Item 7.01 Regulation FD.
Settlement Regarding Wright Medical Litigation
On June 30, 2021, Conformis, Inc. ("Conformis") reached a settlement with
Stryker Corporation ("Stryker"), Wright Medical Technology, Inc. ("Wright
Medical"), and Tornier, Inc. ("Tornier, and collectively with Stryker and Wright
Medical, the "Stryker Parties"), in connection with a lawsuit that Conformis
filed against Wright Medical and Tornier in April 2020 in which Conformis
alleged that Wright Medical and Tornier infringed certain of Conformis' patents
related to patient-specific instrument and implant systems. Wright Medical and
Tornier were acquired by Stryker in November 2020, subsequent to Conformis'
commencement of the lawsuit. Under the terms of the settlement, the Stryker
Parties will make a one-time payment of $15 million to Conformis no later than
October 15, 2021 and be granted a non-exclusive license with respect to certain
Conformis patents.
Forgiveness of Paycheck Protection Program Loan
In April 2020, Conformis received a $4.7 million loan through East West Bank
N.A., the Company's existing lender, pursuant to the Paycheck Protection Program
("PPP"). In February 2021, Conformis submitted a loan forgiveness application
and loan necessity questionnaire to the Small Business Administration ("SBA")
through East West Bank N.A.
On June 30, 2021, Conformis received notification through East West Bank N.A.
that the SBA has rendered a final decision regarding its review of the PPP loan
forgiveness application, and that the SBA has fully approved the loan
forgiveness application as of June 28, 2021. The forgiveness of the $4.7 million
principal loan amount, plus accrued interest, will be recognized during the
second quarter of the fiscal year ending December 31, 2021.
The information in this Item 7.01 of this Form 8-K is being furnished and shall
not be deemed "filed" for the purposes of Section 18 of the Securities Exchange
Act of 1934, or otherwise subject to the liabilities of that section. The
information in this Item 7.01 of this Form 8-K also shall not be deemed to be
incorporated by reference into any filing under the Securities Act of 1933, as
amended, or the Securities Exchange Act of 1934, except to the extent that the
Company specifically incorporates it by reference.
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