Cover
Cover - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Mar. 25, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | ||||
Document Type | 10-K | |||
Amendment Flag | false | |||
Document Annual Report | true | |||
Document Transition Report | false | |||
Document Period End Date | Dec. 31, 2023 | |||
Document Fiscal Period Focus | FY | |||
Document Fiscal Year Focus | 2023 | |||
Current Fiscal Year End Date | --12-31 | |||
Entity File Number | 001-34951 | |||
Entity Registrant Name | Xtant Medical Holdings, Inc. | |||
Entity Central Index Key | 0001453593 | |||
Entity Tax Identification Number | 20-5313323 | |||
Entity Incorporation, State or Country Code | DE | |||
Entity Address, Address Line One | 664 Cruiser Lane | |||
Entity Address, City or Town | Belgrade | |||
Entity Address, State or Province | MT | |||
Entity Address, Postal Zip Code | 59714 | |||
City Area Code | 406 | |||
Local Phone Number | 388-0480 | |||
Title of 12(b) Security | Common stock, par value $.000001 per share | |||
Trading Symbol | XTNT | |||
Security Exchange Name | NYSEAMER | |||
Entity Well-known Seasoned Issuer | No | |||
Entity Voluntary Filers | No | |||
Entity Current Reporting Status | Yes | |||
Entity Interactive Data Current | Yes | |||
Entity Filer Category | Non-accelerated Filer | |||
Entity Small Business | true | |||
Entity Emerging Growth Company | false | |||
Entity Shell Company | false | |||
Entity Public Float | $ 25.8 | |||
Entity Common Stock, Shares Outstanding | 130,216,541 | |||
Documents Incorporated by Reference [Text Block] | None | |||
ICFR Auditor Attestation Flag | false | |||
Document Financial Statement Error Correction [Flag] | false | |||
Auditor Firm ID | 248 | 166 | ||
Auditor Name | GRANT THORNTON LLP | Plante & Moran, PLLC | ||
Auditor Location | Minneapolis, Minnesota | Denver, Colorado |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue | ||
Orthopedic product sales | $ 91,303 | $ 57,969 |
Cost of Sales | 35,836 | 25,832 |
Gross Profit | 55,467 | 32,137 |
Operating Expenses | ||
General and administrative | 25,850 | 15,462 |
Sales and marketing | 38,439 | 22,515 |
Research and development | 1,336 | 915 |
Total Operating Expenses | 65,625 | 38,892 |
Loss from Operations | (10,158) | (6,755) |
Other Income (Expense) | ||
Interest expense | (2,938) | (1,692) |
Interest income | 149 | 31 |
Unrealized foreign currency translation gain | 265 | |
Bargain purchase gain | 11,694 | |
Other expense | (49) | |
Total Other Income (Expense) | 9,121 | (1,661) |
Net Loss from Operations Before Provision for Income Taxes | (1,037) | (8,416) |
Benefit (Provision) for Income Taxes Current and Deferred | 1,697 | (69) |
Net Income (Loss) | $ 660 | $ (8,485) |
Net Income (Loss) Per Share: | ||
Basic | $ 0.01 | $ (0.09) |
Dilutive | $ 0.01 | $ (0.09) |
Shares used in the computation: | ||
Basic | 119,093,687 | 94,085,197 |
Dilutive | 126,793,318 | 94,085,197 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Net Income (Loss) | $ 660 | $ (8,485) |
Other Comprehensive Income (Loss) | ||
Foreign currency translation adjustments | 29 | |
Comprehensive Income (Loss) | $ 689 | $ (8,485) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash-equivalents | $ 5,715 | $ 20,298 |
Restricted cash | 208 | 209 |
Trade accounts receivable, net of allowance for credit losses of $920 and $515, respectively | 20,731 | 10,853 |
Inventories | 36,885 | 17,285 |
Prepaid and other current assets | 1,330 | 673 |
Total current assets | 64,869 | 49,318 |
Property and equipment, net | 8,692 | 5,785 |
Right of use asset, net | 1,523 | 1,380 |
Goodwill | 7,302 | 3,205 |
Intangible assets, net | 10,085 | 344 |
Other assets | 141 | 197 |
Total Assets | 92,612 | 60,229 |
Current Liabilities: | ||
Accounts payable | 7,054 | 3,490 |
Accrued liabilities | 10,419 | 5,496 |
Current portion of lease liability | 830 | 458 |
Current portion of finance lease obligations | 65 | 62 |
Line of credit | 4,622 | 3,379 |
Current portion of long-term debt | 2,333 | |
Total current liabilities | 22,990 | 15,218 |
Long-term Liabilities: | ||
Lease liability, net | 759 | 972 |
Financing lease obligations, net | 116 | 181 |
Long-term debt, plus premium and less issuance costs | 17,167 | 9,687 |
Accrued earnout liabilities | 210 | |
Deferred tax liability | 21 | |
Total Liabilities | 41,263 | 26,058 |
Commitments and Contingencies (Note 14) | ||
Stockholders’ Equity: | ||
Preferred stock, $0.000001 par value; 10,000,000 shares authorized; no shares issued and outstanding | ||
Common stock, $0.000001 par value; 300,000,000 shares authorized; 130,180,031 shares issued and outstanding as of December 31, 2023; 108,874,803 shares issued and outstanding as of December 31, 2022 | ||
Additional paid-in capital | 294,330 | 277,841 |
Accumulated other comprehensive income | 29 | |
Accumulated deficit | (243,010) | (243,670) |
Total Stockholders’ Equity | 51,349 | 34,171 |
Total Liabilities & Stockholders’ Equity | $ 92,612 | $ 60,229 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance of accounts receivable, net | $ 920 | $ 515 |
Preferred stock, par value | $ 0.000001 | $ 0.000001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.000001 | $ 0.000001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 130,180,031 | 108,874,803 |
Common stock, shares outstanding | 130,180,031 | 108,874,803 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance, value at Dec. 31, 2021 | $ 266,068 | $ (235,185) | $ 30,883 | ||
Balance, shares at Dec. 31, 2021 | 87,068,980 | ||||
Private placement of common stock, net of issuance costs | 7,681 | 7,681 | |||
Private placement of common stock, net of issuance costs, shares | 20,305,429 | ||||
Warrants issued in connection with the private placement | 1,628 | 1,628 | |||
Common stock issued on vesting of restricted stock units | |||||
Common stock issued on vesting of restricted stock units, shares | 1,500,394 | ||||
Stock-based compensation | 2,464 | 2,464 | |||
Net income (loss) | (8,485) | (8,485) | |||
Foreign currency translation adjustment | |||||
Balance, value at Dec. 31, 2022 | 277,841 | (243,670) | 34,171 | ||
Balance, shares at Dec. 31, 2022 | 108,874,803 | ||||
Private placement of common stock, net of issuance costs | 14,011 | 14,011 | |||
Private placement of common stock, net of issuance costs, shares | 20,000,000 | ||||
Common stock issued on vesting of restricted stock units | |||||
Common stock issued on vesting of restricted stock units, shares | 1,536,251 | ||||
Stock-based compensation | 2,739 | 2,739 | |||
Net income (loss) | 660 | 660 | |||
Withholding on common stock upon vesting of restricted stock units | (261) | (261) | |||
Withholding of common stock upon vesting of restricted stock units, shares | (231,023) | ||||
Foreign currency translation adjustment | 29 | 29 | |||
Balance, value at Dec. 31, 2023 | $ 294,330 | $ 29 | $ (243,010) | $ 51,349 | |
Balance, shares at Dec. 31, 2023 | 130,180,031 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Payments of stock issuance costs | $ 175 | $ 436 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating activities: | ||
Net income (loss) | $ 660 | $ (8,485) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 3,174 | 1,292 |
Non-cash interest | 386 | 233 |
Non-cash rent | 16 | 4 |
Gain on sale of fixed assets | (115) | (93) |
Stock-based compensation | 2,739 | 2,464 |
Provision for reserve on accounts receivable | 497 | 243 |
Provision for excess and obsolete inventory | 357 | 1,812 |
Release of deferred tax asset valuation allowance | (1,901) | |
Gain on bargain purchase | (11,694) | |
Changes in operating assets and liabilities, net of the effects of acquisitions: | ||
Trade accounts receivable | (8,736) | (3,941) |
Inventories | (1,886) | (1,152) |
Prepaid and other assets | 220 | 261 |
Accounts payable | 2,980 | 875 |
Accrued liabilities | 3,788 | 1,146 |
Net cash used in operating activities | (9,515) | (5,341) |
Investing activities: | ||
Purchases of property and equipment | (1,456) | (1,764) |
Proceeds from sale of fixed assets | 175 | 205 |
Acquisition of Surgalign SPV, Inc. | (17,000) | |
Acquisition of Surgalign Holdings, Inc.’s hardware and biologics business, net of cash acquired | (4,503) | |
Acquisition of nanOss Production Operations from RTI Surgical Inc. | (2,000) | |
Net cash used in investing activities | (24,784) | (1,559) |
Financing activities: | ||
Borrowings on line of credit | 78,219 | 54,229 |
Repayments on line of credit | (76,976) | (54,470) |
Payments on financing leases | (63) | (50) |
Proceeds from issuance of common stock, net of issuance costs | 14,011 | 9,311 |
Proceeds from issuance of long term debt, net of issuance costs | 4,761 | |
Payment of taxes from withholding of common stock on vesting of restricted stock units | (261) | |
Net cash provided by financing activities | 19,691 | 9,020 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 24 | |
Net change in cash and cash equivalents and restricted cash | (14,584) | 2,120 |
Cash and cash equivalents and restricted cash at beginning of year | 20,507 | 18,387 |
Cash and cash equivalents and restricted cash at end of year | 5,923 | 20,507 |
Reconciliation of cash and cash equivalents and restricted cash reported in the consolidated balance sheets | ||
Cash and cash equivalents | 5,715 | 20,298 |
Restricted cash | 208 | 209 |
Total cash and cash equivalents and restricted cash reported in the consolidated balance sheets | $ 5,923 | $ 20,507 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure [Table] | ||
Net Income (Loss) Attributable to Parent | $ 660 | $ (8,485) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Business Description and Summar
Business Description and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Summary of Significant Accounting Policies | (1) Business Description and Summary of Significant Accounting Policies Business Description The accompanying consolidated financial statements include the accounts of Xtant Medical Holdings, Inc., a Delaware corporation, and its wholly owned subsidiaries, are jointly referred to herein as “Xtant” or the “Company”). The terms “we,” “us” and “our” also refer to Xtant. All intercompany balances and transactions have been eliminated in consolidation. Xtant products serve the combined specialized needs of orthopedic and neurological surgeons, including orthobiologics for the promotion of bone healing, implants and instrumentation for the treatment of spinal disease, tissue grafts for the treatment of orthopedic disorders to promote healing following spine, cranial and foot surgeries and the development, manufacturing and sale of medical devices for use in orthopedic spinal surgeries. At December 31, 2023, the Company had cash and cash equivalents and restricted cash of $ 5.9 243.0 Management’s evaluation of going concern was conducted as part of its discussions with the Xtant Board of Directors’ review of the 2024 Annual Operating Plan. Management believes that our $ 5.9 Investor Rights Agreement We are party to an Investor Rights Agreement (as amended, the “Investor Rights Agreement”) with ROS Acquisition Offshore (“ROS”) and OrbiMed Royalty Opportunities II, LP (“Royalty Opportunities”), which are funds affiliated with OrbiMed Advisors LLC (“OrbiMed”). Under the Investor Rights Agreement, Royalty Opportunities and ROS are permitted to nominate a majority of the directors and designate the chairperson of our Board of Directors at subsequent annual meetings, as long as they maintain an ownership threshold in our Company of at least 40% of our then outstanding common stock (the “Ownership Threshold”). If Royalty Opportunities and ROS are unable to maintain the Ownership Threshold, the Investor Rights Agreement contemplates a reduction of nomination rights commensurate with our ownership interests. In addition, for so long as the Ownership Threshold is met, we must obtain the approval of a majority of our common stock held by Royalty Opportunities and ROS to proceed with the following actions: (i) issue new securities; (ii) incur over $250,000 of debt in a fiscal year; (iii) sell or transfer over $250,000 of our assets or businesses or our subsidiaries in a fiscal year; (iv) acquire over $250,000 of assets or properties in a fiscal year; (v) make capital expenditures over $125,000 individually, or $1.5 million in the aggregate during a fiscal year; (vi) approve our annual budget; (vii) appoint or remove the chairperson of our Board of Directors; and (viii) make, loans to, investments in, or purchase, or permit any subsidiary to purchase, any stock or other securities in another entity in excess of $250,000 in a fiscal year. The Investor Rights Agreement grants Royalty Opportunities and ROS the right to purchase from us a pro rata amount of any new securities that we may propose to issue and sell. The Investor Rights Agreement may be terminated (a) upon the mutual written agreement of all the parties, (b) upon our written notice, ROS or Royalty Opportunities if the ownership percentage of our then outstanding common stock of ROS and Royalty Opportunities is less than 10%, or (c) upon written notice of ROS and Royalty Opportunities. Use of Estimates The preparation of the financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Estimates and assumptions relating to receivables, inventories, goodwill, deferred income tax assets and liabilities, lease obligations and corresponding right-of-use asset, fair value of long-term debt, stock option grants and other equity awards are made at the end of each reporting period by management. Actual results could differ from those estimates. Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid investments purchased with an original maturity date of three months or less to be cash equivalents. Cash equivalents are recorded at cost, which approximates market value. At times, the Company maintains deposits in financial institutions in excess of federally insured limits. Cash and cash equivalents classified as restricted cash on our consolidated balance sheets are restricted as to withdrawal or use under the terms of certain credit agreements. The December 31, 2023 balance included lockbox deposits that are temporarily restricted due to timing at the period end. The lockbox deposits are applied against our line of credit the next business day. Trade Accounts Receivable Accounts receivable represents amounts due from customers for which revenue has been recognized. Normal terms on trade accounts receivable are net 30 days, and some customers are offered discounts for early pay. The Company performs credit evaluations when considered necessary, but generally does not require collateral to extend credit. The Company applies the practical expedient for contacts with payment terms of one year or less which does not consider the effect of the time value of money. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing receivables. The Company determines the allowance based on factors such as historical collection experience, customers’ current creditworthiness, customer concentration, age of accounts receivable balance, general economic conditions that may affect a customer’s ability to pay, and management judgment. In addition, we include provision for current expected credit loss based on historical collection experience adjusted for current economic conditions affecting collectability. Actual customer collections could differ from estimates. Account balances are charged to the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Provisions to the allowance for doubtful accounts are charged to expense. The Company does not have any off-balance sheet credit exposure related to its customers. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the specific identification method and includes materials, labor and overhead. The Company calculates an inventory reserve for estimated obsolescence and excess inventory based on historical usage and sales, as well as assumptions about future demand for its products. These estimates for excess and obsolete inventory are reviewed and updated on a quarterly basis. Increases in the inventory reserves result in a corresponding expense, which is recorded to cost of sales. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three seven years five years Intangible Assets Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values and reviewed for impairment whenever events or circumstances indicate their carrying amount may not be recoverable. Intangible assets include tradenames, customer relationships and patents and include costs to acquire and protect Company patents. Intangible assets are carried at cost less accumulated amortization. The Company amortizes these assets on a straight-line basis over their estimated useful lives. Other Assets Other assets consist of the short-term and the long-term portion of prepaid expenses and security deposits. Long-Lived Asset Impairment Long-lived assets, including property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. Goodwill Goodwill represents the excess of costs over fair value of assets of businesses acquired. Goodwill and intangible assets acquired in a business combination and determined to have indefinite useful lives are not amortized, instead they are tested for impairment at least annually and whenever events or circumstances indicate the carrying amount of the asset may not be recoverable. The Company conducts its impairment test on an annual basis and reviews the assumptions on a quarterly basis. We test goodwill for impairment at the reporting unit level, which is an operating segment or one level below an operating segment, referred to as a component. A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. Foreign Currency The Company generates revenues outside the United States in multiple foreign currencies including euros, Swiss francs, British pounds and in U.S. dollar-denominated transactions conducted with customers who generate revenue in currencies other than the U.S. dollar. The Company also incurs operating expenses in euros, Swiss francs and British pounds. All assets and liabilities of foreign subsidiaries which have a functional currency other than the U.S. dollar are translated at the rate of exchange at period-end, while elements of the income statement are translated at the average exchange rates in effect during the period. The net effect of these translation adjustments is shown as a component of accumulated other comprehensive income. Foreign currency transaction gains and losses are reported in other income, net. Revenue Recognition In the United States, the Company generates most of its revenue from independent commissioned sales agents. The Company consigns its orthobiologics products to hospitals and consign or loans its spinal implant sets to independent sales agents. The spinal implant sets typically contain the instruments, disposables, and spinal implants required to complete a surgery. Consigned sets are managed by the sales agent to service hospitals that are high volume users for multiple procedures. The Company ships replacement inventory to independent sales agents to replace the consigned inventory used in surgeries. Loaned sets are returned to the Company’s distribution center, replenished, and made available to sales agents for the next surgical procedure. For each surgical procedure, the sales agent reports use of the product by the hospital and, as soon as practicable thereafter, ensures that the hospital provides a purchase order to the Company. Revenue is recognized upon utilization of product. Additionally, the Company sells product directly to domestic and international stocking resellers, original equipment manufacturer resellers and private label resellers. Upon receipt and acceptance of a purchase order from a stocking reseller, the Company ships product and invoices the reseller. The Company recognizes revenue when the control is transferred upon shipment or upon delivery, based on the contract terms and legal requirements, and the transfer of title and risk of loss occurs. There is generally no customer acceptance or other condition that prevents the Company from recognizing revenue in accordance with the delivery terms for these sales transactions. In the normal course of business, the Company accepts returns of product that have not been implanted. Product returns are not material to the Company’s consolidated statements of operations. The Company accounts for shipping and handling activities as a fulfillment cost rather than a separate performance obligation. The Company’s policy is to record revenue net of any applicable sales, use, or excise taxes. Payment terms are generally net 30 days from invoice date and some customers are offered discounts for early pay. The consideration for goods or services reflects any fixed amount stated per the contract and estimates for any variable consideration, such as returns, discounts or rebates, to the extent that it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. For certain sales transactions, we incur GPO fees that are based on a contractual percentage of applicable sales and are treated as consideration payable to a customer and recorded as a reduction of revenue. Disaggregation of revenue The Company operates in one reportable segment with its net revenue derived primarily from the sale of orthobiologics and spinal implant products across North America. Sales are reported net of returns, discounts and rebates. The following table presents revenues from these product lines for the years ended December 31, 2023 and 2022 (dollars in thousands): Summary of Revenues from Product Lines Year Ended December 31, 2023 Percentage of Total Revenue Year Ended December 31, 2022 Percentage of Total Revenue Orthobiologics $ 58,605 64 % $ 47,143 81 % Spinal implant 32,698 36 % 10,826 19 % Total revenue $ 91,303 100 % $ 57,969 100 % Research and Development Research and development costs, which are principally related to internal costs for the development of new products, are expensed as incurred. Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding. Shares issued during the period and shares reacquired during the period are weighted for the portion of the period that they were outstanding. Diluted net income (loss) per share is computed in a manner consistent with that of basic earnings per share while giving effect to all potentially dilutive shares of common stock outstanding during the period, which include the assumed exercise of stock options and warrants using the treasury stock method. Fair Value of Financial Instruments The carrying values of financial instruments, including trade accounts receivable, accounts payable, accrued liabilities and long-term debt, approximate their fair values based on terms and related interest rates. The Company follows a framework for measuring fair value. The framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. During the years ended December 31, 2023 and 2022, there was no reclassification in financial assets or liabilities between Level 1, 2 or 3 categories. Recently Issued Accounting Pronouncements In December 2023, the Financial Accounting Standards Board Accounting Standards Update (“ASU”) |
Acquisition of Coflex and CoFix
Acquisition of Coflex and CoFix Product Lines | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition of Coflex and CoFix Product Lines | (2) Acquisition of Coflex and CoFix Product Lines On February 28, 2023, the Company entered into an Equity Purchase Agreement (the “Equity Purchase Agreement”) with Surgalign SPV, Inc. (“Surgalign SPV”), a wholly owned subsidiary of Surgalign Spine Technologies, Inc., (“Seller”), Seller and Surgalign Holdings, Inc., pursuant to which the Company purchased all of the issued and outstanding shares of common stock of Surgalign SPV, which shares constituted all of the outstanding equity of Surgalign SPV, for an aggregate purchase price of $ 17.0 Immediately prior to the Closing, Seller and its affiliates transferred and assigned to Surgalign SPV, a newly formed entity wholly owned by Seller, certain intellectual property, contractual rights and other assets related to the design, manufacture, sale and distribution of Seller’s Coflex and CoFix products in the United States (the “Coflex Business”). The Coflex and CoFix products have been approved by the U.S. Food and Drug Administration for the treatment of moderate to severe lumbar spinal stenosis in conjunction with decompression and provide minimally invasive, motion preserving stabilization. In conjunction with the Equity Purchase Agreement, on February 28, 2023, the Company entered into a Transition Services Agreement with Surgalign SVP and Seller, whereby Seller agreed to provide, or cause to be provided, to the Company on and after the effective date of the Equity Purchase Agreement, after giving effect to the Closing, certain transitional services related to the transition of the Coflex Business. The Company funded the Purchase Price with cash on hand and approximately $ 5.0 million of indebtedness incurred under our term loan, refer to Note 10, “ Debt, The Company recorded the purchase of this acquisition using the acquisition method of accounting and, accordingly, recognized the assets acquired at their fair values as of the date of acquisition. The table below represents the allocation of the total consideration for Surgalign SPV’s assets and liabilities based on management’s estimates of their respective fair values as of February 28, 2023 (in thousands): Schedule of Recognized Identified Assets Acquired and Liabilities Assumed Inventories $ 1,589 Equipment 947 Intangible assets 10,940 Net assets acquired 13,476 Goodwill 3,524 Total purchase consideration $ 17,000 The acquisition was recorded by allocating the costs of the net assets acquired based on their estimated fair values at the acquisition date. The fair values were based on management’s analysis, including work performed by third-party valuation specialists. The acquisition strengthened the Company’s spine portfolio with the addition of the Coflex Business. Coflex is a differentiated and minimally invasive motion preserving stabilization implant that is FDA PMA-approved for the treatment of moderate to severe lumbar spinal stenosis in conjunction with decompression. This potential benefit resulted in the Company paying a premium for the acquisition resulting in the recognition of $ 3.5 |
Acquisition of Surgalign Holdin
Acquisition of Surgalign Holdings, Inc.’s Hardware and Biologics Business | 12 Months Ended |
Dec. 31, 2023 | |
Acquisition Of Surgalign Holdings Inc.s Hardware And Biologics Business | |
