50 unchanged sentences
Critical accounting policies are those that, in management’s view, are most important in the portrayal of our financial condition and results of operations.
−Removed: Management believes there have been no material changes during the three months ended March 31, 2024, to the critical accounting policies discussed in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC.
+Added: Management believes there have been no material changes during the three months ended June 30, 2024, to the critical accounting policies discussed in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC.
Results of Operations
Total revenue
−Removed: Three Months Ended March 31,
+Added: Three Months Ended
+Added: Six Months Ended
(in thousands, except %)
Revenue from products and services
−Removed: Revenue from products and services increased $29.4 million, or 27%, during the three months ended March 31, 2024, compared to the same period in 2023.
+Added: Revenue from products and services increased $28.6 million, or 25%, and $58.0 million, or 26%, during the three and six months ended June 30, 2024, respectively, compared to the same period in 2023.
The increase was primarily due to an increase in product volume that was due to the increase in our surgeon user base, continued expansion of our new product portfolio, and increasing adoption of our technology.
Cost of sales
−Removed: Three Months Ended March 31,
+Added: Three Months Ended
+Added: Six Months Ended
(in thousands, except %)
Cost of sales
−Removed: Cost of sales increased $2.4 million, or 6%, for the three months ended March 31, 2024, compared to the same period in 2023.
−Removed: The increase was primarily due to an increase in product volume offset by a decrease in stock-based compensation.
+Added: Cost of sales decreased $9.4 million, or 18%, and $7.0 million, or 8%, for the three and six months ended June 30, 2024, respectively, compared to the same period in 2023.
+Added: The decrease was primarily due to a decrease in stock-based compensation offset by an increase in product volume.
We have entered into Development Service Agreements for the development of a wide variety of potential products and intellectual property.
1 unchanged sentence
Certain of these agreements were amended to remove the cash royalty option and require settlement in restricted shares of our common stock.
−Removed: During the three months ended March 31, 2023, the vesting conditions of certain of these amended awards were deemed probable.
−Removed: There were no such vesting conditions met during the three months ended March 31, 2024 resulting in a decrease in stock-based compensation for the period.
+Added: During the three and six months ended June 30, 2023, the vesting conditions of certain of these amended awards were deemed probable.
+Added: There were no such vesting conditions met during the three and six months ended June 30, 2024 resulting in a decrease in stock-based compensation for the period.
Operating expenses
−Removed: Three Months Ended March 31,
+Added: Three Months Ended
+Added: Six Months Ended
(in thousands, except %)
8 unchanged sentences
Research and development expenses .
−Removed: Research and development expenses increased $4.8 million, or 36%, for the three months ended March 31, 2024, compared to the same period in 2023.
−Removed: The increase was primarily due to an increase in personnel to support the expansion of our new product portfolio and an increase in stock-based compensation associated with Development Service Agreements described above.
+Added: Research and development expenses increased $4.5 million, or 31%, and $9.3 million, or 33%, for the three and six months ended June 30, 2024, respectively, compared to the same period in 2023.
+Added: The increase was primarily due to an increase in personnel to support the expansion of our new product portfolio.
Sales, general and administrative expenses.
−Removed: Sales, general and administrative expenses increased $22.5 million, or 25%, during the three months ended March 31, 2024, compared to the same period in 2023.
+Added: Sales, general and administrative expenses increased $25.4 million, or 29%, and $47.9 million, or 27%, during the three and six months ended June 30, 2024, respectively, compared to the same period in 2023.
The increase was primarily due to higher compensation-related costs and variable selling expenses associated with the increase in revenue, and our continued investment in building our strategic distribution channel.
1 unchanged sentence
Litigation-related expenses.
−Removed: Litigation expenses increased $1.2 million, or 39%, for the three months ended March 31, 2024, compared to the same period in 2023.
−Removed: The increase was primarily related to legal fees associated with ongoing litigation matters.
+Added: Litigation expenses decreased $4.8 million, or 70%, and $3.6 million, or 35%, for the three and six months ended June 30, 2024, respectively, compared to the same period in 2023.
