Company: OFIX
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000950170-25-026066
Chunk: 52

Company: Orthofix Medical Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 16
Chunk 52
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 —

        (126
        )

        Bone Biologics equity securities at December 31
         
        $
        —

        $
        —

        $
        —

      Other investmentsOther investments represent other assets and investments recorded at fair value that are not deemed to be material for disclosure on an individual basis. The fair value of these assets is based upon significant unobservable inputs, such as probability-weighted discounted cash flows models, requiring the Company to develop its own assumptions. Therefore, the Company has categorized these assets as Level 3 financial assets. This balance is classified within other current assets as of December 31, 2024, and was fully impaired as of such date, and was classified in other long-term assets as of December 31, 2023. Lattus Contingent ConsiderationIn connection with the Merger, the Company assumed a contingent consideration obligation under a purchase agreement between SeaSpine and Lattus Spine LLC ("Lattus") executed in December 2022. Under the terms of the agreement, the Company may be required to make installment payments at certain dates based on future net sales of certain products (the "Lateral Products"). The estimated fair value of the Lattus contingent consideration is determined using a Monte Carlo simulation and a discounted cash flow model requiring significant inputs which are not observable in the market. The significant inputs include assumptions related to the timing and probability of certain product launch dates, estimated future sales of Lateral Products, revenue risk-adjusted discount rate, revenue volatility, and discount rates matched to the timing of payments. The following table provides a reconciliation of the beginning and ending balances for the Lattus contingent consideration measured at estimated fair value using significant unobservable inputs (Level 3):

        (U.S. Dollars, in thousands)
         
        2024

        2023

        Lattus contingent consideration estimated fair value at January 1
         
        $
        8,500

        $
        11,200

        Change in fair value recognized in acquisition-related amortization and remeasurement

        6,900

        (2,700
        )

        Lattus contingent consideration estimated fair value at December 31
         
        $
        15,400

        $
        8,500

      The following table provides quantitative information related to certain key assumptions utilized within the valuation as of December 31, 2024:

        (U.S. Dollars, in thousands)
         
        Fair Value as of December