Company: OFIX
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000950170-25-026066
Chunk: 49

Company: Orthofix Medical Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 16
Chunk 49
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        Neo Medical preferred equity securities

        —

        4,951

        —

        4,951

        Bone Biologics equity securities

        —

        —

        —

        —

        Other investments

        —

        —

        1,309

        1,309

        Total
         
        $
        —

        $
        4,951

        $
        8,069

        $
        13,020

        Liabilities

        Lattus contingent consideration
         
        $
        —

        $
        —

        $
        (8,500
        )
         
        $
        (8,500
        )

        Deferred compensation plan

        —

        (1,674
        )

        —

        (1,674
        )

        Total
         
        $
        —

        $
        (1,674
        )
         
        $
        (8,500
        )
         
        $
        (10,174
        )
       
      The fair value of the Company’s deferred compensation plan liabilities is determined based on inputs that are readily available in public markets or that can be derived from information available in publicly quoted markets; therefore, the Company has categorized this liability as a Level 2 financial instrument.Neo Medical Convertible Loan Agreements and Equity InvestmentOn October 1, 2020, the Company purchased shares of Neo Medical’s preferred stock for consideration of $5.0 million and entered into a Convertible Loan Agreement (the "Convertible Loan") pursuant to which Orthofix loaned Neo Medical CHF 4.6 million, or $5.0 million at the date of issuance. In April 2024, the Company converted the Convertible Loan into shares of Neo Medical preferred equity securities. The preferred equity securities were recorded in other long-term assets and were considered an investment that did not have a readily determinable fair value. As such, the Company measured this investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer.On November 14, 2024, the Company sold and transferred all shares of Neo Medical's preferred equity securities for CHF 6.6 million, or $7.4 million. The Company recorded a realized loss of $5.8 million as a result of the sale, recognized within other expense, net. 

F-22

The table below presents a reconciliation of the carrying value of the Company’s investment in Neo Medical