cfx-20240329

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM			10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 29, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-34045

Enovis Corporation

(Exact name of registrant as specified in its charter)


Delaware		54-1887631
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

2711 Centerville Road,	Suite 400
Wilmington,	Delaware	19808
(Address of principal executive offices)		(Zip Code)


(302)			252-9160
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	ENOV	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☑ Accelerated filer ☐ Non-accelerated filer ☐

Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

As of April 26, 2024, there were 54,850,906 shares of the registrant’s common stock, par value $.001 per share, outstanding.

TABLE OF CONTENTS


			Page
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements			2
Condensed Consolidated Statements of Operations			2
Condensed Consolidated Statements of Comprehensive Income (Loss)			3
Condensed Consolidated Balance Sheets			4
Condensed Consolidated Statements of Equity			5
Condensed Consolidated Statements of Cash Flows			6
Notes to Condensed Consolidated Financial Statements			7
Note 1. General			7
Note 2. Recently Issued Accounting Pronouncements			7

Note 3. Acquisitions and Investments			7
Note 4. Revenue			10
Note 5. Net Loss Per Share from Continuing Operations			11
Note 6. Income Taxes			11
Note 7. Equity			12
Note 8. Inventories, Net			13
Note 9. Debt			13
Note 10. Accrued Liabilities			15
Note 11. Financial Instruments and Fair Value Measurements			16
Note 12. Commitments and Contingencies			19
Note 13. Segment Information			19

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			21
Item 3. Quantitative and Qualitative Disclosures About Market Risk			35
Item 4. Controls and Procedures			36

PART II - OTHER INFORMATION
Item 1. Legal Proceedings			37
Item 1A. Risk Factors			37
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			37
Item 3. Defaults Upon Senior Securities			38
Item 4. Mine Safety Disclosures			38
Item 5. Other Information			38
Item 6. Exhibits			39

SIGNATURES			39

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

ENOVIS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Dollars in thousands, except per share amounts

(Unaudited)


	Three Months Ended
	March 29, 2024		March 31, 2023
Net sales	$	516,266	$	406,151
Cost of sales	218,370		171,086
Gross profit	297,896		235,065
Selling, general and administrative expense	255,691		207,165
Research and development expense	23,377		18,193
Amortization of acquired intangibles	40,931		32,040

Restructuring and other charges	12,911		2,635
Operating loss	(35,014)		(24,968)

Interest expense, net	19,996		5,652



Other (income) expense, net	24,235		(661)
Loss from continuing operations before income taxes	(79,245)		(29,959)
Income tax benefit	(7,404)		(7,113)
Net loss from continuing operations	(71,841)		(22,846)



Loss from discontinued operations, net of taxes	—		(312)
Net loss	(71,841)		(23,158)
Less: net income attributable to noncontrolling interest from continuing operations - net of taxes	157		192

Net loss attributable to Enovis Corporation	$	(71,998)	$	(23,350)
Net loss per share - basic and diluted
Continuing operations	$	(1.32)	$	(0.42)
Discontinued operations	$	—	$	(0.01)
Consolidated operations	$	(1.32)	$	(0.43)

See Notes to Condensed Consolidated Financial Statements.

ENOVIS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

Dollars in thousands

(Unaudited)


	Three Months Ended
		March 29, 2024		March 31, 2023
Net loss		$	(71,841)	$	(23,158)
Other comprehensive income (loss):
Foreign currency translation		(65,490)		10,584
Unrealized gain (loss) on hedging activities, net of tax expense (benefit) of $7,701 and $0		24,791		—


Amounts reclassified from Accumulated other comprehensive loss:
Amortization of pension net actuarial gain (loss), net of tax expense (benefit) of $(7) and $0		(35)		—


Reclassification of hedging gain (loss), net of tax expense (benefit) of $58 and $0		186		—
Other comprehensive income (loss)		(40,548)		10,584
Comprehensive income (loss)		(112,389)		(12,574)
Less: comprehensive income (loss) attributable to noncontrolling interest		106		216
Comprehensive income (loss) attributable to Enovis Corporation		$	(112,495)	$	(12,790)

See Notes to Condensed Consolidated Financial Statements.

