What changed in this filing

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Item 1. Financial Statements

2024-08-06 compared with 2024-05-07 · 122 added, 72 removed, 839 unchanged (19% of the section changed)

25 unchanged sentences

Deferred revenue

Payable to broker

Total current liabilities

9 unchanged sentences

Authorized 500,000,000 shares;

issued and outstanding 112,626,136 and 113,905,565 shares at March 31, 2024 and December 31, 2023, respectively

issued and outstanding 112,928,331 and 113,905,565 shares at June 30, 2024 and December 31, 2023, respectively

Class B common stock;

1 unchanged sentence

Authorized 275,000,000 shares;

issued and outstanding 22,430,097 and 22,430,097 shares at March 31, 2024 and December 31, 2023, respectively

issued and outstanding 22,430,097 and 22,430,097 shares at June 30, 2024 and December 31, 2023, respectively

Additional paid-in capital

7 unchanged sentences

Three Months Ended

Six Months Ended

(In thousands, except per share amounts)

42 unchanged sentences

Balance at March 31, 2024

Stock-based compensation

Grant of contingent restricted stock units

Exercise of stock options

Issuance of Class A common stock under employee and director equity option plans, net

Comprehensive income/(loss)

Repurchase and retirement of common stock

Balance at June 30, 2024

‎ Common Stock

10 unchanged sentences

Balance at March 31, 2023

Stock-based compensation

Grant of contingent restricted stock units

Exercise of stock options

Comprehensive income/(loss)

Balance at June 30, 2023

See accompanying notes to unaudited condensed consolidated financial statements.

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended

Six Months Ended

(In thousands)

75 unchanged sentences

As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2023.

In the opinion of management, these condensed consolidated financial statements include all adjustments necessary, which are of a normal and recurring nature, for the fair presentation of our financial position as of March 31, 2024, and results of operations for the three months ended March 31, 2024.

In the opinion of management, these condensed consolidated financial statements include all adjustments necessary, which are of a normal and recurring nature, for the fair presentation of our financial position as of June 30, 2024, and results of operations for the three and six months ended June 30, 2024.

The results of operations for any interim period may not be indicative of results for the full year.

44 unchanged sentences

Maintenance and support services are generally invoiced annually, at the beginning of each contract period, and revenue is recognized ratably over the maintenance period .

For the three months ended March 31, 2024, there was an immaterial amount of revenue recognized from previously deferred revenue.

The changes to contract liabilities related to deferred revenue are as follows:

Six Months Ended

(In thousands)

Beginning contract liabilities

Revenue recognized from beginning of year contract liabilities

Net advance consideration received during the period

Ending contract liabilities

(f) Cash and Cash Equivalents

2 unchanged sentences

(g) Marketable Securities

Our marketable securities include municipal bonds, corporate debt securities, commercial paper, asset-backed securities, and securities of government, federal agency, and other sovereign obligations and are classified as available-for-sale as of March 31, 2024.

S hort-term and long-term marketable securities are recorded at fair value on our condensed consolidated balance sheets.

47 unchanged sentences

If the related project is not completed in a timely manner, we may have an impairment related to the IPR&D, calculated as the excess of the asset’s carrying value over its fair value.

During the three months ended March 31, 2024, there were no impairments in goodwill, finite-lived intangible assets, or IPR&D.

During the three and six months ended June 30, 2024, there were no impairments in goodwill, finite-lived intangible assets, or IPR&D.

(k) Stock -Based Compensation

7 unchanged sentences

Treasury securities appropriate for the expected terms of the stock options.

The dividend yield assumption is based on the history and expectation of no dividend payouts.

The dividend yield

assumption is based on the history and expectation of no dividend payouts.

The respective fair values of restricted stock units and performance restricted stock units are estimated on the day of grant based on the closing price of the Company’s common stock.

32 unchanged sentences

Investors currently rely on the rate reconciliation table and other disclosures, including total income taxes paid, to evaluate income tax risks and opportunities.

This update is effective for fiscal years beginning after December 15, 2024 and early adoption is permitted.

update is effective for fiscal years beginning after December 15, 2024 and early adoption is permitted.

The amendments should be applied prospectively with retrospective applications also permitted.

25 unchanged sentences

During the first quarter of 2024, the Company completed a share acquisition of a biotech company focused on research and development for hemostasis solutions.

The fair value of the assets acquired are concentrated in a similar identified asset, IPR&D of the acquired technology, thus satisfying the requirements of the screen test in ASU 2017-1.

