Company: OFIX
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000950170-25-026066
Chunk: 172

Company: Orthofix Medical Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 1B
Chunk 172
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 $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
    %

    9.7
    %

2024 Compared to 2023 

Income tax expense decreased by $0.6 million

•Increase of $5.2 million associated with lower financial statement losses offset by valuation allowances

•Decrease of $2.0 million associated with foreign income inclusion

•Decrease of $1.5 million associated with statue expirations on uncertain tax positions

•Decrease of $2.4 million associated with financial statement expenses not deductible for tax, including executive and equity compensation

60

2023 Compared to 2022

Income tax expense increased by $0.7 million

•Increase of $8.4 million associated with financial statement expenses not deductible for tax, including executive compensation and merger related deal costs 

•Increase of $1.3 million associated with foreign income inclusion, largely driven by research and development expenses outside