Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 04, 2020 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36905 | |
Entity Registrant Name | SeaSpine Holdings Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-3251758 | |
Entity Address, Address Line One | 5770 Armada Drive | |
Entity Address, City or Town | Carlsbad | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92008 | |
City Area Code | 760 | |
Local Phone Number | 727-8399 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | SPNE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 27,633,147 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001637761 | |
Current Fiscal Year End Date | --12-31 | |
Entity Ex Transition Period | false | |
Entity Filer Category | Accelerated Filer |
CONDENSED COMBINED STATEMENT OF
CONDENSED COMBINED STATEMENT OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Total revenue, net | $ 43,209 | $ 39,888 | $ 107,909 | $ 115,344 |
Cost of goods sold | 14,074 | 14,407 | 39,545 | 42,303 |
Gross profit | 29,135 | 25,481 | 68,364 | 73,041 |
Selling and marketing | 22,163 | 21,682 | 59,652 | 60,552 |
General and administrative | 8,908 | 8,452 | 26,307 | 24,498 |
Research and development | 3,917 | 3,896 | 11,786 | 10,995 |
Intangible amortization | 793 | 792 | 2,377 | 2,377 |
Impairment of intangible assets | 0 | 0 | 1,325 | 4,993 |
Total operating expenses | 35,781 | 34,822 | 101,447 | 103,415 |
Operating loss | (6,646) | (9,341) | (33,083) | (30,374) |
Other income (expense), net | 136 | (97) | 377 | (49) |
Loss before income taxes | (6,510) | (9,438) | (32,706) | (30,423) |
Provision for income taxes | 64 | 225 | 132 | 265 |
Net loss | $ (6,574) | $ (9,663) | $ (32,838) | $ (30,688) |
Net loss per share, basic and diluted | $ (0.24) | $ (0.51) | $ (1.21) | $ (1.62) |
Weighted average shares used to compute basic and diluted net loss per share | 27,536 | 19,051 | 27,082 | 18,947 |
CONDENSED COMBINED STATEMENTS O
CONDENSED COMBINED STATEMENTS OF COMPREHENSIVE LOSS Statement - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (6,574) | $ (9,663) | $ (32,838) | $ (30,688) |
Foreign currency translation adjustments | 347 | (327) | 325 | (388) |
Debt Securities, Available-for-sale, Unrealized Gain (Loss) | (70) | (9) | 31 | 5 |
Comprehensive loss | $ (6,297) | $ (9,999) | $ (32,482) | $ (31,071) |
CONDENSED COMBINED BALANCE SHEE
CONDENSED COMBINED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 78,188 | $ 20,199 |
Short-term Investments | 15,043 | 0 |
Trade accounts receivable, net of allowances of $394 and $111 | 23,352 | 24,902 |
Inventories, net | 51,645 | 47,155 |
Prepaid expenses and other current assets | 2,152 | 3,906 |
Total current assets | 170,380 | 96,162 |
Property, plant and equipment, net | 28,109 | 25,751 |
Operating Lease, Right-of-Use Asset | 8,013 | 0 |
Intangible assets, net | 14,682 | 19,173 |
Other assets | 558 | 632 |
Total assets | 221,742 | 141,718 |
Current liabilities: | ||
Accounts payable, trade | 8,092 | 7,448 |
Accrued compensation | 7,335 | 7,879 |
Accrued commissions | 7,028 | 7,843 |
Contingent consideration liabilities | 49 | 1,864 |
Operating Lease, Liability, Current | 2,130 | 0 |
Short-term Debt | 6,173 | 0 |
Other accrued expenses and current liabilities | 5,071 | 5,444 |
Total current liabilities | 35,878 | 30,478 |
Operating Lease, Liability, Noncurrent | 7,230 | 0 |
Other liabilities | 96 | 1,480 |
Total liabilities | 43,204 | 31,958 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value; 15,000 authorized; no shares issued and outstanding at September 30, 2020 and December 31, 2019 | 0 | 0 |
Common stock, $0.01 par value; 60,000 authorized; 27,621 and 19,124 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 276 | 191 |
Additional paid-in capital | 385,386 | 284,211 |
Accumulated other comprehensive income | 1,790 | 1,434 |
Accumulated deficit | (208,914) | (176,076) |
Total stockholders' equity | 178,538 | 109,760 |
Total liabilities and stockholders' equity | $ 221,742 | $ 141,718 |
CONDENSED COMBINED BALANCE SH_2
CONDENSED COMBINED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for trade accounts receivable | $ 371 | $ 111 |
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 Issued | 0 | 0 |
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 | 27,621,000 | 19,124,000 |
Common Stock, Shares, Outstanding | 27,621,000 | 19,124,000 |
CONDENSED COMBINED STATEMENTS_2
CONDENSED COMBINED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
OPERATING ACTIVITIES: | ||
Net loss | $ (32,838,000) | $ (30,688,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 7,929,000 | 7,929,000 |
Instrument replacement expense | 1,555,000 | 1,602,000 |
Impairment of intangible assets | 1,325,000 | 4,993,000 |
Other Asset Impairment Charges | 210,000 | 30,000 |
Provision for excess and obsolete inventories | 3,365,000 | 2,358,000 |
Stock-based compensation | 7,934,000 | 5,907,000 |
Loss/(gain) from change in fair value of contingent consideration liabilities | 160,000 | (571,000) |
Other Operating Activities, Cash Flow Statement | 49,000 | 233,000 |
Changes in assets and liabilities: | ||
Accounts receivable | 1,606,000 | (3,531,000) |
Inventories | (6,436,000) | (6,413,000) |
Prepaid expenses and other current assets | 1,755,000 | (236,000) |
Other non-current assets | (10,000) | (2,000) |
Accounts payable | 140,000 | 2,117,000 |
Accrued commissions | (825,000) | 1,918,000 |
Other accrued expenses and current liabilities | 66,000 | (1,013,000) |
Other non-current liabilities | (17,000) | 237,000 |
Net cash used in operating activities | (14,032,000) | (15,130,000) |
INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (9,571,000) | (10,337,000) |
Payments to Acquire Intangible Assets | 850,000 | 0 |
Payments to Acquire Debt Securities, Available-for-sale | (25,007,000) | 0 |
Proceeds from Sale and Maturity of Debt Securities, Available-for-sale | 10,000,000 | 25,000,000 |
Net cash (used in) provided by investing activities | (25,428,000) | 14,663,000 |
FINANCING ACTIVITIES: | ||
Proceeds from Short-term Debt | 7,173,000 | 0 |
Repayments of Short-term Debt | 1,000,000 | 0 |
Proceeds from issuance of common stock, net of offering costs- ATM transactions | 91,622,000 | 0 |
Proceeds, Issuance of Shares, Share-based Payment Arrangement, Excluding Option Exercised | 698,000 | 671,000 |
Proceeds from exercise of stock options | 1,073,000 | 230,000 |
Repurchases of common stock for income tax withheld upon vesting of restricted stock awards and restricted stock units | (2,069,000) | (2,070,000) |
Payment of contingent consideration liabilities in connection with acquisition of business | (109,000) | (98,000) |
Net cash provided by (used in) financing activities | 97,388,000 | (1,267,000) |
Effect of exchange rate changes on cash and cash equivalents | 61,000 | (185,000) |
Net change in cash and cash equivalents | 57,989,000 | (1,919,000) |
Cash and cash equivalents at beginning of period | 20,199,000 | 24,233,000 |
Cash and cash equivalents at end of period | 78,188,000 | 22,314,000 |
Supplemental cash flow information | ||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 126,000 | 115,000 |
Income Taxes Paid, Net | 115,000 | 98,000 |
Non-cash investing activities: | ||
Property and equipment in liabilities | 1,187,000 | 1,358,000 |
Non-cash financing activities: | ||
Settlement of contingent closing consideration liabilities with stock issuance in connection with acquisition of business | $ 2,000,000 | $ 0 |
CONDENSED COMBINED STATEMENT _2
CONDENSED COMBINED STATEMENT OF EQUITY Statement - 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, 2018 | 18,669,000 | ||||
Beginning Balance at Dec. 31, 2018 | $ 142,085 | $ 187 | $ 277,096 | $ 1,602 | $ (136,800) |
Net loss | (8,989) | (8,989) | |||
Foreign currency translation adjustment | (169) | (169) | |||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) | 11 | 11 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 216,000 | ||||
Restricted stock issued | 2 | $ 2 | 0 | ||
Issuance of common stock- exercise of stock options | 11,000 | ||||
Issuance of common stock- exercise of stock options | 143 | $ 0 | 143 | ||
Repurchases of common stock for income tax withheld upon vesting of restricted stock awards and restricted stock units | 0 | ||||
Repurchases of common stock for income tax withheld upon vesting of restricted stock awards and restricted stock units | (1,851) | (1,851) | |||
Stock-based compensation | 1,947 | 1,947 | |||
Ending Balance, Shares, Outstanding at Mar. 31, 2019 | 18,896,000 | ||||
Ending Balance at Mar. 31, 2019 | 133,179 | $ 189 | 277,335 | 1,444 | (145,789) |
Beginning Balance, Shares, Outstanding at Dec. 31, 2018 | 18,669,000 | ||||
Beginning Balance at Dec. 31, 2018 | 142,085 | $ 187 | 277,096 | 1,602 | (136,800) |
Net loss | (30,688) | ||||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) | 5 | ||||
Ending Balance, Shares, Outstanding at Sep. 30, 2019 | 19,060,000 | ||||
Ending Balance at Sep. 30, 2019 | 115,752 | $ 191 | 281,830 | 1,219 | (167,488) |
Beginning Balance, Shares, Outstanding at Mar. 31, 2019 | 18,896,000 | ||||
