0001493152-24-012145 | 10-K | XBRL Viewer | Xtant Medical Holdings INC

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


Inventories	$	1,589
Equipment		947
Intangible assets		10,940
Net assets acquired		13,476

Goodwill		3,524

Total purchase consideration	$	17,000

Warrants

12 Months Ended

Dec. 31, 2023

Warrants

Warrants

(13) Warrants

As noted in Note 11, “Equity,” on August 25, 2022, the Company issued warrants to purchase approximately 3.5 million shares of common stock. The Warrants meet all the requirements to be classified as equity awards in accordance with ASC 815-40. The number of shares of Company common stock issuable upon exercise of the Warrants is subject to standard and customary anti-dilution provisions for stock splits, stock dividends, or similar transactions. In addition, the Warrants include a buy-out right whereby the holders of such warrants may put the warrants back to the Company or its successor in the event of a purchase, tender or exchange offer accepted by 50% or more of the Company’s holders of common stock and not approved by the Company’s board of directors. The buy-out amount is equal to the Black-Scholes value of the warrants on the date the triggering transaction is consummated based on certain inputs as defined in the Warrant agreement. The consideration to be paid if the buy-out provision is triggered shall be in the same type or form of consideration that is being offered and paid to the holders of Company common stock in connection with the triggering transaction.

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 per warrant, issued in connection with the Private Placement was determined using a Black Scholes model. Significant assumptions in the model included contractual term (5 years) and the estimated volatility factor of the Company’s stock (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 years.

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

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% of their wage deferrals not in excess of 4% of their wages. The Company contributed $0.5 million and $0.4 million as part of the employer match program for the years ended December 31, 2023 and 2022, respectively.

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% of their wage deferrals not in excess of 4% of their wages. The Company contributed $0.5 million and $0.4 million as part of the employer match program for the years ended December 31, 2023 and 2022, respectively.

Debt (Details Narrative) - USD ($) $ in Millions				1 Months Ended	12 Months Ended
Debt (Details Narrative) - USD ($) $ in Millions	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			$ 5.0			$ 14.0
Principal amount borrowed percentage						4.00%
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					7.00%
Interest rate					14.88%
Term Credit Agreements [Member] \| Subsequent Event [Member]
Debt Instrument [Line Items]
Interest rate	6.50%	7.00%
Minimum [Member]
Debt Instrument [Line Items]
Revolving credit agreement percentage			1.00%
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							$ 12.0
Term Loan Commitment [Member] \| Agent and Lenders [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity							5.0
Term Loan Commitment [Member] \| Agent and Lenders [Member] \| Subsequent Event [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 10.0
Revolving Loan Commitment [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity							$ 8.0
Periodic principal payment				$ 0.7
Revolving Loan Commitment [Member] \| Subsequent Event [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 17.0	$ 8.0

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 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

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

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

- Definition

The carrying value as of the balance sheet date of the noncurrent portion of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

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):

	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 Information (Details Narrative)	12 Months Ended
Segment and Geographic Information (Details Narrative)	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	94.00%	99.00%

Employee Benefit Plans (Details Narrative) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Retirement Benefits [Abstract]
Discretionary match	100.00%
Contribution limit, description	wage deferrals not in excess of 4% of their wages
Employer contributed amount	$ 0.5	$ 0.4

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

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):

	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):

	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% to income tax expense is as follows (in thousands):

	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):

	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 million in 2023 and by $1.5 million in 2022.

At December 31, 2023 and 2022, the Company had total domestic Federal, state and foreign net operating loss carryovers of approximately $54.3 million, $57.4 million and $16.1 million, respectively. Federal net operating losses generated prior to 2018 and State net operating loss carryovers expire at various dates between 2024 and 2043. Federal net operating losses generated after 2017 have an indefinite carryforward and are only available to offset 80% taxable income beginning in 2021. Foreign net operating losses begin expiring in 2026.

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.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

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.

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

Income Taxes (Details Narrative) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details Narrative) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Federal statutory income tax rate	21.00%	21.00%
Valuation allowance deferred tax asset change in amount	$ 5.0	$ 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	80.00%
Maximum [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Foreign, Operating loss carryforwards	$ 16.1	$ 16.1

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 million and $1.2 million, respectively.

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):

	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):

	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% to income tax expense is as follows (in thousands):

	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):

	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	)	$	—

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

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 million, and an accumulated deficit of $243.0 million and has incurred significant losses from operations in the current and prior periods.

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 million of cash and cash equivalents as of December 31, 2023, together with amounts available under our line of credit, will be sufficient to meet our anticipated cash requirements through at least March 2025.