Acquisition of Surgalign Holdings, Inc.’s Hardware and Biologics Business | (3) Acquisition of Surgalign Holdings, Inc.’s Hardware and Biologics Business On August 10, 2023, the Company completed the acquisition (the “Transaction”) of the assets of Surgalign Holdings, Inc. (“Surgalign Holdings”), and its subsidiaries used in Surgalign Holding’s hardware and biologics business. The acquired assets included specified inventory, intellectual property and intellectual property rights, contracts, equipment and other personal property, records, the outstanding equity securities of Surgalign Holdings’s international subsidiaries, and intangibles that were related to Surgalign Holding’s hardware and biologics business (collectively, the “Assets”). As part of the Transaction, the Company assumed and certain specified liabilities of Surgalign Holdings (collectively, the “Liabilities”), all pursuant to the Asset Purchase Agreement, dated June 18, 2023, between Surgalign Holdings and us (as amended, the “Asset Purchase Agreement”). The Transaction was conducted through a process supervised by the United States Bankruptcy Court for the Southern District of Texas, Houston Division (the “Bankruptcy Court”) in connection with Surgalign Holdings’ bankruptcy proceedings; and therefore, the Company acquired the Assets with limited representations and warranties. The Bankruptcy Court issued a Sale Order on August 9, 2023 approving and authorizing the Transaction. The Company funded the purchase price of $5.0 million, plus Liabilities, with cash on hand. The Company recorded the purchase of the Transaction using the acquisition method of accounting and, accordingly, recognized the assets acquired at their fair values as of the date of acquisition. The table below represents the preliminary allocation of the total consideration for Surgalign Holdings’ assets and liabilities based on management’s estimates of their respective fair values as of August 10, 2023 (in thousands): Schedule of Business Acquisitions Cash $ 1,087 Accounts receivable 1,627 Inventories 15,300 Prepaids and other current assets 825 Equipment 2,067 Right-of-use asset 576 Accounts payable (530 ) Accrued liabilities (1,170 ) Current portion of lease liability (238 ) Lease liability, less current portion (338 ) Net assets acquired 19,206 Bargain purchase gain (11,694 ) Deferred tax liability (1,922 ) Total purchase consideration $ 5,590 The Transaction was recorded by allocating the costs of the net assets acquired based on their estimated fair values at the acquisition date. The fair values were based on management’s analysis, including work performed by third-party valuation specialists. These values changed from those previously reported in our Form 10-Q for the three and nine months ended September 30, 2023 for adjustments to the valuation related to assumed future cash flows and inventory utilization which ultimately affected values associated with inventories and equipment. Accounting Standards Codification (“ASC”) 805, Business Combinations 11.7 The Company believes that the Transaction will strengthen our growing orthobiologics and spinal fusion device portfolio, while expanding the Company’s commercial footprint with new contracts and distributors. |
Acquisition of NanOss Productio
Acquisition of NanOss Production Operations | 12 Months Ended |
Dec. 31, 2023 | |
Acquisition Of Nanoss Production Operations | |
Acquisition of NanOss Production Operations | (4) Acquisition of NanOss Production Operations On October 23, 2023, the Company acquired the nanOss production operations from RTI Surgical, Inc. (“RTI”) pursuant to an Asset Purchase Agreement dated October 23, 2023 between the Company and RTI (the “Asset Purchase Agreement”). Under the terms of the Asset Purchase Agreement, the Company acquired certain assets, including equipment and inventory, used in RTI’s synthetic bone graft business and assumed from RTI the lease for the nanOss production facility located in Greenville, North Carolina. The purchase price for the assets was $ 2 0.2 0.6 The Company recorded the purchase of this acquisition using the acquisition method of accounting and, accordingly, recognized the assets acquired at their fair values as of the date of acquisition. The table below represents the allocation of the total consideration for certain RTI assets based on management’s estimates of their respective fair values as of October 23, 2023 (in thousands): Schedule of Business Acquisitions Inventories $ 1,150 Fixed assets 267 Intangible assets 220 Net assets acquired 1,637 Goodwill 573 Total purchase consideration $ 2,210 The following unaudited pro forma combined financial information summarizes the results of operations for the periods indicated as if the acquisition of the assets of Surgalign Holdings, Inc., the acquisition of Surgalign SPV, Inc. and the acquisition of nanOss production operations from RTI Surgical, Inc. had been completed as of January 1, 2022 (in thousands): Schedule of Acquisition Pro Forma Information 2023 2022 Year Ended December 31, 2023 2022 Revenues $ 125,950 $ 139,686 Net income (loss) 9,940 (17,963 ) Pro forma information reflects adjustments that are expected to have a continuing impact on the Company’s results of operations and are directly attributable to the acquisition of the assets of Surgalign Holdings, Inc., the acquisition of Surgalign SPV, Inc. and the acquisition of nanOss production operations from RTI Surgical, Inc. The unaudited pro forma results include adjustments to reflect the amortization of the inventory step-up and the incremental intangible asset amortization to be incurred based on the preliminary values of each identifiable intangible asset. The pro forma amounts do not purport to be indicative of the results that would have actually been obtained if the transactions had occurred as of January 1, 2022 or that may be obtained in the future, and do not reflect future synergies, integration costs, or other such costs or savings. |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
Receivables | (5) Receivables The Company’s provision for current expected credit loss is determined based on historical collection experience adjusted for current economic conditions affecting collectability. Actual customer collections could differ from estimates. Account balances are charged to the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Provisions to the allowance for credit losses are charged to expense. Activity within the allowance for credit losses was as follows for years ended December 31, 2023 and 2022 (in thousands): Schedule of Allowance for Credit Losses December 31, 2023 December 31, 2022 Balance at January 1 $ 515 $ 552 Provision for current expected credit losses 497 243 Write-offs against allowance (92 ) (280 ) $ 920 $ 515 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | (6) Inventories Inventories consist of the following (in thousands): Schedule of Inventories December 31, 2023 December 31, 2022 Raw materials $ 7,269 $ 5,628 Work in process 1,562 798 Finished goods 28,054 10,859 Total $ 36,885 $ 17,285 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | (7) Property and Equipment, Net Property and equipment, net are as follows (in thousands): Schedule of Property and Equipment, Net December 31, 2023 December 31, 2022 Equipment $ 6,858 $ 5,598 Computer equipment 1,330 1,043 Computer software 230 230 Leasehold improvements 4,347 4,105 Surgical instruments 14,648 11,266 Assets not yet in service 959 1,507 Total cost 28,372 23,749 Less: accumulated depreciation (19,680 ) (17,964 ) Property and equipment, net $ 8,692 $ 5,785 Depreciation expense related to property and equipment, including property under finance lease, for the years ended December 31, 2023 and 2022 was $ 1.8 1.2 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | (8) Goodwill and Intangible Assets The results of the Company’s annual goodwill impairment tests for the years ended December 31, 2023 and 2022 indicated that no goodwill impairment existed as of the test date. The change in the carrying amount of goodwill during the year ended December 31, 2023 included the following (in thousands): Schedule of Change in Carrying Amount of Goodwill December 31, 2022 $ 3,205 Goodwill acquired during the year 4,097 December 31, 2023 7,302 The following table sets forth information regarding intangible assets (in thousands): Schedule of Intangible of Assets December 31, 2023: Weighted Average Life Cost Accumulated Amortization Net Patents 11 $ 2,777 $ (672 ) $ 2,105 Customer List 6 8,000 (1,111 ) 6,889 Tradenames 10 1,190 (99 ) 1,091 $ 11,967 $ (1,882 ) $ 10,085 December 31, 2022: Weighted Average Life Cost Accumulated Amortization Net Patents 15 $ 807 $ (463 ) $ 344 Amortization expense was $ 1.4 0.1 Schedule of Future Amortization Expense for Intangible Assets 2024 $ 1,729 2025 1,727 2026 1,713 2027 1,680 2028 1,679 Thereafter 1,557 Total $ 10,085 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | (9) Accrued Liabilities Accrued liabilities consist of the following (in thousands): Schedule of Accrued Liabilities December 31, 2023 December 31, 2022 Wages/commissions payable $ 8,890 $ 4,464 Other accrued liabilities 1,529 1,032 Accrued liabilities $ 10,419 $ 5,496 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | (10) Debt Long-term debt consists of the following (in thousands): Schedule of Long-term Debt December 31, 2023 December 31, 2022 Amounts due under the Term Facility $ 17,000 $ 12,000 Accrued end-of-term payments 456 216 Less: unamortized debt issuance costs (289 ) (196 ) Less: current maturities — (2,333 ) Long-term debt, less issuance costs $ 17,167 $ 9,687 On May 6, 2021, the Company, as guarantor, and certain of our subsidiaries, as borrowers (collectively, the “Borrowers”), entered into a Credit, Security and Guaranty Agreement (Term Loan) (the “Term Credit Agreement”) and Credit, Security and Guaranty Agreement (Revolving Loan) (the “Revolving Credit Agreement” and, together with the Term Credit Agreement, the “Credit Agreements”) with MidCap Financial Trust and MidCap Funding IV Trust, as respective agents (“MidCap”). The Term Credit Agreement provides for a secured term loan facility (the “Term Facility”) in an aggregate principal amount of $ 12.0 5.0 8.0 On March 7, 2022, the Credit Agreements were amended to, among other things, (i) provide for a waiver of compliance with respect to the Company’s minimum adjusted EBITDA requirement if and so long as the Company’s liquidity (as specifically defined in the Credit Agreements) is in excess of $ 14 4.00 On February 28, 2023, in connection with the acquisition of Surgalign SPV, the Term Credit Agreement was amended pursuant to an Amendment No. 3 to Credit, Security and Guarantee Agreement (Term Loan) (“Term Amendment No. 3”) to provide approximately $ 5.0 1 2.5 On August 10, 2023, in connection with the acquisition certain assets and liabilities of Surgalign Holdings, Inc. that were related to Surgalign Holding, Inc.’s hardware and biologics business, the Company entered into a Limited Consent and Amendment No. 4 to Credit, Security and Guarantee Agreement (Term Loan) (“Term Amendment No. 4”), which amends the Term Credit Agreement, and a Limited Consent and Amendment No. 4 to Credit, Security and Guarantee Agreement (Revolving Loan) (“Revolving Amendment No. 4” and, together with Term Amendment No. 4, the “Amendments No. 4”), which amends the Revolving Credit Agreement. The Amendments No. 4 permits the acquisition certain assets and liabilities of Surgalign Holdings, Inc., as described above, and provide the Company with additional flexibility with respect to holding international subsidiaries. The Amendments No. 4 contain standard covenants regarding holding international subsidiaries. The terms of borrowing under the Credit Agreements otherwise remain unchanged. The Facilities have a maturity date of May 1, 2026 0.7 As of December 31, 2023, the Company had $ 4.6 3.4 The loans and other obligations pursuant to the Credit Agreements bear interest at a per annum rate equal to the sum of the SOFR rate, as such term is defined in the Credit Agreements, plus 0.11 7.00 4.50 2.50 14.88 9.96 The Credit Agreements contain affirmative and negative covenants customarily applicable to senior secured credit facilities, including covenants that, among other things, limit or restrict the ability of the Borrowers, subject to negotiated exceptions, to incur additional indebtedness and additional liens on their assets, engage in mergers or acquisitions or dispose of assets, pay dividends or make other distributions, voluntarily prepay other indebtedness, enter into transactions with affiliated persons, make investments, and change the nature of their businesses. In addition, the Credit Agreements require the Borrowers and the Company to maintain net product revenue at or above minimum levels and to maintain a minimum adjusted EBITDA and a minimum liquidity, in each case at levels specified in the Credit Agreements. As of December 31, 2023, we were in compliance with all covenants under the Credit Agreements. On March 7, 2024, the Term Credit Agreement was amended and restated to, among other things, extend the maturity date to March 1, 2029 10.0 7.00 6.50 8.0 17.0 March 1, 2029 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Equity | (11) Equity Private Placement 2023 Private Placement On July 3, 2023, the Company entered into a securities purchase agreement pursuant to which the Company issued an aggregate of 20,000,000 0.75 15.0 14.0 2022 Private Placement On August 25, 2022, the Company closed the first tranche of a private placement (the “First Closing”) with several accredited investors (the “Private Placement”). At the First Closing, the Company sold approximately 14.1 3.5 6.75 6.3 The closing of the second tranche of the Private Placement (the “Second Closing”) occurred on October 7, 2022. At the Second Closing, the Company sold an additional approximately 6.2 1.6 3.0 The warrants, described in more detail in Note 13, “Warrants,” 0.48 per share, are subject to customary anti-dilution, but not price protection, adjustments, are immediately exercisable and expire on the five-year anniversary of the First Closing. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | (12) Stock-Based Compensation Xtant Medical Holdings, Inc. 2023 Equity Incentive Plan On July 26, 2023, our stockholders approved and adopted the Xtant Medical Holdings, Inc. 2023 Equity Incentive Plan (the “2023 Plan”), which replaced the Xtant Medical Holdings, Inc. 2018 Equity Incentive Plan (the “2018 Plan”) with respect to future grants of equity awards, although the 2018 Plan continues to govern equity awards granted under the 2018 Plan. The 2023 Plan permits the Board of Directors, or a committee thereof, to grant to eligible employees, non-employee directors, and consultants of the Company non-statutory and incentive stock options, stock appreciation rights, restricted stock awards, restricted stock units, deferred stock units, performance awards, non-employee director awards, and other stock-based awards. The Board of Directors may select 2023 Plan participants and determine the nature and amount of awards to be granted. The maximum number of shares of our common stock available for issuance under the 2023 Plan, subject to adjustment pursuant to the terms of the 2023 Plan, is (i) 5,500,000 7,695,812 6,686,090 9,968,106 Total stock-based compensation expense recognized for employees and directors was $ 2.7 2.5 Stock Options Stock options granted under the 2023 Plan may be either incentive stock options to employees, as defined in Section 422A of the Internal Revenue Code of 1986, or non-qualified stock options. The exercise price of all stock options granted under the 2023 Plan must be at least equal to the fair market value of the shares of common stock on the date of the grant. The 2023 Plan is administered by the Board. Stock options granted under the 2023 Plan are generally not transferable, vest in installments over the requisite service period, and are exercisable during the stated contractual term of the option only by the optionee. Stock option activity, including options granted under the 2023 Plan, the 2018 Plan and the prior plan was as follows: Schedule of Share-based Compensation, Stock Options Activity 2023 2022 Shares Weighted Average Price Weighted Average Contract (years) Shares Weighted Average Price Weighted Average Contract (years) Outstanding at January 1 3,360,664 1.51 3,201,666 1.80 Granted 1,602,013 1.16 602,123 0.64 Cancelled or expired (86,849 ) 6.58 (443,125 ) 2.39 Outstanding at December 31 4,875,828 1.31 7.97 3,360,664 1.51 8.19 Exercisable at December 31 2,116,957 1.51 6.93 1,314,560 2.03 7.67 As of December 31, 2023, total compensation expense related to unvested employee stock options not yet recognized was $ 2.4 2.6 0.99 0.55 0.1 Schedule of Assumptions of Stock Option Granted Year Ended December 31, 2023 2022 Risk free interest rate 4.3 % 3.5 % Dividend yield 0 % 0 % Expected term 6.2 6.3 Expected volatility 111 % 112 % Deferred Stock Units and Restricted Stock Units Under our non-employee director compensation program, non-employee directors may elect to receive restricted stock units, or RSUs, or deferred stock units, or DSUs, in lieu of all or a portion of the annual cash retainers payable to such director. Each RSU or DSU represents the right to receive one share of our common stock. Deferred stock unit and restricted stock unit activity for awards granted under the 2023 Plan and 2018 Plan was as follows: Schedule of Restricted Stock Activity 2023 2022 Shares Weighted Average Fair Value at Grant Date Per Share Shares Weighted Average Fair Value at Grant Date Per Share Outstanding at January 1 3,612,433 0.88 2,970,104 1.39 Granted 1,942,614 1.15 2,461,528 0.55 Vested (1,536,251 ) 0.90 (1,500,394 ) 1.26 Cancelled (494,121 ) 0.54 (318,805 ) 1.32 Outstanding at December 31 3,524,675 1.07 3,612,433 0.88 Total compensation expense related to unvested deferred stock units and restricted stock units not yet recognized was $ 3.0 2.1 |
Warrants
Warrants | 12 Months Ended |
Dec. 31, 2023 | |
Warrants | |
Warrants | (13) Warrants As noted in Note 11, “ Equity 3.5 While the Warrants are classified as a component of equity, we were required to allocate the proceeds of the Private Placement between the shares of common stock and the Warrants issued based on their relative fair values. The fair value of the Warrants, $ 0.47 5 107 The following table summarizes our warrant activities for the years ended December 31, 2023 and 2022: Schedule of Warrant Activity Common Stock Warrants Weighted Average Exercise Price Outstanding as of January 1, 2022 7,111,112 2.29 Issued 5,076,358 0.48 Outstanding as of December 31, 2022 12,187,470 1.53 Issued — 0.00 Outstanding as of December 31, 2023 12,187,470 1.53 As of December 31, 2023, the weighted average remaining contractual term of outstanding warrants was 2.8 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (14) Commitments and Contingencies Operating Leases We currently lease various office facilities. These leases are under non-cancelable operating lease agreements with expiration dates in 2025 and 2026. We have the option to extend certain leases to five or ten-year term(s) and we have the right of first refusal on any sale. The Company records lease liabilities within current liabilities or long-term liabilities based upon the length of time associated with the lease payments. The Company records its long-term operating leases as right-of-use assets. Upon initial adoption, using the modified retrospective transition approach, no leases with terms less than 12 months have been capitalized to the consolidated balance sheet consistent with ASC 842. Instead, these leases are recognized in the consolidated statement of operations on a straight-line expense throughout the lives of the leases. No Company leases contain common area maintenance or security agreements. We have made certain assumptions and judgments when applying ASC 842, the most significant of which is that we elected the package of practical expedients available for transition, which allow us to not reassess whether expired or existing contracts contain leases under the new definition of a lease, lease classification for expired or existing leases, and whether previously capitalized initial direct costs would qualify for capitalization under ASC 842. Additionally, we did not elect to use hindsight when considering judgments and estimates such as assessments of lessee options to extend or terminate a lease or purchase the underlying asset. As of December 31, 2023, the weighted-average remaining lease term was 2.0 0.7 0.6 5.64 12.46 Future minimum payments as of December 31, 2023 under these long-term operating leases are as follows (in thousands): Schedule of Future Minimum Rental Payments for Operating Leases 2024 $ 918 2025 680 2026 119 Total future minimum lease payments 1,717 Less: amount representing interest (128 ) Present value of obligations under operating leases 1,589 Less: current portion (830 ) Long-term operating lease obligations $ 759 Litigation We may be subject to potential liabilities under government regulations and various claims and legal actions that are pending but we believe are immaterial at this time or may be asserted in the future from time to time. These matters arise in the ordinary course and conduct of our business and may include, for example, commercial, product liability, intellectual property, and employment matters. We intend to continue to defend the Company vigorously in such matters and when warranted, take legal action against others. Furthermore, we regularly assess contingencies to determine the degree of probability and range of possible loss for potential accrual in our financial statements. An estimated loss contingency is accrued in our financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Based on our assessment, we have adequately accrued an amount for contingent liabilities currently in existence. We do not accrue amounts for liabilities that we do not believe are probable or that we consider immaterial to our overall financial position. Litigation is inherently unpredictable, and unfavorable resolutions could occur. As a result, assessing contingencies is highly subjective and requires judgment about future events. The amount of ultimate loss may exceed the Company’s current accruals, and it is possible that its cash flows or results of operations could be materially affected in any particular period by the unfavorable resolution of one or more of these contingencies. Indemnifications Our indemnification arrangements generally include limited warranties and certain provisions for indemnifying customers against liabilities if our products or services infringe a third-party’s intellectual property rights. To date, we have not incurred any material costs as a result of such warranties or indemnification provisions and have not accrued any liabilities related to such obligations in the accompanying consolidated financial statements. We have also agreed to indemnify our directors and executive officers for costs associated with any fees, expenses, judgments, fines, and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by us, arising out of that person’s services as our director or officer or that person’s services provided to any other company or enterprise at our request. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (15) Income Taxes The Company’s (benefit) provision for income taxes differs from applying the statutory U.S. Federal income tax rate to income before taxes. The primary difference results from providing for state income taxes and from deducting certain expenses for financial statement purposes but not for federal income tax purposes. The components of income (loss) before (benefit) provision for income taxes consist of the following (in thousands): Schedule of Components of Income Loss Before (Benefit) Provision for Income Tax 2023 2022 Year Ended December 31, 2023 2022 United States $ (1,099 ) $ (8,416 ) Foreign $ 62 $ — Total $ (1,037 ) $ (8,416 ) The components of the income tax (benefit) provision are as follows (in thousands): Schedule of Components of Income Tax (Benefit) Provision 2023 2022 Year Ended December 31, 2023 2022 Current: Federal $ — $ — State 93 69 Foreign 111 — Total current 204 69 Deferred: Federal (1,422 ) — State (479 ) — Total deferred (1,901 ) — Total (benefit) provision for income taxes $ (1,697 ) $ 69 The reconciliation of income tax attributable to operations computed at the U.S. Federal statutory income tax rate of 21 Schedule of Effective Income Tax Rate Reconciliation 2023 2022 Year Ended December 31, 2023 2022 Statutory Federal tax rate $ (218 ) $ (1,767 ) Valuation allowance 501 1,510 State income taxes, net of Federal benefit (764 ) (323 ) Bargain purchase gain (2,456 ) — Permanent differences 403 — Change in state income tax rate 242 (22 ) Stock compensation adjustment and other reconciling items 275 640 Nondeductible executive compensation 320 31 Total (benefit) provision for income taxes $ (1,697 ) $ 69 Deferred tax components are as follows (in thousands): Schedule of Deferred Tax Assets and Liabilities 2023 2022 At December 31, 2023 2022 Deferred tax assets: Accrued liability for vacation $ 160 $ 78 Accrued commissions and bonuses / compensation 641 320 Accrued contingencies 29 55 Amortization 358 22 Bad debt reserve 242 139 Capitalized R&D expenses 567 287 Charitable contributions carryforward 15 15 Lease liability 371 385 Interest expense 3,027 2,391 Inventory reserve 1,661 3,059 Net operating loss carryovers 18,626 13,721 Stock option compensation 730 677 UNICAP 44 76 Other 100 55 Total deferred tax assets 26,571 21,280 Deferred tax liabilities: Depreciation (448 ) (62 ) Right of use asset (306 ) (372 ) Prepaids (51 ) (56 ) Total deferred tax liabilities (805 ) (490 ) Valuation allowance (25,787 ) (20,790 ) Net deferred tax liabilities $ (21 ) $ — The ultimate realization of deferred tax assets is dependent upon the existence, or generation, of taxable income in the periods when those temporary differences and net operating loss carryovers are deductible. Management considers the scheduled reversal of deferred tax liabilities, taxes paid in carryover years, projected future taxable income, available tax planning strategies, and other factors in making this assessment. Based on available evidence, management does not believe it is more likely than not that all of the deferred tax assets will be realized. Accordingly, the Company has established a valuation allowance equal to the net realizable deferred tax assets. The valuation allowance increased by $ 5.0 1.5 At December 31, 2023 and 2022, the Company had total domestic Federal, state and foreign net operating loss carryovers of approximately $ 54.3 57.4 16.1 Federal net operating losses generated prior to 2018 and State net operating loss carryovers expire at various dates between 2024 and 2043 80 The Company has completed a study to assess whether an ownership change, as defined by Section 382 of the Code, had occurred from the Company’s formation through December 31, 2019. Based upon this study, the Company determined that an ownership change occurred during 2018. Accordingly, the Company reduced its deferred tax assets related to the federal NOL carryforwards that are anticipated to expire unused as a result of these ownership changes. These tax attributes were excluded from deferred tax assets with a corresponding reduction of the valuation allowance with no net effect on income tax expense or the effective tax rate. Future ownership changes may further limit the Company’s ability to utilize its remaining tax attributes. The 2021 through 2023 tax years remain open to examination by the Internal Revenue Service and various other state tax agencies. These taxing authorities have the authority to examine those tax years until the applicable statute of limitations expire. Foreign tax years remain open from 2019 to 2023. As of December 31, 2023, we have no unrecognized tax benefits in long-term liabilities. The Company did not recognize any material interest or penalties related to income taxes for the years ended December 31, 2023 and 2022. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Net Income (Loss) Per Share: | |