The fair value of the assets acquired are concentrated in a similar identified asset, IPR&D of the acquired technology, thus satisfying the requirements of the screen test in ASC 805, Business Combinations .

At the date of the acquisitions, the Company determined that the development of the projects underway had not yet reached technological feasibility and that the research in process had no alternative future use.

1 unchanged sentence

The purchase price consisted of $ 12.0 million of cash paid at closing.

The transaction also provides for $ 12.0 million contingent consideration which is payable upon meeting the Good Manufacturing Process milestones and consideration contingent upon the developed products obtaining approval from the U.S.

Food and Drug Administration for $ 10.0 million.

The transaction also provides for $ 12.0 million contingent consideration which is payable upon meeting the Good Manufacturing Process milestones, as promulgated by the U.S.

Food and Drug Administration (the “FDA”), and consideration of $ 10.0 million contingent upon the developed products obtaining approval from the FDA.

Contingent consideration will not be recorded in this asset acquisition until the milestone is met.

Business Combinations

During the second quarter of 2024, the Company completed one acquisition that was not material to the overall condensed consolidated financial statements during the periods presented.

This acquisition has been included in the condensed consolidated financial statements from the date of acquisition.

The purchase price consisted of approximately $ 0.1 million of cash paid at closing and $ 1.9 million in contingent consideration payments, resulting in goodwill of $ 2.0 million based on the estimated fair values.

The contingent payments for this acquisition are based upon achieving various performance milestones over a period of 5 years and are payable in cash.

During the first quarter of 2024, the Company completed one acquisition that was not material to the overall condensed consolidated financial statements during the periods presented.

12 unchanged sentences

The purchase price consisted of approximately $ 0.2 million of cash paid at closing and $ 4.4 million of contingent consideration payments, resulting in goodwill of $ 4.6 million based on the estimated fair values.

contingent payments for this acquisition are based upon achieving various performance milestones over a period of 10 years and are payable in a combination of cash and RSUs.

The contingent payments for this acquisition are based upon achieving various performance milestones over a period of 10 years and are payable in a combination of cash and RSUs.

NuVasive Merger

10 unchanged sentences

Of the $ 42.3 million of total compensation related to the assumed awards, $ 12.9 million was expensed on the acquisition date due to accelerated vesting of the awards, recognized as Merger related costs, and $ 29.4 million relates to future services and will be expensed over the remaining service periods of the unvested awards on a straight-line basis.

Of the $ 29.4 million related to future services, $ 7.5 million of expense was recognized for the year ended March 31, 2024.

Of the $ 29.4 million related to future services, $ 13.6 million of expense has been recognized as of June 30, 2024.

Concurrently with the Merger, the Company repaid the outstanding $ 420.8 million under NuVasive’s revolving senior credit facility in addition to assuming the 0.375 % Senior Convertible Notes due 2025 (“ 2025 Notes”), the privately negotiated call options (“2025 Hedge”) and the privately negotiated warrants (“2025 Warrants”).

18 unchanged sentences

Measurement Period and Other Adjustments

Purchase Price Allocation as of March 31, 2024 (as adjusted)

Purchase Price Allocation as of June 30, 2024 (as adjusted)

Current assets (excluding accounts receivable and inventories)

27 unchanged sentences

The identifiable intangible assets acquired are amortized on a straight-line basis over their estimated useful lives.

The following table summarizes the estimated fair value of NuVasive’s identifiable intangible assets acquired and their remaining amortization period (in years):

The following table summarizes the estimated fair value of NuVasive’s identifiable intangible assets acquired and their amortization period (in years):

Fair Value as of

(In thousands)

March 31, 2024

June 30, 2024

Developed Technology

5 unchanged sentences

Three Months Ended

Six Months Ended

(In thousands)

4 unchanged sentences

The composition of our short-term and long-term marketable securities was as follows:

March 31, 2024

June 30, 2024

(In thousands)

20 unchanged sentences

Total long-term marketable securities

The short-term marketable securities have effective maturity dates of less than one year and the long-term marketable securities have effective maturity dates ranging from one to three years as of March 31, 2024 and December 31, 2023, respectively.

Purchases of marketable securities include amounts payable to brokers of $ 0.2 million as of March 31, 2024.

FAIR VALUE MEASUREMENTS

21 unchanged sentences

The bifurcated conversion option and 2025 Hedge are classified as Level 2 within the fair value hierarchy, based on implied equity volatility.