Beginning Balance at Mar. 31, 2019 | 133,179 | $ 189 | 277,335 | 1,444 | (145,789) |
Net loss | (12,036) | (12,036) | |||
Foreign currency translation adjustment | 108 | 108 | |||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) | 3 | 3 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 71,000 | ||||
Restricted stock issued | 1 | $ 1 | 0 | ||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 671 | $ 1 | 670 | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 64,000 | ||||
Issuance of common stock- exercise of stock options | 5,000 | ||||
Issuance of common stock- exercise of stock options | 76 | 76 | |||
Repurchases of common stock for income tax withheld upon vesting of restricted stock awards and restricted stock units | 0 | ||||
Repurchases of common stock for income tax withheld upon vesting of restricted stock awards and restricted stock units | (57) | (57) | |||
Stock-based compensation | 1,970 | 1,970 | |||
Ending Balance, Shares, Outstanding at Jun. 30, 2019 | 19,036,000 | ||||
Ending Balance at Jun. 30, 2019 | 123,915 | $ 191 | 279,994 | 1,555 | (157,825) |
Net loss | (9,663) | (9,663) | |||
Foreign currency translation adjustment | (327) | (327) | |||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) | (9) | (9) | |||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 23,000 | ||||
Restricted stock issued | 0 | ||||
Issuance of common stock- exercise of stock options | 1,000 | ||||
Issuance of common stock- exercise of stock options | 10 | 10 | |||
Repurchases of common stock for income tax withheld upon vesting of restricted stock awards and restricted stock units | (164) | (164) | |||
Stock-based compensation | 1,990 | 1,990 | |||
Ending Balance, Shares, Outstanding at Sep. 30, 2019 | 19,060,000 | ||||
Ending Balance at Sep. 30, 2019 | $ 115,752 | $ 191 | 281,830 | 1,219 | (167,488) |
Beginning Balance, Shares, Outstanding at Dec. 31, 2019 | 19,124,000 | 19,124,000 | |||
Beginning Balance at Dec. 31, 2019 | $ 109,760 | $ 191 | 284,211 | 1,434 | (176,076) |
Net loss | (12,551) | (12,551) | |||
Foreign currency translation adjustment | (164) | (164) | |||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) | 190 | 190 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 213,000 | ||||
Restricted stock issued | 2 | $ 2 | |||
Issuance of common stock, net of offering costs- ATM transactions | 7,820,000 | ||||
Issuance of common stock, net of offering costs- ATM transactions | 91,622 | $ 78 | 91,544 | ||
Issuance of common stock- exercise of stock options | 80,000 | ||||
Issuance of common stock- exercise of stock options | 902 | $ 1 | 901 | ||
Repurchases of common stock for income tax withheld upon vesting of restricted stock awards and restricted stock units | (1,855) | (1,855) | |||
Stock-based compensation | 1,983 | 1,983 | |||
Ending Balance, Shares, Outstanding at Mar. 31, 2020 | 27,237,000 | ||||
Ending Balance at Mar. 31, 2020 | $ 189,889 | $ 272 | 376,784 | 1,460 | (188,627) |
Beginning Balance, Shares, Outstanding at Dec. 31, 2019 | 19,124,000 | 19,124,000 | |||
Beginning Balance at Dec. 31, 2019 | $ 109,760 | $ 191 | 284,211 | 1,434 | (176,076) |
Net loss | (32,838) | ||||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) | $ 31 | ||||
Ending Balance, Shares, Outstanding at Sep. 30, 2020 | 27,621,000 | 27,621,000 | |||
Ending Balance at Sep. 30, 2020 | $ 178,538 | $ 276 | 385,386 | 1,790 | (208,914) |
Beginning Balance, Shares, Outstanding at Mar. 31, 2020 | 27,237,000 | ||||
Beginning Balance at Mar. 31, 2020 | 189,889 | $ 272 | 376,784 | 1,460 | (188,627) |
Net loss | (13,713) | (13,713) | |||
Foreign currency translation adjustment | 142 | 142 | |||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) | (89) | (89) | |||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 79,000 | ||||
Restricted stock issued | 0 | $ 1 | 1 | ||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 698 | $ 1 | 697 | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 78,000 | ||||
Issuance of common stock- exercise of stock options | 5,000 | ||||
Issuance of common stock- exercise of stock options | 46 | $ 0 | 46 | ||
Repurchases of common stock for income tax withheld upon vesting of restricted stock awards and restricted stock units | 0 | ||||
Repurchases of common stock for income tax withheld upon vesting of restricted stock awards and restricted stock units | (43) | (43) | |||
Stock-based compensation | 2,769 | 2,769 | |||
Ending Balance, Shares, Outstanding at Jun. 30, 2020 | 27,399,000 | ||||
Ending Balance at Jun. 30, 2020 | 179,699 | $ 274 | 380,252 | 1,513 | (202,340) |
Net loss | (6,574) | (6,574) | |||
Foreign currency translation adjustment | 347 | 347 | |||
Debt Securities, Available-for-sale, Unrealized Gain (Loss) | (70) | (70) | |||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 33,000 | ||||
Restricted stock issued | 0 | ||||
Stock Issued During Period, Shares, Acquisitions | 176,000 | ||||
Stock Issued During Period, Value, Acquisitions | 2,000 | $ 2 | 1,998 | ||
Issuance of common stock- exercise of stock options | 13,000 | ||||
Issuance of common stock- exercise of stock options | 125 | 125 | |||
Repurchases of common stock for income tax withheld upon vesting of restricted stock awards and restricted stock units | 0 | ||||
Repurchases of common stock for income tax withheld upon vesting of restricted stock awards and restricted stock units | (171) | (171) | |||
Stock-based compensation | $ 3,182 | 3,182 | |||
Ending Balance, Shares, Outstanding at Sep. 30, 2020 | 27,621,000 | 27,621,000 | |||
Ending Balance at Sep. 30, 2020 | $ 178,538 | $ 276 | $ 385,386 | $ 1,790 | $ (208,914) |
BUSINESS
BUSINESS | 9 Months Ended |
Sep. 30, 2020 | |
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 implant 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. SeaSpine is a global medical technology company focused on the design, development and commercialization of surgical solutions for the treatment of patients suffering from spinal disorders. SeaSpine has a comprehensive portfolio of orthobiologics and spinal implant solutions to meet the varying combinations of products that neurosurgeons and orthopedic spine surgeons need to perform fusion procedures in the lumbar, thoracic and cervical spine. The Company believes this broad combined portfolio of orthobiologics and spinal implant products is essential to meet the “complete solution” requirements of such surgeons. Basis of Presentation and Principles of 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 with the Company’s consolidated financial statements and notes thereto for the year ended December 31, 2019 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 and nine months ended September 30, 2020 are not necessarily indicative of the results expected for the full year. In addition, the full extent to which the COVID-19 pandemic will directly or indirectly impact the Company's business, results of operations and financial condition, including revenues, expenses, manufacturing, research and development costs and employee-related compensation, will depend on future developments that are highly uncertain and cannot be predicted. See Note 2. Summary of Significant Accounting Policies-Use of Estimates, below. The condensed consolidated balance sheet as of December 31, 2019 was derived from the audited consolidated balance sheet for the year ended December 31, 2019. Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. Under current SEC rules, generally, a company qualifies as a "smaller reporting company" if it has a public float of less than $250 million as of the last business day of its most recently completed second fiscal quarter. If a company qualifies as a smaller reporting company on that date, it may elect to reflect that determination and use the smaller reporting company scaled disclosure accommodations in its subsequent SEC filings until the beginning of the first quarter of the fiscal year following the date it determines it does not qualify as a smaller reporting company. The Company's public float as of June 30, 2020, the last business day of its most recent second fiscal quarter, was less than $250 million, and as such, the Company qualifies as a smaller reporting company, elected to reflect that determination and intends to use certain of the scaled disclosure accommodations in its SEC filings made during and for each of the years ended December 31, 2020 and 2021. Concentration of Risk Integra and PcoMed, LLC (PcoMed) entered into a supply agreement in May 2013 (the Supply Agreement), which was subsequently assigned to the Company by Integra in May 2015. For the nine months ending September 30, 2020, the sales of products incorporating the NanoMetalene® technology licensed and supplied to the Company pursuant to the Supply Agreement exceeded 10% of the Company's revenue. Pursuant to the Supply Agreement, PcoMed granted the Company a worldwide exclusive license to sell certain of its products treated with certain proprietary PcoMed technology (Treatment) for use in the spinal interbody and intervertebral market (Treated Products). PcoMed serves as the sole supplier of the Treatment. As consideration for the license and the Treatment, the Company paid to PcoMed initial milestone payments prior to the initial sale of any Treated Products and the Company will pay PcoMed a low single digit royalty on the Company’s net sales of all Treated Products. In the event the Company fails to meet any of its payment obligations, the license will, at PcoMed’s option and following a cure period, convert to a non-exclusive license. The Supply Agreement contains customary representations and termination provisions, including for material breach and bankruptcy. Each of the Company and PcoMed retain the rights to their respective intellectual property. The Company's financial instruments that are exposed to concentrations of credit risk consist primarily of cash. Cash balances are maintained primarily at major financial institutions in the United States and exceed the regulatory limit of $250,000 insured by the Federal Deposit Insurance Corporation (FDIC). The Company has not experienced any credit losses associated with its cash balances. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates Preparing 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 product launch dates, discount rates matched to the estimated timing of payments, 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 believed to be reasonable under the current circumstances. Actual results could differ from these estimates. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company's business, results of operations and financial condition, including revenues, expenses, manufacturing, research and development costs and employee-related compensation, will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain it or treat COVID-19, as well as the economic impact on local, regional, national and international customers and markets. The Company has made estimates of the impact of the pandemic within its financial statements and there may be changes to those estimates in future periods. Actual results may differ from these estimates. Recent Accounting Standards Not Yet Adopted The Company qualifies as an “emerging growth company” (EGC) under 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 until non-issuers must 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 must adopt or comply with such standards. The Company will no longer qualify as an EGC on December 31, 2020, the last day of the fiscal year following the fifth year after its spin-off from Integra. In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU or Update) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires credit losses on most financial assets measured at amortized cost, including trade receivables, and certain other instruments to be measured using an expected credit loss model, referred to as the current expected credit loss model. Under this model, entities will estimate credit losses over the entire contractual term of the instrument. The new standard will be effective for the Company beginning January 1, 2023. The FASB subsequently issued other related ASUs that amend ASU No. 2016-13 to provide clarification and additional guidance. The Company is evaluating the impact of this standard on its consolidated financial statements. In August 2018, the FASB issued Update No. 2018-15, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40) . The amendments in this Update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The new standard will be effective for the Company beginning on January 1, 2021. Early adoption is permitted. The Company is evaluating the impact of this standard on its consolidated financial statements. In April 2019, the FASB issued Update No. 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments . This Update includes several amendments to the FASB Accounting Standards Codification (Codification) intended to clarify, improve, or correct errors therein. Some amendments do not require transition guidance and are effective upon issuance. The amendments requiring transition guidance have the same effective date as Update No. 2016-13 and will be effective for the Company beginning on January 1, 2023. The Company is evaluating the impact of this standard on its consolidated financial statements. Recently Adopted Accounting Standards 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. In July 2018, the FASB issued Update No. 2018-10, Codification Improvements to Topic 842 (Leases) and Update No. 2018-11, Leases (Topic 842): Targeted Improvements . In March 2019, the FASB issued Update No. 2019-01, Leases (Topic 842): Codification Improvements . In November 2019, the FASB issued Update No. 2019-10, Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates , which modifies the effective dates for Topic 842. The amendments in Updates Nos. 2018-10, 2018-11, 2019-01, and 2019-10 provide additional clarification and implementation guidance on certain aspects of Topic 842 and have the same effective date and transition requirements as ASU 2019-10. The Company early adopted the new standard beginning on January 1, 2020. The Company adopted the new standard electing the optional transition method that allows for a cumulative-effect adjustment in the period of adoption and did not restate prior periods. The Company applied the transition package of practical expedients allowed by the standard. As a result of the Company’s adoption of the new standard, the Company recorded right-of-use assets and lease liabilities of $9.1 million and $10.5 million, respectively, for existing operating leases in the consolidated balance sheets at January 1, 2020. Additionally, the Company reversed $1.4 million of deferred rent liabilities previously recorded under the previous accounting guidance. The adoption of this new standard had no material impact on its consolidated results of operations or cash flows. In June 2018, the FASB issued Update No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . This Update requires an entity to apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606. The new standard was effective for the Company beginning on January 1, 2020. The adoption of this new standard had no material impact on its consolidated financial statements. In August 2018, the FASB issued Update No. 2018-13, Fair Value Measurement (Topic 820)-Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . The amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820 based on the concepts in the Concepts Statement including the consideration of costs and benefits. The new standard was effective for the Company beginning on January 1, 2020. The adoption of this new standard had no material impact on its consolidated financial statements. In March 2020, the FASB issued Update No. 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this Update apply only to contracts, hedging relationships, and other transactions that reference LIBOR, or another reference rate expected to be discontinued, due to the reference rate reform. The new standard was effective for the Company beginning March 12, 2020. The adoption of this new standard had no material impact on its consolidated financial statements. 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 issuance of common stock upon exercise of stock options, any assumed issuance of common stock under restricted stock awards or units, and any assumed issuances under the Company's employee stock purchase plan, because the effect, in each case, would be antidilutive. Common stock equivalents of 4.3 million and 3.6 million shares for the nine months ended September 30, 2020 and 2019, respectively, were excluded from the calculation because of their antidilutive effect. |
DEBT AND INTEREST
DEBT AND INTEREST | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | DEBT AND INTEREST Credit Agreement In December 2015, the Company entered into a three one There were no amounts outstanding under the Credit Facility at September 30, 2020 or December 31, 2019. At September 30, 2020, the Company had $21.2 million of current borrowing capacity under the Credit Facility before the requirement to maintain the minimum fixed charge coverage ratio as discussed below. Debt issuance costs and legal fees related to the Credit Facility totaling $0.6 million were recorded as a deferred asset and are being amortized ratably over the term of the arrangement. 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 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, (i) base rate plus 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 also pays an unused line fee based on the average amount borrowed under the Credit Facility for the most recently completed month. If such average amount is 25% or greater of the maximum borrowing capacity, the unused fee will be equal to 0.375% per annum of the amount unused under the Credit Facility, and if such average amount is less than 25%, the unused line fee will be equal to 0.50% per annum of the amount unused under the Credit Facility. The unused line fee is due on the first day of each month. 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 September 30, 2020. 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, the lender will have the right to terminate the commitments and accelerate the maturity of any loans outstanding. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2020 | |