Net Income (Loss) Per Share | (16) Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding. Shares issued during the period and shares reacquired during the period are weighted for the portion of the period that they were outstanding. Diluted net income (loss) per share is computed in a manner consistent with that of basic earnings per share while giving effect to all potentially dilutive shares of common stock outstanding during the period, which include the assumed exercise of stock options and warrants using the treasury stock method. Diluted net income (loss) per share was the same as basic net income (loss) per share for the year ended December 31, 2022, as shares issuable upon the exercise of stock options and warrants were anti-dilutive as a result of the net loss incurred for the period. The table below sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): Schedule of Basic and Diluted Earnings Per Share 2023 2022 Year Ended December 31, 2023 2022 Numerator: Net income (loss) $ 660 $ (8,485 ) Denominator: Basic – weighted average shares outstanding 119,093,687 94,085,197 Effect of dilutive securities: Employee restricted stock units 2,447,519 — Warrants 5,252,112 — Diluted – weighted average shares outstanding 126,793,318 94,085,197 Basic earnings per share 0.01 (0.09 ) Diluted earnings per share 0.01 (0.09 ) For the years ended December 31, 2023 and 2022, 9,363,668 19,160,567 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | (17) Employee Benefit Plans The Company has a 401(k) plan for our employees. The 401(k) plan is a defined contribution plan covering substantially all of our employees. Employees are eligible to participate in the plan on the first day of any month after starting employment. Employees are allowed to contribute a percentage of their wages to the 401(k) plan, subject to statutorily prescribed limits and are subject to a discretionary employer match of 100 wage deferrals not in excess of 4% of their wages 0.5 0.4 |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flow Information | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosure of Cash Flow Information | (18) Supplemental Disclosure of Cash Flow Information Supplemental cash flow information is as follows (in thousands): Schedule of Supplemental Cash Flow Information 2023 2022 Year Ended December 31, 2023 2022 Cash paid during the period for: Interest $ 2,552 $ 1,454 Non-cash activities: Fixed assets acquired under finance lease $ — $ 159 Revaluation of lease liability and right of use asset $ — $ 234 Operating lease liabilities arising from obtaining right-of-use assets $ 260 $ — |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (19) Related Party Transactions As described in more detail under Note 1, “ Business Description and Summary of Significant Accounting Policies All related party transactions are reviewed and approved by the Audit Committee or the disinterested members of the full Board. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | (20) Segment and Geographic Information The Company operates in one segment based upon the Company’s organizational structure, the way in which the operations and investments are managed and evaluated by the chief operating decision maker (“CODM”). The Company shares common, centralized support functions which report directly to the CODM and decision-making regarding the Company’s overall operating performance and allocation of Company resources is assessed on a consolidated basis. The Company attributes revenues to geographic areas based on the location of the customer. Approximately 94 99 Schedule of Revenues by Geographic Region 2023 2022 Year Ended December 31, 2023 2022 United States $ 85,862 $ 57,162 Rest of World 5,441 807 Total $ 91,303 $ 57,969 |
Immaterial Correction to Prior
Immaterial Correction to Prior Period Financial Statements | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Immaterial Correction to Prior Period Financial Statements | (21) Immaterial Correction to Prior Period Financial Statements Prior to fourth quarter of 2023, the Company recognized GPO fees in sales and marketing expense based on interpretation of accounting guidance instead of recognizing as a reduction to revenue. The Company considered both the quantitative and qualitative factors within the provisions of SEC Staff Accounting Bulletin No. 99, Materiality, and Staff Accounting Bulletin No. 108, Considering the Effect of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements The correction of the misstatement would have resulted in a decrease to revenue and a decrease to sales and marketing expense of $ 1.0 |
Business Description and Summ_2
Business Description and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description | Business Description The accompanying consolidated financial statements include the accounts of Xtant Medical Holdings, Inc., a Delaware corporation, and its wholly owned subsidiaries, are jointly referred to herein as “Xtant” or the “Company”). The terms “we,” “us” and “our” also refer to Xtant. All intercompany balances and transactions have been eliminated in consolidation. Xtant products serve the combined specialized needs of orthopedic and neurological surgeons, including orthobiologics for the promotion of bone healing, implants and instrumentation for the treatment of spinal disease, tissue grafts for the treatment of orthopedic disorders to promote healing following spine, cranial and foot surgeries and the development, manufacturing and sale of medical devices for use in orthopedic spinal surgeries. At December 31, 2023, the Company had cash and cash equivalents and restricted cash of $ 5.9 243.0 Management’s evaluation of going concern was conducted as part of its discussions with the Xtant Board of Directors’ review of the 2024 Annual Operating Plan. Management believes that our $ 5.9 |
Investor Rights Agreement | Investor Rights Agreement We are party to an Investor Rights Agreement (as amended, the “Investor Rights Agreement”) with ROS Acquisition Offshore (“ROS”) and OrbiMed Royalty Opportunities II, LP (“Royalty Opportunities”), which are funds affiliated with OrbiMed Advisors LLC (“OrbiMed”). Under the Investor Rights Agreement, Royalty Opportunities and ROS are permitted to nominate a majority of the directors and designate the chairperson of our Board of Directors at subsequent annual meetings, as long as they maintain an ownership threshold in our Company of at least 40% of our then outstanding common stock (the “Ownership Threshold”). If Royalty Opportunities and ROS are unable to maintain the Ownership Threshold, the Investor Rights Agreement contemplates a reduction of nomination rights commensurate with our ownership interests. In addition, for so long as the Ownership Threshold is met, we must obtain the approval of a majority of our common stock held by Royalty Opportunities and ROS to proceed with the following actions: (i) issue new securities; (ii) incur over $250,000 of debt in a fiscal year; (iii) sell or transfer over $250,000 of our assets or businesses or our subsidiaries in a fiscal year; (iv) acquire over $250,000 of assets or properties in a fiscal year; (v) make capital expenditures over $125,000 individually, or $1.5 million in the aggregate during a fiscal year; (vi) approve our annual budget; (vii) appoint or remove the chairperson of our Board of Directors; and (viii) make, loans to, investments in, or purchase, or permit any subsidiary to purchase, any stock or other securities in another entity in excess of $250,000 in a fiscal year. The Investor Rights Agreement grants Royalty Opportunities and ROS the right to purchase from us a pro rata amount of any new securities that we may propose to issue and sell. The Investor Rights Agreement may be terminated (a) upon the mutual written agreement of all the parties, (b) upon our written notice, ROS or Royalty Opportunities if the ownership percentage of our then outstanding common stock of ROS and Royalty Opportunities is less than 10%, or (c) upon written notice of ROS and Royalty Opportunities. |
Use of Estimates | Use of Estimates The preparation of the financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Estimates and assumptions relating to receivables, inventories, goodwill, deferred income tax assets and liabilities, lease obligations and corresponding right-of-use asset, fair value of long-term debt, stock option grants and other equity awards are made at the end of each reporting period by management. Actual results could differ from those estimates. |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid investments purchased with an original maturity date of three months or less to be cash equivalents. Cash equivalents are recorded at cost, which approximates market value. At times, the Company maintains deposits in financial institutions in excess of federally insured limits. Cash and cash equivalents classified as restricted cash on our consolidated balance sheets are restricted as to withdrawal or use under the terms of certain credit agreements. The December 31, 2023 balance included lockbox deposits that are temporarily restricted due to timing at the period end. The lockbox deposits are applied against our line of credit the next business day. |
Trade Accounts Receivable | Trade Accounts Receivable Accounts receivable represents amounts due from customers for which revenue has been recognized. Normal terms on trade accounts receivable are net 30 days, and some customers are offered discounts for early pay. The Company performs credit evaluations when considered necessary, but generally does not require collateral to extend credit. The Company applies the practical expedient for contacts with payment terms of one year or less which does not consider the effect of the time value of money. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing receivables. The Company determines the allowance based on factors such as historical collection experience, customers’ current creditworthiness, customer concentration, age of accounts receivable balance, general economic conditions that may affect a customer’s ability to pay, and management judgment. In addition, we include provision for current expected credit loss based on historical collection experience adjusted for current economic conditions affecting collectability. Actual customer collections could differ from estimates. Account balances are charged to the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Provisions to the allowance for doubtful accounts are charged to expense. The Company does not have any off-balance sheet credit exposure related to its customers. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the specific identification method and includes materials, labor and overhead. The Company calculates an inventory reserve for estimated obsolescence and excess inventory based on historical usage and sales, as well as assumptions about future demand for its products. These estimates for excess and obsolete inventory are reviewed and updated on a quarterly basis. Increases in the inventory reserves result in a corresponding expense, which is recorded to cost of sales. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally three seven years five years |
Intangible Assets | Intangible Assets Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values and reviewed for impairment whenever events or circumstances indicate their carrying amount may not be recoverable. Intangible assets include tradenames, customer relationships and patents and include costs to acquire and protect Company patents. Intangible assets are carried at cost less accumulated amortization. The Company amortizes these assets on a straight-line basis over their estimated useful lives. |
Other Assets | Other Assets Other assets consist of the short-term and the long-term portion of prepaid expenses and security deposits. |
Long-Lived Asset Impairment | Long-Lived Asset Impairment Long-lived assets, including property and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets. |
Goodwill | Goodwill Goodwill represents the excess of costs over fair value of assets of businesses acquired. Goodwill and intangible assets acquired in a business combination and determined to have indefinite useful lives are not amortized, instead they are tested for impairment at least annually and whenever events or circumstances indicate the carrying amount of the asset may not be recoverable. The Company conducts its impairment test on an annual basis and reviews the assumptions on a quarterly basis. We test goodwill for impairment at the reporting unit level, which is an operating segment or one level below an operating segment, referred to as a component. A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. |
