Company: OFIX
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000950170-25-026066
Chunk: 33

Company: Orthofix Medical Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 16
Chunk 33
---
. Generally, cash is held at large financial institutions. The Company performs ongoing credit evaluations of customers, generally does not require collateral, and maintains a reserve for expected credit losses. The Company believes that a concentration of credit risk related to accounts receivable is limited because customers are geographically dispersed and end users are diversified.Cash, cash equivalents, and restricted cashThe Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.In November 2023, following the termination of the Second Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A., as Administrative Agent, and certain lender parties thereto, Bank of America required collateral of approximately $4.7 million of the Company’s cash as a banking service obligation, which was classified as restricted cash as of December 31, 2023. In March 2024, the Company entered into a Security Agreement with Bank of America to reduce the required collateral to $2.5 million.Investing activities that did not result in cash receipts or cash payments during the years ended December 31, 2024, 2023, and 2022 consisted of the following, which were not included within cash from investing activities in the Company’s consolidated statements of cash flows:

          (U.S. Dollars, in thousands)
           
          2024

          2023

          2022

          Supplemental disclosure of cash flow information:

          Noncash investing activities:

          Changes in accrued purchases of property, plant, and equipment
           
          $
          (3,040
          )
           
          $
          —

          $
          —

          Intangible assets acquired in asset acquisitions

          —

          —

          2,000

        Research and development costs, including collaborative arrangementsExpenditures for research and development are expensed as incurred. Expenditures related to the Company’s collaborative arrangement with MTF Biologics ("MTF") are expensed based on the terms of the related agreement. The Company recognized $0.3 million, $0.8 million, and less than $0.1 million in research and development expense for the years ended December 31, 2024, 2023, and 2022, respectively, related to this arrangement. 

F-9

3.	Recently adopted accounting standards and recently issued accounting pronouncementsRecently Adopted Accounting StandardsAdoption of Accounting Standards Update ("ASU") 2021-08, Accounting for Contract Assets and Contract Liabilities with Contracts with