Company: OFIX
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000950170-25-026066
Chunk: 276

Company: Orthofix Medical Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 276
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    $
    (1,288
    )

    243.3
    %

    570.1
    %

    Other expense, net

    (9,625
    )

    (938
    )

    (3,150
    )

    926.1
    %

    -70.2
    %

Non-operating expense largely consists of net interest income and expense, transaction gains and losses from changes in foreign currency exchange rates, changes in fair value related to our equity holdings in certain privately-held companies, and credit losses recognized on certain convertible debt investments. Foreign exchange gains and losses are primarily a result of several of our foreign subsidiaries holding trade and intercompany payables or receivables in currencies (most notably the U.S. Dollar) other than their functional currency.

2024 Compared to 2023 

Interest expense, net, increased $21.0 million

•Unfavorable change of $13.3 million attributable to an increase in outstanding indebtedness compared to prior year

•Unfavorable change of $6.9 million attributable to the extinguishment of the Financing Agreement with Blue Torch Finance LLC

•Unfavorable change of $0.8 million as a result of the conversion of the convertible loan with Neo Medical into preferred equity securities in the second quarter of 2024 and subsequent sale of such securities in the fourth quarter of 2024

Other expense, net, increased $8.7 million

•Unfavorable change of $6.0 million associated with changes in foreign currency exchange rates, as we recorded a non-cash remeasurement loss of ($4.4 million) in 2024 compared to a gain of $1.6 million in 2023

•Unfavorable change of $2.5 million associated with gains and losses recognized on certain investments measured at fair value

Income Tax Expense

    Percentage Change

    (U.S. Dollars, in thousands)
     
    2024

    2023

    2022

    2024/2023

    2023/2022

    Income tax expense
     
    $
    2,122

    $
    2,716

    $
    2,043

    -21.9
    %

    32.9
    %

    Effective tax rate

    -1.7
    %

    -1.8
    %

    -11.5
    %

    0.1