The estimated fair value of the 2025 Notes, inclusive of the embedded conversion option, at March 31, 2024 was $ 428.6 million.

The estimated fair value of the 2025 Notes, inclusive of the embedded conversion option, at June 30, 2024 was $ 432.6 million.

The fair value was determined based on the quoted price of the 2025 Notes in an active market on the last trading day of the reporting period and has been classified as Level 1 within the fair value hierarchy.

9 unchanged sentences

* The weighted average rates were calculated based on the relative fair value of each business acquisition liability.

The change in the carrying value of the business acquisition liabilities during the three months ended March 31, 2024 and 2023, respectively included the following:

The change in the carrying value of the business acquisition liabilities during the three and six months ended June 30, 2024 and 2023, respectively included the following:

Three Months Ended

Six Months Ended

(In thousands)

16 unchanged sentences

As part of the NuVasive Merger, a step up in the value of inventory of $ 202.6 million was recorded, which was composed of $ 3.0 million for work in process and $ 199.6 million for finished goods.

The amortization of the inventory step up recorded in product cost of sales was $ 53.7 million for the three months ended March 31, 2024, respectively.

As of March 31, 2024, the total remaining balance of inventory step up was $ 77.4 million.

During the three months ended March 31, 2024 and 2023, net adjustments to cost of sales related to excess and obsolete inventory were $ 3.9 million and $ 2.1 million, respectively.

The net adjustments for the three months ended March 31, 2024 and 2023 reflect a combination of additional expense for excess and obsolete related provisions ($ 5.2 million and $ 3.5 million, respectively) offset by sales and disposals ($ 1.3 million and $ 1.4 million, respectively) of inventory for which an excess and obsolete provision was provided previously through expense recognized in prior periods.

The amortization of the inventory step up recorded in product cost of sales was $ 53.7 million and $ 107.3 million for the three and six months ended June 30, 2024, respectively.

As of June 30, 2024, the total remaining balance of inventory step up was $ 23.7 million.

During the three months ended June 30, 2024 and 2023, net adjustments to cost of sales related to excess and obsolete inventory were $ 6.6 million and $ 1.9 million, respectively.

The net adjustments for the three months ended June 30, 2024 and 2023 reflect a combination of additional expense for excess and obsolete related provisions ($ 8.6 million and $ 3.4 million, respectively) offset by sales and disposals ($ 2.0 million and $ 1.5 million, respectively) of inventory for which an excess and obsolete provision was provided previously through expense recognized in prior periods.

During the six months ended June 30, 2024 and 2023, net adjustments to cost of sales related to excess and obsolete inventory were $ 10.5 million and $ 4.0 million, respectively.

The net adjustments for the six months ended June 30, 2024 and 2023 reflect a combination of additional expense for excess and obsolete related provisions ($ 13.8 million and $ 6.9 million, respectively) offset by sales and disposals ($ 3.3 million and $ 2.9 million, respectively) of inventory for which an excess and obsolete provision was provided previously through expense recognized in prior periods.

PROPERTY AND EQUIPMENT

9 unchanged sentences

Three Months Ended

Six Months Ended

(In thousands)

GOODWILL AND INTANGIBLE ASSETS

The change in the carrying amount of goodwill during the twelve months ended December 31, 2023 and the three months ended March 31, 2024, respectively included the following:

The change in the carrying amount of goodwill during the twelve months ended December 31, 2023 and the six months ended June 30, 2024, respectively included the following:

(In thousands)

5 unchanged sentences

Foreign exchange

March 31, 2024

Intangible assets as of March 31, 2024 included the following:

March 31, 2024

June 30, 2024

Intangible assets as of June 30, 2024 included the following:

June 30, 2024

(In thousands)

12 unchanged sentences

Total intangible assets

The following table summarizes amortization of intangible assets for future periods as of March 31, 2024 :

The following table summarizes amortization of intangible assets for future periods as of June 30, 2024 :

(In thousands)

2 unchanged sentences

ACCRUED EXPENSES

Accrued expenses as of March 31, 2024 and December 31, 2023, respectively included the following:

Accrued expenses as of June 30, 2024 and December 31, 2023, respectively included the following:

(In thousands)

3 unchanged sentences

Total accrued expenses

The carrying values of the Company’s 2025 Notes, acquired in the NuVasive merger, as of March 31, 2024, were as follows:

The carrying values of the Company’s 2025 Notes, acquired in the NuVasive merger, as of June 30, 2024, were as follows:

June 30, 2024

(In thousands)

4 unchanged sentences

Debt, net of unamortized fair value adjustments for acquisition accounting

Three Months Ended March 31,

Three Months June 30,

Six Months Ended June 30,

(In thousands)

15 unchanged sentences

The September 2023 Credit Agreement contains financial and other customary covenants, including a funded net indebtedness to adjusted EBITDA ratio.