ENOVIS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

Dollars in thousands, except share amounts

(Unaudited)


	March 29, 2024		December 31, 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	66,267	$	36,191

Trade receivables, less allowance for credit losses of $9,752 and $9,731	381,053		291,483
Inventories, net	586,002		468,832
Prepaid expenses	36,033		28,901
Other current assets	81,364		71,112
Total current assets	1,150,719		896,519
Property, plant and equipment, net	345,701		270,798
Goodwill	2,414,611		2,060,893
Intangible assets, net	1,408,310		1,127,363
Lease asset - right of use	70,146		63,506
Other assets	89,194		90,255
Total assets	$	5,478,681	$	4,509,334

LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt	$	20,101	$	—
Accounts payable	155,748		132,475
Accrued liabilities	373,283		237,132
Total current liabilities	549,132		369,607
Long-term debt, less current portion	1,318,463		466,164
Non-current lease liability	51,190		48,684
Other liabilities	249,054		204,178
Total liabilities	2,167,839		1,088,633
Equity:
Common stock, $0.001 par value; 133,333,333 shares authorized; 54,840,581 and 54,597,142 shares issued and outstanding as of March 29, 2024 and December 31, 2023, respectively	55		55
Additional paid-in capital	2,903,277		2,900,747
Retained earnings	470,473		542,471
Accumulated other comprehensive loss	(65,378)		(24,881)
Total Enovis Corporation equity	3,308,427		3,418,392
Noncontrolling interest	2,415		2,309
Total equity	3,310,842		3,420,701
Total liabilities and equity	$	5,478,681	$	4,509,334

See Notes to Condensed Consolidated Financial Statements.

ENOVIS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

Dollars in thousands, except share amounts

(Unaudited)


	Common Stock			Additional Paid-In Capital	Retained Earnings		Accumulated Other Comprehensive Loss		Noncontrolling Interest		Total
	Shares	Amount
Balance at December 31, 2023	54,597,142	$	55		$	2,900,747	$	542,471	$	(24,881)	$	2,309	$	3,420,701
Net income (loss)	—	—			—		(71,998)		—		157		(71,841)

Other comprehensive loss, net of tax of $7,752	—	—			—		—		(40,497)		(51)		(40,548)


Common stock-based award activity	243,439	—			2,530		—		—		—		2,530
Balance at March 29, 2024	54,840,581	$	55		$	2,903,277	$	470,473	$	(65,378)	$	2,415	$	3,310,842


	Common Stock			Additional Paid-In Capital	Retained Earnings		Accumulated Other Comprehensive Loss		Noncontrolling Interest		Total
	Shares	Amount
Balance at December 31, 2022	54,228,619	$	54		$	2,925,729	$	575,732	$	(53,430)	$	1,716	$	3,449,801
Net income (loss)	—	—			—		(23,350)		—		192		(23,158)

Other comprehensive income, net of tax of $—	—	—			—		—		10,560		24		10,584


Common stock-based award activity	264,535	—			8,044		—		—		—		8,044
Balance at March 31, 2023	54,493,154	$	54		$	2,933,773	$	552,382	$	(42,870)	$	1,932	$	3,445,271

See Notes to Condensed Consolidated Financial Statements.

ENOVIS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Dollars in thousands

(Unaudited)


	Three Months Ended
	March 29, 2024		March 31, 2023
Cash flows from operating activities:
Net loss	$	(71,841)	$	(23,158)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation, amortization and other impairment charges	73,404		51,991
Stock-based compensation expense	6,431		7,606
Non-cash interest expense	1,245		838
Fair value loss on contingent acquisition shares	13,443		—
Loss on currency hedges	11,123		—


Deferred income tax expense (benefit)	(9,966)		831
Loss on sale of property, plant and equipment	265		429
Changes in operating assets and liabilities:
Trade receivables, net	(12,009)		(12,288)
Inventories, net	(11,051)		(9,249)
Accounts payable	(11,752)		15,621
Other operating assets and liabilities	(25,448)		(25,164)
Net cash provided by (used in) operating activities	(36,156)		7,457
Cash flows from investing activities:
Purchases of property, plant and equipment and intangibles	(36,928)		(30,443)

Payments for acquisitions, net of cash received, and investments	(760,914)		(3,942)



Net cash used in investing activities	(797,842)		(34,385)
Cash flows from financing activities:
Proceeds from borrowings on term credit facility	400,000		—
Repayments of borrowings under term credit facility	(5,000)		(219,468)
Proceeds from borrowings on revolving credit facilities and other	480,000		250,000
Repayments of borrowings on revolving credit facilities and other	(1,956)		(5,672)