Foreign Currency | Foreign Currency The Company generates revenues outside the United States in multiple foreign currencies including euros, Swiss francs, British pounds and in U.S. dollar-denominated transactions conducted with customers who generate revenue in currencies other than the U.S. dollar. The Company also incurs operating expenses in euros, Swiss francs and British pounds. All assets and liabilities of foreign subsidiaries which have a functional currency other than the U.S. dollar are translated at the rate of exchange at period-end, while elements of the income statement are translated at the average exchange rates in effect during the period. The net effect of these translation adjustments is shown as a component of accumulated other comprehensive income. Foreign currency transaction gains and losses are reported in other income, net. |
Revenue Recognition | Revenue Recognition In the United States, the Company generates most of its revenue from independent commissioned sales agents. The Company consigns its orthobiologics products to hospitals and consign or loans its spinal implant sets to independent sales agents. The spinal implant sets typically contain the instruments, disposables, and spinal implants required to complete a surgery. Consigned sets are managed by the sales agent to service hospitals that are high volume users for multiple procedures. The Company ships replacement inventory to independent sales agents to replace the consigned inventory used in surgeries. Loaned sets are returned to the Company’s distribution center, replenished, and made available to sales agents for the next surgical procedure. For each surgical procedure, the sales agent reports use of the product by the hospital and, as soon as practicable thereafter, ensures that the hospital provides a purchase order to the Company. Revenue is recognized upon utilization of product. Additionally, the Company sells product directly to domestic and international stocking resellers, original equipment manufacturer resellers and private label resellers. Upon receipt and acceptance of a purchase order from a stocking reseller, the Company ships product and invoices the reseller. The Company recognizes revenue when the control is transferred upon shipment or upon delivery, based on the contract terms and legal requirements, and the transfer of title and risk of loss occurs. There is generally no customer acceptance or other condition that prevents the Company from recognizing revenue in accordance with the delivery terms for these sales transactions. In the normal course of business, the Company accepts returns of product that have not been implanted. Product returns are not material to the Company’s consolidated statements of operations. The Company accounts for shipping and handling activities as a fulfillment cost rather than a separate performance obligation. The Company’s policy is to record revenue net of any applicable sales, use, or excise taxes. Payment terms are generally net 30 days from invoice date and some customers are offered discounts for early pay. The consideration for goods or services reflects any fixed amount stated per the contract and estimates for any variable consideration, such as returns, discounts or rebates, to the extent that it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. For certain sales transactions, we incur GPO fees that are based on a contractual percentage of applicable sales and are treated as consideration payable to a customer and recorded as a reduction of revenue. Disaggregation of revenue The Company operates in one reportable segment with its net revenue derived primarily from the sale of orthobiologics and spinal implant products across North America. Sales are reported net of returns, discounts and rebates. The following table presents revenues from these product lines for the years ended December 31, 2023 and 2022 (dollars in thousands): Summary of Revenues from Product Lines Year Ended December 31, 2023 Percentage of Total Revenue Year Ended December 31, 2022 Percentage of Total Revenue Orthobiologics $ 58,605 64 % $ 47,143 81 % Spinal implant 32,698 36 % 10,826 19 % Total revenue $ 91,303 100 % $ 57,969 100 % |
Research and Development | Research and Development Research and development costs, which are principally related to internal costs for the development of new products, are expensed as incurred. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding. Shares issued during the period and shares reacquired during the period are weighted for the portion of the period that they were outstanding. Diluted net income (loss) per share is computed in a manner consistent with that of basic earnings per share while giving effect to all potentially dilutive shares of common stock outstanding during the period, which include the assumed exercise of stock options and warrants using the treasury stock method. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying values of financial instruments, including trade accounts receivable, accounts payable, accrued liabilities and long-term debt, approximate their fair values based on terms and related interest rates. The Company follows a framework for measuring fair value. The framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets. Level 2: Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. During the years ended December 31, 2023 and 2022, there was no reclassification in financial assets or liabilities between Level 1, 2 or 3 categories. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In December 2023, the Financial Accounting Standards Board Accounting Standards Update (“ASU”) |
Business Description and Summ_3
Business Description and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Revenues from Product Lines | The Company operates in one reportable segment with its net revenue derived primarily from the sale of orthobiologics and spinal implant products across North America. Sales are reported net of returns, discounts and rebates. The following table presents revenues from these product lines for the years ended December 31, 2023 and 2022 (dollars in thousands): Summary of Revenues from Product Lines Year Ended December 31, 2023 Percentage of Total Revenue Year Ended December 31, 2022 Percentage of Total Revenue Orthobiologics $ 58,605 64 % $ 47,143 81 % Spinal implant 32,698 36 % 10,826 19 % Total revenue $ 91,303 100 % $ 57,969 100 % |
Acquisition of Coflex and CoF_2
Acquisition of Coflex and CoFix Product Lines (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Schedule of Recognized Identified Assets Acquired and Liabilities Assumed Inventories $ 1,589 Equipment 947 Intangible assets 10,940 Net assets acquired 13,476 Goodwill 3,524 Total purchase consideration $ 17,000 |
Acquisition of Surgalign Hold_2
Acquisition of Surgalign Holdings, Inc.’s Hardware and Biologics Business (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Surgalign Holdings [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Business Acquisitions | Schedule of Business Acquisitions Cash $ 1,087 Accounts receivable 1,627 Inventories 15,300 Prepaids and other current assets 825 Equipment 2,067 Right-of-use asset 576 Accounts payable (530 ) Accrued liabilities (1,170 ) Current portion of lease liability (238 ) Lease liability, less current portion (338 ) Net assets acquired 19,206 Bargain purchase gain (11,694 ) Deferred tax liability (1,922 ) Total purchase consideration $ 5,590 |
Acquisition of NanOss Product_2
Acquisition of NanOss Production Operations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Acquisition Pro Forma Information | Schedule of Acquisition Pro Forma Information 2023 2022 Year Ended December 31, 2023 2022 Revenues $ 125,950 $ 139,686 Net income (loss) 9,940 (17,963 ) |
Nan Oss Production Operations [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Business Acquisitions | Schedule of Business Acquisitions Inventories $ 1,150 Fixed assets 267 Intangible assets 220 Net assets acquired 1,637 Goodwill 573 Total purchase consideration $ 2,210 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Credit Loss [Abstract] | |
Schedule of Allowance for Credit Losses | Schedule of Allowance for Credit Losses December 31, 2023 December 31, 2022 Balance at January 1 $ 515 $ 552 Provision for current expected credit losses 497 243 Write-offs against allowance (92 ) (280 ) $ 920 $ 515 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following (in thousands): Schedule of Inventories December 31, 2023 December 31, 2022 Raw materials $ 7,269 $ 5,628 Work in process 1,562 798 Finished goods 28,054 10,859 Total $ 36,885 $ 17,285 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net are as follows (in thousands): Schedule of Property and Equipment, Net December 31, 2023 December 31, 2022 Equipment $ 6,858 $ 5,598 Computer equipment 1,330 1,043 Computer software 230 230 Leasehold improvements 4,347 4,105 Surgical instruments 14,648 11,266 Assets not yet in service 959 1,507 Total cost 28,372 23,749 Less: accumulated depreciation (19,680 ) (17,964 ) Property and equipment, net $ 8,692 $ 5,785 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Change in Carrying Amount of Goodwill | The change in the carrying amount of goodwill during the year ended December 31, 2023 included the following (in thousands): Schedule of Change in Carrying Amount of Goodwill December 31, 2022 $ 3,205 Goodwill acquired during the year 4,097 December 31, 2023 7,302 |
Schedule of Intangible of Assets | The following table sets forth information regarding intangible assets (in thousands): Schedule of Intangible of Assets December 31, 2023: Weighted Average Life Cost Accumulated Amortization Net Patents 11 $ 2,777 $ (672 ) $ 2,105 Customer List 6 8,000 (1,111 ) 6,889 Tradenames 10 1,190 (99 ) 1,091 $ 11,967 $ (1,882 ) $ 10,085 December 31, 2022: Weighted Average Life Cost Accumulated Amortization Net Patents 15 $ 807 $ (463 ) $ 344 |
Schedule of Future Amortization Expense for Intangible Assets | Schedule of Future Amortization Expense for Intangible Assets 2024 $ 1,729 2025 1,727 2026 1,713 2027 1,680 2028 1,679 Thereafter 1,557 Total $ 10,085 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in thousands): Schedule of Accrued Liabilities December 31, 2023 December 31, 2022 Wages/commissions payable $ 8,890 $ 4,464 Other accrued liabilities 1,529 1,032 Accrued liabilities $ 10,419 $ 5,496 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consists of the following (in thousands): Schedule of Long-term Debt December 31, 2023 December 31, 2022 Amounts due under the Term Facility $ 17,000 $ 12,000 Accrued end-of-term payments 456 216 Less: unamortized debt issuance costs (289 ) (196 ) Less: current maturities — (2,333 ) Long-term debt, less issuance costs $ 17,167 $ 9,687 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Stock Options Activity | Stock option activity, including options granted under the 2023 Plan, the 2018 Plan and the prior plan was as follows: Schedule of Share-based Compensation, Stock Options Activity 2023 2022 Shares Weighted Average Price Weighted Average Contract (years) Shares Weighted Average Price Weighted Average Contract (years) Outstanding at January 1 3,360,664 1.51 3,201,666 1.80 Granted 1,602,013 1.16 602,123 0.64 Cancelled or expired (86,849 ) 6.58 (443,125 ) 2.39 Outstanding at December 31 4,875,828 1.31 7.97 3,360,664 1.51 8.19 Exercisable at December 31 2,116,957 1.51 6.93 1,314,560 2.03 7.67 |
Schedule of Assumptions of Stock Option Granted | Schedule of Assumptions of Stock Option Granted Year Ended December 31, 2023 2022 Risk free interest rate 4.3 % 3.5 % Dividend yield 0 % 0 % Expected term 6.2 6.3 Expected volatility 111 % 112 % |
Schedule of Restricted Stock Activity | Under our non-employee director compensation program, non-employee directors may elect to receive restricted stock units, or RSUs, or deferred stock units, or DSUs, in lieu of all or a portion of the annual cash retainers payable to such director. Each RSU or DSU represents the right to receive one share of our common stock. Deferred stock unit and restricted stock unit activity for awards granted under the 2023 Plan and 2018 Plan was as follows: Schedule of Restricted Stock Activity 2023 2022 Shares Weighted Average Fair Value at Grant Date Per Share Shares Weighted Average Fair Value at Grant Date Per Share Outstanding at January 1 3,612,433 0.88 2,970,104 1.39 Granted 1,942,614 1.15 2,461,528 0.55 Vested (1,536,251 ) 0.90 (1,500,394 ) 1.26 Cancelled (494,121 ) 0.54 (318,805 ) 1.32 Outstanding at December 31 3,524,675 1.07 3,612,433 0.88 |
Warrants (Tables)
Warrants (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Warrants | |
Schedule of Warrant Activity | The following table summarizes our warrant activities for the years ended December 31, 2023 and 2022: Schedule of Warrant Activity Common Stock Warrants Weighted Average Exercise Price Outstanding as of January 1, 2022 7,111,112 2.29 Issued 5,076,358 0.48 Outstanding as of December 31, 2022 12,187,470 1.53 Issued — 0.00 Outstanding as of December 31, 2023 12,187,470 1.53 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum payments as of December 31, 2023 under these long-term operating leases are as follows (in thousands): Schedule of Future Minimum Rental Payments for Operating Leases 2024 $ 918 2025 680 2026 119 Total future minimum lease payments 1,717 Less: amount representing interest (128 ) Present value of obligations under operating leases 1,589 Less: current portion (830 ) Long-term operating lease obligations $ 759 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Loss Before (Benefit) Provision for Income Tax | The components of income (loss) before (benefit) provision for income taxes consist of the following (in thousands): Schedule of Components of Income Loss Before (Benefit) Provision for Income Tax 2023 2022 Year Ended December 31, 2023 2022 United States $ (1,099 ) $ (8,416 ) Foreign $ 62 $ — Total $ (1,037 ) $ (8,416 ) |