As of March 31, 2024, we have no t borrowed under the September 2023 Credit Agreement and we were in compliance with all covenants.

As of June 30, 2024, we have no t borrowed under the September 2023 Credit Agreement and we were in compliance with all covenants.

0.375% Senior Convertible Notes due 2025

22 unchanged sentences

The Company recognized, at Merger closing, the embedded conversion feature at fair value of $ 0.7 million and allocated the residual $ 407.8 million of the 2025 Notes fair value to the host debt instrument.

As of the March 31, 2024, the fair value of the embedded conversion feature was $ 1.7 million.

As of the June 30, 2024, the fair value of the embedded conversion feature was $ 0.5 million.

As a result of the Merger and recognizing the fair value of the 2025 Notes, along with the embedded conversion feature, as of the acquisition date, the Company recorded $ 42.2 million debt discount to be accreted as interest expense over the life of the notes.

5 unchanged sentences

The 2025 Hedge does not meet the equity scope exception described in ASC 815-40, Contract in Entity’s Own Equity, and will be presented as asset on the consolidated balance sheet with subsequent measurement at fair value with changes in fair value recognized as “Other income/(expense)”.

As of March 31, 2024, the fair value of the 2025 Hedge is $ 0.7 million recorded within the Other Assets with the consolidated balance sheet.

As of June 30, 2024, the fair value of the 2025 Hedge is $ 0.5 million recorded within the Other Assets with the consolidated balance sheet.

An assumed exercise of the 2025 Hedge by NuVasive is considered anti-dilutive since the effect of the inclusion would always be anti-dilutive with respect to the calculation of diluted earnings per share.

5 unchanged sentences

In accordance with ASC 805, the Company recognized the 2025 Warrants at an acquisition date fair value of $ 0.6 million within additional paid-in capital.

The 2025 Warrants could have a dilutive effect on the Company’s earnings per share to the extent that the price of the Company’s common stock during a given measurement period exceeds the strike price of the 2025 Warrants, which is $ 170.45 per share.

$ 170.45 per share.

The Company uses the treasury share method for assumed exercise of its 2025 Warrants to compute the weighted average common shares outstanding for diluted earnings per share.

4 unchanged sentences

The repurchase program has no time limit and may be suspended for periods or discontinued at any time.

The Company repurchased 1.6 million shares under this program at an average price of $ 52.18 , for a total dollar amount of $ 83.3 million during the three months ended March 31, 2024.

As of March 31, 2024, the Company has remaining authorization to repurchase a total of $ 191.7 million of the Company’s Class A Common.

The Company repurchased 29.6 thousand and 1.6 million shares under this program at an average price of $ 49.67 and $ 52.14 , for a total dollar amount of $ 1.5 million and $ 84.8 million during the three and six months ended June 30, 2024.

As of June 30, 2024, the Company has remaining authorization to repurchase a total of $ 190.3 million of the Company’s Class A Common.

The timing and actual number of shares repurchased will depend on various factors including price, corporate and regulatory requirements, debt covenant requirements, alternative investment opportunities and other market conditions.

1 unchanged sentence

Shares repurchased by the Company are accounted for under the constructive retirement method, in which the shares repurchased are immediately retired, as there is no plan to reissue the shares.

The value of the retired shares includes the 1% excise tax accrual as a result of the Inflation Reduction Act of 2022.

The Company made an accounting policy election to charge the excess of repurchase price over par value entirely to retained earnings.

9 unchanged sentences

Accumulated Other Comprehensive Income (Loss)

The tables below present the changes in each component of accumulated other comprehensive income/(loss), including current period other comprehensive income/(loss) and reclassifications out of accumulated other comprehensive income/(loss) for the three months ended March 31, 2024 and 2023, respectively:

(In thousands)

6 unchanged sentences

Other comprehensive income/(loss), net of tax

Accumulated other comprehensive income/(loss), net of tax, at March 31, 2024

Accumulated other comprehensive income/(loss), net of tax, at June 30, 2024

(In thousands)

6 unchanged sentences

Other comprehensive income/(loss), net of tax

Accumulated other comprehensive income/(loss), net of tax, at March 31, 2023

Accumulated other comprehensive income/(loss), net of tax, at June 30, 2023

Amounts reclassified from accumulated other comprehensive loss, net of tax, related to unrealized gains/losses on marketable securities were released to other income, net in our condensed consolidated statements of operations and comprehensive income.