Payment of debt issuance costs	(703)		—


Proceeds from issuance of common stock, net	871		438



Deferred consideration payments and other	(8,672)		(800)
Net cash provided by financing activities	864,540		24,498
Effect of foreign exchange rates on Cash and cash equivalents	(828)		35
Increase (decrease) in Cash, cash equivalents and restricted cash	29,714		(2,395)
Cash, cash equivalents and restricted cash, beginning of period	44,832		24,295
Cash, cash equivalents and restricted cash, end of period	$	74,546	$	21,900

Supplemental disclosures:
Fair value of contingent acquisition shares	$	107,877	$	—

See Notes to Condensed Consolidated Financial Statements.

ENOVIS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. General

Enovis Corporation (the “Company” or “Enovis”) is an innovation-driven medical technology growth company dedicated to developing clinically differentiated solutions that generate measurably better patient outcomes and transform workflows. The Company conducts its business through two operating segments, Prevention & Recovery (“P&R”) and Reconstructive (“Recon”). The P&R segment provides orthopedic and recovery science solutions, including devices, software, and services across the patient care continuum from injury prevention to rehabilitation after surgery, injury, or from degenerative disease. The Reconstructive segment provides surgical implant solutions, offering a comprehensive suite of reconstructive joint products for the hip, knee, shoulder, elbow, foot, ankle, and finger and surgical productivity tools.

The Condensed Consolidated Financial Statements included in this quarterly report have been prepared by the Company in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and reflect, in the opinion of management, all adjustments, which consist solely of normal recurring adjustments, necessary to present fairly the Company’s financial position and results of operations as of and for the periods indicated. The Condensed Consolidated Balance Sheet as of December 31, 2023 is derived from the Company’s audited financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted in accordance with the SEC’s rules and regulations for interim financial statements. The Condensed Consolidated Financial Statements included herein should be read in conjunction with the audited financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”), filed with the SEC on February 22, 2024.

The Company makes certain estimates and assumptions in preparing its Condensed Consolidated Financial Statements in accordance with GAAP. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities as of the date of the Condensed Consolidated Financial Statements, and the reported amounts of revenues and expenses for the periods presented. Actual results may differ from those estimates.

2. Recently Issued Accounting Pronouncements

The Company has not adopted any new accounting standards during the three months ended March 29, 2024. There are no recently issued accounting pronouncements that are expected to have a material effect on the Company’s financial position, results of operations or cash flows.

3. Acquisitions and Investments

Lima Acquisition in 2024

On January 3, 2024, the Company acquired LimaCorporate S.p.A. (“Lima”), a privately held global orthopedic company, at an enterprise value of €800 million (the “Lima Acquisition”), consisting of (i) approximately €700 million in cash consideration, which includes the repayment at closing of certain indebtedness of Lima and (ii) 1,942,686 shares of common stock of Enovis, par value $0.001 per share (the “Contingent Acquisition Shares”), which is based upon a €100 million value divided by the thirty-day volume weighted average price of Enovis common stock as of the close of business on September 21, 2023. The Contingent Acquisition Shares are expected to be issued within one year of the acquisition in two equal tranches within six and twelve months of the acquisition date upon non-occurence of certain future events, in each case subject to certain adjustments and conditions as provided for in the purchase agreement. The cash paid for acquisition at closing was $760.7 million, net of acquired cash. The fair value of the Contingent Acquisition Shares at closing was $107.9 million based on the Enovis share price at the close of business on January 3, 2024. The Contingent Acquisition Shares liability, recorded in Accrued liabilities, will be adjusted to fair value each reporting period with the adjustment reflected in Other income (expense), net in the Condensed Consolidated Statement of Operations.

Lima operates in the reconstructive space of patient care, providing tailored hardware and digital innovation to advance a global standard of care and positive patient outcomes. Lima has approximately 1,000 employees across more than 15 locations around the world. The acquisition extends the Company’s current footprint to emerging and growing markets, expands its product lines, and strengthens its global innovation platform. The value included as Goodwill for this acquisition is reflective of these expected benefits in conjunction with anticipated synergies as the Company uses its integration experience effectively to

ENOVIS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

drive further operating improvement, margin expansion, and long-term growth. Enovis uses its experience and EGX business management system, a comprehensive set of tools and repeatable, teachable processes, to integrate acquisitions and create superior value for its customers, shareholders and associates.