Inventory, Net [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of: September 30, 2020 December 31, 2019 (In thousands) Finished goods $ 36,767 $ 30,042 Work in process 8,525 10,847 Raw materials 6,353 6,266 $ 51,645 $ 47,155 |
INVESTMENTS (Notes)
INVESTMENTS (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | INVESTMENTS The amortized cost, estimated fair value and gross unrealized gains and losses on investments are shown in the table below: September 30, 2020 Amortized Cost Gross Unrealized Fair Value Gains (Losses) (In thousands) U.S. Treasury Bills $ 15,012 $ 31 $ — $ 15,043 There were no realized gains or losses during the three and nine months ended September 30, 2020. As of December 31, 2019, there were no short-term investments. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2020 | |
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 amortization 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 Codification 350-40, Internal-Use Software. The cost of purchased spinal instruments which the Company consigns to hospitals and independent sales agents to support surgeries is initially capitalized as construction in progress. The amount is either then reclassified to spinal instruments and sets, and depreciation is initiated when instruments are put together in a newly built set with spinal implants, or directly expensed for the instruments used to replace damaged instruments in an existing set. The depreciation expense and direct expense for replacement instruments are recorded in selling and marketing expense. Property, plant and equipment balances and corresponding useful lives were as follows: September 30, 2020 December 31, 2019 Useful Lives (In thousands) Leasehold improvements $ 5,976 $ 5,878 Shorter of lease term or useful life Machinery and production equipment 9,295 8,562 3 - 10 years Spinal instruments and sets 31,636 25,511 4 - 5 years Information systems and hardware 7,784 7,442 3 - 7 years Furniture and fixtures 1,456 1,412 3 - 5 years Construction in progress 9,517 9,716 Total 65,664 58,521 Less accumulated depreciation and amortization (37,555) (32,770) Property, plant and equipment, net $ 28,109 $ 25,751 Depreciation and amortization expenses totaled $1.7 million and $1.3 million for the three months ended September 30, 2020 and 2019, respectively, and $4.8 million and $3.6 million for the nine months ended September 30, 2020 and 2019, respectively. The cost of purchased instruments used to replace damaged instruments in existing sets and recorded directly to instrument replacement expense totaled $0.6 million for each of the three months ended September 30, 2020 and 2019, and $1.6 million for each of the nine months ended September 30, 2020 and 2019. For the nine months ended September 30, 2020, the Company recorded impairment charges to selling and marketing expense totaling $0.2 million against spinal instruments that are no longer expected to be placed into service. Impairment charges against spinal instruments recorded for the nine months ended September 30, 2019 were immaterial. |
FAIR VALUE MEASUREMENTS (Notes)
FAIR VALUE MEASUREMENTS (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
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) September 30, 2020: Short-term investments $ 15,043 $ 15,043 $ — $ — Contingent consideration liabilities- current $ 49 $ — $ — $ 49 Contingent consideration liabilities- non-current 96 — — 96 Total contingent consideration $ 145 $ — $ — $ 145 Total Quoted Price in Active Market (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2019: Short-term investments $ — $ — $ — $ — Contingent consideration liabilities- current $ 1,864 $ — $ — $ 1,864 Contingent consideration liabilities- non-current 230 — — 230 Total contingent consideration $ 2,094 $ — $ — $ 2,094 Short-term investments are classified with Level 1 of the fair value hierarchy because they use quoted market prices in active markets for identical assets. Under the terms of the 2016 asset purchase agreement between the Company and NLT, the Company is obligated to pay up to a maximum $5.0 million in milestone payments to NLT, payable at the Company's election in cash or in shares of its common stock. Such milestone payments are contingent on the Company's achievement of four independent events related to the commercialization of the product technologies the Company acquired in the transaction. To date, the Company achieved two of the milestones, one each during the three months ended June 30, 2020 and September 30, 2020, and paid the $2.0 million of milestone payments in shares of its common stock in July 2020 and August 2020, respectively. Additionally, the Company must 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. 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 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, estimated future sales of the products, estimated commission rates, 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). The loss from change in fair value of contingent milestone and royalty payments resulted from the timing of payments, success rates, the passage of time, updated discount rates matched to the estimated timing of payments, actual net sales of certain products for the three and nine months ended September 30, 2020, and estimated net sales for future royalty payment periods. A change in estimated timing of payments, probability of success rates, or estimated net sales for future royalty payment periods would be expected to have a material impact on the fair value of contingent milestone and royalty payments. Three Months Ended September 30, 2020: (in thousands) Balance as of June 30, 2020 $ 2,106 Contingent consideration liabilities settled (2,037) Loss from change in fair value of contingent consideration recorded in general and administrative expenses 76 Fair value at September 30, 2020 $ 145 Nine Months Ended September 30, 2020: (in thousands) Balance as of January 1, 2020 $ 2,094 Contingent consideration liabilities settled (2,109) Loss from change in fair value of contingent consideration recorded in general and administrative expenses 160 Fair value at September 30, 2020 $ 145 |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | 10. LEASES The impact of the adoption of Topic 842 to the Company's applicable balance sheet items as of January 1, 2020 is presented in the table below. The standard did not have a material impact to the Company's unaudited condensed consolidated statements of operations or comprehensive loss or cash flows. (in thousands) December 31, 2019 Impact of Adoption of ASC 842 January 1, 2020 ASSETS Right of use assets $ — $ 9,059 $ 9,059 Total assets $ 141,718 $ 9,059 $ 150,777 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Other accrued expenses and current liabilities 5,444 (138) 5,306 Current portion of operating lease liabilities — 2,080 2,080 Total current liabilities 30,478 1,942 32,420 Operating lease liabilities, net of current portion — 8,367 8,367 Other liabilities 1,480 (1,250) 230 Total liabilities $ 31,958 $ 9,059 $ 41,017 Total stockholders' equity $ 109,760 $ — $ 109,760 Total liabilities and stockholders' equity $ 141,718 $ 9,059 $ 150,777 The Company determines if an arrangement is a lease at inception. The Company's leases primarily relate to administrative, manufacturing, research, and distribution facilities and various manufacturing, office and transportation equipment. Lease assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Lease assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company's incremental borrowing rate is used as a discount rate, based on the information available at the commencement date, in determining the present value of lease payments. Lease assets also include the impact of any prepayments made and are reduced by impact of any lease incentives. The Company made an accounting policy election for short-term leases, such that the Company will not recognize a lease liability or lease asset on its balance sheet for leases with a lease term of twelve months or less as of the commencement date. Rather, any short-term lease payments will be recognized as an expense on a straight-line basis over the lease term. The current period short-term lease expense reasonably reflects the Company's short-term lease commitments. The Company made a policy election for all classifications of leases to combine lease and non-lease components and to account for them as a single lease component. Variable lease payments are excluded from the lease liability and recognized in the period in which the obligation is incurred. Additionally, lease terms may include options to extend or terminate the lease when it is reasonably certain the Company will exercise the option. The Company’s lease portfolio only includes operating leases. As of September 30, 2020, the weighted average remaining lease term of these operating leases was 5.5 years and the weighted average discount rate was 6.5%. For the three and nine months ended September 30, 2020, lease expense, which represents expense from operating leases, was $0.5 million and $1.6 million, respectively. A summary of the Company's remaining lease liabilities at September 30, 2020 are as follows: Operating Leases (In thousands) 2020 1,004 2021 2,220 2022 2,241 2023 1,566 2024 1,372 Thereafter 3,275 Total undiscounted value of lease liabilities $ 11,678 Less: present value adjustment (1,887) Less: short-term leases not capitalized (431) Present value of lease liabilities 9,360 Less: current portion of lease liability (2,130) Operating lease liability, less current portion $ 7,230 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table summarizes the Company’s effective tax rate for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Reported income tax expense rate (1.0) % (2.4) % (0.4) % (0.9) % The Company recorded a provision for income tax expense for the three and nine months ended September 30, 2020 primarily related to foreign and state operations. 