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 to seven years for computers and equipment and five years for surgical instruments. Leasehold improvements are depreciated over the shorter of their estimated useful life or the remaining term of the lease. Repairs and maintenance are expensed as incurred.

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 issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures to enhance the transparency of income tax disclosures. The guidance in ASU No. 2023-09 allows for a prospective method of transition, with the option to apply the standard retrospectively. The standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company does not intend to early adopt the standard and is in the process of assessing the impact on its consolidated financial statements and related disclosures.

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

	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	%

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

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 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

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):

	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	)

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

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

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:

	2023							2022
	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contract Term (years)		Shares			Weighted Average Exercise Price		Weighted Average Remaining Contract Term (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

	Year Ended December 31,
	2023			2022
Risk free interest rate		4.3	%		3.5	%
Dividend yield		0	%		0	%
Expected term		6.2 years			6.3 years
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

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):

	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	$	—

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

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

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

All intercompany balances and transactions have been eliminated in consolidation.

Investor Rights Agreement

Use of Estimates

Cash, Cash Equivalents, and Restricted Cash

Trade Accounts Receivable

Inventories

Property and Equipment

Intangible 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

Goodwill

Foreign Currency

Revenue Recognition

Disaggregation of revenue

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

Fair Value of Financial Instruments

Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Recently Issued Accounting Pronouncements

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 shares of common stock to accredited investors in a private placement at a per share purchase price of $0.75 at a closing held on July 6, 2023. The gross proceeds to the Company from the private placement were $15.0 million, before deducting estimated offering fees and expenses payable by us. We expect to use the $14.0 million net proceeds from the private placement for working capital and other general corporate purposes.

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 million shares of common stock of the Company and warrants to purchase approximately 3.5 million shares of common stock for an aggregate purchase price of approximately $6.75 million. We received net cash proceeds of approximately $6.3 million, after deducting fees and other offering expenses, from the First Closing.

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 million shares of common stock of the Company and warrants to purchase approximately 1.6 million shares of common stock for an aggregate purchase price of approximately $3.0 million.

The warrants, described in more detail in Note 13, “Warrants,” have an exercise price of $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.

- Definition

The entire disclosure for equity.

+ References

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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (b)
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
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-Section 50
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-Subparagraph (d)
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-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

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, requires that any excess of purchase price over the fair value of assets acquired, including identifiable intangibles and liabilities assumed, be recognized as goodwill and any excess of fair value of acquired net assets, including identifiable intangible assets over the acquisition consideration, results in a gain from bargain purchase. Prior to recording a gain, the acquiring entity must reassess whether all assets acquired and assumed liabilities have been identified and recognized and perform re-measurements to verify that the consideration paid, assets acquired and liabilities assumed have been properly valued. The Transaction resulted in a gain on bargain purchase due to the estimated fair value of the identifiable net assets acquired exceeding the purchase consideration transferred by $11.7 million and is shown as a gain on bargain purchase on our consolidated statement of operations. Upon completion of our assessment, the Company concluded that recording a gain on bargain purchase was appropriate and required under ASC 805. The bargain purchase was primarily attributable to the Transaction occurring as part of bankruptcy proceedings.

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.

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

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

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 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 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


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

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Pay vs Performance Disclosure - USD ($) $ in Thousands	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure [Table]
Net Income (Loss) Attributable to Parent	$ 660	$ (8,485)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

Acquisition of NanOss Production Operations (Tables)

12 Months Ended

Dec. 31, 2023

Restructuring Cost and Reserve [Line Items]

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


Inventories	$	1,150
Fixed assets		267
Intangible assets		220
Net assets acquired		1,637

Goodwill		573

Total purchase consideration	$	2,210

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

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

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

Receivables (Tables)

12 Months Ended

Dec. 31, 2023

Credit Loss [Abstract]

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

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

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

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. Based on evaluation of the misstatements on an individual and aggregate basis, the Company concluded the prior period misstatements were immaterial to its previously issued consolidated financial statements. As such, the Company has elected to correct the identified misstatement prospectively within the current consolidated financial statements and not to revise prior period 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 million for the year ended December 31, 2022.

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 years. Lease expense related to operating leases was $0.7 million and $0.6 million for the years ended December 31, 2023 and 2022. The Company’s lease agreements do not provide a readily determinable implicit rate nor is it available to the Company from its lessors. Instead, during the year ended December 31, 2023, the Company estimates the weighted-average discount rate for its operating leases to be between 5.64% and 12.46% to discount future cash flows to present value based on the incremental borrowing rate.

Future minimum payments as of December 31, 2023 under these long-term operating leases are as follows (in thousands):


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.