5 unchanged sentences

The following table sets forth the computation of basic and diluted earnings per share:

Three Months Ended

Six Months Ended

(In thousands, except per share amounts)

20 unchanged sentences

The 2012 Plan,

2021 Plan, NuVasive 2014 Plan, and Ellipse 2015 Plan are administered by the Board of Directors of Globus (the “Board”) or its delegates.

2021 Plan, and Ellipse 2015 Plan are administered by the Board of Directors of Globus (the “Board”) or its delegates.

The number, type of option, exercise price, and vesting terms are determined by the Board or its delegates in accordance with the terms of the 2012 Plan and 2021 Plan.

15 unchanged sentences

Share payout levels range from 0 % to 100 % depending on the respective terms of an award.

As of March 31, 2024, pursuant to the 2021 Plan, the NuVasive 2014 Plan, and the Ellipse 2015 Plan, there were 9,836,808 shares, 2,111,938 shares, and 378,027 shares, respectively, of Class A Common reserved and 3,843,344 shares, 1,712,430 shares, 274,676 shares, respectively of Class A Common available for future grants.

No future issuances will be made from the NuVasive 2014 Plan.

As of June 30, 2024, pursuant to the 2021 Plan, the NuVasive 2014 Plan, and the Ellipse 2015 Plan, there were 9,867,378 shares, 359,217 shares, and 377,489 shares, respectively, of Class A Common reserved and 3,097,512 shares, no shares, and 276,888 shares, respectively of Class A Common available for future grants.

The NuVasive 2014 Plan terminated as to new awards pursuant to its terms in the second quarter of 2024.

Stock Options

Stock option activity during the three months ended March 31, 2024 is summarized as follows:

Stock option activity during the six months ended June 30, 2024 is summarized as follows:

‎ Shares (thousands)

3 unchanged sentences

Outstanding at December 31, 2023

Outstanding at March 31, 2024

Exercisable at March 31, 2024

Expected to vest at March 31, 2024

The total intrinsic value of stock options exercised was $ 2.8 million and $ 5.3 million during the three months ended March 31, 2024, and 2023, respectively.

Outstanding at June 30, 2024

Exercisable at June 30, 2024

Expected to vest at June 30, 2024

The total intrinsic value of stock options exercised was $ 7.1 million and $ 2.8 million during the three months ended June 30, 2024, and 2023, respectively.

The total intrinsic value of stock options exercised was $ 9.9 million and $ 8.1 million during the six months ended June 30, 2024, and 2023, respectively.

The fair value of the options was estimated on the date of the grant using a Black-Scholes option pricing model with the following assumptions:

Three Months Ended

Six Months Ended

Risk-free interest rate

2 unchanged sentences

Expected dividend yield

The weighted average grant date fair value of stock options granted during the three months ended March 31, 2024, and 2023 was $ 20.90 and $ 22.31 per share, respectively.

The weighted average grant date fair value of stock options granted during the three months ended June 30, 2024, and 2023 was $ 21.47 and $ 21.61 per share, respectively.

The weighted average grant date fair value of stock options granted during the six months ended June 30, 2024, and 2023 was $ 21.15 and $ 22.21 per share, respectively.

Restricted Stock Units

Restricted stock unit activity during the three months ended March 31, 2024 is summarized as follows:

Restricted stock unit activity during the six months ended June 30, 2024 is summarized as follows:

Restricted Stock

4 unchanged sentences

Outstanding at December 31, 2023

Outstanding at March 31, 2024

Outstanding at June 30, 2024

Performance-Based Restricted Stock Units

Performance-based restricted stock unit activity during the three months ended March 31, 2024 is summarized as follows:

Performance-based restricted stock unit activity during the six months ended June 30, 2024 is summarized as follows:

Performance-Based Restricted Stock

4 unchanged sentences

Outstanding at December 31, 2023

Outstanding at March 31, 2024

Outstanding at June 30, 2024

Stock-Based Compensation

1 unchanged sentence

Three Months Ended

Six Months Ended

(In thousands)

2 unchanged sentences

Total stock-based compensation cost

As of March 31, 2024, there was $ 106.0 million of unrecognized compensation expense related to unvested employee stock options, RSUs, and PRSUs that vest over a weighted average period of 2.93 years.