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 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. On March 27, 2020, Congress enacted the CARES Act to provide certain relief as a result of the COVID-19 pandemic. The CARES Act, among other things, includes provisions relating to net operating loss carryback periods, alternative minimum tax credit refunds, and modification to the net interest deduction limitations. The CARES Act did not have a material impact on the Company's consolidated financial statements for the three or nine months ended September 30, 2020. The Company continues to monitor any effects on its financial statements that may result from the CARES Act. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2020 | |
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 agreed to pay royalties on sales of certain products sold by the Company. Except for the royalties paid to NLT, the royalties the Company paid are included as a component of cost of goods sold in the consolidated statements of operations. The Company is subject to various legal proceedings in the ordinary course of its business with respect to its products, its current or former employees, and its commercial relationships, some of which have been settled by the Company. In the opinion of management, such proceedings 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. While uncertainty exists, 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 | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC INFORMATION | SEGMENT AND GEOGRAPHIC INFORMATION Segment Reporting Management assessed its segment reporting based on how it internally manages and reports the results of its business to its chief operating decision maker. 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 of spinal implants. The Company reports revenue in two product categories: orthobiologics and spinal implants. 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 implants portfolio consists of an extensive line of products for minimally invasive surgery, complex spine, deformity and degenerative procedures. The Company attributes revenues to geographic areas based on the location of the customer. The following table disaggregates revenue by major sales channel for each of the periods presented (in thousands): Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 United States International Total United States International Total Orthobiologics $ 19,896 $ 1,711 $ 21,607 $ 49,922 $ 5,161 $ 55,083 Spinal implants 19,178 2,424 21,602 46,844 5,982 52,826 Total revenue, net $ 39,074 $ 4,135 $ 43,209 $ 96,766 $ 11,143 $ 107,909 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 United States International Total United States International Total Orthobiologics $ 18,165 $ 1,908 $ 20,073 $ 53,362 $ 5,821 $ 59,183 Spinal implants 17,371 2,444 19,815 49,197 6,964 56,161 Total revenue, net $ 35,536 $ 4,352 $ 39,888 $ 102,559 $ 12,785 $ 115,344 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates Preparing 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 product launch dates, discount rates matched to the estimated timing of payments, 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 believed to be reasonable under the current circumstances. Actual results could differ from these estimates. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company's business, results of operations and financial condition, including revenues, expenses, manufacturing, research and development costs and employee-related compensation, will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain it or treat COVID-19, as well as the economic impact on local, regional, national and international customers and markets. The Company has made estimates of the impact of the pandemic within its financial statements and there may be changes to those estimates in future periods. Actual results may 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) under 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 until non-issuers must 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 must adopt or comply with such standards. The Company will no longer qualify as an EGC on December 31, 2020, the last day of the fiscal year following the fifth year after its spin-off from Integra. In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU or Update) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires credit losses on most financial assets measured at amortized cost, including trade receivables, and certain other instruments to be measured using an expected credit loss model, referred to as the current expected credit loss model. Under this model, entities will estimate credit losses over the entire contractual term of the instrument. The new standard will be effective for the Company beginning January 1, 2023. The FASB subsequently issued other related ASUs that amend ASU No. 2016-13 to provide clarification and additional guidance. The Company is evaluating the impact of this standard on its consolidated financial statements. In August 2018, the FASB issued Update No. 2018-15, Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40) . The amendments in this Update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The new standard will be effective for the Company beginning on January 1, 2021. Early adoption is permitted. The Company is evaluating the impact of this standard on its consolidated financial statements. In April 2019, the FASB issued Update No. 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments . This Update includes several amendments to the FASB Accounting Standards Codification (Codification) intended to clarify, improve, or correct errors therein. Some amendments do not require transition guidance and are effective upon issuance. The amendments requiring transition guidance have the same effective date as Update No. 2016-13 and will be effective for the Company beginning on January 1, 2023. The Company is evaluating the impact of this standard on its consolidated financial statements. Recently Adopted Accounting Standards 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. In July 2018, the FASB issued Update No. 2018-10, Codification Improvements to Topic 842 (Leases) and Update No. 2018-11, Leases (Topic 842): Targeted Improvements . In March 2019, the FASB issued Update No. 2019-01, Leases (Topic 842): Codification Improvements . In November 2019, the FASB issued Update No. 2019-10, Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates , which modifies the effective dates for Topic 842. The amendments in Updates Nos. 2018-10, 2018-11, 2019-01, and 2019-10 provide additional clarification and implementation guidance on certain aspects of Topic 842 and have the same effective date and transition requirements as ASU 2019-10. The Company early adopted the new standard beginning on January 1, 2020. The Company adopted the new standard electing the optional transition method that allows for a cumulative-effect adjustment in the period of adoption and did not restate prior periods. The Company applied the transition package of practical expedients allowed by the standard. As a result of the Company’s adoption of the new standard, the Company recorded right-of-use assets and lease liabilities of $9.1 million and $10.5 million, respectively, for existing operating leases in the consolidated balance sheets at January 1, 2020. Additionally, the Company reversed $1.4 million of deferred rent liabilities previously recorded under the previous accounting guidance. The adoption of this new standard had no material impact on its consolidated results of operations or cash flows. In June 2018, the FASB issued Update No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting . This Update requires an entity to apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606. The new standard was effective for the Company beginning on January 1, 2020. The adoption of this new standard had no material impact on its consolidated financial statements. In August 2018, the FASB issued Update No. 2018-13, Fair Value Measurement (Topic 820)-Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . The amendments in this Update modify the disclosure requirements on fair value measurements in Topic 820 based on the concepts in the Concepts Statement including the consideration of costs and benefits. The new standard was effective for the Company beginning on January 1, 2020. The adoption of this new standard had no material impact on its consolidated financial statements. In March 2020, the FASB issued Update No. 2020-04, Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this Update apply only to contracts, hedging relationships, and other transactions that reference LIBOR, or another reference rate expected to be discontinued, due to the reference rate reform. The new standard was effective for the Company beginning March 12, 2020. The adoption of this new standard had no material impact on its consolidated financial statements. |
