCK-BASED COMPENSATION Employee Stock Purchase Plan Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation	$ 1,226,000	$ 1,974,000
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation	$ 100,000
Employee Stock Purchase Plan [Member] | Employee Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Stock Purchase Plan, Maximum Contributions Per Employee, Percent	15.00%
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee	2,500
Employee Stock Purchase Plan, Maximum Annual Contributions Per Employee	$ 25,000
Employee Stock Purchase Plan, Stock Purchase Price, Percentage of Market Price	85.00%
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	400,000

LEASES Operating lease annual p

LEASES Operating lease annual payment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating Leased Assets [Line Items]
2,017	$ 1,478
2,018	2,049
2,019	2,096
2,020	2,153
2,021	2,208
Thereafter	8,458
Total minimum lease payments	18,442
Operating Leases, Rent Expense	700	$ 800
Property Subject to Operating Lease [Member]
Operating Leased Assets [Line Items]
Payments for Rent	$ 100

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Benefit for income taxes	$ 0	$ (27)
Reported tax rate (as a percent)	0.00%	0.20%

SEGMENT AND GEOGRAPHIC INFORM54

SEGMENT AND GEOGRAPHIC INFORMATION Narrative (Detail)	3 Months Ended
	Mar. 31, 2017product
Segment Reporting [Abstract]
Number of product categories	2

SEGMENT AND GEOGRAPHIC INFORM55

SEGMENT AND GEOGRAPHIC INFORMATION Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting Information [Line Items]
Revenues	$ 31,894	$ 31,399
United States
Segment Reporting Information [Line Items]
Revenues	28,611	28,544
International
Segment Reporting Information [Line Items]
Revenues	3,283	2,855
Orthobiologics
Segment Reporting Information [Line Items]
Revenues	17,125	16,658
Spinal hardware
Segment Reporting Information [Line Items]
Revenues	$ 14,769	$ 14,741