Alphatec (US:ATEC)2025-05-01 20:57Revenue and Sales - Revenue from products and services increased by $30.7 million, or 22%, to $169.2 million for the three months ended March 31, 2025, compared to $138.5 million in the same period in 2024[126]. Costs and Expenses - Cost of sales rose by $12.1 million, or 29%, to $53.2 million for the three months ended March 31, 2025, primarily due to increased product volume and stock-based compensation[128]. - Total operating expenses increased by $19.6 million, or 14%, to $160.3 million for the three months ended March 31, 2025, compared to $140.7 million in the same period in 2024[129]. - Research and development expenses decreased by $1.4 million, or 8%, to $16.6 million for the three months ended March 31, 2025, primarily due to a decrease in stock-based compensation[129]. - Litigation-related expenses surged by $7.8 million, or 176%, to $12.2 million for the three months ended March 31, 2025, mainly due to a litigation settlement[131]. Interest and Debt - Interest expense increased by $2.5 million, or 47%, to $7.8 million for the three months ended March 31, 2025, attributed to additional borrowing on the Braidwell Term Loan[135]. - Loss on debt extinguishment increased by $17.6 million, or 100%, during the three months ended March 31, 2025, related to the redemption of 80% of the 2026 Notes[136]. - Gain on derivative liability increased by $17.4 million, or 100%, during the three months ended March 31, 2025, due to changes in the valuation of the derivative liability associated with the 2030 Notes[137]. Other Income and Tax - Other income increased by $0.2 million, or 186%, to $0.3 million for the three months ended March 31, 2025, primarily due to fluctuations in foreign currency rates[138]. - The income tax benefit for the three months ended March 31, 2025, was $64, a slight decrease from $69 in the same period in 2024, related to the recognition of tax benefits in several jurisdictions[139]. Cash Flow and Liquidity - Cash and cash equivalents increased to $153.2 million as of March 31, 2025, from $138.8 million at December 31, 2024, indicating improved liquidity[144]. - Operating activities used cash of $5.0 million for the three months ended March 31, 2025, primarily due to inventory purchases to support business growth[146]. - Investing activities used cash of $11.6 million for the same period, mainly for the purchase of surgical instruments[147]. - Financing activities provided cash of $30.8 million, primarily from proceeds of the 2030 Notes, offset by the repurchase of 80% of the 2026 Notes[148]. Debt Obligations - As of March 31, 2025, the company had $200.0 million outstanding under the Braidwell Term Loan, maturing on January 6, 2028, with an interest rate of Term SOFR plus 5.75%[149]. - The company had $405.0 million outstanding under the 2030 Notes, accruing interest at 0.75%, with a maturity date of March 2030[152]. - The remaining minimum purchase commitment under an inventory purchase agreement was $8.0 million as of March 31, 2025[154]. Future Outlook - The company anticipates future capital requirements will depend on revenue growth rates and the timing of new product introductions[144]. - The company is exposed to foreign currency exchange risk as its international business expands[142]. - The company has no material financial exposure to any single customer or country outside the U.S. that would significantly hinder liquidity[143].