Earnings 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 issuance of common stock upon exercise of stock options, any assumed issuance of common stock under restricted stock awards or units, and any assumed issuances under the Company's employee stock purchase plan, because the effect, in each case, would be antidilutive. Common stock equivalents of 4.3 million and 3.6 million shares for the nine months ended September 30, 2020 and 2019, respectively, were excluded from the calculation because of their antidilutive effect. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory, Net [Abstract] | |
Schedule of Inventory, Net | Inventories consisted of: September 30, 2020 December 31, 2019 (In thousands) Finished goods $ 36,767 $ 30,042 Work in process 8,525 10,847 Raw materials 6,353 6,266 $ 51,645 $ 47,155 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Available-for-sale [Table Text Block] | The amortized cost, estimated fair value and gross unrealized gains and losses on investments are shown in the table below: September 30, 2020 Amortized Cost Gross Unrealized Fair Value Gains (Losses) (In thousands) U.S. Treasury Bills $ 15,012 $ 31 $ — $ 15,043 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment balances and corresponding useful lives were as follows: September 30, 2020 December 31, 2019 Useful Lives (In thousands) Leasehold improvements $ 5,976 $ 5,878 Shorter of lease term or useful life Machinery and production equipment 9,295 8,562 3 - 10 years Spinal instruments and sets 31,636 25,511 4 - 5 years Information systems and hardware 7,784 7,442 3 - 7 years Furniture and fixtures 1,456 1,412 3 - 5 years Construction in progress 9,517 9,716 Total 65,664 58,521 Less accumulated depreciation and amortization (37,555) (32,770) Property, plant and equipment, net $ 28,109 $ 25,751 |
IDENTIFIABLE INTANGIBLE ASSETS
IDENTIFIABLE INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Company's Identifiable Intangible Assets | The components of the Company’s identifiable intangible assets were: September 30, 2020 Weighted Cost Accumulated Net (Dollars in thousands) Product technology 12 years 32,641 $ (29,509) $ 3,132 Customer relationships 12 years 56,830 (45,280) 11,550 Trademarks/brand names — 300 (300) — $ 89,771 $ (75,089) $ 14,682 December 31, 2019 Weighted Cost Accumulated Net (Dollars in thousands) Product technology 12 years $ 34,158 $ (28,912) $ 5,246 Customer relationships 12 years 56,830 (42,903) 13,927 Trademarks/brand names — 300 (300) — $ 91,288 $ (72,115) $ 19,173 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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) September 30, 2020: Short-term investments $ 15,043 $ 15,043 $ — $ — Contingent consideration liabilities- current $ 49 $ — $ — $ 49 Contingent consideration liabilities- non-current 96 — — 96 Total contingent consideration $ 145 $ — $ — $ 145 Total Quoted Price in Active Market (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2019: Short-term investments $ — $ — $ — $ — Contingent consideration liabilities- current $ 1,864 $ — $ — $ 1,864 Contingent consideration liabilities- non-current 230 — — 230 Total contingent consideration $ 2,094 $ — $ — $ 2,094 |
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). The loss from change in fair value of contingent milestone and royalty payments resulted from the timing of payments, success rates, the passage of time, updated discount rates matched to the estimated timing of payments, actual net sales of certain products for the three and nine months ended September 30, 2020, and estimated net sales for future royalty payment periods. A change in estimated timing of payments, probability of success rates, or estimated net sales for future royalty payment periods would be expected to have a material impact on the fair value of contingent milestone and royalty payments. Three Months Ended September 30, 2020: (in thousands) Balance as of June 30, 2020 $ 2,106 Contingent consideration liabilities settled (2,037) Loss from change in fair value of contingent consideration recorded in general and administrative expenses 76 Fair value at September 30, 2020 $ 145 Nine Months Ended September 30, 2020: (in thousands) Balance as of January 1, 2020 $ 2,094 Contingent consideration liabilities settled (2,109) Loss from change in fair value of contingent consideration recorded in general and administrative expenses 160 Fair value at September 30, 2020 $ 145 |
EQUITY AND STOCK-BASED COMPENSA
EQUITY AND STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Stock option grants to employees generally have a requisite service period 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 applicable vesting period within each grant and based on their fair value at the date of grant using the Black-Scholes-Merton option pricing model. There were 22,753 stock options granted during the three months ended September 30, 2020, and 943,003 and 434,708 stock options granted during the nine months ended September 30, 2020 and 2019, respectively. There were no stock options granted during the three months ended September 30, 2019. The following weighted-average assumptions were used in the calculation of fair value for options granted during the period indicated. Three Months Ended September 30, Nine Months Ended September 30, 2020 2020 2019 Expected dividend yield —% —% —% Risk-free interest rate 0.2% 1.3% 2.5% Expected volatility 52.6% 46.4% 30.2% Expected term (in years) 3.8 4.9 5.0 |
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 periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Expected dividend yield — % — % — % — % Risk-free interest rate 0.2 % 1.9 % 0.7 % 1.4 % Expected volatility 65.2 % 36.6 % 24.7 % 21.9 % Expected term (in years) 1.3 1.3 0.8 0.7 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The impact of the adoption of Topic 842 to the Company's applicable balance sheet items as of January 1, 2020 is presented in the table below. The standard did not have a material impact to the Company's unaudited condensed consolidated statements of operations or comprehensive loss or cash flows. (in thousands) December 31, 2019 Impact of Adoption of ASC 842 January 1, 2020 ASSETS Right of use assets $ — $ 9,059 $ 9,059 Total assets $ 141,718 $ 9,059 $ 150,777 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Other accrued expenses and current liabilities 5,444 (138) 5,306 Current portion of operating lease liabilities — 2,080 2,080 Total current liabilities 30,478 1,942 32,420 Operating lease liabilities, net of current portion — 8,367 8,367 Other liabilities 1,480 (1,250) 230 Total liabilities $ 31,958 $ 9,059 $ 41,017 Total stockholders' equity $ 109,760 $ — $ 109,760 Total liabilities and stockholders' equity $ 141,718 $ 9,059 $ 150,777 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | A summary of the Company's remaining lease liabilities at September 30, 2020 are as follows: Operating Leases (In thousands) 2020 1,004 2021 2,220 2022 2,241 2023 1,566 2024 1,372 Thereafter 3,275 Total undiscounted value of lease liabilities $ 11,678 Less: present value adjustment (1,887) Less: short-term leases not capitalized (431) Present value of lease liabilities 9,360 Less: current portion of lease liability (2,130) Operating lease liability, less current portion $ 7,230 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of effective income tax rate reconciliation | The following table summarizes the Company’s effective tax rate for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Reported income tax expense rate (1.0) % (2.4) % (0.4) % (0.9) % |
BUSINESS Narrative (Details)
BUSINESS Narrative (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Supplier Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 10.00% |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Narrative (Details) - shares shares in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Accounting Policies [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4.3 | 3.6 |
DEBT AND INTEREST Credit Agreem
DEBT AND INTEREST Credit Agreement (Details) | Dec. 24, 2015USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) |