Schedule of Components of Income Tax (Benefit) Provision | The components of the income tax (benefit) provision are as follows (in thousands): Schedule of Components of Income Tax (Benefit) Provision 2023 2022 Year Ended December 31, 2023 2022 Current: Federal $ — $ — State 93 69 Foreign 111 — Total current 204 69 Deferred: Federal (1,422 ) — State (479 ) — Total deferred (1,901 ) — Total (benefit) provision for income taxes $ (1,697 ) $ 69 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of income tax attributable to operations computed at the U.S. Federal statutory income tax rate of 21 Schedule of Effective Income Tax Rate Reconciliation 2023 2022 Year Ended December 31, 2023 2022 Statutory Federal tax rate $ (218 ) $ (1,767 ) Valuation allowance 501 1,510 State income taxes, net of Federal benefit (764 ) (323 ) Bargain purchase gain (2,456 ) — Permanent differences 403 — Change in state income tax rate 242 (22 ) Stock compensation adjustment and other reconciling items 275 640 Nondeductible executive compensation 320 31 Total (benefit) provision for income taxes $ (1,697 ) $ 69 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax components are as follows (in thousands): Schedule of Deferred Tax Assets and Liabilities 2023 2022 At December 31, 2023 2022 Deferred tax assets: Accrued liability for vacation $ 160 $ 78 Accrued commissions and bonuses / compensation 641 320 Accrued contingencies 29 55 Amortization 358 22 Bad debt reserve 242 139 Capitalized R&D expenses 567 287 Charitable contributions carryforward 15 15 Lease liability 371 385 Interest expense 3,027 2,391 Inventory reserve 1,661 3,059 Net operating loss carryovers 18,626 13,721 Stock option compensation 730 677 UNICAP 44 76 Other 100 55 Total deferred tax assets 26,571 21,280 Deferred tax liabilities: Depreciation (448 ) (62 ) Right of use asset (306 ) (372 ) Prepaids (51 ) (56 ) Total deferred tax liabilities (805 ) (490 ) Valuation allowance (25,787 ) (20,790 ) Net deferred tax liabilities $ (21 ) $ — |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Net Income (Loss) Per Share: | |
Schedule of Basic and Diluted Earnings Per Share | The table below sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): Schedule of Basic and Diluted Earnings Per Share 2023 2022 Year Ended December 31, 2023 2022 Numerator: Net income (loss) $ 660 $ (8,485 ) Denominator: Basic – weighted average shares outstanding 119,093,687 94,085,197 Effect of dilutive securities: Employee restricted stock units 2,447,519 — Warrants 5,252,112 — Diluted – weighted average shares outstanding 126,793,318 94,085,197 Basic earnings per share 0.01 (0.09 ) Diluted earnings per share 0.01 (0.09 ) |
Supplemental Disclosure of Ca_2
Supplemental Disclosure of Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow Information | Supplemental cash flow information is as follows (in thousands): Schedule of Supplemental Cash Flow Information 2023 2022 Year Ended December 31, 2023 2022 Cash paid during the period for: Interest $ 2,552 $ 1,454 Non-cash activities: Fixed assets acquired under finance lease $ — $ 159 Revaluation of lease liability and right of use asset $ — $ 234 Operating lease liabilities arising from obtaining right-of-use assets $ 260 $ — |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Geographic Region | Schedule of Revenues by Geographic Region 2023 2022 Year Ended December 31, 2023 2022 United States $ 85,862 $ 57,162 Rest of World 5,441 807 Total $ 91,303 $ 57,969 |
Summary of Revenues from Produc
Summary of Revenues from Product Lines (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Total revenue | $ 91,303 | $ 57,969 |
Percentage of total revenue | 100% | 100% |
Orthobiologics [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Total revenue | $ 58,605 | $ 47,143 |
Percentage of total revenue | 64% | 81% |
Spinal Implant [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Total revenue | $ 32,698 | $ 10,826 |
Percentage of total revenue | 36% | 19% |
Business Description and Summ_4
Business Description and Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Cash and cash equivalents and restricted cash | $ 5,900 | |
Accumulated deficit | 243,010 | $ 243,670 |
Cash and cash equivalents | $ 5,900 | |
Computers and Equipment [Member] | Minimum [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Property and equipment, estimated useful lives | 3 years | |
Computers and Equipment [Member] | Maximum [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Property and equipment, estimated useful lives | 7 years | |
Surgical Instruments [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Property and equipment, estimated useful lives | 5 years | |
Investor Rights Agreement [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Investor rights agreement, description | In addition, for so long as the Ownership Threshold is met, we must obtain the approval of a majority of our common stock held by Royalty Opportunities and ROS to proceed with the following actions: (i) issue new securities; (ii) incur over $250,000 of debt in a fiscal year; (iii) sell or transfer over $250,000 of our assets or businesses or our subsidiaries in a fiscal year; (iv) acquire over $250,000 of assets or properties in a fiscal year; (v) make capital expenditures over $125,000 individually, or $1.5 million in the aggregate during a fiscal year; (vi) approve our annual budget; (vii) appoint or remove the chairperson of our Board of Directors; and (viii) make, loans to, investments in, or purchase, or permit any subsidiary to purchase, any stock or other securities in another entity in excess of $250,000 in a fiscal year. |
Schedule of Recognized Identifi
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Feb. 28, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | |||
Net assets acquired | $ 11,700 | ||
Goodwill | $ 7,302 | $ 3,205 | |
Surgalign SPV, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Inventories | $ 1,589 | ||
Equipment | 947 | ||
Intangible assets | 10,940 | ||
Net assets acquired | 13,476 | ||
Goodwill | 3,524 | ||
Total purchase consideration | $ 17,000 |
Acquisition of Coflex and CoF_3
Acquisition of Coflex and CoFix Product Lines (Details Narrative) - USD ($) $ in Thousands | Feb. 28, 2023 | Dec. 31, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 7,302 | $ 3,205 | |
Surgalign SPV, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 3,524 | ||
Equity Purchase Agreement [Member] | Surgalign SPV, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Aggregate purchase price in cash | 17,000 | ||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 5,000 |
Schedule of Business Acquisitio
Schedule of Business Acquisitions (Details) - USD ($) $ in Thousands | Oct. 23, 2023 | Aug. 10, 2023 | Dec. 31, 2023 | Dec. 31, 2022 |
Restructuring Cost and Reserve [Line Items] | ||||
Goodwill | $ 7,302 | $ 3,205 | ||
Surgalign Holdings Inc [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cash | $ 1,087 | |||
Accounts receivable | 1,627 | |||
Inventories | 15,300 | |||
Prepaids and other current assets | 825 | |||
Equipment | 2,067 | |||
Right-of-use asset | 576 | |||
Accounts payable | (530) | |||
Accrued liabilities | (1,170) | |||
Current portion of lease liability | (238) | |||
Lease liability, less current portion | (338) | |||
Net assets acquired | 19,206 | |||
Bargain purchase gain | (11,694) | |||
Deferred tax liability | (1,922) | |||
Total purchase consideration | $ 5,590 | |||
Nan Oss Production Operations [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Inventories | $ 1,150 | |||
Net assets acquired | 1,637 | |||
Total purchase consideration | 2,210 | |||
Fixed assets | 267 | |||
Intangible assets | 220 | |||
Goodwill | $ 573 |
Acquisition of Surgalign Hold_3
Acquisition of Surgalign Holdings, Inc.’s Hardware and Biologics Business (Details Narrative) $ in Millions | Dec. 31, 2023 USD ($) |
Acquisition Of Surgalign Holdings Inc.s Hardware And Biologics Business | |
Purchase consideration | $ 11.7 |
Schedule of Acquisition Pro For
Schedule of Acquisition Pro Forma Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Acquisition Of Nanoss Production Operations | ||
Revenues | $ 125,950 | $ 139,686 |
Net income (loss) | $ 9,940 | $ (17,963) |
Acquisition of NanOss Product_3
Acquisition of NanOss Production Operations (Details Narrative) - USD ($) $ in Thousands | Oct. 23, 2023 | Dec. 31, 2023 | Dec. 31, 2022 |
Restructuring Cost and Reserve [Line Items] | |||
Goodwill | $ 7,302 | $ 3,205 | |
Nan Oss Production Operations [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Purchase price for the assets | $ 2,210 | ||
Contingent payments | 200 | ||
Goodwill | $ 573 |
Schedule of Allowance for Credi
Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Credit Loss [Abstract] | ||
Beginning balance | $ 515 | $ 552 |
Provision for expected credit losses | 497 | 243 |
Write-offs against allowance | (92) | (280) |
Ending balance | $ 920 | $ 515 |
Schedule of Inventories (Detail
Schedule of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 7,269 | $ 5,628 |
Work in process | 1,562 | 798 |
Finished goods | 28,054 | 10,859 |
Total | $ 36,885 | $ 17,285 |
Schedule of Property and Equipm
Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 28,372 | $ 23,749 |
Less: accumulated depreciation | (19,680) | (17,964) |
Property and equipment, net | 8,692 | 5,785 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 6,858 | 5,598 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 1,330 | 1,043 |
Computer Softwares [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 230 | 230 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 4,347 | 4,105 |
Surgical Instruments [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 14,648 | 11,266 |
Assets not yet in Service [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 959 | $ 1,507 |
Property and Equipment, Net (De
Property and Equipment, Net (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expenses | $ 1.8 | $ 1.2 |
Schedule of Change in Carrying
Schedule of Change in Carrying Amount of Goodwill (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
December 31, 2022 | $ 3,205 |
Goodwill acquired during the year | 4,097 |
December 31, 2023 | $ 7,302 |
Schedule of Intangible of Asset
Schedule of Intangible of Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 11,967 | |
Accumulated amortization | (1,882) | |
Intangible assets, net | $ 10,085 | |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted avereage life | 11 years | 15 years |
Intangible assets, gross | $ 2,777 | $ 807 |
Accumulated amortization | (672) | (463) |
Intangible assets, net | $ 2,105 | $ 344 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted avereage life | 6 years | |
Intangible assets, gross | $ 8,000 | |
Accumulated amortization | (1,111) | |
Intangible assets, net | $ 6,889 | |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted avereage life | 10 years | |
Intangible assets, gross | $ 1,190 | |
Accumulated amortization | (99) | |
Intangible assets, net | $ 1,091 |
Schedule of Future Amortization
Schedule of Future Amortization Expense for Intangible Assets (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 1,729 |
2025 | 1,727 |
2026 | 1,713 |
2027 | 1,680 |
2028 | 1,679 |
Thereafter | 1,557 |
Total | $ 10,085 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 1.4 | $ 0.1 |
Schedule of Accrued Liabilities
Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Wages/commissions payable | $ 8,890 | $ 4,464 |
Other accrued liabilities | 1,529 | 1,032 |
Accrued liabilities | $ 10,419 | $ 5,496 |
Schedule of Long-term Debt (Det
Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Amounts due under the Term Facility | $ 17,000 | $ 12,000 |
Accrued end-of-term payments | 456 | 216 |
Less: unamortized debt issuance costs | (289) | (196) |
Less: current maturities | 2,333 | |
Long-term debt, less issuance costs | $ 17,167 | $ 9,687 |
Debt (Details Narrative)
Debt (Details Narrative) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Mar. 07, 2024 | Mar. 06, 2024 | Feb. 28, 2023 | May 31, 2023 | Dec. 31, 2023 | Mar. 07, 2022 | May 06, 2021 | |
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 5 | $ 14 | |||||
Principal amount borrowed percentage | 4% | ||||||
Line of credit facility, maturity date | May 01, 2026 | ||||||
Subsequent Event [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maturity date | Mar. 01, 2029 | ||||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility outstanding | $ 4.6 | ||||||
Remaining borrowing capacity | $ 3.4 | ||||||
Interest rate | 4.50% | ||||||
Interest rate | 9.96% | ||||||
Revolving Credit Facility [Member] | Interest Rate Floor [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 2.50% | ||||||
Credit Agreements [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0.11% | ||||||
Term Credit Agreements [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 7% | ||||||
Interest rate | 14.88% | ||||||
Term Credit Agreements [Member] | Subsequent Event [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 6.50% | 7% | |||||
Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Revolving credit agreement percentage | 1% | ||||||
Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Revolving credit agreement percentage | 2.50% | ||||||
Term Loan Commitment [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 12 | ||||||
Term Loan Commitment [Member] | Agent and Lenders [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | 5 | ||||||
Term Loan Commitment [Member] | Agent and Lenders [Member] | Subsequent Event [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 10 | ||||||
Revolving Loan Commitment [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 8 | ||||||
Periodic principal payment | $ 0.7 | ||||||
Revolving Loan Commitment [Member] | Subsequent Event [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 17 | $ 8 |
Equity (Details Narrative)
Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Jul. 03, 2023 | Oct. 07, 2022 | Aug. 25, 2022 |
Subsidiary, Sale of Stock [Line Items] | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.47 | ||
Private Placement [Member] | |||
Subsidiary, Sale of Stock [Line Items] | |||
Common stock shares | 20,000,000 | ||
Price per share | $ 0.75 | ||
Gross proceeds | $ 15,000 | ||
Proceeds from private placement | $ 14,000 | ||
Private Placement [Member] | Share-Based Payment Arrangement, Tranche One [Member] | |||
Subsidiary, Sale of Stock [Line Items] | |||
Proceeds from private placement | $ 6,750 | ||
Number of stock sold | 14,100,000 | ||
Warrants to purchase common stock | 3,500,000 | ||
Cash proceeds | $ 6,300 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.48 | ||
Private Placement [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | |||
Subsidiary, Sale of Stock [Line Items] | |||
Proceeds from private placement | $ 3,000 | ||
Number of stock sold | 6,200,000 | ||
Warrants to purchase common stock | 1,600,000 |
Schedule of Share-based Compens
Schedule of Share-based Compensation, Stock Options Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Weighted Average Remaining Contractual Term (Years) Outstanding | 2 years 9 months 18 days | |
Equity Option [Member] | 2018 Equity Incentive Plan [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Shares, Outstanding, Balance | 3,360,664 | 3,201,666 |
Weighted Average Exercise Price Per Share, Outstanding Balance | $ 1.51 | $ 1.80 |
Shares, Granted | 1,602,013 | 602,123 |
Weighted Average Exercise Price Per Share, Granted | $ 1.16 | $ 0.64 |
Shares, Cancelled or expired | (86,849) | (443,125) |
Weighted Average Exercise Price Per Share, Cancelled or expired | $ 6.58 | $ 2.39 |
Shares, Outstanding, Balance | 4,875,828 | 3,360,664 |
Weighted Average Exercise Price Per Share, Outstanding Balance | $ 1.31 | $ 1.51 |
Weighted Average Remaining Contractual Term (Years) Outstanding | 7 years 11 months 19 days | 8 years 2 months 8 days |
Shares, Exercisable, Ending Balance | 2,116,957 | 1,314,560 |
Weighted Average Exercise Price Per Share, Exercisable Ending Balance | $ 1.51 | $ 2.03 |
Weighted Average Remaining Contractual Term (Years) Exercisable | 6 years 11 months 4 days | 7 years 8 months 1 day |
Schedule of Assumptions of Stoc
Schedule of Assumptions of Stock Option Granted (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Risk free interest rate | 4.30% | 3.50% |
Dividend yield | 0% | 0% |
Expected term | 6 years 2 months 12 days | 6 years 3 months 18 days |
Expected volatility | 111% | 112% |
Schedule of Restricted Stock Ac
Schedule of Restricted Stock Activity (Details) - Restricted Stock Units (RSUs) [Member] - 2018 Equity Incentive Plan [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Shares Outstanding, Beginning Balance | 3,612,433 | 2,970,104 |
Weighted Average Fair Value at Grant Date, Outstanding Beginning Balance | $ 0.88 | $ 1.39 |
Shares Granted | 1,942,614 | 2,461,528 |
Weighted Average Fair Value at Grant Date, Granted | $ 1.15 | $ 0.55 |
Shares Vested | (1,536,251) | (1,500,394) |
Weighted Average Fair Value at Grant Date, Vested | $ 0.90 | $ 1.26 |
Shares Cancelled | (494,121) | (318,805) |
Weighted Average Fair Value at Grant Date, Cancelled | $ 0.54 | $ 1.32 |
Shares Outstanding, Ending Balance | 3,524,675 | 3,612,433 |
Weighted Average Fair Value at Grant Date, Outstanding Ending Balance | $ 1.07 | $ 0.88 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jul. 26, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share based compensation | $ 2,739 | $ 2,464 | ||
Options exercisable | $ 100 | |||
Share-Based Payment Arrangement, Option [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Weighted average grant date fair value of options granted | $ 0.99 | $ 0.55 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Unvested employee stock options not yet recognized | $ 3,000 | |||
Stock option vested weighted average period | 2 years 1 month 6 days | |||
Equity Option [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Unvested employee stock options not yet recognized | $ 2,400 | |||
Stock option vested weighted average period | 2 years 7 months 6 days | |||
Employees and Directors [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share based compensation | $ 2,700 | $ 2,500 | ||
2023 Equity Incentive Plan [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share based compensation, description | The maximum number of shares of our common stock available for issuance under the 2023 Plan, subject to adjustment pursuant to the terms of the 2023 Plan, is (i) 5,500,000 shares of common stock; (ii) 7,695,812 shares of common stock remaining available for issuance under the 2018 Plan but not subject to outstanding awards under the 2018 Plan as of July 26, 2023; and (iii) up to 6,686,090 shares of common stock subject to awards outstanding under the 2018 Plan as of July 26, 2023 but only to the extent such awards are subsequently forfeited, cancelled, expire, or otherwise terminate without the issuance of such shares of common stock after such date | |||
Number of shares available for grant | 5,500,000 | 9,968,106 | ||
2018 Equity Incentive Plan [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Number of shares available for grant | 7,695,812 | |||
Share based compensation, award outstanding | 6,686,090 | |||
2018 Equity Incentive Plan [Member] | Equity Option [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share based compensation, award outstanding | 4,875,828 | 3,360,664 | 3,201,666 | |
Weighted average grant date fair value of options granted | $ 1.16 | $ 0.64 |
Schedule of Warrant Activity (D
Schedule of Warrant Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Warrants | ||
Common Stock Warrants Outstanding, Ending Balance | 12,187,470 | 7,111,112 |
Weighted Average Exercise Price Outstanding Ending Balance | $ 1.53 | $ 2.29 |
Common Stock Warrants, Issued | 5,076,358 | |
Weighted Average Exercise Price, Issued | $ 0 | $ 0.48 |
Common Stock Warrants Outstanding, Ending Balance | 12,187,470 | 12,187,470 |
Weighted Average Exercise Price Outstanding Ending Balance | $ 1.53 | $ 1.53 |
Warrants (Details Narrative)
Warrants (Details Narrative) shares in Millions | 12 Months Ended | |
Dec. 31, 2023 | Aug. 25, 2022 $ / shares shares | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants issued to purchase common stock | shares | 3.5 | |
Class of warrant or right, exercise price of warrants or rights | $ / shares | $ 0.47 | |
Weighted average remaining contractual term of outstanding warrants | 2 years 9 months 18 days | |
Measurement Input, Expected Term [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants contractual term | 5 years | |
Measurement Input, Price Volatility [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants and rights outstanding, measurement input | 107 |
Schedule of Future Minimum Rent
Schedule of Future Minimum Rental Payments for Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
2024 | $ 918 | |
2025 | 680 | |
2026 | 119 | |
Total future minimum lease payments | 1,717 | |
Less: amount representing interest | (128) | |
Present value of obligations under operating leases | 1,589 | |
Less: current portion | (830) | $ (458) |
Long-term operating lease obligations | $ 759 | $ 972 |
Commitments and Contingencies_2
Commitments and Contingencies (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | ||
Operating lease weighted-average remaining lease term | 2 years | |
Lease expense related to operating leases | $ 0.7 | $ 0.6 |
Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Operating lease weighted-average discount rate | 5.64% | |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Operating lease weighted-average discount rate | 12.46% |
Schedule of Components of Incom
Schedule of Components of Income Loss Before (Benefit) Provision for Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Total | $ (1,037) | $ (8,416) |
UNITED STATES | ||
Total | (1,099) | (8,416) |
Non-US [Member] | ||
Total | $ 62 |
Schedule of Components of Inc_2
Schedule of Components of Income Tax (Benefit) Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Federal | ||
State | 93 | 69 |
Foreign | 111 | |
Total current | 204 | 69 |
Federal | (1,422) | |
State | (479) | |
Total deferred | (1,901) | |
Total (benefit) provision for income taxes | $ (1,697) | $ 69 |
Schedule of Effective Income Ta
Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Statutory Federal tax rate | $ (218) | $ (1,767) |
Valuation allowance | 501 | 1,510 |
State income taxes, net of Federal benefit | (764) | (323) |
Bargain purchase gain | (2,456) | |
Permanent differences | 403 | |
Change in state income tax rate | 242 | (22) |
Stock compensation adjustment and other reconciling items | 275 | 640 |
Nondeductible executive compensation | 320 | 31 |
Total (benefit) provision for income taxes | $ (1,697) | $ 69 |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Accrued liability for vacation | $ 160 | $ 78 |
Accrued commissions and bonuses / compensation | 641 | 320 |
Accrued contingencies | 29 | 55 |
Amortization | 358 | 22 |
Bad debt reserve | 242 | 139 |
Capitalized R&D expenses | 567 | 287 |
Charitable contributions carryforward | 15 | 15 |
Lease liability | 371 | 385 |
Interest expense | 3,027 | 2,391 |
Inventory reserve | 1,661 | 3,059 |
Net operating loss carryovers | 18,626 | 13,721 |
Stock option compensation | 730 | 677 |
UNICAP | 44 | 76 |
Other | 100 | 55 |
Total deferred tax assets | 26,571 | 21,280 |
Depreciation | (448) | (62) |
Right of use asset | (306) | (372) |
Prepaids | (51) | (56) |
Total deferred tax liabilities | (805) | (490) |
Valuation allowance | (25,787) | (20,790) |
Net deferred tax liabilities | $ (21) |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Federal statutory income tax rate | 21% | 21% |
Valuation allowance deferred tax asset change in amount | $ 5 | $ 1.5 |
Federal, operating loss carryforwards | 54.3 | 54.3 |
State, operating loss carryforwards | $ 57.4 | 57.4 |
Operating loss carryforwards expiration period | Federal net operating losses generated prior to 2018 and State net operating loss carryovers expire at various dates between 2024 and 2043 | |
Indefinite carryforward available to offset taxable income percentage | 80% | |
Maximum [Member] | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||
Foreign, Operating loss carryforwards | $ 16.1 | $ 16.1 |
Schedule of Basic and Diluted E
Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Net Income (Loss) Per Share: | ||
Net income (loss) | $ 660 | $ (8,485) |
Basic – weighted average shares outstanding | 119,093,687 | 94,085,197 |
Employee restricted stock units | 2,447,519,000 | |
Warrants | 5,252,112,000 | |
Diluted – weighted average shares outstanding | 126,793,318 | 94,085,197 |
Basic earnings per share | $ 0.01 | $ (0.09) |
Diluted earnings per share | $ 0.01 | $ (0.09) |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details Narrative) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Net Income (Loss) Per Share: | ||
Total number of stock options, RSU and warrants excluded for diluted earnings per share | 9,363,668 | 19,160,567 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Retirement Benefits [Abstract] | ||
Discretionary match | 100% | |
Contribution limit, description | wage deferrals not in excess of 4% of their wages | |
Employer contributed amount | $ 0.5 | $ 0.4 |
Schedule of Supplemental Cash F
Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest | $ 2,552 | $ 1,454 |
Fixed assets acquired under finance lease | 159 | |
Revaluation of lease liability and right of use asset | 234 | |
Operating lease liabilities arising from obtaining right-of-use assets | $ 260 |
Schedule of Revenues by Geograp
Schedule of Revenues by Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 91,303 | $ 57,969 |
UNITED STATES | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | 85,862 | 57,162 |
Rest of World [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 5,441 | $ 807 |
Segment and Geographic Inform_3
Segment and Geographic Information (Details Narrative) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Customer Concentration Risk [Member] | Revenue from Contract with Customer Benchmark [Member] | UNITED STATES | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 94% | 99% |
Immaterial Correction to Prio_2
Immaterial Correction to Prior Period Financial Statements (Details Narrative) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Accounting Changes and Error Corrections [Abstract] | |
Decrease to revenue and sales and marketing expense | $ 1 |