During the three months ended March 29, 2024, the Company incurred $9.7 million of advisory, legal, audit, valuation and other professional service fees in connection with the Lima Acquisition, which are included in Selling, general and administrative expense in the Condensed Consolidated Statement of Operations. As of March 29, 2024, $1.7 million related to these expenses were included in Accrued liabilities in the Condensed Consolidated Balance Sheet.

The Lima Acquisition was accounted for as a business combination using the acquisition method of accounting and accordingly, the Condensed Consolidated Financial Statements include the financial position and results of operations from the date of acquisition. The following unaudited proforma financial information presents Enovis’s consolidated financial information assuming the acquisition had taken place on January 1, 2023. These amounts are presented in accordance with GAAP, consistent with the Company’s accounting policies.


	Three Months Ended
	March 29, 2024		March 31, 2023
	(In thousands)
Net Sales	$	516,266	$	484,143


Net income (loss) from continuing operations attributable to Enovis	(42,241)		(44,980)

The following table summarizes the Company’s provisional estimate of the aggregate fair value of the assets acquired and liabilities assumed at the date of acquisition. These amounts, including inventories, deferred taxes, intangible assets, useful lives of the intangible assets, and property, plant and equipment, are determined based upon certain valuations and studies that have yet to be finalized. Accordingly, the assets acquired and liabilities assumed, as detailed below, are subject to adjustment once the detailed analyses are completed, which could be material. Substantially all of the Goodwill recognized is not expected to be deductible for income tax purposes.


	January 3, 2024
	(In thousands)
Trade receivables	$	83,778
Inventories	114,103
Property, plant and equipment	78,575
Goodwill	385,324
Intangible assets	341,000
Accounts payable	(36,697)
Accrued liabilities	(51,148)
Other assets and liabilities, net	(46,394)
Total fair value of consideration, net of acquired cash	868,541
Less: fair value of Contingent Acquisition Shares	(107,877)
Acquisition consideration paid, net of acquired cash	$	760,664

The following summarizes the preliminary values of the Intangible assets acquired, excluding Goodwill, as of March 29, 2024:


	Intangible Asset		Weighted Average Amortization Period
	(In thousands)		(Years)
Trademarks	$	182,000	20
Customer Relationships	115,000		15
Acquired technology	44,000		15
Total Intangible Assets	$	341,000

During the three months ended March 29, 2024, the Company’s Condensed Consolidated Statements of Operations included $85.8 million of net sales and $3.6 million of net income associated with the the acquired Lima legal entities.

ENOVIS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

2023 Acquisitions

On June 28, 2023, the Company completed the acquisition of Novastep SAS (“Novastep”) in its Reconstructive segment. Novastep is a leading player in Minimally Invasive Surgery (MIS) foot and ankle solutions with a best-in-class MIS bunion system serving a rapidly growing portion of the global bunion segment. The acquisition is accounted for as a business combination using the acquisition method of accounting, and accordingly, the Consolidated Financial Statements include the financial position and results of operations from the acquisition date. The Company paid $96.9 million for the acquisition, net of cash received. The Company has allocated $43.7 million to goodwill and $52.0 million to intangible assets acquired. The acquisition accounting reflects our estimates and are subject to adjustment during the measurement period. The purchase accounting is substantially complete, except for a review of contingencies. The acquired goodwill value is primarily driven by the expected synergies from cross-selling Novastep products to existing Enovis foot & ankle customers. The acquisition broadens our reconstructive product offerings for the foot and ankle market and expands our customer base in Europe.

On July 20, 2023, the Company completed an asset acquisition transaction with D.N.E., LLC (“DNE”) in its Reconstructive segment. DNE is a developer of a broad line of external fixation products, including circular frames, pin-to-bar frames, and mini-fixators for use in foot and ankle surgeries. The acquisition of these assets, primarily the developed technology will allow Enovis to expand its robust product portfolio for the Foot & Ankle business unit. The Company paid $28.2 million for the asset acquisition and assigned $25.8 million to intangible assets, $1.9 million to finished goods inventory and $0.5 million to property, plant and equipment. The acquisition is accounted for on a cost approach. The Consolidated Financial Statements include the financial position and results of operations from the acquisition date.