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)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

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):


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 years	$	2,777	$	(672	)	$	2,105
Customer List		6 years		8,000		(1,111	)		6,889
Tradenames		10 years		1,190		(99	)		1,091
			$	11,967	$	(1,882	)	$	10,085

December 31, 2022:

Weighted

Average Life

Cost

Accumulated

Amortization

Net

Patents

15 years

807

(463

)

344

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

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

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+ Details

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 million in cash (the “Purchase Price”). The closing contemplated by the Equity Purchase Agreement occurred on February 28, 2023 (the “Closing”).

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,” for additional information.

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):


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 million in goodwill. For tax purposes, goodwill is deductible.

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 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 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 million in cash on hand plus $0.2 million of contingent payments based on future sales of next generation nanOss products. The Company previously acquired nanOss distribution rights and certain nanOss intellectual property with the acquisition of assets related to the biologics and spinal fixation business of Surgalign Holdings, Inc. in August 2023. The potential benefit associated with the improved economics of internal production of nanOss products resulted in the Company paying a premium for the acquisition resulting in the recognition of $0.6 million of goodwill. For tax purposes, goodwill is deductible.

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):

	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.

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

- Definition

+ References + Details

Warrants (Details Narrative) shares in Millions	12 Months Ended
Warrants (Details Narrative) shares in Millions	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 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

Cover - USD ($) $ in Millions	12 Months Ended
Cover - USD ($) $ in Millions	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

Related Party Transactions

12 Months Ended

Dec. 31, 2023

Related Party Transactions

(19) Related Party Transactions

As described in more detail under Note 1, “Business Description and Summary of Significant Accounting Policies,” we are party to an Investor Rights Agreement and Registration Rights Agreement with Royalty Opportunities and ROS. Transactions between the Company and Royalty Opportunities and ROS are conducted under the provisions of the Investor Rights Agreement and the Registration Rights Agreement, as noted above.

All related party transactions are reviewed and approved by the Audit Committee or the disinterested members of the full Board.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-6

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(g)(3))
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07(2)(e))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483575/946-220-S99-1

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//850/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-6

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
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-Paragraph 1
-Subparagraph (a)
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-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 850
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

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

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

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

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

- Definition

+ References + Details

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	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

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 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

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

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

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479941/924-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

+ Details

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

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	$ 1.0

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):


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 years	$	2,777	$	(672	)	$	2,105
Customer List		6 years		8,000		(1,111	)		6,889
Tradenames		10 years		1,190		(99	)		1,091
			$	11,967	$	(1,882	)	$	10,085

December 31, 2022:

Weighted

Average Life

Cost

Accumulated

Amortization

Net

Patents

15 years

807

(463

)

344

Amortization expense was $1.4 million and $0.1 million for the years ended December 31, 2023 and 2022. The following is a summary of estimated future amortization expense for intangible assets as of December 31, 2023 (in thousands):


2024	$	1,729
2025		1,727
2026		1,713
2027		1,680
2028		1,679
Thereafter		1,557
Total	$	10,085

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)

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)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

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	$ 0.00	$ 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

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	0.00%	0.00%
Expected term	6 years 2 months 12 days	6 years 3 months 18 days
Expected volatility	111.00%	112.00%

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

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(11))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483586/944-220-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
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-Section 50
-Paragraph 30
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

+ Details

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% and 99% of revenue was in the United States for the years ended December 31, 2023 and 2022, respectively. Total revenue by major geographic area is as follows (in thousands):

	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

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Topic 280
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-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-Topic 280
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-Section 50
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

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

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 million (the “Term Loan Commitment”), which was funded to the Borrowers immediately, and an additional $5.0 million tranche available solely at the discretion of MidCap and the lenders, for the purposes agreed to between the Company, the Borrowers and the lenders in advance of the making of loans under such additional tranche. The Revolving Credit Agreement provides for a secured revolving credit facility (the “Revolving Facility,” and, together with the Term Facility, the “Facilities”) under which the Borrowers may borrow up to $8.0 million (such amount, the “Revolving Loan Commitment”) at any one time, the availability of which is determined based on a borrowing base equal to percentages of certain accounts receivable and inventory of the Borrowers in accordance with a formula set forth in the Revolving Credit Agreement. All borrowings under the Revolving Facility are subject to the satisfaction of customary conditions, including the absence of default, the accuracy of representations and warranties in all material respects and the delivery of an updated borrowing base certificate.

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 million and there is not otherwise an event of default under the Credit Agreements, commencing with the next delivery of the compliance certificate required under the Credit Agreements, and (ii) re-set the date certain fees payable in connection with optional prepayments are determined to the date the amendment was executed and consequently extend such fees’ original expiration. In addition, the exit fees were increased by 25 basis points to 4.00% of the principal amount borrowed under the Term Facility.