Line of Credit Facility [Line Items] | |||||
Amortization of Intangible Assets | $ 1,000,000 | $ 1,200,000 | $ 3,200,000 | $ 4,300,000 | |
Credit Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Expiration Period (years) | 3 years | ||||
Line Of Credit Facility, Extension Period | 1 year | ||||
Unamortized Debt Issuance Expense | $ 600,000 | ||||
Debt Instrument, Covenant, Fixed Charge Ratio, Minimum | 1.10 | ||||
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 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 21,200,000 | $ 21,200,000 | |||
Line of Credit Facility, Increase in Borrowing Capacity | $ 10,000,000 | ||||
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 | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | ||||
Minimum [Member] | Credit Agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 10,000,000 | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.375% |
DEBT AND INTEREST Paycheck Prot
DEBT AND INTEREST Paycheck Protection Program (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Paycheck Protection Program [Abstract] | |
Notes Payable | $ 7,200 |
Repayments of Notes Payable | $ 1,000 |
INVENTORIES Schedule of Invento
INVENTORIES Schedule of Inventories, net (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory, Net [Abstract] | ||
Finished goods | $ 36,767 | $ 30,042 |
Work in process | 8,525 | 10,847 |
Raw materials | 6,353 | 6,266 |
Inventories, net | $ 51,645 | $ 47,155 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Debt Securities, Available-for-sale, Amortized Cost | $ 15,012 | |
Debt Securities, Available-for-sale, Unrealized Gain | 31 | |
Debt Securities, Available-for-sale, Unrealized Loss | 0 | |
Short-term Investments | $ 15,043 | $ 0 |
PROPERTY, PLANT AND EQUIPMENT P
PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment balances (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Total | $ 65,664 | $ 58,521 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (37,555) | (32,770) |
Property, plant and equipment, net | 28,109 | 25,751 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 5,976 | 5,878 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (in years) | 1 year | |
Leasehold improvements | 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 | $ 9,295 | 8,562 |
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 instruments and sets | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 31,636 | 25,511 |
Spinal instruments and sets | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives (in years) | 4 years | |
Spinal instruments and 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 | $ 7,784 | 7,442 |
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 | $ 1,456 | 1,412 |
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 | $ 9,517 | $ 9,716 |
PROPERTY, PLANT AND EQUIPMENT N
PROPERTY, PLANT AND EQUIPMENT Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation | $ 1,700,000 | $ 1,300,000 | $ 4,800,000 | $ 3,600,000 |
Instrument replacement expense | $ 600,000 | $ 600,000 | 1,555,000 | 1,602,000 |
Other Asset Impairment Charges | $ 210,000 | $ 30,000 |
IDENTIFIABLE INTANGIBLE ASSET_2
IDENTIFIABLE INTANGIBLE ASSETS Asset Impairment Charges (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Asset Impairment Charges [Text Block] | Primarily as a result of an expected shift in future product revenue mix more toward a parallel expanding interbody device designed based on the Company’s internally developed technology and, in turn, lower future revenue anticipated for the lordotic expanding implant based on technology the Company acquired from N.L.T. Spine Ltd. (NLT) and NLT Spine, Inc., a wholly owned subsidiary of NLT, the Company's estimated future net sales associated with those NLT product technologies decreased. Accordingly, the Company evaluated the ongoing value of the product technology intangible assets associated with the acquisition of these assets. Based on this evaluation, the Company determined that intangible assets with a carrying amount of $1.6 million were no longer recoverable and were impaired, and the Company wrote those intangible assets down to their estimated fair value of $0.3 million at March 31, 2020. Significant estimates used in determining the estimated fair value include measurements estimating cash flows and determining the appropriate discount rate, which are considered Level 3 inputs under Codification 820. |
IDENTIFIABLE INTANGIBLE ASSET_3
IDENTIFIABLE INTANGIBLE ASSETS Components of Company's Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of Intangible Assets | $ 1,000 | $ 1,200 | $ 3,200 | $ 4,300 | |
Cost | 89,771 | 89,771 | $ 91,288 | ||
Accumulated Amortization | (75,089) | (75,089) | (72,115) | ||
Net | 14,682 | $ 14,682 | $ 19,173 | ||
Product technology | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted Average Life (in years) | 12 years | 12 years | |||
Cost | 32,641 | $ 32,641 | $ 34,158 | ||
Accumulated Amortization | (29,509) | (29,509) | (28,912) | ||
Net | 3,132 | 3,132 | $ 5,246 | ||
Product technology | Cost of Sales [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of Intangible Assets | 300 | $ 400 | $ 800 | $ 1,900 | |
Customer relationships | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted Average Life (in years) | 12 years | 12 years | |||
Cost | 56,830 | $ 56,830 | $ 56,830 | ||
Accumulated Amortization | (45,280) | (45,280) | (42,903) | ||
Net | 11,550 | 11,550 | 13,927 | ||
Trademarks/brand names | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 300 | 300 | 300 | ||
Accumulated Amortization | (300) | (300) | (300) | ||
Net | $ 0 | $ 0 | $ 0 |
IDENTIFIABLE INTANGIBLE ASSET_4
IDENTIFIABLE INTANGIBLE ASSETS Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Annual amortization expense expected to approximate in 2020 | $ 4.2 | $ 4.2 | ||
Annual amortization expense expected to approximate in 2021 | 4.2 | 4.2 | ||
Annual amortization expense expected to approximate in 2022 | 4.1 | 4.1 | ||
Annual amortization expense expected to approximate in 2023 | 3.4 | 3.4 | ||
Annual amortization expense expected to approximate in 2024 | 1.5 | 1.5 | ||
Intangible asset amortization | $ 1 | $ 1.2 | $ 3.2 | $ 4.3 |
FAIR VALUE MEASUREMENTS Fair Va
FAIR VALUE MEASUREMENTS Fair Value Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2020 | Sep. 26, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Stock Issued During Period, Value, Acquisitions | $ 2,000 | |
Milestone Payment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 5,000 | |
Royalty payment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [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 |
FAIR VALUE MEASUREMENTS Fair _2
FAIR VALUE MEASUREMENTS Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Short-term Investments | $ 15,043 | $ 15,043 | $ 0 | |
Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent Consideration Liability, Current, Fair Value Disclosure | 49 | 49 | 1,864 | |
Contingent Consideration Liability, Noncurrent, Fair Value Disclosure | 96 | 96 | 230 | |
Contingent Consideration Liability, Fair Value Disclosure | 145 | 145 | 2,094 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Short-term Investments | 15,043 | 15,043 | ||
Contingent Consideration Liability, Current, Fair Value Disclosure | 0 | 0 | 0 | |
Contingent Consideration Liability, Noncurrent, Fair Value Disclosure | 0 | 0 | 0 | |
Contingent Consideration Liability, Fair Value Disclosure | 0 | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Short-term Investments | 0 | 0 | 0 | |
Contingent Consideration Liability, Current, Fair Value Disclosure | 0 | 0 | 0 | |
Contingent Consideration Liability, Noncurrent, Fair Value Disclosure | 0 | 0 | 0 | |
Contingent Consideration Liability, Fair Value Disclosure | 0 | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Short-term Investments | 0 | 0 | 0 | |
Contingent Consideration Liability, Current, Fair Value Disclosure | 49 | 49 | 1,864 | |
Contingent Consideration Liability, Noncurrent, Fair Value Disclosure | 96 | 96 | 230 | |
Contingent Consideration Liability, Fair Value Disclosure | 145 | 145 | $ 2,106 | $ 2,094 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases | $ 2,037 | $ 2,109 |
FAIR VALUE MEASUREMENTS Changes
FAIR VALUE MEASUREMENTS Changes in Contingent Consideration Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Short-term Investments | $ 15,043 | $ 15,043 | $ 0 |
Fair Value, Recurring [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Contingent Consideration Liability, Current, Fair Value Disclosure | 49 | 49 | 1,864 |
Fair value of contingent consideration liability, beginning of period | 2,094 | ||
Fair value of contingent consideration liability, end of period | 145 | 145 | |
Contingent Consideration Liability, Noncurrent, Fair Value Disclosure | 96 | 96 | 230 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Short-term Investments | 15,043 | 15,043 | |
Contingent Consideration Liability, Current, Fair Value Disclosure | 0 | 0 | 0 |
Fair value of contingent consideration liability, beginning of period | 0 | ||
Fair value of contingent consideration liability, end of period | 0 | 0 | |