On October 5, 2023, the Company acquired a 100% interest in Precision AI Pty Ltd (“Precision AI”), a developer of surgical planning software. The transaction was accounted for as an asset acquisition. The acquisition complements the Company’s current product offerings in its Reconstructive segment with advanced planning software for shoulder surgery and opportunity to expand to additional anatomies. On the acquisition date, the Company paid $17.6 million, net of cash received and agreed to make contingent payments of approximately $12.0 million upon the successful completion of three milestones within one year of the acquisition date. The milestones are based on FDA approvals and user validation testing of the software.

In December 2023, the first milestone was achieved and the Company paid $4.2 million to the sellers. The remaining contingent amount is held in escrow by Enovis as restricted cash and presented in Other current assets in the Consolidated Balance Sheet. The Company has control over these funds and is required to authorize the transfer upon completion of the milestones. As the asset acquisition is accounted for under a cost approach, the potential additional contingent payments are not recorded until the milestones are achieved. The Consolidated Financial Statements include the assets acquired and results of operations from the acquisition date.

Restricted Cash

Cash and cash equivalents that are restricted as to withdrawal or use under the terms of certain contractual agreements are excluded from Cash and cash equivalents in the Condensed Consolidated Balance Sheets. Restricted cash is recorded as a component of Other current assets on the Condensed Consolidated Balance Sheets. The balance in restricted cash as of March 29, 2024 and December 31, 2023 is related to the acquisition of Precision AI which closed in the fourth quarter of 2023 and will be released to the seller within one year of the acquisition date upon completion of certain milestones.

The following table summarizes the Company’s cash, cash equivalents and restricted cash:


	March 29, 2024		December 31, 2023
	(In thousands)
Cash and cash equivalents	$	66,267	$	36,191
Restricted cash	8,279		8,641
Total cash and cash equivalents and restricted cash	$	74,546	$	44,832

ENOVIS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

Investments

As of March 29, 2024, the balance of investments held by the Company without readily determinable fair values was $20.4 million. The majority of these investments are carried at cost minus impairments, if any, plus adjustments for fair value indicators from observable price changes in orderly transactions for the identical or similar investment of the same issuer. There have been no impairments or upward adjustments in the current year or since acquisition of these investments. One investment is accounted for under the equity method of accounting and is recorded at the initial investment amount, adjusted each period for the Company’s share of the income or loss.

4. Revenue

The Company provides orthopedic solutions, including products and services spanning the full continuum of patient care, from injury prevention to rehabilitation. While the Company’s sales are primarily derived from three sales channels including dealers and distributors, insurance, and direct to consumers and hospitals, substantially all of the Company’s revenue is recognized at a point in time. The Company disaggregates its revenue into the following segments:


	Three Months Ended
	March 29, 2024		March 31, 2023
	(In thousands)
Prevention & Recovery:
U.S. Bracing & Support	$	104,574	$	104,375
U.S. Other P&R	66,350		62,347
International P&R	88,089		84,018
Total Prevention & Recovery	259,013		250,740

Reconstructive:
U.S. Reconstructive	123,735		103,492
International Reconstructive	133,518		51,919
Total Reconstructive	257,253		155,411

Total	$	516,266	$	406,151

Given the nature of its businesses, the Company does not generally have unsatisfied performance obligations with an original contract duration of greater than one year.

The nature of the Company’s contracts gives rise to certain types of variable consideration, including rebates, implicit price concessions, and other discounts. The Company includes estimated amounts of variable consideration in the transaction price to the extent that it is probable there will not be a significant reversal of revenue.

Allowance for Credit Losses

The Company’s estimate of current expected credit losses on trade receivables considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. In calculating and applying its current expected credit losses, the Company disaggregates trade receivables into business segments due to risk characteristics unique to each segment given the individual lines of business and market. The business segments are further disaggregated based on either geography or product type. The Company uses a loss rate methodology in calculating its current expected credit losses, considering historical write-offs over a defined lookback period in deriving a historical loss rate. The expected credit loss model considers current conditions and reasonable and supportable forecasts for current and projected macroeconomic factors.

ENOVIS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(Unaudited)

A summary of the activity in the Company’s allowance for credit losses included within Trade receivables in the Condensed Consolidated Balance Sheets is as follows:

Three Months Ended March 29, 2024

Balance at
Beginning
of Period

Charged to Expense, net

SEC Form 10-Q filed by Enovis Corporation