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 of funding for such acquisition. In addition to the Term Amendment No. 3., we entered into an Amendment No. 3 to Credit, Security and Guarantee Agreement (Revolving Loan) (together with the Term Amendment No. 3, the “Amendments No. 3”), which amends the Revolving Credit Agreement. Additionally, the Amendments No. 3 (i) re-set the date certain fees payable in connection with optional prepayments under the Term Credit Agreement and the Revolving Credit Agreement are determined to the date the amendments were executed and consequently extended such fees’ original expiration and (ii) increased the minimum amount of interest payable under the Term Credit Agreement and the Revolving Credit Agreement from 1% to 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 (the “Maturity Date”). In May 2023, the Company extended its interest only period on the Term Facility until June 2024 when the Company is required to make monthly principal payments of approximately $0.7 million on the Term Facility through the Maturity Date. Each of the Borrowers, and the Company, as guarantor, are jointly and severally liable for all of the obligations under the Facilities on the terms set forth in the Credit Agreements. The Borrowers’ obligations, and the Company’s obligations as a guarantor, under the Credit Agreements are secured by first-priority liens on substantially all of their assets, including, without limitation, all inventory, equipment, accounts, intellectual property and other assets of the Company and the Borrowers.

As of December 31, 2023, the Company had $4.6 million outstanding and $3.4 million of availability under the Revolving Facility.

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%, plus the applicable margin of 7.00% in the case of the Term Credit Agreement, and 4.50% in the case of the Revolving Credit Agreement, subject in each case to a floor of 2.50%. As of December 31, 2023, the effective rate of the Term Facility, inclusive of amortization of debt issuance costs and accretion of the final payment, was 14.88%, and the effective rate of the Revolving Facility was 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. Accordingly, principal amounts outstanding as of December 31, 2023 have been presented as long-term liabilities on our consolidated balance sheet. In addition, an additional $10.0 million tranche, available solely at the discretion of MidCap and the lenders, was added to the Term Credit Agreement and the applicable margin used to determine the per annum interest rate was reduced from 7.00% to 6.50%. The date of certain fees payable in connection with optional prepayments were also reset by the amendment to be determined based on the date the amendment. The Revolving Credit Agreement was also amended and restated on March 7, 2024, to among other things, increase the commitment amount from $8.0 million to $17.0 million. The maturity of the Revolving Credit Agreement was also extended to March 1, 2029. Minimum net product revenue requirements specified in the Credit Agreements were reset and minimum adjusted EBITDA requirements were removed.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Name Accounting Standards Codification
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-Publisher FASB
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Paragraph 1E
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

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

Segment and Geographic Information (Tables)

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

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

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

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

- Definition

+ References + Details

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 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

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):

	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 and 19,160,567 stock options, restricted stock units and warrants were excluded for the diluted earnings per share calculation as they were anti-dilutive.

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

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

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	100.00%	100.00%
Orthobiologics [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Total revenue	$ 58,605	$ 47,143
Percentage of total revenue	64.00%	81.00%
Spinal Implant [Member]
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Total revenue	$ 32,698	$ 10,826
Percentage of total revenue	36.00%	19.00%

- Definition

+ References

+ Details

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 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. 9,968,106 shares remained available for grant under the 2023 Plan as of December 31, 2023. Under the 2023 Plan, shares of our common stock related to awards granted under the plan that terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of the shares become available again for grant under the plan.

Total stock-based compensation expense recognized for employees and directors was $2.7 million and $2.5 million for the years ended December 31, 2023 and 2022, respectively, and was recognized as general and administrative expense.

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:

	2023							2022
	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contract Term (years)		Shares			Weighted Average Exercise Price		Weighted Average Remaining Contract Term (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 million, which is expected to be allocated to expenses over a weighted-average period of 2.6 years. The weighted average grant date fair value of options granted during the years ended December 31, 2023 and 2022 was $0.99 and $0.55, respectively. The aggregated intrinsic value of options exercisable at December 31, 2023 was $0.1 million. The estimated fair value of stock options granted is determined using the Black-Scholes-Merton method applied to individual grants. Key assumptions used to estimate the fair value of stock awards are as follows:

	Year Ended December 31,
	2023			2022
Risk free interest rate		4.3	%		3.5	%
Dividend yield		0	%		0	%
Expected term		6.2 years			6.3 years
Expected volatility		111	%		112	%

Deferred Stock Units and Restricted Stock Units

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 million as of December 31, 2023, which is expected to be allocated to expenses over a weighted-average period of 2.1 years.

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):


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

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