Contingent Consideration Liability, Noncurrent, Fair Value Disclosure | 0 | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Short-term Investments | 0 | 0 | 0 |
Contingent Consideration Liability, Current, Fair Value Disclosure | 49 | 49 | 1,864 |
Fair value of contingent consideration liability, beginning of period | 2,106 | 2,094 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases | (2,037) | (2,109) | |
Fair value of contingent consideration liability, end of period | 145 | 145 | |
Contingent Consideration Liability, Noncurrent, Fair Value Disclosure | 96 | 96 | 230 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Short-term Investments | 0 | 0 | 0 |
Contingent Consideration Liability, Current, Fair Value Disclosure | 0 | 0 | 0 |
Fair value of contingent consideration liability, beginning of period | 0 | ||
Fair value of contingent consideration liability, end of period | 0 | 0 | |
Contingent Consideration Liability, Noncurrent, Fair Value Disclosure | 0 | 0 | $ 0 |
Selling, General and Administrative Expenses [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [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 | $ (76) | $ (160) |
EQUITY AND STOCK-BASED COMPEN_2
EQUITY AND STOCK-BASED COMPENSATION Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 17, 2020 | Jul. 28, 2020 | Jan. 10, 2020 | Sep. 30, 2020 | Sep. 30, 2019 |
Stock Issued During Period, Shares, New Issues | 7,820,000 | ||||
Shares Issued, Price Per Share | $ 12.50 | ||||
Proceeds from issuance of common stock, net of offering costs- ATM transactions | $ 91,600 | $ 91,622 | $ 0 | ||
Stock Issued During Period, Shares, Acquisitions | 75,585 | 100,100 |
EQUITY AND STOCK-BASED COMPEN_3
EQUITY AND STOCK-BASED COMPENSATION Equity Award Plans (Details) - shares | 2 Months Ended | |
Mar. 22, 2018 | Sep. 30, 2020 | |
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 | 2,726,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3,955,478 | |
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 | 9,735,500 | |
2018 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 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,914,793 | |
2020 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 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,959,415 |
EQUITY AND STOCK-BASED COMPEN_4
EQUITY AND STOCK-BASED COMPENSATION Restricted Stock Awards and Restricted Stock Units Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 4,894 | 0 | 77,414 | 76,471 |
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 | 22,650 | 34,100 | 399,404 | 252,710 |
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 | 13.00% | 14.00% | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 3.9 | $ 3.9 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 10 months 24 days |
EQUITY AND STOCK-BASED COMPEN_5
EQUITY AND STOCK-BASED COMPENSATION Stock Options Weighted-Average Assumptions (Details) - Share-based Payment Arrangement, Option [Member] | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
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% | 0.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.20% | 1.30% | 2.50% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 52.60% | 46.40% | 30.20% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 3 years 9 months 18 days | 4 years 10 months 24 days | 5 years |
EQUITY AND STOCK-BASED COMPEN_6
EQUITY AND STOCK-BASED COMPENSATION Stock Options Activity (Details) - Share-based Payment Arrangement, Option [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 52.60% | 46.40% | 30.20% | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 22,753 | 0 | 943,003 | 434,708 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 2.4 | $ 2.4 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 4 months 24 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 3 years 9 months 18 days | 4 years 10 months 24 days | 5 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% | 0.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.20% | 1.30% | 2.50% |
EQUITY AND STOCK-BASED COMPEN_7
EQUITY AND STOCK-BASED COMPENSATION Employee Stock Purchase Plan Weighted- Average Assumptions (Details) - Employee Stock Purchase Plan [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
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% | 0.00% | 0.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.20% | 1.90% | 0.70% | 1.40% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 65.20% | 36.60% | 24.70% | 21.90% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 1 year 3 months 18 days | 1 year 3 months 18 days | 9 months 18 days | 8 months 12 days |
EQUITY AND STOCK-BASED COMPEN_8
EQUITY AND STOCK-BASED COMPENSATION Employee Stock Purchase Plan Narrative (Details) - USD ($) | Jan. 10, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2018 | Nov. 02, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Issued During Period, Shares, New Issues | 7,820,000 | ||||
Shares Issued, Price Per Share | $ 12.50 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3,955,478 | ||||
Employee Stock Purchase Plan [Member] | Employee Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Purchased for Award | 78,360 | 64,008 | |||
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 | 800,000 | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount | $ 700,000 | $ 600,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 202,102 |
LEASES Impact of Adoption Topic
LEASES Impact of Adoption Topic 842 (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Operating Lease, Right-of-Use Asset | $ 8,013 | $ 9,059 | $ 0 | ||||||
Assets | 221,742 | 150,777 | 141,718 | ||||||
Accrued Liabilities, Current | 5,071 | 5,306 | 5,444 | ||||||
Operating Lease, Liability, Current | 2,130 | 2,080 | 0 | ||||||
Liabilities, Current | 35,878 | 32,420 | 30,478 | ||||||
Operating Lease, Liability, Noncurrent | 7,230 | 8,367 | 0 | ||||||
Other Liabilities, Noncurrent | 96 | 230 | 1,480 | ||||||
Liabilities | 43,204 | 41,017 | 31,958 | ||||||
Stockholders' Equity Attributable to Parent | 178,538 | $ 179,699 | $ 189,889 | 109,760 | 109,760 | $ 115,752 | $ 123,915 | $ 133,179 | $ 142,085 |
Liabilities and Equity | $ 221,742 | 150,777 | $ 141,718 | ||||||
Accounting Standards Update 2016-02 [Member] | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Operating Lease, Right-of-Use Asset | 9,059 | ||||||||
Assets | 9,059 | ||||||||
Accrued Liabilities, Current | (138) | ||||||||
Operating Lease, Liability, Current | 2,080 | ||||||||
Liabilities, Current | 1,942 | ||||||||
Operating Lease, Liability, Noncurrent | 8,367 | ||||||||
Other Liabilities, Noncurrent | (1,250) | ||||||||
Liabilities | 9,059 | ||||||||
Stockholders' Equity Attributable to Parent | 0 | ||||||||
Liabilities and Equity | $ 9,059 |
LEASES Lease Cost (Details)
LEASES Lease Cost (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($) | |
Lease, Cost [Abstract] | ||
Operating Lease, Weighted Average Remaining Lease Term | 5 years 6 months | 5 years 6 months |
Operating Lease, Weighted Average Discount Rate, Percent | 6.50% | 6.50% |
Operating Lease, Expense | $ 0.5 | $ 1.6 |
LEASES Operating lease annual p
LEASES Operating lease annual payment (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Operating Leased Assets [Line Items] | |||
2020 | $ 1,004 | ||
2021 | 2,220 | ||
2022 | 2,241 | ||
2023 | 1,566 | ||
2024 | 1,372 | ||
Thereafter | 3,275 | ||
Total undiscounted value of lease liabilities | 11,678 | ||
Less: present value adjustment | (1,887) | ||
Operating Lease, Liability, Not Capitalized | (431) | ||
Present value of lease liabilities | 9,360 | ||
Less: current portion of lease liability | 2,130 | $ 2,080 | $ 0 |
Operating lease liability, less current portion | $ 7,230 | $ 8,367 | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Reported tax rate (as a percent) | (1.00%) | (2.40%) | (0.40%) | (0.90%) |
SEGMENT AND GEOGRAPHIC INFORM_2
SEGMENT AND GEOGRAPHIC INFORMATION Narrative (Detail) | 9 Months Ended |
Sep. 30, 2020product | |
Segment Reporting [Abstract] | |
Number of product categories | 2 |
SEGMENT AND GEOGRAPHIC INFORM_3
SEGMENT AND GEOGRAPHIC INFORMATION Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 43,209 | $ 39,888 | $ 107,909 | $ 115,344 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 39,074 | 35,536 | 96,766 | 102,559 |
International | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,135 | 4,352 | 11,143 | 12,785 |
Orthobiologics | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 21,607 | 20,073 | 55,083 | 59,183 |
Orthobiologics | United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 19,896 | 18,165 | 49,922 | 53,362 |
Orthobiologics | International | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,711 | 1,908 | 5,161 | 5,821 |
Spinal implants | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 21,602 | 19,815 | 52,826 | 56,161 |
Spinal implants | United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 19,178 | 17,371 | 46,844 | 49,197 |
Spinal implants | International | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 2,424 | $ 2,444 | $ 5,982 | $ 6,964 |