+Added: The decrease was primarily related to settled litigation matters.
Amortization of acquired intangible assets.
+Added: Amortization expense increased $1.1 million, or 17%, during the six months ended June 30, 2024, compared to the same period in 2023.
The increase in amortization of acquired intangible assets is primarily due to amortization of intangible assets acquired in the acquisition of the navigation-enabled robotics platform ("Valence") in April 2023.
Transaction-related expenses.
−Removed: The decrease in transaction-related expenses for the three months ended March 31, 2024, is primarily due to the release of certain accruals for third-party professional service costs associated with the Valence acquisition.
+Added: Transaction-related expense decreased $1.9 million, or 100%, and $2.0 million, or 106%, during the three and six months ended June 30, 2024, respectively, compared to the same period in 2023.
+Added: The decrease in transaction-related expenses is due to the Valence acquisition in April 2023.
Restructuring expenses.
−Removed: The increase in restructuring expenses for the three months ended March 31, 2024 is primarily due to costs associated with the relocation of office facilities in Paris, France.
+Added: The increase in restructuring expenses for the three and six months ended June 30, 2024 is primarily due to costs associated with the relocation of office facilities in Paris, France.
Total interest expense and other expense, net
−Removed: Three Months Ended March 31,
+Added: Three Months Ended
+Added: Six Months Ended
(in thousands, except %)
3 unchanged sentences
Total other expense, net
−Removed: The increase in interest expense, net for the three months ended March 31, 2024, compared to the same period in 2023, was primarily due to higher interest rates related to our Revolving Credit Facility and Braidwell Term Loan.
−Removed: The change in other income, net, compared to the same period in 2023, was primarily due to an employee retention credit received during the three months ended March 31, 2023.
+Added: Interest expense, net, increased $1.9 million, or 49%, and $3.4 million, or 44%, during the three and six months ended June 30, 2024, respectively, compared to the same period in 2023.
+Added: The increase in interest expense, net, was primarily due to drawing an additional $50.0 million on the Braidwell Term Loan in September 2023 and higher interest rates related to our Revolving Credit Facility and Braidwell Term Loan.
+Added: Other income, net, decreased $2.2 million, or 93%, and $2.8 million, or 91%, during the three and six months ended June 30, 2024, respectively, compared to the same period in 2023.
+Added: The change in other income, net, was primarily due to an employee retention credit received during the three months ended June 30, 2023.
Income tax provision
−Removed: Three Months Ended March 31,
+Added: Three Months Ended
+Added: Six Months Ended
(in thousands, except %)
Income tax (benefit) provision
−Removed: The change in the income tax provision for the three months ended March 31, 2024, compared to the same period in 2023, was primarily related to the recognition of income taxes in several jurisdictions.
+Added: The change in the income tax provision for the three and six months ended June 30, 2024, respectively, compared to the same period in 2023, was primarily related to the recognition of income tax benefits in several jurisdictions.
Liquidity and Capital Resources
19 unchanged sentences
We have disclosed all material accruals for pending litigation or investigations in Note 9, Commitments and Contingencies, in the Notes to Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.
−Removed: Cash and cash equivalents were $144.1 million and $221.0 million at March 31, 2024, and December 31, 2023, respectively.
+Added: Cash and cash equivalents were $99.8 million and $221.0 million at June 30, 2024, and December 31, 2023, respectively.
We believe that our existing funds, cash generated from our operations and our existing sources of and access to financing are adequate to satisfy our needs for working capital, capital expenditure and debt service requirements, and other business initiatives we plan to strategically pursue.
Summary of Cash Flows
−Removed: Three Months Ended March 31,
+Added: Six Months Ended June 30,
(in thousands)
4 unchanged sentences
Effect of exchange rate changes on cash
−Removed: Net increase (decrease) in cash and cash equivalents
+Added: Net (decrease) increase in cash and cash equivalents
Operating Activities
−Removed: We used cash of $38.4 million from operating activities for the three months ended March 31, 2024, which is primarily related to inventory purchases to support the commercial launch of new products and the growth of our business, offset by the timing of cash payments and receipts.
