Forward-Looking Statements May Prove Inaccurate

•the value proposition of our products, services, and procedural solutions;

•our intentions, beliefs and expectations regarding our net sales, expenses, operations and future financial performance;

•our plans for future product developments and enhancements of existing products and solutions;

•anticipated growth and trends in our business;

•third party reimbursement policies and practices;

•the timing of and our ability to maintain and obtain regulatory clearances or approvals;

•our belief that our cash, cash equivalents and investments will be sufficient to satisfy our anticipated obligations;

•the impact of global economic conditions and public health crises and epidemics, such as the COVID-19 pandemic, on our business and industry;

•our expectations regarding our customers and the adoption of our products and procedures;

•our beliefs and expectations regarding our market penetration and expansion efforts;

•our expectations regarding the benefits and integration of recently-acquired businesses and our ability to make future acquisitions and successfully integrate any such future-acquired businesses;

•our anticipated trends, product pricing pressure, competitive tactics and other challenges in the markets in which we operate; and

•our expectations and beliefs regarding and the impact of policy changes, investigations, claims and litigation.

Underlying our procedurally integrated solutions for spine surgery are innovative technologies designed to enable better clinical, financial, and operational outcomes, including:

•our differentiated surgical access instruments, including our integrated split-blade retractor system, designed to enable less-invasive surgical techniques by minimizing soft tissue disruption during spine surgery;

•our Advanced Materials Science portfolio of specialized spinal implants, designed to advance spinal fusion by enhancing the osseointegration and biomechanical properties of implant materials, including porous titanium and porous polyetheretherketone, or PEEK;

•our comprehensive fixation system, designed to facilitate the preservation and restoration of patient alignment, while addressing a vast array of spinal pathologies from an open or less-invasive approach across all spinal procedures;

•our neuromonitoring systems, which use proprietary software-driven nerve detection and avoidance technology, and our IONM services and support; and

Cost of Sales, Excluding Below Amortization of Intangible Assets

During the six months ended June 30, 2022, we recorded a benefit of $(4.6) million related to acquisition, integration and business transition activities, which included $(8.8) million of fair value adjustments on contingent consideration liabilities associated with our 2021, 2017 and 2016 acquisitions.

Interest and Other Expense, Net

(2,180) 19 % Total interest and other expense, net $ (21,863) $ (23,579) $ 1,716

Liquidity, Cash Flows and Capital Resources

Cash Flows from Operating Activities

Cash Flows from Investing Activities

Cash Flows from Financing Activities

See Note 6, Indebtedness, in the Notes to Unaudited Consolidated Financial Statements included in this Quarterly Report for more information about the terms of the 2023 Notes, the 2023 Hedge, the 2023 Warrants, the 2025 Notes, the 2025 Hedge, the 2025 Warrants and the 2020 Credit Agreement.

Critical Accounting Policies and Estimates

As of June 30, 2022, we did not have any off-balance sheet arrangements.

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