As of June 30, 2024, there was $ 109.5 million of unrecognized compensation expense related to unvested employee stock options, RSUs, and PRSUs that vest over a weighted average period of 2.66 years.

In computing our income tax provision, we make certain estimates and judgments, such as estimated annual taxable income or loss, annual effective tax rate, the nature and timing of permanent and temporary differences between taxable income for financial reporting and tax reporting, and the recoverability of deferred tax assets.

1 unchanged sentence

Should facts and circumstances change during a quarter causing a material change to the estimated effective income tax rate, a cumulative adjustment is recorded.

The following table provides a summary of our effective tax rate for the three months ended March 31, 2024 and 2023, respectively:

The following table provides a summary of our effective tax rate for the three and six months ended June 30, 2024 and 2023, respectively:

Three Months Ended

Six Months Ended

Effective income tax rate

RESTRUCTURING AND OTHER COSTS

For the three months ended March 31, 2024, the Company incurred restructuring and other costs primarily related to employee termination benefits as a part of the 2024 Synergy Plan.

For the three months ended June 30, 2024, the Company incurred restructuring and other costs primarily related to employee termination benefits as a part of the 2024 Synergy Plan.

The 2024 Synergy Plan was designed to optimize the organizational structure of Globus by reducing the size of our workforce.

1 unchanged sentence

Totals include stock based compensation expense, classified in accordance with ASC Topic 420, Exit or Disposal Cost Obligations , where applicable.

The following table provides a summary of recognized pre-tax costs for the three months ended March 31, 2024:

The following table provides a summary of recognized pre-tax costs for the three and six months ended June 30, 2024:

Three Months Ended

Six Months Ended

(In thousands)

March 31, 2024

June 30, 2024

Cost of Sales

3 unchanged sentences

Total restructuring and other costs

The following table provides a summary of activity related to the restructuring program for the three months ended March 31, 2024:

The following table provides a summary of activity related to the restructuring program for the three and six months ended June 30, 2024:

Three Months Ended

Six Months Ended

(In thousands)

December 31, 2023

June 30, 2024

Beginning Balance

Cash Payments

Settled non-cash

March 31, 2024

June 30, 2024

The Company leases certain equipment, vehicles, office and storage facilities via various operating and financing lease agreements.

5 unchanged sentences

The Company includes financing lease right-of-use assets in other assets, short-term financing lease liabilities in accrued expenses, and long-term financing lease liabilities in other liabilities on the condensed consolidated balance sheet.

Operating lease expense is recognized, on a straight-line basis over the term of the lease, as a component of operating income on the condensed consolidated statement of operations and comprehensive income.

Operating lease

expense is recognized, on a straight-line basis over the term of the lease, as a component of operating income on the condensed consolidated statement of operations and comprehensive income.

Finance leases amortize the right-of-use assets and amortize the interest on the lease liability over the term of the lease.

11 unchanged sentences

Three Months Ended

Six Months Ended

(In thousands)

5 unchanged sentences

Total lease expense

Future minimum lease payments under non-cancellable leases as of March 31, 2024 are as follows:

Future minimum lease payments under non-cancellable leases as of June 30, 2024 are as follows:

(In thousands)

6 unchanged sentences

The table below summarizes the Company’s supplemental cash flow information and assumptions used:

Three Months Ended

Six Months Ended

(In thousands, except weighted average lease term and discount rate)

32 unchanged sentences

On December 14, 2023, a jury returned a defense verdict in favor of Globus.

As such, we have no t recorded a liability, outside of counsel fees, related to this litigation as of March 31, 2024 .

As such, we have no t recorded a liability, outside of counsel fees, related to this litigation as of June 30, 2024 .

SEGMENT AND GEOGRAPHIC INFORMATION

2 unchanged sentences

We aggregate these operating segments into one reportable segment, based on conclusions reached after considering relevant factors such as economic similarity, customer base, regulatory environment, production processes, nature of services and products provided, and our comprehensive approach to product development and offerings targeting patient needs through procedural-based solutions.

The following table represents total net sales and property and equipment, net by geographic area, based on the location of the customer:

Property and Equipment, Net

The following table represents total net sales, net by geographic area, based on the location of the customer:

Three Months Ended

Six Months Ended

(In thousands)

1 unchanged sentence

International

The following table represents total property and equipment, net by geographic area, based on the location of the customer:

Property and Equipment, Net

(In thousands)

United States

International

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.

What changed 10-Q

Item 1. Financial Statements