+Added: We used cash of $49.8 million from operating activities for the six months ended June 30, 2024, which is primarily related to inventory purchases to support the growth of our business and commercial launch of new products, offset by the timing of cash payments and receipts.
Investing Activities
−Removed: We used cash of $33.6 million in investing activities for the three months ended March 31, 2024, which is primarily related to the purchase of surgical instruments to support the commercial launch of new products and the growth of our business.
+Added: We used cash of $69.5 million in investing activities for the six months ended June 30, 2024, which is primarily related to the purchase of surgical instruments to support the growth of our business and commercial launch of new products.
Financing Activities
−Removed: We used cash of $4.4 million in financing activities for the three months ended March 31, 2024, which is primarily related to cash paid for net tax withholdings associated with common stock exercises.
+Added: We used cash of $1.1 million in financing activities for the six months ended June 30, 2024, which is primarily related to cash paid for net tax withholdings associated with employee stock awards offset by net draws on our revolving line of credit.
Debt and Commitments
−Removed: As of March 31, 2024, we had $150.0 million outstanding under the Braidwell Term Loan.
+Added: As of June 30, 2024, we had $150.0 million outstanding under the Braidwell Term Loan.
The outstanding loans under the Braidwell Term Loan bear interest at the sum of Term SOFR plus 5.75% per annum.
The Braidwell Term Loan matures on January 6, 2028.
−Removed: As of March 31, 2024, we had $50.0 million outstanding under the Revolving Credit Facility.
+Added: As of June 30, 2024, we had $54.9 million outstanding under the Revolving Credit Facility.
The outstanding loans under the Revolving Credit Facility bear interest at the sum of Term SOFR plus 3.5% per annum.
The Revolving Credit Facility matures on the earlier of September 29, 2027, or 90 days prior to the final maturity date of any of our 2026 Notes.
−Removed: As of March 31, 2024, we had $316.3 million outstanding under the 2026 Notes.
+Added: As of June 30, 2024, we had $316.3 million outstanding under the 2026 Notes.
The 2026 Notes accrue interest at a rate of 0.75%, payable semi-annually in arrears on February 1 and August 1 of each year.
1 unchanged sentence
Based on the terms we have the option to pay or deliver cash, shares of our common stock, or a combination thereof, when a conversion notice is received.
−Removed: As of March 31, 2024, we had $4.2 million in other debts that are due in monthly and quarterly installments through maturity in 2027.
+Added: As of June 30, 2024, we had $4.0 million in other debts that are due in monthly and quarterly installments through maturity in 2027.
We have an inventory purchase commitment agreement with a third-party supplier, where we are obligated to meet certain minimum purchase commitment requirements through December 2026.
−Removed: As of March 31, 2024, the remaining minimum purchase commitment under the agreement was $12.5 million.
+Added: As of June 30, 2024, the remaining minimum purchase commitment under the agreement was $9.8 million.
Contractual obligations and commercial commitments
−Removed: As of March 31, 2024, there have been no material changes, outside the normal course of business, in our outstanding contractual obligations from those disclosed within the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
+Added: As of June 30, 2024, there have been no material changes, outside the normal course of business, in our outstanding contractual obligations from those disclosed within the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
Off-Balance Sheet Arrangements
1 unchanged sentence
Recent Accounting Pronouncements
−Removed: Aside from the changes disclosed in Note 1 to the Notes to Condensed Consolidated Financial Statements (Unaudited) under the heading “Recently Issued Accounting Pronouncements,” if any, there have been no new accounting pronouncements or changes to accounting pronouncements during the three months ended March 31, 2024, as compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for the year ended December 31, 2023, that was filed with the SEC.
+Added: Aside from the changes disclosed in Note 1 to the Notes to Condensed Consolidated Financial Statements (Unaudited) under the heading “Recently Issued Accounting Pronouncements,” if any, there have been no new accounting pronouncements or changes to accounting pronouncements during the six months ended June 30, 2024, as compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for the year ended December 31, 2023, that was filed with the SEC.
Forward Looking Statements
31 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.